Company Announcements

TCS Group Holding PLC reports robust net income growth for 2Q and 1H'19

Source: EQS
<html xmlns="http://www.w3.org/1999/xhtml"><body><table border="0" cellpadding="0" cellspacing="0"><tr><td> <p><org>TCS Group Holding PLC</org> (TCS)<br/> <org>TCS Group Holding PLC</org> reports robust net income growth for 2Q and 1H&apos;19 <br/><br/><span><chron>20-Aug-2019</chron> / <chron>10:00 MSK</chron></span><br/> Dissemination of a Regulatory Announcement, transmitted by EQS Group.<br/> The issuer is solely responsible for the content of this announcement.<br/><br/></p> <hr/><div><div> <p style="margin-top:0pt; margin-bottom:0pt; line-height:22pt"><span style="font-family:Arial; font-size:22pt; font-weight:bold"><org>TCS Group Holding PLC</org> reports </span><span style="font-family:Arial; font-size:22pt; font-weight:bold">robust</span><span style="font-family:Arial; font-size:22pt; font-weight:bold"> net income</span><span style="font-family:Arial; font-size:22pt; font-weight:bold"> growth</span><span style="font-family:Arial; font-size:22pt; font-weight:bold"> for </span><span style="font-family:Arial; font-size:22pt; font-weight:bold">2Q and 1H&apos;19</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <ul style="margin:0pt; padding-left:0pt" type="disc"><li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; font-weight:bold; color:#000000">Net margin </span><span style="font-family:Arial; font-weight:bold; color:#000000">up</span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">4</span><span style="font-family:Arial; font-weight:bold; color:#000000">1</span><span style="font-family:Arial; font-weight:bold; color:#000000">% y</span><span style="font-family:Arial; font-weight:bold; color:#000000">ear</span><span style="font-family:Arial; font-weight:bold; color:#000000">-o</span><span style="font-family:Arial; font-weight:bold; color:#000000">n</span><span style="font-family:Arial; font-weight:bold; color:#000000">-y</span><span style="font-family:Arial; font-weight:bold; color:#000000">ear</span><span style="font-family:Arial; font-weight:bold; color:#000000"> to RUB </span><span style="font-family:Arial; font-weight:bold; color:#000000">39</span><span style="font-family:Arial; font-weight:bold; color:#000000">.</span><span style="font-family:Arial; font-weight:bold; color:#000000">7 </span><span style="font-family:Arial; font-weight:bold; color:#000000">bn</span><span style="font-family:Arial; font-weight:bold; color:#000000"> in </span><span style="font-family:Arial; font-weight:bold; color:#000000">1H</span><span style="font-family:Arial; font-weight:bold; color:#000000">&apos;</span><span style="font-family:Arial; font-weight:bold; color:#000000">19</span><span style="font-family:Arial; font-weight:bold; color:#000000"> (1H&apos;18: RUB </span><span style="font-family:Arial; font-weight:bold; color:#000000">28</span><span style="font-family:Arial; font-weight:bold; color:#000000">.</span><span style="font-family:Arial; font-weight:bold; color:#000000">2</span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">bn</span><span style="font-family:Arial; font-weight:bold; color:#000000">)</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; font-weight:bold; color:#000000">Net income</span><span style="font-family:Arial; font-weight:bold; color:#000000"> of RUB </span><span style="font-family:Arial; font-weight:bold; color:#000000">15.4</span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">bn</span><span style="font-family:Arial; font-weight:bold; color:#000000"> in </span><span style="font-family:Arial; font-weight:bold; color:#000000">1H</span><span style="font-family:Arial; font-weight:bold; color:#000000">&apos;</span><span style="font-family:Arial; font-weight:bold; color:#000000">19</span><span style="font-family:Arial; font-weight:bold; color:#000000">&#160;(1H&apos;18: <money>RUB 11.7</money></span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">bn</span><span style="font-family:Arial; font-weight:bold; color:#000000">)</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; font-weight:bold; color:#000000">Over </span><span style="font-family:Arial; font-weight:bold; color:#000000">2.2</span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">mn</span><span style="font-family:Arial; font-weight:bold; color:#000000"> new credit accounts added in </span><span style="font-family:Arial; font-weight:bold; color:#000000">1H</span><span style="font-family:Arial; font-weight:bold; color:#000000">&apos;</span><span style="font-family:Arial; font-weight:bold; color:#000000">19</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; font-weight:bold; color:#000000">Net loan </span><span style="font-family:Arial; font-weight:bold; color:#000000">portfolio </span><span style="font-family:Arial; font-weight:bold; color:#000000">growth of</span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">46.3</span><span style="font-family:Arial; font-weight:bold; color:#000000">%</span><span style="font-family:Arial; font-weight:bold; color:#000000"> </span><span style="font-family:Arial; font-weight:bold; color:#000000">YTD in 1H&apos;19</span></li> </ul><p style="margin-top:0pt; margin-left:27pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Calibri">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">LIMASSOL, <location value="LC/cy" idsrc="xmltag.org" >CYPRUS</location> </span><span style="font-family:Arial; font-weight:bold">- </span><span style="font-family:Arial; font-weight:bold">20 August </span><span style="font-family:Arial; font-weight:bold">2019.</span><span style="font-family:Arial"> <org>TCS Group Holding PLC</org> (TCS LI) (</span><span style="font-family:Arial">&quot;Ti</span><span style="font-family:Arial">nkoff&quot;, </span><span style="font-family:Arial">&quot;We&quot;, </span><span style="font-family:Arial">the &quot;Group&quot;</span><span style="font-family:Arial">, the &quot;Company&quot;</span><span style="font-family:Arial">), <location value="LC/ru" idsrc="xmltag.org" >Russia&apos;s</location> leading provider of online financial and lifestyle services via its Tinkoff ecosystem, today announces its interim condensed consolidated IFRS results for the </span><span style="font-family:Arial">six</span><span style="font-family:Arial"> months ended 3</span><span style="font-family:Arial">0</span><span style="font-family:Arial"> </span><span style="font-family:Arial">June </span><span style="font-family:Arial">2019.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold"><person>Oliver Hughes</person>, CEO of Tinkoff, commented:</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&quot;</span><span style="font-family:Arial">We&apos;ve continued to deliver </span><span style="font-family:Arial">robust</span><span style="font-family:Arial"> growth in the second quarter and first half of 2019 thanks to the momentum of our core credit business and ever-increasing revenue contributions from non-credit business lines, as well as significant development efforts across the entire Tinkoff ecosystem.</span><span style="font-family:Arial"> In particular, for the </span><span style="font-family:Arial">first half</span><span style="font-family:Arial"> of 2019, our net loan portfolio has demonstrated growth of </span><span style="font-family:Arial">46.3</span><span style="font-family:Arial">%</span><span style="font-family:Arial"> </span><span style="font-family:Arial">YTD</span><span style="font-family:Arial">, driven by new credit business lines, such as personal loans, POS loans, car loans and home equity loans. This translated into </span><span style="font-family:Arial">a </span><span style="font-family:Arial">3</span><span style="font-family:Arial">1</span><span style="font-family:Arial">% year-on-year</span><span style="font-family:Arial"> increase in net income</span><span style="font-family:Arial"> to RUB </span><span style="font-family:Arial">15.4</span><span style="font-family:Arial"> </span><span style="font-family:Arial">b</span><span style="font-family:Arial">n</span><span style="font-family:Arial"> in </span><span style="font-family:Arial">1H&apos;19</span><span style="font-family:Arial">.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">To seize the current profitable growth opportunity</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">and to maintain</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">ample</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">capital buffers in the future, w</span><span style="font-family:Arial">e successfully</span><span style="font-family:Arial"> raised <money>$300</money> </span><span style="font-family:Arial">mn</span><span style="font-family:Arial"> </span><span style="font-family:Arial">gross </span><span style="font-family:Arial">in capital in Ju</span><span style="font-family:Arial">ly</span><span style="font-family:Arial"> through a</span><span style="font-family:Arial">n</span><span style="font-family:Arial"> SPO that was highly oversubscribed and saw significant interest from investors </span><span style="font-family:Arial">across</span><span style="font-family:Arial"> a variety of regions</span><span style="font-family:Arial">. These funds will enable us to continue to deliver the growth that the investment community has come to expect from <org>Tinkoff Group</org>.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">Our revenue continues to become more balanced between credit and fees and commissions income, with our transactional </span><span style="font-family:Arial">and servicing </span><span style="font-family:Arial">business</span><span style="font-family:Arial"> lines generating more than 30% of revenue despite rapid growth of the credit business for the past two quarters.</span><span style="font-family:Arial"> We remain relentlessly focused on customer growth, and we have already begun to reap the rewards as we reached nearly 6 million current accounts customers in the second quarter and saw excellent results across our SME, <org>Tinkoff Insurance</org> and brokerage businesses.&quot;</span><span style="font-family:Arial"> </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">FINANCIAL AND OPERATING </span><span style="font-family:Arial; font-weight:bold">REVIEW</span></p> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse"><tbody><tr style="height:15.15pt"><td style="border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.48pt 1.02pt 2.85pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">RUB </span><span style="font-family:Arial; font-weight:bold">bn</span></p> </td> <td style="border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.48pt 1.02pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">2Q</span><span style="font-family:Arial; font-weight:bold">&apos;</span><span style="font-family:Arial; font-weight:bold">1</span><span style="font-family:Arial; font-weight:bold">9</span></p> </td> <td style="border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.48pt 1.02pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">2Q</span><span style="font-family:Arial; font-weight:bold">&apos;</span><span style="font-family:Arial; font-weight:bold">1</span><span style="font-family:Arial; font-weight:bold">8</span></p> </td> <td style="border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.48pt 1.02pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Change</span></p> </td> <td style="border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.48pt 1.02pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">1H</span><span style="font-family:Arial; font-weight:bold">&apos;</span><span style="font-family:Arial; font-weight:bold">1</span><span style="font-family:Arial; font-weight:bold">9</span></p> </td> <td style="border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.48pt 1.02pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">1H</span><span style="font-family:Arial; font-weight:bold">&apos;</span><span style="font-family:Arial; font-weight:bold">1</span><span style="font-family:Arial; font-weight:bold">8</span></p> </td> <td style="border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.4pt 2.85pt 1.02pt 2.48pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Change</span></p> </td> </tr><tr style="height:30.9pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Credit </span><span style="font-family:Arial; font-weight:bold">accounts acquired</span><span style="font-family:Arial; font-weight:bold"> (</span><span style="font-family:Arial; font-weight:bold">mn</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">pcs)</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">1.1</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">0.5</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">96</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">2.2</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">1.0</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">108</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:16pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Net</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">margin</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">21.6</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">14.2</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">5</span><span style="font-family:Arial">2</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">39.7</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">28.2</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">41</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:30.9pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Net margin after credit loss allowance</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">14.9</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:14pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">11.1</span></p> <p style="margin-top:14pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">35</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">28.2</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">21.9</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">29</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:16pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Profit</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">before</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">tax</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">10.4</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">7.8</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">34</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">19.7</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">15.2</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">30</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:16pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Net</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">income</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">8.2</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">6.0</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">36</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">15.4</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">11.7</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">31</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:16pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Return on equity</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">64.7%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">69.3%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">-4.</span><span style="font-family:Arial">6</span><span style="font-family:Arial"> </span><span style="font-family:Arial">p.p</span><span style="font-family:Arial">.</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">64.</span><span style="font-family:Arial">3</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">69.3%</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">-5.</span><span style="font-family:Arial">0</span><span style="font-family:Arial"> </span><span style="font-family:Arial">p.p</span><span style="font-family:Arial">.</span></p> </td> </tr><tr style="height:16pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.48pt 1.02pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Net interest margin</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">23.1%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">24.0%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">-0.9 </span><span style="font-family:Arial">p.p</span><span style="font-family:Arial">.</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">22.4%</span></p> </td> <td style="border-style:solid; border-width:0.75pt; padding:1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">24.7%</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; border-bottom-style:solid; border-bottom-width:0.75pt; padding:1.02pt 2.85pt 1.02pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">-2.</span><span style="font-family:Arial">3</span><span style="font-family:Arial"> </span><span style="font-family:Arial">p.p</span><span style="font-family:Arial">.</span></p> </td> </tr><tr style="height:16pt"><td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; padding:1.02pt 2.48pt 1.4pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Cost of risk</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; padding:1.02pt 2.48pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">8.9%</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; padding:1.02pt 2.48pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">6.6%</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; padding:1.02pt 2.48pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">+2.3 </span><span style="font-family:Arial">p.p</span><span style="font-family:Arial">.</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; padding:1.02pt 2.48pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">8.2%</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-right-style:solid; border-right-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; padding:1.02pt 2.48pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; line-height:120%; font-size:11pt"><span style="font-family:Arial">7.0%</span></p> </td> <td style="border-top-style:solid; border-top-width:0.75pt; border-left-style:solid; border-left-width:0.75pt; padding:1.02pt 2.85pt 1.4pt 2.48pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; line-height:120%; font-size:11pt"><span style="font-family:Arial">&#160; </span><span style="font-family:Arial">+1.2</span><span style="font-family:Arial"> </span><span style="font-family:Arial">p.p</span><span style="font-family:Arial">.</span></p> </td> </tr></tbody></table><p style="margin-top:0pt; margin-bottom:6pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">&#160;</span></p> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse"><tbody><tr style="height:7.05pt"><td style="border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:1.4pt 2.35pt 0.9pt 2.85pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">RUB </span><span style="font-family:Arial; font-weight:bold">bn</span></p> </td> <td style="border-right-style:solid; border-right-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:1.4pt 2.35pt 0.9pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial; font-weight:bold">30 June </span><span style="font-family:Arial; font-weight:bold">2019</span></p> </td> <td style="border-right-style:solid; border-right-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:1.4pt 2.35pt 0.9pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial; font-weight:bold">31</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">Dec</span><span style="font-family:Arial; font-weight:bold"> 201</span><span style="font-family:Arial; font-weight:bold">8</span></p> </td> <td style="border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:1.4pt 2.85pt 0.9pt 2.35pt; vertical-align:top; background-color:#ffff00"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Change</span></p> </td> </tr><tr style="height:10.3pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Total Assets</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">452.1</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">375.5</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">20</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:13.8pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Net loans and advances to customers</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">290.3</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">198.5</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">46</span><span style="font-family:Arial">.3</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:13.8pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Share of NPLs</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">7.4</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">9.4%</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">-</span><span style="font-family:Arial">2</span><span style="font-family:Arial"> p.p.</span></p> </td> </tr><tr style="height:13.8pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Cash and treasury portfolio</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">117.9</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">135.1</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">-</span><span style="font-family:Arial">1</span><span style="font-family:Arial">2</span><span style="font-family:Arial">.</span><span style="font-family:Arial">7</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:10.3pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Total Liabilities</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">397.6</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">333.2</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">19</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:13.8pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Customer accounts </span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">315.0</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">280.9</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">12</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:10.3pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Total Equity</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">54.5</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">42.3</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">+</span><span style="font-family:Arial">29</span><span style="font-family:Arial">%</span></p> </td> </tr><tr style="height:10.3pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Tier 1 capital ratio</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">14.</span><span style="font-family:Arial">2</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">14.9%</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">-0.</span><span style="font-family:Arial">7 </span><span style="font-family:Arial">p.p.</span></p> </td> </tr><tr style="height:10.3pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.35pt 0.9pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Total capital ratio</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">14.</span><span style="font-family:Arial">2</span><span style="font-family:Arial">%</span></p> </td> <td style="border-style:solid; border-width:1pt; padding:0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">14.9%</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; border-bottom-style:solid; border-bottom-width:1pt; padding:0.9pt 2.85pt 0.9pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">-0.</span><span style="font-family:Arial">7 </span><span style="font-family:Arial">p.p.</span></p> </td> </tr><tr style="height:13.8pt"><td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; padding:0.9pt 2.35pt 1.4pt 2.85pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">CBR N1.0 (capital adequacy ratio)</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-left-style:solid; border-left-width:1pt; padding:0.9pt 2.35pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">11.1</span><span style="font-family:Arial">%</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-right-style:solid; border-right-width:1pt; border-left-style:solid; border-left-width:1pt; padding:0.9pt 2.35pt 1.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">13.9%</span></p> </td> <td style="border-top-style:solid; border-top-width:1pt; border-left-style:solid; border-left-width:1pt; padding:0.9pt 2.85pt 1.4pt 2.35pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; text-align:right; font-size:11pt"><span style="font-family:Arial">-</span><span style="font-family:Arial">2.8</span><span style="font-family:Arial"> p.p.</span></p> </td> </tr></tbody></table><p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">In 2Q19, g</span><span style="font-family:Arial">ross interest income grew by </span><span style="font-family:Arial">52</span><span style="font-family:Arial">% y-o-y to RUB </span><span style="font-family:Arial">27.4</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">2Q&apos;18</span><span style="font-family:Arial">: RUB </span><span style="font-family:Arial">18.0</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">). This strong trend was underpinned by the growth of our customer base and the expansion of our product range, and despite a gradual decline in the loan book&apos;s gross interest yield, which </span><span style="font-family:Arial">amounted </span><span style="font-family:Arial">to </span><span style="font-family:Arial">33.5</span><span style="font-family:Arial">% in </span><span style="font-family:Arial">2Q&apos;19 </span><span style="font-family:Arial">due to increase of the non-credit card share of </span><span style="font-family:Arial">our </span><span style="font-family:Arial">portfolio. Meanwhile, the interest yield on the Group&apos;s securities portfolio rose to </span><span style="font-family:Arial">6.9</span><span style="font-family:Arial">% (</span><span style="font-family:Arial">2Q&apos;18</span><span style="font-family:Arial">: 6.8%). </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">In </span><span style="font-family:Arial">2Q&apos;19</span><span style="font-family:Arial">, interest expense grew by </span><span style="font-family:Arial">50</span><span style="font-family:Arial">% y-o-y to RUB </span><span style="font-family:Arial">5.4</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">2Q&apos;18</span><span style="font-family:Arial">: <money>RUB 3</money>.</span><span style="font-family:Arial">6 </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">)</span><span style="font-family:Arial">, </span><span style="font-family:Arial">driven by</span><span style="font-family:Arial"> </span><span style="font-family:Arial">both significant growth of customer base and review of salary costs so that they can be included in the effective interest rate rather than acquisition cost. </span><span style="font-family:Arial">At the same time, our</span><span style="font-family:Arial"> cost of borrowing </span><span style="font-family:Arial">remained at a comfortable level of</span><span style="font-family:Arial"> </span><span style="font-family:Arial">6.1</span><span style="font-family:Arial">% in </span><span style="font-family:Arial">2Q&apos;19 </span><span style="font-family:Arial">thanks to</span><span style="font-family:Arial"> strong inflows of customer accounts.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">In </span><span style="font-family:Arial">1H&apos;19</span><span style="font-family:Arial">, net margin grew by </span><span style="font-family:Arial">a remarkable </span><span style="font-family:Arial">41</span><span style="font-family:Arial">% </span><span style="font-family:Arial">y-o-y</span><span style="font-family:Arial"> to RUB </span><span style="font-family:Arial">39.7</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;18</span><span style="font-family:Arial">: RUB </span><span style="font-family:Arial">28</span><span style="font-family:Arial">.</span><span style="font-family:Arial">2 </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">)</span><span style="font-family:Arial">, </span><span style="font-family:Arial">primarily as a result of</span><span style="font-family:Arial"> solid net loan growth.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">We</span><span style="font-family:Arial"> continue to focus on controlling </span><span style="font-family:Arial">the Group&apos;s</span><span style="font-family:Arial"> cost of risk and efficiently managing the quality of </span><span style="font-family:Arial">our</span><span style="font-family:Arial"> portfolio. Cost of risk </span><span style="font-family:Arial">rose to</span><span style="font-family:Arial"> </span><span style="font-family:Arial">8.</span><span style="font-family:Arial">2</span><span style="font-family:Arial">%</span><span style="font-family:Arial"> in 1H&apos;19</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;18</span><span style="font-family:Arial">: </span><span style="font-family:Arial">7.0</span><span style="font-family:Arial">%)</span><span style="font-family:Arial"> due to</span><span style="font-family:Arial"> the significant increase in the loan portfolio in 1H</span><span style="font-family:Arial">&apos;19</span><span style="font-family:Arial"> com</span><span style="font-family:Arial">bined with IFRS 9 requirement to recognize provisions earlier</span><span style="font-family:Arial">.</span><span style="font-family:Arial"> </span><span style="font-family:Arial">Mean</span><span style="font-family:Arial">while</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">our </span><span style="font-family:Arial">risk-adjusted net interest margin decreased to </span><span style="font-family:Arial">15.9</span><span style="font-family:Arial">% in </span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;19 </span><span style="font-family:Arial">(</span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;18</span><span style="font-family:Arial">: </span><span style="font-family:Arial">19.2</span><span style="font-family:Arial">%)</span><span style="font-family:Arial"> due to the continued product diversification of our loan</span><span style="font-family:Arial"> </span><span style="font-family:Arial">portfolio.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">We have further </span><span style="font-family:Arial">develop</span><span style="font-family:Arial">ed</span><span style="font-family:Arial"> and expand</span><span style="font-family:Arial">ed</span><span style="font-family:Arial"> </span><span style="font-family:Arial">our </span><span style="font-family:Arial">new non-credit business lines, all of which are delivering exceptional performance</span><span style="font-family:Arial"> thanks to customer base growth</span><span style="font-family:Arial">, and now represent over </span><span style="font-family:Arial">30%</span><span style="font-family:Arial"> of </span><span style="font-family:Arial">the Group</span><span style="font-family:Arial">&apos;s revenue</span><span style="font-family:Arial">. In </span><span style="font-family:Arial">2Q&apos;19</span><span style="font-family:Arial">, the Group&apos;s fee and commission income increased by </span><span style="font-family:Arial">36</span><span style="font-family:Arial">% y-o-y to RUB </span><span style="font-family:Arial">8.6</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">2Q&apos;18</span><span style="font-family:Arial">: RUB </span><span style="font-family:Arial">6.3</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">). </span><span style="font-family:Arial">In </span><span style="font-family:Arial">2Q&apos;19</span><span style="font-family:Arial">, <org>Tinkoff Insurance</org> doubled its income to <money>RUB 2.9</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (2Q&apos;18: <money>RUB 1.4</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">).</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">As at</span><span style="font-family:Arial"> the end of </span><span style="font-family:Arial">1H&apos;19</span><span style="font-family:Arial">, the Group had </span></p> <ul style="margin:0pt; padding-left:0pt" type="disc"><li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">over 5.7</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">mn</span><span style="font-family:Arial; color:#000000"> current account customers with a total balance of RUB </span><span style="font-family:Arial; color:#000000">154</span><span style="font-family:Arial; color:#000000">.8</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">bn</span><span style="font-family:Arial; color:#000000"> across all their accounts</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">over </span><span style="font-family:Arial; color:#000000">484k </span><span style="font-family:Arial; color:#000000">SME customers, with RUB </span><span style="font-family:Arial; color:#000000">39.7</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">bn</span><span style="font-family:Arial; color:#000000"> in total on their current accounts</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">593</span><span style="font-family:Arial; color:#000000">k brokerage accounts</span><span style="font-family:Arial; color:#000000">, with nearly half of all retail accounts opened at MOEX in the second quarter coming through Tinkoff Investments</span><span style="font-family:Arial; color:#000000">. In July, Tinkoff investments broke even ahead of plan and despite</span><span style="font-family:Arial; color:#000000"> the heavy investment in growth of the customer base. </span></li> </ul><p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">In </span><span style="font-family:Arial">2Q&apos;19 </span><span style="font-family:Arial">operating expenses increased by </span><span style="font-family:Arial">39</span><span style="font-family:Arial">% year-on-year to RUB </span><span style="font-family:Arial">12.0 </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">2Q&apos;18</span><span style="font-family:Arial">: <money>RUB 8</money>.</span><span style="font-family:Arial">6 </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">)</span><span style="font-family:Arial"> mainly</span><span style="font-family:Arial"> due to </span><span style="font-family:Arial">rise in customer acquisition cost</span><span style="font-family:Arial">. The cost-to-income ratio </span><span style="font-family:Arial">decreased to</span><span style="font-family:Arial"> </span><span style="font-family:Arial">39.7</span><span style="font-family:Arial">% in </span><span style="font-family:Arial">2Q&apos;19 </span><span style="font-family:Arial">(</span><span style="font-family:Arial">2Q&apos;18</span><span style="font-family:Arial">: 42.</span><span style="font-family:Arial">8</span><span style="font-family:Arial">%).</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">The Group reported net income of RUB </span><span style="font-family:Arial">15.4</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> in </span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;19</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;18</span><span style="font-family:Arial">: RUB </span><span style="font-family:Arial">11.7</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">). As a result, ROE for the reporting period reached 64.</span><span style="font-family:Arial">3</span><span style="font-family:Arial">% (</span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;18</span><span style="font-family:Arial">: </span><span style="font-family:Arial">69.3</span><span style="font-family:Arial">%).</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">In </span><span style="font-family:Arial">1H</span><span style="font-family:Arial">&apos;19</span><span style="font-family:Arial">, the Group continued to maintain a healthy balance sheet with total assets </span><span style="font-family:Arial">growing by 20% </span><span style="font-family:Arial">since the start of 2019 </span><span style="font-family:Arial">to</span><span style="font-family:Arial"> RUB </span><span style="font-family:Arial">452.1</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">31 Dec&apos;18</span><span style="font-family:Arial">: <money>RUB 375.5</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">).</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">T</span><span style="font-family:Arial">he Group&apos;s gross loan book gre</span><span style="font-family:Arial">w by 42% YTD</span><span style="font-family:Arial"> to RUB </span><span style="font-family:Arial">333.0</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">31 Dec&apos;18</span><span style="font-family:Arial">: <money>RUB 234.7</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">), while the net loan book grew by </span><span style="font-family:Arial">46.3</span><span style="font-family:Arial">%</span><span style="font-family:Arial"> YTD</span><span style="font-family:Arial"> to RUB </span><span style="font-family:Arial">290.3</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">31 Dec&apos;18</span><span style="font-family:Arial">: <money>RUB 198.5</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">). </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">The</span><span style="font-family:Arial"> Group&apos;s NPL ratio </span><span style="font-family:Arial">fell </span><span style="font-family:Arial">to </span><span style="font-family:Arial">7.4</span><span style="font-family:Arial">%. The Group&apos;s loan loss provision coverage stood at 1.7x non-performing loans.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">The Group&apos;s customer accounts increased by </span><span style="font-family:Arial">12</span><span style="font-family:Arial">% YTD to RUB </span><span style="font-family:Arial">315.0</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">3</span><span style="font-family:Arial">1 </span><span style="font-family:Arial">Dec</span><span style="font-family:Arial">&apos;1</span><span style="font-family:Arial">8</span><span style="font-family:Arial">: <money>RUB 280.9</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">). </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">Tinkoff&apos;s</span><span style="font-family:Arial"> total equity increased by </span><span style="font-family:Arial">29</span><span style="font-family:Arial">% </span><span style="font-family:Arial">YTD </span><span style="font-family:Arial">to RUB </span><span style="font-family:Arial">54.5</span><span style="font-family:Arial"> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial"> (</span><span style="font-family:Arial">31 Dec&apos;18</span><span style="font-family:Arial">: <money>RUB 42.3</money> </span><span style="font-family:Arial">bn</span><span style="font-family:Arial">). As of 1 </span><span style="font-family:Arial">July </span><span style="font-family:Arial">2019, the Group&apos;s statutory N1.0 ratio </span><span style="font-family:Arial">had decreased to</span><span style="font-family:Arial"> </span><span style="font-family:Arial">11.1</span><span style="font-family:Arial">%</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> and its N1.2 ratio had </span><span style="font-family:Arial">decreased </span><span style="font-family:Arial">to </span><span style="font-family:Arial">10.4</span><span style="font-family:Arial">%. N1.1 stood at a </span><span style="font-family:Arial">sufficient </span><span style="font-family:Arial">7.7</span><span style="font-family:Arial">%. </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">As announced on <chron>11 June 2019</chron>, the Group will pay no dividend for the remainder of 2019.</span><br/><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">UPDATED </span><span style="font-family:Arial; font-weight:bold">FINANCIAL GUIDANCE FOR </span><span style="font-family:Arial; font-weight:bold">FY</span><span style="font-family:Arial; font-weight:bold">2019 </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <ul style="margin:0pt; padding-left:0pt" type="disc"><li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">We</span><span style="font-family:Arial; color:#000000"> expect net loan growth to be </span><span style="font-family:Arial; color:#000000">substantially higher than</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">60</span><span style="font-family:Arial; color:#000000">%</span><span style="font-family:Arial; color:#000000"> (previously at least 60%)</span><span style="font-family:Arial; color:#000000"> </span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">Given that the loan growth will be substantially higher than 60%, we therefore adjust the guidance for </span><span style="font-family:Arial; color:#000000">cost of risk to </span><span style="font-family:Arial; color:#000000">7</span><span style="font-family:Arial; color:#000000">-</span><span style="font-family:Arial; color:#000000">8</span><span style="font-family:Arial; color:#000000">%</span><span style="font-family:Arial; color:#000000"> (previously 6-7%)</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">We expect net income of at least <money>RUB 35</money> </span><span style="font-family:Arial; color:#000000">bn</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">We</span><span style="font-family:Arial; color:#000000"> expect cost of borrowing to be within 6-7% </span></li> </ul><p style="margin-top:0pt; margin-left:27pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">1H&apos;2019 </span><span style="font-family:Arial; font-weight:bold">AND </span><span style="font-family:Arial; 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color:#bfbfbf"><span style="font-family:Arial; color:#000000">T</span><span style="font-family:Arial; color:#000000">he Group ha</span><span style="font-family:Arial; color:#000000">d</span><span style="font-family:Arial; color:#000000"> over </span><span style="font-family:Arial; color:#000000">5</span><span style="font-family:Arial; color:#000000">.</span><span style="font-family:Arial; color:#000000">7</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">mn</span><span style="font-family:Arial; color:#000000"> current accounts customers</span><span style="font-family:Arial; color:#000000"> as at the end of </span><span style="font-family:Arial; color:#000000">1H&apos;19</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">As of 1 August</span><span style="font-family:Arial; color:#000000"> 2019</span><span style="font-family:Arial; color:#000000">, Tinkoff mobile banking app ha</span><span style="font-family:Arial; color:#000000">d</span><span style="font-family:Arial; color:#000000"> over </span><span style="font-family:Arial; color:#000000">15.3</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">mn</span><span style="font-family:Arial; color:#000000"> installs, MAU st</span><span style="font-family:Arial; color:#000000">ood</span><span style="font-family:Arial; color:#000000"> at </span><span style="font-family:Arial; color:#000000">4.2</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">mn</span><span style="font-family:Arial; color:#000000">, DAU st</span><span style="font-family:Arial; color:#000000">ood</span><span style="font-family:Arial; color:#000000"> at </span><span style="font-family:Arial; color:#000000">1.3</span><span style="font-family:Arial; color:#000000"> </span><span style="font-family:Arial; color:#000000">mn</span></li> <li style="margin-left:27pt; font-family:serif; 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font-family:serif; font-size:12pt; color:#bfbfbf"><span style="font-family:Arial; font-size:11pt; color:#000000">In June, Tinkoff launched </span><span style="font-family:Arial; font-size:11pt; color:#000000">&apos;</span><span style="font-family:Arial; font-size:11pt; color:#000000">Oleg</span><span style="font-family:Arial; font-size:11pt; color:#000000">&apos;</span><span style="font-family:Arial; font-size:11pt; color:#000000">, the world&apos;s first proprietary voice assistant for financial and lifestyle tasks</span><span style="font-family:Arial; font-size:11pt; color:#000000"> developed by a financial organization</span><span style="font-family:Arial; font-size:11pt; color:#000000">. </span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">In April, <org>Tinkoff Group</org> announced it had built the most powerful supercomputer, the Kolmogorov cluster, among financial institutions</span><span style="font-family:Arial; 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In May, Tinkoff Investments offered its customers an opportunity to invest in IPOs</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">In June, Tinkoff announced the launch of its own management company <org>Tinkoff Capital</org> which at the initial stage will offer customers Tinkoff&apos;s own ETFs</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">In May, Tinkoff launched its own online travel agency</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">In May, Tinkoff increased its stake in </span><span style="font-family:Arial; color:#000000">CloudPayments</span><span style="font-family:Arial; color:#000000"> to 90%</span></li> </ul><p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold; font-style:italic">The investment community and industry associations recognize Tinkoff&apos;s strong performance</span></p> <ul style="margin:0pt; padding-left:0pt" type="disc"><li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000"><org>Tinkoff Group</org> raised <money>$300</money> </span><span style="font-family:Arial; color:#000000">mn</span><span style="font-family:Arial; color:#000000"> gross</span><span style="font-family:Arial; color:#000000"> in additional capital in Ju</span><span style="font-family:Arial; color:#000000">ly</span><span style="font-family:Arial; color:#000000"> through a successful SPO that was highly oversubscribed and saw significant interest from investors </span><span style="font-family:Arial; color:#000000">across</span><span style="font-family:Arial; color:#000000"> a variety of regions, including strong demand from the US</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">In April, we placed a 3</span><span style="font-family:Arial; color:#000000">-</span><span style="font-family:Arial; color:#000000">year <money>RUB 10</money> </span><span style="font-family:Arial; color:#000000">bn</span><span style="font-family:Arial; color:#000000"> local bond with a 9.25% coupon</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">Moody&apos;s upgraded </span><span style="font-family:Arial; color:#000000">our</span><span style="font-family:Arial; color:#000000"> rating to Ba3 with a stable outlook from B1</span><span style="font-family:Arial; color:#000000"> in February</span><span style="font-family:Arial; color:#000000">. And in April, the <org>Russian National Analytical Credit Rating Agency</org> - ACRA - reaffirmed <org>Tinkoff Bank&apos;s</org> rating at A(RU) with a stable outlook</span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000">In August, Tinkoff was named Best Russian Consumer and Corporate Digital Bank in <org>Global Finance magazine&apos;s</org> 2019 World&apos;s Best Digital Banks in Central &amp; <location value="LB/eeur" idsrc="xmltag.org" >Eastern Europe</location> awards. </span></li> <li style="margin-left:27pt; font-family:serif; font-size:11pt; color:#bfbfbf"><span style="font-family:Arial; color:#000000"><org>Tinkoff Bank</org> won four accolades </span><span style="font-family:Arial; color:#000000">in February </span><span style="font-family:Arial; color:#000000">at the Bank of the Year</span></li> </ul><p style="margin-top:0pt; margin-left:27pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">awards by Banki.ru, <location value="LC/ru" idsrc="xmltag.org" >Russia&apos;s</location> leading banking news portal. 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Instead, Tinkoff is </span><span style="font-family:Arial; color:#000000">exploring</span><span style="font-family:Arial; color:#000000"> other more attractive options for the Group headquarters</span></li> </ul><p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">CONFERENCE CALL INFORMATION</span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial">The Tinkoff management team will host an investor and analyst conference call at </span><span style="font-family:Arial">15</span><span style="font-family:Arial">:00 <location value="LC/gb" idsrc="xmltag.org" >UK</location> time (</span><span style="font-family:Arial">17</span><span style="font-family:Arial">:00 <location value="LU/ru..moscow" idsrc="xmltag.org" >Moscow</location> time, </span><span style="font-family:Arial">10</span><span style="font-family:Arial">:00</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial"><location value="LC/us" idsrc="xmltag.org" >U.S.</location> Eastern Standard Time), on Tuesday, </span><span style="font-family:Arial">20</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">August </span><span style="font-family:Arial">2019.</span></p> <p style="margin-top:0pt; 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font-size:11pt"><span style="font-family:Arial">+1 (929) 477-0402</span></p> </td> </tr></tbody></table><p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">A live webcast of the presentation will be available at: </span><span style="font-family:Arial"><a href="https://webcasts.eqs.com/tcsgroup20190820">https://webcasts.eqs.com/tcsgroup20190820</a></span><span style="font-family:Arial">&#160; </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">Please register approximately 10 minutes prior to the start of the call.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> <table cellpadding="0" cellspacing="0" style="border-collapse:collapse"><tbody><tr><td colspan="2" style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"> <p style="margin-top:6pt; margin-bottom:12pt; text-align:justify; font-size:11pt"><span style="font-family:Arial; font-weight:bold">For</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">enquiries</span><span style="font-family:Arial; font-weight:bold">:</span></p> </td> </tr><tr><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">Tinkoff </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Darya </span><span style="font-family:Arial; font-weight:bold">Ermolina</span><br/><span style="font-family:Arial">Head of PR </span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:11pt"><span style="font-family:Arial">+ 7 495 648-10-00 (ext. 2009)</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><a href="mailto:d.ermolina@tinkoff.ru" style="text-decoration:none"><span style="font-family:Arial; font-size:11pt; text-decoration:underline; color:#000000">d.ermolina@tinkoff.ru</span></a><span style="font-family:Arial; font-size:11pt; text-decoration:underline"> </span></p> </td> <td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">Tinkoff </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Larisa </span><span style="font-family:Arial; font-weight:bold">Chernysheva</span><br/><span style="font-family:Arial">IR Department</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:11pt"><span style="font-family:Arial">+ 7 495 648-10-00 (ext. 2312)</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><a href="mailto:ir@tcsbank.ru" style="text-decoration:none"><span style="font-family:Arial; font-size:11pt; text-decoration:underline; color:#000000">ir@tinkoff.ru</span></a></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:11pt"><span style="font-family:Arial">&#160;</span></p> </td> </tr></tbody></table><p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">About <org>Tinkoff Group</org></span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial"><org>TCS Group Holding PLC</org> is an innovative provider of online retail financial services. It includes <org>Tinkoff Bank</org>, mobile virtual network operator Tinkoff Mobile, <org>Tinkoff Insurance</org>, management company <org>Tinkoff Capital</org>, Tinkoff Software DC, a network of development hubs in major Russian cities, and Tinkoff Education. The Group is currently developing Tinkoff ecosystem,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">which offers financial and lifestyle services.</span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial">The Group was founded in 2006 by Russian entrepreneur Oleg </span><span style="font-family:Arial">Tinkov</span><span style="font-family:Arial"> and has been listed on the <org>London Stock Exchange</org> since <chron>October 2013</chron>.</span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial">The Group&apos;s key business is <org>Tinkoff Bank</org>, a fully online bank that serves over 9 </span><span style="font-family:Arial">mn</span><span style="font-family:Arial"> customers and forms the core of the Tinkoff ecosystem.</span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial"><org>Tinkoff Bank</org> is the second largest player in the Russian credit card market, with a share of 13%. The </span><span style="font-family:Arial">1H </span><span style="font-family:Arial">2019 IFRS net income of <org>TCS Group Holding PLC</org> amounted to RUB </span><span style="font-family:Arial">15.4</span><span style="font-family:Arial"> bn. The ROE was 64.</span><span style="font-family:Arial">3</span><span style="font-family:Arial">%.</span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:11pt"><span style="font-family:Arial">With no branches, the Group serves all its customers remotely via online channels and a cloud-based call </span><span style="font-family:Arial">centre</span><span style="font-family:Arial">. The </span><span style="font-family:Arial">centre</span><span style="font-family:Arial"> is staffed by over 10,000 employees, making it one of the largest in <location value="LR/eur" idsrc="xmltag.org" >Europe</location>. To ensure smooth delivery of the Group&apos;s products, the Group has a nationwide network of over 2,500 representatives.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">In 2018, Global Finance named <org>Tinkoff Bank</org> the world&apos;s Best Consumer Digital Bank, and in 2019, 2018, 2016 and 2015, the Best Consumer Digital Bank in <location value="LC/ru" idsrc="xmltag.org" >Russia</location>. In 2017 and 2013, the Banker </span><span style="font-family:Arial">recognised</span><span style="font-family:Arial"> <org>Tinkoff Bank</org> as the Bank of the Year in <location value="LC/ru" idsrc="xmltag.org" >Russia</location>. The bank&apos;s mobile app has been consistently praised by local and global independent experts as the best of its kind (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:14pt"><span style="font-family:Arial; font-style:italic">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-weight:bold">Forward-looking statements</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial; font-style:italic">Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and <org>Tinkoff Bank</org>. You can identify forward looking statements by terms such as &quot;expect&quot;, &quot;believe&quot;, &quot;anticipate&quot;, &quot;estimate&quot;, &quot;intend&quot;, &quot;will&quot;, &quot;could,&quot; &quot;may&quot; or &quot;might&quot;, the negative of such terms or other similar expressions. The Group and <org>Tinkoff Bank</org> wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and <org>Tinkoff Bank</org> do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Group and <org>Tinkoff Bank</org>, including, among others, general economic conditions, the competitive environment, risks associated with operating in <location value="LC/ru" idsrc="xmltag.org" >Russia</location>, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, <org>Tinkoff Bank</org> and their respective operations.</span></p> </div> </div> <br/><hr/></td> </tr></table><table><tr><td align="left" valign="top" nowrap="nowrap"/> <td align="left" valign="top"/> </tr><tr><td align="left" valign="top" nowrap="nowrap">ISIN:</td> <td align="left" valign="top">US87238U2033</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">Category Code:</td> <td align="left" valign="top">IR</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">LSE Ticker:</td> <td align="left" valign="top">TCS</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">LEI Code:</td> <td align="left" valign="top">549300XQRN9MR54V1W18</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">Sequence No.:</td> <td align="left" valign="top">17297</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">EQS News ID:</td> <td align="left" valign="top">859981</td> </tr></table><br/><table border="0" cellpadding="0" cellspacing="0"><tr><td align="left" valign="top" colspan="2"/> </tr></table><table border="0"><tr><td align="left" valign="top" colspan="2">&#160;</td> </tr><tr><td align="left" valign="top">End of Announcement</td> <td align="left" valign="top"><org>EQS News Service</org></td> </tr></table><table border="0" width="600" cellpadding="0" cellspacing="0"><tr><td> <hr/></td> </tr></table><p> </p> <img src="https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=show_t_gif&amp;application_id=859981&amp;application_name=news&amp;site_id=acquiremedia_html" alt="fncls.ssp?fn=show_t_gif&amp;application_id=859981&amp;application_name=news&amp;site_id=acquiremedia_html" width="0" height="0" border="0"/></body></html>
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