MOSCOW, May 14 (Reuters) - Russian consumer lender TCS Group on Tuesday said its net profit rose 25% in the first quarter to 7.2 billion roubles ($110.24 million), due to growth in new customers.
TCS, the parent company of Tinkoff Bank, said more than 1.1 million new credit accounts were opened with the bank in the first quarter, which helped it achieve a 72.5% increase in its net loan portfolio on the year.
“These strong results were driven by both credit and fee and commission business lines, as we continued to expand our financial and lifestyle ecosystem,” Oliver Hughes, CEO of Tinkoff Bank, said in the earnings report.
TCS said its net margin rose 29% to 18.1 billion roubles in January-March, while its total assets increased by 8.9% to 408.9 billion roubles.
The share of non-performing loans declined to 8.1% by the end of the first quarter from 9.4% as of end-2018, TCS said in the report under International Financial Reporting Standards (IFRS).
TCS expects to make more than 35 billion roubles in net income overall in 2019, with its net loan portfolio growing by more than 40%. TCS had previously predicted a 40% increase in its loan portfolio this year.
In the past few years, TCS Group’s strong results have stood out in Russia’s wider banking sector, which has been shaken by the withdrawal of dozens of banking licences and Western sanctions against some state-run lenders.
TCS also said its board of directors had approved a second interim gross cash dividend for 2019 of $0.17 per share or global depositary receipt (GDR), with each GDR representing one share. A total dividend payment would amount to around $31 million, the lender said.
$1 = 65.3125 roubles Reporting by Andrey Ostroukh and Gabrielle Tétrault-Farber, editing by Louise Heavens