TCS.L Regulatory News (TCS)

Tinkoff Bank to launch brokerage services based on BCS Broker solution

· The new solution will allow Tinkoff Bank's customers to open brokerage accounts and purchase securities online

Moscow, Russia, - 6 October 2015 Tinkoff Bank (the "Bank"), an innovative provider of online financial services, and BCS Broker, a brokerage arm of BCS Financial Group, have signed a cooperation agreement for BCS Broker to become the Bank's brokerage partner.

The new solution will enable Tinkoff Bank's customers to open brokerage accounts using the mobile app or the website in just a few clicks and without visiting the office. They will be able to purchase and sell Russian and international equity and debt instruments from a single account with no currency, stock exchange, or transaction amount restrictions.

The solution has been developed specifically for the Tinkoff.ru online portal, Tinkoff Bank's 'financial marketplace' offering both the Bank's products and its partners' services.

Users of the new service will have an opportunity to buy and sell securities on the Moscow Exchange and leading global platforms. In addition, the service will have a useful feature for monitoring the customer's balance and transactions in real time, both on the website and with the mobile app.

The partners expect to launch this service within a few months.

Alexander Emeshev, Vice President, New Products Development at Tinkoff Bank, said: "We aim to ensure that all our products are as clear and user-friendly as possible. We believe that Tinkoff Bank's technology and expertise in customer service, coupled with BCS Broker's financial solutions, will bring our brokerage services closer to the customer and make them more accessible to a wide range of private investors."

"This partner project marks an entirely new shape of today's brokerage. I think that trading and earning money on the stock market has never been easier, clearer and more convenient in terms of technology. I am convinced that not only will this partnership enable us to strengthen both companies' positions on the financial services market, but it will also expand the base of Russian private investors willing to purchase equity and debt instruments and enhance the national financial culture," said Andrey Aletdinov, BCS Broker Managing Director.

Brokerage will form a new business line as part of the www.tinkoff.ru portal. After launching a mortgage platform in May, the Bank is planning to introduce services for small and medium businesses in the near future.

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About the TCS Group Holding PLC

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, a renowned Russian entrepreneur with a long track record of creating successful businesses, the Group has grown into a leader in the Russian credit card market. As of 1 August 2015, the Group has issued over 5.2 mln credit cards.

In addition to a market-leading credit card offering, the Group has developed a successful online retail deposits programme. The Group's other innovative lines of business include Tinkoff Insurance, which enables the Group to underwrite and sell its own innovative online insurance products.

As of 30 June 2015, the Group's total assets amounted to RUB 122.2 bn, net loans and advances to customers stood at RUB 75.6 bn and customer accounts (deposits) amounted to RUB 71.7 bn. In 2Q15, the Group generated a net profit of RUB 0.4 bn and net interest income of RUB 6.4 bn. As of 30 June 2015, the Group is well capitalised with the total capital ratio and Tier 1 capital ratio of 19.6% and 15.0%, respectively, in accordance with Basel III methodology.

About BCS Financial Group

BCS Financial Group is a leading financial service group that provides innovative and customizable high and low touch trading solutions for Russia and core global & emerging markets. In 2012, BCS Financial Group launched its Global Markets and Investment Banking division to build on its existing strengths in the Russian markets and, since June 2013, offers prime services in London through its FCA regulated UK entity, BCS Prime Brokerage Limited ("BCS UK"). Repeatedly awarded and nominated as one of the best investment companies in Russia, BCS is the broker of choice for trading Russian instruments: since August 2013, BCS has been consistently ranked number one on MoEx Equity market and on MoEx FX Market. 

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 Tinkoff 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 Tinkoff Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and Tinkoff 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 Tinkoff 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, Tinkoff Bank and their respective operations.