Tinkoff Bank 5M 2016 RAS Results

Statement on Tinkoff Bank's RAS Financial Highlights for January-May 2016

Moscow, Russia - 20 June 2016. TCS Group Holding PLC (TCS LI) (the "Group"), including Tinkoff Bank, Russia's leading provider of online retail financial services, today announces Tinkoff Bank's unaudited RAS financial highlights for January-May 2016.

For the first five months of 2016, net income stood at RUB 2.5bn versus RUB 0.6bn in January-May 2015 which is attributed to the growth of net interest income and better quality of the loan portfolio.

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 109.6bn representing an increase of 15% y-o-y. The net loan portfolio amounted to RUB 87.3bn having increased by 26% y-o-y and constituted 58% of total assets (57% at year-end 2015). 

Retail customer accounts increased by 50% y-o-y to RUB 96.6bn. Tinkoff Bank continued to retain substantial liquidity: the CBR N2 ratio stood at 67.8% (minimum requirement: 15%), and the CBR N3 ratio was 162.5% (minimum requirement: 50%). Retail customer accounts constituted 75% of total liabilities.

Total assets increased by 22% y-o-y to RUB 149.4 bn.

In May 2016, Tinkoff Bank paid dividends to its shareholders in the amount of RUB 2.5 bn. As a result, total capital including retained profits (based on Form 123) decreased by 9% m-o-m to RUB 24.3 bn as of 1 June 2016. The CBR N1 capital adequacy ratio was 11.03%. Both Core Capital Adequacy Ratio (N1.1) and Main Capital Adequacy Ratio (N1.2) were 8.04%.

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 operating in Russia through a high-tech 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.

Tinkoff Bank's product range includes credit, debit and prepaid cards, deposits, co-branded cards, and agent-based mortgage products. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

As per its five-year strategy, the Group has the ambition to become a financial marketplace, offering both own brand and partner products.

As at 1 May 2016, the bank was the second largest player in the Russian credit card market, with a 9% market share. As at 1 April 2016, the bank issued over 5.8 m credit cards. The bank is well capitalised: its CBR N1 total capital ratio stood at 12.3% as at 1 May 2016.

The Group's 1Q 2016 IFRS net income amounted to RUB 1.9 bn.

In 2015, the Global Finance magazine named Tinkoff Bank as the Best Internet Retail Bank in Russia. In 2013, Tinkoff Bank was recognised as the Bank of the Year and the most profitable bank in Russia by the Banker magazine, the world's premier banking and finance resource, published by the Financial Times Group.