Tinkoff Bank received a record quarterly profit


The profit of TCS Group Holding PLC in the first quarter of this year amounted to 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). This was the highest quarterly figure in the history of the group, stated in his message. 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.

From the message on the website of the Bank also follows, that the TCS Group Holding PLC has revised the forecast for net profit under IFRS for the year 2016, increasing it to 7-8 billion rubles.

According to analysts Sberbank CIB, net profit rose due to a further reduction in the cost of risk, as asset quality continued to improve. According to reports, the cost of risk in the first quarter of 2016 has decreased significantly and amounted to 10.4% (in I quarter of 2015 — 17.9 percent). The share of non-performing loans (overdue 90 days) in the loan portfolio decreased to 11.3% (end of 2015 is 12.4%).

Secondly, noted analysts at Sberbank CIB, increased net interest income by further reducing funding costs: expensive deposits, open in the first half of 2015, were renewed at significantly lower rates.

In the middle of last year Tinkoff Bank took the unprecedented decision: from July 1, unilaterally reduced interest rates on amounts deposited to replenish the deposits. In the winter of 2015, the Bank’s customers could open deposits growing at rates of 18% per annum in rubles and 6% in foreign currency. From 1 July 2015, the Bank reduced the yield for additional contributions to replenish the deposits. The Bank began to accept funds at 13% per annum in rubles and 4% annual in currency irrespective of the current rate on the Deposit with possibility of replenishment.