Tinkoff Interim Report for 3 months 2010
Egidaco Investments PLC (“Tinkoff”), the parent company of ‘Tinkoff Credit Systems’ Bank (TCS Bank), announced the financial results for 3 months 2010.
Tinkoff has had a good year so far and maintains a healthy cash flow. The company highlights are as follows:
∙ Net income of $4.5m with RoAE of 47.5%
∙ Number of utilised credit cards up 9.5% to 357,765 since 31 December 2009
∙ Gross credit card portfolio up 11.9% to $223m
∙ Net interest income up 27% y-o-y to $23.7m
∙ NPL have been stable at around 5%
As a result of the improving economic situation and declining risks, TCS resumed customer acquisition (primarily through mailing campaigns) from August-September 2009. Customer acquisition was stepped up in 1Q 2010, as the economic situation continued to improve, and thanks to the availability of funding through the TCS retail deposit programme. In the Summer of 2009, TCS launched a retail deposit programme through the Russian Post in 4 Regions. This programme was significantly boosted by the successful launch in February 2010 of an online retail deposit programme in Moscow and St. Petersburg, which is providing an important source of funding as well as helping to diversify TCS funding sources going forward.
TCS’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. Revenue has been robust and has grown since the beginning of the year. As a result, TCS showed a profit of $4.5 million for 3 months of 2010. This is compared to a profit of $0.1 million for the same period in 2009. Thanks to strong profits, TCS is increasing its equity through retained earnings.
For further details, please contact:
Oliver Hughes, President
tel: +7 495 648 1000
e-mail: o.hughes@tcsbank.ru
Ilya Pisemsky, CFO
tel: +7 495 648-1000
e-mail: i.pisemsky@tcsbank.ru
Bank 'Tinkoff. Credit Systems' is Russia's first monoline bank, specialising exclusively on the issuing and servicing of credit cards. The bank was founded by the famous Russian entrepreneur, Oleg Tinkov. In October 2007, the international investment bank Goldman Sachs became a shareholder. In September 2008, Vostok Nafta Investments Limited also became a shareholder.
TCS Bank uses modern CRM and risk management systems. The bank employs a remote service model, providing virtual banking services of the highest quality to its customers. Service is provided to customers through a sophisticated Call Centre, Internet, SMS banking and by mail through the Russian Postal system. The combination of a narrow focus with a hi-tech approach gives the bank a distinct competitive edge in the rapidly growing Russian credit card market.