Company Announcements

Statement on Tinkoff Bank's RAS Financial Highlights for January - July 2019

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/> Statement on <org>Tinkoff Bank&apos;s</org> RAS Financial Highlights for January - <chron>July 2019</chron> <br/><br/><span><chron>29-Aug-2019</chron> / <chron>19:19 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:30pt; line-height:24pt"><span style="font-family:Arial; font-size:24pt">Statement</span><span style="font-family:Arial; font-size:24pt">&#160;</span><span style="font-family:Arial; font-size:24pt">on</span><span style="font-family:Arial; font-size:24pt">&#160;</span><span style="font-family:Arial; font-size:24pt"><org>Tinkoff Bank&apos;s</org> RAS Financial Highlights for</span><span style="font-family:Arial; font-size:24pt"> </span><span style="font-family:Arial; font-size:24pt">J</span><span style="font-family:Arial; font-size:24pt">anuary -</span><span style="font-family:Arial; font-size:24pt"> </span><span style="font-family:Arial; font-size:24pt">July</span><span style="font-family:Arial; font-size:24pt"> </span><span style="font-family:Arial; font-size:24pt">201</span><span style="font-family:Arial; font-size:24pt">9</span><span style="font-family:Arial; font-size:24pt"> </span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold"><location value="LU/ru..moscow" idsrc="xmltag.org" >Moscow</location>,</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold"><location value="LC/ru" idsrc="xmltag.org" >Russia</location></span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold">-</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold">2</span><span style="font-family:Arial; font-weight:bold">9</span><span style="font-family:Arial; font-weight:bold"> </span><span style="font-family:Arial; font-weight:bold">August</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial; font-weight:bold">201</span><span style="font-family:Arial; font-weight:bold">9</span><span style="font-family:Arial; font-weight:bold">.</span><span style="font-family:Arial; font-weight:bold">&#160;</span><span style="font-family:Arial"><org>TCS Group Holding PLC</org> (TCS LI) (the &quot;Group&quot;), </span><span style="font-family:Arial"><location value="LC/ru" idsrc="xmltag.org" >Russia&apos;s</location> leading provider of online financial </span><span style="font-family:Arial">and lifestyle </span><span style="font-family:Arial">services</span><span style="font-family:Arial"> via its Tinkoff ecosystem,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">today announces <org>Tinkoff Bank&apos;s</org> unaudited RAS financial highlights</span><span style="font-family:Arial"> </span><span style="font-family:Arial">for</span><span style="font-family:Arial"> </span><span style="font-family:Arial; font-size:11pt">January -</span><span style="font-family:Arial; font-size:11pt"> </span><span style="font-family:Arial">July</span><span style="font-family:Arial"> </span><span style="font-family:Arial">201</span><span style="font-family:Arial">9</span><span style="font-family:Arial">.</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:12pt"><span style="font-family:Arial">For </span><span style="font-family:Arial">the</span><span style="font-family:Arial"> </span><span style="font-family:Arial">seven </span><span style="font-family:Arial">month</span><span style="font-family:Arial">s</span><span style="font-family:Arial"> </span><span style="font-family:Arial">of</span><span style="font-family:Arial"> </span><span style="font-family:Arial">201</span><span style="font-family:Arial">9</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> n</span><span style="font-family:Arial">et income</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">stood at </span><span style="font-family:Arial">RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">16</span><span style="font-family:Arial">.</span><span style="font-family:Arial">7b</span><span style="font-family:Arial">n</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">which is attributed to growth of net interest incom</span><span style="font-family:Arial">e</span><span style="font-family:Arial">, </span><span style="font-family:Arial">stable</span><span style="font-family:Arial"> </span><span style="font-family:Arial">cost of funding</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> </span><span style="font-family:Arial">good</span><span style="font-family:Arial"> </span><span style="font-family:Arial">quality of the loan portfolio</span><span style="font-family:Arial"> and growth of revenue from new business lines</span><span style="font-family:Arial">.</span><span style="font-family:Arial"> </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:12pt"><span style="font-family:Arial">It should be noted that the RAS net income figure is not a reliable indicator of IFRS net income for the same period. There is a very low correlation between financial results under the two reporting standards as a result of significant accounting differences</span><span style="font-family:Arial">.</span><span style="font-family:Arial"> </span><span style="font-family:Arial">T</span><span style="font-family:Arial">herefore</span><span style="font-family:Arial">,</span><span style="font-family:Arial"> RAS figures should not be used as the basis for conclusions on forthcoming IFRS results.</span><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:12pt"><span style="font-family:Arial">The </span><span style="font-family:Arial">gross loan portfolio</span><span style="font-family:Arial"> </span><span style="font-family:Arial">amounted to RUB </span><span style="font-family:Arial">346</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">representing an increase of</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">73</span><span style="font-family:Arial">% y-o-y. The net loan portfolio amounted to RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">298.6</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">having increased by </span><span style="font-family:Arial">79</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">%</span><span style="font-family:Arial"> y-o-y</span><span style="font-family:Arial"> and</span><span style="font-family:Arial"> constitute</span><span style="font-family:Arial">d</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">66</span><span style="font-family:Arial">% of total assets (</span><span style="font-family:Arial">53</span><span style="font-family:Arial">% at year-end </span><span style="font-family:Arial">201</span><span style="font-family:Arial">8</span><span style="font-family:Arial">).</span><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:12pt"><span style="font-family:Arial">Retail customer accounts</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">stood at</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">RUB </span><span style="font-family:Arial">2</span><span style="font-family:Arial">84</span><span style="font-family:Arial">bn</span><span style="font-family:Arial">.</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">Tinkoff </span><span style="font-family:Arial">Bank</span><span style="font-family:Arial"> continued to</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">retain </span><span style="font-family:Arial">substantial</span><span style="font-family:Arial"> liquidity:</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">the CBR N2 ratio stood at</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">69</span><span style="font-family:Arial">% (minimum</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">requirement: 15%), and the CBR N3 ratio was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">135</span><span style="font-family:Arial">% (minimum</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">requirement: 50%). Retail</span><span style="font-family:Arial"> customer accounts constitute</span><span style="font-family:Arial">d</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">74</span><span style="font-family:Arial">% of total liabilities.</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:12pt"><span style="font-family:Arial">Total assets</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">increased by</span><span style="font-family:Arial"> </span><span style="font-family:Arial">48</span><span style="font-family:Arial">% y-o-y to RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">449</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:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">A</span><span style="font-family:Arial">s of 1</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">August</span><span style="font-family:Arial"> </span><span style="font-family:Arial">201</span><span style="font-family:Arial">9, </span><span style="font-family:Arial">t</span><span style="font-family:Arial">otal capital including retained profits (based on Form 123)</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">amounted to RUB</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">84</span><span style="font-family:Arial">.</span><span style="font-family:Arial">5</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">The CBR N1</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">capital adequacy ratio</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">11</span><span style="font-family:Arial">.</span><span style="font-family:Arial">52</span><span style="font-family:Arial">%. Core Capital Adequacy Ratio (N1.1) </span><span style="font-family:Arial">was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">7</span><span style="font-family:Arial">.</span><span style="font-family:Arial">37</span><span style="font-family:Arial">%</span><span style="font-family:Arial"> </span><span style="font-family:Arial">and Main Capital Adequacy Ratio (N1.2) </span><span style="font-family:Arial">was</span><span style="font-family:Arial">&#160;</span><span style="font-family:Arial">9</span><span style="font-family:Arial">.</span><span style="font-family:Arial">96</span><span style="font-family:Arial">%.</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:12pt"><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; text-decoration:underline">Note on RAS results</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:12pt"><span style="font-family:Arial">Please note that the figures in this press release are calculated in accordance with T</span><span style="font-family:Arial">inkoff</span><span style="font-family:Arial"> Bank&apos;s internal methodology which is available at:</span><span style="font-family:Arial">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </span><span style="font-family:Arial">&#160;</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial"><a href="http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf">http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf</a></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:12pt"><span style="font-family:Arial">RAS results are not a reliable indicator of IFRS results due to significant accounting differences that make a direct read-across from RAS to IFRS results impossible. The main differences between RAS and IFRS are:</span></p> <ul style="margin:0pt; padding-left:0pt" type="disc"><li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">Consolidated results under IFRS include a number of additional items and results of its subsidiaries</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">Accrual</span><span style="font-family:Arial"> </span><span style="font-family:Arial">of</span><span style="font-family:Arial"> </span><span style="font-family:Arial">expenses</span><span style="font-family:Arial"> </span><span style="font-family:Arial">under</span><span style="font-family:Arial"> IFRS</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">Timing differences in accounting for restructured loans (&apos;instalments&apos;) and loans going through courts</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">The effect from the revaluation of currency derivative instruments</span></li> <li style="margin-left:28.83pt; padding-left:6.62pt; font-family:serif; font-size:12pt"><span style="font-family:Arial">The effect of deferred income tax.</span></li> </ul><p style="margin-top:0pt; margin-left:35.45pt; margin-bottom:0pt; font-size:12pt"><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:12pt"><span style="font-family:Arial; font-weight:bold">For 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:12pt"><span style="font-family:Arial"><org>Tinkoff Bank</org></span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><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><span style="font-family:Arial"> </span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><span style="font-family:Arial">+ 7 495 648</span><span style="font-family:Arial">-</span><span style="font-family:Arial">10-00 (</span><span style="font-family:Arial">ext</span><span style="font-family:Arial">. 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; text-decoration:underline; color:#0000ff">d.ermolina@tinkoff.ru</span></a></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt">&#160;</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:12pt"><span style="font-family:Arial"><org>Tinkoff Bank</org></span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold">Larisa </span><span style="font-family:Arial; font-weight:bold">Chernysheva</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:Arial">IR Department</span></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><span style="font-family:Arial">+ 7 495 648</span><span style="font-family:Arial">-</span><span style="font-family:Arial">10-00 (</span><span style="font-family:Arial">ext</span><span style="font-family:Arial">. 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; text-decoration:underline; color:#0000ff">ir@tinkoff.ru</span></a></p> <p style="margin-top:0pt; margin-bottom:0pt; text-align:justify; font-size:12pt"><span style="font-family:Arial">&#160;</span></p> </td> </tr></tbody></table><p style="margin-top:12pt; margin-bottom:12pt; font-size:12pt"><span style="font-family:Arial; font-weight:bold">About </span><span style="font-family:Arial; font-weight:bold">Tinkoff</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><span style="font-family:Arial">Tinkoff is an online financial ecosystem centred around the needs of its customers.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">The Tinkoff ecosystem offers a full range of financial services for individuals and businesses.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">With a focus on lifestyle banking, the Tinkoff ecosystem enables customers to assess and plan personal spending, invest their savings, earn loyalty programme bonuses, book trips, buy movie tickets, make restaurant reservations and much more.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">All Tinkoff services are accessible via our mobile applications and on the Tinkoff.ru website.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">The Tinkoff ecosystem is branchless: its network of 2,500 smart couriers can deliver the Company&apos;s products anywhere in <location value="LC/ru" idsrc="xmltag.org" >Russia</location> in the shortest time span possible, and customer service is handled online and by call centres (both office and cloud-based). Tinkoff makes active use of AI and machine learning technologies to streamline communications: over 30% of customers&apos; chat queries are resolved with no employee involvement.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">All Tinkoff products and most of its IT systems have been developed in-house. Some 70% of the bank&apos;s HQ staff are IT specialists.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">At the core of the ecosystem is <org>Tinkoff Bank</org>, which was founded in 2006 and has since become the world&apos;s biggest independent direct bank with over 9 million customers. 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 recognised <org>Tinkoff Bank</org> as the Bank of the Year in <location value="LC/ru" idsrc="xmltag.org" >Russia</location>.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:11pt"><br/><span style="font-family:Arial">The bank&apos;s parent company - <org>TCS Group Holding PLC</org> - has been listed on the LSE since </span><span style="font-family:Arial">2013. The 1H 2019 IFRS net income of <org>TCS Group Holding PLC</org> amounted to <money>RUB 15.4 bn</money>. </span><span style="font-family:Arial">The</span><span style="font-family:Arial"> ROE </span><span style="font-family:Arial">was</span><span style="font-family:Arial"> 64.3%.</span></p> <p style="margin-top:0pt; margin-bottom:0pt; font-size:12pt"><span style="font-family:'Times New Roman'">&#160;</span></p> <p style="margin-top:12pt; margin-bottom:12pt; font-size:12pt"><span style="font-family:Arial">&#160;</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">MSCL</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">2534000KL0PLD6KG7T76</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">Sequence No.:</td> <td align="left" valign="top">18458</td> </tr><tr><td align="left" valign="top" nowrap="nowrap">EQS News ID:</td> <td align="left" valign="top">865791</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=865791&amp;application_name=news&amp;site_id=acquiremedia_html" alt="fncls.ssp?fn=show_t_gif&amp;application_id=865791&amp;application_name=news&amp;site_id=acquiremedia_html" width="0" height="0" border="0"/></body></html>