Tinkoff Bank has provided compensation for the reduction of interest on deposits

Tinkoff Bank will pay the depositors compensation unless you can prove in court that in mid-2015 legitimate has lowered rates on renewable deposits, thus depriving investors of the ability to contribute at previous higher rates.

The Bank from 1 July last year, reduced the interest on the renewed Deposit. The Bank was to make funds at 13% per annum in rubles and 4% annual in currency irrespective of the current rate on the Deposit with possibility of replenishment.

In mid-December 2014, the Central Bank sharply raised its key interest rate immediately by 6.5 percentage points to 17%. Banks have been forced to Jack up rates on their products. In the winter of 2015, the Bank’s customers could open deposits to replenish Tinkoff Bank at the rates of 18% per annum in rubles and 6% in foreign currency. Lowering rates has affected customers who opened a Deposit from 24 December 2014 to 30 April 2015.

The Federal Antimonopoly service (FAS) has found a violation, and last fall ordered the Bank to rescind that decision and to compensate the investors for loss of income. Namely, to compensate for the difference between the rates established for deposits initially (in the first half of 2015), and the reduced rate established by the Bank from 1 July 2015. FAS also fined Tinkoff Bank for unfair competition in the Deposit market for 300 thousand rubles.

June 1 of this year the Arbitration court of Moscow dismissed the claim of the Bank, in which he asked to recognize the FAS ‘ decision invalid. Now Tinkoff Bank, as announced on the conference call, the Board Chairman of Bank Oliver Hughes, is examining this ruling and considering their next steps — the Bank has the opportunity to appeal. “The decision of the arbitration court was against us. There is a possibility to appeal. We think,” said the Chairman of the Board Tinkoff Bank.

He noted that regardless of the outcome of this case the Bank has reserved funds to pay clients, if they need to do. “The possible negative consequences of this process taken into account,” said Hughes. How much funds are reserved, and how much depositors will be able to claim compensation, Hughes did not elaborate, stating that “this is evident in reporting.” However, the reserve is a separate line in the accounts is not highlighted, press service of the Bank to clarify its size declined.

Partner of the Collegium of advocates “Yukov and partners” Svetlana Tarnopolsky says that from a legal point of view the question of the possibility of lower interest rates on the contributions renewable deposits is solved is not easy. Maybe, she points out, the point in this dispute will put only the Supreme court, finally determining the position on the interpretation of article 838 of the Civil code “Interest on Deposit”.

This article allows to apply the reduced rate under the old deposits in a month after the Bank has notified the client (and the Bank has notified the customers about the lower rates in a timely manner), but unless otherwise provided by the contract. In the same article it is also stated that a certain contract of Bank Deposit interest rate may be unilaterally reduced by the Bank, unless otherwise provided by law. “Interpretation requires exactly the situation with the replenishment of deposits,” says the lawyer.

Financial group Oleg Tinkov, TCS Group Holding PLC, in January—March received a record quarterly profit of 1.9 billion rubles. against a loss of RUB 0.2 billion over the same period in 2015, follows from the statements of the Bank for international standards (IFRS). The result was above forecasts: for example, Sberbank CIB analysts Andrew Keeley and Andrey Pavlov-Rusinov last week predicted a quarterly profit of TCS in the amount of 1.5 billion rubles.

By the end of 2016 group, which includes Tinkoff Bank and Tinkoff Insurance, plans to increase profit by 4 times — up to 7-8 billion rubles. the Profit of the group for the year 2015 amounted to 1.9 billion rubles.

Global Depository receipts (GDRs) TCS Group Holding the session of the London stock exchange (LSE) increased by 16.22% to $5,48 per share. Its growth occurs on the background of the publication of the report of the Bank according to IFRS for the first quarter of 2016.