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TCS Group Holding PLC (TCS) TCS Group Holding PLC Posts Record High Net Income in 4Q and FY2018, Announces 1st 2019 Interim Dividend 12-March-2019 / 10:01 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 4Q and FY2018, Announces 1st 2019 Interim Dividend Limassol, Cyprus - 12 March 2019. TCS Group Holding PLC (TCS LI) (the "Group"), Russia's leading provider of online financial and lifestyle services via the Tinkoff.ru ecosystem, today announces its consolidated IFRS results for the fourth quarter and twelve months ended 31 December 2018. KEY FINANCIAL HIGHLIGHTS 4Q'2018 - Net margin up 24% y-o-y to RUB 16.1 bn (4Q'17: RUB 13.0 bn) - Profit before tax up 24% y-o-y to RUB 10.5 bn (4Q'17: RUB 8.5 bn) - Net income up 27% y-o-y to RUB 8.1 bn (4Q'17: RUB 6.4 bn) - a record quarterly net income for the Group - ROE increased to 81.2% (4Q'17: 63.1%) - Net interest margin at 21.8% (4Q'17: 24.5%) - Cost of risk at 4.2% (4Q'17: 2.7%) FY 2018 - Net margin grew by 29% y-o-y to RUB 59.2 bn (FY17: RUB 46.1 bn) - Profit before tax up 41% y-o-y to RUB 35.2 bn (FY17: RUB 25.0 bn) - Net income up 43% y-o-y to RUB 27.1 bn (FY17: RUB 19.0 bn) - a record annual net income for the Group - ROE grew to 74.7% (FY17: 52.8%) - Net interest margin at 23.2% (FY17: 25.3%) - Cost of risk at 6.0% (FY17: 5.5%) All balance sheet numbers and ratios as of 31 December 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 balance sheet numbers and ratios also reflect the adoption of IFRS 9 from 1 January 2018. - Total assets increased by 44.8% to RUB 375.5 bn (1 Jan'18: RUB 259.3 bn) - Gross loans and advances to customers up 40.8% to RUB 234.7 bn (1 Jan'18: RUB 166.7 bn) - Net loans and advances to customers up 53.0% to RUB 198.5 bn (1 Jan'18: RUB 129.7 bn) - Share of non-performing loans (NPLs) decreased to 9.4% (1 Jan'18: 13.4%) - Customer accounts increased by 56.9% to RUB 280.9 bn (1 Jan'18: RUB 179.0 bn) - Total equity increased by 31.5% to RUB 42.3 bn (1 Jan'18: RUB 32.1 bn) GUIDANCE FOR 2019 Following strong underlying growth in 2018, the Group is pleased to announce the following performance guidance for 2019: * net income of at least RUB 35 bn * net loan portfolio growth to be around 40% * cost of risk to be in the range of 6 - 7% * cost of borrowing to be in the range of 6 - 7% KEY HIGHLIGHTS FOR 2018 - In 2018 over 2.7 m new active credit customers were acquired, underpinning net loan growth of 53% - Tinkoff Bank's credit card market share stood at 11.8% at the end of 2018, strengthening its position as Russia's second largest credit card issuer - In April, Tinkoff Bank and NSPK (National Payment Card System) launched a joint project that enables Tinkoff customers to view card receipts details in their user accounts - Following the issue of a professional securities market participant licence in March, Tinkoff Bank re-launched its Tinkoff Investments brokerage platform in May, offering customers a breadth of new capabilities to enable faster and more technologically advanced securities trading - In June, Tinkoff piloted home equity loans - 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 wider choice 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 broadened its lifestyle offering by adding cinema tickets to its app, and now sells over 230,000 movie tickets per month - Following the acquisition of a stake in Kassir.ru, Tinkoff launched theatre and concert tickets via its app in November - 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 - Tinkoff Investments brought 285,000 new retail investors to the Moscow Exchange in 2018 which amounts to 40% of a total number of retail investments customers acquired by MOEX, more than any other brokerage according [1] to the exchange's data - In October, Tinkoff Bank joined forces with Mail.Ru Group, oneFactor, MegaFon, Sberbank and Yandex to set up the Big Data Association 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 - 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 cover 30 currencies - 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 - 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 KEY HIGHLIGHTS POST 2018 - In February, Tinkoff Bank was in the first wave of Russian banks to launch the Faster Payments System for its customers. The CBR introduced FSP to allow nationwide instant P2P payments using mobile phone numbers - In February 2019, Tinkoff Bank won four accolades at the Bank of the Year awards by Banki.ru, Russia's leading banking news portal. Tinkoff topped the 2018 list in the categories Investment Company of the Year, Online Mortgage Application, The People's Ranking of banks and The People's Ranking for mobile operators (Tinkoff Mobile) - Tinkoff mobile banking app has over 12 mn installs, MAU stands at 3.7 mn (95% growth compared to YE2017), DAU stands at 1.1 mn (120% growth compared to YE2017). FIRST 2019 INTERIM DIVIDEND ANNOUNCEMENT In line with the Group's current dividend policy, the Board of Directors on 11 March 2019 approved a first interim gross cash dividend for 2019 of USD 0.32 per share/GDR (with each GDR representing one share), with a total dividend payment of around USD 58.4 mn. Subject to London Stock Exchange regulations, indicatively the dividends will be payable around 25 March 2019, to those shareholders on the Group's register as at the record date of 22 March 2019. The ex-dividend date will be 21 March 2019. According to the terms of the GDR deposit agreement, holders of the Group's GDRs will receive their dividends within 5 business days of the payment date. The Group's new dividend policy announced on 28 December 2018 will take effect from 1 April 2019. Oliver Hughes, CEO of Tinkoff Bank, commented: "I am pleased to report that we've had another excellent year, ending 2018 on a high note. We achieved a new record in net profit for both the fourth quarter and the full year of RUB 8.1 billion for the quarter and RUB 27.1 billion for the year, beating our guidance. These strong results were driven by both credit and F&C business lines, as we continued to expand our financial and lifestyle ecosystem which now serves well over 8 million customers. In 2018, our non-credit business-lines generated over 30% of total revenue. As we press further into non-financial territory, we added cinema, theatre and concert tickets to our app, which are proving very popular with customers. Our growing range of non-financial lifestyle services is translating into greater customer loyalty and engagement. More and more people are starting to view Tinkoff as a guide and partner for their lifestyle needs, rather than just a banking app. As we ramp up Tinkoff Investments, we launched Tinkoff Investments Premium which offers access to over 10,000 global securities. Overall, Tinkoff Investments brought more new retail investors to the Moscow Exchange than any other player in 2018, as we were able to tap into demand from private individuals, a brand new group of investors for the Russian market. With the more distant future in mind, we also launched the Tinkoff Junior app in October, offering banking services to children and teenagers, while providing their parents with all the requisite controls for their children's accounts. Our current accounts for individual customers are continuing to grow quickly and remain the locomotive for growth of our ecosystem and lifestyle banking solutions. We opened 1.8 mn new current accounts last year. This was boosted by the introduction of a multi-currency platform which allows Tinkoff Black customers to keep their money in 30 currencies. Our credit business-lines are growing very well. A total of 2.7 m new credit accounts were opened in 2018 and net loans increased by 53% for the year, beating our guidance. While credit cards continued to perform steadily, the
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March 12, 2019 03:01 ET (07:01 GMT)
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