20 Feb 2014 13:16
TCS GROUP HOLDING PLC
Statement on TCS Bank's RAS Financial Highlights for January 2014
Moscow, Russia - 20 February 2014. TCS Group Holding PLC (TCS LI) (the "Group"), including Tinkoff Credit Systems Bank ("TCS Bank"), Russia's leading provider of online retail financial services, today announces TCS Bank's unaudited RAS financial highlights for January 2014.
Assets grew by RUB 2.3 bln or 2% in January compared to year-end 2013 and RUB 41.3 bln or 49% year-on-year. The main driver of asset growth for both periods was growth in the loan portfolio. The loan portfolio increased by RUB 2.4 bln or 3% in January compared to the year-end and RUB 29.9 bln or 55% year-on-year and amounted to RUB 84 bln. The slower growth of the gross loan portfolio in January is due in part to the period of Russian public holidays at the beginning of the month and also as a result of TCS Bank's more cautious credit underwriting policy.
Net income in January was RUB 0.8 bln compared to RUB 0.7 bln in December 2013, mostly due to lower administrative costs resulting from fewer working days in the month. It should be noted that the RAS net income figure is not a reliable indicator of IFRS net income for the same period.
The N1 capital adequacy ratio (under RAS Basel approach) decreased to 14.02% as of 1 February 2014, as a result of discounting subordinated loans, revised accounting for operational risk and the new calculation of risk weighted assets with PSK over 25%.
Note on RAS results
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 impossible. The main differences between RAS and IFRS are:
• Consolidated results under IFRS include a number of additional items and results of its subsidiaries
• Accrual of expenses under IFRS
• Timing differences in accounting for restructured loans ('instalments') and loans going through the courts
• Effect from the revaluation of currency derivative instruments
• Effect of deferred income tax
For enquiries:
Tinkoff Credit Systems Bank
Darya Ermolina, Head of PR
+ 7(495) 648 1000 (ext. 2009)
d.ermolina@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 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. TCS Bank's other innovative lines of business include Tinkoff Online Insurance, which enables the Group to underwrite and sell its own innovative online insurance products, and Tinkoff Mobile Wallet, mobile payment solutions and financial services for Russian consumers.
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)