Statement on Tinkoff Bank's RAS Financial Highlights for January - November 2021

Moscow, Russia - 27 December 2021. TCS Group Holding PLC (LI: TCS, MOEX: TCSG) (the "Group"), Russia's leading provider of online financial and lifestyle services via its Tinkoff ecosystem, today announces Tinkoff Bank's unaudited RAS financial highlights for January - November 2021.

For the eleven months of 2021, net income stood at RUB 46.9bn versus RUB 30.5bn in January - November 2020.

It should be noted that the RAS net income figure is not a reliable indicator of IFRS net income for the same period. There is a very low correlation between financial results under the two reporting standards as a result of significant accounting differences. Therefore, RAS figures should not be used as the basis for conclusions on forthcoming IFRS results. 

The gross loan portfolio amounted to RUB 643bn representing an increase of 54% y-o-y. The net loan portfolio amounted to RUB 556bn having increased by 61% y-o-y and constituted 50% of total assets (44% at year-end 2020). 

Retail customer accounts stood at RUB 718bn. Tinkoff Bank continued to retain substantial liquidity: the CBR N2 ratio stood at 73% (minimum requirement: 15%), and the CBR N3 ratio was 128% (minimum requirement: 50%). Retail customer accounts constituted 74% of total liabilities.

Total assets increased by 46% y-o-y to RUB 1114bn.

As of 1 December 2021, total capital including retained profits (based on Form 123) amounted to RUB 187.4bn. The CBR N1 capital adequacy ratio was 14.2%. Core Capital Adequacy Ratio (N1.1) was 9.6% and Main Capital Adequacy Ratio (N1.2) was 14.3%.

In September 2021, TCS Finance D.A.C. successfully issued USD 600,000,000 6.00% perpetual callable loan participation notes and on-lent the proceeds from the issue to Tinkoff Bank. Following CBR approval, the issue was included into the calculation of Tinkoff Bank's statutory capital ratios starting November 2021.

Note on RAS results

Please note that the figures in this press release are calculated in accordance with Tinkoff Bank's internal methodology which is available at:               

http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf

RAS results are not a reliable indicator of IFRS results due to significant accounting differences that make a direct read-across from RAS to IFRS results impossible. The main differences between RAS and IFRS are:

• Consolidated results under IFRS include a number of additional items and results of its subsidiaries
• Accrual of expenses under IFRS
• Timing differences in accounting for restructured loans ('instalments') and loans going through courts
• The effect from the revaluation of currency derivative instruments
• The effect of deferred income tax.

TCS Group Holding PLC

TCS Group Holding PLC is an innovative provider of online retail and SME financial services. It includes Tinkoff Bank, its mobile virtual network operator Tinkoff Mobile, Tinkoff Insurance, its asset management company Tinkoff Capital, Tinkoff Software DC, a network of development hubs in major Russian cities, and Tinkoff Education. The Group is currently developing Tinkoff ecosystem, which offers financial and lifestyle services.

The Group was founded in 2006 by Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange since October 2013.

The Group's key business is Tinkoff Bank, a fully online bank that serves over 16 mn customers and forms the core of the Tinkoff ecosystem. Tinkoff is the 3rd largest retail bank in Russia in terms of active client-base.

Tinkoff Bank is the second largest player in the Russian credit card market, with a share of 14.3%. The 3Q'21 IFRS net profit of TCS Group Holding PLC amounted to RUB 16.5 bn. The ROE was 42.6%.

With no branches, the Group serves all its customers remotely via online channels and a cloud-based call centre. The centre is staffed by over 10,000 employees, making it one of the largest in Europe. To ensure smooth delivery of the Group's products, the Group has a nationwide network of over 10,000 representatives.

Global Finance named Tinkoff Bank the world's Best Consumer Digital Bank in 2020 and 2018, and the Best Consumer Digital Bank in Russia in 2020, 2019, 2018, 2016 and 2015. Tinkoff was also named the Best European Retail Bank of the Year by Retail Banker International in 2020. In 2021, the Banker recognised Tinkoff Bank as Russia's Best-Performing Bank. The bank's mobile app has been consistently praised by local and global independent experts as the best of its kind (in 2013, 2014, 2015, 2016 by Deloitte and in 2018 by Global Finance).