DJ TCS Group Holding PLC releases highlights for 3Q'22 and 9M'22 performance
TCS Group Holding PLC (TCS) TCS Group Holding PLC releases highlights for 3Q'22 and 9M'22 performance 23-Nov-2022 / 10:37 MSK Dissemination of a Regulatory Announcement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
LIMASSOL, CYPRUS - 23 November 2022. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
TCS Group Holding PLC releases highlights for 3Q'22 and 9M'22 performance
LIMASSOL, CYPRUS - 23 November 2022. TCS Group Holding PLC (LI: TCS, MOEX: TCSG) ("Tinkoff", "We", the "Group", the "Company"), a leading provider of online financial and lifestyle services via its Tinkoff ecosystem, today announces key performance metrics and trading update for the three months and nine months ended 30 September 2022.
The Tinkoff team continues to work hard keeping our customers' needs in our primary focus, while actively adapting our existing products to changing market conditions and evolving consumer behaviour. The Group's diversified and flexible business model has proven through the years to be highly adaptable to new challenges and opportunities. We continue to actively monitor external environment and customer level data while making our day-to-day decisions, and remain confident in our ability to successfully navigate changing environment.
The number of Tinkoff customers continues to grow organically and exceeded 26 million in 3Q'22. Despite sector wide earnings headwinds, Tinkoff has been able to deliver a positive financial result both in 3Q and 9M 2022. The Group continues to maintain a significant liquidity cushion and ample capital buffers, which will enable it to further adapt to the changing environment and capture growth opportunities as they arise.
KEY PERFORMANCE METRICS
Y-o-Y Q-o-Q
Key metrics, mn 3Q'22 3Q'21 2Q'22
Change, % Change, %
Total customers 26.3 18.5 24.3 42% 8%
Active customers 18.3 12.8 17.3 43% 6%
Monthly active users (MAU) 20.6 13.7 19.5 50% 6%
Daily active users (DAU) 8.7 4.8 7.5 79% 16%
FINANCIAL AND OPERATING REVIEW
RUB bn 3Q'22 3Q'21 - 2Q'22 - 9M'22 9?'21 -
Interest income 50.9 42.9 19% 52.2 -2% 152.6 118.0 29%
Interest expense -13.2 -7.3 82% -21.5 -38% -46.5 -19.0 144%
Net interest income 36.7 34.8 5% 29.7 24% 103.1 97.1 6%
Fee and commission income 27.8 22.4 24% 32.2 -14% 96.2 58.5 64%
Fee and commission expense -9.1 -10.3 -12% -8.7 5% -31.7 -27.2 17%
Net fee and commission
18.7 12.1 54% 23.5 -21% 64.5 31.3 106%
Income
Total operating expenses -34.1 -25.8 32% -31.9 7% -97.3 -70.2 39%
Profit before tax 9.1 20.7 -56% 4.2 115% 15.1 59.1 -74%
Profit for the period 5.9 16.5 -64% 3.0 96% 10.1 46.8 -78%
Balance Sheet,
30.09.2022 30.06.2022 - 31.12.2021 - 30.09.2021 -
RUB bn
Loans and advances to
584 584 0% 606 -4% 556 5%
customers*
Customer accounts 961 983 -2% 946 2% 777 24%
*Net portfolio
Our total customer base continued to grow steadily and reached 26.3 mn in 3Q'22. Once again it underscores the attractiveness of our daily banking and lifestyle ecosystem and lays the foundation for further cross-sell of our expanding products (including credit ones) in line with our customer acquisition strategy.
In 3Q'22, the Group's total revenue grew materially showing strong double-digit percentage growth year-on-year, supported by continuous customer base expansion.
Interest income increased by 19% year-on-year to RUB 50.9 bn in 3Q'22 (3Q'21: RUB 42.9 bn), driven by the higher base of our loan portfolio helped by 2021 expansion, increase of the customer base and expansion of the credit product range.
Gross loan interest yield decreased slightly year-on-year following trend of the previous years. The interest yield on the Group's securities portfolio slightly increased due to higher rates in bond and money markets.
In 3Q'22, interest expense rose by 82% year-on-year to RUB 13.2 bn (3Q'21: RUB 7.3 bn), driven by a marked increase in our cost of borrowing, owing to the monetary policy environment, as well as an expanded base of the customer funds.
In 3Q'22, net interest margin experienced a low single-digit decline in percentage points terms year-on-year, primarily driven by higher funding costs and more liquid composition of the balance sheet.
Fee and commission income increased by 24%% year-on-year in 3Q'22 to RUB 27.8bn (3Q'21: RUB 22.4bn), supported mainly by the continued growth of our retail and SME banking businesses. At the same time, fee and commission expense declined by 12% year-on-year in 3Q'22 to RUB 9.1 bn (3Q'21: RUB 10.3 bn) due to lower payment systems costs.
Cost of risk increased materially year-on-year in 9M'22 owing to conservative macro-related provisioning and was close to our long-term average level of around 10%.
In 3Q'22, our total operating expenses increased 32% y-o-y to RUB 34.1 bn (3Q'21: RUB 25.8 bn) driven by our continued investment into our IT talent and capability to support our growing product range and customer base. Our customer acquisition expenses were broadly stable despite growing customer base as we significantly rationalised our marketing and advertising spend.
Our non-credit business lines continue to deliver an increasing share of our revenue and bottom line thanks to growth of the customer base, our widened range of product offerings and continued monetisation efforts.
The Group remained profitable in 9M22 with net profit of RUB 10.1 bn (9M'21: RUB 46.8 bn). In 3Q'22 our net profit was RUB 5.9 bn (3Q'21: RUB 16.5 bn), decreasing 64% year-on-year, primarily impacted by growth in funding costs and conservative provisioning.
In 3Q'22, the Group maintained a healthy balance sheet with stable total assets compared to the end of 2021.
In 3Q'22, the net loan book decreased by 4% YTD to RUB 584 bn (31 Dec'21: RUB 606 bn). The Group's customer accounts increased by 2% YTD to RUB 961 bn (31 Dec'21: RUB 946 bn).
The Group's capital position remained strong, with Basel III CET1 ratio being stable year-on-year. In 3Q'22, all statutory capital requirements were met with healthy buffers.
The Group aims to continue to honor its obligations to bondholders subject to regulatory constraints.
3Q'2022 REPORTING PERIOD OPERATING HIGHLIGHTS
-- The Group had over 21.9 mn total Tinkoff Black customers as of 1 October 2022.
-- In July, Tinkoff launched universal Tinkoff ID. The service provides quick and secure authentication andunified access to any service on the Russian Internet. Tinkoff ID enables users to securely, quickly, andseamlessly log in to various services across the Russian Internet, without entering a login or password.
-- In July, Tinkoff Capital launched a closed-end fund for investing in residential real estate at the stageof commencement of construction, with the aim of selling the properties on once they become operational.
-- In August, Tinkoff launched Tinkoff Neuro Shield, a security platform for Tinkoff Bank and Tinkoff Mobilecustomers, providing the highest possible protection on the market against fraud and spam. This is the first timein Russia that security tools from a bank (banking algorithms for protection against social engineering) and atelecoms operator have been integrated into a single platform.
-- In September, Tinkoff began offering deposits denominated in Chinese yuan.
For enquiries:
Tinkoff PR Department
pr@tinkoff.ru
Tinkoff IR Department
ir@tinkoff.ru
About TCS Group
TCS Group is an innovative provider of digital financial and lifestyle services. Branchless since its inception in 2006, TCS developed a full range of in-house proprietary technology solutions and services, including digital banking, brokerage, acquiring and other merchant solutions, insurance, SME banking and much more.
UK MAR
This announcement is released by TCS Group Holding plc and contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal Act) 2018 ("UK MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of UK MAR.
Forward-looking statements
Some of the information in this announcement may contain projections or other forwardlooking 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.
-----------------------------------------------------------------------------------------------------------------------
ISIN: US87238U2033 Category Code: QRT TIDM: TCS Sequence No.: 202567 EQS News ID: 1494183 End of Announcement EQS News Service =------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1494183&application_name=news
(END) Dow Jones Newswires
November 23, 2022 02:38 ET (07:38 GMT)
