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TCS Group Holding PLC (TCS)
TCS Group Holding PLC Announces New Dividend Policy effective 1 April 2019
28-Dec-2018 / 17:26 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 Announces New Dividend Policy effective 1 April 2019
Limassol, Cyprus - 28 December 2018. TCS Group Holding PLC (TCS LI) (the
"Group"), Russia's leading provider of online retail financial and lifestyle
services via its Tinkoff.ru financial supermarket, announces today that the
Board of Directors has adopted a new dividend policy effective 1 April 2019.
The decision to adopt a new dividend policy was taken after due
consideration by the Group's Board of Directors of a number of factors,
including weighing the Group's need to continue to maintain healthy buffers
above the required capital ratios and thresholds, alongside the Group's
ambitions to support projected above-market loan portfolio growth in the
near and medium term and the Group's commitment to enhance total shareholder
returns, in an ever-tightening regulatory climate and potentially
significant risk weighting changes in Russia from 1 April 2019.
Oliver Hughes, CEO of Tinkoff Bank, commented: "We have always said that if
we need more capital to capture strong loan growth momentum while retaining
portfolio quality, then we would be prepared to reduce dividends. That time
has now come. We believe this is the right move for long-term sustainable
shareholder returns, as we balance dividend payments in the short-term with
new growth opportunities to increase future returns. The move by the
regulator was not unexpected - their preferred choice of instrument is RWA
and they have not hesitated to use it of late. Time will tell whether this
will have the desired effect, but we welcome this change because we believe
that it protects the market from irrational competition and protects the
consumer (who is also our customer).
Our loan growth is driven primarily by the growth of our customer base as we
continue to diversify our lending product range. We expect another strong
year in 2019 as we continue to execute on our 3-year plan realizing an
annual net income growth potential of 20-40%, as previously communicated."
The full text of the new dividend policy, as well as the current dividend
policy, can be found on the Group's website at
https://www.tinkoff.ru/eng/ir/corporate-governance/ [1].
For enquiries:
Tinkoff Bank Tinkoff Bank
Darya Ermolina Larisa Chernysheva
Head of PR IR Department
+ 7 495 648-10-00 (ext. 2009) + 7 495 648-10-00 (ext. 2312)
d.ermolina@tinkoff.ru ir@tinkoff.ru [2]
About the Group
TCS Group Holding PLC is an innovative provider of online retail financial
services. It includes Tinkoff Bank, mobile virtual operator network Tinkoff
Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of development
hubs in major Russian cities. The Group also has Tinkoff.ru, an evolving
ecosystem that offers financial and lifestyle services.
The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has
been listed on the London Stock Exchange since October 2013.
The Group's key business is Tinkoff Bank, the country's first and only
direct bank and the core of the Tinkoff.ru ecosystem.
Tinkoff Bank is the second largest player in the Russian credit card market,
with a share of 11.4%. The 9M 2018 IFRS net income of TCS Group Holding PLC
amounted to RUB 19 bn (a record high 9M net income in the Group's history),
ROE grew to 72.9%.
With no branches, the Group serves all its customers remotely via online
channels and a cloud-based call centre staffed by over 10,000 employees,
which makes it one of the largest in Europe. To ensure smooth delivery of
the Group's products, the Group has a nationwide network of over 2,500
representatives.
In 2018 Global Finance named Tinkoff Bank the world's Best Consumer Digital
Bank, in 2018, 2016 and 2015, the Best Consumer Digital Bank in Russia, and
in 2017 and 2013 The Banker recognised it as the Bank of the Year in Russia.
The bank's mobile app has been consistently praised by local and global
independent experts as the best of its kind (in 2013, 2014, 2015, 2016 by
Deloitte and in 2018 by Global Finance).
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.
Attachment
Document title: TCSGH Dividend Policy Effective 1 April 2019
Document: http://n.eqs.com/c/fncls.ssp?u=LCLBYWFFBT [3]
ISIN: US87238U2033
Category Code: MSCH
TIDM: TCS
LEI Code: 549300XQRN9MR54V1W18
Sequence No.: 7053
EQS News ID: 762475
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c1b2c2534827955c8f86a8553135e996&application_id=762475&site_id=vwd&application_name=news
2: mailto:ir@tcsbank.ru
3: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=71341a7276e65189cb22ea53277301c9&application_id=762475&site_id=vwd&application_name=news
(END) Dow Jones Newswires
December 28, 2018 09:26 ET (14:26 GMT)
