Page 11 - bne_Tech_11_2019

Fintech & E-commerce
November 2019 www.intellinews.com I Page 11
Russia’s TCS banking group to list on Moscow Exchange
Leading Russian consumer lender TCS Group that operates Russia’s only pure online bank Tinkoff Bank listed its global depository receipts (GDRs) on the Moscow Exchange (MOEX) with the trading to start on October 28, Kommersant daily reported on October 23.
Prior to the SPO on MOEX, TCS has been trading on London Exchange. However, the banking group will not hold a new issue, but will list GDRs already on the market, seeing to broaden the investor base, the representatives of the bank told Vedomosti daily.
As reported by bne IntelliNews, in June TCS carried out an SPO, raising $300mn on London Stock Exchange with the issue of new GDRs.
“The addition of another stock exchange should increase the investor base and potentially trigger inclusion of TCS’ GDRs into MSCI indices next
year if TCS passes all required thresholds,” BCS Global Markets commented on October 24.
This month Fitch Ratings welcomed the improved capitalisation of TCS after the London SPO, which "together with strong pre-impairment profitability
results in a greater ability to absorb losses in case of stress relative to its peers." Fitch upgraded Tinkoff Bank's (Tinkoff) long-term Issuer-Default Ratings (IDRs) to 'BB' from 'BB-', with a Stable outlook.
The agency attributed the upgrade of Tinkoff's ratings to the bank's extended record of exceptionally strong performance, supported by the ongoing diversification of the bank's business model and growing franchise.
TCS Group boosted net profit by 37% year-on-year and 14% quarter-on-quarter in 2Q19 under IFRS to RUB8.2bn, and return on equity (ROE) of 65%.
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Russian e-commerce players plan to grow through referral programmes
Large Russian online retailers such as Ozon, Yandex.Market, and Ali Express plan to accelerate growth through referral programmes, Kommersant daily reported on October 23.
The companies plan to grow through paying bonuses to existing customers for recruiting new ones for their respective platforms. Notably, AliExpress already launched a pilot programme