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TCS Group Holding PLC (TCS)
TCS Group Holding PLC Posts Record High Net Income in 3Q and 9M'18,
Announces 4th 2018 Interim Dividend
26-Nov-2018 / 10:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
TCS Group Holding PLC Posts Record High Net Income in 3Q and 9M'18,
Announces 4th 2018 Interim Dividend
Limassol, Cyprus - 26 November 2018. TCS Group Holding PLC (TCS LI) (the
"Group"), Russia's leading provider of online financial and lifestyle
services via its Tinkoff.ru ecosystem, today announces its interim condensed
consolidated IFRS results for the third quarter and nine months ended 30
September 2018.
KEY FINANCIAL HIGHLIGHTS
3Q '2018
- Net margin up 22% y-o-y to RUB 14.9 bn (3Q'17: RUB 12.2 bn)
- Profit before tax up 44% y-o-y to RUB 9.6 bn (3Q'17: RUB 6.6 bn)
- Net income up 44% y-o-y to RUB 7.3 bn (3Q'17: RUB 5.0 bn) - a record
high quarterly net income in the Group's history
- ROE increased to 80.4% (3Q'17: 53.7%)
- Net interest margin at 23.0% (3Q'17: 25.1%)
- Cost of risk at 6.2% (3Q'17: 6.0%)
9M'2018
- Net margin grew by 30% y-o-y to RUB 43.1 bn (9M'17: RUB 33.1 bn)
- Profit before tax up 50% y-o-y to RUB 24.8 bn (9M'17: RUB 16.5 bn)
- Net income up 51% y-o-y to RUB 19 bn (9M'17: RUB 12.6 bn) - a record
high 9M net income in the Group's history
- ROE grew to 72.9% (9M'17: 48.8%)
- Net interest margin at 24.0% (9M'17: 25.6%)
- Cost of risk at 6.7% (9M'17: 6.5%)
All balance sheet numbers and ratios as of 30 September 2018 below are
compared with corresponding numbers and ratios as of 1 January 2018 and have
been compiled in accordance with IFRS 9. All changes shown for comparative
numbers and ratios also reflect the transition to IFRS 9.
- Total assets increased by 24.2% to RUB 322.0 bn (1 Jan'18: RUB 259.3 bn)
- Gross loans and advances to customers up 23.3% to RUB 205.4 bn (1
Jan'18: RUB 166.7 bn)
- Net loans and advances to customers up 30.0% to RUB 168.7 bn (1 Jan'18:
RUB 129.7 bn)
- Share of non-performing loans (NPLs) decreased to 10.8% (1 Jan'18:
13.4%)
- Customer accounts increased by 30.4% to RUB 233.5 bn (1 Jan'18: RUB
179.0 bn)
- Total equity increased by 17.0% to RUB 37.6 bn (1 Jan'18: RUB 32.1 bn)
GUIDANCE FOR 2018 UPGRADED
Following strong underlying growth year to date in 2018, the Group is
pleased to upgrade its FY18 performance guidance:
* net income of over RUB 26 bn (previously over RUB 24 bn)
* net loan portfolio growth to be at least 40% (previously at least 25%)
* cost of risk to be around 7% on an IFRS 9 basis
* cost of borrowing to be at the lower end of the 6-7% range
KEY HIGHLIGHTS FOR 3Q'2018
- In 9M'18 over 1.7m new active credit customers were acquired,
underpinning net loan growth of 30%
- Tinkoff Bank's credit card market share stood at 11.4% as of 1 October
2018, strengthening its position as Russia's second largest credit card
issuer
- In July, Tinkoff acquired a stake in Kassir.ru, Russia's top online
ticketing provider, in a move to further develop its ecosystem and offer
customers a greater choice of financial and lifestyle services through the
Tinkoff.ru platform
- In July, Tinkoff and Sberbank launched joint P2P money transfers using
just a mobile phone number
- In August, Global Finance, the international banking and financial
magazine, recognized Tinkoff Bank as best consumer digital bank in Russia.
In addition, Tinkoff Bank won the following Central and Eastern Europe
nominations: Best Investment Service, Best Digital Mortgage Service, Best
Bill Payment & Presentment, Best Information Security and Fraud
Management, Best in Mobile Banking, and Best Mobile Banking App
- In September, Tinkoff Bank launched movie tickets bookings in its mobile
banking app, further expanding its lifestyle services offering and now
selling over 40,000 tickets per week
- In September, Tinkoff Bank launched Tinkoff Investments Premium,
offering access to over 10,000 global securities and providing personal
manager services directly in the Investments app
- As at the end of 3Q'18, Tinkoff Bank had 4 mn current accounts
customers, Tinkoff Business had almost 390,000 customers, and Tinkoff
Investments had 157,000 customers
KEY HIGHLIGHTS POST 9M'2018
- In November, Tinkoff Bank was named the best consumer digital bank
globally in 2018 by Global Finance's World's Best Digital Bank Awards,
while the Tinkoff mobile banking app was named best in the world among
consumer banks
- Tinkoff mobile banking app has over 9.5 mn installs (up 45% since YE17),
MAU is up 76% YTD and stands at 3 mn, DAU doubled YTD and stands at 1 mn.
Number of sessions per month has grown 3.5 times YTD to 62mn sessions,
session duration increased 2.7 times to 4 min YTD
- In October, Tinkoff Bank joined forces with Mail.Ru Group, oneFactor,
MegaFon, Sberbank and Yandex to set up the Big Data Association in an
attempt to set the stage for promoting big data technology and products in
Russia
- In October, the Bank expanded its banking platform for children and
teenagers with the launch of Tinkoff Junior, a mobile app that gives young
customers an easy-to-use and robust tool to manage their personal
finances. The app has gained over 10,000 new customers in the first month
- In October, Tinkoff launched nationwide biometric data collection and
became an official vendor for the Unified Biometrics System supplying
voice recognition technology
- In October, Tinkoff Bank extended its multi-currency account, offering
to 30 currencies
- In October, Tinkoff Bank launched an Android Mortgage app for users of
Tinkoff Mortgage platform
- In November, Tinkoff become the first Russian bank to open a virtual
development hub, a cloud office bringing together employees from different
locations for banking product development. The virtual hub works alongside
Tinkoff's 10 physical development hubs
- Following the acquisition of a stake in Kassir.ru, in November Tinkoff
Bank launched sales of tickets to theatres, concerts and other events in
its mobile banking app, further expanding its lifestyle offering
FOURTH 2018 INTERIM DIVIDEND ANNOUNCEMENT
In line with the Group's dividend policy, the Group's Board of Directors on
25 November 2018 approved a fourth interim gross dividend for 2018 of USD
0.28 per share/per GDR (with each GDR representing one share) with a total
amount allocated for dividend payment for Q3 of around USD 51.1 mn.
Subject to London Stock Exchange regulations, indicatively the dividend will
be payable on 10 December 2018 to those shareholders on the register as at
the record date of 7 December 2018. The ex-dividend date will be 6 December
2018.
According to the terms of the GDR deposit agreement, holders of the Group's
GDRs should receive their dividends approximately five business days after
the payment date.
Oliver Hughes, CEO of Tinkoff Bank, commented:
"As we approach the end the 2018, I am pleased to confirm the year is coming
together very well. The Tinkoff financial and lifestyle ecosystem continues
to grow, and now counts over 8 mn customers. About half of these customers
are borrowers and half are transactional customers.
"We continue to add new services, expanding both our financial and our
lifestyle service offering. On the credit side, personal installment loans
and POS loans now supplement our core credit card business, and we have also
launched our planned secured lending pilots in home equity loans, car loans
and SME loans.
"On the lifestyle side, we have added cinema and theatre tickets, and
tickets to concerts and other events in our mobile banking app. Now that we
have a growing range of services, our customers use our mobile app not just
as a financial tool, but increasingly see it as a lifestyle guide, resulting
in significant growth in key app usage metrics: the number of daily active
users has doubled to 1 million, and average session duration increased has
2.7 times year-to-date to 4 minutes.
"We became the first bank to open a virtual cloud-based Development Hub that
brings together the most talented employees from different locations in
Russia and CIS.
"Our core operational and financial metrics demonstrated impressive growth
too: net loans grew by 30%, fee and commission income was up 90% accounting
for 30% of total revenue. As a result, net income for the third quarter grew
to RUB 7.3 bn, and for nine months to RUB 19 bn, both all-time highs in the
Group's history. This enabled us to upgrade our full year guidance both for
portfolio growth and net income."
FINANCIAL AND OPERATING REVIEW
RUB bn 3Q'18 3Q'17 Change 9M'18 9M'17 Change
Credits issued ('000 pcs) 660 660 - 1,700 1,530 +11%
Credit card 94.3 75.2 +25% 259.6 194.6 +33%
transactions
Net margin 14.9 12.2 +22% 43.1 33.1 +30%
Net margin after credit 11.8 10.0 +18% 33.7 26.5 +27%
loss allowance
Profit before tax 9.6 6.6 +44% 24.8 16.5 +50%
Net income 7.3 5.0 +44% 19.0 12.6 +51%
RUB bn 30 September 1 Jan 2018 Change
2018
Total Assets 322.0 259.3 +24.2%
Net loans and advances to 168.7 129.7 +30.0%
customers
Cash and treasury portfolio 119.5 96.5 +23.8%
Total Liabilities 284.4 227.1 +25.2%
Customer accounts 233.5 179.0 +30.4%
Total Equity 37.6 32.1 +17.0%
Tier 1 capital ratio 16.6% 17.7% -1.1pp
Total capital ratio 16.6% 17.8% -1.2pp
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November 26, 2018 02:01 ET (07:01 GMT)
