The net profit of the financial group TCS Group Holding PLC, which includes Tinkoff Bank and the insurance company “Tinkoff Insurance, increased in the first half of 22% compared to the same period in 2015 and amounted to 4.4 billion rubles, follows from statements of the group according to international standards. In the first half of last year net profit amounted to 0.2 billion RUB.
For the second quarter the group’s profit increased 6.4% compared to the same period last year and amounted to 2.5 billion rubles For the first, it was equal to 1.9 billion rubles, Net interest income for the second quarter increased by 47.6% compared to the same period of the previous year and amounted to 9.3 billion rubles return on equity increased to 41.5% (in the second quarter of 2015 and 7.6%) and net interest margin was 29.6% (the second quarter of 2015 — up to 25.6%).
The group showed a good result by reducing the cost of risk in the second quarter, said a senior banking sector analyst “Aton” Michael Ganelin. This indicator decreased in the second quarter to 7.7% compared to 16.4% for the same period last year. “Obviously, the Bank successfully manages a portfolio of loans, gathering qualitative base of borrowers. Despite the fact that the Bank kept its forecasts for earnings for the year in the amount of 7-8 billion, apparently with better results” — says the analyst.
The cost of risk decreased the group in the first quarter of 2016, when it amounted to 10.4% versus 17.9% in the first quarter of 2015. The share of non-performing loans (NPL) decreased in the second quarter to 10.9% from 11.3% in the first quarter and 12.4% at the end of last year.
As explained by the Chairman of Board of Bank “Tinkoff credit systems” Oliver Hughes to journalists, the cost of risk is reduced due to the fact that the new portfolio of higher quality loans to replace old. “Some of the more risky customers went into arrears, which was mostly in 2014. Other clients fully repay their debts and stopped using our cards. Part of the good clients left, we have raised their limits. The fourth category, completely new customers”, lists the composition of the portfolio Hughes.
The level of approval in the Bank on loan applications increased from 15% in 2014, up to 25-30% depending on the acquisition channels, said Hughes. “The acceptance level has increased in connection with increase in the flow of applications. We engage borrowers via the Internet, our partners (“Svyaznoy”, “Euroset”), through our loyalty programme,” says the banker. As of September 1, “Tinkoff” takes the second place in the credit card market after Sberbank, the share of “Tinkoff” — 9,6%, said the head of the credit institution.
The Bank also reduced the cost of borrowing to 11% in the second quarter, as dear old deposits left from the balance, also had a favourable impact on the financial result, says Hughes.
Net interest income from “Tinkoff” in the first half increased by 38.2% compared to the same period last year, reaching 17.7 billion RUB Net interest margin amounted to 29.3% vs. 26.8% in the first half of 2015. Return on equity increased to 36.9%, when in the first half of 2015, it reached only 1.9%.
The total volume of credit portfolio for the half year increased by 9.8% and amounted to 111 billion rubles, while at the end of 2015, it has amounted to 101.1 billion rubles, the Volume of funds on customer accounts increased by 13.8% and reached 101,7 billion RUB compared to 89,3 billion by the end of 2015.
According to the Banks.<url>, the Bank “Tinkoff” takes the 46th place in terms of assets (174 bn).