27 Jan 2015 13:45
Statement on Tinkoff Bank's RAS Financial Highlights for 2014
Moscow, Russia - 27 January 2015. TCS Group Holding PLC (TCS LI) (the "Group"), including Tinkoff Bank, Russia's leading provider of online retail financial services, today announces Tinkoff Bank's unaudited RAS financial highlights for January-December 2014.
In 2014, net income reached RUB 4.6 bn. Higher growth in revenue and net interest income was partially offset by increased loan provisioning and losses from operations with foreign currencies (due to the Russian Ruble devaluation).
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 and therefore RAS figures should not be used as the basis for conclusions on forthcoming IFRS results.
The gross loan portfolio for 2014 amounted to RUB 96.2 bn representing an increase of 18% y-o-y. The net loan portfolio amounted to RUB 69.9 bn and remained relatively flat y-o-y. The net loan portfolio constituted 63% of total assets (67% at year-end 2013).
Retail customer accounts decreased by 1% y-o-y to RUB 41.3 bn. Tinkoff Bank retained a high level of liquidity throughout 2014: the CBR N2 ratio stood at 64.7% at year-end (minimum requirement: 15%), and the CBR N3 ratio was 60.3% (minimum requirement: 50%). Retail customer accounts constituted 44% of total liabilities at year-end and remained flat compared to 2013.
Total assets increased by 6% y-o-y to RUB 111.6 bn. In 2014, Tinkoff Bank fully redeemed its Eurobond (USD 175 mln) and three tranches of Euro-Commercial Paper for a total amount of USD 145 mln.
On 26 March 2014, Tinkoff Bank increased its registered share capital by RUB 5.3 bn following the completion of the registration of IPO proceeds with the CBR. In December 2014, Tinkoff Bank paid dividends to its shareholders in the amount of RUB 3 bn. As a result, total capital including retained profits (based on Form 123) increased by 29% y-o-y to RUB 23.1 bn as of 1 January 2015. The CBR N1 capital adequacy ratio was 15.54%. Both Core Capital Adequacy Ratio (N1.1) and Main Capital Adequacy Ratio (N1.2) were 9.41%.
Post 2014 events:
· Beginning 2015, Tinkoff Credit Systems Bank was renamed Tinkoff Bank
Note on RAS results
Please note that the figures in this press release are calculated in accordance with Tinkoff Bank's internal methodology which is available at:
http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf
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:
• 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 courts
• The effect from the revaluation of currency derivative instruments
• The effect of deferred income tax.
About the Group TCS Group Holding PLC is an innovative provider of online retail financial services which includes Tinkoff Bank and Tinkoff Insurance and operates in Russia througha 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 townsin Russia which allows next day delivery to many customers. Since its launch in 2006 by Mr Oleg Tinkov, a renowned Russian entrepreneur witha long track record of creating successful businesses, the Group has grown into a leader in the Russian credit card market with a market share of 6.7% based on non-delinquent receivables (according to Central Bank of Russia (CBR) data, as of 1 October 2014). As of 1 November 2014, the Group has issued over 4.8 mln credit cards. In addition to a market-leading credit card offering, the Group has developeda successful online retail deposits programme. The Group's other innovative linesof business include Tinkoff 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. According to the Group's IFRS results as of 30 September 2014, the Group's total assets amounted to RUB 96.5 bn, net loans and advances to customers stood at RUB 74.7 bn and customer accounts (deposits) amounted to RUB 41.3 bn. In 9M 2014, the Group generated a net profit of RUB 2.8 bn and net interest income of RUB 23.1 bn. The Group is well capitalised with the total capital ratio and Tier 1 capital ratio of 26.6% and 21.2%, respectively, in accordance with Basel III methodology.
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