TCS Group Holding TiSiEs Group Holding

TCS Group Holding PLC (TCS LI) is an innovative online provider of retail financial services, which includes Tinkoff Bank, virtual mobile operator Tinkoff Mobile (Tinkoff Mobile), Tinkoff Online Insurance, as well as a network of development centers in the largest Russian cities "Tinkoff Development Center."

The Group has no retail branches: the company serves customers remotely through online channels and a contact center. For the delivery of products, the Group has built a network of representatives, which employs more than 2,500 people. The network covers the whole of Russia and allows the delivery of cards to most customers the day after the decision to issue.

Performance indicators

2023: Revenue growth by 33% to RUB 487.7 bln

At the end of 2023, the total revenue of the Tinkoff group amounted to 487.7 billion rubles. This is 33% more than in the previous year, when 366 billion rubles were received. Such data are given in the financial report published on March 14, 2024.

Net profit in 2023 reached 80.9 billion rubles. For comparison: in 2022, a profit of 20.8 billion rubles was demonstrated. Thus, almost 4-fold growth was recorded for this value. Non-lending activities accounted for 52% of revenue. The return on capital at the end of 2023 amounted to 33.5% against 10.9% in 2022.

The total revenue of the Tinkoff group amounted to 487.7 billion rubles

The report says that by the end of 2023, the total number of customers of the Tinkoff group amounted to 40.4 million, which is 32% more than in the previous year (approximately 30.7 million). At the same time, the number of active customers increased by 30% on an annualized basis and amounted to about 27.9 million people. The number of active application users per month (MAU) reached 28.2 million, up 25% from a year ago. The number of active application users per day (DAU) by the end of 2023 amounted to 12.7 million - plus 37% year-on-year.

In 2023, the group's loan portfolio crossed the milestone of 1 trillion rubles. At the same time, interest expenses increased by 12% compared to 2022 and amounted to 64.4 billion rubles - due to a significant increase in the client base and an increase in interest rates by the end of 2023. Net interest income increased by 60% on an annualized basis, amounting to 230.3 billion rubles. Commission income rose by 9%, reaching 128.1 billion rubles.

It is noted that the Tinkoff Pay payment service, which was launched in 2021, in 2023 became available for all smartphones based on Android and acted as an alternative to the Google Pay system, which stopped working in Russia due to the current geopolitical situation.^[1]

2022: Revenue growth by a third to 366.2 billion rubles

The revenue of TCS Group, which includes Tinkoff Bank, a virtual mobile operator, Tinkoff Insurance, Tinkoff Capital Management Company and Tinkoff Investments broker, amounted to 366.2 billion rubles in 2022, which is 34% more than a year earlier. Net profit in comparison with the same periods more than tripled - to 20.8 billion rubles. The group disclosed such data in mid-March 2023.

From the reporting of TCS Group it follows that in 2022 the group increased reserves for credit losses to 65.43 billion rubles from 21.67 billion rubles a year earlier. Net interest income of the group in 2022 amounted to 143.9 billion rubles against 132.56 billion rubles a year earlier. It is noted that such dynamics was due to an increase in the key rate of the Central Bank in the first half of 2022. According to the results of 2022, the loan portfolio grew by 0.024% and amounted to 606.46 billion rubles.

The bank showed a significant increase in expenses and losses across a range of operations. Thus, spending on reservation of possible losses on loans jumped three times, to 65.4 billion rubles. Other expenses on reserves reached 6.6 billion rubles. Net losses from the revaluation of derivatives amounted to 8.2 billion rubles against only 100 million rubles in 2021. Tinkoff also received a loss from the revaluation of securities, which are measured at fair value, of 7.2 billion rubles. A year earlier, this balance sheet item, on the contrary, was profitable for the bank (+ 7.5 billion rubles).

The main reason for the gradual decline in profits is the escalation of geopolitical tensions in Russia, the group said in a release: it affected the economic and operating environment and led to an increase in credit risks, volatility in financial markets and a curtailment of lending in the first and second quarters of 2022.^[2]

2021: Revenue growth by 40%, to 273.9 billion rubles

The revenue of TCS Group, the head structure of Tinkoff Bank, at the end of 2021 reached 273.9 billion rubles, which is 40% more than a year ago. Net profit during this time increased by 43%, to a record 63.4 billion rubles. The group released such data on March 4, 2022.

It follows from the reporting that the total loan portfolio of TCS Group increased by 52.9% since the end of 2020 and amounted to 684 billion rubles a year later. The volume of the loan portfolio minus reserves increased by 61%, to 606 billion rubles (as of December 31, 2020 - 377 billion rubles). The share of non-performing loans in the group's loan portfolio decreased to 8.6% (as of December 31, 2020 - 10.3%). The ratio of loan loss provisions to non-performing loans was 1.3.

The amount of funds in the accounts of TCS Group customers has grown by 50.9% since the end of 2020 and reached 946 billion rubles by the end of 2020. The total number of customers of the group by the end of 2021 reached 20.8 million against 13.3 million a year earlier.^[3]

The group's total assets by the end of 2021 amounted to 1.32 trillion rubles against 859 billion rubles a year earlier. Thus, the volume of assets for the year increased by 53.3%. Non-credit lines of business accounted for 46% of revenue and 26% of profit before tax. The annualized return on equity ratio increased from 40.6% to 42.5%.

We have sufficient ruble and foreign exchange liquidity, solid capital. We monitor the operational efficiency of our business every minute and have all the key security systems, protection and movement of our clients' funds and assets, "said Oliver Hughes, co-CEO of Tinkoff, commenting on the group's financial results. He added that high results in 2021 should help the group "navigate" in 2022.

The Group discloses that it may periodically and at any time redeem its outstanding debt in open market transactions, private transactions or other arrangements.

History

2024

Creation of own NPF

In early April 2024, it became known that Tinkoff had created its own non-state pension fund (NPF). It was named "Tinkoff Pension," according to the data of the Unified State Register of Legal Entities (Unified State Register of Legal Entities). Read more here.

Change of registration from Cypriot to Russian

The holding company of Tinkoff Bank changed its registration from Cypriot to Russian. The press service of the Far East Development Corporation (KRDV) announced this on February 26, 2024.

From the message of the KRDV it follows that the "TKS Holding Company" registered in a special administrative region (SAR) on Russky Island, becoming the first public structure to redomicile this territory. According to Nikolai Zapryagaev, CEO of KRDV, the parent company of the Tinkoff group will receive comfortable conditions for continuing effective work after the change of jurisdiction.

TKS Holding registered in a special administrative region (SAR) on Russky Island

The modernization of foreign structures of Russian companies in the ATS shows its effectiveness, allowing national companies not only to maintain public status and shareholder structure, but also to take into account the interests of all categories of investors - Russian and international, increasing the efficiency of corporate business governance, - commented the head of Tinkoff Stanislav Bliznyuk, adding that KRDV, the Bank of Russia and the Ministry of Economic Development of the Russian Federation helped to carry out the redomicitation of the company "extremely effectively and promptly."

The Far East and Arctic Development Corporation recalled that tax and administrative benefits apply for residents of the SAR, while the Russian economy receives additional capital due to the departure of companies from offshore. As of February 26, 2024, 70 companies participating in the ATS with assets of more than 5.5 trillion rubles operate on Russky Island under agreements with the KRDV, the KRDV said. They also noted that, in accordance with the agreement on the implementation of activities in the ATS, the TKS Holding Company will have to make investments in the amount of at least 50 million rubles, and after obtaining the status of an international holding company (MHK) - fulfill additional requirements.^[4]

Red Circle AG bought Aximetria

At the end of January 2024, it became known about the sale by the Tinkoff group of the Aximetria cryptocurrency service. The new owner of the platform was the Swiss consulting company Red Circle AG. Read more here.

2023

Reduction of the board of directors to 3 people

On November 21, 2023, TCS Group shareholders at the general annual meeting amended the company's charter, according to which the minimum number of directors was reduced to three people. At the same time, two votes became sufficient for the quorum when making key decisions.

The new board of directors of TCS Group includes Alexey Malinovsky, Daniel Wolf, and Tatyana Kuznetsova. At the same time, until 2022, the board of directors of TCS Group included 13 directors, 7 of whom were independent.

As the company explains, a change in the charter was needed to "ensure the permanent ability of the board of directors to work and achieve a quorum at any meeting." The amendment is justified by the current size of the board of directors, it will increase and ensure more timely and prompt decision-making, Tinkoff said.

Experts interviewed by RBC believe that changing the charter of TCS Group can simplify the procedure for changing the place of registration of the company from Cyprus to Russia or friendly jurisdiction.

Minimization of "resistance" or passive behavior (which is more likely to take into account the circumstances) not interested in a particular decision of the directors. A smaller quorum for decision-making on the part of directors means a greater likelihood of making this decision, including on the redomication of the business, "believes Akderli Legal partner Daniil Akderli, whose opinion is quoted by Kommersant.

He added that "such measures can be called insurance or preparatory," given the upcoming change of jurisdiction. Analysts of the company Aton"" believe that in relation to TCS, it can go according to a "tough scenario" and get into the perimeter of companies for which forced redomication is possible, which involves a special procedure for "moving" for economically significant companies.^[5]

Appointments of Alexey Malinovsky as Chairman of the Board of Directors

In mid-November 2023, Tinkoff announced the appointment of Alexei Malinovsky as chairman of the board of directors of the Cyprus holding TCS Group Holding (the parent structure of the Russian financial group). As head of the holding's board of directors, he replaced Konstantinos Economides. Read more here.

Creation of a leasing company

Tinkoff created a leasing company, which became known on April 13, 2023. The new legal entity was called "T-leasing." Read more here.

Tinkoff became the sole owner of the CloudPayments service

On January 23, 2023, it became known that Tinkoff became the sole owner of CloudPayments. Previously, the financial group founded by Oleg Tinkov owned 95% of the online acquiring service for online stores, businesses, microfinance organizations and charitable foundations, and the remaining 5% - Dmitry Spiridonov (he was the CEO of CloudPayments until mid-March 2022). Read more here.

2022

Acquisition of 35% stake in TCS Group Holding by Interros Group

Interros Group on April 28, 2022 announced the acquisition of a 35% stake in TCS Group Holding, the parent structure of the Russian Tinkoff Group. The transaction, the financial terms of which are not disclosed, has already received the approval of the Central Bank of the Russian Federation.

Interros, as a long-term financial investor, is interested in Tinkoff Group continuing to occupy a leading position in the Russian banking market, said Interros President Vladimir Potanin.

"We expect that the participation of Interros as a new shareholder in the capital, combined with the experience of the Tinkoff Group management team, will be a good impetus for the Group's further business and will create added value for all shareholders," the top manager added.

For his part, Oleg Tinkov, founder of the Tinkoff Group, noted that it was "time for him to retire and engage in health and family."

"I am proud to have built the best bank in from scratch with my team. to the country The consensus in our industry is the best digital bank in the world and founded in," Russia he stated.

According to Stanislav Bliznyuk, Chairman of the Board of Tinkoff, the deal with Interros opens a new page in the history of the Tinkoff Group.

The new shareholder is interested in maintaining the high performance of the group, its management team and the unique DNA of Tinkoff, which has always been led by the client first approach. Our management remains committed to the values ​ ​ of Tinkoff and is motivated by the long-term development of the Group's business, further growth of its capitalization, "concluded the top manager of Tinkoff.

Transfer of Russian business to the management of the local team against the background of Russia's special operation in Ukraine and EU sanctions

On April 7, 2022, the board of directors of TCS Group Holdings Plc, which owns a 100% stake in Tinkoff Bank, decided to transfer shareholder control over the group's Russian business to the management company controlled by the Russian management team of Tinkoff Bank, headed by the bank's CEO Stanislav Bliznyuk. The decision was made in the wake of similar transactions by other companies forced to carry them out during the special operation of Russia in Ukraine and the subsequent sanctions of the United States, the EU and Britain.

Acquisition of Aximetria Service for Digital Asset Operations

On January 12, 2022, the international investment company Digital Horizon announced TAdviser the sale to the Tinkoff Group (Tinkoff Group, TCSGH) of its portfolio company - Aximetria Swiss financial a service for operations with. digital assets Read more. here

2021

Pavel Fedorov - the new executive director of TCS Group

Tinkoff established a subsidiary in Singapore to develop a new market - it was called Tinkoff Global PTE. The bank announced this on January 12, 2022. Read more here.

Acquisition of 51% stake in Just Luke

Tinkoff Group on November 26, 2021 announced to TAdviser that it had acquired a controlling stake (51%) in Just Luk, the developer of a fintech service for automating settlements and interacting with freelance performers Jump.Finance. The commercial terms of the agreement were not disclosed. Read more here.

Tinkoff Group will receive a full-fledged banking license in the Philippines

On November 22, 2021, it became known about the decision of the Tinkoff group to obtain a full-fledged banking license in the Philippines instead of launching a digital bank, which was planned earlier.

We are applying for a full commercial banking license. This path was offered to us by the Central Bank of the Philippines. We are in constant dialogue with the regulator of this country on how to move on, "a company representative told Interfax.

In August 2021, Tinkoff announced plans to open a subsidiary credit institution in the Philippines. To do this, he applied for a digital bank license. In a conversation with Interfax, a company representative noted that such a license is only one of the ways to enter the Philippine market.

In September 2021, the board of directors of Tinkoff Bank approved the creation of a Philippine subsidiary with a capital of 3 billion Philippine pesos (about $59.8 million, or 4.4 billion rubles). It is expected that the initial capital at the time of registration of the subsidiary will amount to 2 billion Philippine pesos ($39.9 million, or 2.9 billion rubles).

On November 24, 2021, Tinkoff will publish its third quarter financial statements. On this day, according to analysts at SberCIB Investment Research, investors will wait for information about the expansion of the group's business outside Russia, "especially after it failed to obtain a digital bank license in the Philippines."

Earlier, a member of the Board of Directors of TCSPavel Fedorov spoke about plans to enter the markets of several countries of Southeast Asia.

The Philippines is one of the promising markets, we are also looking at one or two other markets in Southeast Asia. And where we have a high probability of obtaining a full banking license, it will be supplemented by our side and a brokerage license, we will direct our attention and efforts there, "he explained.[6]

Pavel Fedorov - the new executive director of TCS Group

On November 8, 2021, TCS Group announced the appointment of Pavel Fedorov as the second executive director (co-CEO) of the company. Previously, Oliver Hughes held this position alone. Read more here.

Exit from Кассир.ру capital, sale of stake to Evgeny Finkelstein

As it became known on July 20, 2021, Tinkoff left the capital of Кассир.ру, selling the share to the main owner of the ticket operator Yevgeny Finkelstein. This was reported by Interfax with reference to the data of the SPARK-Interfax system. Read more here.

Entry into the authorized capital of the St. Petersburg Stock Exchange

Tinkoff Group and the NP RTS Association, the main shareholder of the St. Petersburg Exchange, signed a memorandum of cooperation on June 4 and agreed to sell the shares of the St. Petersburg Exchange by NP RTS in the amount of no more than 7.5% of the authorized capital. This was announced on June 4, 2021 by TAdviser at TCS Group Holding. Read more here.

Purchase of service for storage of bank and discount cards "Wallet"

On April 29, 2021, Tinkoff announced the purchase of a controlling stake in Beskontakt, which develops a service for storing and banking cards Wallet. Its participants did not disclose the financial side of the already closed transaction. Read more here.

2020

Revenue growth by 21% to 195.8 billion rubles.

On March 11, 2021, TCS Group Holding PLC, an online provider of retail financial and non-financial (lifestyle) services in Russia based on the Tinkoff ecosystem, told TAdviser consolidated financial results under IFRS for 2020.

In 2020, the Group's total revenue increased by 21% compared to 2019 and amounted to RUB 195.8 billion (in 2019 - RUB 161.9 billion)

Despite all the difficulties of the pandemic year, in 2020 a record was set for net profit: it exceeded our annual forecast and amounted to 44.2 billion rubles. Tinkoff quickly adapted to changes in consumer preferences, which contributed to the further growth of both credit and all other business areas, "commented Oliver Hughes, Chairman of the Management Board of Tinkoff Group. - We managed to maintain high growth rates: the total number of customers for the year increased from 10.2 million to 13.3 million people. Thanks to this, Tinkoff has strengthened its position as the third largest bank in the country in terms of the number of active customers and the leading online bank in the financial sector. This gives confidence that over the next three years the customer base will grow to over 20 million people. Despite strong customer base growth, the average number of products per user increased from 1.3 at the end of 2019 to 1.4 at the end of 2020.

According to Oliver Hughes, non-related activities - crediting current accounts based on the Tinkoff Black debit card, brokerage platform, Tinkoff Investments Tinkoff Business and Tinkoff Acquiring - have reached their next heights. Compared to 2019, the revenue of these areas increased by 47% and amounted to 73.0 billion rubles (or 37% of revenue in the Group as a whole), and profit before tax amounted to 20.6 billion rubles (or 37% of revenue in the Group as a whole), an increase of 2.5 times. The format of presentation of financial by information key business segments has been expanded, and now information on each of them can be seen in full detail.

In 2020, Tinkoff Black's revenue increased by 41% compared to 2019 and amounted to 21.2 billion rubles. In 2020 alone, the total number of Tinkoff Black cardholders increased by 2.9 million people - from 4.7 million to 7.5 million, while the pace is only accelerating.

The total number of clients of the Tinkoff Investment brokerage platform by the end of 2020 exceeded 1.25 million people, and revenue increased more than eightfold to 8.1 billion rubles. In December 2020, more than 60% of all active traders on the Moscow Exchange were clients of the Tinkoff brokerage platform.

In 2020, Tinkoff Business's revenue reached 11.5 billion rubles, pre-tax profit increased to 5.6 billion rubles. Compared to 2019, the growth was 17% and 71%, respectively. We are increasingly focused on serving medium-sized businesses, which is facilitated by solutions such as online accounting, tax reporting and reporting, site designers, CRM systems, etc.

In 2020, Tinkoff Acquiring's revenue reached 11.2 billion rubles, and profit before tax - 2.3 billion rubles. Compared to 2019, the growth amounted to 33% and 79%, respectively, which is explained by the acceleration of the pace of introduction of online commerce and the growing popularity of the C2B payment service among legal entities.

Despite the difficult economic situation, the credit business also grew: the total loan portfolio of the Group increased by 16.0% since the end of 2019 and amounted to 445.5 billion rubles (as of December 31, 2019 - 383.9 billion rubles). The Group's loan portfolio, net of reserves, grew by 14.4% to RUB 376.5 billion (31 December 2019: RUB 329.2 billion). The total number of customers with credit products increased to 6.9 million people, and the volume of loans minus reserves showed an increase of 14% even though the conservative approach to lending remained. As of January 1, 2021, the share in the Russian market of short-term retail loans increased to 8.6%.

In 2020, the trajectory of profitable growth remained, while the return on capital remained above 40%, concluded Oliver Hughes, Chairman of the Management Board of Tinkoff Group.

For his part, Senior Vice President for Business Development Stanislav Bliznyuk added that in 2020, Tinkoff Pro was launched - a financial subscription that allows customers to use the products and privileges of the Tinkoff ecosystem and its partners on special terms. With regard to this product, the company has distant goals: it is designed to help retain customers and increase their loyalty. At the end of 2020, the number of Tinkoff Pro subscribers has already exceeded 150,000 people.

Thanks to the ongoing work to develop support and integration of the Tinkoff ecosystem in 2020, the company has become the largest operator of the Fast Payment System (FPS) of the Bank of Russia, Stanislav Bliznyuk said.

Tinkoff Mobile presented version 2.0 of Oleg's voice assistant, in which subscribers can create a personal telephone secretary with individual skills and parameters, including choosing his voice and name.

These and many other solutions, taken together, allowed us to increase the number of active users per month (MAU) for all our main applications from 6.0 million to 9.3 million people, "concluded Stanislav Bliznyuk, Senior Vice President for Business Development.

The share of non-performing loans in the Group's loan portfolio increased to 10.4% (9.1% as at 31 December 2019). The ratio of loan loss provisions to non-performing loans was 1.5.

The amount of funds in the accounts of the Group's clients increased by 52.3% since the end of 2019 and reached 626.8 billion rubles (as of December 31, 2019 - 411.6 billion rubles).

Due to high net profit, the volume of own funds for the year increased by 32.2% and at the end of 2020 amounted to 127.0 billion rubles. (as of December 31, 2019 - 96.1 billion rubles), despite four payments of interim dividends (total of $0.80/GDR) for 2020. As of January 1, 2021, the capital adequacy indicator according to the N1.0 standard of the Central Bank of the Russian Federation amounted to 13.1%, according to the N1.2 standard - 12.4%, and according to the N1.1 standard - 10.2%.

In accordance with the dividend policy of the Group, the Board of Directors approved the first payment of interim dividends in cash for 2021 in the amount of $0.24. US per share/GDR (one GDR corresponds to one common share).

Given the gradual recovery in economic activity and strong results for 2020, the Group reported a forecast for 2021:

• net loan portfolio growth - more than 30%;
• risk cost - 7-8%;
• the cost of funding - about 3-4%;
• share of non-bank income - more than 40% of total revenue;
• net profit - at least 55 billion rubles.

The Group also plans to temporarily suspend dividend payments until the end of 2021 as it continues to explore opportunities for organic and inorganic business development. Management is confident that if it invests capital in additional growth, it will be the best guarantee of the sustainability and profitability of the business in the future.

Capitalization $6.3 billion

Oleg Tinkov sold Tinkoff shares for $325 million

On December 11, 2020, TCS Group announced the sale of a 5.3% stake in the company owned by Oleg Tinkov. Part of the proceeds from the transaction of the funds of the Russian entrepreneur spend on the creation of a new charitable foundation, as well as the "settlement of personal legal problems." Read more here.

Oliver Hughes sells $14m in global depositary receipts to TCS Group

On November 23, 2020, TCS Group announced that the chairman of the board of Tinkoff Bank Oliver Hughes sold global depositary receipts (GDR) of the group in the amount of about $14 million. Read more here.

Yandex changed its mind about buying Tinkoff Bank

On October 16, 2020, it became known that Yandex and TCS Group (Tinkoff) stopped negotiations on the possible purchase by Yandex of 100% of Tinkoff's share capital.

Unfortunately, Yandex failed to agree on the final terms of the transaction with the main shareholders of Tinkoff, in connection with which the parties made a mutual decision to end the negotiations. We thank the Tinkoff team for their productive joint work in the negotiation process, - noted in the text of the Yandex message.

Read more here.

Agreement on the sale of Yandex

Yandex has previously agreed to purchase TCS Group (the head structure of Tinkoff Bank). Information about this was published on September 22 on the website of the London Stock Exchange^[7]. As noted, the transaction can be paid for with money and shares of Yandex. Read more here.

Plans to move to headquarters at AFI Square Business Centre

On June 4, 2020, Tinkoff Group announced to TAdviser that it had signed an agreement with the development company AFI Development on a long-term lease of the AFI Square business center under construction in Moscow, which will house Tinkoff's headquarters.

The office building of the business center with an area of ​ ​ more than 90 thousand square meters will be built in the first half of 2022 on the street. Georgian Val, 200 meters from the Belorusskaya metro station. This headquarters of Tinkoff will unite in one place the key divisions of the Group - Tinkoff Bank (including Tinkoff Business and Tinkoff Investments), Tinkoff Insurance, Tinkoff Mobile, Tinkoff Education, Tinkoff Travel, Tinkoff Development Center (with the exception of regional branches), etc.

More than 6 thousand people will be able to work at the headquarters of Tinkoff in AFI Square at the same time. The office is designed as a convenient and modern space for the technology team - taking into account the opportunity for employees to work remotely at any time, with an easily transformable and wider seating area, comfortable recreation areas, etc.

Tinkoff Group is growing and developing as one huge ecosystem. We had long been looking for a home for us to live and work in and finally found it in AFI Square. Our future headquarters will be located in a convenient place in the center of Moscow. But this will not be an office in the usual sense of the word. We are a technology company accustomed to flexible remote work. Therefore, we will make for ourselves not a place for compulsory work, but a "place of strength" - a space for creativity, team meetings, working and personal communication, exchange of experience and ideas, training and development, sports and recreation. It will be a great place for young talent, analysts, developers, data scientists, designers and other professionals, in which fintech ideas will be born. By the way, our employees will choose the name for our house on their own - we will hold a special vote, says Oliver Hughes, Chairman of the Board of Tinkoff.

Our company strives to implement technological solutions used in the construction of modern office buildings in the capitals of the world. We understand that the business center is an important object of the urban environment, especially if it is located in the very center of the capital. Therefore, it is important to minimize its impact on the environment and urban environment, while adapting the building for employees. Our projects take into account the ergonomics of internal spaces, indoor air quality, temperature comfort for employees, acoustics... That is, they make the building as optimized and comfortable as possible for people working here. And the choice by the Tinkoff group of our AFI Square business center showed that a socially responsible business chooses just such buildings to accommodate its headquarters, comments AFI Development CEO Mark Groysman.

2019

Net profit growth by 33.21% to 36.1 billion rubles

TCS Group Holding PLC, online provider retail financial and non-financial (lifestyle) services Russia based on the Tinkoff ecosystem, on March 11, 2020 shared TAdviser with the financial results for IFRS 2019.

According to the company, in 2019, the yield on the loan portfolio decreased to 32.1% as a result of a decrease in reference rates and regulatory restrictions. The yield on the securities portfolio fell to 6.4%. Due to the growth of the customer base, non-lending business lines are performing well, and their share in the Group's revenue structure has exceeded 36%.

Net profit for 2019 increased by 33.21% and amounted to 36.1 billion rubles. (for 2018 - 27.1 billion rubles), as a result of which the return on capital for 2019 was recorded at 55.9% (for 2018 - 74.7%). Net margin for the reporting period increased by 43% compared to 2018 and amounted to 86.8 billion rubles. (in 2018 - 60.5 billion rubles).

At the end of 2019, the Group retained the following balance sheet indicators: total assets grew by 54% since the beginning of the year and reached RUB 579.5 billion (as of December 31, 2018 - RUB 375.5 billion).

The total loan portfolio of TCS Group Holding increased by 63.6% and amounted to 383.9 billion rubles. (as of December 31, 2018 - 234.7 billion rubles). The Group's loan portfolio, net of reserves, grew by 66% to RUB 329 billion (31 December 2018: RUB 198.5 billion).

The share of non-performing loans in the Group's loan portfolio rose to 9.1%, mainly due to the slowdown in the loan portfolio growth rate in 2019 Q4; at the same time, the ratio of provisions for possible losses on loans to the volume of non-performing loans remained at the same level of 1.6.

The amount of funds in the accounts increased by 47% and reached 412 billion rubles. (as of December 31, 2018 - 280.9 billion rubles).

The volume of own funds increased by 127% and amounted to 96 billion rubles. (as of December 31, 2018 - 42.3 billion rubles). As of January 1, 2020, the capital adequacy indicator according to the N1.0 standard of the Central Bank of the Russian Federation decreased to 12.1%, and according to the N1.2 standard - to 11.7%. The N1.1 standard remained at a comfortable level for the Group of 9.5%.

{{quote 'author
= Oliver Hughes, Chairman of the Management Board' In
2019, 4.3 million customers for credit products were attracted, and the volume of loans minus reserves increased by 65.8% even though we maintained a conservative approach to lending. As for current accounts, the growth was 57%: the popularity of our ecosystem of financial and non-financial services led to the fact that in 2019 the Group serviced current accounts of 7.1 million customers. The Tinkoff Investments service has achieved the following: in 2019, with its help, more than 800,000 new retail investors entered the Moscow Exchange. We also decided to launch an exchange-traded investment fund (ETF) without commissions through our own management company Tinkoff Capital. Work on technological innovations continued: Tinkoff presented the application as the next step in the development of the ecosystem. Users of the Tinkoff application will be able to solve through it almost any task in the field of finance, leisure and lifestyle - to make an appointment with a doctor, book a table in a restaurant or make a bank transfer in just a few clicks. In 2019, the return on equity was 55.9%. By expanding the range of financial and non-financial services, we consistently focus on profit. In 2020, one of the defining events within our marketing program has already taken place: Tinkoff became the title sponsor of the Russian Premier Football League.}}

As of the end of 2019, the Group provided services to:

• current accounts of more than 7.1 million customers, while the total amount of money in these accounts amounted to 211.7 billion rubles.,
• over 535,000 SME customers, with a total cash balance of RUB 60.2 billion in their accounts,
• 1125,000 brokerage accounts opened on Russian exchange sites through the Tinkoff Investments service.

Based on 2019 results, TCS Group Holding announced the following forecast for 2020:

• expected net growth of the loan portfolio - at least 20%;
• the expected risk cost is approximately 9%;
• the expected cost of funding is approximately 6%;
• expected net profit - at least 42 billion rubles.

On March 10, 2020, the Board of Directors decided to resume dividend payments and approved the first payment of interim dividends in cash for 2020 in the amount of $0.21. US per share/GDR (one GDR corresponds to one share) totalling approximately $42 million . UNITED STATES). In accordance with the requirements of the London Stock Exchange, the payment of dividends to shareholders registered in the Group's shareholder register as of March 27, 2020 will take place approximately on March 30, 2020.

The date of formation of the list of persons entitled to receive dividends is March 26, 2020.

Start of trading in global depositary receipts on the Moscow Exchange

On October 28, 2019, the Moscow Exchange launched trading in TCS Group global depositary receipts (GDR). This listing is expected to enable Russian institutional and private investors not represented in London to acquire the company's securities and increase their liquidity.

The opening price of one depositary receipt amounted to 1188.6 rubles, during the trading the security has already risen by almost 2% to the opening price - up to 1212 rubles, follows from the dynamics of trading on the Moscow Exchange. On October 25, 2019, on the London  Stock Exchange at the close of trading, one GDR cost $18.32.

We see a tendency that Russian companies with a foreign listing come to the Moscow Exchange and thus expand the circle of their investors, increase the liquidity of securities, create conditions for the growth of capitalization, "says Oleg Vyugin, chairman of the supervisory board of the Moscow Exchange. - The Moscow Exchange is the main platform for pricing Russian assets, equally convenient for both international and domestic investment funds and more than three million private investors.

This listing will become secondary to the group - TCS receipts have been traded on the London Stock Exchange since 2013. Since 2016, the GDR of Oleg Tinkov's holding can be bought and sold through the St. Petersburg Exchange, which specializes in the securities of foreign issuers: these receipts have been listed, but are not included in the quotation lists.

The company's financial adviser on the secondary listing of GDR TCS Group Holding on the Moscow Exchange is Renaissance Capital Investment Company.

According to analysts, Gazprombank the listing of GDR TCS Group in the local market will be a strong catalyst for the growth of quotations in the short term due to the expected high demand for the company's securities.

Contract with Wainbridge to lease office in BC Aquatoria

Tinkoff Group and the international development company Wainbridge on June 7, 2019 signed an agreement of intent to conclude a long-term lease agreement for office space in the Aquatoria business center, located on the banks of the Moscow Canal at 69 Leningradskoye Shosse, from 2022. Read more here.

2018

Net profit growth by 43% to 27.1 billion rubles

On March 12, 2019, TCS Group Holding PLC (TCS LI) (the "Group"), an online provider financial and non-financial services Russia entity based on the Tinkoff.ru ecosystem, provided consolidated financial results for the IFRS 12 months ended December 31, 2018.

• Net margin increased by 29% compared to 2017 and amounted to 59.2 billion rubles. (in 2017 - 46.1 billion rubles.)
• Profit before tax increased by 41% to RUB 35.2 billion (in 2017 - RUB 25.0 billion)
• Net profit increased by 43% compared to 2017 to RUB 27.1 bln (in 2017 - RUB 19.0 bln) - a high value of net profit for the year in the history of the Group
• Return on equity increased to 74.7% (52.8% in 2017)
• Net interest margin was 23.6% (in 2017 - 25.3%)
• The risk cost was 6.0% (in 2017 - 5.5%)

All of the following balance sheets and ratios as at 31 December 2018 are compared to the corresponding balance sheets and ratios as at 1 January 2018 and prepared in accordance with IFRS 9. All changes in the compared balance sheets and ratios are calculated taking into account the transition to IFRS 9 from January 1, 2018.

• Total assets grew by 44.8% and reached 375.6 billion rubles. (as of January 1, 2018 - 259.3 billion rubles.)
• The total portfolio volume credit increased by 40.8% and amounted to 234.7 billion rubles. (as of January 1, 2018 - 166.7 billion rubles.)
• The volume of loans minus reserves increased by 53% and amounted to 198.5 billion rubles. (as of January 1, 2018 - 129.7 billion rubles.)
• The share of non-performing loans (NPLs) in the loan portfolio decreased to 9.4% (as of January 1, 2018 - 13.4%)
• The amount of funds in customer accounts increased by 56.9% and reached 280.9 billion rubles. (as of January 1, 2018 - 179.0 billion rubles.)
• The volume of own funds increased by 31.5% and amounted to 42.3 billion rubles. (as of January 1, 2018 - 32.1 billion rubles.)

Forecast for 2019

Taking into account the strong results for 2018, the Group announces the following forecast for 2019:

• expected net profit - at least 35 billion rubles.
• expected net loan portfolio growth - about 40%
• expected risk cost - 6 - 7%
• expected cost of funding - 6 - 7%

Key events in 2018

• In 2018, more than 2.7 million new active credit card customers were attracted, which ensured the growth of the loan portfolio minus reserves by 53%
• Tinkoff Bank's share in the credit card market as of the end of 2018 amounted to 11.8%. The Bank continues to strengthen its position as the second largest player in the Russian credit card market

Announcement of first 2019 interim dividend payment

On March 11, 2019, the Board of Directors approved the first payment of interim dividends in cash for 2019 in the amount of $0.32. US per share/GDR (one GDR corresponds to one share) totalling approximately $58.4 million. UNITED STATES. The decision was made in accordance with the Group's current dividend policy. In accordance with the requirements of the London Stock Exchange, the payment of dividends to shareholders, registered in the Group's shareholder register as of 22 March 2019, will take place approximately March 25, 2019. Date of formation of the list of persons, entitled to receive dividends - 21 March 2019 The payment of dividends to the holders of the Group's GDRs under the terms of the depositary agreement will take place within 5 business days after the date of payment of dividends on the shares.

The Group's dividend policy, which was announced on December 28, 2018, will take effect on April 1, 2019.

{{quote 'author = Oliver Hughes, Chairman of the Management Board of Tinkoff Bank|I am pleased to announce that the Group has once again performed well in 2018. We reached the next record for net profit for the full year of 27.1 billion rubles, thus surpassing our own forecast.

We managed to ensure such indicators both at the expense of credit and at the expense of commission business. At the same time, we continued to develop the ecosystem, within which we offer financial and life-style services: as of March 2019, it has over 8 million customers. In 2018, non-lending activities accounted for more than 30% of the Group's total revenue.

The number of current accounts of individuals in the bank is still growing rapidly: they form the basis for the growth of our ecosystem and solutions in the field of lifestyle banking. In 2018, we opened 1.8 million current accounts. This was facilitated by the launch of a multi-currency platform that allows Tinkoff Black customers to hold savings in 30 different currencies.

Our credit business is also experiencing continued growth. In 2018, we opened 2.7 million accounts for credit products. The volume of loans minus reserves for the year increased by 53%, which is higher than the forecast. As the direction of credit cards shows stable results, the share of other credit products, such as consumer loans, POS loans, car loans and loans secured by residential real estate, increased to 26.9% of the total loan portfolio minus reserves by the end of 2018. At the same time, the cost of funding decreased from 7.6% in 2017 to 6.1% in 2018; Risk cost in annual terms in 2018 amounted to 6.0%.}}

TCS Group bought a stake in Кассир.ру

TCS Group Holding PLC (TCS LI), an online provider of retail financial services in Russia based on the Tinkoff.ru platform, on July 16, 2018 announced the acquisition of a stake in the Кассир.ру group of companies. Read more here.

Oleg Tinkov will buy out the GDR TCS Group Holding for $20 million

TCS Group Holding PLC (TCS LI), an online provider of retail financial services in Russia, on June 29, 2018 announced that it had received a notification from the founder and holder of a controlling stake in the group Oleg Tinkov about plans to increase its stake in it.

According to the TCS statement, Oleg Tinkov plans to buy out the group's GDRs (Global Depositary Receipt, GDR) in the amount of up to $20 million. As of June 25, 2018, Oleg Tinkov has already acquired about 440 thousand. GDRs in the amount of $9.2 million

At the same time, in June, the group received a notice of buyback transactions made by another person performing management functions (PDMR) - Anatoly Makeshin, Deputy Chairman of the Board, Director of Tinkoff Bank Payment Systems.

According to representatives of TCS Group Holding, these actions confirm the confidence of the controlling shareholder and the group's management in the consistently positive dynamics of its indicators and the further growth of areas of activity launched as part of the development of the financial ecosystem Tinkoff.ru.

2013

Since October 2013, TCS Group Holding PLC has been trading on the London Stock Exchange.

2016

TCS Group Holding PLC was founded in 2006 by entrepreneur Oleg Tinkov.

Notes