Russias TCS Group Reports Record Q1 Net Profit

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Russian lender TCS Group Holding said on Tuesday it made a record net profit in the first quarter as it increased the number of customers and reduced the share of bad loans.

The group, which runs Russias largest online bank Tinkoff, saw its net profit rising 57 yearonyear to 14.2 billion roubles 191 million in the first quarter of 2021.

TCS revenue grew 21 to 56.8 billion roubles in the JanuaryMarch period as the noncredit businesses delivered an increasing share of revenue.

Like Russias top bank Sberbank, TCS is shifting away from pure banking to offer customers a wide range of other services, from stock investments to cinema tickets.

Moscowlisted GDRs in TCS were down 0.3 as of 0729 GMT, outperforming the benchmark MOEX index that slid 1.5 after hitting an alltime high the day before.

TCS said the number of customers rose to 14.8 million in the first quarter from 10.8 million a year earlier.

The first quarter of 2021 brought visible improvement to the cost of risk, which fell to 4.5 from 15.9 a year earlier.

The share of nonperforming loans declined to 9.7 as of endMarch from 10.3 as of end2020.

The group, which recently acquired a majority stake in Beskontakt, the developer of a digital wallet app with more than 20 million users, reiterated its 2021 forecasts.

TCS said it expected its fullyear net profit to be at least 55 billion roubles and noncredit businesses to generate more than 40 of total revenues after this ratio already reached 43 in the first quarter….

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