TCS Holding Financial
International public joint stock company TCS Holding (MOEX: TCSG) a leading provider of financial and lifestyle services via its digital ecosystem, today announces its consolidated IFRS results for the three months ended 31 March 2024.
Stanislav Bliznyuk, CEO of Tinkoff Group, said:
“In 2024, Tinkoff Group continued its successful development with a focus on high-quality
business growth in key segments and expansion of its loyal customer base. In the first quarter
of 2024, the Group set historical records in terms of its key performance indicators: number of customers, size of its loan portfolio (RUB 1,251 bn), volume of customer term deposits (RUB 808 bn), and net interest income (RUB 73.2 bn). The Group also increased its return on equity to 31.7%.The Group continues to invest significant resources in innovation, enhancing its own technologies in the field of world-class AI development at the Tinkoff Research laboratory. In 2024 alone, two scientific discoveries from the laboratory were presented at one of the most influential international conferences, the International Conference on Machine Learning.
In just two last years the number of scientific discoveries has reached 20.
This year, we have focused even more on developing our loyal customer base and on how
reliable our customers perceive our ecosystem to be. We continue to build a highly advanced financial platform based on artificial intelligence, and we are actively investing in algorithms to protect customers from various fraud risks, creating the most secure financial service in the market.
This is already reflected in the numbers: our retail customer funds have grown by 63% year-onyear and by 11% compared with the previous quarter, reaching RUB 1.6 trillion. With the inclusion of assets under custody at Tinkoff Investments, this figure has reached RUB 2.6 trillion. In May, the Group’s shareholders, at the general meeting, supported the integration of Rosbank PJSC into TCS Holding IPJSC. We express our gratitude to the shareholders for supporting our strategic initiatives – the foundation for the future accelerated growth of the Group’s business, achieving significant synergies from economies of scale, and building competencies in complementary business segments.”
KEY PERFORMANCE METRICS
1Q’24 4Q
In 1Q’24, the Group’s total revenue grew by 66% year-on-year to RUB 165.8 bn (1Q’23: RUB 99.9). Gross interest income increased by 89% year-on-year to RUB 113.5 bn (1Q’23: RUB 60.2 bn), driven by significant growth in the customer base.
Gross yield on the loan portfolio reached 27.3% in 1Q’24 (1Q’23: 25.0%), mainly as a result of changes in the loan mix. The interest yield on the Group’s securities portfolio increased to 7.1% (1Q’23: 5.6%), in connection with growing rouble interest rates.
In 1Q’24, interest expense grew by 216% year-on-year to RUB 38.3 bn (1Q’23: RUB 12.1bn) due to expansion of the customer base and an increase in market interest rates. The Group’s cost of borrowing increased from 3.8% in 1Q’23 to 8.2% in 1Q’24, which reflects higher interest rates.
In 1Q’24, net interest income grew by 56% year-on-year to RUB 73.2 bn (1Q’23: RUB 46.9 bn). Fee and commission income increased by 28% to RUB 34.2 bn (1Q’23: RUB 26.7 bn) due to growth in the customer base and expansion of the product range. Net fee and commission income grew by 12% to RUB 18.3 bn (1Q’23: RUB 16.4 bn).
The cost of risk increased to 7.6% in 1Q’24, compared with 7.0% in 1Q’23. The risk-adjusted net interest margin grew to 10.3% (1Q’23: 10.0%).
The share of non-credit business lines declined to 48% of the Group’s revenue (1Q’23: 51%) because of a significant increase in the loan portfolio.
