TCS.L Regulatory News (TCS)

AHML and Tinkoff Bank create e-platform for mortgage loans

Moscow, Russia - 31 January 2018. The Agency for Housing Mortgage Lending ("AHML") and Tinkoff Bank have signed an agreement to set up a joint venture to offer mortgage lending on a special electronic platform. The agreement was signed by Alexander Plutnik, CEO of AHML, and Oleg Tinkov, Chairman of the Board of Directors of Tinkoff Bank.

The platform was designed to enable online acquisition of mortgage customers using Tinkoff Bank's technology platform. It will support automated mortgage approvals based on AHML standards, execute loan documentation and issue mortgage loans, enable online registration of property transactions with the Federal Service for State Registration, Cadastre and Cartography, and can be integrated with the systems of other Russian mortgage lenders.

This online mortgage lending platform will also enable borrowers to service mortgage loans, including making monthly payments. Customers will be able to request bank statements and other mortgage documents, including insurance contacts, and seek mortgage servicing advice.

In this joint effort, AHML will focus on creating mortgage products, underwriting, online registration of property transactions and loan origination by the agency's bank. Tinkoff Bank, in turn, will be responsible for setting up the platform, promoting the service and providing 24/7 customer support.

"An increasing number of Russians are looking to use mortgage loans to buy a home. We need to put in place an up-to-date solution to make this process as user-friendly and easy-to-use as possible. Tinkoff Bank is a fintech leader with an extensive track record in developing innovative online services. Together, we will build a platform to propel mortgage origination in Russia to a whole new level," commented Alexander Plutnik.

"We are delighted to combine AHML's e-transaction experience and Tinkoff Bank's customer acquisition expertise to harness this synergy and bring a new, promising mortgage player to the Russian market. This is a huge step forward for Tinkoff Bank. While in the past Tinkoff Mortgage served as a platform to partner with banks for a better customer experience, we will now be able to make a difference across the entire mortgage origination process," said Oleg Tinkov.

About Tinkoff Bank

Tinkoff is Russia's first and only direct bank with over 5 mln customers. The bank was founded in 2006 by the Russian entrepreneur Oleg Tinkov.

TCS Group Holding PLC, the bank's holding company, has been listed on the London Stock Exchange since October 2013. In addition to the bank the Group includes mobile virtual operator Tinkoff Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of development hubs across Russia.

With no retail branches, the bank serves its customers remotely via online channels and its call centre, and operates a network of over 1,800 representatives to ensure smooth delivery of its products. The network covers all of Russia and allows next day delivery to most customers.

The bank offers both own brand and partner retail financial services via its Tinkoff.ru platform. The product range includes daily banking (credit and debit cards, payments, money transfers), savings, investments, loyalty programmes, travel services, SME services, mortgage platform, and insurance. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

As at 1 August 2017, the bank was the second largest player in the Russian credit card market, with a market share of 11.5%. The 1H 2017 IFRS net income of TCS Group Holding PLC amounted to RUB 7.6 bn, ROE stood at 46%.

Banki.ru, Russia's largest financial news portal, named Tinkoff Bank the Bank of the Year 2016. In October 2016 Tinkoff Bank was named the largest independent global direct bank by Frost & Sullivan. In 2016 and 2015, the Global Finance magazine named Tinkoff Bank as the Best Consumer Digital Bank in Russia. In 2016, the bank also won Global Finance's Best Integrated Consumer Bank Site award. In 2016, Tinkoff Bank was named the Best Digital Bank in the CEE by Euromoney. Its mobile application was recognised as the best in Russia by Markswebb Rank & Report in 2014, 2015 and 2016, and by Deloitte for four years in a row in 2013-2016.

Tinkoff Bank is a member of the deposit insurance system (the system guarantees each depositor of member banks a payout of RUB 1.4 mln on deposits and current accounts, including interest income).