Credit card firm TCS falls further

Michael Bow
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TCS Group, the Russian credit card provider, suffered more misery in trading yesterday falling more than five per cent after revealing a 63 per cent dive in pre-tax profits.

The business, which listed in London last year, said first quarter profit before tax was 481.3m rubles, down from 1.3bn rubles in the same quarter last year.

Shares fell 5.2 per cent to just $6.16 a share yesterday – trading nearly 65 per cent below their issue price.

The group said it had raised the cost of risk from 16.5 per cent to 20.5 per cent, reflecting the increase in provisions to cover lending risks.

It said this would remain in the 20 per cent to 22 per cent range for the rest of the year, putting its net profit forecast of 7bn rubles under review.