IG Group Holdings PLC — Audit Report / Information 2020

Apr 13, 2021

TCS Group Holding PLC

Board of directors and other officers

Consolidated Management Report

Independent Auditor’s Report

CONSOLIDATED FINANCIAL STATEMENTS

• Consolidated Statement of Financial Position............................................................................................ 1
• Consolidated Statement of Profit or Loss and Other Comprehensive Income .......................................... 2
• Consolidated Statement of Changes in Equity........................................................................................... 3
• Consolidated Statement of Cash Flows..................................................................................................... 4

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Introduction ...................................................................................................................................... 5
2. Operating Environment of the Group............................................................................................... 7
3. Critical Accounting Estimates and Judgements in Applying Accounting Policies................................. 9
4. Segment Analysis .......................................................................................................................... 11
5. Cash and Cash Equivalents........................................................................................................... 15
6. Due from Other Banks ................................................................................................................... 16
7. Loans and Advances to Customers............................................................................................... 17
8. Investments in Securities and Repurchase Receivables............................................................... 37
9. Guarantee Deposits with Payment Systems.................................................................................. 47
10. Brokerage Receivables and Brokerage Payables ......................................................................... 47
11. Tangible Fixed Assets, Intangible Assets and Right-of-use Assets .............................................. 48
12. Other Financial and Non-financial Assets...................................................................................... 49
13. Due to Banks.................................................................................................................................. 50
14. Customer Accounts........................................................................................................................ 51
15. Debt Securities in Issue ................................................................................................................. 51
16. Subordinated Debt ......................................................................................................................... 52
17. Insurance Provisions...................................................................................................................... 52
18. Other Financial and Non-financial Liabilities.................................................................................. 54
19. Share Capital, Share Premium and Treasury Shares ................................................................... 56
20. Net Margin...................................................................................................................................... 58
21. Fee and Commission Income and Expense.................................................................................. 59
22. Customer Acquisition Expense...................................................................................................... 60
23. Insurance Premiums Earned and Claims Incurred........................................................................ 60
24. Administrative and Other Operating Expenses.............................................................................. 61
25. Other Operating Income................................................................................................................. 62
26. Income Taxes................................................................................................................................. 62
27. Dividends ....................................................................................................................................... 64
28. Reconciliation of Liabilities Arising from Financing Activities......................................................... 65
29. Financial and Insurance Risk Management................................................................................... 65
30. Management of Capital ................................................................................................................... 82
31. Contingencies and Commitments.................................................................................................... 83
32. Offsetting Financial Assets and Financial Liabilities...................................................................... 87
33. Transfers of Financial Assets......................................................................................................... 88
34. Non-Controlling Interest ................................................................................................................. 89
35. Financial Derivatives...................................................................................................................... 89
36. Fair Value of Financial Instruments.................................................................................................. 90
37. Presentation of Financial Instruments by Measurement Category .................................................... 95
38. Related Party Transactions.............................................................................................................. 97
39. Events after the End of the Reporting Period ...................................................................................

	2017-12-31	2018-12-31	2019-12-31	2020-12-31
Issued Capital
Share Premium
Reserve of Share-based Payments
Miscellaneous Other Reserves
Treasury Shares
Retained Earnings
Equity Attributable to Owners of Parent
Non-controlling Interests

	2018-01-01	2018-12-31	2019-01-01	2019-12-31	2020-01-01	2020-12-31
Issued Capital
Share Premium
Reserve of Share-based Payments
Miscellaneous Other Reserves
Treasury Shares
Retained Earnings
Equity Attributable to Owners of Parent
Non-controlling Interests

	2019-01-01	2019-12-31	2020-01-01	2020-12-31
Issued Capital
Share Premium
Reserve of Share-based Payments
Miscellaneous Other Reserves
Treasury Shares
Retained Earnings
Equity Attributable to Owners of Parent
Non-controlling Interests

TCS Group Holding PLC
not relevant
Cyprus PLC
Cyprus
25 Spyrou Araouzou
Berengaria 25, 5th floor, 3036, Limassol, Cyprus
Cyprus, Russia

The Company’s principal business activities are the holding of investments in Russian subsidiary companies and offering Cyprus based home call center services to customers and potential customers outside of Russia.

TCS Group Holding PLC
Up to 7 January 2021
Mr. Oleg Tinkov's, after 7 January 2021 none

TCS Group Holding PLC
International Financial Reporting Standards
Consolidated Financial Statements and Independent Auditor’s Report
31 December 2020

TCS Group Holding PLC
CONTENTS
Board of directors and other officers
Consolidated Management Report
Independent Auditor’s Report
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Financial Position............................................................................................ 1
Consolidated Statement of Profit or Loss and Other Comprehensive Income .......................................... 2
Consolidated Statement of Changes in Equity........................................................................................... 3
Consolidated Statement of Cash Flows..................................................................................................... 4
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 Introduction ...................................................................................................................................... 5
2 Operating Environment of the Group............................................................................................... 7
3 Critical Accounting Estimates and Judgements in Applying Accounting Policies................................. 9
4 Segment Analysis .......................................................................................................................... 11
5 Cash and Cash Equivalents........................................................................................................... 15
6 Due from Other Banks ................................................................................................................... 16
7 Loans and Advances to Customers............................................................................................... 17
8 Investments in Securities and Repurchase Receivables............................................................... 37
9 Guarantee Deposits with Payment Systems.................................................................................. 47
10 Brokerage Receivables and Brokerage Payables ......................................................................... 47
11 Tangible Fixed Assets, Intangible Assets and Right-of-use Assets .............................................. 48
12 Other Financial and Non-financial Assets...................................................................................... 49
13 Due to Banks.................................................................................................................................. 50
14 Customer Accounts........................................................................................................................ 51
15 Debt Securities in Issue ................................................................................................................. 51
16 Subordinated Debt ......................................................................................................................... 52
17 Insurance Provisions...................................................................................................................... 52
18 Other Financial and Non-financial Liabilities.................................................................................. 54
19 Share Capital, Share Premium and Treasury Shares ................................................................... 56
20 Net Margin...................................................................................................................................... 58
21 Fee and Commission Income and Expense.................................................................................. 59
22 Customer Acquisition Expense...................................................................................................... 60
23 Insurance Premiums Earned and Claims Incurred........................................................................ 60
24 Administrative and Other Operating Expenses.............................................................................. 61
25 Other Operating Income................................................................................................................. 62
26 Income Taxes................................................................................................................................. 62
27 Dividends ....................................................................................................................................... 64
28 Reconciliation of Liabilities Arising from Financing Activities......................................................... 65
29 Financial and Insurance Risk Management................................................................................... 65
30 Management of Capital ................................................................................................................... 82
31 Contingencies and Commitments.................................................................................................... 83
32 Offsetting Financial Assets and Financial Liabilities...................................................................... 87
33 Transfers of Financial Assets......................................................................................................... 88
34 Non-Controlling Interest ................................................................................................................. 89
35 Financial Derivatives...................................................................................................................... 89
36 Fair Value of Financial Instruments.................................................................................................. 90
37 Presentation of Financial Instruments by Measurement Category .................................................... 95
38 Related Party Transactions.............................................................................................................. 97
39 Events after the End of the Reporting Period ...................................................................................# TCS Group Holding PLC

Board of directors and other officers

Board of directors

Constantinos Economides, Chairman
Alexios Ioannides
Mary Trimithiotou
Jacques Der Megreditchian
Martin Robert Cocker

The above all served throughout 2020 and through to the date of these consolidated financial statements. The Company’s Articles of Association include regulations for the retirement by rotation of Directors at each annual general meeting. These regulations will operate in 2021 on the basis of the composition of the Board at the relevant date.

Company Secretary

Caelion Secretarial Limited
25 Spyrou Araouzou Berengaria 25, 5th floor, 3036, Limassol, Cyprus

Registered office

25 Spyrou Araouzou Berengaria 25, 5th floor, 3036, Limassol, Cyprus

TCS Group Holding PLC Consolidated Management Report

The Board of directors presents its report together with the audited consolidated financial statements of TCS Group Holding PLC (the “Company”) and its subsidiaries (collectively the “Group”) for the year ended 31 December 2020.

Principal activities and nature of operations of the Group

1. The Group’s principal activities are mainly undertaken within the Russian Federation and consist of on-line retail banking operations, through its subsidiary JSC “Tinkoff Bank” (the “Bank”), and other operations through its subsidiaries, such us insurance operations through JSC “Tinkoff Insurance” (the “Insurance Company”), mobile services through LLC “Tinkoff Mobile” and asset management through LLC “Tinkoff Capital” (Note 1).

2. The Bank specialises in retail banking for individuals, individual entrepreneurs (“IE”), small and medium enterprises (“SME”) and brokerage services. The Bank which is fully licensed by the Central Bank of Russia, launched its operations in the Summer of 2007 and is a member of the Russian Deposit Insurance System. The Insurance Company specialises in providing non-life insurance coverage such as accident, property, travel, credit protection and auto insurance. The founder of the Company is Oleg Tinkov who was also the controlling shareholder throughout 2020.

Changes in group structure

1. During 2020 the Group founded an infrastructure company LLC “Tinkoff Invest Lab” to support and optimize the Group’s investment services.

2. In August 2020 the Group acquired a 22.15% shareholding in Incantus Holding Limited by transferring its 100% shareholding in LLC “Fintech DC” to Incantus Holding Limited and by providing a convertible loan (Notes 7 and 38). Incantus Holding Limited is a group of fintech start-ups launched in 2020 to provide a range of services to retail customers in Europe (excluding CIS) through the mobile banking platform Vivid Money. In October 2020 a new venture capital fund has invested into the share capital of Incantus Holding Limited. As a result the Company’s shareholding in Incantus Holding Limited has decreased to 16.32%.

3. As at 31 December 2020 the Group holds 16.32% of the shares of Incantus Holding Limited.

Review of developments, position and performance of the Group’s business

1. The Group operates a flexible business model. Its virtual network enables it to quickly and easily increase business or slow down customer acquisition depending upon the availability of funding and market conditions. The Bank’s primary customer acquisition channels are Internet and Mobile, but it also uses Direct Sales Agents and partnerships (co-brands) to acquire new customers. These customer acquisition models, combined with the Bank’s virtual network, afford it a geographic reach across all of Russia’s regions resulting in a highly diversified portfolio.

2. In 2020 the Group signed a long-term rental contract for space in a business centre in Moscow, which is currently under construction, and which will become the Group’s new headquarters. Construction will be completed according to plan in 2022.

8.

1. In 2020 LLC “Tinkoff Capital” launched Russia’s first exchange-traded fund (ETF) tracking the Nasdaq Technology Sector Index (NDXT). During 2020 the Company actively continued the development of its call-center and software development services in Cyprus, providing training so that these employees might provide a wider range of services to the Bank and, indirectly, its customers.

2. The key offerings of JSC “Tinkoff Insurance” are personal accident insurance, collective insurance against accidents and illnesses, travel insurance, motor vehicle insurance and property insurance, compulsory third party liability insurance (CTP) and voluntary third party liability insurance (VTP) (Note 23). The Insurance Company focuses on online sales.

3. In terms of financial performance the profit of the Group for the year ended 31 December 2020 was RR 44,213 million (2019: RR 36,123 million). This result is driven by two major continuing trends: the ongoing growth of the Group’s consumer finance business and a growing contribution from the non- credit fees-and-commission business lines. Net margin increased by 19.1% to RR 104,702 million (2019: increased by 46.6% to RR 87,926 million) on the back of credit and investment portfolio growth. The growth of the credit portfolio was driven not only by credit card loans but also by other types of loans, such as secured, cash and POS loans. The Group aims to diversify its credit portfolio by the extension of collateralised credit products which represents a business line with lower credit risks. The 90 days plus overdue loans ratio (“NPL”) increased to 10.4% as at 31 December 2020 (2019: 9.1%). The NPL coverage ratio reduced to 153% as at 31 December 2020 (2019: reduced to 156%). The Investment in securities portfolio increased by 76.4% and amounted to RR 238,454 million as at 31 December 2020 (31 December 2019: increased by 35% to RR 135,178 million). This growth has been fuelled by the continued development of the debit card and SME business lines. The Group continues to maintain a good quality and diversified securities portfolio. During the year the Bank developed the Tinkoff Investments product by increasing the customer base and providing of new trading instruments to its clients. The Group’s Insurance business continues to develop at a good pace. This year insurance premiums earned increased by 31.6% to RR 18,567 million (2019: increase by 111.4% to RR 14,110 million). The growth was as a result of a continuous development of auto (including CTP and VTP) and travel insurance, as well as the growth of personal accident insurance along with the credit portfolio and providing a wider coverage of insured risks. In order to reflect appropriately the uncertainty associated with the COVID- 19 pandemic, the Group has made changes to its ECL model, which resulted in approximately RR 5.6 billion of additional credit loss allowance charge in the first half of 2020 and was the main driver of increased cost of risk. Refer to Notes 2 and 3.

Environmental matters

1. As the Group is an online-only financial institution, the management of the Group believes that none of the Group’s business relationships, products or services are likely to have any significant actual or potential significant environmental impacts and do not believe its operations are exposed to any material environmental risks. Management, in reaching this view, have taken into account the risk of adverse impacts that may stem from the Company’s own activities as well as its business relationships including its supply and subcontracting chains. This belief is based on continuous scrutiny of the business. The Group is continuously reviewing its processes to identify opportunities to reduce their environmental impact.

Human resources

1. Empowerment is an important ingredient in the success of our organization. To achieve this, decision-making is delegated to levels deep below the management team, discussion, idea generation and exchange and transparency are actively promoted and encouraged and an open leadership style ensures that information can move freely. The Group utilizes all types of forums to promote continual dialogue – such as email, online chat rooms, flash meetings, as well as formalized meeting structures. The Group offers clear far-reaching career path for its employees, a unique work environment and fair and transparent compensation.

2. Clear performance evaluation processes and fair compensation are essential. Compensation is a combination of fixed rate salary and supplemental bonuses and is based on employee performance. Employees are evaluated on a regular basis in order to monitor their achievement against their Key Performance Indicators as well as to provide feedback which can be used for their career development and to determine incentive compensation.

3. Prior to its IPO in 2013, the Group set up share-based management long term incentive plans as retention and motivational tools for key and senior managers. In March 2016, the Group announced a consolidated long-term management incentive and retention plan, covering around 50 key, senior and middle managers (MLTIP). Since then the Group has announced the expansion of MLTIP. The total size of the MLTIP pool was 8.13% of the Group’s share capital as at 31 December 2020. The plan is designed to align more closely managers’ interests with those of shareholders to grow the Group's value. Current MLTIP is awarded over four years with each annual award vesting over the subsequent three years.# TCS Group Holding PLC Consolidated Management Report

The Group believes that participation in its share capital is an effective motivation and retention tool. The management incentive and retention plan embraces more managers, for two main reasons: firstly, internal promotions as some employees were promoted to key managerial positions; and, secondly, as part of its expansion and transformation into a financial marketplace, the Group has hired a significant number of new managers to develop and manage new business lines and to strengthen internal controls, including cyber security.

1. In April 2020 the Group launched a key employees retention plan (KERP), which is a new long term incentive program for more than 250 senior and middle management level employees. The purpose of the program is to retain and motivate key employees with high potential. This is a performance- based cash-settled program linked to the market price of the Group’s GDRs.

Non-Financial Information and Diversity Statement

1. The Group’s policies and other information that provide an understanding of the development, performance, position and impact of the Group’s activities in the areas of environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters can be found in the Group’s most recently published Non-Financial Information and Diversity Statement (Sustainability Report). The Group will publish its Sustainability Report for the year ended 2020, on the Company’s website, www.tcsgh.com.cy (and www.tinkoff.ru/eng) no later than 30 June 2021.

Principal risks and uncertainties

1. The Group’s business and financial results are impacted by uncertainties and volatilities in the Russian economic environment which can be impacted by global factors and/or by national factors.

2. The Group is subject to a number of principal risks which might adversely impact its performance. The principal activities of the Group are banking and insurance operations and so it is within this area that the principal risks occur. Management considers that those principal risks are financial risks, operational risks and legal risks. Financial risk comprises market risks (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

3. The Board has put in place arrangements to identify, evaluate and manage the principal risks and uncertainties faced by the Group. The Group has an established risk management program that focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance. This is overseen by a dedicated Risk Management function, which works with senior management of the operating companies in Russia as well as the Board of directors in this area. The primary objectives of the financial risk management function are to establish acceptable risk limits, and then ensure that the exposures remain within these limits. The operational and legal risk management functions are intended to ensure the proper functioning of internal policies and procedures that minimize operational and legal risks. The risk management strategy is established so as to identify, assess, monitor and manage the risks arising from Group's activities. These risks as well as other risks and uncertainties, which affect the Group and how these are managed, are presented in Notes 29 and 31 of the consolidated financial statements.

4. Analysis of impact of COVID-19 pandemic on the Group is disclosed in the Note 2 of the сonsolidated financial statements.

Contingencies

1. The Group’s contingencies are disclosed in Note 31 to the consolidated financial statements.

Future developments

1. The Group’s strategic objective is to be a full service, online financial and lifestyle ecosystem with a broad range of financial, insurance and quasi-financial products, serving customers through a high- tech online and mobile platform that offers premium quality service and convenience, while maintaining high growth rates, profitability and effective data-driven risk management.

Results

1. The Group’s results for the year are set out on page 2 of the consolidated financial statements. Information on distribution of profits is presented in Note 27.

Any important events for the Group that have occurred after the end of the financial year

1. Important events for the Group that have occurred after the end of the financial year are presented in Note 39.

TCS Group Holding PLC Consolidated Management Report

Share capital, redesignation and conversion of class B and class A shares

1. As at 31 December 2020 the issued share capital of the Company was 199,305,492 shares (2019: same). Of these 129,391,449 were class A shares (2019: 119,291,268) and 69,914,043 class B shares (2019: 80,014,224) with a par value of USD 0.04 per share. In December 2020 10,100,181 class B shares in the Company held by the Rigi Trust were converted to class A shares. As a result of the conversion, Mr. Oleg Tinkov's voting rights in the Group decreased from 87.03% to 84.38%.

2. On 7 January 2021 all 69,914,043 issued class B shares (35.08% of the total number of issued shares) held by the Rigi Trust and the Bernina Trust were converted to class A shares, and on the same date all issued shares were reclassified and redesignated as ordinary shares. Following the conversion, each share carries a single vote, and the total number of votes capable of being exercised is equal to the total number of issued shares (currently 199,305,492 shares following the class B share conversion). As a result of the conversion, Mr. Oleg Tinkov's voting rights in the Group decreased from 84.38% to 35.08%. As a result his control over the Group was ceased.

Treasury shares

1. At 31 December 2020 the Group held 3,013,379 (2019: 4,185,166 ) of its own GDRs, equivalent to approximately RR 3,238 million (2019: RR 3,164 million) and which represent 1.5% (2019: 2.1%) of the issued shares.

2. Treasury shares are GDRs of TCS Group Holding PLC that are held by a special purpose trust which has been specifically created for the long-term incentive programme for the MLTIP (see Note 38 for further information).

3. During 2020 the Group repurchased 650,000 GDRs at market price for RR 661 million (2019: no GDRs were repurchased).

4. During 2020 the Group transferred 1,809,681 GDRs (2019: 2,419,187 GDRs), representing 0.91% (2019: 1.21%) of the issued shares, upon vesting under the MLTIP. This resulted in a transfer of RR 587 million (2019: RR 506 million) out of treasury shares to retained earnings.

Research and development activities

1. During the years ended 31 December 2020 and 2019 the Group has undertaken research and development activities related to software including greater use of biometrics, voice assistant, social networking, machine learning and intelligence.

Board of directors

1. The members of the Board of directors as of 31 December 2020 and at the date of this report are presented above. All served throughout the year ended 31 December 2020 and through to the date of these consolidated financial statements.

2. There were no significant changes in the assignment of responsibilities or remuneration of the Board of directors.

Branches

1. The Group did not operate through any branches during the year.

Independent auditor

1. The Independent Auditor, PricewaterhouseCoopers Limited, has expressed its willingness to continue in office. A resolution giving authority to the Board of directors to fix its remuneration will be proposed at the Annual General Meeting (AGM).

TCS Group Holding PLC Consolidated Management Report

Going concern

1. The Directors have access to all information necessary to exercise their duties. The Directors continue to adopt the going concern basis in preparing the consolidated financial statements based on the fact that, after making enquiries and following a review of the Group’s budget for 2021, including cash flows and funding facilities, the Directors consider that the Group has adequate resources to continue in operation for the foreseeable future. This assessment was made with the available information to the Group as at the date of approving the financial statements.

Corporate Governance Statement

GDRs of TCS Group Holding PLC (a Cyprus incorporated company), with each GDR issued under a deposit agreement dated on or about 24 October 2013 with JPMorganChase Bank N.A. as depositary representing one ordinary (formerly class A) share, are listed on London Stock Exchange. The Company’s GDRs are also listed on the Moscow Exchange. No shares of TCS Group Holding PLC are listed on any exchange. The Company is required to comply with the UK corporate governance regime to the extent it applies to foreign issuers of GDRs listed on the London Stock Exchange. The Company has not adopted corporate governance measures of the same standard in all respects as those adopted by UK incorporated companies or companies with a premium listing on the London Stock Exchange. As the shares themselves are not listed on the Cyprus Stock Exchange (or elsewhere), the Cypriot corporate governance regime, which only relates to companies that are listed on the Cyprus Stock Exchange, does not apply to the Company and accordingly the Company does not monitor its compliance with that regime. From IPO in 2013 until 7 January 2021, the Company maintained a capital structure with two classes of shares, class A and class B. On 7 January 2021, all class B shares were converted to class A and simultaneously all shares were reclassified and redesignated as ordinary shares all ranking pari passu for all purposes and in all respects with the other existing shares, with the provisions in the Articles of Association of the Company relating to class B shares deemed deleted. The Company’s Home State is Cyprus.# TCS Group Holding PLC Consolidated Management Report

A description of the terms and conditions of the GDRs can be found at “Terms and Conditions of the Global Depositary Receipts”, “Summary of the Provisions relating to the GDRs whilst still in Master Form” and “Description of Arrangements to Safeguard the Rights of the Holders of the GDRs” in the Prospectus issued by the Company dated 22 October 2013 and on the website at www.tinkoff.ru/eng. Copies of the Articles of Association of the Company adopted on 21 October 2013, the terms of reference of the Committees, and other corporate governance related as well as investor relations related materials can also be found on the website www.tinkoff.ru/eng, at the Company’s main website www.tcsgh.com.cy, on the Company’s page on the London Stock Exchange website (www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary) and at the official site of the Department of Registrar of Companies, Cyprus (http://www.mcit.gov.cy/).

The Board of directors

The role of the Board is to provide entrepreneurial leadership to the Group within a framework of prudent and effective controls which enable risk to be assessed and managed. The Board sets the Group’s strategic objectives, ensures that the necessary financial and human resources are in place for the Group to meet its objectives and reviews management’s performance. The Board also sets the Group’s values and standards and ensures that its obligations towards the shareholders and other stakeholders are understood and met. The Board operates under a formal schedule of matters reserved to the Board for its decision, approved by shareholders in 2013. The authorities of the members of the Board are specified by the Articles of Association of the Company and by law. The current five strong Board of directors is comprised of three executive directors including the chairman, and two non-executive directors both of whom are independent. There was no change in the composition of the Board or status of the directors in 2020. The Board of directors contains no Director B. The longest serving director Mr. Constantinos Economides took over the role of Chairman of the Board of directors in June 2015. The names of the people who served on the Board during 2020 are listed at the Board of directors and other officers. The Group has established two Committees of the Board. Specific responsibilities have been delegated to those committees as described below. The Board is required to undertake a formal and rigorous review annually of its own performance, that of its committees and of its individual directors. That review was recently carried out, in-house, in relation to 2020, looking at overall performance. All directors completed detailed questionnaires on the Board’s, the committees’ and individual director’s performance. The role of appraising the Chairman of the Board for 2020 was performed by the Chairman of the Audit Committee. Analysis of the resultant feedback will be discussed at a meeting of the Board of directors on 10 March 2021 and no changes are expected to be made in the performance of the Board, its committees or individual directors. The Board has not appointed a senior independent director. There are only two independent directors of whom at least one will retire each year.

Number of directors

Unless and until otherwise determined by the Company in general meeting, the number of directors shall be no less than four, of whom two must be non-executive, and until 7 January 2021 was not permitted to exceed seven, when class B shares were in issue. From 7 January 2021, there is no maximum number of directors. The Articles of Association of the Company provide for the retirement by rotation of certain directors at each Annual General Meeting (AGM). At the AGM on 24th August 2020 the director who retired by rotation was Mr. Jacques Der Megreditchian who was duly reappointed that day by vote of all the shareholders.

Committees of the Board of directors

The Company has established two Committees of the Board of directors: the Audit Committee and the Remuneration Committee. Their terms of reference are summarized below. Both Committees were formed in October 2013. The Board reserves the right to amend their terms of reference and arranges a periodic review of each Committee’s role and activities and considers the appropriateness of additional committees.

Committees-current composition

The Audit Committee is chaired by an independent non-executive director Mr. Martin Cocker, and had, until 16 August 2019, two other members both non-executive directors, one of whom was independent. From 16 August 2019 the Audit Committee has comprised its chairman Mr. Martin Cocker and one independent non-executive director. The Remuneration Committee is also chaired by an independent non-executive director, Mr. Jacques Der Megreditchian, and had until 16 August 2019 two other members both non-executive directors, one of whom was independent. From 16 August 2019 the Remuneration Committee has comprised its chairman Mr. Jacques Der Megreditchian and one independent non-executive director. The current terms of reference of both Committees are available to the public and can be found on the Group’s websites. A short summary of both is set out below.

Role of the Audit Committee

The Audit Committee’s primary purpose and responsibility is to assist the Board in its oversight responsibilities. In executing this role the Audit Committee monitors the integrity of the financial statements of the Group prepared under International Financial Reporting Standards (“IFRS”) as adopted by the European Union (EU) and any formal announcements relating to the Group’s and the Company’s financial performance, reviewing significant financial reporting judgments contained in them, oversees the financial reporting controls and procedures implemented by the Group and monitors and assesses the effectiveness of the Company’s internal financial controls, risk management systems, internal audit function, the independence and qualifications of the independent auditor and the effectiveness of the external audit process. The Audit Committee is required to meet at appropriate times in the reporting and audit cycle but in practice meets more often as required.

Under its terms of reference, the Audit Committee is required, at least once each year, to review its own performance, constitution and terms of reference to ensure it is operating at maximum effectiveness and to recommend any changes it considers necessary for Board approval. The Audit Committee met this obligation through members participating in the main Board review described above. After consideration of the review, no changes were proposed to the committee’s terms of reference. The Audit Committee operates a structured framework around the extensive work it does on non-financial statements related matters holding at least two additional meetings annually, which would typically be held at the Bank’s head office in Moscow, to consider specific, non-financial statements related areas within its terms of reference. No such meeting was held in 2020 due to COVID-19 travel restrictions but at least two are planned for 2021. The Audit Committee has developed a risk matrix which constantly evolves to reflect new risks, the perceived impact of, and the Group’s appetite for, any given risk and the measures taken to mitigate those risks. This matrix is run in conjunction with the internal audit function.

Changes in the top management team

A new post of chief information security officer was created in late 2017 and filled, with additional personnel expert in cyber-security recruited, in a very competitive market, through 2019 and 2020 to support the Group’s ever-increasing efforts to stay ahead of trends and threats in this sphere. The Group has further broadened its top management team with a new chief investment officer appointed in 2019 and a new chief operating officer appointed in early 2020.

Role of the Remuneration Committee

The Remuneration Committee is responsible for determining and reviewing among other things the framework of remuneration of the executive directors, senior management and its overall cost and the Group’s remuneration policies. The objective is to ensure that the executive management of the Group are provided with appropriate incentives to encourage enhanced performance and are in a fair and responsible manner rewarded for their individual contributions to the success of the Group. The Remuneration Committee’s terms of reference include reviewing the design and determining targets for any performance related pay schemes and reviewing the design of all share incentive plans for approval by the Board. The Remuneration Committee is required to meet at least twice a year but in practice meets far more often. The Remuneration Committee continued with its work into 2020 on an ongoing review of the operation of the Group’s MLTIP which launched in 2016 and in considering additional awards to both existing and new participants for this and subsequent years. In the end of Q2 2020 the Committee approved the proposals of launching a new incentive and retention plan for more than 250 senior and middle managers (KERP). The Committee has also been working on plans for an incentive and compensation arrangement within MLTIP for when, in the period 2022 to 2024, existing awards made to MLTIP joiners in 2016-2017 start to go into run off. The Remuneration Committee recommended in June 2020 and December 2020 7 and 8 members of key management respectively be granted new awards under MLTIP in Q3 2021.# TCS Group Holding PLC Consolidated Management Report

Under its terms of reference the Remuneration Committee is required at least once each year to review its own performance, constitution and terms of reference to ensure it is operating at maximum effectiveness and to recommend any changes it considers necessary for Board approval. The Remuneration Committee met this obligation through members participating in the main Board review (described above) under which detailed questionnaires were completed by all directors assessing the operation of the Board and both committees as well as individual directors. Although earlier reviews had resulted in certain minor changes to the Remuneration Committee’s terms of reference, no further changes were felt required based on the most recent review. The Committee continues to meet as required.

Appointment, retirement, rotation and removal of directors

The directors of the Company are appointed by the general meeting of shareholders with the sanction of an ordinary resolution. Such an appointment may be made to fill a vacancy or as an additional director. But no director may be appointed unless nominated by the Board of directors or a committee duly authorized by the Board of directors or by a shareholder or shareholders together holding or representing shares which in aggregate constitute or represent at least 5% in number of votes carried or conferred by the shares giving a right to vote at a general meeting.

The Board of directors may at any time appoint any person to the office of director either to fill a vacancy or as an additional director and every such director shall hold office only until the next following annual general meeting and shall not be taken into account in determining the directors who are to retire by rotation. One third of the directors (or if their number is not a multiple of three, the number nearest to three but not exceeding one-third) shall retire by rotation at every annual general meeting. Directors holding an executive office are excluded from retirement by rotation.

Directors may be removed from office by the shareholders at a general meeting with the sanction of an ordinary resolution, subject to giving 28 days’ notice to that director in accordance with the Articles of Association.

The office of director shall be vacated if the director:
* becomes bankrupt or makes any arrangement or composition with his creditors generally; or
* becomes prohibited from being a director by reason of any court order made under Section 180 (disqualification from holding the position of director on the basis of fraudulent or other conduct) of the Cyprus Companies Law; or
* becomes, or may be, of unsound mind; or
* resigns his office by notice in writing to the Company left at the registered office; or
* is absent from meetings of the board for six consecutive months without permission of the Board of directors and his alternative director (if any) does not attend in his place and the Board of directors resolves that his office be vacated.

Significant direct/indirect holdings

For the significant direct and indirect shareholdings held in the share capital of the Company, please refer to Note 1 of the consolidated financial statements.

Internal control and risk management systems in relation to the financial reporting process

Policies, procedures and controls exist around financial reporting. Management is responsible for executing and assessing the effectiveness of these controls.

Financial reporting process

The Board of Directors is responsible for the preparation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap.113, and for such internal control as the Board of directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The Board has delegated to the Audit Committee the responsibility for reviewing the consolidated financial statements to ensure that they are in compliance with the applicable framework and legislation and for recommending these to the Board for approval. The Audit Committee is responsible for overseeing the Group’s financial reporting process.

Internal Controls and Risk Management

Management is responsible for setting the principles in relation to risk management. The risk management organisation is divided between Policy Making Bodies and Policy Implementation Bodies. Policy Making Bodies are responsible for establishing risk management policies and procedures, including the establishment of limits. The main Policy Making Bodies are the Board of directors, the Management Board, the Finance Committee, the Credit Committee and the Business Development Committee. The policy implementation level of the Group’s risk management organisation consists of the Finance Department, the Risk Management Department, the Collections Department and the Internal Control Service.

In addition the Group has implemented an online analytical processing management system based on a common SAS data warehouse that is updated on a daily basis. The set of daily reports includes but is not limited to sales reports, application processing reports, reports on the risk characteristics of the card portfolios, vintage reports, transition matrix (roll rates) reports, reports on the pre-, early and late collections activities, reports on compliance with CBR requirements, capital adequacy and liquidity reports, operational liquidity forecast reports and information on intra-day cash flows.

Diversity policy

The Group is committed to offering equal opportunity to all current and prospective employees, such that no applicant or employee is discriminated in favour of or against on the grounds of sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation in recruitment, training, promotion or any other aspect of employment. Recruitment, training and promotion are exclusively based on merit. All the Group employees involved in the recruitment and management of staff are responsible for ensuring the policy is fairly applied within their areas of responsibility. The Group applies this approach throughout, at all levels. This includes its administrative, management and supervisory bodies, including the Board of directors of the Company.

The composition and diversity information of the Board of directors of the Group for the year ended and as at 31 December 2020 is set out below:

Name	Age	Male/Female	Educational/professional background
Constantinos Economides	45	Male	ICAEW, MSc in Management Sciences, experience in ‘Big Four’ professional services firms
Alexios Ioannides	44	Male	ICAEW, ICPAC, BSc in Business Administration, experience in ‘Big Four’ professional services firms
Mary Trimithiotou	43	Female	ICPAC, FCCA, Licensed insolvency practitioner, experience in ‘Big Four’ professional services firms
Martin Robert Cocker	61	Male	ICAEW, BSc in Mathematics and Economics, experience in ‘Big Four’ professional services firms
Jacques Der Megreditchian	61	Male	BSc in Business Administration and in Financial Analysis, banking and finance experience

Further details of the corporate governance regime of the Company can be found on the website: https://www.tinkoff.ru/eng/investor-relations/corporate-governance/.

By Order of the Board

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Constantinos Economides
Chairman of the Board

Limassol
10 March 2021

Independent Auditor’s Report

To the Members of TCS Group Holding PLC

Report on the Audit of the Consolidated Financial Statements

Our opinion

In our opinion, the accompanying consolidated financial statements of TCS Group Holding PLC (the “Company”) and its subsidiaries (together the “Group”) give a true and fair view of the consolidated financial position of the Group as at 31 December 2020, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

What we have audited

We have audited the consolidated financial statements which are presented in pages 1 to 118 and comprise:
* the consolidated statement of financial position as at 31 December 2020;
* the consolidated statement of profit or loss and other comprehensive income for the year then ended;
* the consolidated statement of changes in equity for the year then ended;
* the consolidated statement of cash flows for the year then ended; and
* the notes to the consolidated financial statements, which include a summary of significant accounting policies.

The financial reporting framework that has been applied in the preparation of the consolidated financial statements is International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.# Independence

We remained independent of the Group throughout the period of our appointment in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) together with the ethical requirements that are relevant to our audit of the consolidated financial statements in Cyprus and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

2 Our audit approach

Overview

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where the Board of Directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

• Overall group materiality: Russian Roubles (“RR”) 2,800 million, which represents approximately 5% of profit before tax.
• We planned and conducted our audit to cover the two largest business components of the Group, being Banking and Insurance operations, for which we performed full scope audits of each of their complete financial information.
• For the other components, we performed substantive audit procedures where necessary.

We have identified the following key audit matters:

• Credit loss allowance for loans and advances to customers, using the expected credit loss model in line with the requirements of IFRS 9 “Financial Instruments”;
• Recognition of interest income calculated using the effective interest rate method on loans and advances to customers.

Materiality

The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the consolidated financial statements as a whole.

Overall group materiality

How we determined it	RR 2,800 million
Approximately 5% of profit before tax.

Rationale for the materiality benchmark applied

We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by the users of the consolidated financial statements, and it is a generally accepted benchmark. We chose 5%, which in our experience is an acceptable quantitative threshold for this materiality benchmark.

We agreed with the Audit Committee that we would report to them misstatements identified during our audit above RR 140 million as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

How we tailored our group audit scope

TCS Group Holding PLC is the parent of a group of companies. The financial information of this Group is included in the consolidated financial statements of TCS Group Holding PLC. Considering our ultimate responsibility for the opinion on the Group’s consolidated financial statements we are responsible for the direction, supervision and performance of the group audit. In this context, we tailored the scope of our audit and determined the nature and extent of the audit procedures for the components of the Group to ensure that we perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the significance and/or risk profile of the group entities or activities, the accounting processes and controls, and the industry in which the Group operates.

The Group has two primary business components, being Banking (which includes retail business for individuals and small and medium-sized entities business) and Insurance operations both of which operate primarily in the Russian Federation. The Banking business comprises a number of reporting units being JSC Tinkoff Bank, LLC Microfinance company Т-Finans, LLC Phoenix and LLC Tinkoff Capital. The Insurance business comprises solely JSC Tinkoff Insurance. Full scope audit procedures were performed in respect of the Banking and Insurance operations.

Other Group business reporting components are not considered to be primary business components for audit purposes. Where necessary, additional substantive audit procedures were carried out across these non-primary components at the financial statement item level in order to achieve the desired level of audit evidence.

The consolidated financial statements are a consolidation of all of the above business reporting components. We determined the level of involvement we needed to have in the audit work at the business reporting components to be able to conclude whether sufficient appropriate audit evidence was obtained as a basis for our opinion on the consolidated financial statements as a whole. We worked with other PwC network firms in relation to the activity of the Group in the Russian Federation and Cyprus. Overall, we have obtained sufficient and appropriate audit evidence regarding the consolidated financial information of the Group as a whole to provide a basis for our audit opinion on the consolidated financial statements.

4 Key audit matters incorporating the most significant risks of material misstatements, including assessed risk of material misstatements due to fraud

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter

How our audit addressed the Key Audit Matter

Credit loss allowance for loans and advances to customers, using the expected credit loss model in line with the requirements of IFRS 9 “Financial Instruments”

This is a complex accounting standard for which models have been developed by the Group as a basis to calculate expected credit losses (“ECL”). These calculations involve the application of significant management judgement and estimates. In relation to the ECL models for measuring credit loss allowance we assessed the appropriateness of the key assumptions used in the methodologies and models of the Group (including refinements to those made to address changes in the economic environment associated with the COVID-19 pandemic) and their compliance with the requirements of IFRS 9. Therefore, we applied focus to the “expected credit loss” models used by the Management for the purpose of compliance with IFRS 9. These models are described in more detail in Note 40 “Significant Accounting Policies” and Note 29 “Financial and Insurance Risk Management” to the consolidated financial statements. For a sample of loans, we recalculated their probabilities of default and compared the results with the models’ outputs. Additionally, we reviewed the Group’s back-testing of probabilities of default estimated on the basis of the models by comparing them to the actual default rates evidenced in the loan portfolios. An assessment of the credit loss allowance for loans and advances to customers is performed on a portfolio basis, with the key assumptions being the probability of an account falling into arrears and subsequently defaulting (which is impacted by the definitions of “significant increase in credit risk” and “default”), the estimated recoveries from defaulted loans and the lifetime period for revolving credit. With regard to the controls relating to the credit loss allowance calculation process, we assessed and tested on a sample basis the design and operating effectiveness of the key controls over credit loss data and calculations. These key controls included those over classification of certain loans by loan facilities. Statistical models are used for the assessment of the probability of default, recovery rate and the lifetime period for revolving credit facilities. In addition, portfolios, allocation of cash received from customers to respective loans and advances to customers, identification of the overdue loans and the data transfer from source systems to the credit loss allowance models. calculation of the expected credit loss allowance incorporates forward-looking information, taking into consideration different macro-economic scenarios and adjusting the probability of default. During 2020 the Group refined the methodologies used for calculation of the allowance to address changes in the economic environment. We determined that we could place reliance upon these key controls for the purposes of our audit. In addition, we performed testing, on a sample basis, of the statistical models used to calculate the credit loss allowance and we also tested, on a sample basis, the completeness of associated with the COVID-19 pandemic. restructured credit-impaired loans.

How our audit addressed the Key Audit Matter

This testing of the models varied by portfolio including testing of the coding used, re-performance of the calculation including Note 40 “Significant Accounting Policies”, Note 3 “Critical Accounting Estimates and Judgements in Applying Accounting Policies”, Note 7 “Loans and Advances to Customers” and Note 29 “Financial and Insurance Risk Management” to the consolidated financial statements provide detailed information on the credit loss allowance for loans and advances to customers. We tested a sample of post model accounting adjustments where applicable, including considering the basis for the adjustment, the logic applied, the source data used, the key assumptions adopted and consistency with prior periods. We verified management assumptions in the context of the economic environment that is affected by the COVID-19 pandemic. We assessed the disclosures made against the relevant accounting standards for their completeness and accuracy. Based on the evidence obtained we found the models used to be appropriate and the outputs from the models to be reasonable.

Recognition of interest income calculated using the effective interest rate method on loans and advances to customers

We focused on this area mainly because management’s calculation of interest income applying the effective interest rate method uses, in addition to relevant nominal interest rates, a number of different fees received and costs incurred. Significant management judgement and estimates are involved in determining the expected lives of loans, and which fees and costs are included in interest income instead of net commission income and the pattern of their recognition in income. The Group has from its history of lending in different economic conditions and cycles a significant amount of information from which to assess trends in payments, repayments and product transfers. This detailed information is used to obtain estimates of its customers’ behaviour and performance, including the assumptions around expected lives of loans which is then used in the effective interest rate calculation.

Our audit procedures in relation to the effective interest rates of loans originated by the Group included testing, on a sample basis, the key controls in relation to the nominal interest income, and the fee income and costs incurred which contribute to interest income calculated using the effective interest rate method. These controls included those over calculation and accrual of the nominal interest income and fee income and costs incurred parts of interest income calculated using the effective interest rate method and the data transfer from the source system to the accounting system. We determined that we could place reliance upon these key controls for the purposes of our audit. We analysed the appropriateness and consistency of the methodology and its application across each of the loan portfolios and loans’ credit quality stages within these portfolios and assessed the reasonableness of the key assumptions and estimates used in the methodology calculations, including the fee income and costs components of the effective interest income rate and expected repayment periods of the loans by considering historic information. We also assessed the mathematical accuracy of the calculations through re-performance of a sample of them. In addition, we performed substantive analytical procedures to assess the reasonableness of the interest income calculated using the effective interest rate method recognised by the Group. Our testing did not identify any material errors in management’s application of the effective interest rate method for interest income from loans and advances to customers.

Key Audit Matter

How our audit addressed the Key Audit Matter

Note 40 “Significant Accounting Policies”, Note 3 “Critical Accounting Estimates and Judgements in Applying Accounting Policies”, Note 20 “Net Margin” and Note 29 “Financial and Insurance Risk Management” included in the consolidated financial statements provide detailed information on the interest income calculated using the effective interest rate method and effective interest rates of loans and advances to customers.

Reporting on other information

The Board of Directors is responsible for the other information. The other information comprises the information included in the Consolidated Management Report including the Corporate Governance Statement, which we obtained prior to the date of this auditor’s report, and the Group’s complete Annual Report, which is expected to be made available to us after that date. Other information does not include the consolidated financial statements and our auditor’s report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

When we read the Group’s complete Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and if not corrected, we will bring the matter to the attention of the members of the Company at the Company's Annual General Meeting and we will take such other action as may be required.

Responsibilities of the Board of Directors and those charged with governance for the Consolidated Financial Statements

The Board of Directors is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and the requirements of the Cyprus Companies Law, Cap. 113, and for such internal control as the Board of Directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
• Conclude on the appropriateness of the Board of Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves a true and fair view.# Independent Auditor's Report

To the shareholders of TCS Group Holding PLC

Opinion on the Consolidated Financial Statements

We have audited the consolidated financial statements of TCS Group Holding PLC (the "Group"), which comprise the consolidated statement of financial position as at 31 December 2020, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2020, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”) and Article 10(2) of EU Regulation No 537/2014 on specific requirements regarding statutory audit of public-interest entities. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report.

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”) and the ethical requirements in Cyprus that are relevant to our audit of the consolidated financial statements, and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the ethical requirements in Cyprus. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

We have determined that there are no key audit matters to communicate in our report.

Responsibilities of Management and Those Charged with Governance

Management is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS as adopted by the European Union, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and Article 10(2) of EU Regulation No 537/2014 will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs and Article 10(2) of EU Regulation No 537/2014, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that provides a sufficient and appropriate basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
• We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters.

Report on Other Legal and Regulatory Requirements

Pursuant to the requirements of Article 10(2) of the EU Regulation 537/2014 we provide the following information in our Independent Auditor’s Report, which is required in addition to the requirements of International Standards on Auditing.

Appointment of the Auditor and Period of Engagement

We were first appointed as auditors of the Group by the members of the Company for the audit of the consolidated financial statements for the year ended 31 December 2007. Our appointment has been renewed annually, since then, by shareholder resolution. In December 2008 the Company listed Euro denominated bonds on the Swedish Stock Exchange (NASDAQ OMX Stockholm) and accordingly the first financial year the Company qualified as an EU PIE was the year ended 31 December 2008. Since then, the total period of uninterrupted engagement appointment was 13 years.

Consistency of the Additional Report to the Audit Committee

We confirm that our audit opinion on the consolidated financial statements expressed in this report is consistent with the additional report to the Audit Committee of the Company, which we issued on 10 March 2021 in accordance with Article 11 of the EU Regulation 537/2014.

Provision of Non-audit Services

We declare that no prohibited non-audit services referred to in Article 5 of the EU Regulation 537/2014 and Section 72 of the Auditors Law of 2017 were provided. In addition, there are no non- audit services which were provided by us to the Group and which have not been disclosed in the consolidated financial statements or the consolidated management report.

Other Legal Requirements

Pursuant to the additional requirements of the Auditors Law of 2017, we report the following:

• In our opinion, based on the work undertaken in the course of our audit, the consolidated management report has been prepared in accordance with the requirements of the Cyprus Companies Law, Cap. 113, and the information given is consistent with the consolidated financial statements. In light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the consolidated management report. We have nothing to report in this respect.
• In our opinion, based on the work undertaken in the course of our audit, the information included in the corporate governance statement in accordance with the requirements of subparagraphs (iv) and (v) of paragraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113, and which is included as a specific section of the consolidated management report, have been prepared in accordance with the requirements of the Cyprus Companies Law, Cap. 113, and is consistent with the consolidated financial statements.
• In our opinion, based on the work undertaken in the course of our audit, the corporate governance statement includes all information referred to in subparagraphs (i), (ii), (iii), (vi) and (vii) of paragraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113. In light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we are required to report if we have identified material misstatements in the corporate governance statement in relation to the information disclosed for items (iv) and (v) of subparagraph 2(a) of Article 151 of the Cyprus Companies Law, Cap. 113. We have nothing to report in this respect.

Other Matter

This report, including the opinion, has been prepared for and only for the Company’s members as a body in accordance with Article 10(1) of the EU Regulation 537/2014 and Section 69 of the Auditors Law of 2017 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any other person to whose knowledge this report may come to.

The engagement partner on the audit resulting in this independent auditor’s report is George C. Kazamias.

George C. Kazamias
Certified Public Accountant and Registered Auditor
for and on behalf of PricewaterhouseCoopers Limited
Certified Public Accountants and Registered Auditors

PwC Central, 43 Demostheni Severi Avenue
CY-1080 Nicosia, Cyprus
10 March 2021

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TCS Group Holding PLC

Consolidated Statement of Financial Position

31 December 2020

In millions of RR	Note	31 December 2020	31 December 2019
ASSETS
Cash and cash equivalents	5	136,351	238,454
Mandatory cash balances with the CBRF		5,379	55,564
Due from other banks	6	1,887	3,448
Loans and advances to customers	7	376,521	329,175
Financial derivatives	8	5,035	390
Investments in securities	9	135,178	15,475
Repurchase receivables	10	-	24,064
Guarantee deposits with payment systems	11	3,133	947
Brokerage receivables	11	10,481	7,082
Current income tax assets	12	31,070	3,386
Deferred income tax assets	12	8,877	2,799
Tangible fixed assets and right-of-use assets	11	1,517	1,517
Intangible assets	11	10,560	5,435
Other financial assets		21,673	2,510
Other non-financial assets		26	26
TOTAL ASSETS		859,294	580,025
LIABILITIES
Due to banks	13	4,819	411,614
Customer accounts	14	626,837	26,078
Debt securities in issue	15	23,910	590
Financial derivatives	35	109	1,207
Brokerage payables	10	9,206	142
Deferred income tax liabilities	16	333	18,487
Subordinated debt	17	20,755	6,280
Insurance provisions	18	6,067	14,648
Other financial liabilities	18	34,337	4,874
Other non-financial liabilities		5,905	23
TOTAL LIABILITIES		732,278	483,943
EQUITY
Share capital	19	38	230
Share premium	19	26,998	26,998
Treasury shares	19	(3,238)	(3,164)
Share-based payment reserve		1,548	1,039
Retained earnings		99,540	66,880
Revaluation reserve for investments in debt securities		3,996	1,849
Equity attributable to shareholders of the Company		126,927	95,979
Non-controlling interest		89	103
TOTAL EQUITY		127,016	96,082
TOTAL LIABILITIES AND EQUITY		859,294	580,025

Approved for issue and signed on behalf of the Board of directors on 10 March 2021.

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Constantinos Economides Director

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Mary Trimithiotou Director

The notes № 1-42 are an integral part of these Consolidated Financial Statements.

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TCS Group Holding PLC

Consolidated Statement of Profit or Loss and Other Comprehensive Income

In millions of RR

	Note	2020	2019
Interest income calculated using the effective interest rate method	20	128,084	111,129
Other similar income	20	83	118
Interest expense calculated using the effective interest rate method	20	(21,581)	(21,317)
Other similar expense	20	(139)	(134)
Expenses on deposit insurance		(1,745)	(1,870)
Net margin	20	104,702	87,926
Credit loss allowance for loans and advances to customers and credit commitments	7,18	(38,972)	(26,551)
Credit loss allowance (charge)/reversal for debt securities at FVOCI	8	(369)	139
Total credit loss allowance for debt financial instruments		(39,341)	(26,412)
Net margin after credit loss allowance		65,361	61,514
Fee and commission income	21	47,609	35,858
Fee and commission expense	21	(21,599)	(15,123)
Customer acquisition expense	22	(22,588)	(18,177)
Net gains/(losses) from derivatives revaluation		4,163	(2,563)
Net (losses)/gains from foreign exchange translation		(6,850)	2,216
Net gains/(losses) from operations with foreign currencies		1,595	(968)
Net gains from disposals of debt securities at FVOCI	23	7,210	301
Net gains from financial assets at FVTPL	23	603	389
Insurance premiums earned	24	18,567	14,110
Insurance claims incurred	25	(4,891)	(4,891)
Administrative and other operating expenses		(27,852)	(27,852)
Net gains from repurchase of subordinated debt		-	-
Other operating income		-	-
Profit before tax		56,249	45,536
Income tax expense	26	(12,036)	(9,413)
Profit for the year		44,213	36,123
Other comprehensive (loss)/income
Items that may be reclassified to profit or loss
Debt securities at FVOCI and Repurchase receivables:
- Net gains arising during the year, net of tax		3,621	5,381
- Net gains reclassified to profit or loss upon disposal, net of tax		(2,147)	(5,768)
Other comprehensive (loss)/income for the year, net of tax		1,474	(387)
Total comprehensive income for the year		45,687	35,736
Profit is attributable to:
- Shareholders of the Company		44,209	36,122
- Non-controlling interest		4	1
Total comprehensive income is attributable to:
- Shareholders of the Company		45,683	35,735
- Non-controlling interest		4	1
Earnings per share for profit attributable to the Shareholders of the Company, basic (expressed in RR per share)	19	225.60	193.62
Earnings per share for profit attributable to the Shareholders of the Company, diluted (expressed in RR per share)	19	223.73	190.05

The notes № 1-42 are an integral part of these Consolidated Financial Statements.# TCS Group Holding PLC Consolidated Statement of Changes in Equity

Attributable to shareholders of the Company

In millions of RR

Share capital	Share premium	Share- based payment reserve	Revaluation reserve	Treasury shares	Investments in debt securities	Retained earnings	Total	Non-controlling Interest	Total equity
Balance at 31 December 2018	188	8,623	1,232	(1,144)	-	(3,670)	36,785	36,122	-
Profit for the year	-	-	-	-	-	-	-	-	-
Other comprehensive income:
Investments in debt securities at FVOCI and Repurchase receivables	-	-	-	5,140	-	-	5,140	5,140	1
Total comprehensive income for the year	-	-	-	5,140	-	-	5,140	41,262	1
Shares issued	19	42	-	-	-	-	18,916	18,916	(499)
Secondary public offering costs	-	-	-	-	-	-	(327)	(327)	-
Acquisition of non-controlling interest in subsidiaries	-	-	-	-	-	-	(461)	(461)	469
Share-based payment reserve	-	-	506	-	-	-	506	506	-
Dividends declared	-	-	-	-	-	(5,856)	(5,856)	(5,856)	-
Balance at 31 December 2019	230	26,998	1,039	3,996	(3,164)	(3,670)	66,880	95,979	103
Profit for the year	-	-	-	-	-	44,209	44,209	44,209	4
Other comprehensive loss:
Investments in debt securities at FVOCI and Repurchase receivables	-	-	-	(2,147)	-	-	(2,147)	(2,147)	-
Total comprehensive (loss)/income for the year	-	-	-	(2,147)	-	44,209	42,062	42,062	4
GDRs buy-back	-	-	-	-	-	(661)	(661)	(661)	-
Share-based payment reserve	-	-	587	-	-	-	587	587	-
Dividends declared	-	-	-	-	-	(11,545)	(11,545)	(11,545)	-
Balance at 31 December 2020	230	26,998	1,548	1,849	(3,238)	99,540	126,927	126,927	89

The notes № 1-42 are an integral part of these Consolidated Financial Statements.

TCS Group Holding PLC Consolidated Statement of Cash Flows

In millions of RR

Note	2020	2019
Cash flows from operating activities
Interest income received calculated using the effective interest rate method	129,555	107,854
Other similar income received	11	175
Interest expense paid calculated using the effective interest rate method	(22,280)	(21,334)
Recoveries from written-off loans	4,063	3,420
Expenses on deposits insurance paid	(1,792)	(1,673)
Fees and commissions received	47,613	35,802
Fees and commissions paid	(22,236)	(15,993)
Customer acquisition expense paid	(1,673)	(19,272)
Gains/(losses) from operations with foreign currencies received/(paid)	(968)	(934)
Losses from operations with derivatives paid	(647)	(4,337)
Insurance premiums received	18,193	693
Insurance claims paid	(3,629)	1,053
Recoveries from the purchased loans received	1,750	1,137
Other operating income received	16,254	(30,456)
Administrative and other operating expenses paid	(12,930)	(26,119)
Income tax paid	(13,606)	(13,606)
Cash flows from operating activities before changes in operating assets and liabilities	87,696	61,386
Changes in operating assets and liabilities
Net increase in CBRF mandatory reserves	(1,931)	(1,013)
Net decrease/(increase) in due from banks	197	(1,308)
Net increase in loans and advances to customers	(151,771)	(81,724)
Net increase in brokerage receivables	(2,799)	(21,265)
Net (increase)/decrease in debt securities measured at FVTPL	5,879	(3,788)
Net increase in guarantee deposits with payment systems	(4,848)	(4,325)
Net increase in other financial assets	(4,046)	(9,708)
Net (increase)/decrease in other non-financial assets	(1,038)	4,777
Net increase/(decrease) in due to banks	2,685	7,999
Net increase in customer accounts	135,633	201,922
Net increase in brokerage payables	1,207	16,512
Net increase in other financial liabilities	(39)	(524)
Net decrease in non-financial liabilities	1,387	(1,038)
Net cash from operating activities	195,285	36,517
Cash flows (used in)/from investing activities
Acquisition of tangible fixed assets	(2,076)	(1,783)
Acquisition of intangible assets	(3,642)	(2,539)
Acquisition of investments in securities, repurchase receivables and other investments	(375,444)	(108,246)
Proceeds from sale and redemption of investments in securities	282,288	71,000
Net cash used in investing activities	(98,874)	(41,568)
Cash flows (used in)/from financing activities
Dividends paid	(11,853)	(5,601)
Repayment of debt securities in issue	(2,894)	(6,583)
Repayment of subordinated debt	(1,937)	-
GDRs buy-back	(661)	(1,087)
Repayment of principal of lease liabilities	(758)	-
Proceeds from subordinated debt	710	46
Proceeds from debt securities in issue	(5,601)	23,254
Proceeds from secondary public offering	-	18,916
Secondary public offering costs paid	-	(499)
Other financing activities cash flows	-	(461)
Net cash (used in)/from financing activities	(17,062)	1,438
Effect of exchange rate changes on cash and cash equivalents	27	331
Net increase in cash and cash equivalents	80,787	55,564
Cash and cash equivalents at the beginning of the year	55,564	136,351
Cash and cash equivalents at the end of the year	136,351	55,564

The notes № 1-42 are an integral part of these Consolidated Financial Statements.

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

1 Introduction

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”) for the year ended 31 December 2020 for TCS Group Holding PLC (the “Company”) and its subsidiaries (together referred to as the “Group”), and in accordance with the requirements of the Cyprus Companies Law, Cap.113.

The Company was incorporated, and is domiciled, in Cyprus in accordance with the provisions of the Companies Law, Cap. 113. The Board of directors of the Company at the date of authorisation of these consolidated financial statements consists of: Constantinos Economides, Alexios Ioannides, Mary Trimithiotou, Jacques Der Megreditchian and Martin Robert Cocker. The Company Secretary is Caelion Secretarial Limited, 25 Spyrou Araouzou, 25 Berengaria, 5th floor, Limassol 3036, Cyprus.

At 31 December 2020 and 2019 the share capital of the Company is comprised of class A shares and class B shares. A “class A” share is an ordinary share with a nominal value of USD 0.04 per share and carrying one vote. A “class B” share is an ordinary share with a nominal value of USD 0.04 per share and carrying 10 votes. As at 31 December 2020 the number of issued class A shares is 129,391,449 (2019: 119,291,268) and issued class B shares is 69,914,043 (2019: 80,014,224). Refer to Note 19 for further information on the share capital.

On 25 October 2013 the Group completed an initial public offering of its class A ordinary shares in the form of global depository receipts (GDRs) listed on the London Stock Exchange plc. On 2 July 2019 the Group completed a secondary public offering (SPO) of its class A shares in the form of GDRs. On 28 October 2019 the Group’s GDRs started trading also on the Moscow Exchange.

As at 31 December 2020 and 2019 the entities and the individuals holding either class A or class B shares of the Company were:

Class of shares	31 December 2020	31 December 2019	Country of Incorporation
Guaranty Nominees Limited (JP Morgan Chase Bank NA)	Class A	64.92%	59.85%
Virtue Trustees (Switzerland) AG as Trustee of the Bernina Trust	Class B	18.47%	-
Virtue Trustees (Switzerland) AG as Trustee of the Rigi Trust	Class B	16.61%	21.68%
Ioanna Georgiou	Class A	0.00%	0.00%
Panagiota Charalambous	Class A	0.00%	0.00%
Maria Vyra	Class A	0.00%	0.00%
Chloi Panagiotou	Class A	0.00%	0.00%
Leonora Chagianni	Class A	0.00%	0.00%
Antonis Strati	Class A	0.00%	0.00%
Marios Panayides	Class A	0.00%	0.00%
Altoville Holdings Limited	Class B	-	18.47%
Nemorenti Limited	Class B	-	21.68%
Total		100.00%	100.00%

Guaranty Nominees Limited is a company holding class A shares of the Company for which GDRs are issued under a deposit agreement made between the Company and JP Morgan Chase Bank NA signed in October 2013. On 19 March 2020 Altoville Holdings Limited and Nemorenti Limited transferred all of the Company’s class B shares owned by them to two Tinkov family trusts. Russian entrepreneur Mr. Oleg Tinkov, who was the beneficial owner of Altoville Holdings Limited and Nemorenti Limited at 31 December 2019, remained the ultimate beneficiary of these B shares.

1 Introduction (Continued)

On 14 December 2020 10,100,181 class B shares of the Group held by the Rigi Trust were converted to class A shares. As a result of the conversion, Mr. Oleg Tinkov's voting rights in the Group decreased from 87.03% to 84.38%. As at 31 December 2020 the ultimate controlling party of the Company was Mr. Oleg Tinkov, who controlled approximately 84.38% (2019: 87.03%) of the aggregated voting rights attached to the class A and B shares, excluding voting rights attaching to TCS Group Holding PLC GDRs he holds, if any.

On 7 January 2021 all 69,914,043 class B shares (35.08% of the total number of issued shares) held by the Rigi Trust and the Bernina Trust were converted to class A shares, and on the same date all issued shares were reclassified and redesignated as ordinary shares. Following the conversion, each share carries a single vote, and the total number of votes capable of being exercised are equal to the total number of issued shares (currently 199,305,492 shares following the class B share conversion). The number of GDRs in issue remained unchanged. As a result of the conversion, Mr. Oleg Tinkov's voting rights in the Group decreased from 84.38% to 35.08%. As a result his control over the Group was ceased.

As at 31 December 2020 and 2019 the six individuals listed in the table above each held one share. The individuals hold them as nominees of Mr. Oleg Tinkov (31 December 2019: as nominees of Altoville Holdings Limited). The subsidiaries of the Group are set out below.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

1 Introduction

Except where stated the Group owns 100% of shares and has 100% of voting rights of each of these subsidiaries as at 31 December 2020 and 2019. JSC “Tinkoff Bank” (the “Bank”) provides on-line retail banking services in Russia. The Bank specialises in issuing credit cards and other credit products. JSC “Tinkoff Insurance” (the “Insurance Company”) provides insurance services such as accident, property, travellers, financial risks and auto insurance. LLC Microfinance company “Т-Finans” provides micro-finance services. TCS Finance D.A.C. is a structured entity which issued debt securities including subordinated perpetual bonds for the Group. The Group neither owns shares nor has voting rights in this company. However, this entity was consolidated as it was specifically set up for the purposes of the Group, and the Group has exposure to substantially all risks and rewards through outstanding guarantees of the entity’s obligations. LLC “TCS” provides printing, distribution and other services to the Group. LLC “Phoenix” is a debt collection agency. LLC “Tinkoff Software DC” and LLC “Fintech DC” provide software development services. In August 2020 the Group acquired a 22.15% shareholding in Incantus Holding Limited by transferring its 100% shareholding in LLC “Fintech DC” to Incantus Holding Limited and by providing a convertible loan (Notes 7 and 38). Incantus Holding Limited is a group of fintech start-ups launched in 2020 to provide a range of services to retail customers in Europe (excluding CIS) through the mobile banking platform Vivid Money. In October 2020 a new venture capital fund has invested into the share capital of Incantus Holding Limited. As a result the Company’s shareholding in Incantus Holding Limited has decreased to 16.32%. LLC “Tinkoff Mobile” is a mobile virtual network operator set up in 2017 to provide mobile services. LLC “CloudPayments” is a developer of online payment solutions whose core business is online merchant acquiring in Russia. As at 31 December 2020 and 2019 the Group held 95% of the shares of LLC “CloudPayments”. ANO “Tinkoff Education” is a non-commercial organization set up by the Bank as the sole founder. LLC “Tinkoff Capital” is an asset management company established in June 2019 to manage investment funds, mutual funds and non-state pension funds. LLC “Tinkoff Invest Lab” is an infrastructure company created for supporting and optimizing of the Group’s investment services.

EBT is a special purpose trust which has been specifically created for the long-term incentive programme for Management of the Group (MLTIP). The Group neither owns shares nor has voting rights in EBT.

Principal activity.

The Group’s principal business activities are retail banking to private individuals, individual entrepreneurs’ (“IE”) and small and medium enterprises’ (“SME”) accounts and banking services, brokerage services and insurance operations within the Russian Federation through the Bank and the Insurance Company. The Bank operates under general banking license No. 2673 issued by the Central Bank of the Russian Federation (“CBRF”) on 8 December 2006. The Insurance Company operates under an insurance license issued by the CBRF. The Bank participates in the state deposit insurance scheme, which was introduced by Federal Law No. 177-FZ “Deposits insurance in banks of the Russian Federation” dated 23 December 2003. The State Deposit Insurance Agency guarantees repayment of up to RR 1.4 million per individual, individual entrepreneur and small enterprise deposits in case of the withdrawal of a license of a bank or a CBRF- imposed moratorium on payments.

Registered address and place of business.

The Company’s registered address is 25 Spyrou Araouzou, Berengaria 25, 5th floor, Limassol, Cyprus, and place of business is Office 403, Lophitis Business Centre I, Corner of 28th October/Emiliou Chourmouziou Streets, Limassol 3035 Cyprus. The Bank’s registered address is 1-st Volokolamsky proezd, 10, building 1, 123060, Moscow, Russian Federation. The Insurance Company’s registered address is 2-nd Khutorskaya Street, building 38A, 127287, Moscow, Russian Federation. The Group’s principal place of business is the Russian Federation.

Presentation currency.

These consolidated financial statements are presented in millions of Russian Rubles (RR).

2 Operating Environment of the Group

Russian Federation.

The Group operates mainly within the Russian Federation. There were a number of significant changes in the operating and economic environment during 2020, which had an impact on the Group’s business including:

• In March 2020 the World Health Organization (WHO) announced that the spread of the COVID-19 virus across the globe is a pandemic. Significant restrictions on travel and movement of individuals and the closure of non-essential businesses have either been imposed in most countries or have happened as a result of the pandemic. This has led to significant declines in GDP in most if not all large economically strong countries. Russia has not been immune to the negative personal and economic hardships arising from this virus and from the response to it trying to limit its spread.
• Oil prices have decreased significantly due to the significant reduction in oil consumption in the current economic climate but demonstrated stable growth during the second quarter of 2020 and the rest of the year. This in turn has led to significant volatility and depreciation of the Russian Rouble exchange rate against the US dollar and the Euro. Further, the capital markets (equities and bonds) have seen a substantial volatility in prices in many sectors. As of the reporting date and subsequently some of the restrictions imposed by government authorities in the Russian Federation due to the COVID-19 pandemic have been lifted and the Group observes that business activity in the Russian Federation is recovering. However, the level of ongoing uncertainty in relation to further negative developments around the COVID-19 pandemic and possible impact on the Group remains high. Hence it is practically impossible to make a comprehensive quantitative assessment with a high degree of certainty of the impact of these changes to the economic environment on the Group’s financial position, and in particular in considering credit loss allowances on the loan portfolio which requires to consider the probability of default of most borrowers in the next 12 months and for others over the life of their loan. Some other factors impacting on this are set out below.

The Government of the Russian Federation has implemented various support measures for individuals and corporates impacted by the COVID-19 pandemic including their right in certain circumstances to obtain repayment holidays on their loans for up to 6 months and reduced rates of interest in this period. The Group has itself implemented several measures to support its clients, especially those who face financial difficulties and a significant decrease of current income due to the situation, including the below:

• proposing internally developed loan restructuring programs as an alternative to the State announced programs which will result in either deferral or decrease in the minimal payments of outstanding loan balance for one or more months;
• broadened cashback offers for debit cards more tailored to customer individual needs and spending behaviour;
• provided several educational resources on its mobile app and website for borrowers to learn how to deal with potential unemployment or income decline, and how to request and obtain the most suitable debt restructuring program;
• supported its small and medium-sized entities client base during the pandemic by lowering acquiring and account fees, offering payment holidays, helping SMEs to move online and launching 0% loans to pay salaries in partnership with the Russian Bank for SME support.

According to IFRS 9 “Financial Instruments”, the Group uses forecast information in the expected credit loss models, including forecasts of macroeconomic indicators. For the purpose of calculating credit loss allowances as at 31 December 2020, the Group took into account expectations regarding the following macro-factors and allocated higher weight to the pessimistic macroeconomic scenario:

• Russian stock market index MOEX;
• Moscow Prime Offered Rate;
• Debt load of Russian population based on statistics from bureaus of credit history.

In order to reflect appropriately the uncertainty associated with the COVID-19 pandemic the Group has made the following changes to their ECL model:

• the macro-adjustment calculation approach was refined to reflect the most recent impact of economic developments;
• an adjustment to the loss given default was made to address lower expected recoveries during the upcoming quarters;
• higher probabilities of default were applied to the loans which have been restructured.

More detailed information about the changes and their impact on the results of the Group’s operations for the year ended 31 December 2020 is disclosed in Note 3.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

2 Operating Environment of the Group (Continued)

The management of the Group considers that the Group has demonstrated over the years and during the current COVID-crisis its ability to withstand shocks and retains its positive long-term outlook in particular due to the following advantages of the Group’s business model:
* using flexible business structure, the Group swiftly shifted some of its resources from businesses that were needed to run more conservatively to businesses with higher growth prospects;
* the Group has a highly liquid, diversified, foreign exchange hedged, and well-capitalized consolidated statement of financial position;
* the Group’s digital model is exactly what is needed in the current environment and this can be seen in the ongoing increased online payment volumes as well as increased take up of its mobile lifestyle app, current accounts, and brokerage business;

The Group regularly stress tests its business to assess the sustainability of its liquidity and capital positions. These tests demonstrate that Group’s current levels of capital and liquidity are more than sufficient to absorb potential economic and operational shocks related to a second wave of the COVID-19 pandemic.

3 Critical Accounting Estimates and Judgements in Applying Accounting Policies

The Group makes estimates and assumptions that affect the amounts recognized in the consolidated financial statements and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management also makes certain judgements, apart from those involving estimations, in the process of applying the accounting policies. Judgements that have the most significant effect on the amounts recognized in the consolidated financial statements and estimates that can cause a significant adjustment to the carrying amount of assets and liabilities within the next financial year include:

ECL measurement. Calculation and measurement of ECLs is an area of significant judgement and involves methodology, models and data inputs. The following components of ECL calculation have a major impact on credit loss allowance: probability of default (“PD”) (impacted by definition of default, SICR, forward- looking scenarios and theirs weights) and loss given default (“LGD”). Refer to Note 29 for explanation of terms.

The Group makes estimates and judgments, which are constantly analyzed based on statistical data, actual and forecast information, as well as management experience, including expectations regarding future events that are considered reasonable in the current circumstances. Refer to Note 29 for further information on ECL measurement.

In order to address rising credit risks the Group adjusted the main approaches to assessing the level of expected credit losses that have the most significant effect on the amounts recognised in the consolidated financial statements:
* the macroeconomic model has become more conservative, based on different scenarios: base, optimistic and pessimistic, and higher weight is assigned to the pessimistic scenario;
* for loans in default the Group has applied increased coefficients of LGD;
* the Group has estimated the volume of loans to individuals which were restructured despite no evidence of any SICR, as of the reporting date and applied higher PDs to such loans for the purposes of estimation of expected credit losses;

The impact of the changed macroeconomic conditions assessed using the approaches described above was approximately RR 5.6 billion of additional credit loss allowance charge in the first half of 2020 and was the main driver of increased cost of risk. This additional credit loss allowance was charged at the end of the first quarter of 2020 in the early days of the pandemic. Despite most problems arising from such loans have rolled into the general ECL model, and also most loans that were restructured in early 2020 as a result of the government of the Russian Federation and the bank’s response to the pandemic have subsequently been repaid and/or normalised, but given the unpredictability of current economic environment and uncertainty regarding its development the Group made a decision to keep the macro-adjustment at this level at 31 December 2020.

In the second quarter of 2020 for the purposes of LGD estimation the Group has refined the approach to calculation of the rate used for discounting expected cash flows from defaulted loans. The refined approach is that the Group uses more disaggregated and specific discount rates for each credit product in the overall loan portfolio of the Group rather than one generic rate, which makes the estimate more precise. The impact of introducing this change comprised RR 0.9 billion of additional credit loss allowance charge.

In the fourth quarter of 2020 having accumulated additional information the Group has refined its behavioural PD model used for PD estimation for credit card loans. Also the Group has refined PD models for secured loans and car loans using the most recent statistical data. The impact of introducing these changes comprised RR 0.2 billion of credit loss allowance recovery.

In 2020 the Group has refined its approach to calculation of the impact of modification of original cash flows without derecognition on stage 3 loans credit loss allowance and gross carrying amount (refer to Note 7).

3 Critical Accounting Estimates and Judgements in Applying Accounting Policies (Continued)

In particular the Group refined the approach to estimation of timing of receipt of expected cash flows and related discounting effect. This refinement has not affected either amounts recognised in the consolidated statement of profit or loss and other comprehensive income or the amounts recognised in consolidated statement of financial position.

An increase or decrease in PDs by 2% compared to PDs used in the ECL estimates calculated at 31 December 2020 would result in an increase or decrease in credit loss allowances of RR 5.2 billion (31 December 2019: by 1% RR 2.1 billion).

An increase or decrease in LGDs by 2% compared to LGDs used in the ECL estimates calculated at 31 December 2020 would result in an increase or decrease in credit loss allowances of RR 1.5 billion (31 December 2019: by 1% RR 0.5 billion).

Credit exposure on revolving credit facilities. For credit card loans, the Group's exposure to credit losses extends beyond the maximum contractual period of the facility. For such facilities the Group measures ECLs over the period that the Group is exposed to credit risk and ECLs are not mitigated by credit risk management actions. Application of this approach requires judgement: determining a period for measuring ECLs ‒ the Group considers historical information and experience about: (a) the length of time for related defaults to occur on similar financial instruments following a SICR and (b) the credit risk management actions that the Group expects to take once the credit risk has increased (e.g. the reduction or removal of undrawn limits). For details of the period over which the Group is exposed to credit risk on revolving facilities and which is used as an approximation of lifetime period for ECL calculation for stage 2 and stage 3 loans and advances to customers, refer to Note 29.

Perpetual subordinated bonds. A perpetual subordinated bond issue in June 2017 was initially recognised in the amount of USD 295.8 million (RR 16.9 billion) represented by the funds received from investors less issuance costs. Subsequent measurement of this instrument is consistent with the accounting policy for debt securities in issue. Interest expense on the instrument is calculated using the effective interest rate method and recognised in profit or loss for the year. In the event the accrued interest is paid, the payment decreases the balance of the liability. A cancellation of accrued interest for a given period results in its conversion, at the Group's option, into equity and therefore the respective amount of the liability is reclassified to equity. Foreign exchange translation gains and losses on the bond are recognised in profit or loss for the period.

Application of this approach requires judgement: the Group has taken into consideration that there are contingent settlement provisions that could genuinely arise and as such has classified the perpetual subordinated bond instrument in its entirety as a liability, rather than equity, on the basis of the terms of issue which stipulate the possible redemption of the instrument in several cases other than liquidation of the issuer. If the Group had recognized this instrument as equity, then interest expense would only have been recognized when it was paid and treated as a distribution from equity rather than an expense in profit or loss.

The Group also from time to time invests in perpetual subordinated bonds issued by third parties. The Group has taken into consideration that there are genuine contingent settlement provisions that could arise and as such has classified the investments in perpetual subordinated bonds as investments in debt securities on the basis of terms of issue which stipulate the possible redemption of the instrument in several cases other than liquidation of the issuer. The investments in these instruments are classified as debt investment securities measured at FVTPL since the analysis of the contractual cash flow characteristics resulted in acquired perpetual bonds not passing SPPI test.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

3 Critical Accounting Estimates and Judgements in Applying Accounting Policies (Continued)

If the Group had recognized this instrument as equity instrument, then it could have been measured at FVTPL or FVOCI as the Group does not hold it for trading purposes. Interest income recognition. The effective interest method incorporates significant assumptions around expected loan lives as well as judgements of type of fees and costs that are included in interest income. Refer to Note 40.

Unbundling of loans and insurance products.

Certain loans issued by the Group are forgivable upon events such as the borrower's death, or the borrower becoming unemployed because the borrower had opted to purchase the Insurance Company's products to cover repayments of the related loan products issued by the Bank in such cases. The Group is able to measure the loans separately. Also the borrowers are able to take a loan without insurance at the time of issuance with no different interest rate and the borrowers can cancel the insurance products at any time, separately from the loan. Accordingly, the Group unbundles the loans from the insurance arrangement. The portion of the fee attributable to the insurance component (i.e. the amount paid to the Insurance Company to cover the insured risk) is recognised within Insurance premiums earned line (refer to Note 23). The remaining portion of the fee approximates a fee that the Bank would have earned on market terms for selling third party insurance products and it is recognised as a fee for selling credit protection within Fee and commission income line (refer to Note 21). The timing of recognition of the two income streams does not materially vary as the insurance coverage is sold on a monthly basis.

Tax legislation.

Russian and Cypriot tax, currency and customs legislation are subject to varying interpretations. Refer to Note 31.

4 Segment Analysis

Operating segments are components that engage in business activities that may earn revenues or incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM) and for which discrete financial information is available. The CODM is the person or group of persons who allocates resources and assesses the performance for the Group. The functions of CODM are performed by the Management of the Bank and the Management of the Insurance Company.

Description of products and services from which each reportable segment derives its revenue

Since the business of the Group is expanding certain operating segments became significant enough to be considered as separate reportable segments. This triggered changes in the number and composition of segments to be presented. Disclosures for comparative periods were amended accordingly. The Group is organised on the basis of 7 main business segments:

• Consumer finance – representing retail loans (credit cards, cash loans, consumer loans, car loans, secured loans), deposits and savings, also lifestyles and travel services to individuals.
• Retail debit cards – representing customer current accounts services to individuals with the loyalty programmes, co-branded offers, and also lifestyles and travel services to individuals. Assets of the segment are represented by placements of the funds attracted in investments in securities, treasury transactions, other financial and non-financial assets.
• InsurTech – representing insurance services provided to individuals, such as personal accident insurance, personal property insurance, travel insurance and vehicle insurance (Note 23).
• SME services – representing customer current accounts, savings, deposits services and loans to individual entrepreneurs and small to medium businesses. Assets of the segment are represented by placements of the funds attracted into investments in securities, treasury transactions, other financial and non-financial assets.
• Acquiring and payments – providing merchants and businesses the ability to process payments online using internet and offline acquiring services, through direct-to-merchant agreements, aggregators and the Group's own aggregator CloudPayments.
• InvestTech - representing online brokerage platform for investing in a range of securities including Russian and international securities (ETFs, stocks, bonds, etc.).
• Mobile virtual network operator (MVNO) services - providing full coverage across Russia and international roaming, offering a number of value-added options such as virtual numbers, music and video streaming services, etc.

The Group’s principal activities are mainly undertaken within the Russian Federation. Given the retail nature of business of the segments, the Group does not have any significant revenue stream from any single customer.

Factors that management used to identify the reportable segments

The Group’s segments are strategic business units that focus on different services to the customers of the Group. Their performance is analysed separately by the CODM and they are managed separately because each business unit requires different marketing strategies and represents different types of businesses.

Measurement of operating segment profit or loss, assets and liabilities

The CODM reviews financial information prepared based on International financial reporting standards adjusted to meet the requirements of internal reporting. The CODM evaluates performance of each segment based on profit before tax.

Information about reportable segment assets and liabilities, profit or loss

Segment reporting of the Group’s assets and liabilities as at 31 December 2020 is set out below:

	Consumer Finance	Retail Debit Cards	Insur- Tech	SME Services	Acquiring and Payments	Invest- Tech	MVNO services	Elimina- tions	Total
In millions of RR
Reportable segment assets	458,245	203,723	245,923	345,585	12,437	6,901	55,517	(2,919)	859,294
Reportable segment liabilities	203,723	245,923	345,585	12,437	6,901	55,517	91,412	(2,919)	732,278

Segment reporting of the Group’s assets and liabilities as at 31 December 2019 is set out below:

	Consumer Finance	Retail Debit Cards	Insur- Tech	SME Services	Acquiring and Payments	Invest- Tech	MVNO services	Elimina- tions	Total
In millions of RR
Reportable segment assets	386,690	198,057	135,925	205,840	10,911	7,032	36,566	(4,279)	580,025
Reportable segment liabilities	198,057	135,925	205,840	10,911	7,032	36,566	62,054	(4,279)	483,943

All jointly used assets, such as fixed assets, rights of use assets and intangible assets were allocated to the segments on the basis of detailed analysis of usage of those assets by segments.

Segment reporting of the Group’s income and expenses for the year ended 31 December 2020 is set out below:

In millions of RR	Consumer Finance	Retail Debit Cards	Insur- Tech	SME Services	Acquiring and Payments	Invest- Tech	MVNO services	Elimina- tions	Total
External revenues
Interest income calculated using the effective interest rate method	113,494	9,092	409	2,358	-	2,804	10	-	128,167
Fee and commission income
- Fee and commission income on cards' and current accounts' services	2,715	4,657	11,154	-	-	-	-	-	23,292
- Fee for selling credit protection	-	-	-	261	15	1,815	-	-	4,657
- Acquiring commission	9,147	-	23,292	4,657	11,049	6,813	1,798	-	47,609
MVNO and investments services	-	-	-	-	-	-	11,049	-	11,049
- Other fees receivable	739	982	77	5,346	3,801	11,126	4,927	511	33,208
Timing of fee and commission income recognition:
- At point in time	5,906	2,205	10,396	1,740	-	5,346	3,801	1,319	30,713
- Over time	6,038	3,434	753	3,516	11,152	1,278	1,126	(808)	26,388
Total fee and commission income	12,136	9,147	11,231	10,517	11,164	18,392	17,903	(298)	90,488
Insurance premiums earned	-	-	18,567	-	-	-	-	-	18,567
Other operating income	250	-	-	26	-	-	-	-	276
Total external revenues	125,949	9,092	23,273	14,191	11,164	21,196	17,913	(298)	222,579
Revenues from other segments
Interest income	-	2,737	56	1,244	-	-	-	(4,037)	-
Fee and commission income
- Acquiring commission	-	2	-	-	-	-	-	(2)	-
- Other fees receivable	-	-	72	-	-	-	-	(72)	-
Insurance premiums earned	-	-	-	-	-	-	-	(632)	(632)
Other operating income	-	-	-	-	-	-	-	371	371
Total revenues from other segments	-	2,739	128	1,244	-	-	-	(4,370)	(261)
TOTAL REVENUES	125,949	11,831	23,401	15,435	11,164	21,196	17,913	(4,668)	222,318
Interest expense	(16,965)	(38,243)	(1,889)	(12,466)	-	(9,322)	(372)	(9,266)	(88,491)
Credit loss allowance charge	(4,042)	(1,215)	(726)	(1,385)	-	-	-	-	(7,368)
Fee and commission expense	(1,491)	(3,111)	-	(2,027)	-	(1,214)	(1,028)	(961)	(9,832)
Customer acquisition expense	(311)	-	(1,656)	-	-	(1,143)	(3,842)	(3,759)	(10,711)
Insurance claims incurred	219	(17,304)	(610)	(5,698)	5,935	(4,322)	1,345	106	(19,328)
Administrative and other operating expenses	(1,760)	(1,154)	(3,636)	(2,220)	(2,176)	(834)	(167)	(1,684)	(13,635)
Other (losses)/ gains	(2,835)	(3,405)	(1,018)	(1,746)	(3,759)	(730)	(532)	5,935	(8,050)
SEGMENT RESULT	85,504	(11,534)	15,376	(7,037)	11,264	4,283	12,175	(1,190)	97,775

Segment reporting of the Group’s income and expenses for the year ended 31 December 2019 is set out below:

In millions of RR	Consumer Finance	Retail Debit Cards	Insur- Tech	SME Services	Acquiring and Payments	Invest- Tech	MVNO services	Elimina- tions	Total
External revenues
Interest income calculated using the effective interest rate method	103,077	5,673	322	1,883	-	284	8	-	111,247
Fee and commission income
- Fee and commission income on cards' and current accounts' services	2,665	5,550	8,759	-	-	-	-	-	19,339
- Fee for selling credit protection	-	-	-	33	-	635	-	-	8,759
- Acquiring commission	7,867	-	19,339	5,550	8,342	1,525	1,102	-	43,725
MVNO and investments services	-	-	-	-	-	-	8,342	-	8,342
- Other fees receivable	456	592	54	6,331	5,818	11,913	5,374	1,416	31,954
Timing of fee and commission income recognition:
- At point in time	5,768	1,807	7,941	1,315	-	5,005	3,329	1,136	26,301
- Over time	5,220	3,230	545	5,016	8,342	1,913	2,045	(280)	26,031
Total fee and commission income	12,084	8,779	8,540	13,214	8,342	18,453	17,088	(250)	86,249
Insurance premiums earned	-	-	17,743	-	-	-	-	-	17,743
Other operating income	134	-	-	56	-	-	-	-	190
Total external revenues	115,295	14,452	18,099	15,153	8,342	18,737	17,096	(250)	198,884
Revenues from other segments
Interest income	-	2,737	56	1,244	-	-	-	(4,037)	-
Fee and commission income
- Acquiring commission	-	2	-	-	-	-	-	(2)	-
- Other fees receivable	-	-	72	-	-	-	-	(72)	-
Insurance premiums earned	-	-	-	-	-	-	-	(632)	(632)
Other operating income	-	-	-	-	-	-	-	371	371
Total revenues from other segments	-	2,739	128	1,244	-	-	-	(4,370)	(261)
TOTAL REVENUES	115,295	17,191	18,227	16,397	8,342	18,737	17,096	(4,620)	198,623
Interest expense	(16,965)	(38,243)	(1,889)	(12,466)	-	(9,322)	(372)	(9,266)	(88,491)
Credit loss allowance charge	(4,042)	(1,215)	(726)	(1,385)	-	-	-	-	(7,368)
Fee and commission expense	(1,491)	(3,111)	-	(2,027)	-	(1,214)	(1,028)	(961)	(9,832)
Customer acquisition expense	(311)	-	(1,656)	-	-	(1,143)	(3,842)	(3,759)	(10,711)
Insurance claims incurred	219	(17,304)	(610)	(5,698)	5,935	(4,322)	1,345	106	(19,328)
Administrative and other operating expenses	(1,760)	(1,154)	(3,636)	(2,220)	(2,176)	(834)	(167)	(1,684)	(13,635)
Other (losses)/ gains	(2,835)	(3,405)	(1,018)	(1,746)	(3,759)	(730)	(532)	5,935	(8,050)
SEGMENT RESULT	85,504	(11,534)	15,376	(7,037)	11,264	4,283	12,175	(1,190)	97,775

13# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

4 Segment Analysis (Continued)

Fee and commission income on cards’ and current accounts’ services include SME services commission, SMS fee, interchange fee, foreign currency exchange transactions fee, fee for money transfers, cash withdrawal fee and replenishment fee.

Interest income and interest expense from other segments amounted to RR 4,037 million for the year ended 31 December 2020 (2019: RR 5,150 million) are calculated using the funds transfer pricing curve.

5 Cash and Cash Equivalents

In millions of RR	31 December 2020	31 December 2019
Cash on hand	21,069	38,646
Cash balances with the CBRF (other than mandatory reserve deposits)	11,118	16,599
Placements with other banks with original maturities of less than three months:
- AA- to AA+ rated	6,404	599
- A- to A+ rated	1,328	1,430
- BBB- to BBB+ rated	1,276	503
- BB- to BB+ rated	646	67
- B- to B+ rated	2,302	499
- CCC+ rated	-	2
Non-bank credit organizations:
- BBB- to BBB+ rated	53,764	20,088
- Unrated	12,719	2,856
Total Cash and Cash Equivalents	136,351	55,564

Cash on hand includes cash balances in ATMs and cash balances in transit.

Placements with other banks and organizations with original maturities of less than three months include placements under reverse sale and repurchase agreements in the amount of RR 33,210 million as at 31 December 2020 (31 December 2019: RR 18,449 million). The Group has a right to sell or repledge securities received under reverse sale and repurchase agreements.

The table below discloses the credit quality of cash and cash equivalents balances based on credit risk grades at 31 December 2020:

In millions of RR	Excellent	Good	Monitor	Sub-standard	Total
Cash balances with the CBRF	-	7,732	55,686	12,956	76,374
Placements with other banks and non-bank credit organizations	-	262	7,732	94,332	102,326
Total	-	2,901	22,023	38,622	63,546
Total cash and cash equivalents, excluding cash on hand					115,282

Note: The table above seems to have discrepancies in the "Total" and "Total cash and cash equivalents, excluding cash on hand" rows. The provided data does not sum up as expected. I have reproduced it as given.

The table below discloses the credit quality of cash and cash equivalents balances based on credit risk grades at 31 December 2019:

In millions of RR	Excellent	Good	Monitor	Doubtful	Total
Cash balances with the CBRF	-	2,901	22,023	2,921	27,847
Placements with other banks and non-bank credit organizations	-	2	2,901	16,599	19,502
Total	-	2,903	24,924	19,520	47,349
Total cash and cash equivalents, excluding cash on hand					44,446

Note: Similar to the 2020 table, the "Total" and "Total cash and cash equivalents, excluding cash on hand" rows do not sum up correctly based on the provided data.

The carrying amount of cash and cash equivalents at 31 December 2020 and 2019 also represents the Group’s maximum exposure to credit risk on these assets. Refer to Note 29 for the description of the Group’s credit risk grading system.

For the purpose of ECL measurement cash and cash equivalents balances are included in Stage 1 for excellent, good and monitor credit quality, in Stage 2 for sub-standard and Stage 3 for doubtful credit quality. The ECL for these balances represents an immaterial amount, therefore the Group did not recognise any credit loss allowance for cash and cash equivalents.

Except for reverse sale and repurchase agreements, amounts of cash and cash equivalents are not collateralised. As at 31 December 2020 the fair value of collateral under reverse sale and repurchase agreements was RR 34,527 million (31 December 2019: RR 20,130 million). There is no material impact of collateral on credit loss allowance for cash and cash equivalents. Refer to Note 36 for the disclosure of the fair value of cash and cash equivalents.

ECL measurement approach, interest rate, maturity and geographical risk concentration analysis of cash and cash equivalents are disclosed in Note 29.

6 Due from Other Banks

In millions of RR	31 December 2020	31 December 2019
Placements with other banks with original maturities of more than three months
- BBB- rated	1,406	1,419
- BB- to BB+ rated	481	461
- B- to B+ rated	204	-
Total due from other banks	1,887	2,084

The table below discloses the credit quality of due from banks balances based on credit risk grades:

In millions of RR	31 December 2020	31 December 2019
Good	1,406	1,577
Monitor	481	507
Total due from other banks	1,887	2,084

The carrying amount of due from other banks at 31 December 2020 and 2019 also represents the Group’s maximum exposure to credit risk on these assets. Refer to Note 29 for the description of credit risk grading system used by the Group.

For the purpose of ECL measurement due from other banks balances are included in Stage 1. The ECL for these balances represents an immaterial amount, therefore the Group did not create any credit loss allowance for due from other banks. Refer to Note 29 for the ECL measurement approach. Refer to Note 36 for the disclosure of the fair value of due from other banks. Interest rate, maturity and geographical risk concentration analysis are disclosed in Note 29.

7 Loans and Advances to Customers

In millions of RR	31 December 2020	31 December 2019
Gross carrying amount of loans and advances to customers at AC	445,529	383,912
Less credit loss allowance	(70,900)	(54,737)
Total carrying amount of loans and advances to customers at AC	374,629	329,175
Loans and advances to customers at FVTPL	1,892	-
Total loans and advances to customers	376,521	329,175

Loans and advances to customers at FVTPL represent a loan that does not meet SPPI requirement and that was issued to related party (refer to Note 38).

Gross carrying amount and credit loss allowance amount for loans and advances to customers at AC by classes at 31 December 2020 and 2019 are disclosed in the table below:

In millions of RR	31 December 2020	31 December 2019
	Gross carrying amount	Credit loss allowance
Credit card loans	267,586	(54,242)
Cash loans	68,131	(11,055)
Secured loans	40,232	(1,099)
POS loans	32,690	(1,611)
Car loans	33,991	(2,144)
Loans to IE and SME	2,899	(749)
Total loans and advances to customers at AC	445,529	(70,900)

Credit cards are issued to customers for cash withdrawals or payment for goods or services, within the range of limits established by the Bank. These limits may be increased or decreased from time-to-time based on management decision. Credit card loans are not collateralized.

Cash loans represent a product for the borrowers who have a positive credit history and who do not have overdue loans in other banks. Cash loans are loans provided to customers via the Bank’s debit cards. These loans are available for withdrawal without commission.

Secured loans represent loans secured with a car or real estate.

POS (“Point of sale”) loans represent loans to fund online and offline purchases through internet and offline shops for individual borrowers.

Car loans represent loans for the purchase of a vehicle which is used as collateral under the loan.

Loans to IE and SME represent loans provided by the Bank to individual entrepreneurs and small and medium businesses for the purpose of working capital management.

The credit loss allowance for loans and advances to customers recognised in the period is impacted by a variety of factors. The main movements in the tables presented below are described as follows:

• new originated or purchased category represents the gross carrying amounts and the related ECL of purchased loans and loans issued during the reporting period (and withdrawals of limits of new credit card borrowers) as at the end of the reporting period or as at the date of transfer of loan out of stage 1 (whichever date is earlier);
• transfers between Stage 1, 2 and 3 due to balances experiencing significant increases (or decreases) of credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and lifetime ECL.## 7 Loans and Advances to Customers

Transfers present the amount of credit loss allowance charged or recovered at the moment of transfer of a loan among the respective stages;

• changes to ECL measurement model assumptions and estimates represent movements due to changes in PDs, EADs and LGDs models during the period;
• movements other than transfers and new originated or purchased loans category represent all other movements of ECL in particular related to changes in gross carrying amounts (including drawdowns, repayments, and accrued interest), as well as updates of inputs to ECL model in the period;
• write-offs of allowances are related to assets that were written-off during the period;
• unwinding of discount (for Stage 3) category represents adjustment to credit loss allowance and gross carrying amount for Stage 3 loans to increase it to discounted amount of the expected cash shortfalls to the reporting date using the effective interest rate;
• Modification of original cash flows without derecognition represents adjustment to credit loss allowance and gross carrying amount of Stage 3 loans caused by the modification of terms of those loans which is not substantial.

18 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

The following tables disclose the changes in the credit loss allowance and gross carrying amount for loans and advances to customers between the beginning and the end of the reporting and comparative periods:

Credit card loans

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total Stage 1	Stage 2 (lifetime ECL)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated	Total
In millions of RR
Credit loss allowance
At 31 December 2019	11,704	6,853	25,572	44,129	197,796	11,432	35,373	336
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	4,037	-	-	4,037	49,264	-	130	49,394
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(2,520)	6,396	-	3,876	17,032	36,810
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(5,642)	(6,697)	1,416	(11,557)	(27,133)	(9,677)
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	3,876	11,557	(9,677)	(1,388)	328	(784)
Changes to ECL measurement model assumptions and estimates	2,960	5,574	633	9,167	5,529	2,426	-	17,949
Movements other than transfers and new originated or purchased loans	1,936	5,529	2,426	9,891	1,159	(4,307)	288	6,920
Total movements with impact on credit loss allowance charge for the year	4,737	707	26,977	32,421	12,278	326	32,693	(155)
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	5,713	-	5,713
Write-offs	-	-	-	-	(14,071)	(14,071)	(2,134)	(16,205)
Sales	-	-	-	-	-	-	(11,816)	(11,816)
Modification of original cash flows without derecognition	-	-	-	-	-	(11,816)	-	(11,816)
At 31 December 2020	16,441	7,560	30,241	54,242	210,074	11,758	45,573	181

19 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Credit card loans

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total Stage 1	Stage 2 (lifetime ECL)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated	Total
In millions of RR
Credit loss allowance
At 31 December 2018	9,266	4,708	19,322	33,296	145,732	6,654	25,497	107
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	5,356	-	-	5,356	63,177	-	241	63,418
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(2,478)	6,097	-	3,619	12,593	26,528
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(4,644)	(4,111)	1,101	(7,654)	(11,142)	(5,322)
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	3,619	11,142	(5,322)	(1,077)	233	(756)
Changes to ECL measurement model assumptions and estimates	(387)	4,358	-	3,971	1,006	915	(4,267)	1,654
Movements other than transfers and new originated or purchased loans	(26)	(413)	1,006	(1,039)	(4,267)	20,134	35	15,867
Total movements with impact on credit loss allowance charge for the year	2,438	2,145	17,034	21,617	52,064	4,778	20,733	229
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	-	3,133	-	3,133
Write-offs	-	-	-	-	(10,999)	(10,999)	(1,059)	(12,058)
Sales	(986)	(1,932)	25,572	(3,918)	(1,932)	(1,932)
Modification of original cash flows without derecognition	-	-	-	-	-	-	-	-
At 31 December 2019	11,704	6,853	197,796	11,432	35,373	336	244,937

20 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Cash loans

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total Stage 1	Stage 2 (lifetime ECL)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated	Total
In millions of RR
Credit loss allowance
At 31 December 2019	2,358	1,882	3,789	8,029	51,925	5,034	4,670	636
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	2,532	(686)	-	1,846	40,074	(5,116)	259	40,333
Transfers:
- to lifetime (from Stage 1 to Stage 2)	3,078	-	2,392	5,470	6,626	(1,393)
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	5,911	(2)	2,709	8,618	(4,273)	(2,353)
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	(200)	5,116	(3)	4,913	60	(258)
Changes to ECL measurement model assumptions and estimates	5,116	-	6,626	11,742	(3)	(1,393)
Movements other than transfers and new originated or purchased loans	(2,392)	2,709	(4,273)	(3,956)	(1,809)	(4,273)	(2,353)	60
Total movements with impact on credit loss allowance charge for the year	1,762	159	5,324	7,245	4,261	(267)	(206)	10,114
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	519	-	519
Write-offs	-	-	-	-	(2,363)	(2,363)	(397)	(2,760)
Sales	-	-	(1,978)	(1,978)	-	(1,978)	-	(1,978)
Modification of original cash flows without derecognition	-	-	-	-	-	-	-	-
At 31 December 2020	4,120	2,041	4,894	11,055	56,186	4,767	6,748	430

21 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Cash loans

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total Stage 1	Stage 2 (lifetime ECL)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated	Total
In millions of RR
Credit loss allowance
At 31 December 2018	1,116	545	670	2,331	32,651	1,776	767	301
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	2,628	-	-	2,628	44,199	-	422	44,621
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(587)	14	2,960	2,387	2,373	2,502
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(897)	(78)	(5,663)	(6,638)	(3,536)	(699)
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	3,927	2,502	(64)	6,365	408	(408)
Changes to ECL measurement model assumptions and estimates	(528)	(78)	408	(198)	(1)	(23)	(718)	(940)
Movements other than transfers and new originated or purchased loans	14	2,960	(5,663)	(2,689)	(16,134)	(1,298)	676	(17,345)
Total movements with impact on credit loss allowance charge for the year	1,242	4,119	6,698	12,059	3,258	4,911	335	27,778
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	-	138	-	138
Write-offs	-	-	-	-	(524)	(114)	(122)	(236)
Sales	-	-	-	-	(500)	(500)	-	(500)
Modification of original cash flows without derecognition	-	-	-	-	-	-	-	-
At 31 December 2019	2,358	1,882	3,789	8,029	51,925	5,034	4,670	636

22 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Secured Loans

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total Stage 1	Stage 2 (lifetime ECL)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated	Total
In millions of RR
Credit loss allowance
At 31 December 2019	150	264	82	496	27,366	2,037	198	29,601
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	141	-	-	141	21,517	-	-	21,517
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(40)	954	-	914	4,120	-
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(15)	(41)	3	(53)	(524)	(4,120)
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	3	(3)	914	914	516	879
Changes to ECL measurement model assumptions and estimates	954	(41)	524	1,437	4,120	879
Movements other than transfers and new originated or purchased loans	(41)	(3)	-	(44)	(355)	(509)	(9,512)	(10,416)
In millions of RR
Credit loss allowance
At 31 December 2019	150	264	82	496	27,366	2,037	198	29,601
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	141	-	-	141	21,517	-	-	21,517
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(40)	954	-	914	4,120	-
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(15)	(41)	3	(53)	(524)	(4,120)
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	3	(3)	914	914	516	879
Changes to ECL measurement model assumptions and estimates	67	3	9	79	-	-	-	79
Movements other than transfers and new originated or purchased loans	(50)	(563)	(21)	(634)	(9,512)	-		(10,146)
Total movements with impact on credit loss allowance charge for the year	206	447	1,002	1,655	16,117	(3,241)		22,638
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-	-
Write-offs	-	-	-	-	-	-	-	-
Sales	-	-	-	-	-	-	-	-
Modification of original cash flows without derecognition	-	-	-	-	-	-	-	-
At 31 December 2020	356	711	1,084	2,151	43,483	(1,204)	198	42,237
## Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Credit loss allowance

Gross carrying amount

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Secured Loans
At 31 December 2018	15	1	-	16	2,641	3	-
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	168	-	-	168	27,907	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	499	-	-	499	2,141	-	-
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	2,141	-	2,141	-	-	-
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	(6)	-	-	(6)	75	-	-
Movements other than transfers and new originated or purchased loans	(4)	(236)	6	(234)	(839)	(106)	-
Total movements with impact on credit loss allowance charge for the year	135	263	87	485	24,725	2,034	203
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	3	3	-
Modification of original cash flows	-	-	(8)	(8)	(8)	-	-
At 31 December 2019	150	264	82	496	27,366	2,037	198

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	POS loans
At 31 December 2019	298	190	569	1,057	24,031	1,053	658
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	525	-	-	525	29,695	-	226
Transfers:
- to lifetime (from Stage 1 to Stage 2)	-	-	-	-	-	418	-
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	476	-	476	(1,673)	(518)	1,105
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	(83)	(119)	3	(203)	(234)	(15)	(751)
Changes to ECL measurement model assumptions and estimates	-	-	-	-	(137)	(359)	(209)
Movements other than transfers and new originated or purchased loans	40	3	16	59	(21,040)	(1,276)	(173)
Total movements with impact on credit loss allowance charge for the year	229	37	830	1,096	6,247	27	932
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	46	(360)	(50)
Sales	-	-	-	-	-	-	-
Modification of original cash flows without derecognition	-	-	(178)	(178)	-	-	(178)
At 31 December 2020	527	227	857	1,611	30,278	1,080	1,045

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Car Loans
At 31 December 2018	56	25	4	85	2,754	78	6
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	469	-	-	469	18,238	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(98)	(72)	1	(173)	248	368	153
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(23)	(4)	-	(27)	(1,087)	(320)	24
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	466	-	-	466	1,087	-	-
Changes to ECL measurement model assumptions and estimates	-	-	-	-	-	-	-
Movements other than transfers and new originated or purchased loans	(1)	13	-	12	(884)	(47)	2
Total movements with impact on credit loss allowance charge for the year	312	260	247	819	15,971	982	356
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	81	(63)	81
Sales	-	-	-	-	-	-	-
Modification of original cash flows without derecognition	-	-	(37)	(37)	-	-	(37)
At 31 December 2019	368	285	260	913	18,725	1,060	371

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Loans to IE and SME
At 31 December 2019	57	10	46	113	940	21	52
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	28	-	-	28	676	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(143)	(16)	10	(149)	77	3	171
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	314	314	(375)	(69)	375
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	-	-	-	-	(17)	-	-
Changes to ECL
Movements other than transfers and new originated or purchased loans	13	399	(20)	392	1,268	(56)	1
Total movements with impact on credit loss allowance charge for the year	278	281	80	639	1,500	302	87
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	11	(14)	11
At 31 December 2020	335	291	123	749	2,440	323	136

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Loans to IE and SME
At 31 December 2018	13	10	10	33	332	21	10
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	13	-	-	13	301	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(4)	26	-	22	29	(58)	29
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	44	44	-	(39)	1
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	-	-	-	-	(8)	-	-
Movements other than transfers and new originated or purchased loans	(58)	(39)	1	(96)	(34)	-	(1)
Total movements with impact on credit loss allowance charge for the year	108	109	552	769	9,471	548	93
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	19	(131)	(23)
Sales	-	-	-	-	-	-	-
Modification of original cash flows without derecognition	-	-	(37)	(37)	-	-	(37)
At 31 December 2019	298	190	569	1,057	24,031	1,053	658

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Car Loans
At 31 December 2019	368	285	260	913	18,725	1,060	371
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	485	-	-	485	21,598	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(141)	(184)	844	519	354	(1,926)	(739)
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	-	-	(352)	-	-
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	(232)	770	10	548	308	(307)	(1)
Changes to ECL measurement model assumptions and estimates	-	-	-	-	-	-	-
Movements other than transfers and new originated or purchased loans	105	21	13	139	(7,250)	(315)	(20)
Total movements with impact on credit loss allowance charge for the year	296	273	840	1,409	11,991	952	1,070
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	81	(63)	81
Modification of original cash flows	-	-	(196)	(196)	-	-	(196)
At 31 December 2020	664	558	922	2,144	30,716	2,012	1,263

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Loans to IE and SME
At 31 December 2018	13	10	10	33	332	21	10
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	13	-	-	13	301	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(4)	26	-	22	29	(58)	29
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	44	44	-	(39)	1
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	-	-	-	-	(8)	-	-
Movements other than transfers and new originated or purchased loans	(58)	(39)	1	(96)	(34)	-	(1)
Total movements with impact on credit loss allowance charge for the year	108	109	552	769	9,471	548	93
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	19	(131)	(23)
Sales	-	-	-	-	-	-	-
Modification of original cash flows without derecognition	-	-	(37)	(37)	-	-	(37)
At 31 December 2019	298	190	569	1,057	24,031	1,053	658

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Car Loans
At 31 December 2019	368	285	260	913	18,725	1,060	371
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	485	-	-	485	21,598	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(141)	(184)	844	519	354	(1,926)	(739)
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	-	-	(352)	-	-
- recovered (from Stage 3 to Stage 2 and from Stage 2 to Stage 1)	(232)	770	10	548	308	(307)	(1)
Changes to ECL measurement model assumptions and estimates	-	-	-	-	-	-	-
Movements other than transfers and new originated or purchased loans	105	21	13	139	(7,250)	(315)	(20)
Total movements with impact on credit loss allowance charge for the year	296	273	840	1,409	11,991	952	1,070
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	81	(63)	81
Modification of original cash flows	-	-	(196)	(196)	-	-	(196)
At 31 December 2020	664	558	922	2,144	30,716	2,012	1,263

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Loans to IE and SME
At 31 December 2019	57	10	46	113	940	21	52
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	28	-	-	28	676	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(143)	(16)	10	(149)	77	3	171
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	314	314	(375)	(69)	375
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	-	-	-	-	(17)	-	-
Changes to ECL
Movements other than transfers and new originated or purchased loans	13	399	(20)	392	1,268	(56)	1
Total movements with impact on credit loss allowance charge for the year	278	281	80	639	1,500	302	87
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	11	(14)	11
At 31 December 2020	335	291	123	749	2,440	323	136

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Loans to IE and SME
At 31 December 2018	13	10	10	33	332	21	10
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	13	-	-	13	301	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(4)	26	-	22	29	(58)	29
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	-	-	44	44	-	(39)	1
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	-	-	-	-	(8)	-	-
Movements other than transfers and new originated or purchased loans	(58)	(39)	1	(96)	(34)	-	(1)
Total movements with impact on credit loss allowance charge for the year	108	109	552	769	9,471	548	93
Movements without impact on credit loss allowance charge the year
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Write-offs	-	-	-	-	19	(131)	(23)
Sales	-	-	-	-	-	-	-
Modification of original cash flows without derecognition	-	-	(37)	(37)	-	-	(37)
At 31 December 2019	298	190	569	1,057	24,031	1,053	658

Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3
At 31 December 2020	527	227	857	1,611	30,278	1,080	1,045
Movements with impact on credit loss allowance charge for the year:
New originated or purchased	(1,178)	(119)	(10,809)	(12,106)	7,877	2,078	753
Total movements with impact on credit loss allowance charge for the year	(1,178)	(119)	(10,809)	(12,106)	7,877	2,078	753
Movements without impact on credit loss allowance charge for the year:
Unwinding of discount (for Stage 3)	-	-	-	-	46	(16)	46
Modification of original cash flows	-	-	(107)	(107)	-	-	(107)
At 31 December 2020	256	482	361	1,099	35,243	4,115	874
---	---	---	---	---	---	---	---
Total movements with impact on credit loss allowance	charge for the year	44	-	31	75	608	-
Movements without impact on credit loss allowance	charge the year	-	-	-	-	5	-
Unwinding of discount (for Stage 3)	-	-	-	-	-	-	-
Modification of original cash flows	-	-	-	-	-	-	-
At 31 December 2019	57	10	46	113	940	21	52

The credit loss allowance charge during the year ended 31 December 2020 presented in the tables above differs from the amount presented in the consolidated statement of profit or loss and other comprehensive income for the year due to RR 4,063 million (2019: RR 3,420 million) recovery of amounts previously written-off as uncollectible, due to RR 1,750 million (2019: RR 693 million) recovery from the purchased loans in excess of their gross carrying amount, and due to RR 1,295 million (2019: RR 201 million) charge of ECL for credit related commitments, including RR 638 million of charge due to changes to ECL measurement model assumptions and estimates. The amount of the recovery received from written-off loans and purchased loans during the year was credited directly to the credit loss allowance line in the consolidated statement of profit or loss and other comprehensive income. The contractual amount outstanding of loans and advances to customers which were written off during the reporting period ended 31 December 2020 and are still subject to enforcement activity is equal to RR 13,966 million (reporting period ended 31 December 2019: RR 10,095 million). The amount of the ECL for credit related commitments is accounted separately from ECL for credit cards loans and is included in other financial liabilities in the consolidated statement of financial position.

30 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

During the year ended 31 December 2020 the Group sold credit-impaired loans to third parties (external debt collection agencies) with a gross amount of RR 2,798 million (2019: RR 1,205 million) and credit loss allowance of RR 2,581 million (2019: RR 1,123 million). The difference between the carrying amount of these loans and the consideration received was recognised as losses in the amount of RR 186 million within credit loss allowance for loans and advances to customers and credit related commitments for the year ended 31 December 2020 (2019: losses in the amount of RR 73 million). Presented below is an analysis of issued, activated and utilised cards based on their credit card limits as at the end of the reporting period:

Credit card limits	31 December 2020	31 December 2019
Up to 20 RR thousand	1,046,228	781,128
20-40 RR thousand	538,746	482,343
40-60 RR thousand	497,940	451,425
60-80 RR thousand	495,431	455,978
80-100 RR thousand	479,786	440,139
100-120 RR thousand	331,606	322,726
120-140 RR thousand	378,547	365,750
140-200 RR thousand	870,503	772,992
More than 200 RR thousand	225,417	180,731
Total number of cards (in units)	4,864,204	4,253,212

Table above only includes credit cards less than 180 days overdue. The following table contains an analysis of the credit risk exposure of loans and advances to customers measured at AC and for which an ECL allowance is recognised. The carrying amount of loans and advances to customers below also represents the Group's maximum exposure to credit risk on these loans.

Loans and advances to customers at 31 December 2020 are disclosed as follows:

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Credit card loans
- Excellent	68,398	-	-	-	68,398
- Good	131,957	1,891	-	-	133,848
- Monitor	-	3,757	9,326	-	13,083
- Sub-standard	-	6,110	36,247	181	42,357
- NPL	-	-	15,436	-	15,436
Gross carrying amount	200,355	11,758	61,009	181	273,303
Credit loss allowance	(16,441)	(7,560)	(30,241)	-	(54,242)
Carrying amount	183,914	4,198	30,768	181	219,061

31 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Cash loans
- Excellent	33,877	-	-	-	33,877
- Good	22,053	802	-	-	22,855
- Monitor	-	2,021	546	-	2,567
- Sub-standard	-	6,189	1,032	-	7,221
- NPL	-	3,189	256	430	3,875
Gross carrying amount	55,930	12,201	2,090	430	70,651
Credit loss allowance	(4,120)	(4,894)	(1,288)	-	(10,302)
Carrying amount	51,810	7,307	802	430	60,349

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Secured Loans
- Excellent	21,201	-	-	-	21,201
- Good	13,937	3,307	-	-	17,244
- Monitor	-	442	366	-	808
- Sub-standard	-	366	874	-	1,240
- NPL	-	-	874	-	874
Gross carrying amount	35,138	4,115	2,114	-	41,367
Credit loss allowance	(256)	(482)	(361)	-	(1,099)
Carrying amount	34,882	3,633	1,753	-	40,268

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
POS loans
- Excellent	25,159	-	-	-	25,159
- Good	4,998	242	-	-	5,240
- Monitor	-	194	121	-	315
- Sub-standard	-	793	1,017	287	2,097
- NPL	-	121	287	-	408
Gross carrying amount	30,157	1,350	1,717	287	33,511
Credit loss allowance	(527)	(1,045)	(857)	-	(2,429)
Carrying amount	29,630	305	860	287	31,082

32 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Car loans
- Excellent	21,444	-	-	-	21,444
- Good	9,136	399	-	-	9,535
- Monitor	-	322	1,263	-	1,585
- Sub-standard	-	1,427	322	-	1,749
- NPL	-	263	1,263	-	1,526
Gross carrying amount	30,580	2,411	2,848	-	35,839
Credit loss allowance	(664)	(922)	(922)	-	(2,508)
Carrying amount	29,916	1,489	1,926	-	33,331

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Loans to IE and SME
- Excellent	1,673	-	-	-	1,673
- Good	760	19	-	-	779
- Monitor	-	16	136	-	152
- Sub-standard	-	9	52	-	61
- NPL	-	-	136	-	136
Gross carrying amount	2,433	44	324	-	2,801
Credit loss allowance	(335)	(13)	(178)	-	(526)
Carrying amount	2,098	31	146	-	2,275

33 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Loans and advances to customers at 31 December 2019 are disclosed as follows:

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Credit card loans
- Excellent	87,716	-	-	-	87,716
- Good	102,020	11,782	-	-	113,802
- Monitor	-	12,789	8,060	-	20,849
- Sub-standard	-	29,048	6,661	336	36,045
- NPL	-	1,582	3,722	-	5,304
Gross carrying amount	189,736	55,201	18,443	336	263,716
Credit loss allowance	(11,704)	(25,572)	(10,572)	-	(47,848)
Carrying amount	178,032	29,629	7,871	336	215,868

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Cash loans
- Excellent	34,258	-	-	-	34,258
- Good	17,321	3,315	-	-	20,636
- Monitor	-	585	758	-	1,343
- Sub-standard	-	1,134	3,912	636	5,682
- NPL	-	-	4,548	-	4,548
Gross carrying amount	51,579	5,034	9,218	636	66,467
Credit loss allowance	(2,358)	(3,789)	(5,035)	-	(11,182)
Carrying amount	49,221	1,245	4,183	636	55,285

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Secured Loans
- Excellent	19,941	-	-	-	19,941
- Good	7,319	428	-	-	7,747
- Monitor	-	1,496	219	-	1,715
- Sub-standard	-	322	198	-	520
- NPL	-	-	198	-	198
Gross carrying amount	27,260	2,246	615	-	30,121
Credit loss allowance	(150)	(106)	(46)	-	(302)
Carrying amount	27,110	2,140	569	-	29,819

34 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
POS loans
- Excellent	19,525	-	-	-	19,525
- Good	4,406	217	-	-	4,623
- Monitor	-	100	830	198	1,128
- Sub-standard	-	763	199	-	962
- NPL	-	117	198	-	315
Gross carrying amount	23,931	1,197	1,227	198	26,553
Credit loss allowance	(298)	(569)	(146)	-	(1,013)
Carrying amount	23,633	628	1,081	198	25,540

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Car loans
- Excellent	15,581	-	-	-	15,581
- Good	3,051	250	-	-	3,301
- Monitor	-	702	371	-	1,073
- Sub-standard	-	157	201	-	358
- NPL	-	-	201	-	201
Gross carrying amount	18,632	1,109	773	-	20,514
Credit loss allowance	(368)	(260)	(93)	-	(721)
Carrying amount	18,264	849	680	-	19,793

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Purchased/ originated credit impaired	Total
In millions of RR
Loans to IE and SME
- Excellent	622	-	-	-	622
- Good	314	6	-	-	320
- Monitor	-	9	52	-	61
- Sub-standard	-	4	-	-	4
- NPL	-	-	6	-	6
Gross carrying amount	936	19	58	-	1,013
Credit loss allowance	(57)	(46)	(11)	-	(114)
Carrying amount	879	-37	47	-	899

Stage 3 includes restructured loans that are less than 90 days overdue which are not considered as NPL according to the Group’s credit risk grading master scale. Refer to Note 29 for the description of credit risk grading system used by the Group. Loans in courts are included in Stage 3 and are loans to delinquent borrowers, against which the Group has filed claims to courts in order to recover outstanding balances. As at 31 December 2020 the gross carrying amount of the loans in courts was RR 31,082 million (31 December 2019: RR 22,228 million).# 35 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

Description of collateral held for loans to individuals carried at amortised cost is as follows at 31 December 2020:

Description of collateral held for loans to individuals carried at amortised cost	Secured loans	Car loans	Total
In millions of RR
Loans collateralised by:
- residential real estate	37,896	-	37,896
- cars	2,084	26,797	24,713
Total	39,980	26,797	64,693
Unsecured exposures	252	9,278	9,530
Total gross carrying amount (representing exposure to credit risk for each class of loans at AC)	40,232	33,991	74,223

Description of collateral held for loans to individuals carried at amortised cost is as follows at 31 December 2019:

Description of collateral held for loans to individuals carried at amortised cost	Secured loans	Car loans	Total
In millions of RR
Loans collateralised by:
- residential real estate	27,437	-	27,437
- cars	1,904	17,160	15,256
Total	29,341	17,160	44,597
Unsecured exposures	260	4,900	5,160
Total gross carrying amount (representing exposure to credit risk for each class of loans at AC)	29,601	20,156	49,757

The disclosure above represents the lower of the carrying value of the loan or collateral taken; the remaining part is disclosed within the unsecured exposures which arise mainly due to application of a discount in determining the carrying value of collateral. The extent to which collateral and other credit enhancements mitigate credit risk for financial assets carried at amortised cost that are credit impaired, is presented by disclosing collateral values separately for (i) those assets where collateral and other credit enhancements are equal to or exceed carrying value of the asset (“over-collateralised assets”) and (ii) those assets where collateral and other credit enhancements are less than the carrying value of the asset (“under-collateralised assets”).

36 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

7 Loans and Advances to Customers (Continued)

The effect of collateral on credit impaired assets at 31 December 2020 is as follows.

	Over-collateralised assets	Under-collateralised assets
	Gross carrying amount of the assets	Value of collateral
In millions of RR
Credit impaired assets:
Secured loans	855	200
Car loans	19	1,063

The effect of collateral on credit impaired assets at 31 December 2019 is as follows.

	Over-collateralised assets	Under-collateralised assets
	Gross carrying amount of the assets	Value of collateral
In millions of RR
Credit impaired assets:
Secured loans	194	25
Car loans	4	346

The values of collateral considered in this disclosure are after a valuation haircut of 20% (2019: 20%) for residential real estate and 30% (2019: 30%) for cars applied to consider liquidity and quality of the pledged assets. All contractual modifications of loans with the lifetime ECL that did not lead to derecognition did not have gains less losses on modification recognised in profit or loss for the year ended 31 December 2020 (2019: same). Refer to Note 36 for the disclosure of the fair value of loans and advances to customers. Interest rate, maturity and geographical risk concentration analysis are disclosed in Note 29. Information on related party balances is disclosed in Note 38.

8 Investments in Securities and Repurchase Receivables

	31 December 2020	31 December 2019
In millions of RR
Debt securities measured at fair value through other comprehensive income	234,189	134,765
Securities measured at fair value through profit or loss	4,265	413
Total investments in securities	238,454	135,178
Repurchase receivables at fair value through other comprehensive income	29	-
Total investments in securities and repurchase receivables	238,483	135,178

Repurchase receivables represent securities sold under sale and repurchase agreements which the counterparty has the right, by contract or custom, to sell or repledge. As at 31 December 2020 the sale and repurchase agreements are short-term and mature in January 2021.

37 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income

The table below discloses investments in debt securities and repurchase receivables measured at FVOCI by classes:

In millions of RR	31 December 2020	31 December 2019
Investments in securities
Russian government bonds	123,916	56,382
Corporate bonds	96,200	72,032
Municipal bonds	9,474	6,351
Foreign government bonds	56,382	4,599
Repurchase receivables
Corporate bonds	29	-
Total investments in securities and repurchase receivables measured at FVOCI	234,218	134,765
Including credit loss allowance	714	345

38 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

The table below contains an analysis of the credit risk exposure of investments in securities and repurchase receivables measured at FVOCI at 31 December 2020, for which an ECL allowance is recognised, based on credit risk grades:

In millions of RR	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
Russian government bonds
- Good	125,422	-	-	125,422
Total AC gross carrying amount	125,422	-	-	125,422
Credit loss allowance	(255)	-	-	(255)
Fair value adjustment from AC to FV	(1,251)	-	-	(1,251)
Carrying value	123,916	-	-	123,916
Corporate bonds
- Excellent	560	-	-	560
- Good	85,653	6,726	-	92,379
- Monitor	620	-	-	620
Total AC gross carrying amount	92,939	6,726	-	93,559
Credit loss allowance	(334)	(14)	-	(348)
Fair value adjustment from AC to FV	2,953	36	-	2,989
Carrying value	95,558	6,742	-	96,200
Municipal bonds
- Good	7,750	-	-	7,750
- Monitor	1,523	-	-	1,523
Total AC gross carrying amount	9,273	-	-	9,273
Credit loss allowance	(45)	-	-	(45)
Fair value adjustment from AC to FV	246	-	-	246
Carrying value	9,474	-	-	9,474

39 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

In millions of RR	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
Foreign government bonds
- Good	908	-	-	908
- Monitor	3,119	-	-	3,119
- Sub-standard	494	-	-	494
Total AC gross carrying amount	4,521	-	-	4,521
Credit loss allowance	(66)	-	-	(66)
Fair value adjustment from AC to FV	144	-	-	144
Carrying value	4,599	-	-	4,599

The table below contains an analysis of the credit risk exposure of debt securities measured at FVOCI at 31 December 2019, for which an ECL allowance is recognised, based on credit risk grades:

In millions of RR	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
Russian government bonds
- Good	54,471	-	-	54,471
Total AC gross carrying amount	54,471	-	-	54,471
Credit loss allowance	(99)	-	-	(99)
Fair value adjustment from AC to FV	2,010	-	-	2,010
Carrying value	56,382	-	-	56,382
Corporate bonds
- Excellent	411	-	-	411
- Good	61,042	8,192	-	69,234
Total AC gross carrying amount	69,645	8,192	-	77,837
Credit loss allowance	(225)	-	-	(225)
Fair value adjustment from AC to FV	2,612	-	-	2,612
Carrying value	72,032	8,192	-	77,837

40 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

In millions of RR	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
Municipal bonds
- Good	5,663	-	-	5,663
- Monitor	422	-	-	422
Total AC gross carrying amount	6,085	-	-	6,085
Credit loss allowance	(21)	-	-	(21)
Fair value adjustment from AC to FV	287	-	-	287
Carrying value	6,351	-	-	6,351

Refer to Note 29 for the description of credit risk grading system used by the Group and the approach to ECL measurement, including the definition of default and SICR as applicable to investments in securities and repurchase receivables at FVOCI. The investments at FVOCI are not collateralised. Refer to Note 36 for the disclosure of the fair value. Securities at FVOCI reclassified to repurchase receivables continue to be carried at fair value in accordance with accounting policies for these categories of assets. Refer to Note 13 for the related liabilities.

The following table explains the changes in the credit loss allowance (including those pledged under repurchase agreements) and gross carrying amount for debt securities at FVOCI for the year ended 31 December 2020:

	Credit loss allowance Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Gross carrying amount Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Russian government bonds
At 31 December 2019	99	-	-	99	54,471	-	-	54,471
Movements with impact on credit loss allowance charge:
New originated or purchased	522	-	-	522	289,955	-	-	289,955
Foreign exchange gains	1	-	-	1	767	-	-	767
Redemption during the year	(160)	-	-	(160)	(89,000)	-	-	(89,000)
Disposal during the year	(233)	-	-	(233)	(129,350)	-	-	(129,350)
Interest income accrued	8	-	-	8	5,318	-	-	5,318
Interest received	(12)	-	-	(12)	(6,739)	-	-	(6,739)
Other movements	30	-	-	30	-	-	-	-
Total movements with impact on credit loss allowance charge	156	255	-	411	70,951	-	-	70,951
At 31 December 2020	125,422	-	-	125,422	125,422	-	-	125,422

41 TCS# TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

Credit loss allowance	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Gross carrying amount	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Corporate bonds
At 31 December 2019	225	-	-	225	69,645	-	-	69,645
Movements with impact on credit loss allowance charge:
New originated or purchased	198	-	-	198	70,438	-	-	70,438
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(3)	3	620
Foreign exchange gains	15	(13)			15
Redemption during the year	(117)	14			(117)
Disposal during the year	(16)	31			(16)
Interest income accrued					5,061
Interest received					(4,171)
Other movements	(46,924)	4,632	(5,122)		(46,924)	4,587	(5,077)
Total movements with impact on credit loss allowance charge	109	334	14	14		123	348	23,294	92,939
At 31 December 2020
Municipal bonds
At 31 December 2019	21	-	-	21	6,085	-	-	6,085
Movements with impact on credit loss allowance charge:
New originated or purchased	25	-	-	25	7,440	-	-	7,440
Redemption during the year	0	(19)			0
Disposal during the year	3	(2)			3
Interest income accrued					17
Interest received					(91)
Other movements	(4,140)	474	(495)		(4,140)
Total movements with impact on credit loss allowance charge	24	45	-	-		24	45	3,188	9,273
At 31 December 2020

TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

Credit loss allowance	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Gross carrying amount	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Foreign government bonds
At 31 December 2019	-	-	-	-	-	-	-	-
Movements with impact on credit loss allowance charge:
New originated or purchased	68	-	-	68	7,516	-	-	7,516
Foreign exchange gains	1	(11)			1
Disposal during the year	1	(1)			1
Interest income accrued					8
Interest received					246
Other movements	(3,224)	61			(3,224)
Total movements with impact on credit loss allowance charge	66	66	-	-		66	66	4,521	4,521
At 31 December 2020

TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

The following table explains the changes in the credit loss allowance (including those pledged under repurchase agreements) and gross carrying amount for debt securities at FVOCI for the year ended 31 December 2019:

Credit loss allowance	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Gross carrying amount	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Corporate bonds
At 1 January 2019	255	89	128	-	-	-	383	89	64,951
Movements with impact on credit loss allowance charge:
New originated or purchased	-	-	-
Transfers:
- to lifetime (from Stage 1 to Stage 2)	24	(26)	(2)
Foreign exchange losses	(1,318)				(12)	(12)
Redemption during the year	(91)	12			(91)	12
Disposal during the year	(12)	(28)	(6)		(40)	4
Interest income accrued					(2,702)	(3,609)	(96)		(193)
Interest received	43	(43)			(16,541)	4,117	(4,018)		(16,348)
Other movements	16	(16)	(84)		4,074	(3,975)
Total movements with impact on credit loss allowance charge	(30)	225	(128)	-	-	-	(158)	225	4,694
At 31 December 2019					69,645				69,645

TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

Credit loss allowance	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Gross carrying amount	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Russian government bonds
At 1 January 2019	66	-	-	66	25,190	-	-	25,190
Movements with impact on credit loss allowance charge:
New originated or purchased	167	-	-	167	81,179	(833)	-	-	81,179
Foreign exchange losses	(2)	-	-		(2)
Redemption during the year
Disposal during the year
Interest income accrued					(30,858)	(20,414)	2,119	(1,912)
Interest received	(53)	4			(53)	4
Other movements	(16)
Total movements with impact on credit loss allowance charge	33	99	-	-		33	99	29,281	54,471
At 31 December 2019

TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

8 Investments in Securities and Repurchase Receivables (Continued)

1) Investments in securities and repurchase receivables measured at fair value through other comprehensive income (Continued)

Credit loss allowance	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total	Gross carrying amount	Stage 1 (12-month ECL)	Stage 2 (ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Municipal bonds
At 1 January 2019	35	-	-	35	5,833	-	-	5,833
Movements with impact on credit loss allowance charge:
New originated or purchased	3	-	-	3	968	-	-	968
Redemption during the year	(1)	(4)			(1)	(4)
Disposal during the year	2	(3)			2	(3)
Interest income accrued					(11)
Interest received					(482)	(216)	469	(487)
Other movements
Total movements with impact on credit loss allowance charge	(14)	21	-	-		(14)	21	252	-
At 31 December 2019					6,085				6,085

2) Securities measured at fair value through profit or loss

The table below discloses investments in securities measured at FVTPL by classes:

	31 December 2020	31 December 2019
In millions of RR
Perpetual corporate bonds	4,265	413
Other securities	-	-
Total securities measured at FVTPL	4,265	413

At 31 December 2019 the other securities were represented by assets of the mutual funds which were controlled by the Group and managed by LLC “Tinkoff Capital”. These assets were sold at 30 September 2020.

Investments in securities measured at FVTPL are carried at fair value, which also reflects any credit risk related write-downs and best represents Group’s maximum exposure to credit risk. The securities measured at FVTPL are not collateralized. Interest rate, maturity and geographical risk concentration analysis of investment in securities are disclosed in Note 29.

9 Guarantee Deposits with Payment Systems

As at 31 December 2020 and 2019 guarantee deposits were placed in favour of MasterCard with Barclays Bank Plc London (A rated), in favour of Visa with United Overseas Bank Ltd Singapore (AA- rated), and in favour of Russia payment card Mir with Russian National payment card system (NSPK).

As at 31 December 2020 the carrying value of guarantee deposits with payment systems was RR 15,475 million (2019: RR 8,877 million).

The table below discloses the credit quality of guarantee deposits with payment systems balances based on credit risk grades:

	31 December 2020	31 December 2019
In millions of RR
- Excellent	14,803	8,376
- Good	672	501
Total guarantee deposits with payment systems	15,475	8,877

The carrying amount of guarantee deposits with payment systems at 31 December 2020 and 2019 also represents the Group's maximum exposure to credit risk on these assets. Refer to Note 29 for the description of credit risk grading system used by the Group. For the purpose of ECL measurement guarantee deposits with payment systems balances are included in Stage 1. Guarantee deposits with payment systems are unsecured financial assets. The ECL for these balances represents an immaterial amount, therefore the Group did not create any credit loss allowance for guarantee deposits with payment systems. Refer to Note 29 for the ECL measurement approach. Interest rate, maturity and geographical risk concentration analysis are disclosed in Note 29.

10 Brokerage Receivables and Brokerage Payables

	31 December 2020	31 December 2019
In millions of RR
Amounts receivable from brokers and clearing organizations	24,064	9,206
Total brokerage receivables	24,064	9,206
Amounts payable to brokers and clearing organizations	2,799	1,207
Total brokerage payables	2,799	1,207

Brokerage receivables represent placements under reverse sale and repurchase agreements made by the Bank with central counterparty to provide customers of the Bank who have brokerage accounts with the Bank with the possibility to acquire securities in case those customers have insufficient own funds to acquire those securities. These balances are fully collateralized by highly liquid securities and have minimal credit risk.# Notes to the Consolidated Financial Statements – 31 December 2020

10 Brokerage Receivables and Brokerage Payables (Continued)

As at 31 December 2020 the fair value of collateral of brokerage receivables was RR 24,113 million (31 December 2019: RR 2,239 million). For the purpose of ECL measurement brokerage receivables are included in Stage 1. The ECL for these balances represents an immaterial amount, therefore the Group did not recognise any credit loss allowance for brokerage receivables. Brokerage payables represent funds attracted under sale and repurchase agreements made by the Bank with central counterparty to provide customers of the Bank who have brokerage accounts with the Bank with the possibility to borrow securities and make a short sale.

As at 31 December 2020 the fair value of collateral of brokerage payables was RR 9,696 million (31 December 2019: RR 1,282 million). ECL measurement approach, interest rate, maturity and geographical risk concentration analysis are disclosed in Note 29. Refer to Note 32 for the disclosure of the offsetting assets and liabilities. Refer to Note 36 for the disclosure of the fair value of brokerage receivables and brokerage payables.

11 Tangible Fixed Assets, Intangible Assets and Right-of-use Assets

In millions of RR	Land	Building	Equip- ment	Leasehold improve- ments	Vehicles	Intangible tangible assets fixed	Total fixed assets
Cost
At 31 December 2018	396	4,219	4,341	1,788	59	1,536	10,534
Additions	-	-	1,920	2,564	72	86	4,642
Disposals	-	-	(61)	(72)	-	(2)	(135)
At 31 December 2019	396	4,219	6,070	4,280	131	1,620	16,716
Additions	-	-	3,669	2,170	231	1,854	7,924
Disposals	-	-	(231)	(395)	(149)	(4)	(779)
At 31 December 2020	396	4,219	9,448	6,055	386	3,470	23,971
Depreciation and amortisation
At 31 December 2018	-	(90)	(1,527)	(515)	(33)	(1,076)	(3,241)
Charge for the year (Note 24)	-	(160)	(1,421)	(1,076)	(149)	(1,617)	(4,423)
Disposals	-	9	103	128	4	231	475
At 31 December 2019	-	(241)	(2,845)	(1,563)	(178)	(2,462)	(7,189)
Charge for the year (Note 24)	-	(176)	(1,495)	(694)	(45)	(1,961)	(4,371)
Disposals	-	-	231	395	149	4	779
At 31 December 2020	-	(417)	(4,109)	(1,862)	(274)	(4,419)	(11,081)
Net book value
At 31 December 2019	396	4,078	3,225	2,717	(47)	(842)	9,527
At 31 December 2020	396	3,802	5,339	4,193	112	(949)	12,893

Intangible assets additions in the amount of RR 1,854 million related to capitalized software developments by Tinkoff Software DC during the year ended 31 December 2020 (2019: RR 1,212 million). Other intangible assets acquired during the year ended 31 December 2020 and 2019 mainly represent accounting software, retail banking software, insurance software, licenses and development of software.

Right-of-use assets and lease liabilities. Right-of-use-assets relate to the office premises leased by the Group. Rental contracts are typically for fixed periods from 1 to 5 years. The Group does not have extension or termination options of its lease agreements other than lease agreements of low value items. The right of use assets by class of underlying items is analysed as follows:

In millions of RR	Office premises
Carrying amount at 1 January 2019	1,671
Additions	664
Depreciation charge (Note 24)	(727)
Carrying amount at 31 December 2019	1,608
Additions	234
Depreciation charge (Note 24)	(702)
Carrying amount at 31 December 2020	1,140

Prior to 1 January 2019 Group’s leases of premises and equipment were classified as operating leases. From 1 January 2019, leases are recognised as a right-of-use asset and a corresponding liability from the date when the leased asset becomes available for use by the Group. Expenses relating to leases of low-value assets and short-term leases in the amount of RR 548 million are included in administrative and other operating expenses (2019: RR 410 million). Refer to Note 24. Total cash outflow for leases during the year ended 31 December 2020 was RR 758 million (2019: RR 1,087 million).

12 Other Financial and Non-financial Assets

In millions of RR	31 December 2020	31 December 2019
Other Financial Assets
Settlement of operations with plastic cards	23,882	16,384
Other	7,188	5,289
Total Other Financial Assets	31,070	21,673
Other Non-Financial Assets
Prepaid expenses	1,478	1,223
Other	1,908	1,287
Total Other Non-Financial Assets	3,386	2,510

Settlement of operations with plastic cards represents settlements with payment systems and payment channels on operations of the customers with banking cards due to be settled within 3 working days. This amount also includes prepayment to the payment systems for operations during holiday period. At 31 December 2020, included in other financial assets are receivables, investments in associates and subrogation rights (2019: same). As at 31 December 2020 and 2019 prepaid expenses consist of prepayments for marketing, IT support, security and ATM-service. The table below discloses the credit quality of other financial assets based on credit risk grades:

In millions of RR	31 December 2020	31 December 2019
- Excellent	19,683	9,219
- Good	11,387	12,454
Total other financial assets	31,070	21,673

Refer to Note 29 for the description of the Group’s credit risk grading system. For the purpose of ECL measurement settlement of operations with plastic cards balances and other receivables are included in Stage 1. The ECL for these balances represents an immaterial amount, therefore the Group did not recognise any credit loss allowance. Refer to Note 29 for the ECL measurement approach. Refer to Note 36 for the disclosure of the fair value of other financial assets. The maturity and geographical risk concentration analysis of amounts of other financial assets is disclosed in Note 29.

13 Due to Banks

In millions of RR	31 December 2020	31 December 2019
Correspondent accounts and overnight placements of other banks	4,795	23
Sale and repurchase agreements with other banks	24	-
Total due to banks	4,819	23

At 31 December 2020, included in the amounts due to other banks are liabilities of RR 24 million (31 December 2019: nil) arising from sale and repurchase agreements with debt securities at FVOCI. Refer to Note 8. Refer to Note 36 for the disclosure of the fair value of amounts due to banks. Interest rate, maturity and geographical risk concentration analysis of due to banks is disclosed in Note 29. Refer to Notes 32 and 33 for information on the amounts included in due to banks received under sale and repurchase agreements and fair value of securities pledged.

14 Customer Accounts

In millions of RR	31 December 2020	31 December 2019
Individuals
- Current/demand accounts	323,145	199,408
- Brokerage accounts	73,970	12,253
- Term deposits	135,995	137,292
IE and SME
- Current/demand accounts	89,199	60,174
- Term deposits	2,213	1,880
Other legal entities
- Current/demand accounts	2,267	495
- Term deposits	48	112
Total customer accounts	626,837	411,614

Refer to Note 36 for the disclosure of the fair value of customer accounts. Interest rate, maturity and geographical risk concentration analysis of customer accounts amounts is disclosed in Note 29. Information on related party balances is disclosed in Note 38.

15 Debt Securities in Issue

In millions of RR	Date of maturity	31 December 2020	31 December 2019
RR denominated bonds issued in April 2019	21 March 2029	10,134	10,166
RR denominated bonds issued in September 2019	12 September 2029	2,492	2,468
RR denominated bonds issued in April 2017	22 April 2022	10,158	-
RR denominated bonds issued in June 2016	24 June 2021	835	831
Structured debt notes issued in December 2020	5 December 2023	-	599
Structured debt notes issued in October 2020	5 October 2023	-	-
Structured debt notes issued in December 2020	1 December 2023	-	-
EUR denominated ECP issued in December 2019	20 November 2020	119	1,030
EUR denominated ECP issued in February 2019	18 February 2020	89	836
USD denominated ECP issued in December 2019	20 November 2020	74	-
Total debt securities in issue		23,801	15,930

On 3 April 2019 the Bank issued RR denominated bonds with a nominal value of RR 10,000 million at 9.25% coupon rate maturing on 21 March 2029. On 25 September 2019 the Bank issued RR denominated bonds with a nominal value of RR 10,000 million at 8.25% coupon rate maturing on 12 September 2029. On 28 April 2017 the Bank issued RR denominated bonds with a nominal value of RR 5,000 million at 9.65% coupon rate maturing on 22 April 2022. On 30 June 2016 the Group issued RR denominated bonds with a nominal value of RR 3,000 million at 11.7% coupon rate maturing on 24 June 2021.

During October and December 2020 the Bank issued structured debt notes with the total nominal value of RR 282 million at 0.01% coupon rate maturing in October and December 2023. The structured debt notes are linked to the performance of the underlying assets, such as the gold trust and equity indexes. The derivative instruments embedded in the structured notes were separated and accounted within financial derivatives line in the consolidated statement of financial position. On 20 December 2019 the Group issued two tranches of ECP denominated in USD and EUR maturing on 20 November 2020. USD denominated ECP has a nominal value of USD 10 million with a discount of 3.6%. EUR denominated ECP has a nominal value of EUR 15 million with a discount of 1.0%.On 19 February 2019 the Group issued Euro-Commercial Paper (ECP) denominated in EUR maturing on 18 February 2020, which has a nominal value of EUR 12 million with a discount of 1.25%. The Group redeemed all outstanding ECP at maturity date. All RR denominated bonds and structured debt notes issued by the Bank are traded on the Moscow Exchange. Refer to Note 36 for the disclosure of the fair value of debt securities in issue. Interest rate, maturity and geographical risk concentration analysis of debt securities in issue are disclosed in Note 29.

16 Subordinated Debt

As at 31 December 2020 the carrying value of the subordinated debt was RR 20,755 million (31 December 2019: RR 18,487 million). On 15 June 2017 the Group issued perpetual subordinated loan participation notes with a nominal value of USD 300 million with zero premium. The notes have no stated maturity. The Group has a right to repay the notes at its discretion starting from 15 September 2022 and they are repayable in case of certain events other than liquidation. The notes bear a fixed interest rate of 9.25% p.a. payable quarterly starting from 15 September 2017. Interest payments may be cancelled by the Group at any time. The claims of lenders against the Group in respect of the principal and interest on these bonds are subordinated to the claims of other creditors in accordance with the legislation of the Russian Federation. The perpetual subordinated loan participation notes are traded on the Global Exchange Market. Interest rate, maturity and geographical risk concentration analysis of subordinated debt is disclosed in Note 29. Refer to Note 36 for the disclosure of the fair value of financial instruments.

17 Insurance Provisions

In millions of RR	31 December 2020	31 December 2019
Insurance Provisions
Provision for unearned premiums	3,907	3,938
Loss provisions	2,160	2,342
Total Insurance Provisions	6,067	6,280

52 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

17 Insurance Provisions (Continued)

Movements in provision for unearned premiums for the year ended 31 December 2020 and 2019 are as follows:

In millions of RR		Provision	Reinsurer’s share of provision	Gross net of provision	Provision	Reinsurer’s share of provision	Gross net of provision
Provision for unearned premiums as at 1 January		3,938	(11)	3,927	1,760	(3)	1,757
Change in provision, gross		(31)		(31)	2,178		2,178
Change in reinsurers’ share of provision			-		-
Provision for unearned premiums as at 31 December		3,907	(11)	3,896	3,938	(11)	3,927

Movements in loss provisions for the year ended 31 December 2020 and 2019 are as follows:

In millions of RR	OCP and IBNR	URP	Provision for claims handling expenses	Total loss provisions
Loss provisions as at 31 December 2018	965	9	125	1,099
Losses incurred in the current reporting period	4,026	-	-	4,026
Changes in OCP, IBNR and claims handling provisions related to prior periods	-	-	-	-
Insurance claims paid	(138)	-	-	(138)
Claims handling expenses accrued	(2,923)	-	(39)	(2,962)
Claims handling expenses paid	-	-	(177)	(177)
Unexpired risk provision charge		253		253
Unexpired risk provision written off		(65)		(65)
Loss provisions as at 31 December 2019	1,930	197	215	2,342
Losses incurred in the current reporting period	3,456	-	-	3,456
Changes in OCP, IBNR and claims handling provisions related to prior periods	-	-	-	-
Insurance claims paid	-	-	-	-
Claims handling expenses accrued	(119)	-	147	28
Claims handling expenses paid	(3,500)	-	(497)	(3,997)
Unexpired risk provision reversal		(197)		(197)
Loss provisions as at 31 December 2020	2,160	1,767	393	53

53 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

18 Other Financial and Non-financial Liabilities

In millions of RR	31 December 2020	31 December 2019
Other financial liabilities
Settlement of operations with plastic cards	23,079	6,427
Trade payables	6,150	4,621
Credit related commitments (Note 31)	3,537	2,242
Other	1,571	1,358
Total other financial liabilities	34,337	14,648
Other non-financial liabilities
Accrued administrative expenses	2,171	1,277
Taxes payable other than income tax	1,731	1,321
Lease liabilities	1,340	1,694
Other	663	582
Total other non-financial liabilities	5,905	4,874

Settlements of operations with plastic cards include funds that were spent by customers of the Bank by usage of plastic cards but have not yet been compensated to payment systems by the Bank. Accrued administrative expenses are mainly represented by accrued staff costs. During 2020 the Group has managed to apply an online posting mechanism which allowed customer accounts to be debited and payment systems to be credited for their transactions at the time of authorisation of the transaction. In prior periods transactions were posted only after their clearing by payment systems which could require another business day.

Movements in the credit loss allowance for credit related commitments were as follows for the year ended 31 December 2020:

In millions of RR	Stage 1 (12-months ECL)	Stage 2	Stage 3 (lifetime ECL for credit impaired)	Gross committed amount
At 31 December 2019	2,228	14	-	2,242
Movements with impact on provision for credit related commitments charge for the year:
New originated or purchased	920	-	-	920
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(36)	7	-	(29)
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(59)	15	-	(44)
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	6	(21)	(8)	(23)
Changes to ECL measurement model assumptions and estimates	(637)	(1)	-	(638)
Movements other than transfers and new originated or purchased loans	1,090	17	-	1,107
Total charge to profit or loss for the year	1,285	3,513	10	1,295
At 31 December 2020	3,513	24	-	3,537

54 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

18 Other Financial and Non-financial Liabilities (Continued)

Movements in the credit loss allowance for credit related commitments were as follows for the year ended 31 December 2019:

In millions of RR	Stage 1 (12-months ECL)	Stage 2	Stage 3 (lifetime ECL for credit impaired)	Gross committed amount
At 31 December 2018	2,024	17	-	2,041
Movements with impact on provision for credit related commitments charge for the year:
New originated or purchased	840	-	-	840
Transfers:
- to lifetime (from Stage 1 to Stage 2)	(23)	5	-	(18)
- to credit-impaired (from Stage 1 and Stage 2 to Stage 3)	(45)	9	-	(36)
- to 12-months ECL (from Stage 2 and Stage 3 to Stage 1)	7	(14)	(10)	(17)
Changes to ECL measurement model assumptions and estimates	(163)	-	-	(163)
Movements other than transfers and new originated or purchased loans	(400)	10	-	(390)
Total charge to profit or loss for the year	204	(3)	14	201
At 31 December 2019	2,228	14	-	2,242

The main movements in the table presented above are described as follows:

• new originated or purchased category represents the day one 12-month ECL for the undrawn part of the purchased loans and loans to new borrowers (for this particular product) before the first payment became due;
• transfers between Stage 1, 2 and 3 due to undrawn limits experiencing significant increases (or decreases) of credit risk or becoming credit-impaired in the period, and the consequent “step up” (or “step down”) between 12-month and Lifetime ECL. Transfers present the amount of credit loss allowance for loan commitments charged or recovered at the moment of transfer of a loan commitment among the respective stages;
• movements other than transfers and new originated or purchased loans category represents all other movements of ECL for loan commitments in particular related to changes in gross carrying amounts of associated loans, ECL model assumptions and other.

Interest rate, maturity and geographical risk concentration analysis of other financial liabilities is disclosed in Note 29. Refer to Note 36 for disclosure of fair value of other financial liabilities. Refer to Note 31 for analysis of loan commitments by credit risk grades.

55 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

19 Share Capital, Share Premium and Treasury Shares

	Number of authorised shares	Number of Ordinary Share outstanding shares	Treasury shares	Total shares premium
At 1 January 2019	191,770,766	182,638,825	188	8,623
Shares issued	18,263,882	16,666,667	42	-
Secondary public offering (SPO) costs			-	-
GDRs and shares transferred under MLTIP			506	-
At 31 December 2019	210,034,648	199,305,492	230	26,998
GDRs buy-back			-	-
GDRs and shares transferred under MLTIP			587	-
At 31 December 2020	210,034,648	199,305,492	230	26,998

In millions of RR except for the number of shares

	(3,670)
	18,874
	(499)
	18,916
	(499)
	506
	(3,164)
	(661)
	587
	(3,238)
	23,990

At 31 December 2020 the total number of outstanding shares is 199,305,492 shares (31 December 2019: 199,305,492 shares) with a par value of USD 0.04 per share (31 December 2019: USD 0.04 per share). At 31 December 2020 and 2019 treasury shares represent GDRs of the Group repurchased from the market for the purposes permitted by Cyprus law including contribution to MLTIP. Refer to Note 38. At 31 December 2020 the total number of treasury shares is 3,013,379 (31 December 2019: 4,185,166). During the year ended 31 December 2020 the Group repurchased 650,000 GDRs at market price for RR 661 million (2019: no GDRs were repurchased by the Group). During the year ended 31 December 2020 the Group transferred 1,809,681 GDRs (2019: 2,419,187 GDRs), representing 0.91% (2019: 1.21%) of the issued shares, upon vesting under the MLTIP. This resulted in a transfer of RR 587 million (2019: RR 506 million) out of treasury shares to retained earnings.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

19 Share Capital, Share Premium and Treasury Shares (Continued)

In June 2019 the Company’s shareholders approved a resolution to increase the authorised share capital to USD 8,401,385.92 by the creation of 18,263,882 new undesignated ordinary shares of nominal value USD 0.04 each. At 31 December 2020 the total number of authorised shares is 210,034,648 shares (31 December 2019: 210,034,648 shares) with a par value of USD 0.04 per share (31 December 2019: USD 0.04 per share). On 2 July 2019 the Group completed a SPO on the London Stock Exchange plc and issued 16,666,667 class A shares of the Company in the form of GDRs at a price of USD 18.00 per GDR, raising aggregate gross proceeds of USD 300 million (RR 18,916 million). All issued ordinary shares are fully paid. All the incurred SPO costs were primary direct expenses accounted within share premium. Basic earnings per share are calculated by dividing the profit or loss attributable to owners of the Company by the weighted average number of ordinary shares in issue during the year, excluding treasury shares. For the purpose of calculating diluted earnings per share the Group considered the dilutive effect of share options granted under MLTIP.

Earnings per share are calculated as follows:

In millions of RR except for the number of shares		2020	2019
Profit for the year attributable to ordinary shareholders of the Company		44,209	36,122
Weighted average number of ordinary shares in issue used for basic earnings per ordinary share calculation (thousands)		195,962	186,559
Weighted average number of ordinary shares in issue used for diluted earnings per ordinary share calculation (thousands)		197,604	190,070
Basic earnings per ordinary share (expressed in RR per share)		225.60	193.62
Diluted earnings per ordinary share (expressed in RR per share)		223.73	190.05

Information on dividends is disclosed in Note 27.

Reconciliation of the number of shares used for basic and diluted EPS:

In thousands	Note	2020	2019
Weighted average number of ordinary shares in issue used for basic earnings per ordinary share calculation		195,962	186,559
Number of shares attributable for MLTIP		15,290	9,940
Number of shares transferred out of treasury shares upon vesting under the MLTIP to retained earnings or forfeited		(8,014)	(5,634)
Number of shares that would have been issued at fair value		(6,158)	(271)
Weighted average number of ordinary shares in issue used for diluted earnings per ordinary share calculation		197,604	190,070

20 Net Margin

In millions of RR		2020	2019
Interest income calculated using the effective interest rate method
Loans and advances to customers, including:
Credit card loans		89,253	84,325
Cash loans		11,439	11,878
Secured loans		4,950	2,285
POS loans		4,806	3,452
Car loans		3,342	1,512
Loans to IE and SME		529	325
Debt securities and repurchase receivables at FVOCI		10,510	6,705
Brokerage operations		2,629	184
Placements with other banks and non-bank credit organizations with original maturities of less than three months		626	463
Total interest income calculated using the effective interest rate method		128,084	111,129
Other similar income
Financial assets at FVTPL		83	118
Total interest income		128,167	111,247
Interest expense calculated using the effective interest rate method
Customer accounts, including:
Individuals - Current/demand accounts		9,590	8,988
Individuals - Term deposits		6,499	7,006
IE and SME		1,022	1,421
Other legal entities		24	40
RR denominated bonds		2,027	1,282
Subordinated debt		1,948	1,846
Due to banks		439	634
Euro-Commercial Paper		32	100
Total interest expense calculated using the effective interest rate method		21,581	21,317
Other similar expense
Lease liabilities		139	134
Total interest expense		21,720	21,451
Expenses on deposit insurance		1,870
Net margin		104,702	87,926

21 Fee and Commission Income and Expense

In millions of RR		2020	2019
Fee and commission income
Acquiring commission		11,049	8,342
SME services commission		7,437	5,550
Brokerage fee		4,998	3,244
Fee for selling credit protection		4,657	3,024
Interchange fee		3,963	1,980
SMS fee		3,945	890
Foreign currency exchange transactions fee		3,943
Fee for money transfers		3,117
Income from MVNO services		1,815
Cash withdrawal fee		746
Marketing services fee		720
Replenishment fee		394
Other fees receivable		141
Total fee and commission income		47,609	35,858

SME services commission represents commission for services to individual entrepreneurs and small to medium businesses. Fee for selling credit protection represents fee which the Bank receives for selling voluntary credit insurance to borrowers of the Group. Acquiring commission represents commission for processing card payments from online and offline points of sale. Income from MVNO services represents income from providing mobile services such as full coverage across Russia and international roaming, offering a number of value-added options such as virtual numbers, music and video streaming services, etc. The Group has refined the presentation of the Group's revenue structure by reclassifying the sum of merchant acquiring fee from SME services commission to acquiring commission. The comparative information was amended accordingly.

In millions of RR		2020	2019
Fee and commission expense
Payment systems		14,684	10,420
Service fees		2,177	2,043
Banking and other fees		2,225	423
Payment channels		1,288	1,327
Costs of MVNO services		1,225	910
Total fee and commission expense		21,599	15,123

Payment systems fees represent fees for MasterCard, Visa and other payment systems’ services. Service fees represent fees for statement printing, mailing service, sms services and others. Payment channels represent fees paid to third parties through whom borrowers make loan repayments. Costs of MVNO services represent expenses for the traffic, telecommunications service and roaming. Refer to Note 40 that describes the types of revenues recognized on a point in time basis and on the over time basis.

22 Customer Acquisition Expense

In millions of RR		2020	2019
Marketing and advertising		10,636	8,106
Staff costs		6,689	5,916
Taxes other than income tax		1,869	1,413
Partnership expenses		1,065	979
Cards issuing expenses		890	411
Credit bureaux		697	878
Telecommunication expenses		284	326
Other acquisition		277	329
Total customer acquisition expenses		22,588	18,177

Customer acquisition expenses represent expenses paid by the Group on services related to origination of customers which are not directly attributable to the recognised assets and are not incremental. The Group uses a variety of different channels for the acquisition of new customers. Staff costs represent salary expenses and related costs of employees directly involved in customer acquisition. Included in staff costs are statutory social contributions to the state non-budgetary funds in the amount of RR 1,650 million for the year ended 31 December 2020 (2019: RR 1,561 million).

23 Insurance Premiums Earned and Claims Incurred

In millions of RR		2020	2019
Insurance premiums earned
Insurance premiums on insurance, co-insurance and reinsurance operations		18,536	16,289
Change in provision for unearned premiums		(2,178)	31
Reinsurers' share		(1)	-
Total Insurance premiums earned		18,567	14,110
Insurance claims incurred
Insurance claims on insurance, co-insurance and reinsurance operations		(3,500)	(2,923)
Changes in loss provisions		182	(1,243)
Claims handling expenses		(497)	(733)
Reinsurers’ share		8	-
Total Insurance claims incurred		(3,814)	(4,891)

The Insurance company provides following types of insurance: Personal accident insurance and collective insurance against accidents, illnesses or loss of work provides compensation and financial protection in the event of injuries, disability, death or loss of loss of work of the borrower. It is different from life insurance and medical and health insurance. In accordance with the terms of individual insurance contracts, the policyholder and beneficiary is an individual who has entered into an insurance contract. In accordance with the terms of the collective insurance contract, the insurer is the Bank that has concluded the collective insurance contract with the Insurance Company, the beneficiary is the insured individual. Motor vehicle insurance and property insurance provides compensation for damage to a client’s vehicle or other property.

Compulsory third party liability insurance (CTP) contracts provide the insured with financial protection from the risk of civil liability of vehicle owners, which may occur as a result of harm to life, health or property of others when using vehicles. Voluntary third party (VTP) risk insurance contracts provide the insured with financial protection in case of insufficiency of insurance payment for compulsory third party liability insurance of motor vehicle owners (CTP) to compensate for harm caused to life, health and / or property. Travel insurance provides compensation in case of medical or other unforeseen expenses of the client while being away from their place of permanent residence. Staff and administrative expenses for insurance operations are included in Note 24.## 24 Administrative and Other Operating Expenses

In millions of RR

	2020	2019
Staff costs	24,335	19,204
Amortization of intangible assets	1,961	1,331
Depreciation of fixed assets	1,617	1,287
Taxes other than income tax	1,421	1,473
Information services	1,299	787
Other provisions	1,206
Depreciation of right-of-use assets	702
Professional services	11	11
Short-term and low-value lease	11	11
Collection expenses	260	600
Office maintenance and office supplies	727	548
Communication services	773	393
Security expenses	410
Other administrative expenses	11	11
Total administrative and other operating expenses	35,621	27,852

The total fees charged by the Company's statutory auditor for the statutory audit of the annual consolidated and separate financial statements of the Company for the year ended 31 December 2020 amounted to RR 6.9 million (2019: RR 2.8 million). The total fees charged by the Company's statutory auditor for the year ended 31 December 2020 for other assurance services amounted to RR 0.8 million (2019: RR 3.8 million), for tax advisory services amounted to RR 3.4 million (2019: RR 2.3 million) and for other non- assurance services amounted to RR 0.1 million (2019: 2.2 million).

Included in staff costs are statutory social contributions to the non-budget funds and share-based remuneration:

In millions of RR

	2020	2019
Statutory social contribution to the non-budget funds	4,223	3,398
Total	4,223	3,398
Share-based remuneration
- Management long-term incentive programme	1,092	469
- Key employees retention plan	372	-
Total	1,464	469

The average number of employees employed by the Group during the reporting year, including those who are working under civil contracts, was 25,970 (2019: 26,780).

25 Other Operating Income

In millions of RR

	2020	2019
Subrogation fee	250	190
Reimbursement fee	1,005	218
Other	194	310
Total other operating income	1,445	722

26 Income Taxes

Income tax expense comprises the following:

In millions of RR

	2020	2019
Current tax	10,612	13,844
Deferred tax	1,424	(4,431)
Total income tax expense	12,036	9,413

The income tax rate applicable to the majority of the Group’s income is 20% (2019: 20%). The operations of the Group are subject to multiple tax jurisdictions. The income tax rate applicable to the Russian subsidiaries of the Company is 20%. The income tax rate applicable to the Company registered in Cyprus is 12.5% (2019: 12.5%). A reconciliation between the expected and the actual taxation charge is provided below.

In millions of RR

	2020	2019
Profit before tax	56,249	45,536
Theoretical tax expense at statutory rate of 20% (2019: 20%)	11,250	9,107
Tax effect of items, which are not deductible or assessable for taxation purposes:
- Non-deductible expenses	418	709
- Other expenses including dividend tax	109	272
Unrecognised tax losses	38	226
Effects of different tax rates:
- Income on government and corporate securities taxed at different rates	(448)	(214)
- Results of companies of the Group taxed at different statutory rates	(2)	(16)
Income tax expenses for the year	12,036	9,413

Differences between IFRS and taxation regulations in Russia and other countries give rise to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and their tax bases. As all of the Group’s temporary differences arise in Russia, the tax effect of the movements in these temporary differences is detailed below and is recorded at the rate of 20% (2019: 20%). In the context of the Group’s current structure and Russian tax legislation, tax losses and current tax assets of different group companies may not be offset against current tax liabilities and taxable profits of other group companies and, accordingly, taxes may accrue even where there is a consolidated tax loss. Therefore, deferred tax assets and liabilities are offset only when they relate to the same taxable entity and the same taxation authority.

26 Income Taxes (Continued)

The tax effect of the movements in temporary differences for the year ended 31 December 2020 is detailed below.

	31 December 2019	(Charged)/ credited to profit or loss	Credited to OCI	31 December 2020
In millions of RR
Tax effect of deductible and taxable temporary differences
Loans and advances to customers	3,515	(271)	339	3,550
Tangible fixed assets	(604)	(1,019)	(44)	(506)
Right-of-use assets	(322)	(187)	35	(186)
Intangible assets	(271)	98	136	(245)
Revaluation of debt investments at FVOCI	(1,019)	26	(1,473)	(1,473)
Revaluation of debt investments at FVTPL	-	-	(34)	(34)
Accrued expenses and other temporary differences	(187)	-	377	377
Lease liabilities	339	-	231	231
Customer accounts	(44)	-	(53)	(53)
Debt securities in issue	35	-	(58)	(58)
Financial derivatives	98	(62)	(991)	(991)
Insurance provisions	136	40	2	2
Net deferred tax assets	1,375	(1,424)	663	614

The tax effect of the movements in temporary differences for the year ended 31 December 2019 is detailed below.

	1 January 2018 (IFRS 16 adoption)	Credited/ Charged to profit or loss	(charged) to OCI	31 December 2019
In millions of RR
Tax effect of deductible and taxable temporary differences
Loans and advances to customers	696	(773)	2,819	3,515
Tangible fixed assets	(601)	(21)	(3)	(604)
Right-of-use assets	-	(40)	1	(322)
Intangible assets	(285)	(324)	13	(271)
Revaluation of debt investment at FVOCI	(487)	(1,234)	-	(1,019)
Revaluation of debt investment at FVTPL	-	-	-	-
Accrued expenses and other temporary differences	(187)	333	-	339
Lease liabilities	339	-	-	231
Customer accounts	(44)	(62)	40	(53)
Debt securities in issue	35	-	(10)	(58)
Financial derivatives	(334)	-	4	2
Insurance provisions	12	1	1	2
Net deferred tax (liabilities)/assets	(1,821)	4,431	(1,234)	1,375

27 Dividends

The movements in dividends during the year ended 31 December 2020 and 2019 are as follows:

In millions of RR

	2020	2019
Dividends payable at 1 January	582	364
Dividends declared	11,563	760
Dividends paid	(11,853)	(5,856)
Foreign exchange differences and other movements	(433)
Dividends payable at 31 December	656	582

Dividends per share declared (in USD) 0.80 0.49

Dividends declared in the tables above represent dividends declared by the Board of directors are reduced by RR 74 million for the year ended 31 December 2020 due to dividends on GDRs acquired by the Company from the market not for the immediate purposes of the existing MLTIP (2019: RR 25 million).

On 11 November 2020 the Board of directors declared an interim dividend in line with the current dividend policy of USD 0.25 (RR 19.10) per share/per GDR with a total amount allocated for dividend payment of around USD 49.8 million (RR 3,807 million). Declared dividends were paid in USD on 30 November 2020.

On 5 August 2020 the Board of directors declared an interim dividend in line with the current dividend policy of USD 0.20 (RR 14.68) per share/per GDR with a total amount allocated for dividend payment of around USD 39.9 million (RR 2,925 million). Declared dividends were paid in USD on 24 August 2020.

On 11 May 2020 the Board of directors declared an interim dividend in line with the current dividend policy of USD 0.14 (RR 10.34) per share/per GDR with a total amount allocated for dividend payment of around USD 28 million (RR 2,061 million). Declared dividends were paid in USD on 1 and 2 June 2020.

On 10 March 2020 the Board of directors declared an interim dividend of USD 0.21 (RR 14.18) per share/per GDR with a total amount allocated for dividend payment of around USD 41.9 million (RR 2,826 million). Declared dividends were paid in USD on 30 March and 1 April 2020.

On 13 May 2019 the Board of directors declared an interim dividend of USD 0.17 (RR 11.09) per share/per GDR amounting to USD 31.05 million (RR 2,026 million). Declared dividends were paid in USD on 28 and 30 May 2019.

On 11 March 2019 the Board of directors declared an interim dividend of USD 0.32 (RR 21.11) per share/per GDR amounting to USD 58.4 million (RR 3,855 million). Declared dividends were paid in USD on 25 and 27 March 2019.

Dividends were declared and paid in USD throughout the years ended 31 December 2020 and 2019.

Dividends payable at 31 December 2020 related to treasury shares acquired under MLTIP amounting to RR 656 million are included in other non-financial liabilities (31 December 2019: RR 582 million).

28 Reconciliation of Liabilities Arising from Financing Activities

The table below sets out an analysis of the Group’s debt and the movements in the Group’s debt for each of the periods presented. The debt items are those that are reported as financing in the consolidated statement of cash flows.

	Debt securities in issue	Perpetual subordinated liabilities	Lease liabilities	Total
In millions of RR
At 31 December 2018	9,605	20,644	46	30,249
Adoption of IFRS 16		(6,583)	(432)	(7,670)
Cash flows from repayments	(2,267)	(1,087)	(2,699)	(5,589)
Cash flows from proceeds	1,665	1,665	1,414	4,068
Foreign exchange adjustments	(7,670)	(7,670)	(758)	(15,589)
Other non-cash movements	234	234	404	404
At 31 December 2019	26,078	18,487	1,694	46,259
Cash flows from repayments	(2,894)	(1,937)	(5,589)	(11,414)
Cash flows from proceeds	331	3,609	1,041	4,068
Foreign exchange adjustments	(114)	(758)	(64)	(1,444)
Other non-cash movements	710	(5,589)	459	459
At 31 December 2020	23,910	20,755	1,340	46,005

29 Financial and Insurance Risk Management

The risk management function within the Group is carried out with respect to financial risks, operational risks and legal risks by the management of the Bank and Insurance Company.# Financial and Insurance Risk Management

Financial risk comprises market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The primary function of financial risk management is to establish risk limits and to ensure that any exposure to risk stays within these limits. The operational and legal risk management functions are intended to ensure the proper functioning of internal policies and procedures in order to minimize operational and legal risks.

Credit risk

The Group exposes itself to credit risk, which is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Exposure to credit risk arises as a result of the Group’s lending and other transactions with counterparties giving rise to financial assets. The Group grants retail loans and SME loans to customers across all regions of Russia, therefore its credit risk is broadly diversified. The management of the Group takes special measures to mitigate growing credit risk such as decreasing of credit limits for unreliable clients, diversifying of modes of work with overdue borrowers, toughening of scoring for the new borrowers etc., giving rise to financial assets and off-balance sheet credit-related commitments. The Group’s maximum exposure to credit risk is reflected in the carrying amounts of financial assets in the consolidated statement of financial position. For financial guarantees issued, commitments to extend credit, undrawn credit lines, the maximum exposure to credit risk is the amount of the commitment (Note 31).

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

The Bank created a credit committee, which establishes general principles for lending to individual borrowers. According to these principles, the minimum requirements for potential customers are listed below:

• Citizenship of the Russian Federation;
• Age from 18 to 70 y.o., but not older than 70 y.o. at the time of loan repayment;
• Availability of a cell-phone;
• Permanent employment;
• Permanent income.

For cash loans, minimum requirements are listed below:

• The requested loan term is from 3 to 36 months;
• Cash loan volumes range between RR 50 thousand and RR 2,000 thousand.

For POS loans minimum requirements are listed below:

• The requested loan amount should exceed RR 3 thousand;
• The requested loan term is from 3 to 36 months;
• The amount of one POS loan does not exceed RR 500 thousand.

For secured loans minimum requirements are listed below:

• The requested loan secured with a car amount should be between RR 100 thousand and RR 3,000 thousand, loan term is from 3 months to 5 years. The requirement for the car is in good condition of driving with an age not more than 15 years, availability of a vehicle registration certificate and vehicle passport;
• The requested loan secured with a real estate amount should be between RR 200 thousand and RR 15,000 thousand, loan term is from 3 months to 15 years. The requirement for the real estate is an apartment in the apartment building within the Russian Federation, which is free from any encumbrances.

For car loans minimum requirements are listed below:

• The requested loan term is from 1 to 5 years;
• Car loan volumes up to RR 3,000 thousand;
• The requirement for the car is with an age not more than 18 years and availability of vehicle passport.

For loans to SME minimum requirements are listed below:

• Working capital loan: loan volumes up to RR 10,000 thousand and loan term to 6 months;
• Credit for individual entrepreneurs for any purpose: loan volumes up to RR 2,000 thousand and loan term to 36 months;
• Credit for individual entrepreneurs secured by real estate: loan volumes up to RR 15 million and loan term to 15 years. The requirement for the real estate is an apartment in the apartment building within the Russian Federation, which is free from any encumbrances;
• Investment credit line secured by real estate: loan volumes up to RR 15 million and loan term to 5 years. The requirement for the real estate is an apartment in the apartment building within the Russian Federation, which is free from any encumbrances;
• For SME with a turnover from RR 120 million per year: loan volumes up to RR 60 million and loan term to 5 years.

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

A credit decision process includes:

• Validation of the application data. The system checks the validity of the data provided (addresses, telephone numbers, age, if the applicant already uses any other products of the Bank);
• Phone verification of the application information about the potential customer, his/her employment, social and property status, etc. This step may be omitted for POS loans;
• Requesting of the previous credit history of the applicant from the three largest credit bureaus in Russia – Equifax, UCB (United Credit Bureau) and NBCH (National Bureau of Credit Histories);
• Based on all available information, the credit score of the applicant is calculated and a final decision is made about the approval of the credit product;
• The approved loan amount, loan term and tariff plan are calculated depending on the score and declared income.

Management of the Group manages the credit risk on unused limits on credit cards in the following way:

a) if the credit card loan is overdue for more than 7 days, its account will be blocked till repayment;
b) if the borrower had lost his/her source of income, then borrower account might be blocked till verification of his/her new employment;
c) if borrower’s loan debt burden in other banks is substantially bigger than at the time of loan origination or the credit quality of the borrower decreases significantly then the borrower’s limit for credit might be reduced accordingly.

When a customer experiences serious difficulties with his/her current debt servicing, he/she may be offered loan restructuring. In this case the Bank stops accrual of interest, commissions and fines and the debt amount is restructured according to a fixed instalment payment plan with not more than 36 equal monthly payments.

Another way of working with overdue loans is initiation of the state court process. This collection option statistically gives greater recovery than the sale of credit-impaired loans. Defaulted clients that could be subject to the court process are chosen by the Bank’s Collection Department considering the following criteria:

a) the client’s account balance was fixed, accrual of interest stopped;
b) information about the client is considered to be up to date;
c) the client denied restructuring program;
d) term of limitation of court actions has not expired;
e) court process is economically justified.

When loans become unrecoverable or not economically viable to pursue further collection efforts, the Collection Department may decide to sell these loans to a debt collection agency. The Collection Department considers the following criteria for credit-impaired loans qualifying for sale to external debt collection agencies:

a) loans remain unpaid after all collection procedures were performed (no payment during last 4-6 months);
b) the debtor cannot be either reached or found for the previous 4 months;
c) the debtor has no assets and there is no expectation he/she will have any in the future;
d) the debtor has died and there is no known estate or guarantor;
e) it is determined that it is not cost effective to continue collection efforts.

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

Credit risk grading system

For measuring credit risk and grading financial instruments except for loans and advances to customers by the level of credit risk, the Group applies risk grades estimated by external international rating agencies in case these financial instruments have risk grades estimated by external international rating agencies (using Fitch ratings and in case of their absence - Moody’s or Standard & Poor’s ratings adjusting them to Fitch’s categories using a reconciliation table):

Corresponding ratings of external international rating agency (Fitch)	Master scale credit risk grade
AAA, AA+ to AA-, A+ to A-	Excellent
BBB+ to BBB-, BB+	Good
BB to B+	Monitor
B, B-	Sub-standard
CCC+ to CC-	Doubtful
C, D	Default

Each master scale credit risk grade is assigned a specific degree of creditworthiness:

• Excellent – high credit quality with lowest or very low expected credit risk;
• Good – good credit quality with currently low expected credit risk;
• Monitor – adequate credit quality with a moderate credit risk;
• Sub-standard – moderate credit quality with a satisfactory credit risk;
• Doubtful – facilities that require closer monitoring and remedial management; and
• Default – facilities in which a default has occurred.

For measuring credit risk and grading loans and advances to customers, credit related commitments and those financial instruments which do not have risk grades estimated by external international rating agencies, the Group applies risk grades and the corresponding range of probabilities of default (PD):

Master scale credit risk grade	Corresponding interval
Excellent	For credit cards: non-overdue with PD < 5%; for other types of loans: non-overdue for the last 12 months with PD < 5% or with early repayments all other non-overdue loans
Good	1-30 days overdue for all types of loans or without first due date for credit card loans
Monitor	NPL 31-90 days overdue or restructured loans
Sub-standard	0-90 days overdue
Doubtful	90+ days overdue
Default

The condition of early repayments is satisfied, as described in the table above, if cumulative amount of early repayments exceed 5% of the gross carrying amount at the date of recognition of the loan.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

Each master scale credit risk grade is assigned a specific degree of creditworthiness:

• Excellent – strong credit quality with minimum expected credit risk;
• Good – adequate credit quality with low expected credit risk;
• Monitor – adequate credit quality with a moderate credit risk and credit cards loans before the first due date;
• Sub-standard – low credit quality with a substantial credit risk, includes restructured loans that are less than 90 days overdue;
• NPL – non-performing loans, credit-impaired loans more than 90 days overdue.

The rating models are regularly reviewed by the Credit Risk Department, backtested on actual default data and updated if necessary. Despite the method used, the Group regularly validates the accuracy of ratings estimates and appraises the predictive power of the models.

Expected credit loss (ECL) measurement – definitions and description of estimation techniques.

ECL is a probability-weighted estimate of the present value of future cash shortfalls (i.e., the weighted average of credit losses, with the respective risks of default occurring in a given time period used as weights). ECL measurement is based on the following components used by the Group:

• Default occurs when a financial asset is 90 days past due or less than 90 days overdue but with the final statement issued, i.e., the limit is closed, the balance is fixed, interest and commissions are no longer accrued.
• Probability of Default (PD) – an estimate of the likelihood of default to occur over a given time period.
• Exposure at Default (EAD) – an estimate of exposure at a future default date, taking into account expected changes in exposure after the reporting date, including repayments of principal and interest, and expected drawdowns on committed facilities.
• Loss Given Default (LGD) – an estimate of the loss arising on default as a percentage of the EAD. It is based on the difference between the contractual cash flows due and those that the Group would expect to receive.
• Discount Rate – a rate to discount an expected loss to its present value at the reporting date. The discount rate represents the effective interest rate (EIR) for the financial instrument or an approximation thereof.
• Lifetime period – the maximum period over which ECL should be measured. For loans with fixed maturity, the lifetime period is equal to 20 months. For revolving facilities, it is based on statistics of the average period between the moment of the loan falling into the Stage 2 until the write-off or attrition. Currently the Group estimates that this period equals to 4 years, though it is subject to periodical reassessment.
• Lifetime ECL – losses that result from all possible default events over the remaining lifetime period of the financial instrument.
• 12-month ECL – the portion of lifetime ECLs that represent the ECLs resulting from default events on a financial instrument that are possible within 12 months after the reporting date that are limited by the remaining contractual life of the financial instrument.
• Forward looking information – the information that includes the key macroeconomic variables impacting credit risk and expected credit losses for each portfolio segment. A pervasive concept in measuring ECL in accordance with IFRS 9 is that it should consider forward-looking information.
• Credit Conversion Factor (CCF) – a coefficient that shows that the probability of conversion of an off-balance sheet amount to exposure on the consolidated statement of financial position within a defined period. It can be calculated for a 12-month or lifetime period. Based on the analysis performed, the Group considers that 12-month and lifetime CCFs are the same.
• Purchased or originated credit-impaired (POCI) financial assets - financial assets that are credit-impaired upon initial recognition.

Default and credit-impaired assets – assets for which a default event has occurred.

The default definition stated above should be applied to all types of financial assets of the Group. An instrument is considered to no longer be in default (i.e., to have “cured”) when it no longer meets any of the default criteria.

Significant increase in credit risk (SICR) – the SICR assessment is performed on an individual basis for all financial assets by monitoring the triggers stated below.

The criteria used to identify SICR are monitored and reviewed periodically for appropriateness by the Group’s Risk Management Department. The Group considers a financial instrument to have experienced a SICR when one or more of the following quantitative, qualitative or backstop criteria have been met.

For interbank operations, bonds issued by banks and bonds issued by corporates and sovereigns:

• 30 days past due;
• award of risk grade “Doubtful”;
• decrease of assigned external rating by 2 notches, which corresponds to an approximate increase of PD by 2.5 times.

For credit card loans:

• 30 days past due; or
• threshold defined on an individual basis using existing scoring models: increase of the 12-month PD compared to 12-month PD estimated 18 months ago or as of the date of initial recognition (if it occurred less than 18 months ago) by 3 times or PD reaching 50% and above.

18-month period was determined as the weighted average period of the most recent date where the credit limit was revised by at least 25%, which is considered to be a substantial revision.

For all other loans:

• 30 days past due; or
• if the loans were past due for more than 30 days during the last 6 months or if the loans fell past due during the last 4 months more than once.

If the SICR criteria are no longer met, the instrument will be transferred back to Stage 1.

General principle of techniques applied

For non-POCI financial assets, ECLs are generally measured based on the risk of default over one of two different time periods, depending on whether or not the credit risk of the borrower has increased significantly since initial recognition. This approach can be summarised in a three-stage model for ECL measurement:

• Stage 1 – a financial instrument that is not credit-impaired on initial recognition and its credit risk has not increased significantly since initial recognition, the loss allowance is based on 12-month ECLs;
• Stage 2 – if since the date, which was assumed to be the date of initial recognition is identified a SICR, the financial instrument is moved to Stage 2 but is not yet deemed to be credit-impaired, the loss allowance is based on lifetime ECLs;
• Stage 3 – if the financial instrument is credit-impaired or restructured, the financial instrument is then moved to Stage 3 and the loss allowance is based on lifetime ECLs.

ECL for POCI financial assets is always measured on a lifetime basis (Stage 3), so at the reporting date, the Group only recognises the cumulative changes in lifetime expected credit losses.

The Group carries out two separate approaches for ECL measurement:

• for loans and advances to customers: assessment on a portfolio basis: internal ratings are estimated on an individual basis but the same credit risk parameters (e.g., PD, LGD) are applied during the process of ECL calculations for the same credit risk ratings and homogeneous segments of the loan portfolio;
• for all other financial assets except FVTPL: assessment based on external ratings.

The Group performs an assessment on a portfolio basis for the retail loans. This approach incorporates aggregating the portfolio into homogeneous segments based on borrower-specific information, such as delinquency, the historical data on losses and other.

Principles of assessment on portfolio basis

– to assess the staging of exposure and to measure a loss allowance on a collective basis, the Group combines its exposures into segments on the basis of shared credit risk characteristics, such as that exposures to risk within a group are homogeneous. Examples of shared characteristics include type of customer, product type, credit risk rating, date of initial recognition, overdue level and repayment statistics. The different segments reflect differences in PD. The appropriateness of groupings is monitored and reviewed on a periodic basis by the Risk Management Department.

In general, ECL is the multiplication of the following credit risk parameters: EAD, PD and LGD (definitions of the parameters are provided above). The general approach used for ECL calculation is stated below.

$$ \text{ECL} = \sum_{t=1}^{T} \frac{1+EIR}{(1+EIR)^{t}} \times PD_t \times EAD_t \times LGD_t $$

where:

• $PD_t$ – probability of default in moment $t$ (can’t be higher than 100%);
• $EAD_t$ - exposure at default in moment $t$;
• $LGD_t$ - loss given default in moment $t$;
• $t$ – number of months in the loan’s lifetime;
• $EIR$ – effective interest rate;
• $N$ – remaining amount of payments.

The ECL is determined by predicting credit risk parameters (EAD, PD and LGD) for each future month during the lifetime period for each exposure or segment. These three components are multiplied together. This effectively calculates an ECL for each future month, which is then discounted back to the reporting date and summed up. The discount rate used in the ECL calculation is the effective interest rate or an approximation thereof. The EADs are determined based on the expected payment profile, on an individual basis. For revolving products, the EAD is predicted by taking the current withdrawn balance and adding a “credit conversion factor” that accounts for the expected drawdown of the remaining limit of utilised loans by the time of default. These assumptions vary by product type, current limit utilisation and other borrower-specific behavioural characteristics.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

For other products EAD is equal to current exposure as there is no credit limit to utilize.

Two types of PDs are used for calculating ECLs: 12-month and lifetime PD:

• 12-month PDs – the estimated probability of a default occurring within the next 12 months. This parameter is used to calculate 12-month ECLs. An assessment of a 12-month PD is based on the latest available historic default data using borrower-specific behavioural characteristics and adjusted for forward-looking information when appropriate. Based on borrower-specific PDs the exposures are allocated to segments to which average PD for the segment is applied.
• Lifetime PDs – the estimated probability of a default occurring over the remaining life of the financial instrument. This parameter is used to calculate lifetime ECLs for Stage 2 and Stage 3 exposures. An assessment of a lifetime PD is based on the latest available historic default data using product specific lifetime periods defined above. To calculate Lifetime PD, the Group developed lifetime PD curves based on the 12-month PD data.

LGD represents the Group's expectation of the extent of loss on a defaulted exposure. For credit card loans, cash loans and POS loans LGDs are calculated on portfolio basis based on recovery statistics of defaulted loans over the period of 24 or 36 months. For secured loans, car loans and loans to SME LGDs are calculated using current market data in relation to the expected recoveries.

ECL measurement for loan commitments. The ECL measurement for these instruments includes the same steps as described above for on-balance sheet exposures and differs with respect to EAD calculation. The EAD is a product of credit conversion factor (“CCF”) and amount of the commitment. CCF for undrawn credit limits of credit cards and overdrafts is defined based on statistical analysis of exposures at default.

Principles of assessment based on external ratings – the principles of ECL calculations based on external ratings are the same as for their assessment on a portfolio basis. Credit risk parameters (PD and LGD) are taken from the default and recovery statistics published by international rating agencies (Fitch and in case of their absence - Moody’s or Standard & Poor’s).

Forward-looking information incorporated in the ECL models. The calculation of ECLs incorporates forward-looking information. The Group has performed historical analysis and identified the key economic variables impacting credit risk and ECLs for each portfolio. The list of variables:

• Russian stock market index MOEX;
• Moscow Prime Offered Rate;
• Debt load of Russian population based on statistics from bureaus of credit history.

The impact of these economic variables on the ECL has been determined by performing statistical regression analysis in order to understand the way how changes in these variables historically impacted default rates. Three different scenarios are used: base, optimistic and pessimistic. The scenarios are weighted accordingly with base scenario having the 71.1% (2019: 90.8%) weight, optimistic scenario having the 0.1% (2019: 1.3%) weight and pessimistic scenario having the 28.8% (2019: 7.9%) weight.

Backtesting – the Group regularly reviews its methodology and assumptions to reduce any difference between the estimates and the actual loss of credit. Such backtesting is performed on a quarterly basis. The results of backtesting the ECL measurement methodology are communicated to Group Management and further steps for refining models and assumptions are defined after discussions between authorised persons.

Market risk.

The Group takes on exposure to market risks. Market risks of the Group arise from open positions in (a) currency and (b) interest rate, both of which are exposed to general and specific market movements. The priority goal of market risk management is to maintain the risks assumed by the Group at a level determined by the Group in accordance with its own strategic objectives. Management sets limits on the value of risk that may be accepted, which is monitored on a daily basis. However, the use of this approach does not prevent losses outside of these limits in the event of more significant market movements.

Currency risk.

In respect of currency risk, the management sets limits on the level of exposure by currency and in total for both overnight and intra-day positions, which are monitored daily. The table below summarizes the Group’s exposure to foreign currency exchange rate risk at the end of the year:

	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199	84,199
	31 December 2020	31 December 2019
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
In millions of RR
RR	674,171	116,693
USD	35,019	1,405
Euro	(545,395)	(140,851)
GBP	(31,909)	(1,414)
Others	(24,276)	104,500
Total	829,230	558,231
	Net derivative position	Net derivative position
	Non-derivative monetary financial assets	Non-derivative monetary financial liabilities
RR	491,635	46,930
USD	18,902	677
Euro	(390,010)	(62,098)
GBP	(20,261)	(675)
Others	(12,995)	13,422
Total	84,199 # TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

At 31 December 2020, if interest rates at that date had been 200 basis points lower/higher (2019: 200 basis points), with all other variables held constant, profit for the year would have been RR 2,243 million (2019: RR 1,684 million) lower/higher, equity would have been RR 2,243 million (2019: RR 1,684 million) lower/higher.

The Group monitors interest rates for its financial instruments. The table below summarizes interest rates for the years 2020 and 2019 based on reports reviewed by key management personnel. For securities, the interest rates represent yields to maturity based on market quotations at the reporting date:

31 December 2020

In % p.a.	RR	USD	EURO	GPB	Other
Assets
Cash and cash equivalents	0.0	0.0	0.0	0.0	0.0
Loans and advances to customers	33.5	3.2	6.9	6.9	-
Due from banks	1.7	1.3	-	-	-
Investments in securities	37.2	5.3	7.9	6.5	-
Repurchase receivables	2.6	13.7	15.5	15.4	15.4
Brokerage receivables	3.1	14.7	14.7	13.5	14.7
Liabilities
Due to banks	4.4	6.2	5.1	9.0	0.0
Customer accounts	3.3	1	3.8	-	0.1
Debt securities in issue	8.6	0.1	1.2	-	0.1
Brokerage payables	0.0	0.0	0.0	0.0	0.0
Subordinated debt	0.5	-	-	-	-

31 December 2019

In % p.a.	RR	USD	EURO	GPB	Other
Assets
Cash and cash equivalents	0.0	0.0	0.0	0.0	0.0
Loans and advances to customers	33.5	3.2	6.9	6.9	-
Due from banks	1.7	1.3	-	-	-
Investments in securities	37.2	5.3	7.9	6.5	-
Repurchase receivables	2.6	13.7	15.5	15.4	15.4
Brokerage receivables	3.1	14.7	14.7	13.5	14.7
Liabilities
Due to banks	4.4	6.2	5.1	9.0	0.0
Customer accounts	3.3	1	3.8	-	0.1
Debt securities in issue	8.6	0.1	1.2	-	0.1
Brokerage payables	0.0	0.0	0.0	0.0	0.0
Subordinated debt	0.5	-	-	-	-

The sign “-” in the table above means that the Group does not have the respective assets or liabilities in the corresponding currency.

Geographical risk concentrations.

The geographical concentration of the Group’s financial assets and liabilities at 31 December 2020 is set out below:

In millions of RR	Russia	OECD	Non-OECD	Other	Listed	Total
Financial assets
Cash and cash equivalents	128,536	672	30,912	-	-	160,120
Mandatory cash balances with the CBRF	5,379	30,912	7,815	-	-	44,106
Due from other banks	1,887	15,475	-	-	-	17,362
Loans and advances to customers	374,629	31,070	-	-	-	405,699
Financial derivatives	5,035	-	-	-	-	5,035
Investments in securities	231,872	-	1,892	-	6,582	239,796
Repurchase receivables	29	-	-	-	14,803	14,832
Brokerage receivables	24,064	-	-	-	-	24,064
Guarantee deposits with payment systems	-	-	-	-	-	-
Other financial assets	158	-	-	-	-	158
Total financial assets	766,510	46,457	39,807	-	21,385	864,170
Financial liabilities
Due to banks	4,819	626,837	109	9,206	-	640,971
Customer accounts	23,910	2,160	34,291	-	-	60,361
Debt securities in issue	20,755	-	-	-	-	20,755
Financial derivatives	46	-	-	-	-	46
Brokerage payables	-	-	-	-	-	-
Subordinated debt	44,665	-	-	-	-	44,665
Insurance provisions	722,133	-	-	-	-	722,133
Other financial liabilities	204,868	-	-	-	-	204,868
Total financial liabilities	996,526	628,997	34,390	9,206	-	1,693,800
Credit related commitments (Note 31)

29 Financial and Insurance Risk Management (Continued)

The geographical concentration of the Group’s financial assets and liabilities at 31 December 2019 is set out below:

In millions of RR	Russia	OECD	Non-OECD	Other	Listed	Total
Financial assets
Cash and cash equivalents	52,661	501	2,903	-	-	56,065
Mandatory cash balances with the CBRF	3,448	-	-	-	-	3,448
Due from other banks	2,084	8,376	-	-	-	10,460
Loans and advances to customers	329,175	21,673	-	-	-	350,848
Financial derivatives	390	-	-	-	-	390
Investments in securities	134,765	-	8,877	-	21,673	165,315
Brokerage receivables	2,799	-	-	-	-	2,799
Guarantee deposits with payment systems	501	-	-	-	-	501
Other financial assets	2,903	-	-	-	-	2,903
Total financial assets	528,726	21,673	11,780	-	21,673	563,832
Financial liabilities
Due to banks	23	411,504	2,460	590	1,207	415,784
Customer accounts	18,487	2,342	14,648	-	-	35,477
Debt securities in issue	110	-	-	-	-	110
Financial derivatives	-	-	-	-	-	-
Brokerage payables	14,589	59	59	-	-	14,707
Subordinated debt	-	-	-	-	-	-
Insurance provisions	111	-	-	-	-	111
Other financial liabilities	209	1,254	1,694	-	-	3,157
Total financial liabilities	33,529	415,155	18,859	590	1,207	469,346
Credit related commitments (Note 31)	168,059					168,059

Assets, liabilities and credit related commitments have been based on the country in which the counterparty is located. Cash on hand has been allocated based on the country in which they are physically held. Balances with Russian counterparties actually outstanding to/from offshore companies of these Russian counterparties, are allocated to the caption “Russia”.

Other risk concentrations.

Management monitors and discloses concentrations of credit risk by obtaining reports listing exposures to borrowers with aggregated loan balances in excess of 10% of net assets. The Group did not have any such significant risk concentrations at 31 December 2020 and 2019.

Liquidity risk.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Group is exposed to daily calls on its available cash resources from unused limits on issued credit cards, retail deposits from customers, current accounts and due to banks. The Group does not maintain cash resources to meet all of these needs as experience shows that only a certain level of calls will take place and it can be predicted with a high level of certainty. Liquidity risk is managed by the Financial Committee of the Bank. The Group seeks to maintain a stable funding base primarily consisting of amounts due to institutional investors, corporate and retail customer deposits and debt securities. The Group keeps all available cash in diversified portfolios of liquid instruments such as a correspondent account with CBRF and overnight placements in high-rated commercial banks, in order to be able to respond quickly and smoothly to unforeseen liquidity requirements. The available cash at all times exceeds all accrued financing costs falling due within half a year plus two months of regular operating costs.

The liquidity management of the Group requires consideration of the level of liquid assets necessary to settle obligations as they fall due; maintaining access to a range of funding sources; maintaining funding contingency plans; and monitoring liquidity ratios against regulatory requirements. The liquidity analysis takes into account the covenant requirements and ability of the Group to waive any potential breaches within the grace period. The Bank calculates liquidity ratios on a daily basis in accordance with the requirements of the CBRF. The Bank has complied with these ratios throughout 2020 and 2019. The CFO receives information about the liquidity profile of the financial assets and liabilities. This includes daily, weekly, monthly and quarterly updates on the level of credit card transactions and repayments, statistics on credit card issuance and credit card limit utilisation, inflow and outflow of retail deposits, changes in the investment securities portfolio, level of expected outflows such as operating costs and financing activities. The CFO then ensures the availability of an adequate portfolio of short-term liquid assets, made up of an amount on the correspondent account with the CBRF and overnight deposits with banks, to ensure that sufficient liquidity is maintained within the Group as a whole. Regular liquidity stress testing under a variety of scenarios covering both normal and more severe market conditions and credit card portfolio behaviour is reviewed by the CFO.

The table below shows liabilities at 31 December 2020 by their remaining contractual maturity. The amounts of liabilities disclosed in the maturity table are the contractual undiscounted cash flows and gross loan commitments. Such undiscounted cash flows differ from the amount included in the consolidated statement of financial position because the consolidated statement of financial position amount is based on discounted cash flows. When the amount payable is not fixed, the amount disclosed is determined by reference to the conditions existing at the reporting date. Foreign currency payments are translated using the spot exchange rate at the end of the reporting period.

The maturity analysis of financial liabilities at 31 December 2020 is as follows:

In millions of RR	Demand and less than 1 month	From 1 to 3 months	From 3 to 6 months	From 6 to 12 months	More than 1 year	Total
Liabilities
Due to banks	84,412	515	251	1,930	501	87,609
Customer accounts	335,710	49,184	23,245	25,842	4,819	438,700
Debt securities in issue	173	51	9,206	168	345	10,043
Financial derivatives	34,337	64	322	207	496	35,626
Brokerage payables	22,126	297	-	102	166	22,691
Subordinated debt	-	496	953	-	998	2,447
Insurance provisions	-	-	358	-	22,126	22,484
Other financial liabilities	-	-	-	-	1,348	1,348
Lease liabilities	-	-	-	-	64	64
Total potential future payments for financial obligations	476,648	50,512	33,785	28,149	30,459	619,424
Credit related commitments (Note 31)	204,868	-	-	-	-	204,868

29 Financial and Insurance Risk Management (Continued)

The maturity analysis of financial liabilities at 31 December 2019 is as follows:

In millions of RR	Demand and less than 1 month	From 1 to 3 months	From 3 to 6 months	From 6 to 12 months	More than 1 year	Total
Liabilities
Due to banks	23	189,176	168	84,108	338	273,813
Customer accounts	70,530	487	203	60,627	2,082	133,929
Debt securities in issue	-	1,207	149	463	291	2,110
Financial derivatives	463	438	-	891	296	2,088
Brokerage payables	18,541	228	14,648	-	111	33,528
Subordinated debt	-	-	-	-	109	109
Insurance provisions	111	-	-	-	1,254	1,365
Other financial liabilities	209	1,694	-	-	-	1,903
Lease liabilities	-	-	-	-	11	11
Total potential future payments for financial obligations	89,877	192,726	15,168	146,089	4,492	448,346
Credit related commitments (Note 31)	168,059	-	-	-	-	168,059

Financial derivatives receivable and payable are disclosed in the Note 35. The tables above present only the gross payables. Insurance provisions are disclosed in the table above based on their expected maturities. Customer accounts are classified in the above analysis based on contractual maturities. However, in accordance with the Russian Civil Code, individuals have a right to withdraw their deposits prior to maturity if they forfeit their right to accrued interest.

The Group takes on exposure to liquidity risk, which is the risk of cash surplus in case of assets-liabilities cash-flow profile mismatch. Exposure to liquidity risk arises as a result of the Group’s borrowing and operational activities that assume cash payment obligations. The Group uses daily, short-term and long- term reporting, stress-testing and forecasting practices to monitor and prevent potential liquidity problems. The Group is actively increasing the number of counterparties for interbank lending, looks for new wholesale markets, improves and creates additional debit and credit products to have more instruments over cash- flow management. The recent economic situation has resulted in increased liquidity risk. In response the management of the Group preserves cash safety cushions for possible cash outflows and has planned Group’s liquidity position for the next year to ensure it can cover all upcoming payment obligations.

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

The expected maturity analysis of financial instruments at carrying amounts as monitored by management at 31 December 2020 is presented in the table below.

	Demand and less than 1 month	From 1 to 3 months	From 3 to 6 months	From 6 to 12 months	From 1 to 5 years	More than 5 years	Total
In millions of RR
Assets
Cash and cash equivalents	136,351	-	-	-	-	-	136,351
Mandatory cash balances with the CBRF	2,756	-	546	454	-	-	3,756
Due from other banks	1,887	-	-	-	-	-	1,887
Loans and advances to customers	52,623	82	238,454	29	67,843	69,011	376,521
Financial derivatives	4,953	238,454	29	-	-	-	240,643
Investments in securities	24,064	-	-	-	-	-	24,064
Repurchase receivables	2,163	30,820	2,788	44	2,836	21	38,672
Brokerage receivables	2,976	12	4,028	173	684	-	7,873
Guarantee deposits with payment systems	15,475	31,070	-	-	-	-	46,545
Other financial assets	71,221	72,322	75,926	110,135	17,319	-	346,923
Total financial assets	487,342	372,758	321,767	110,637	83,659	69,032	1,444,595
Liabilities
Due to banks	-	321,104	76	9,206	34,337	4,819	369,542
Customer accounts	63,601	52,958	61,899	127,275	870	944	307,547
Debt securities in issue	981	11,281	9,834	-	-	-	22,096
Financial derivatives	-	-	-	-	-	-	-
Brokerage payables	33	-	-	-	-	-	33
Subordinated debt	-	-	-	-	-	-	-
Insurance provisions	18,832	297	481	207	-	-	19,817
Other financial liabilities	481	953	-	961	358	-	2,753
Total financial liabilities	83,928	386,593	72,391	138,649	35,565	5,763	722,889
Net liquidity gap at 31 December 2020	403,414	(13,835)	249,376	(27,981)	48,094	63,269	721,706
Cumulative liquidity gap at 31 December 2020	403,414	389,579	638,955	610,974	659,068	722,337

Provision for unearned premiums in the amount of RR 3,907 million is not included in the insurance provisions stated above. Refer to Note 17.

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

The expected maturity analysis of financial instruments at carrying amounts as monitored by management at 31 December 2019 is presented in the table below.

	Demand and less than 1 month	From 1 to 3 months	From 3 to 6 months	From 6 to 12 months	From 1 to 5 years	More than 5 years	Total
In millions of RR
Assets
Cash and cash equivalents	55,564	-	-	-	-	-	55,564
Mandatory cash balances with the CBRF	1,508	-	510	346	-	-	2,364
Due from other banks	48,391	-	-	-	-	-	48,391
Loans and advances to customers	135,178	2,799	571	2,038	79,105	63,640	383,331
Financial derivatives	3,448	2,084	-	-	-	-	5,532
Investments in securities	63,640	-	-	-	-	-	63,640
Brokerage receivables	1,304	21,569	1,717	63	1,712	20	26,385
Guarantee deposits with payment systems	1,669	10	2,133	11	342	-	4,465
Other financial assets	65,930	65,590	64,076	84,248	13,031	-	292,875
Total financial assets	376,632	92,052	69,007	86,700	94,190	63,660	782,241
Liabilities
Due to banks	23	180,017	-	60,879	411	41,259	282,589
Customer accounts	61,884	12,689	329,175	-	-	-	403,748
Debt securities in issue	1,207	-	-	14,648	158	917	16,930
Financial derivatives	-	-	-	-	-	-	-
Brokerage payables	463	-	-	-	-	-	463
Subordinated debt	-	-	-	-	-	-	-
Insurance provisions	228	-	-	-	-	-	228
Other financial liabilities	14,648	-	-	-	-	-	14,648
Total financial liabilities	78,453	192,706	329,175	75,527	569	42,176	720,706
Net liquidity gap at 31 December 2019	298,179	(100,654)	(259,168)	11,173	93,621	21,484	61,535
Cumulative liquidity gap at 31 December 2019	298,179	197,525	(61,643)	(50,470)	43,151	64,635

Provision for unearned premiums in the amount of RR 1,760 million is not included in the insurance provisions stated above. Refer to Note 17.

As at the 31 December 2020 all the investment in debt securities are classified within demand and less than one month as they are easy repoable in CBR or on the open market securities and can provide immediate liquidity to the Group. All current accounts of individuals are classified within demand and less than one month (2019: the same). The allocation of deposits of individuals considers the statistics of autoprolongations and top-ups of longer deposits with the funds from shorter deposits after their expiration in case when the customers have more than one active deposit.

The matching and/or controlled mismatching of the maturities and interest rates of assets and liabilities is fundamental to the management of the Group. It is unusual for banks ever to be completely matched since business transacted is often of an uncertain term and of different types.

An unmatched position potentially enhances profitability but can also increase the risk of losses. The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-bearing liabilities as they mature, are important factors in assessing the liquidity of the Group and its exposure to changes in interest and exchange rates. Management believes that in spite of a substantial portion of customer accounts being on demand, diversification of these deposits by number and type of depositors, and the past experience of the Group would indicate that these customer accounts provide a long-term and stable source of funding for the Group.

Insurance risk.

Insurance risk is the risk associated with insurance contracts, consisting in the possibility of the occurrence of an insurance event and the uncertainty of the amount and time of occurrence of the loss associated with it. The insurance risk management process covers all stages, from the stage of development of insurance rates to the settlement of losses. The main steps in the insurance risk management process include:

• Underwriting and regulation of tariff policy;
• Efficiency of the loss settlement process;
• Diversification of the insurance portfolio.

Tariff policy.

The process of underwriting and regulation of the tariff policy includes the formation of tariffs for certain areas of activity based on the analysis of results for previous periods, existing market conditions and the Insurance Company's strategy. The insurance tariff is set on the basis of the analysis of the expected loss ratio based on Group’s insurance portfolio and similar products on the market, the commission ratio based on the analysis of product profitability and commission rates for similar products on the market, and the analysis of the average market rate. When developing tariffs, factors such as expected inflation and changes in the legislation of the Russian Federation are also taken into account. The Insurance Company monitors the correctness of the calculation of the insurance premium under the insurance contract by analyzing, on a regular basis, the deviations of the actual received premiums from the estimated premiums.

Loss settlement process.

In accordance with the insurance contract, the policyholder is obliged to notify the insurance company of a loss within a certain period of time. Losses are settled by specialized units, other than selling business units. The insurance claims will be paid only after receiving all the necessary documents confirming the fact of the insured event. Also, if necessary, economic security department and legal department are involved in checking documents for settlement of losses. If at the time of payment of the insurance claims the policyholder had outstanding debt of the insurance premium, the unpaid part is deducted from the amount of compensation. If there is a third party that caused an insurance loss to the insured client, the Group has a right to pursue third parties responsible for loss for payment of some or all costs related to the claims settlement process of the Group.

Diversification of the insurance portfolio.

To reduce insurance risk, the Group also uses the diversification of its insurance portfolio - it insures a large number of small risks, which, in particular, is achieved through the remote provision of insurance services almost throughout the Russian Federation. The company does not operate outside the Russian Federation and is exposed to risks associated with the geographical features of the regions of the Russian Federation.

Sensitivity analysis.

The following analyses the possible changes in the key assumptions used in the calculation of insurance liabilities under contracts other than life insurance, provided that the other assumptions are constant.## 81 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

29 Financial and Insurance Risk Management (Continued)

Effect of changes in the key assumptions as at 31 December 2020:

Change in assumptions	Effect on insurance obligations other than life	Effect on reinsurers' share in insurance obligations other than life	Effect on profit before tax	Effect on equity
The average cost of insurance claims
– 10%	(180)	1	179	143
+ 10%	180	(1)	(179)	(143)
The average number of claims
– 10%	(180)	1	179	143
+ 10%	180	(1)	(179)	(143)

In millions of RR except for the number of claims

Effect of changes in the key assumptions as at 31 December 2019:

Change in assumptions	Effect on insurance obligations other than life	Effect on reinsurers' share in insurance obligations other than life	Effect on profit before tax	Effect on equity
The average cost of insurance claims
– 10%	(193)	1	193	154
+ 10%	193	(1)	(193)	(154)
The average number of claims
– 10%	(193)	1	(193)	(154)
+ 10%	193	(1)	193	154

In millions of RR except for the number of claims

30 Management of Capital

The Group’s objectives when managing capital are (i) for the Bank to comply with the capital requirements set by the Central Bank of Russian Federation (CBRF), (ii) for the Insurance Company to comply with the capital requirements set by the legislation of the Russian Federation, (iii) for the Group to comply with the financial covenants set by the terms of securities issued; (iv) to safeguard the Group’s ability to continue as a going concern. The Group considers total capital under management to be equity attributable to shareholders of the Company as shown in the consolidated statement of financial position. The amount of capital that the Group managed as of 31 December 2020 was RR 127,016 million (31 December 2019: RR 96,082 million).

Compliance with capital adequacy ratios set by the CBRF is monitored daily and submitted to the CBRF monthly with reports outlining their calculation reviewed and signed by the Bank’s Chief Executive Officer and Chief Accountant. Other objectives of capital management are evaluated annually.

The amount of regulatory capital of Tinkoff Bank calculated in accordance with the methodology set by CBRF as at 31 December 2020 was RR 121,350 million, and the equity capital adequacy ratio (N1.0) was 13.07% (31 December 2019: RR 99,731 million and 12.12%). Minimum required statutory equity capital adequacy ratio (N1.0) was 8% as at 31 December 2020 (31 December 2019: 8%).

82 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

30 Management of Capital (Continued)

The Group also monitors capital requirements including capital adequacy ratio under the Basel III methodology of the Basel Committee on Banking Supervision: global regulatory framework for more resilient banks and banking systems (hereinafter “Basel III”). The composition of the Group’s capital calculated in accordance with the methodology set by Basel Committee with capital adjustments as set out in Basel III is as follows:

	31 December 2020	31 December 2019
Share capital	230	230
Share premium	26,998	26,998
Treasury shares	(3,238)	(3,164)
Share-based payment reserve	1,548	1,039
Retained earnings	99,540	66,880
Revaluation reserve for investments in debt securities	1,849	3,996
Less intangible assets	(7,082)	(5,435)
Non-controlling interest	89	103
Common Equity Tier 1 (CET1)	119,934	90,647
Additional Tier 1	20,755	18,487
Tier 1 capital	140,689	109,134
Total capital	140,689	109,134
Risk weighted assets (RWA)
Credit risk	562,918	412,741
Operational risk	199,184	152,881
Market risk	24,707	12,170
Total risk weighted assets (RWA)	786,809	577,792
Common equity Tier 1 capital adequacy ratio (CET1/ Total RWA), %	15.24%	15.69%
Tier 1 capital adequacy ratio (Tier 1 capital / Total RWA), %	17.88%	18.89%
Total capital adequacy ratio (Total capital / Total RWA), %	17.88%	18.89%

In millions of RR

The Group and the Bank have complied with all externally imposed capital requirements throughout the years ended 31 December 2020 and 2019. The Insurance Company has complied with all capital requirements set by the legislation of the Russian Federation throughout the years ended 31 December 2020 and 2019.

31 Contingencies and Commitments

Legal proceedings. From time to time and in the normal course of business, claims against the Group may be received. On the basis of its own estimates and internal professional advice, management is of the opinion that no material unprovided losses will be incurred in respect of claims.

83 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

31 Contingencies and Commitments (Continued)

Tax contingencies. Russian tax legislation which was enacted or substantively enacted at the end of the reporting period, is subject to varying interpretations when being applied to the transactions and activities of the Group. Consequently, tax positions taken by management and the formal documentation supporting the tax positions may be challenged tax authorities. Russian tax administration is gradually strengthening, including the fact that there is a higher risk of review of tax transactions without a clear business purpose or with tax incompliant counterparties. Fiscal periods remain open to review by the authorities in respect of taxes for three calendar years preceding the year when decision about review was made. Under certain circumstances reviews may cover longer periods.

The Russian transfer pricing legislation is generally aligned with the international transfer pricing principles developed by the Organisation for Economic Cooperation and Development (OECD), although it has specific features. This legislation provides for the possibility of additional tax assessment for controlled transactions (transactions between related parties and certain transactions between unrelated parties), if such transactions are not on an arm's length. Tax liabilities arising from controlled transactions are determined based on their actual transaction prices. It is possible, with the evolution of the interpretation of transfer pricing rules, that such transfer prices could be challenged. The impact of any such challenge cannot be reliably estimated; however, it may be significant to the financial position and/or the overall operations of the Group.

The Group includes companies incorporated outside of Russia. The tax liabilities of the Group are determined on the assumption that these companies are not subject to Russian profits tax, because they do not have a permanent establishment in Russia. The Company is a tax resident of Cyprus only and full beneficial owner of the Bank and Insurance Company. This interpretation of relevant legislation may be challenged but the impact of any such challenge cannot be reliably estimated currently; however, it may be significant to the financial position and/or the overall operations of the Group.

The Controlled Foreign Company (CFC) legislation introduced Russian taxation of profits of foreign companies and non-corporate structures (including trusts) controlled by Russian tax residents (controlling parties). The CFC income is subject to a 20% tax rate if the CFC is controlled by a legal entity and a rate of 13% if it is controlled by an individual. As a result, management reassessed the Group’s tax positions and recognised current tax expense as well as deferred taxes that arose from the expected taxable manner of recovery of the relevant Group’s operations to which the CFC legislation applies to and to the extent that the Group (rather than its owners) is obliged to settle such taxes.

In third quarter 2020 amendments to Russia-Cyprus double tax treaty were made. The Group is currently assessing the impact of those amendments. As Russian tax legislation does not provide definitive guidance in certain areas, the Group adopts, from time to time, interpretations of such uncertain areas that reduce the overall tax rate of the Group. While management currently estimates that the tax positions and interpretations that it has taken can probably be sustained, there is a possible risk that outflow of resources will be required should such tax positions and interpretations be challenged by the tax authorities. The impact of any such challenge cannot be reliably estimated; however, it may be significant to the financial position and/or the overall operations of the Group. As at 31 December 2020 and 2019 no material tax risks were identified.

Future lease payments related to leases where leased asset is of low value
The future cash outflows to which the Group is exposed and which are not reflected in the lease liabilities amounted to RR 233 million at 31 December 2020 and relate primarily to leases of assets which are of low value (31 December 2019: RR 268 million).

Compliance with covenants. The Group is subject to certain covenants related primarily to its subordinated perpetual debt. Non-compliance with such covenants may result in negative consequences for the Group. Management believes that the Group was in compliance with all such covenants as at 31 December 2020 and 31 December 2019.

Credit related commitments and performance guarantees issued. The primary purpose of these instruments is to ensure that funds are available to a customer as required. Commitments to extend credit represent unused portions of authorizations to extend credit in the form of credit card loans, guarantees. With respect to credit risk on commitments to extend credit, the Group is potentially exposed to loss in an amount equal to the total unused commitments, if the unused amounts were to be drawn down. Most commitments to extend credit are contingent upon customers maintaining specific credit standards.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

31 Contingencies and Commitments (Continued)

The Group monitors the term to maturity of credit related commitments because longer-term commitments generally have a greater degree of credit risk than shorter-term commitments.

Performance guarantees are contracts that provide compensation if another party fails to perform a contractual obligation. Such contracts do not transfer credit risk. The risk under performance guarantee contracts is the possibility that the insured event (i.e. the failure to perform the contractual obligation by another party) occurs. The key risks the Group faces are significant fluctuations in the frequency and severity of payments incurred on such contracts relative to expectations. The Group uses a scoring model to predict levels of such payments. Claims must be made before the contract matures and most claims are settled within short term. This allows the Group to achieve a high degree of certainty about the estimated payments and therefore future cash flows.

Outstanding credit related commitments and performance guarantees are as follows:

	31 December 2020	31 December 2019
In millions of RR
Unused limits on credit card loans	208,405	168,059
Credit loss allowance	(3,537)	(2,242)
Total credit related commitments, net of credit loss allowance	204,868	165,817
Performance guarantees issued	498	660
Provisions	(4)	(3)
Total performance guarantees issued, net of provisions	494	657

The total outstanding contractual amount of unused limits on contingencies and commitments liability does not necessarily represent future cash requirements, as these financial instruments may expire or terminate without being funded. In accordance with credit card service conditions the Group has a right to refuse the issuance, activation, reissuing or unblocking of a credit card, and is providing a credit card limit at its own discretion and without explaining its reasons.

The following table contains an analysis of credit related commitments by credit quality at 31 December 2020 based on credit risk grades.

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Credit related commitments
- Excellent	180,619	-	-	180,619
- Good	14,905	84	-	14,989
- Monitor	12,546	251	-	12,797
Unrecognised gross amount	208,070	335	-	208,405
Credit loss allowance	(3,513)	(24)	-	(3,537)
Unrecognised net amount	204,557	311	-	204,868

The following table contains an analysis of credit related commitments by credit quality at 31 December 2019 based on credit risk grades.

	Stage 1 (12-months ECL)	Stage 2 (lifetime ECL for SICR)	Stage 3 (lifetime ECL for credit impaired)	Total
In millions of RR
Credit related commitments
- Excellent	145,154	-	-	145,154
- Good	12,285	84	-	12,369
- Monitor	10,360	176	-	10,536
Unrecognised gross amount	167,799	260	-	168,059
Credit loss allowance	(2,228)	(14)	-	(2,242)
Unrecognised net amount	165,571	246	-	165,817

Also, the Group may decide to increase or decrease a credit card limit using a scoring model, which is based on the client's behaviour model. Therefore, the fair value of the contractual amount of revocable unused limits on contingencies and commitments is close to zero. Credit related commitments are denominated in RR.

The following table contains an analysis of performance guarantees issued by credit quality based on credit risk grades.

	31 December 2020	31 December 2019
In millions of RR	Stage 1 (12-months ECL)	Stage 1 (12-months ECL)
Performance guarantees issued
- Excellent	310	415
- Good	188	245
Unrecognised gross amount	498	660
Provisions	(4)	(3)
Unrecognised net amount	494	657

Mandatory cash balances with the CBRF of RR 5,379 million as at 31 December 2020 (31 December 2019: RR 3,448 million) represent mandatory reserve deposits which are not available to finance the Bank's day to day operations.

32 Offsetting Financial Assets and Financial Liabilities

Financial instruments subject to offsetting, enforceable master netting and similar arrangements are as follows at 31 December 2020:

	Gross amounts before master netting and similar arrangements	Amounts subject to master netting and similar arrangements not set off in the consolidated statement of financial position	Gross amounts set off in the consolidated statement of financial position	Net amount after offsetting in the consolidated statement of financial position	Net of exposure offsetting
In millions of RR	Financial instruments	Cash collateral
ASSETS
Reverse repurchase agreements	33,210	-	33,210	-	(1,317)
Brokerage receivables	24,064	-	24,064	-	(49)
Financial derivatives	4,920	-	4,920	125	4,795
Total assets subject to offsetting, master netting and similar arrangement	62,194	-	62,194	58,640	(1,241)
LIABILITIES
Due to banks	4,819	-	4,819	4,949	(130)
Brokerage payables	9,206	-	9,206	9,696	(490)
Total liabilities subject to offsetting, master netting and similar arrangement	14,025	-	14,025	14,645	(620)

Financial instruments subject to offsetting, enforceable master netting and similar arrangements are as follows at 31 December 2019:

	Gross amounts before master netting and similar arrangements	Amounts subject to master netting and similar arrangements not set off in the consolidated statement of financial position	Gross amounts set off in the consolidated statement of financial position	Net amount after offsetting in the consolidated statement of financial position	Net of exposure offsetting
In millions of RR	Financial instruments	Cash collateral
ASSETS
Reverse repurchase agreements	18,449	-	18,449	20,130	(1,681)
Brokerage receivables	2,799	-	2,799	2,239	560
Due from banks	204	-	204	227	(23)
Financial derivatives	20	-	20	23	(3)
Total assets subject to offsetting, master netting and similar arrangement	21,472	-	21,472	22,596	(1,147)
LIABILITIES
Due to banks	23	-	23	20	3
Brokerage payables	1,207	-	1,207	1,282	(75)
Financial derivatives	227	-	227	204	23
Total liabilities subject to offsetting, master netting and similar arrangement	1,457	-	1,457	1,302	204

As at 31 December 2020 the Group has master netting arrangements with counterparty banks, which are enforceable in case of default. The Group also made margin deposits with clearing house counterparty as collateral for its outstanding derivative positions. The counterparty may set off the Group’s liabilities with the margin deposit in case of default (2019: same). The disclosure does not apply to loans and advances to customers and related customer deposits.

33 Transfers of Financial Assets

The Group transferred financial assets in transactions that did not qualify for derecognition in the current periods. The table below shows the amount of operations under sale and repurchase agreements which the Group enters into in the normal course of business:

	31 December 2020	31 December 2019
In millions of RR	Carrying amount of the assets	Carrying amount of the associated liabilities
Notes
Debt securities at FVOCI pledged under repurchase agreements	13	29
Total	29	24

In the normal course of business, the Group makes borrowings on interbank market using different financial instruments as collateral to support its everyday operations in terms of liquidity. The Group also enters into reverse sale and repurchase agreements. The summary of such operations is provided in the table below:

	31 December 2020	31 December 2019
In millions of RR	Amounts granted under repo agreements	Fair value of securities received as collateral
Notes
Cash and cash equivalents	5	10
Brokerage receivables	33,210	24,064
Total	57,274	58,640

34 Non-Controlling Interest

The following table provides information about each subsidiary that has non-controlling interest:

Place of business (and country of incorporation if different)	Proportion of non-controlling interest’s voting rights held	Proportion of non-controlling interest in the subsidiary	Profit or loss attributable to non-controlling interest during the year	Accumulated non-controlling interest	Dividends paid to non-controlling interest
In millions of RR
Year ended 31 December 2020
LLC “Cloudpayments”	Russia	5%	5%	4	1
				89	18
Year ended 31 December 2019
LLC “Cloudpayments”				103

The summarised financial information of these subsidiaries was as follows:

	Current assets	Non-current assets	Current liabilities	Non-current liabilities	Total assets	Revenue	Profit or loss	Total comprehensive income	Cash flows
In millions of RR
Year ended 31 December 2020
LLC “Cloudpayments”	389	329	277	301	105	136	-	-	1,226
					606	91	606	91	(13)
Year ended 31 December 2019
LLC “Cloudpayments”	512

35 Financial Derivatives

The table below sets out fair values, at the end of the reporting period, of currencies receivable or payable under foreign exchange forwards and swap contracts entered into by the Group. The table reflects gross positions before the netting of any counterparty positions (and payments) and covers the contracts with settlement dates after the end of the respective reporting period.# TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

36 Fair Value of Financial Instruments

Fair value measurements are analysed by level in the fair value hierarchy as follows: (i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities, (ii) level two measurements are valuation techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and (iii) level three measurements are valuations not based on observable market data (that is, unobservable inputs).

(a) Recurring fair value measurements

Recurring fair value measurements are those that the accounting standards require or permit in the consolidated statement of financial position at the end of each reporting period. The levels in the fair value hierarchy into which the recurring fair value measurements are categorised are as follows:

	31 December 2020				31 December 2019
In millions of RR	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
ASSETS AT FAIR VALUE
Loans and advances to customers	-	-	5,035	5,035	-	-	390	390
Financial derivatives	-	1,892	-	1,892	-	1,939	-	1,939
Investments in securities	-	238,454	-	238,454	-	133,239	-	133,239
Repurchase receivables	-	29	-	29	-	29	-	29
Total assets recurring fair value measurements	-	240,375	5,035	245,410	-	135,178	390	135,568
LIABILITIES AT FAIR VALUE
Other financial liabilities	-	-	161	161	-	109	-	109
Financial derivatives	-	590	-	590	-	590	-	590
Total liabilities recurring fair value measurements	-	590	161	751	-	700	-	700

Investments in securities categorised in level 2 are represented by liquid debt securities classified in “Good” credit risk grade.

The description of valuation techniques and the description of the inputs used in the fair value measurement for level 2 and level 3 measurements at 31 December 2020 are as follows:

	In millions of RR	Valuation technique	Inputs used
ASSETS AT FAIR VALUE
Investments in securities	6,256	Quotes from the automated fair value system for financial instruments of NSD Price Center*	Observable quotes for comparable securities adjusted by multiplicator depending on the degree of the market activity
Foreign exchange swaps and forwards	5,035	Discounted cash flows adjusted for counterparty credit risk	Russian rouble curve. USD Dollar Swaps Curve. EUR Swaps Curve. CDS quotes assessment of counterparty credit risk or reference entities.
Total recurring fair value measurements at level 2	11,291
Loans and advances to customers	1,892	Revaluation of the convertible loan based on the Incantus Holding Limited’s share price as per its most recent sale purchase transactions with shares of Incantus Holding Limited (Note 38)	Share price as per the most recent sale purchase transaction
Total recurring fair value measurements at level 3	1,892
LIABILITIES AT FAIR VALUE
Foreign exchange swaps and forwards	109	Discounted cash flows adjusted for counterparty credit risk	Russian rouble curve. USD Dollar Swaps Curve. EUR Swaps Curve. CDS quotes assessment of counterparty credit risk or reference entities.
Total recurring fair value measurements at level 2	109

The description of valuation techniques and the description of the inputs used in the fair value measurement for level 2 measurements at 31 December 2019 are as follows:

	In millions of RR	Valuation technique	Inputs used
ASSETS AT FAIR VALUE
Investments in securities	1,939	Quotes from the automated fair value system for financial instruments of NSD Price Center*	Observable quotes for comparable securities adjusted by multiplicator depending on the degree of the market activity
Foreign exchange swaps and forwards	390	Discounted cash flows adjusted for counterparty credit risk	Russian rouble curve. USD Dollar Swaps Curve. EUR Swaps Curve. CDS quotes assessment of counterparty credit risk or reference entities.
Total recurring fair value measurements at level 2	2,329
LIABILITIES AT FAIR VALUE
Foreign exchange swaps and forwards	590	Discounted cash flows adjusted for counterparty credit risk	Russian rouble curve. USD Dollar Swaps Curve. EUR Swaps Curve. CDS quotes assessment of counterparty credit risk or reference entities.
Total recurring fair value measurements at level 2	590

• NSD Valuation Center is a fair value measurement service for bonds and other financial instruments, accredited by the CBRF.

There were no changes in the valuation techniques for level 2 recurring fair value measurements during the year ended 31 December 2020 and 2019. Level 2 derivatives comprise foreign exchange forwards and swaps. The foreign exchange forwards have been fair valued using forward exchange rates that are quoted in an active market. Foreign exchange swaps are fair valued using forward interest rates extracted from observable yield curves. The effects of discounting are generally insignificant for level 2 derivatives.

Changes of the fair value measurements at Level 3 for the year ended 31 December 2020 are as follows:

	In millions of RR
Fair value at the date of recognition	1,374
Other interest income	8
Net gains from foreign exchange translation	16
Net gains from revaluation of convertible loan	494
Fair value as at 31 December 2020 - Level 3	1,892

As at 31 December 2020, if the share price had been 10% lower/higher, fair value of loans and advances to customers carried at fair value would have been RR 64 million lower/higher.

(b) Assets and liabilities not measured at fair value but for which fair value is disclosed

Fair values analysed by level in the fair value hierarchy and carrying value of assets not measured at fair value are as follows:

	31 December 2020				31 December 2019
In millions of RR	Level 1	Level 2	Level 3	Carrying value	Level 1	Level 2	Level 3	Carrying value
FINANCIAL ASSETS CARRIED AT AMORTISED COST
Cash and cash equivalents
- Cash on hand	-	-	-	21,069	-	-	-	11,118
- Cash balances with the CBRF (other than mandatory reserve deposits)	-	-	-	21,069	-	-	-	11,118
Placements with other banks and non-bank credit organizations with original maturities of less than three months	-	76,636	-	76,636	-	27,847	-	27,847
Mandatory cash balances with the CBRF	-	-	-	5,379	-	-	-	3,448
Due from other banks	-	1,887	-	1,887	-	2,084	-	2,084
Loans and advances to customers	-	-	-	374,996	-	-	-	329,340
Guarantee deposits with payment systems	-	15,475	-	15,475	-	24,064	-	24,064
Brokerage receivables	-	-	-	2,799	-	-	-	2,799
Other financial assets	-	-	-	23,882	-	-	-	16,384
Settlement of operations with plastic cards receivable	-	-	-	7,188	-	-	-	5,289
Other receivables	-	-	-	390,471	-	-	-	338,217
Total financial assets carried at amortised cost	-	94,000	-	863,405	-	54,000	-	729,500

Fair values analysed by level in the fair value hierarchy and carrying value of liabilities not measured at fair value are as follows:

	31 December 2020				31 December 2019
In millions of RR	Level 1	Level 2	Level 3	Carrying value	Level 1	Level 2	Level 3	Carrying value
FINANCIAL LIABILITIES CARRIED AT AMORTISED COST
Due to banks	-	-	-	4,819	-	-	-	23
Brokerage payables	-	-	-	9,206	-	-	-	1,207
Customer accounts
Individuals
-Current/demand accounts	-	-	-	323,145	-	-	-	199,408
- Brokerage accounts	-	-	-	73,970	-	-	-	12,253
-Term deposits	-	-	-	138,971	-	-	-	139,114
SME
-Current/demand accounts	-	-	-	89,199	-	-	-	60,174
-Term deposits	-	-	-	1,915	-	-	-	1,879
Other legal entities
-Current/demand accounts	-	-	-	2,267	-	-	-	495
-Term deposits	-	-	-	48	-	-	-	112
Debt securities in issue
RR Bonds issued on domestic market	24,824	-	-	24,824	22,174	-	-	22,174
Euro-Commercial Paper	-	-	-	23,910	-	-	-	2,460
Subordinated debt	-	-	-	24,442	-	-	-	2,460
Perpetual subordinated bonds	-	-	-	23,618	-	-	-	18,487
Other financial liabilities
Settlement of operations with plastic cards	-	-	-	23,079	-	-	-	3,537
Trade payables	-	-	-	6,150	-	-	-	1,571
Credit related commitments	-	-	-	-	-	-	-	6,427
Other financial liabilities	-	-	-	4,621	-	-	-	2,242
Total financial liabilities carried at amortised cost	24,824	-	-	821,350	22,174	-	-	444,750

Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by an active quoted market price. Where quoted market prices are not available, the Group used valuation techniques. The fair value of floating rate instruments that are not quoted in an active market was estimated to be equal to their carrying amount.# 36 Fair Value of Financial Instruments (Continued)

The fair value of unquoted fixed interest rate instruments was estimated based on estimated future cash flows expected to be received discounted at current interest rates for new instruments with similar credit risk and remaining maturity. As at 31 December 2020 and 2019 the fair value of the debt securities in issue and subordinated debt has been calculated based on quoted prices from the Moscow Exchange MICEX-RTS, St. Petersburg Exchange and Global Exchange Market, where the Group’s debt securities are listed and traded.

Weighted average discount rates used in determining fair value as of 31 December 2020 and 2019 are disclosed below:

	31 December 2020	31 December 2019
In % p.a.
Assets
Cash and cash equivalents	0.0	0.0
Due from other banks	5.2	5.2
Loans and advances to customers	37.2	37.2
Investments in securities	7.1	7.1
Repurchase receivables	4.7	4.7
Brokerage receivables	15.2	15.2
Liabilities
Due to banks	4.4	2.2
Customer accounts	6.1	15.6
Debt securities in issue	5.3	7.2
Brokerage payables	3.9	7.5
Subordinated debt	15.5	6.8

37 Presentation of Financial Instruments by Measurement Category

For the purposes of measurement, IFRS 9 “Financial Instruments” classifies financial assets into the following categories: (a) financial assets at FVTPL; (b) financial assets at FVOCI and (c) financial assets at AC. Financial assets at FVTPL have two sub-categories: (i) assets measured at FVTPL mandatorily, and (ii) assets designated as such upon initial recognition.

The following table provides a reconciliation of classes of financial assets with these measurement categories as of 31 December 2020:

	AC	FVTPL	FVOCI	Total
In millions of RR
Cash and cash equivalents
- Cash on hand	21,069	-	-	21,069
- Cash balances with the CBRF (other than mandatory reserve deposits)	38,646	-	-	38,646
Placements with other banks and non-bank credit organizations with original maturities of less than three months	76,636	-	-	76,636
Mandatory cash balances with the CBRF	5,379	-	-	5,379
Due from other banks	1,887	374,629	-	376,521
Loans and advances to customers	5,035	-	-	5,035
Financial derivatives	-	1,892	-	1,892
Guarantee deposits with payment systems	15,475	-	-	15,475
Investments in securities	238,454	29	4,265	242,748
Repurchase receivables	-	-	234,189	234,189
Brokerage receivables	24,064	-	-	24,064
Other financial assets
- Settlement of operations with plastic cards receivable	23,882	-	-	23,882
- Other receivables	7,188	-	-	7,188
TOTAL FINANCIAL ASSETS	588,855	11,192	234,218	834,265

The following table provides a reconciliation of classes of financial assets with these measurement categories as of 31 December 2019:

	AC	FVTPL	FVOCI	Total
In millions of RR
Cash and cash equivalents
- Cash on hand	11,118	-	-	11,118
- Cash balances with the CBRF (other than mandatory reserve deposits)	16,599	-	-	16,599
Placements with other banks and non-bank credit organizations with original maturities of less than three months	27,847	-	-	27,847
Mandatory cash balances with the CBRF	3,448	-	-	3,448
Due from other banks	2,084	329,175	-	331,259
Loans and advances to customers	-	390	-	390
Financial derivatives	8,877	135,178	2,799	146,854
Guarantee deposits with payment systems	-	-	413	413
Investments in securities	8,877	-	-	8,877
Repurchase receivables	2,799	-	-	2,799
Brokerage receivables	134,765	-	-	134,765
Other financial assets
- Settlement of operations with plastic cards receivable	16,384	-	-	16,384
- Other receivables	5,289	-	-	5,289
TOTAL FINANCIAL ASSETS	423,620	803	134,765	559,188

As of 31 December 2020 and 2019 all of the Group’s financial liabilities except derivatives were carried at amortised cost.

38 Related Party Transactions

Parties are generally considered to be related if the parties are under common control or one party has the ability to control the other party or can exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form. Other related parties (excluding associates and joint ventures) in the tables below are represented by entities which are under the control of the Group’s ultimate controlling party Oleg Tinkov.

The outstanding balances with related parties were as follows:

	31 December 2020	31 December 2019
In millions of RR	Key Associates, management personnel	joint ventures and other related parties
ASSETS
Gross amounts of loans and advances to customers (contractual interest rate: 1.7- 16.5% p.a. (31 December 2019: 11.7-25.7% p.a.))	422	1,892
Other financial assets	-	150
TOTAL ASSETS	422	2,050
LIABILITIES
Customer accounts (contractual interest rate: 0.8-3.7% p.a. (31 December 2019: 0.5-7.2% p.a.))	1,221	2,086
Debt securities in issue (yield: 1.0-3.6% p.a. (31 December 2019: 1.0-3.6% p.a.))	-	-
Other non-financial liabilities	-	584
TOTAL LIABILITIES	1,805	2,086
EQUITY
Share-based payment reserve - Management long-term incentive program	1,378	-
TOTAL EQUITY	1,378	-

At 31 August 2020 the Group acquired 22.15% shareholding in Incantus Holding Limited, which is a group of fintech start-ups launched in 2020 to provide a range of services to retail customers in Europe (excluding CIS). The investment in Incantus Holding Limited was classified as an investment in associates and accounted for using the equity method. Also the Group provided a convertible loan to Incantus Holding Limited in the amount of EUR 15.4 million (RR 1,374 million) at 1.7% p.a. with a maturity date of 31 August 2025. The convertible loan agreement implies that the Group may convert the loan into the borrower's shares at the price of initial acquisition of shares of Incantus Holding Limited by the Group subject to compliance with a number of conversion requirements including a cap in relation to overall shareholding of the Group in Incantus Holding Limited of 24.5%. As at 31 December 2020 the shareholding of the Group in Incantus Holding Limited is equal to 16.32%, and the carrying value of the convertible loan is equal to RR 1,892 million. The Company has extended rights under the Shareholder Agreement at the board meeting level (Board Reserved matters) and at the shareholder meeting level (Shareholder Reserved matters) in Incantus Holding Limited which provides the Company significant influence over it and allows to treat it as associate.

The income and expense items with related parties were as follows:

	2020	2019
In millions of RR	Key Associates, management personnel	joint ventures and other related parties
Interest income calculated using the effective interest rate method	18	32
Other similar income	-	2
Interest expense calculated using effective interest rate method	(29)	(33)
Net (losses)/gains from foreign exchange translation	494	(248)
Net gains from financial assets at FVTPL	(64)	(101)
Administrative and other operating expenses	31	-
Other operating income	-	(2,895)

Key management compensation is presented below:

	2020	2019
In millions of RR
Short-term benefits:
- Salaries	1,086	906
- Short-term bonuses	921	586
Long-term benefits:
- Management long-term incentive programme	862	421
- Key employees retention plan	26	-
Total	2,895	1,913

Key employees retention plan (KERP). On 14 April 2020 the Group launched a new long term incentive program for more than 250 senior and middle management level employees. The purpose of the program is to retain and motivate key employees with high potential. This is a performance-based cash-settled program linked to the market price of GDRs. The expenses related to those participants who are considered to be key management personnel are disclosed in the table above.

Management long-term incentive program. On 31 March 2016 the Group introduced a MLTIP as both a long-term incentive and a retention tool for the management of the Group. Total number of GDRs attributable to the management is 15,290 thousand as at 31 December 2020 (31 December 2019: 9,940 thousand). Participants of the program receive the vested parts of their grants provided that they remain employed by the Group throughout the vesting period. Participants are entitled to the dividends, if any. Participants who leave the Group lose their right for the unvested parts of the grants. The fair value of the awards as at grant dates (31 March 2016, 8 February 2017, 22 February 2018, 15 January 2019, 5 June 2020 and 11 December 2020) is determined on the basis of market quotes of GDRs as at those dates. Each grant before 2020 is divided into 4 equal awards. Each award vests over 4 years in equal tranches. The delivery dates as of which the GDRs are allowed to be sold by the participants correspond to the vesting dates 31 March, as well as each subsequent 31 March (with the exception of 2019 when the vesting date for all participants was 31 January 2019) until 2022 for participants joining in 2016, until 2023 for participants joining in 2017, until 2024 for participants joining in 2018, until 2025 for participants joining in 2019.

Each grant provided in 2020 is divided into 5 equal tranches.The delivery dates as of which the GDRs are allowed to be sold by the participants correspond to the vesting dates 31 August, as well as each subsequent 31 August until 2025. The following table discloses the changes in the numbers of GDRs attributable to the MLTIP:

Number of GDRs In thousands attributable to the MLTIP	At 31 December 2018	Granted	Vested	Forfeited	At 31 December 2019	Granted	Vested	Forfeited	At 31 December 2020
	6,178	91	(2,419)	(68)	3,782	5,350	(1,810)	(46)	7,276

39

Events after the End of the Reporting Period

On 10 March 2021 the Board of directors declared an interim dividend in line with the current dividend policy of USD 0.24 per share/per GDR with a total amount allocated for dividend payment of approximately USD 47.8 million. On 7 January 2021 all 69,914,043 class B shares (35.08% of the total number of issued shares) held by the Rigi Trust and the Bernina Trust were converted to class A shares and on the same date all isued shares were reclassified and redesignated as ordinary shares. Following the conversion, each share carries a single vote, and the total number of votes capable of being exercised are equal to the total number of issued shares (currently 199,305,492 shares following the class B share conversion). As a result of the conversion, Mr. Oleg Tinkov's voting rights in the Group decreased from 84.38% to 35.08%. As a result his control over the Group was ceased.

40

Significant Accounting Policies

Basis of preparation. These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law Cap. 113. The consolidated financial statements have been prepared under the historical cost convention, as modified by the initial recognition of financial instruments based on fair value, and by revaluation of financial instruments categorised at fair value through profit or loss (“FVTPL”) and at fair value through other comprehensive income (“FVOCI”). The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. Refer to Note 41. Management prepared these consolidated financial statements on a going concern basis.

99

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40

Significant Accounting Policies (Continued)

Consolidated financial statements. Subsidiaries are those investees, including structured entities, that the Group controls because the Group (i) has power to direct relevant activities of the investees that significantly affect their returns, (ii) has exposure, or rights, to variable returns from its involvement with the investees, and (iii) has the ability to use its power over the investees to affect the amount of investor’s returns. The existence and effect of substantive rights, including substantive potential voting rights, are considered when assessing whether the Group has power over another entity. For a right to be substantive, the holder must have practical ability to exercise that right when decisions about the direction of the relevant activities of the investee need to be made. The Group may have power over an investee even when it holds less than majority of voting power in an investee. In such a case, the Group assesses the size of its voting rights relative to the size and dispersion of holdings of the other vote holders to determine if it has de-facto power over the investee. Protective rights of other investors, such as those that relate to fundamental changes of investee’s activities or apply only in exceptional circumstances, do not prevent the Group from controlling an investee. Subsidiaries are consolidated from the date on which control is transferred to the Group (acquisition date) and are deconsolidated from the date on which control ceases. The acquisition method of accounting is used to account for the acquisition of subsidiaries other than those acquired from parties under common control. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest. The Group measures non-controlling interest that represents present ownership interest and entitles the holder to a proportionate share of net assets in the event of liquidation on a transaction by transaction basis, either at: (a) fair value, or (b) the non-controlling interest's proportionate share of net assets of the acquiree. Non-controlling interests that are not present ownership interests are measured at fair value. Goodwill is measured by deducting the net assets of the acquiree from the aggregate of the consideration transferred for the acquiree, the amount of non-controlling interest in the acquiree and fair value of an interest in the acquiree held immediately before the acquisition date. Any negative amount (“negative goodwill”) is recognised in profit or loss, after management reassesses whether it identified all the assets acquired and all liabilities and contingent liabilities assumed, and reviews appropriateness of their measurement. The consideration transferred for the acquiree is measured at the fair value of the assets given up, equity instruments issued and liabilities incurred or assumed, including fair value of assets or liabilities from contingent consideration arrangements, but excludes acquisition related costs such as advisory, legal, valuation and similar professional services. Transaction costs incurred for issuing equity instruments are deducted from equity; transaction costs incurred for issuing debt are deducted from its carrying amount and all other transaction costs associated with the acquisition are expensed. Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated; unrealised losses are also eliminated unless the cost cannot be recovered. The Company and all of its subsidiaries use uniform accounting policies consistent with the Group’s policies. Non-controlling interest is that part of the net results and of the equity of a subsidiary attributable to interests which are not owned, directly or indirectly, by the Group. Non-controlling interest forms a separate component of the Group’s equity. When the Group acquires a dormant company with no business operations holding an asset and this asset is the main reason of acquisition of the company such transaction is treated as an asset acquisition. No goodwill is recognized as a result of such acquisition. Purchases and sales of non-controlling interests. The Group applies the economic entity model to account for transactions with owners of non-controlling interest. Any difference between the purchase consideration and the carrying amount of non-controlling interest acquired is recorded as a capital transaction directly in equity. The Group recognises the difference between sales consideration and carrying amount of non-controlling interest sold as a capital transaction in the consolidated statement of changes in equity.

100

TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40

Significant Accounting Policies (Continued)

Associates. Associates are entities over which the Group has significant influence (directly or indirectly), but not control, generally accompanying a shareholding of between 20 and 50 percent of the voting rights. Investments in associates are accounted for using the equity method of accounting and are initially recognised at cost. The carrying amount of associates includes goodwill identified on acquisition less accumulated credit losses, if any. Dividends received from associates reduce the carrying value of the investment in associates. Other post-acquisition changes in Group’s share of net assets of an associate are recognised as follows: (i) the Group’s share of profits or losses of associates is recorded in the consolidated profit or loss for the year as share of result of associates, (ii) the Group’s share of other comprehensive income is recognised in other comprehensive income and presented separately, (iii); all other changes in the Group’s share of the carrying value of net assets of associates are recognised in profit or loss within the share of result of associates. However, when the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. Otherwise the Group continue to recognise further losses if it has commitments to fund the associate’s operations. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates; unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. The Group applies the impairment requirements in IFRS 9 to long-term loans and similar long-term interest that in substance form part of the investment in associate before reducing the carrying value of the investment by a share of a loss of the investee that exceeds the amount of the Group’s interest in the ordinary shares. Disposals of subsidiaries, associates or joint ventures. When the Group ceases to have control or significant influence, any retained interest in the entity is remeasured to its fair value, with the change in carrying amount recognised in profit or loss. The fair value is the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset.In addition, any amounts previously recognised in other comprehensive income in respect of that entity, are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are recycled to profit or loss. If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit or loss, where appropriate.

Financial instruments – key measurement terms

Depending on their classification financial instruments are carried at fair value or amortised cost as described below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The best evidence of fair value is price in an active market. An active market is one in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. Fair value of financial instruments traded in an active market is measured as the product of the quoted price for the individual asset or liability and the quantity held by the entity. This is the case even if a market’s normal daily trading volume is not sufficient to absorb the quantity held and placing orders to sell the position in a single transaction might affect the quoted price. The price within the bid-ask spread which management considers to be the most representative of fair value for quoted financial assets and liabilities is the last bid price of the business day.

A portfolio of financial derivatives or other financial assets and liabilities that are not traded in an active market is measured at the fair value of a group of financial assets and financial liabilities on the basis of the price that would be received to sell a net long position (an asset) for a particular risk exposure or paid to transfer a net short position (a liability) for a particular risk exposure in an orderly transaction between market participants at the measurement date.

101

TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

This is applicable for assets carried at fair value on a recurring basis if the Group:
(a) manages the group of financial assets and financial liabilities on the basis of the entity’s net exposure to a particular market risk (or risks) or to the credit risk of a particular counterparty in accordance with the entity’s documented risk management or investment strategy;
(b) it provides information on that basis about the group of assets and liabilities to the entity’s key management personnel; and
(c) the market risks, including duration of the entity’s exposure to a particular market risk (or risks) arising from the financial assets and financial liabilities is substantially the same.

Valuation techniques such as discounted cash flow models or models based on recent arm’s length transactions or consideration of financial data of the investees, are used to measure fair value of certain financial instruments for which external market pricing information is not available.

Fair value measurements are analysed by level in the fair value hierarchy as follows:
(i) level one are measurements at quoted prices (unadjusted) in active markets for identical assets or liabilities,
(ii) level two measurements are valuations techniques with all material inputs observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices), and
(iii) level three measurements are valuations not based on solely observable market data (that is, the measurement requires significant unobservable inputs).

Transfers between levels of the fair value hierarchy are deemed to have occurred at the end of the reporting period. Refer to Note 36.

Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial instrument. An incremental cost is one that would not have been incurred if the transaction had not taken place. Transaction costs include fees and commissions paid to agents (including employees acting as selling agents), advisors, brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative or holding costs.

Amortised cost (“AC”) is the amount at which the financial instrument was recognised at initial recognition less any principal repayments, plus accrued interest, and for financial assets less any allowance for expected credit losses. Accrued interest includes amortisation of transaction costs deferred at initial recognition and of any premium or discount to maturity amount using the effective interest method. Accrued interest income and accrued interest expense, including both accrued coupon and amortised discount or premium (including fees deferred at origination, if any), are not presented separately and are included in the carrying values of related items in the consolidated statement of financial position.

The effective interest method is a method of allocating interest income or interest expense over the relevant period, so as to achieve a constant periodic rate of interest (effective interest rate) on the carrying amount. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts (excluding future credit losses) through the expected life of the financial instrument or a shorter period, if appropriate, to the gross carrying amount of a financial asset or to the amortised cost of a financial liability. The calculation does not consider expected credit losses and includes transaction costs, premiums or discounts and fees and points paid or secured that are integral to the effective interest rate such as origination fees. The effective interest rate discounts cash flows of variable interest instruments to the next interest repricing date, except for the premium or discount, which reflects the credit spread over the floating rate specified in the instrument, or other variables that are not reset to market rates. Such premiums or discounts are amortised over the whole expected life of the instrument. The present value calculation includes all fees paid or received between parties to the contract that are an integral part of the effective interest rate. For assets that are purchased or originated credit impaired (“POCI”) at initial recognition, the effective interest rate is adjusted for credit risk, i.e. it is calculated based on the expected cash flows on initial recognition instead of contractual payments.

102

TCS Group Holding PLC

Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Financial instruments – initial recognition

Financial instruments at FVTPL are initially recorded at fair value. All other financial instruments are initially recorded at fair value adjusted for transaction costs that are incremental and directly attributable to the acquisition or the issue of the financial asset or financial liability. Fair value at initial recognition is best evidenced by the transaction price. A gain or loss on initial recognition is only recorded if there is a difference between fair value and transaction price which can be evidenced by other observable current market transactions in the same instrument or by a valuation technique whose inputs include only data from observable markets.

After the initial recognition, an ECL allowance is recognised for financial assets measured at AC and investments in debt instruments measured at FVOCI, resulting in an immediate accounting loss. All purchases and sales of financial assets that require delivery within the time frame established by regulation or market convention (“regular way” purchases and sales) are recorded at trade date, which is the date on which the Group commits to deliver a financial asset.

The Group uses discounted cash flow valuation techniques to determine the fair value of currency swaps, foreign exchange forwards that are not traded in an active market. Differences may arise between the fair value at initial recognition, which is considered to be the transaction price, and the amount determined at initial recognition using a valuation technique. The differences are immediately recognised in profit or loss if the valuation uses only level 1 or level 2 inputs.

Financial assets – classification and subsequent measurement – measurement categories

The Group classifies financial assets in the following measurement categories: FVTPL, FVOCI and AC. The classification and subsequent measurement of debt financial assets depends on:
* the Group’s business model for managing the related assets portfolio and the cash flow characteristics of the asset.

Financial assets – classification and subsequent measurement – business model

The business model reflects how the Group manages the assets in order to generate cash flows – whether the Group’s objective is:
* solely to collect the contractual cash flows from the assets (“hold to collect contractual cash flows”); or
* to collect both the contractual cash flows and the cash flows arising from the sale of assets (“hold to collect contractual cash flows and sell”);
* if neither of i) and ii) is applicable, the financial assets are classified as part of “other” business model and measured at FVTPL.

Business model is determined for a group of assets (on a portfolio level) based on all relevant evidence about the activities that the Group undertakes to achieve the objective set out for the portfolio available at the date of the assessment.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Financial assets – classification and subsequent measurement – cash flow characteristics.

Factors considered by the Group in determining the business model include the purpose and composition of a portfolio, past experience on how the cash flows for the respective assets were collected, how risks are assessed and managed, how the assets’ performance is assessed and how managers are compensated. Based on the analysis performed the Group included the following financial instruments in the business model “hold to collect contractual cash flows” since the Group manages these financial instruments solely to collect contractual cash flows: cash and cash equivalents, mandatory cash balances with the CBRF, due from other banks, loans and advances to customers, guarantee deposits with payment systems, brokerage receivables and other financial assets. The Group included debt securities at FVOCI in the business model “hold to collect contractual cash flows and sell” since the Group manages these financial instruments to collect both the contractual cash flows and the cash flows arising from the sale of assets. The Group included debt securities measured at FVTPL and financial derivatives in the business model “other”.

Where the business model is to hold assets to collect contractual cash flows or to hold contractual cash flows and sell, the Group assesses whether the cash flows represent solely payments of principal and interest (the SPPI test). Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are consistent with the SPPI feature. In making this assessment, the Group considers whether the contractual cash flows are consistent with a basic lending arrangement, i.e. interest includes only consideration for credit risk, time value of money, other basic lending risks and profit margin. Where the contractual terms introduce exposure to risk or volatility that is inconsistent with a basic lending arrangement, the financial asset is classified and measured at FVTPL. The SPPI assessment is performed on initial recognition of an asset and it is not subsequently reassessed. However, if the contractual terms of the asset are modified, the Group considers if the contractual cash flows continue to be consistent with a basic lending arrangement in assessing whether the modification is substantial. See below for “Financial assets – modification”.

Financial assets – reclassification.

Financial instruments are reclassified only when the business model for managing the portfolio as a whole changes. The reclassification has a prospective effect and takes place from the beginning of the first reporting period that follows after the change in the business model. The Group did not change its business model during the current and comparative period and did not make any reclassifications.

Financial assets – impairment – credit loss allowance for ECL.

The Group assesses on a forward- looking basis the ECL for debt instruments (including loans) measured at AC and FVOCI and for the exposure arising from loan commitments and financial guarantee contracts. The Group measures ECL and recognises credit loss allowance at each reporting date. The measurement of ECL reflects:

1. an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes;
2. the time value of money; and
3. all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.

Debt instruments measured at AC are presented in the consolidated statement of financial position net of the allowance for ECL. For loan commitments (where those components can be separated from the loan) and financial guarantees, a separate provision for ECL is recognised as a financial liability in the consolidated statement of financial position. For debt instruments at FVOCI, changes in amortised cost, net of allowance for ECL, are recognised in profit or loss and other changes in carrying value are recognised in OCI as gains less losses on debt instruments at FVOCI.

The Group applies a “three stage” model for impairment in accordance with IFRS 9, based on changes in credit quality since initial recognition:

1. A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months or until contractual maturity, if shorter (“12 months ECL”).
2. If the Group identifies a significant increase in credit risk (“SICR”) since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that is, up until contractual maturity but considering expected prepayments, if any (“lifetime ECL”). Refer to Note 29 for a description of how the Group determines when a SICR has occurred.
3. If the Group determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a lifetime ECL. Refer to Note 29 for a description of how the Group defines credit-impaired assets and default.

For financial assets that are purchased or originated credit-impaired (“POCI Assets”), the ECL is always measured at a lifetime ECL. Note 29 provides information about inputs, assumptions and estimation techniques used in measuring ECL, including an explanation of how the Group incorporates forward-looking information in the ECL models.

As an exception, for certain financial instruments, such as credit cards, that may include both a loan and an undrawn commitment component, the Group measures expected credit losses over the period that the Group is exposed to credit risk, that is, until the expected credit losses would be mitigated by credit risk management actions, even if that period extends beyond the maximum contractual period. This is because contractual ability to demand repayment and cancel the undrawn commitment does not limit the exposure to credit losses to such contractual notice period. Refer to Note 3 for critical judgements applied by the Group in determining the period for measuring ECL.

Financial assets – write-off.

Uncollectible assets are partly written-off against the related credit loss allowance usually after one year since they become overdue. The amount of uncollectible part of loan is estimated on a loan portfolio basis taking into account defaulted loans recovery statistics. The Group writes-off financial assets that are mostly still subject to enforcement activity, however, there is no reasonable expectation of recovery. If credit-impaired loans are sold to third parties, the Group remeasures the amount of ECL prior to sale taking into consideration the expected sales proceeds so that there are no gains or losses on derecognition upon sale.

Repayments of written-off loans.

Recovery of amounts previously written-off as uncollectible is credited directly to the credit loss allowance line in the consolidated statement of profit or loss and other comprehensive income. Cash flows related to repayments of written-off loans are separately presented within recoveries from written-off loan in the consolidated statement of cash flows.

Financial assets – derecognition.

The Group derecognises financial assets when (a) the assets are redeemed or the rights to cash flows from the assets otherwise expired or (b) the Group has transferred the rights to the cash flows from the financial assets or entered into a qualifying pass-through arrangement while (i) also transferring substantially all risks and rewards of ownership of the assets or (ii) neither transferring nor retaining substantially all risks and rewards of ownership, but not retaining control. Control is retained if the counterparty does not have the practical ability to sell the asset in its entirety to an unrelated third party without needing to impose restrictions on the sale.

Financial assets – modification.

The Group sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Group assesses whether the modification of contractual cash flows is substantial considering, among other, the following factors: any new contractual terms that substantially affect the risk profile of the asset, significant change in interest rate, change in the currency denomination, new collateral or credit enhancement that significantly affects the credit risk associated with the asset, or a significant extension of a loan when the borrower is not in financial difficulties. If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Group derecognises the original financial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be the date of initial recognition for subsequent impairment calculation purposes, including determining whether a SICR has occurred. The Group also assesses whether the new loan or debt instrument meets the SPPI criterion. Any difference between the carrying amount of the original asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Group compares the original and revised expected cash flows to assets whether the risks and rewards of the asset are substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition.

The Group recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate (or credit-adjusted effective interest rate for POCI financial assets) and recognises a modification gain or loss in profit or loss. Usually modifications of stage 3 loans do not result in derecognition since they do not change the expected cash flows substantially and represent the way of collection of past due balances.

Financial liabilities – measurement categories.

Financial liabilities are classified as subsequently measured at AC, except for financial liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities).

Financial liabilities – derecognition.

Financial liabilities are derecognised when they are extinguished (i.e. when the obligation specified in the contract is discharged, cancelled or expires). An exchange between the Group and its original lenders of debt instruments with substantially different terms, as well as substantial modifications of the terms and conditions of existing financial liabilities, are accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The terms are substantially different if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liability. In addition, other qualitative factors, such as the currency that the instrument is denominated in, changes in the type of interest rate, new conversion features attached to the instrument and change in loan covenants are also considered. If an exchange of debt instruments or modification of terms is accounted for as an extinguishment, any costs or fees incurred are recognised as part of the gain or loss on the extinguishment. If the exchange or modification is not accounted for as an extinguishment, any costs or fees incurred adjust the carrying amount of the liability and are amortised over the remaining term of the modified liability. Modifications of liabilities that do not result in extinguishment are accounted for as a change in estimate using a cumulative catch up method, with any gain or loss recognised in profit or loss, unless the economic substance of the difference in carrying values is attributed to a capital transaction with owners.

Cash and cash equivalents.

Cash and cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash and cash equivalents include all interbank placements and reverse sale and repurchase agreements with other banks with original maturities of less than three months. Funds restricted for a period of more than three months on origination are excluded from cash and cash equivalents. Cash and cash equivalents are carried at amortised cost as: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at FVTPL. The payments or receipts presented in the consolidated statement of cash flows represent transfers of cash and cash equivalents by the Group, including amounts charged or credited to current accounts of the Group’s counterparties held with the Group, such as loan interest income or principal collected by charging the customer’s current account or interest payments or disbursement of loans credited to the customer’s current account, which represents cash or cash equivalent from the customer’s perspective.

Brokerage receivables and brokerage payables.

Brokerage receivables represent placements under reverse sale and repurchase agreements made by the Bank with central counterparty to provide customers of the Bank who have brokerage accounts with the Bank with possibility to acquire securities in case those customers have insufficient own funds to acquire those securities. Brokerage payables represent funds attracted under sale and repurchase agreements made by the Bank with central counterparty to provide customers of the Bank who have brokerage accounts with the Bank with the possibility to borrow securities and make a short sale. Brokerage receivables and payables are short-term and accounted at amortised cost.

Mandatory cash balances with the CBRF.

Mandatory cash balances with the CBRF are carried at amortised cost and represent non-interest bearing mandatory reserve deposits which are not available to finance the Group’s day to day operations and hence are not considered as part of cash and cash equivalents for the purposes of the consolidated statement of cash flows.

Due from other banks.

Amounts due from other banks are recorded when the Group advances money to counterparty banks with no intention of trading the resulting unquoted non-derivative receivable due on fixed or determinable dates. Amounts due from other banks are carried at amortised cost as: (i) they are held for collection of contractual cash flows and those cash flows represent SPPI, and (ii) they are not designated at FVTPL. Certain bank deposits are subject to the “bail-in” legislation that permits or requires a national resolving authority to impose losses on holders in particular circumstances. Where the bail-in clauses are included in the contractual terms of the instrument and would apply even if legislation subsequently changes, the SPPI test is not met and such instruments are mandatorily measured at FVTPL. The Group did not identify such balances due from other banks. Where such clauses in the contract merely acknowledge the existence of the legislation and do not create any additional rights or obligation for the Group, the SPPI criterion is met and the respective instruments are carried at AC.

Investments in debt securities.

Based on the business model and the contractual cash flow characteristics, the Group classifies investments in debt securities as carried at AC, FVOCI or FVTPL. Debt securities are carried at AC if they are held for collection of contractual cash flows and where those cash flows represent SPPI, and if they are not voluntarily designated at FVTPL in order to significantly reduce an accounting mismatch. Debt securities are carried at FVOCI if they are held for collection of contractual cash flows and for selling, where those cash flows represent SPPI, and if they are not designated at FVTPL. Interest income from these assets is calculated using the effective interest method and recognised in profit or loss. An impairment allowance estimated using the expected credit loss model is recognised in profit or loss for the year. All other changes in the carrying value are recognised in OCI except for foreign exchange translation gains/(losses) and interest income calculated using the effective interest rate method. When the debt security is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from OCI to profit or loss. Investments in debt securities are carried at FVTPL if they do not meet the criteria for AC or FVOCI. The Group may also irrevocably designate investments in debt securities at FVTPL on initial recognition if applying this option significantly reduces an accounting mismatch between financial assets and liabilities being recognised or measured on different accounting bases.

Loans and advances to customers.

Loans and advances to customers are recorded when the Group advances money to purchase or originate a loan due from a customer. Based on the business model and the cash flow characteristics, the Group classifies loans and advances to customers into one of the following measurement categories:
1) AC: loans that are held for collection of contractual cash flows and those cash flows represent SPPI and loans that are not voluntarily designated at FVTPL;
2) FVTPL: loans that do not meet the criteria for AC or FVOCI are measured at FVTPL (mandatory FVTPL).

Impairment allowances of the loans measured at AC are determined based on the forward-looking ECL model. Note 29 provides information about inputs, assumptions and estimation techniques used in measuring ECL, including an explanation of how the Group incorporates forward-looking information in the ECL models.

Credit related commitments.

The Group issues commitments to provide loans. Commitments to provide loans are initially recognised at their fair value, which is normally evidenced by the amount of fees received. Such loan commitment fees are deferred and included in the carrying value of the loan on initial recognition. At the end of each reporting period, the commitments are measured at the amount of the loss allowance determined based on the expected credit loss model. For loan commitments (where those components can be separated from the loan), a separate provision for ECL is recognised as a liability in the consolidated statement of financial position.# 107 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Performance guarantees. Performance guarantees are contracts that provide compensation if another party fails to perform a contractual obligation. Such contracts transfer non-financial performance risk in addition to credit risk. Performance guarantees are initially recognised at their fair value, which is normally evidenced by the amount of fees received. This amount is amortised on a straight line basis over the life of the contract. At the end of each reporting period, the performance guarantee contracts are measured at the higher of (i) the unamortised balance of the amount at initial recognition and (ii) the best estimate of expenditure required to settle the contract at the end of each reporting period, discounted to present value. Where the Group has the contractual right to revert to its customer for recovering amounts paid to settle the performance guarantee contracts, such amounts will be recognised as an asset upon transfer of the loss compensation to the guarantee’s beneficiary. These fees are recognised within fee and commission income in profit or loss.

Sale and repurchase agreements and lending of securities. Sale and repurchase agreements (“repo agreements”), which effectively provide a lender’s return to the counterparty, are treated as secured financing transactions. Securities sold under such sale and repurchase agreements are not derecognised. The securities are not reclassified in the consolidated statement of financial position unless the transferee has the right by contract or custom to sell or repledge the securities, in which case they are reclassified as repurchase receivables. The corresponding liability is presented within amounts due to other banks or other borrowed funds. Securities purchased under agreements to resell (“reverse repo agreements”), which effectively provide a lender’s return to the Group, are recorded as due from other banks or loans and advances to customers, as appropriate. The difference between the sale and repurchase price, adjusted by interest and dividend income collected by the counterparty, is treated as interest income and accrued over the life of reverse repo agreements using the effective interest method. Securities lent to counterparties for a fixed fee are retained in the consolidated financial statements in their original category in the consolidated statement of financial position unless the counterparty has the right by contract or custom to sell or repledge the securities, in which case they are reclassified and presented separately. Securities borrowed for a fixed fee are not recorded in the consolidated financial statements, unless these are sold to third parties, in which case the purchase and sale are recorded in profit or loss for the year within gains less losses arising from trading securities. The obligation to return the securities is recorded at fair value in other borrowed funds. Based on classification of securities sold under the sale and repurchase agreements, the Group classifies repurchase receivables into one of the following measurement categories: AC, FVOCI, FVTPL.

Guarantee deposits with payment systems. Amounts of guarantee deposits with payment systems are recorded when the Group advances money to payment systems with no intention of trading the resulting unquoted non-derivative receivable. Amounts of guarantee deposits with payment systems are carried at amortised cost.

Tangible fixed assets. Tangible fixed assets are stated at cost less accumulated depreciation and provision for impairment, where required. Costs of minor repairs and day-to-day maintenance are expensed when incurred. Costs of replacing major parts or components of premises and equipment items are capitalised, and the replaced part is retired. At the end of each reporting period management assesses whether there is any indication of impairment of tangible fixed assets. If any such indication exists, management estimates the recoverable amount, which is determined as the higher of an asset’s fair value less costs to sell and its value in use. The carrying amount is reduced to the recoverable amount and the impairment loss is recognised in profit or loss for the year. An impairment loss recognised for an asset in prior years is reversed if there has been a change in the estimates used to determine the asset’s value in use or fair value less costs to sell. Gains and losses on disposals determined by comparing proceeds with carrying amount are recognised in profit or loss for the year (within other operating income or expenses).

108 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Depreciation. Depreciation of each item of tangible fixed assets is calculated using the straight-line method to allocate its cost to its residual value over its estimated useful life as follows:

Useful lives in years
Building 99
Equipment 3 to 10
Vehicles 5 to 7
Leasehold improvements
Others (safes, fireproof cabinets) 20

The residual value of an asset is an estimated amount that the Group would currently obtain from disposal of the asset less the estimated costs of disposal, if the asset was already of the age and in the condition expected at the end of its useful life. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Intangible assets. Intangible assets are stated at cost less accumulated amortization. The Group’s intangible assets other than insurance license have definite useful life and include capitalised acquired computer software and internally developed software. Development costs that are directly associated with identifiable and unique software controlled by the Group are recorded as intangible assets if the inflow of incremental economic benefits exceeding costs is probable. Capitalised costs include staff costs of the software development team and an appropriate portion of relevant overheads. Computer software licenses acquired are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. All other costs associated with computer software, e.g. its maintenance, are expensed when incurred. Capitalised computer software is amortised on a straight line basis over expected useful lives of 1 to 10 years. At each reporting date management assesses whether there is any indication of impairment of intangible assets with an indefinite useful life. If any such indication exists, management estimates the recoverable amount, which is determined as the higher of an asset’s fair value less costs to sell and its value in use. The carrying amount is reduced to the recoverable amount and the impairment loss is recognised in profit or loss. An impairment loss recognised for an asset in prior years is reversed if there has been a change in the estimates used to determine the asset’s value in use or fair value less costs to sell. Intangible assets including goodwill with indefinite useful life are tested annually for impairment.

Accounting for leases by the Group as a lessee. Leases, where the Group is the lessee, are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
* fixed payments (including in-substance fixed payments), less any lease incentives receivable under cancellable and non-cancellable operating leases;
* variable lease payments that are based on an index or a rate and that are initially measured using the index or rate as at the commencement date;
* amounts expected to be payable by the lessee under residual value guarantees;
* the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
* payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

109 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

The lease term includes any non-cancellable and optional extension periods which have been assessed as reasonably certain to be exercised. The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. Right-of-use assets are measured at cost comprising the following:
* the amount of the initial measurement of lease liability,
* any lease payments made at or before the commencement date less any lease incentives received,
* any initial direct costs, and
* dismantling and restoration costs.

As an exception to the above, the Group accounts for short-term leases and leases of low value assets by recognising the lease payments as an operating expense on a straight line basis. Short-term leases are leases with a lease term of 12 months or less, and the lease does not provide for the possibility of repurchase of the asset at the end of the contract.Low value assets are assets with a value of RR 300,000 or less at the date of conclusion of the contract. Right-of-use assets are included in tangible fixed assets, lease liabilities are included in other non-financial liabilities in the consolidated statement of financial position. Depreciation of right-of-use assets are recognised in administrative and other operating expenses in the consolidated statement of profit or loss and other comprehensive income. Finance cost is recognised within other similar expense line of the consolidated statement of profit or loss and other comprehensive income. Repayment of principal of lease liabilities is disclosed within cash flows from financing activities of the consolidated statement of cash flows.

Due to other banks. Amounts due to banks are recorded when money or other assets are advanced to the Group by counterparty banks. Non-derivative liability is carried at amortised cost.

Customer accounts. Customer accounts are non-derivative liabilities to corporate entities and individuals and are carried at amortised cost.

Debt securities in issue. Debt securities are stated at amortised cost. If the Group purchases its own debt securities in issue, they are removed from the consolidated statement of financial position and the difference between the carrying amount of the liability and the consideration paid is included in a separate line of consolidated statement of profit or loss and other comprehensive income.

Subordinated debt. Subordinated debt can only be paid in the event of a liquidation after the claims of other higher priority creditors have been met. Subordinated debt is carried at AC.

Financial derivatives. Financial derivatives represented by forwards and foreign currency swaps are carried at their fair value. Derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative. Changes in the fair value of financial derivatives are recorded in profit or loss within Net gains/(losses) from derivatives revaluation. The Group does not apply hedge accounting.

Income taxes. Income taxes have been provided for in the consolidated financial statements in accordance with Russian legislation and Cyprus legislation enacted or substantively enacted by the end of the reporting period. The income tax charge comprises current tax and deferred tax and is recognised in profit or loss for the year except if it is recognised in other comprehensive income or directly in equity because it relates to transactions that are also recognised, in the same or a different period, in other comprehensive income or directly in equity. Current tax is the amount expected to be paid to or recovered from the taxation authorities in respect of taxable profits or losses for the current and prior periods. Taxable profits or losses are based on estimates if the consolidated financial statements are authorised prior to filing relevant tax returns. Taxes other than on income are recorded within administrative and other operating expenses.

110 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Deferred income tax is provided using the liability method for tax loss carry forwards and temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. In accordance with the initial recognition exemption, deferred taxes are not recorded for temporary differences on initial recognition of an asset or a liability in a transaction other than a business combination if the transaction, when initially recorded, affects neither accounting nor taxable profit. Deferred tax balances are measured at tax rates enacted or substantively enacted at the end of reporting period which are expected to apply to the period when the temporary differences will reverse or the tax loss carry forwards will be utilised. Deferred tax assets and liabilities are netted only within the individual companies of the Group. Deferred tax assets for deductible temporary differences and tax loss carry forwards are recorded only to the extent that it is probable that future taxable profit will be available against which the deductions can be utilised. Deferred income tax is not recognised on post-acquisition retained earnings and other post acquisition movements in reserves of subsidiaries, where the Group controls the subsidiary’s dividend policy and it is probable that the difference will not reverse through dividends or otherwise in the foreseeable future.

Uncertain tax positions. The Group's uncertain tax positions are assessed by management at the end of each reporting period. Liabilities are recorded for income tax positions that are determined by management as more likely than not to result in additional taxes being levied if the positions were to be challenged by the tax authorities. The assessment is based on the interpretation of tax laws that have been enacted or substantively enacted at the end of reporting period and any known court or other rulings on such issues. Liabilities for penalties, interest and taxes other than on income are recognised based on management’s best estimate of the expenditure required to settle the obligations at the end of the reporting period.

Provisions for liabilities and charges. Provisions for liabilities and charges are non-financial liabilities of uncertain timing or amount. They are accrued when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Levies and charges, such as taxes other than income tax or regulatory fees based on information related to a period before the obligation to pay arises, are recognised as liabilities when the obligating event that gives rise to pay a levy occurs, as identified by the legislation that triggers the obligation to pay the levy. If a levy is paid before the obligating event, it is recognised as a prepayment.

Other liabilities. Other liabilities are accrued when the counterparty has performed its obligations under the contract and are carried at amortised cost.

Share capital. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds and debited against share premium.

Share premium. Share premium is the difference between the fair value of the consideration receivable for the issue of shares and the nominal value of the shares. The share premium account can only be resorted to for limited purposes, which do not include the distribution of dividends, and is otherwise subject to the provisions of the Cyprus Companies Law on reduction of share capital.

Treasury shares. Where the Company or its subsidiaries purchase the Company’s equity instruments, the consideration paid, including any directly attributable incremental external costs, net of income taxes, is deducted from equity attributable to the owners of the Company until the equity instruments are reissued, disposed of or cancelled. Where such shares are subsequently disposed of or reissued, any consideration received is included in equity. The value of GDRs transferred out of treasury shares for the purposes of the long-term incentive programme for management of the Group are determined based on the weighted average cost.

Dividends. Dividends are recorded in equity in the period in which they are declared. Any dividends declared after the end of the reporting period and before the consolidated financial statements are authorised for issue, are disclosed in the Note 39. The accounting reports of the Group entities are the basis for profit distribution and other appropriations. The separate financial statements of the Company prepared in accordance with IFRS as adopted by the EU and in accordance with Cyprus Companies Law is the basis of available reserves for distribution.

111 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Dividend distribution to the Company's shareholders is recognised as a liability in the Company's consolidated financial statements in the year in which the dividends are appropriately authorised and are no longer at the discretion of the Company. More specifically, interim dividends are recognised as a liability in the period in which these are authorised by the Board of directors and in the case of final dividends, these are recognised in the period in which these are approved by the Company's shareholders.

Interest income and expense recognition. Interest income and expense calculated using effective interest method are recorded for all debt instruments, other than those at FVTPL, on an accrual basis using the effective interest method. This method defers, as part of interest income or expense, all fees paid or received between the parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts. Fees integral to the effective interest rate include origination fees (e.g. interchange fee on credit card loans) received or paid by the entity relating to the creation or acquisition of a financial asset or issuance of a financial liability. Commitment fees (e.g. annual fee on credit card loans) received by the Group to originate loans at market interest rates are integral to the effective interest rate if it is probable that the Group will enter into a specific lending arrangement and does not expect to sell the resulting loan shortly after origination. The Group does not designate loan commitments as financial liabilities at FVTPL.# 40 Significant Accounting Policies (Continued)

Financial Assets - Credit-Impaired and Interest Income Recognition

For financial assets that are originated or purchased credit-impaired, the effective interest rate is the rate that discounts the expected cash flows (including the initial expected credit losses) to the fair value on initial recognition (normally represented by the purchase price). As a result, the effective interest is credit- adjusted. Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets, except for:

i) financial assets that have become credit-impaired (Stage 3), for which interest revenue is calculated by applying the effective interest rate to their AC (net of the ECL provision); and
ii) financial assets that are purchased or originated credit-impaired, for which the original credit-adjusted effective interest rate is applied to the AC.

Customer Acquisition Expense Recognition

Customer acquisition expenses are represented by the costs incurred by the Group on services related to attraction of the client, mailing of advertising materials, processing of responses etc. Those costs, which can be directly attributed to the acquisition of a particular client, are included in the effective interest rate of the originated financial instruments; the remaining costs are expensed on the basis of the actual services provided.

Other Income and Expense Recognition

All other income is generally recorded on an accrual basis by reference to completion of the specific performance obligation assessed on the basis of measurement of the Group’s progress towards complete satisfaction of that performance obligation. All other expenses are generally recorded on an accrual basis by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.

Other Similar Income

Other similar income represents interest income recorded for debt instruments measured at fair value through profit or loss (“FVTPL”) and is recognised on an accrual basis using nominal interest rate.

Other Similar Expense

Other similar expense represents finance cost related to the discounted lease payments using the incremental borrowing rate.

Fee and Commission Income and Expense

Fee and commission income is recognised over time as the services are rendered, when the customer simultaneously receives and consumes the benefits provided by the Group’s performance. Such income includes SMS fee, part of SME services commission, part of brokerage fee and income from MVNO services which represents fixed monthly payments.

TCS Group Holding PLC
Notes to the Consolidated Financial Statements – 31 December 2020
40 Significant Accounting Policies (Continued)

Variable fees are recognised only to the extent that management determines that it is highly probable that a significant reversal will not occur. Other fee and commission income is recognised at a point in time when the Group satisfies its performance obligation, usually upon execution of the underlying transaction. The amount of fee or commission received or receivable represents the transaction price for the services identified as distinct performance obligations. Such income includes acquiring commission, part of SME services commission, brokerage fee and income from MVNO services, which represents payments for each transaction, fee for selling credit protection, interchange fee, cash withdrawal fee, foreign currency exchange transactions fee, fee for money transfers and other.

All fee and commission expenses are generally recorded on an accrual basis by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided.

Customer Loyalty Program

The group operates loyalty programs where retail clients accumulate points, which entitle them to reimbursement of purchases made with credit and debit cards. A financial liability is recognised for the amount of fair value of points expected to be redeemed until they are actually redeemed or expire with the corresponding entries to interest income calculated using the effective interest rate method or commission expenses depending on whether the points were accumulated by credit card clients or debit card clients respectively.

Insurance Contracts

Insurance contracts are those contracts that transfer significant insurance risk. Insurance risk exists when the Group has uncertainty in respect of at least one of the following matters at inception of the contract: occurrence of insurance event, date of occurrence of the insurance event, and the claim value in respect of the occurred insurance event. Such contracts may also transfer financial risk.

Non-life Insurance (Short-term Insurance)

The below items from the consolidated statement of financial position of the Group are accounted within Other financial assets and Other financial liabilities lines, the below items from the consolidated statement of profit or loss and other comprehensive income of these consolidated financial statements are accounted within Income from insurance operations and Insurance claims incurred lines.

• Premiums Written: Premiums (hereafter – “premiums” or “insurance premiums”) under insurance contracts are recorded as written upon inception of a contract and are earned on a pro-rata basis over the term of the related contract coverage. Reduction of premium written in subsequent periods (under amendments to the signed original contacts, for example) is accounted by debiting of premiums written in current period.
• Claims: Claims are charged to the consolidated statement of profit or loss and other comprehensive income as compensation is paid to policyholders (beneficiaries) or third parties.
• Claims Handling Expenses: Claims handling expenses are recognised in profit or loss for the period as incurred and include direct expenses related to negotiations and subsequent claims handling, as well as indirect expenses, including expenses of claims handling department and administrative expenses directly related to activities of this department.
• Reinsurance: The Group assumes and cedes reinsurance in the normal course of business. Ceded reinsurance contracts do not relieve the Group from its obligations to the policyholders under insurance contract. Amounts due from reinsurers are measured consistently with the amounts associated with the direct insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance assets arising from outward reinsurance contracts include reinsurers share in paid claims, including claims handling expenses. Liabilities under outward reinsurance operations are obligations of the Group for payment of premiums to reinsurers. Reinsurance assets include premiums ceded to the Group under inward reinsurance contracts. The Group's liabilities under inward reinsurance contracts are obligations to compensate the Group's share in paid claims, including claims handling expenses to reinsurers.

TCS Group Holding PLC
Notes to the Consolidated Financial Statements – 31 December 2020
40 Significant Accounting Policies (Continued)

The Group assesses its reinsurance assets for impairment on a regular basis. If there is objective evidence that the reinsurance asset is impaired, the Group reduces the carrying amount of the reinsurance asset to its recoverable amount and recognises that impairment loss in the consolidated statement of profit or loss and other comprehensive income. The Group gathers the evidence that a reinsurance asset is impaired using the same process adopted for financial assets carried at amortised cost. The impairment loss is also calculated following the same method used for the financial assets carried at amortised cost.

• Subrogation Income: The Group has a right to pursue third parties responsible for loss for payment of some or all costs related to the claims settlement process of the Group (subrogation). Reimbursements are recognised as income only if the Group is confident in receipt of these amounts from these third parties. Under inward reinsurance contracts, amounts of reimbursement due to the Group as a result of settlement of reinsurer's subrogation claims are treated as the Group's income as at the date of acceptance of the invoice received from the reinsurer and including calculation of the Group's share in the subrogation claim.

Deferred Acquisition Costs

Deferred acquisition costs (“DAC”) are calculated (for non-life insurance contracts) separately for each insurance product. Acquisition costs include remuneration to agents for concluding agreements with corporate clients and individuals and brokerage fees for underwriting of assumed reinsurance agreements. They vary with and fully depend on the premium earned under acquired or renewed insurance policies. These acquisition costs are deferred and amortised over the period in which the related written premiums are earned. They are reviewed by line of business at the time of the policy issue and at the end of each accounting period to ensure they are recoverable based on future estimates. For the insurance contracts with duration of less than one month and with automatic prolongation condition amortisation of one-off acquisition costs occurs over the period determined based on statistical assessment of duration of the insurance contract taking into account all of the expected future prolongations.

Insurance Provisions

• Provision for Unearned Premiums: Provision for unearned premiums (“UEPR”) represents the proportion of premiums written that relate to the unexpired term of policies in force as at the reporting date, calculated on a time apportionment basis. UEPR is recognised within liabilities on a gross basis.
• Loss Provisions: Loss provisions represent the accumulation of estimates for ultimate losses and include outstanding claims provision (“OCP”) and provision for losses incurred but not yet reported (“IBNR”).# TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Loss provisions are recognised within liabilities on a gross basis. Estimates of claims handling expenses are included in both OCP and IBNR. OCP is provided in respect of claims reported, but not settled as at the reporting date. The estimation is made on the basis of information received by the Group during settlement of the insured event, including information received after the reporting date. IBNR is determined by the Group by line of business using actuarial methods, and includes assumptions based on prior years’ claims and claims handling experience. IBNR is calculated for each occurrence period as the difference between the projected maximum amount of future payments resulting from the events that occurred during the period and the amount of future payments resulting from the event already reported but not settled at the reporting date within the same period. The methods of determining such estimates and establishing the resulting provisions are continually reviewed and updated. Resulting adjustments are reflected in the consolidated statement of profit or loss and other comprehensive income as they arise. Loss provisions are estimated on an undiscounted basis due to relatively quick pattern of claims notification and payment.

• Unexpired risk provision. Unexpired risk provision (“URP”) is recorded when unearned premiums are insufficient to meet claims and expenses, which may be incurred after the end of the financial year. To estimate the unexpired risk provision the Group uses historical experience and forward looking assumptions of ultimate loss ratios (including claims handling expenses) and the level of in- force portfolio maintenance expenses. The expected claims are calculated having regard to events that have occurred prior to the reporting date. For the purposes of final presentation of consolidated financial statements unexpired risk provision is written off against deferred acquisition costs.

114 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

• Liability adequacy testing. As at each reporting date the adequacy of the insurance reserves is tested. Testing of insurance reserves for non-life insurance is performed to ensure adequacy of contract liabilities. In performing these tests, current estimates of future contractual cash flows, claims handling and administration expenses are used. As a result of liability adequacy testing for non-life insurance, the Group sets up its URP.

Foreign currency translation and operations. The functional currency of the Company and each of the Group’s consolidated entities is the Russian Rouble (“RR”), which is the currency of the primary economic environment in which each entity operates. Monetary assets and liabilities are translated into each entity’s functional currency at the official exchange rate of the CBRF at the end of the respective reporting period. Foreign exchange gains and losses resulting from the translation of monetary assets and liabilities into each entity’s functional currency at year-end official exchange rates of the CBRF are recognised in profit or loss for the year as Net (losses)/gains from foreign exchange translation. Foreign exchange gains and losses resulting from the settlement of transactions with foreign currencies are recognised in profit or loss for the year as net gains/(losses) from operations with foreign currencies (except for clients’ foreign currency exchange transactions fee, which is recognised in profit or loss as fee and commission income). Translation at year-end rates does not apply to non-monetary items that are measured at historical cost.

At 31 December 2020 the rate of exchange used for translating foreign currency balances was USD 1 = RR 73.8757 (31 December 2019: USD 1 = RR 61.9057), and the average rate of exchange was USD 1 = RR 72.1464 (2019: USD 1 = RR 64.7362).

Offsetting. Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position only when there is a legally enforceable right to offset the recognised amounts, and there is an intention to either settle on a net basis, or to realise the asset and settle the liability simultaneously. Such a right of set off (a) must not be contingent on a future event and (b) must be legally enforceable in all of the following circumstances: (i) in the normal course of business, (ii) the event of default and (iii) the event of insolvency or bankruptcy.

Earnings per share. Earnings per share are determined by dividing the profit or loss attributable to owners of the Company by the weighted average number of participating shares outstanding during the reporting year, excluding treasury shares. For the purpose of diluted earnings per share calculation the Group considers dilutive effects of shares granted under employee share option plans.

Staff costs and related contributions. Wages, salaries, contributions to the Russian Federation state pension and social insurance funds, paid annual leave and sick leave, bonuses, and non-monetary benefits are accrued in the year in which the associated services are rendered by the employees of the Group. The Group has no legal or constructive obligation to make pension or similar benefit payments beyond the payments to the statutory defined contribution scheme.

Segment reporting. Segments are reported in a manner consistent with the internal reporting provided to the Group’s chief operating decision maker. Segments whose revenue, result or assets are ten percent or more of all the segments are reported separately.

Equity-settled share-based payment. The expense is recognized over the vesting period and is measured at the fair value of the award determined at the grant date, which is amortized over the service (vesting) period. The fair value of the equity award is estimated only once at the grant date and is trued up to the estimated number of instruments that are expected to vest. Dividends declared during the vesting period accrue and are paid to the employee together with the sale proceeds of the vested shares upon a liquidity event. Expected dividends (including those expected during the vesting period) are therefore included in the determination of fair value of the share-based payment.

115 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

40 Significant Accounting Policies (Continued)

Cash-settled share-based program. The expense is recognized gradually over the vesting period and is measured at the fair value of the liability at each end of the reporting period. The fair value of the liability reflects all vesting conditions, except for the requirement of the employee to stay in service which is reflected through the amortization schedule. The liability is measured, initially and at the end of each reporting period until settled, at fair value, taking into account the terms and conditions on which the instruments were granted and the extent to which the employees have rendered service to date.

Amendments of the consolidated financial statements after issue. The Board of directors of the Company has the power to amend the consolidated financial statements after issue.

Changes in presentation. In 2020 because of significant growth in the brokerage operations and the related balances and volumes of transactions, the Group made a detailed review of the relevant accounting policies to achieve more relevant and reliable presentation. As a result of such review and because of significantly increased balances the Group reclassified brokerage receivables and brokerage payables from cash and cash equivalents and due to banks, respectively, into separate line items in the Consolidated statement of financial position. Also the Group identifed that certain portion of brokerage operations fee and commission income related to margin trading of Group’s clients has more characteristics of being interest income rather than fee and commission income. Hence the Group made relevant reclassification from fee and commission income into interest income in the Consolidated statement of profit or loss and other comprehensive income. Similar reclassifications were made in the Consolidated statement of cash flows. Management considers that the above reclassifications will result in a more reliable and relevant presentation of the financial information which is more consistent with the market practice of many other banks.

In September 2020 as a result of a detailed review of the marketing agreements with the payment systems the Group changed its accounting policy in relation to income received under these agreements by reclassifying it from Other operating income to reduce the Payment System fees accounted for in Interest income and Fee and commission expenses. Part of the net payment system fees which relates to the borrowers’ transactions is included in the effective interest income of the loans. Another part which relates to the customer’s transactions was reclassified to Fee and commission expenses and presented on a net basis within the payment systems. Management considers that this reclassification results in a more reliable and relevant presentation of the substance of these agreements since such income from payment systems primarily represents volume rebates, hence it could be offset against related expenses.

In December 2020 given the increase in the related amounts the Group refined its accounting policy in relation to recoveries received in excess of gross carrying amount of purchased loans and reclassified them from Other operating income line to Credit loss allowance for loans and advances to customers and credit related commitments line of consolidated statement of profit or loss and other comprehensive income.## 41 TCS Group Holding PLC Notes to the Consolidated Financial Statements – 31 December 2020

Significant Accounting Policies (Continued)

The effect of changes described above on the consolidated statement of financial position for the year ended 31 December 2019 is as follows:

In millions of RR	As originally presented	Reclassification	As reclassified
Cash and cash equivalents	57,796	(2,232)	(640)
Due to banks	55,564	23	663
Brokerage receivables	2,799	-	2,799
Brokerage payables	1,207	-	1,207

The effect of changes described above on the consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2019 is as follows:

In millions of RR	As originally presented	Reclassification	As reclassified
Interest income calculated using the effective interest rate method	109,972	1,157	111,129
Credit loss allowance for loans and advances to customers and credit related commitments	(27,244)	36,042	(26,551)
Fee and commission income	17,448	(184)	17,264
Fee and commission expense	4,713	693	5,406
Other operating income	2,325	(3,991)	(1,666)

The effect of changes described above on the consolidated statement of cash flows for the year ended 31 December 2019 is as follows:

In millions of RR	As originally presented	Reclassification	As reclassified
Interest income received calculated using the effective interest rate method	106,975	(17,492)	(2,232)
Fees and commissions received	35,986	-	(2,799)
Fees and commissions paid	23,994	4,024	(640)
Recoveries from the purchased loans received	879	-	879
Other operating income received	1,499	693	2,192
Net increase in cash and cash equivalents	(2,887)	1,137	(1,750)
Net increase in brokerage receivables	21,762	(2,799)	18,963
Net decrease in due to banks	(2,685)	1,207	(1,478)
Net increase in brokerage payables	1,207	-	1,207

41 Adoption of New or Revised Standards and Interpretations

The following amended standards became effective from 1 January 2020, but did not have any material impact on the Group:

• Amendments to the Conceptual Framework for Financial Reporting (issued on 29 March 2018 and effective for annual periods beginning on or after 1 January 2020).
• Definition of a business – Amendments to IFRS 3 (issued on 22 October 2018 and effective for acquisitions from the beginning of annual reporting period that starts on or after 1 January 2020).
• Definition of material - Amendments to IAS 1 and IAS 8 (issued on 31 October 2018 and effective for annual periods beginning on or after 1 January 2020).
• Interest rate benchmark reform – Amendments to IFRS 9, IAS 39 and IFRS 7 (issued on 26 September 2019 and effective for annual periods beginning on or after 1 January 2020).

42 New Accounting Pronouncements

Certain new amendments have been issued that are mandatory for the annual periods beginning on or after 1 January 2021, which the Group has not early adopted:

42 New Accounting Pronouncements (Continued)

• IFRS 17 “Insurance Contracts” (issued on 18 May 2017 and effective for annual periods beginning on or after 1 January 2023)*. IFRS 17 replaces IFRS 4, which has given companies dispensation to carry on accounting for insurance contracts using existing practices. As a consequence, it was difficult for investors to compare and contrast the financial performance of otherwise similar insurance companies. IFRS 17 is a single principle-based standard to account for all types of insurance contracts, including reinsurance contracts that an insurer holds. The standard requires recognition and measurement of groups of insurance contracts at: (i) a risk-adjusted present value of the future cash flows (the fulfilment cash flows) that incorporates all of the available information about the fulfilment cash flows in a way that is consistent with observable market information; plus (if this value is a liability) or minus (if this value is an asset) (ii) an amount representing the unearned profit in the group of contracts (the contractual service margin). Insurers will be recognising the profit from a group of insurance contracts over the period they provide insurance coverage, and as they are released from risk. If a group of contracts is or becomes loss-making, an entity will be recognising the loss immediately. The Group is currently assessing the impact of IFRS 17 on the insurance contracts issued by the Insurance Company as well as the impact for credit cards and similar loan products which may include insurance component.
• Amendments to IFRS 17 and an amendment to IFRS 4 (issued on 25 June 2020 and effective for annual periods beginning on or after 1 January 2023)*. The amendments relate to eight areas of IFRS 17, and they are not intended to change the fundamental principles of the standard. The following amendments to IFRS 17 were made: effective date, expected recovery of insurance acquisition cash flows, contractual service margin attributable to investment services, reinsurance contracts held – recovery of losses and other amendments.

The following other new pronouncements are not expected to have any material impact on the Group when adopted:

• (a) Sale or contribution of assets between an Investor and its associate or joint venture - Amendments to IFRS 10 and IAS 28 (issued on 11 September 2014 and effective for annual periods beginning on or after a date to be determined by the IASB)*.
• (b) Classification of liabilities as current or non-current – Amendments to IAS 1 (issued on 23 January 2020 and effective for annual periods beginning on or after 1 January 2022)*.
• (c) Classification of liabilities as current or non-current, deferral of effective date – Amendments to IAS 1 (issued on 15 July 2020 and effective for annual periods beginning on or after 1 January 2023)*.
• (d) Proceeds before intended use, Onerous contracts – cost of fulfilling a contract, Reference to the Conceptual Framework – narrow scope amendments to IAS 16, IAS 37 and IFRS 3, and Annual Improvements to IFRSs 2018-2020 – amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 (issued on 14 May 2020 and effective for annual periods beginning on or after 1 January 2022)*.
• (e) Interest rate benchmark (IBOR) reform – phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (issued on 27 August 2020 and effective for annual periods beginning on or after 1 January 2021).
• (f) Covid-19-Related Rent Concessions – Amendments to IFRS 16 (issued on 28 May 2020 and effective for annual periods beginning on or after 1 June 2020).

* Denotes standards, interpretations and amendments which have not yet been endorsed by the European Union.