(Adds detail from conference call, share reaction)
MOSCOW Nov 30 Russian consumer lender TCS Group
expects to increase its profit next year as it lends
more and its funding costs fall, it said on Wednesday, after
posting record profit for the third quarter in a row.
TCS made net profit of 2.9 billion roubles ($44.6 million)
in the third three months of 2016, beating analysts' forecasts
and reiterating that it was on track for profit of 9-10 billion
roubles this year.
In 2017 it expects to make 13-14 billion roubles of profit,
while return on equity is seen at 35-40 percent, broadly in line
with this year.
Oliver Hughes, chief executive of Tinkoff Bank, one of TCS'
businesses, said profit growth next year would be mainly driven
by the group's lucrative credit card business.
Other business areas, such as servicing small and medium
enterprises, should break even next year after investments made
in previous years, while insurance products should bring in more
money, Hughes added on a conference call.
TCS also said on Wednesday it had approved a second interim
dividend for 2016 of 21 cents per share, following an
announcement in May of a first interim dividend of 17 cents per
The lender's London-listed shares rose in early trade before
falling back to trade 0.8 percent lower by 0903 GMT.
Analysts had forecast TCS would make third-quarter profit of
2.7 billion roubles, versus 0.7 billion roubles in the third
quarter of 2015.
($1 = 65.0180 roubles)
(Reporting by Alexander Winning; Editing by Andrew Osborn and