Tinkoff Reports Strong Results in 3Q'20, Announces 2020 Interim Dividend and Updated Guidance

  • Banking
  • 13.11.2020 08:49 am

Tinkoff, Russia's leading provider of online financial and lifestyle services via its Tinkoff ecosystem, announced its interim condensed consolidated IFRS results for the three months and nine months ended 30 September 2020.

  • Net income rose by 30% year-on-year to RUB 12.6 bn in 3Q’20
  • Exceeded 12 million customers and became Russia’s third largest bank by number of active customers
  • Robust year-on-year growth in fee & commission income; non-credit revenues reached a record 41% of total
  • FY2020 guidance revised, with net income expected to be at least RUB 42 bn

Oliver Hughes, CEO of Tinkoff Group, commented:

“The third quarter of this year was a strong one for us, despite the continuing uncertainty caused by the global COVID-19 pandemic. Net income rose 30% year-on-year to RUB 12.6 billion in 3Q’20, underpinned by unrelenting customer acquisition and particularly strong performance by our fee businesses, which accounted for a record 41% of revenues.

“In the third quarter, our ROE increased versus the previous period and stood at a robust 45.0%, as we retained our focus on profitability.

“Our resilient, highly scalable business model and adaptability to our customers’ changing needs meant that we continued expanding by leaps and bounds. We reached an important milestone in the third quarter when we welcomed our 12 millionth customer, keeping us on track to reach our goal of 20 million customers by 2023. In addition, according to recent research published by Deloitte, Tinkoff has become Russia’s most preferred non-state bank.

“As we unlock the benefits of our ecosystem strategy, our engagement with each customer continues to grow. We are now in sight of reaching 1.4 products per customer from 1.3 at the beginning of the year, despite our fast growth pace. More than 30% of our customers now have 2 or more products with us, up from 24% in January. Each cohort of new customers takes less and less time to use more of our products and services.

“Tinkoff Investments continues its impressive growth. Assets under custody have grown sixfold year on year, as the platform’s number of customer grew to over 2.4 million, solidifying Tinkoff’s status as the largest retail brokerage on Moscow Exchange by number of active clients. Meanwhile, Tinkoff Business is continuing to show robust growth, with SME client current account balances up over 50% year on year.

“On the back of these solid results and in light of the optimism we have for the fourth quarter, we are recommending a dividend of USD 0.25 per GDR/share and we are upgrading our guidance for FY2020. We expect net income to reach at least RUB 42 billion, which was the original target provided at the start of the year, before the pandemic.”

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