The net profit of the TCS Group over 22 years fell by 67% to 20.8 billion rubles – report

(Added details from report)

MOSCOW, March 15 (Reuters) – The TCS Group, whose main asset is Russia’s Tinkoff Bank, earned RUB 20.8 billion in IFRS net income in 2022, up from RUB 63.4 billion a year earlier, according to the company’s financial data.

TCS attributed the 67% decline in profits to escalating geopolitical tensions in the region, which affected the group’s economic and operating environment and resulted in increased credit risk, financial market volatility and a credit halt in the first and second quarters of 2022.

The group tripled provisions for expected loan losses to RUB 65.4 billion.

The growth of the group’s net interest income in 2022 slowed down by 8.6% to 143.897 billion rubles compared to 26.6% in 2021, which was driven by the increase of the Central Bank’s main interest rate at the beginning of 2022.

Loans past due more than 90 days (NPL) increased to 12.1% as of December 31, 2022 from 8.6% in 2021.

“The increase in operating costs resulted mainly from the increase in employee salaries as a result of expanding the customer base,” the report reads.

In the fourth quarter, the group made a profit of 10.7 billion rubles.

Tinkoff Bank was added to the EU sanctions list as part of the tenth package of sanctions against Russia on the anniversary of Moscow’s launch of a special operation against Ukraine. (Moscow office)