IG Group Holdings PLC

Annual / Quarterly Financial Statement • Feb 1, 2018

TCS Group Holding PLC (TCS)

01-Feb-2018 / 14:11 CET/CEST

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Statement on Tinkoff Bank's RAS Financial Highlights for January - December 2017

Moscow, Russia - 1 February 2018. TCS Group Holding PLC (TCS LI) (the "Group"), Russia's leading provider of online retail financial services via its Tinkoff.ru financial supermarket, today announces Tinkoff Bank's unaudited RAS financial highlights for January - December 2017.

For the twelve months of 2017, net income stood at RUB 17.3bn versus RUB 9.3bn in January-December 2016, which is attributed to the growth of net interest income, lower cost of funding, improved quality of the loan portfolio and growth of revenue from new business lines.

It should be noted that the RAS net income figure is not a reliable indicator of IFRS net income for the same period. There is a very low correlation between financial results under the two reporting standards as a result of significant accounting differences. Therefore, RAS figures should not be used as the basis for conclusions on forthcoming IFRS results.

The gross loan portfolio amounted to RUB 162bn representing an increase of 38% y-o-y. The net loan portfolio amounted to RUB 137bn having increased by 41% y-o-y and constituted 51% of total assets (57% at year-end 2016).

Retail customer accounts stood at RUB 153bn. Tinkoff Bank continued to retain substantial liquidity: the CBR N2 ratio stood at 48% (minimum requirement: 15%), and the CBR N3 ratio was 159% (minimum requirement: 50%). Retail customer accounts constituted 68% of total liabilities.

Total assets increased by 56% y-o-y to RUB 268bn.

As of 1 January 2018, total capital including retained profits (based on Form 123) amounted to RUB 59.6bn. The CBR N1 capital adequacy ratio was 16.27%. Core CapitalAdequacy Ratio (N1.1) was 10.16% and Main CapitalAdequacy Ratio (N1.2) was 14.79%.

Our strong 2017 RAS results are driven by two major continuing trends:

• a) an ongoing quality growth of our consumer finance business;
• b) a growing contribution from our non-credit fees-and-commission business lines.

Note on RAS results

Please note that the figures in this press release are calculated in accordance with Tinkoff Bank's internal methodology which is available at:

http://static.tinkoff.ru/documents/eng/investor-relations/ras-methodology.pdf

RAS results are not a reliable indicator of IFRS results due to significant accounting differences that make a direct read-across from RAS to IFRS results impossible. The main differences between RAS and IFRS are:

• * Consolidated results under IFRS include a number of additional items and results of its subsidiaries
• * Accrual of expenses under IFRS
• * Timing differences in accounting for restructured loans ('instalments') and loans going through courts
• * The effect from the revaluation of currency derivative instruments
• * The effect of deferred income tax.

For enquiries:

Tinkoff Bank Darya Ermolina Head of PR + 7 495 648-10-00 (ext. 2009) d.ermolina@tinkoff.ru Tinkoff Bank Larisa Chernysheva IR Department + 7 495 648-10-00 (ext. 2312) ir@tinkoff.ru

About the Group

TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. TCS Group includes Tinkoff Bank, mobile virtual operator network Tinkoff Mobile, Tinkoff Insurance, and Tinkoff Software DC, a network of development hubs across Russia.

The Group was founded in 2006 by the Russian entrepreneur Oleg Tinkov and has been listed on the London Stock Exchange since October 2013.

With no retail branches, the Group serves its customers remotely via online channels and its call centre, and operates a network of over 1,800 representatives to ensure smooth delivery of its products. The network covers all of Russia and allows next day delivery to most customers.

The Group's key business is Tinkoff Bank, Russia's first and only direct bank offering both own brand and partner retail financial services via its Tinkoff.ru platform. The product range includes daily banking (credit and debit cards, payments, money transfers), savings, investments, loyalty programmes, travel services, SME services, mortgage platform, and insurance. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

As at 1 October 2017, the bank was the second largest player in the Russian credit card market, with a market share of 11.6%. The 9M 2017 IFRS net income of TCS Group Holding PLC amounted to RUB 12.6 bn, ROE stood at 48.8%.

Banki.ru, Russia's largest financial news portal, named Tinkoff Bank the Bank of the Year 2016. InOctober 2016 Tinkoff Bank was named the largest independent global direct bank by Frost & Sullivan. In 2015 and 2016, the Global Finance magazine named Tinkoff Bank as the Best Consumer Digital Bank in Russia. In 2016, the bank also wonGlobal Finance's Best Integrated Consumer Bank Site award and was named the Best Digital Bank in the CEE by Euromoney. The bank's mobile application was recognised as the best in Russia by Markswebb Rank & Report for three consecutive years in 2014, 2015 and 2016, and by Deloitte for four consecutive years from 2013 to 2016.

ISIN: US87238U2033 Category Code:MSCM TIDM: TCS LEICode: 2534000KL0PLD6KG7T76 Sequence No.: 5178

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