Statement on Tinkoff Bank's RAS Financial Highlights for January - April 2019

Statement on Tinkoff Bank's RAS Financial Highlights for January - April 2019

Moscow, Russia - 31 May 2019. 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 Tinkoff Bank's unaudited RAS financial highlights for January - April 2019.

For the four months of 2019, net income stood at RUB 9.5bn, which is attributed to the growth of net interest income, lower cost of funding, improved quality of the loan portfolio and growth of revenue from new business lines.

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. Therefore, RAS figures should not be used as the basis for conclusions on forthcoming IFRS results. 

The gross loan portfolio amounted to RUB 303bn representing an increase of 67% y-o-y. The net loan portfolio amounted to RUB 260bn having increased by 70% y-o-y and constituted 62% of total assets (53% at year-end 2018). 

Retail customer accounts stood at RUB 252bn. Tinkoff Bank continued to retain substantial liquidity: the CBR N2 ratio stood at 41% (minimum requirement: 15%), and the CBR N3 ratio was 118% (minimum requirement: 50%). Retail customer accounts constituted 72% of total liabilities.

Total assets increased by 45% y-o-y to RUB 420bn.

In April 2019, Tinkoff Bank paid dividends to its shareholder (TCSGH) in the amount of RUB 3.2 bn. As a result, total capital including retained profits (based on Form 123) amounted to RUB 75.6bn. as of 1 May 2019.  The CBR N1 capital adequacy ratio was 11.44%. Core Capital Adequacy Ratio (N1.1) was 8.21% and Main Capital Adequacy Ratio (N1.2) was 11.15%.

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. It includes Tinkoff Bank, mobile virtual network operator 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 12.4% as of 1 April 2019. The 1Q'19 IFRS net income of TCS Group Holding PLC amounted to RUB 7.2 bn, ROE stood at 64.4%.

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).