Tinkoff reports strong financial performance in 2Q’20 and 1H’20; announces 3rd 2020 interim dividend

TCS Group Holding PLC, Russia’s leading provider of online financial and lifestyle services via its Tinkoff ecosystem, today announces its interim condensed consolidated IFRS results for the three months and six months ended 30 June 2020.

Oliver Hughes, CEO of Tinkoff Group, commented: “Tinkoff’s resilient, fully online business model enabled us to deliver good performance in a period of unprecedented uncertainty due to the global COVID-19 pandemic and against a difficult economic backdrop. We adapted quickly to the changing business environment, while remaining focused on innovation for customers and profitability for shareholders. As a result, net income rose 25% year-on-year to RUB 10.2 bn in 2Q’20. Meanwhile, our ROE remained at a respectable 40.0%.

On the lending side of the business, we adopted a conservative stance starting in mid-March, implementing a range of cautious measures in credit limit management, sectoral scoring and deep verification. While this remained largely intact in 2Q’20, we saw the economic situation steadily improve towards the end of the quarter and we gradually increased our approval rates back to pre-COVID-19 levels.

Our Tinkoff Black product demonstrated good growth in the second quarter, bringing 1.2 mn new current account customers into the Tinkoff ecosystem. During the period, we rolled out a new pre-paid Tinkoff Black product that can be opened without a physical KYC meeting. This virtual card converts to a fully-fledged Tinkoff Black debit card once the customer has been taken through the identification process by one of our ‘smart couriers’. This has proven an extremely timely product innovation and we are confident it will further accelerate Tinkoff Black customer acquisition.

Tinkoff Investments continues to fire on all cylinders, adding over 1 million new brokerage customers since the start of the year. Assets under custody have grown fivefold. We have been investing heavily in growth of the customer base and engagement, while expanding the educational resources available to our customers. In June, we launched a new micro-investment service called Investment Box, which allows customers to set up regular top-ups of their investment account from their Tinkoff Black card. With nearly 1.9 million brokerage customers, we are the #1 retail brokerage on MOEX by number of active customers.

A crucial part of our ecosystem’s success is the Tinkoff Superapp, and we are proud of the many developments that have been made in the second quarter. At a time when many customers were limited in their mobility, the Tinkoff Superapp played an important role in supporting their daily purchases, transfers, payments, entertainment, fitness and other home-based activities. The Superapp’s monthly active users (MAU) increased by 50% year-on-year during the second quarter, as we rolled out a new partnership with goods.ru, a marketplace that brings together Russia’s leading online stores.

Tinkoff’s CoronaIndex shows us that business activity is quickly returning to pre-COVID-19 levels in Russia. Consumer spending and SME revenues have improved steadily since the beginning of the second quarter. Looking forward, we expect the autumn will be a critical time to see the shape of the medium-term recovery. Tinkoff Group has weathered another storm and proven yet again the flexibility and resilience of its business model. We remain in a strong position today to capture the opportunities to disrupt and grow.”

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Author: Lauren Towner

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