Tinkoff Bank bank

Тинькофф Банк
Tinkoff Bank
Full name
JSC "Tinkoff Bank"


on 01.02.2019
Banki.ru reference

The bank was registered as Khimmashbank in January 1994. In 2005, the bank joined the national deposit insurance system, and in 2006 the bank was bought by famous entrepreneur Oleg Tinkoff* and was renamed Tinkoff Credit Systems Bank (CJSC), and shifted its business focus to households.

In 2007, the lending institution’s shares were acquired by international investment bank Goldman Sachs, and in 2008 Swedish investment fund Vostok Nafta joined. In the middle of 2012 international direct investment fund Baring Vostok Capital Partners invested USD 50 mln in TCS Bank as part of an additional share issue. In October 2012, investment fund Horizon Capital, which specializes in mid-cap companies with high potential (headquartered in Kyiv), bought an equity stake in the financial institution. Tinkoff Bank’s market value soared by nearly 7x within less than five years.

In October 2013, the bank went public on the London Stock Exchange, netting roughly USD 1.09 bln. In addition to a big stake, investors were offered the bank’s additional shares. Oleg Tinkoff’s equity stake in Tinkoff Bank’s increased capital (60.6% prior to the IPO) dropped to 50.9%.

In August 2014, an entry was made in the United State Register of Legal Entities about the establishment of limited liability company Phoenix. Phoenix is the bank’s subsidiary, with the bank holding a 51% interest. This company was planned to be providing bad debt recovery services to the bank.

In June 2015, the Saint Petersburg Directorate of the Federal Anti-Trust Service filed an anti-trust case against Tinkoff Bank, and the case was later remitted to the Service’s central office. To remind, the bank’s actions caused public disorder in the summer of 2015 because the bank unilaterally changed terms of SmartVklad deposits. Individuals complained about the bank’s decision to unify replenishment terms for deposit accounts that were opened between December 24, 2014 and April 30, 2015, and deposit accounts whose rate was raised due to new market conditions. So, to any amounts to be put on these deposit accounts the bank decided to apply the single interest rate regardless of deposit duration (13% for ruble and 4% for foreign currency accounts). By comparison, in the past the interest rate on additional contributions to SmartVklad deposit accounts was accrued on a fixed basis, ranging from 16% to 18% depending on when deposit account agreements are signed. On October 26, 2015 the Federal Anti-Trust Service recognized Tinkoff Bank’s actions as unfair competition because the bank drew retail funds into term replenishable deposit accounts with subsequent deterioration of their consumption properties. As Tinkoff Bank failed to rectify the violation voluntarily, the FAS commission issued the relevant injunction to the bank. The lending institution was demanded to cancel the decision reducing the interest rate accruable since July 2015 on amounts of additional contributions to replenishable term deposit accounts which were opened from December 24, 2014 through April 30, 2015, inclusive, and under deposit account agreements, under which the interest rate was increased from December 17, 2014 through April 30, 2015. FAS also obliged the bank to pay customers a shortfall in their income within 90 days since the date on which the injunction was received.

The Federal Anti-Trust Service fined Tinkoff Bank and its official by Rub 300,000 and Rub 12,000, respectively, for unfair competition in the deposit market (the administrative offence provided for in Article 14.33.1 of the Russian Code of Administrative Offences). After this Tinkoff Bank challenged the Service’s ruling and injunction in court, demanding to declare the anti-trust body’s ruling and injunction invalid. However, on June 1, 2015 the court issued a ruling in favor of the anti-trust authority. As a result, Tinkoff Bank cancelled its decision reducing the interest rate on deposit accounts which was taken unilaterally. The interest rate was cut as of July 1, 2015. This concerned any amounts added to high-rate deposit accounts which were opened since late December 2014 through April 2015 when banks raised sharply deposit rates after the Bank of Russia lifted its key rate to 17%.

Oleg Tinkoff currently controls 47.31% of the bank’s shares. Also, 50.06% constitute free float on the London Stock Exchange (as GDRs). Investment fund Vostok Emerging Finance (the fund is a listed company) holds a 1.64% interest, and Baring Vostok’s equity stake is 0.99%.

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