Tinkoff Interim Report for 9 months 2009
Egidaco Investments PLC (“Tinkoff”), the parent company of ‘Tinkoff Credit Systems’ Bank (TCS Bank), announced the financial results for 9 months 2009.
Tinkoff has had a good year so far and maintains a healthy cash flow. Company highlights are as follows:
• The total number of utilised credit cards was up 60% y-o-y to 283,092
• The portfolio grew by 23% y-o-y to $165.3m
• Gross yield up to 78% y-o-y from 35%
• Predictable revenue and operating cash flows profile
• Administrative expenses reduced by 23% y-o-y (28% of net interest margin)
• Net income of $12.3m with RoAE of 63%
• Net operating cash flow of $21m
Tinkoff’s low fixed cost base and cost-reduction programme enabled the Group to reduce Opex and manage total expenses. NPLs have been reducing steadily since April 2009 as can be seen from the reduction in Loan Loss Provisions. Revenue has been robust and has grown since the beginning of the year. As a result, Tinkoff showed a profit of $12.27 million for 9 months of 2009. In addition to strong profits, Tinkoff is increasing its equity through retained earnings.
As a result of the improving economic situation and declining risks, Tinkoff resumed customer acquisition in August-September 2009 and is growing the portfolio organically through new issuance and credit limit increases. This is over-and-above accrued financing costs that are always set aside and an additional prudent ‘liquidity cushion’. Tinkoff is also running a retail deposit pilot to further diversify its funding base.