Page 94 - RusRPTSept21

TCS Group reported 2Q21 IFRS, that set a new record with very strong loan dynamics as well as non-banking business lines activity.
· NII achieved record Rb33.1bn (+24% y/y; +13% q/q) - 6%/4% beat to BCSe/consensus, driven by gross loans growth (+46% y/y, +15% q/q). 2021G on net loans increased to 50%+ from 30%+ previously.
· Fees also showed a record with Rb10.5bn (+80% y/y; +19% q/q) - 7%/5% beat to BCSe/consensus, spurred by stronger business activity. Non-credit revenue comprised 44% of revenue.
· Provisions came lower, partially a reason for a beat on bottom line, with Rb4.7bn (-61% y/y; +3% q/q) - 36%/30% miss to BCSe/consensus. CoR remained unchanged at 4.5%, reflecting stronger macro environment with 2021G improved to 5% from 7-8%.
· OpEx came higher Rb24.1bn (+90% y/y; +19% q/q) - 17%/11% beat to BCSe/consensus, reflecting strong business growth momentum, led by marketing and advertising expenses.
· TCS announced extension of buy-back programme to fund MLTIP - minor extension up to 1.05 mn GDR till June 2022.
· International expansion – CEO commented “the Company is currently engaging with regulators to explore licensing options and market entry strategies in a number of key markets in South and Southeast Asia”, the market update to be provided in 4Q21.
· Corporate governance – further expansion of the Board to be announced in the coming weeks.
Russian banking TCS Group that operates the country's only pure online bank Tinkoff will apply for a digital banking licence in the Philippines, Sberbank CIB wrote on August 24 citing wire reports and a confirmation by the company. As followed by bne IntelliNews, TCS was previously believed to be preparing for an international expansion move in Southeast Asia. The banking group has recently topped $20bn capitalisation after presenting a well-received 2023 strategy. Reportedly, the head of Tinkoff Mobile, Georgy Chesakov, will manage the licence application process. According to Interfax, a total of around PHP2bn in capital is likely to be invested, which is around $40mn or
94 RUSSIA Country Report September 2021 www.intellinews.com