Tinkoff Bank has a
Tinkoff Bank's core business is credit cards and online retail deposits. However, Tinkoff Bank is broadening its product offering to bring online other financial products and services to Russian consumers. Tinkoff Bank has already launched a number of such new financial products, including:
Tinkoff Bank uses direct marketing channels that enable it to attract new customers practically anywhere in Russia:
Tinkoff Bank continuously develops and introduces new financial services products to retail customers in Russia:
All of our assets and clients are located in Russia.
Credit card lending to retail customers is currently Tinkoff Bank's core business and is expected to remain its core business for the foreseeable future. However, Tinkoff Bank has been actively developing its retail deposit business, as well as other types of innovative retail financial products and services, such as insurance and payment solutions.
As of 30 June 2013, the annual effective rate [sometimes referred to APR in other markets] on credit cards issued by Tinkoff typically ranged between 24.9% and 45.9% for purchases and between 32.9% and 45.9% for cash advances depending on the tariff plan.
As of 31 December 2013, total assets amounted to USD 3,025 million.
In 2013, net loan portfolio increased by 44% to USD 2,26 billion, as compared to USD 1,57 billion as of 31 December 2012.
In 2013, total customer accounts increased by 50% to USD 1,320 million, as compared to USD 878,1 million as of 31 December 2012.
In 2013, Tinkoff generated net profit of USD 181 million, as compared to USD 122 million in 2012.
In 2013, net interest income increased by 69% to USD 843 million, as compared to USD 500 million in 2012.
As of 31 December 2013, our cost / income ratio was 36%, down from 42% in 2012.
Tinkoff Bank is well capitalised with the CBR N1 capital adequacy ratio at 15.8% as of 1 January 2014, well above the 10% minimum under CBR requirements, while under international Basel III guidelines, its total capital ratio was 25.03% and Tier 1 capital ratio was 19.85% as of 1 January 2014 (bank's estimates).
As of 31 December 2013, non-performing loans as a percentage of gross loans was 7 per cent. Loan loss provisioning ratio stood at 11.3% at year-end 2013. Provisioning coverage for non-performing loans remains robust at over 150%.
Tinkoff Bank continues to focus on the quality of its credit card portfolio and maintain its cost of risk within its target range by tightening customer approval criteria.
Tinkoff Bank maintains score cards for customers and applies strict verification procedures in order to keep the quality of its loan portfolio at appropriate levels. Tinkoff Bank continues to focus on the quality of its credit card portfolio and maintains its cost of risk within its target range by tightening customer approval criteria.
Tinkoff Bank has sophisticated data management and risk management systems, which is one of its core strengths and a differentiating factor compared with the peers. Tinkoff Bank continues to focus on the quality of the credit card portfolio and maintains its cost of risk within the target range by tightening customer approval criteria.
Tinkoff Bank uses its own and third-party databases and analytical models to extensively evaluate, appropriately price and effectively control the credit risk of individual customers as well as entire segments of its loan portfolio. Its rigorous loan approval process is based on four pillars—pre-selection of a large proportion of customers, sophisticated use of information from credit bureaus, verification of customer data and low initial credit limits that are increased on a regular basis for non-delinquent customers.
Tinkoff Bank sets loan loss provisions conservatively at over 1.6x coverage of 90+ day overdue loans (as of 31 December 2013) and quickly writes off bad loans after 180 to 240 days by selling them to third-party collectors.
Tinkoff's strategic goal is to become an integrated retail financial services provider that offers convenient premium-quality service to its customers through a high-tech online platform, while maintaining high growth rates, profitability and effective data-driven risk management.
The core elements of our strategy include:
Tinkoff Bank has a number of strong competitive advantages that set it apart from other banks operating in Russia:
Tinkoff Bank can only comment on its own lending behaviour and in particular on its own data and risk management approach which Tinkoff Bank sees as one of its core strengths and a differentiating factor compared with the peers. Tinkoff Bank continues to focus on the quality of the credit card portfolio and maintain its cost of risk within the target range by tightening customer approval criteria.
Tinkoff Bank welcomes the Law on Consumer Lending that is aimed to ensure that full identification of the customer is carried out in accordance with the CBR requirements and that fraud is reduced as a result, as well as preventing unsolicited mailings of pre-approved credit cards to Russian consumers who have not given their explicit consent to do so. Tinkoff Bank believes that the Law on Consumer Lending brings further clarity to the Russia’s consumer lending market, protect the consumer and benefit the sector, including mainstream providers such as Tinkoff Bank.
The depositary of TCS Group Holding PLC’s DRs is JP Morgan Chase Bank, N.A.
Phone: +7 (495) 967 7113
Yes, Tinkoff Bank is registered with IRS with GIIN TQWL8F.99999.SL.643 and has a status of a participating financial institution not covered by an IGA.