MOSCOW, Aug 29 (Reuters) - Russian consumer lender TCS Group beat analysts’ forecasts by reporting a 67 percent year-on-year rise in second-quarter net profit to 4.2 billion roubles ($71.75 million) on Tuesday.
Analysts had expected TCS to post net profit of 3.6 billion roubles.
The stronger performance prompted TCS to upgrade its 2017 net profit forecast to 17 billion roubles from 14 billion.
TCS said on Tuesday its board of directors had approved a dividend of $0.20 per share for the second quarter, representing a total dividend payment of $36.5 million, up from $31 million in the first quarter.
Oliver Hughes, CEO of Tinkoff Bank, TCS Group’s main business, said the group’s results in the first half were underpinned by its core credit card business, which grew further, and by “the sound performance of our new business lines.”
Portfolio quality improved in quarterly terms, with the non-performing loan ratio sliding to 9.4 percent in the second quarter from 9.6 percent in the first three months of 2017, TCS said.
“The group’s loan loss provision coverage remained stable at 1.4x non-performing loans,” TCS said.
The banking group’s net loan book expanded by 18 percent in to 121.2 billion roubles in the second quarter, up from 102.9 billion roubles in the same period of 2016.
TCS also said its net interest income grew in the second quarter to 11.2 billion roubles, up 37 percent compared with a year ago. ($1 = 58.5375 roubles) (Reporting by Andrey Ostroukh and Oksana Kobzeva; Editing by Adrian Croft)