Statement on TCS Bank's RAS results for 2013

TCS GROUP HOLDING PLC

Statement on the publication of TCS Bank's RAS results for 2013

Moscow, Russia - 27 January 2014. TCS Group Holding PLC (TCS LI) (the "Group"), including "Tinkoff Credit Systems" Bank ("TCS Bank"), Russia's leading provider of online retail financial services, today comments on the publication of its RAS results for 2013.

Having received a number of queries over the last few days, the Group would like to remind investors that RAS results, while giving some indication of trends, are not a reliable indicator of IFRS results. There are significant accounting differences that make a direct read-across from RAS to IFRS impossible. The main differences between RAS and IFRS are as follows:

· 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 ('installments') and loans going through the courts

· Negative effect from the revaluation of swaps and deferred income tax

The Group's net income for the year under IFRS is expected to be significantly above its net income under RAS due primarily to the factors described above.

We reaffirm our guidance for 2013 IFRS results, as previously communicated. 

For enquiries:

"Tinkoff Credit Systems" Bank

Elena Shushunova, PR department

+ 7(495) 648 1000 (ext. 2244), +7 (916) 804 3276

[email protected]

FTI Consulting London

Larisa Millings

+44 (0)20 7269 7153

FTI Consulting Moscow

Maria Shiryaevskaya

+7 495 795 06 23

About the Group

TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. In order to support its branchless platform, the Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers.

Since its launch in 2007 by Mr. Oleg Tinkov, one of the best known Russian entrepreneurs with a long track record of creating successful businesses, the Group has grown into a leader in the Russian credit card market, with the third largest credit card loan portfolio and a market share of 7.5% based on non-delinquent receivables (according to Central Bank of Russia ("CBR") data, as of 1 October 2013). As of December 2013, the Group has issued over 4 mln credit cards.

In addition to a market-leading credit card offering, the Group has developed a successful online retail deposits programme and added Tinkoff Mobile Wallet to its portfolio of innovative online products and services for Russian consumers, including mobile financial services, payment solutions and insurance.

As of 30 September 2013, the Group's total assets amounted to USD 2.7 bn, net loans and advances to customers stood at USD 2.2 bn and customer accounts (deposits) amounted to USD 1.1 bn. In the nine months ended 30 September 2013, the Group generated a net profit of USD 126 mln and net interest income of USD 610 mln.

The Group is well capitalised with the CBR N1 capital adequacy ratio of 14.6% as of 30 September 2013, and its total capital ratio and Tier 1 capital ratio of 23.2%* and 15.5%*, respectively.

The Group's class A shares, in the form of Global Depositary Receipts, have been trading on the London Stock Exchange since October 2013. TCS Group Holding PLC's share capital consists of 89,044,396 Class A shares and 92,144,679 Class B shares.

* Bank's estimates (unaudited)