LONDON (Alliance News) - TCS Group Holdings PLC Monday reported a 49% increase in 2013 pretax profit, as its banking subsidiary issued more credit cards than in 2012.
Pretax profits rose to USD236.0 million from USD158.0 million in 2012, after net interest income rose by 69% to USD843 million. After impairments, the increase was trimmed to 43% at GBP536 million. Net income rose by 48% to USD181 million from USD122 million.
"Despite a tougher operating environment in the second half of 2013, we delivered net income of USD181 million, consistent with our target. These results set us apart from other consumer lenders in the market and demonstrate TCS Bank's ability to grow profitability thanks to its unique distribution, risk management and analytical capabilities," Oliver Hughes, TCS Bank chief executive, said in a statement.
And although the group is expecting generally slower growth in the Russian retail lending and credit card market, because of difficult credit conditions and market-wide measures taken by the Central Bank of Russia to reduce the pace of retail lending growth, it expects to make RUB7.2 billion to RUB7.8 billion in net income in 2014. According to xe.com, RUB7.20 billion is equivalent to about USD197 million and RUB7.8 billion to USD2133 million, so an 8.9% to 18% increase on 2013.
The group has set its guidance in roubles because it will adopt the rouble as its currency of choice for its IFRS consolidated statements in 2014. This is because it uses the rouble in its operations.
"TCS Bank also demonstrated robust asset growth with the gross loan portfolio increasing to USD2.5 billion or by 49%, compared to 2012, and cash amounting to USD575 million," Hughes added.
TCS Group GDRs were trading at USD9.63 Monday midday, down 14%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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