TCS Bank to double loan portfolio in 2011, net profit to come to over $18 mln
MOSCOW. April 4 (Interfax) - Tinkoff Credit Systems (TCS Bank) plans to double its loan portfolio this year to 20 billion-22 billion rubles from 10 billion rubles as posted for 2010, the bank's president, Oliver Hughes, told journalists on Monday.
TCS Bank increased its IFRS loan portfolio in 2010 (after subtracting provision) by 80% to $316.418 million (9.643 billion rubles according to the Central Bank's official rate for December 31, 2010), the bank said in its materials.
The bank's net profit halved in 2010 to $9.125 million from $18.222 million in 2009.
Hughes said that the drop in this result had been driven by the high growth rates for loan portfolio and the fact that the bulk of profit had been sued for supporting capital sufficiency.
TCS Bank's net profit for 2009 will be higher than 2009. "We plan to post over $18 million this year," he said.
When asked if the bank needs additional capital in order to boost lending as plan, Hughes said that the bank's shareholders are earmarking $15 million this year for TCS Bank's capital.
He did not rule out that new shareholders in TCS Bank could appear but Hughes added that this would not likely happen this year. "A transaction is possible but probably not this year," he said.
The bank's assets went up by 90% to $405.136 million, the materials said.
The share of non-performing loans (NPL) in the portfolio stood at 2% on December 31, 2010, and reserves - 10%, Hughes said. He added that bank is now writing off NPLs that are overdue by more than 180 days.
Individual deposits in 2010 went up 1280% to $174.149 million.
TCS Bank specializes in providing credit cards. The bank's founder Oleg Tinkov owns 68% in the bank, Vostok Nafta Investment - 17% and Goldman Sachs - 15%.
TCS Bank was 167th biggest bank in terms of assets in Russia according to the Interfax-100 rating, compiled by Interfax Center for Economic Analysis.