TCS Group Holding PLC, which includes Russia-based JSC Tinkoff Bank, said Aug. 20 that it expects its 2019 net loan growth to be significantly higher than the 60% anticipated in its previous forecast.
The group increased its 2019 net loan growth forecast a few times earlier this year, initially expecting its net loan portfolio to expand by 40%.
TCS Group also adjusted its 2019 guidance for the cost of risk to between 7% and 8% from the previous level of 6% to 7%, and said it expects its 2019 net income to amount to at least 35 billion Russian rubles.
TCS Group's net loan portfolio grew by 46.3% year to date through June 30, driven by new credit business lines, such as personal loans, point of sale loans, car loans and home equity loans. This resulted in the company's half-year net income, calculated under International Financial Reporting Standards, growing by 31% year over year to 15.4 billion rubles, Tinkoff Bank CEO Oliver Hughes was cited as saying. TCS Group's second-quarter net income amounted to 8.2 billion rubles, up 36% year over year.
TCS Group also said its net margin grew by 41% year over year to 39.7 billion rubles in the first half of 2019, attributing the result to robust net loan growth. In the second quarter alone, net margin went up by 52% to 21.6 billion rubles. Net interest margin dropped by 0.9 percentage point year over year to 23.1% for the second quarter and by 2.3 percentage points to 22.4% for the first half of 2019.
As of Aug. 19, US$1 was equivalent to 66.82 Russian rubles.
