TCS Group Acquires 7.5% Stake in St Petersburg Exchange

NP RTS agreed with the lender to sell them a maximum of 7.5% of the St Petersburg Exchange's share capital.

TCS Group, the operator of Russia’s largest online bank, Tinkoff, has entered into an agreement to buy a 7.5% stake in St Petersburg Exchange, which is the country’s major exchange for trading foreign stocks. According to the announcement, the exchange already had business deals with TCS Group through the Tinkoff-own Investments platform.

With the acquisition, the operator expects to expand its financial instruments’ portfolio ahead of an initial public offering (IPO), which is still in the plans and could materialise in 2022, Reuters said. Furthermore, both TCS and NP RTS, the major bourse’s shareholder, signed a memorandum of cooperation at the St Petersburg International Economic Forum.

The memorandum seeks that RTS sells the lender up to 7.5% of St Petersburg Exchange’s share capital.

Three weeks ago, TCS Group reported a record net profit in Q1 of 2021. Figures highlighted that it witnessed a surge in net profit of 57% year-on-year to RUB 14.2 billion over such a period. Also, the group’s revenue skyrocketed 21% to RUB 56.8 million between January and March 2021, bolstered by non-credit businesses.

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In the same line, its number of customers grew to 14.8 million in the first quarter of the year from the 10.8 million reached last year. Moreover, the share of non-performing loans plummeted to 9.7% at the end of March 2021 from 10.3%, compared to the end of 2020.

TCS Group Expectations for the Rest of the Year

TCS Group’s forecasts are on the line to keep growing at the end of the year, stating that its full-year net profit could yield RUB 55 billion, while non-credit businesses could account for over 40% of total revenues.

Founded in 2006, TCS Group Holding is a UK-listed provider of online retail financial services, operator of several companies such as Tinkoff Bank, Tinkoff Mobile, Tinkoff Insurance, Tinkoff Capital, Tinkoff Software DC and Tinkoff Education.

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