UPDATE 1-Russia’s TCS Group net profit up as it expands non-banking business | Reuters

TCS Group Holding posted on Thursday a 22% increase in net profit last year, a record high as the Russian bank said the number of non-credit product customers exceeded those seeking credit for the first time.

Like Russia’s top bank Sberbank, TCS is shiftinng away from pure banking to offer customers a wide range of other services, from stock investments to cinema tickets.

TCS said its net profit was at 44.2 billion roubles ($601 million) in 2020, while revenues for the full year rose 21% to 195.8 billion roubles. Non-credit business amounted to 37% of revenues and 37% of net profit.

“For the first time in our history, the number of non-credit product customers exceeded the number of credit product customers,” Stanislav Bliznyuk, head of business development, said in a statement.

This year, TCS plans to post at least 55 billion roubles in net profit, with non-credit revenues expanding to over 40% of total revenues and net loan portfolio growing by more than 30%.

The group, which runs Russia’s largest online bank Tinkoff, said the board of directors had approved a first 2021 interim gross cash dividend of $0.24 per share, but that it planned to suspend dividends for the remainder of 2021 to further assess growth opportunities.

TCS, whose global depositary receipts were down 0.6% in Moscow, said it planned to provide the market with more clarity on the growth opportunities, both organic and non-organic, at its strategy day on April 7.

TCS, which plans to expand its clients base to more than 20 million over three years from over 13 million now, plans to go it alone after merger talks with internet giant Yandex collapsed, it said earlier this year. Reporting by Anton Kolodyaznhyy; Writing by Alexander Marrow and Katya Golubkova; Editing by Edmund Blair

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