12 Dec 2013 07:19
TCS GROUP HOLDING PLC
STATEMENT REGARDING THE CONSUMER CREDIT LAW
Moscow, Russia - 12 December 2013. TCS Group Holding PLC (TCS LI) (the "Group"), including "Tinkoff Credit Systems" Bank ("TCS Bank"), Russia's leading provider of online retail financial services, welcomes the amendments to the Law on Consumer Credit that were passed on 11 December 2013 in the second hearing by the State Duma.
TCS Bank notes that the new, clarified wording of Clause 8 (formerly Clause 7 that, amongst other things, covered distribution of credit cards), states that a credit card can be delivered to any address (i.e. not just to a fixed branch as previously incorrectly drafted) indicated by the borrower in the customer agreement provided that 1) the customer's consent is provided and 2) that delivery is done in a way that allows confirmation that the credit card was received by the actual borrower or their representative. Further, delivery and usage of the credit card should only be allowed once the creditor has fully identified the customer.
TCS Bank firmly believes that the Law on Consumer Credit will bring much-needed clarity to the under-regulated consumer lending market in Russia and ensure better protection for Russian consumers. As a result of these new amendments, TCS Bank does not need to make any changes to its business model or operations. All of the bank's customers receive their cards only after their application form has been fully processed, checked in the credit bureaux and the customer identity has been fully verified. For those customers that are approved, cards are delivered directly to customers using TCS's own network of smart couriers. TCS couriers conduct further identification of the customer before handing over the card.
Oliver Hughes, CEO of TCS Bank, commented: "We very much welcome the long-awaited Law on Consumer Credit as we believe that both the Russian consumer and overall lending market stand to benefit from the better protection and clarity that this law will bring. We also welcome the clarifications to distribution requirements (Clause 8) that remove the uncertainties that arose from the previous draft. We are in full compliance with these legislative requirements as we have always delivered credit cards only with the prior consent of the customer."
For enquiries:
"Tinkoff Credit Systems" Bank
Elena Shushunova, PR department
+ 7(495) 648 1000 (ext. 2244), +7 (916) 804 3276
e.shushunova@tcsbank.ru
FTI Consulting London
Larisa Millings
+44 (0)20 7269 7153
FTI Consulting Moscow
Maria Shiryaevskaya
+7 495 795 06 23
About the Group
TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. In order to support its branchless platform, the Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers.
Since its launch in 2007 by Mr. Oleg Tinkov, one of the best known Russian entrepreneurs with a long track record of creating successful businesses, the Group has grown into a leader in the Russian credit card market, with the third largest credit card loan portfolio and a market share of 7.5% based on non-delinquent receivables (according to Central Bank of Russia ("CBR") data, as of 1 October 2013). As of December 2013, the Group had issued over 4 mln credit cards.
In addition to a market-leading credit card offering, the Group has developed a successful online retail deposits programme and added Tinkoff Mobile Wallet to its portfolio of innovative online products and services for Russian consumers, including mobile financial services, payment solutions and insurance.
As of 30 September 2013, the Group's total assets amounted to USD 2.7 bn, net loans and advances to customers stood at USD 2.2 bn and customer accounts (deposits) amounted to USD 1.1 bn. In the nine months ended 30 September 2013, the Group generated a net profit of USD 126 mln and net interest income of USD 610 mln.
The Group is well capitalised with the CBR N1 capital adequacy ratio of 14.6% as of 30 September 2013, and its total capital ratio and Tier 1 capital ratio of 23.2%* and 15.5%*, respectively.
The Group's class A shares, in the form of Global Depositary Receipts, have been trading on the London Stock Exchange since October 2013. TCS Group Holding PLC's share capital consists of 89,044,396 Class A shares and 92,144,679 Class B shares.
* Bank's estimates (unaudited)
Forward-looking statements
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 TCS Bank. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might", the negative of such terms or other similar expressions. The Group and TCS Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and TCS Bank 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 TCS Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, TCS Bank and their respective operations.