International Public Joint-Stock Company T-Technologies (TCS) Q2 2024 earnings summary

Executive summary

• Total revenues rose 72% year-over-year to RUB 193.4 bn in 2Q'24, with net profit up 15% to RUB 23.5 bn.

• Customer base expanded 24% year-over-year to 44 mn, with active customers surpassing 30 mn.

• ROE reached 32.7% in 2Q'24, up from 31.7% in 1Q'24.

• Strategic integration of Rosbank completed, boosting capital and enabling accelerated growth.

Financial highlights

• Net interest income increased 45% year-over-year to RUB 77.7 bn; fee and commission income up 39% to RUB 42.2 bn.

• Total assets grew 65% year-over-year to RUB 2,884 bn; net loan book up 52% to RUB 1,190 bn.

• Customer funds rose 75% year-over-year to RUB 2,292 bn; total equity up 24% to RUB 296 bn.

• Operating expenses increased 32% year-over-year to RUB 59.8 bn, reflecting investments in IT and talent.

• Cost of risk increased to 7.5% in 2Q'24 from 5.7% in 2Q'23.

Outlook and guidance

• Management maintains guidance for net profit growth of more than 30% for 2024 despite external pressures.

• New dividend policy targets up to 30% of net profit to be paid out as dividends, with quarterly declarations.