T-Technologies raises outlook after 41% growth in adjusted quarterly profit

T-Technologies raised its full-year earnings and dividend-growth outlook on November 10 after reporting a 41% year-on-year increase in third-quarter operating net profit. The Russian financial-services and technology group put that measure at 63.6 billion rubles and said its board had recommended a dividend of 4.8 rubles per share.

The profit headline needs its qualifier. The company's operating measure is attributable to shareholders and excludes effects from its investment in Yandex. It is different from both consolidated net profit and reported net profit attributable to shareholders, which the same release discloses separately.

Three profit figures describe different results

The company's original results release reports consolidated third-quarter net profit of 63.4 billion rubles, up 58% from a year earlier. Profit attributable to shareholders was 62.1 billion rubles, up 55%. Operating net profit was 63.6 billion, compared with 45.2 billion a year earlier and 52.1 billion in the second quarter.

The distinction becomes more visible over nine months. T-Technologies reported consolidated net profit of 137.9 billion rubles, shareholder-attributable profit of 145.2 billion and operating net profit of 162.2 billion. Their reported annual growth rates were 15%, 25% and 35%, respectively. Those are different accounting and adjustment bases, not interchangeable descriptions of one profit total.

For readers comparing performance across periods, the consistent comparison is within the same row of the accounts. Taking an adjusted current-period number and comparing it with an unadjusted previous-period result would mix definitions and distort the growth calculation.

Net revenue outpaced operating costs

The release puts third-quarter net revenue at 234.1 billion rubles, up 27%, while total revenue reached 418.8 billion, up 7%. The two revenue measures should also remain distinct. Within net revenue, net interest income rose 30% to 166.0 billion rubles, net fee income increased 19% to 53.5 billion, and net insurance revenue reached 14.6 billion.

Operating expenses increased 19% to 109.5 billion rubles. On the company's figures, net revenue therefore grew faster than operating costs. The group said it continued spending on technology and product development; the results do not describe a business expanding through an absolute reduction in those total expenses.

Its reported net interest margin widened to 12.0% from 10.5% a year earlier. Meanwhile, the cost of risk declined to 4.9% from 6.1%, although it was above the second quarter's 4.7%. The annual improvement and quarterly increase can both be true because they use different comparison periods.

A higher forecast is still a forecast

Management now expects full-year operating net profit and aggregate dividends per share to grow by more than 25%, with return on equity around 30%. These are the group's expectations for 2026, not completed annual results or a guarantee of shareholder payments.

For the third quarter, the adjusted return-on-equity measure was 32.3%; for the first nine months it was 29.1%. The company applies the shareholder and Yandex-investment adjustment to these measures as well. A single quarter above the full-year target does not by itself establish the annual outcome.

The release also says more than half of net revenue after provisions came from activities outside retail financing. That denominator matters: the statement concerns revenue after provisions, not a claim that most of the group's assets or all its profit came from non-lending businesses.

The dividend still requires approval

The board's recommendation is 4.8 rubles per share for the third-quarter results. The release says shareholders could receive the payment in December if it is approved. It should therefore be presented as a recommended distribution, not money already paid or an unconditional entitlement.

The group also said its share-buyback program, covering up to 5% of capital, was continuing. That ceiling describes the program's permitted scale, not the quantity already repurchased. The company links repurchases to a reserve for its long-term management incentive program.

The results show faster operating earnings growth alongside higher income and a lower annual cost-of-risk measure. For shareholders, the next distinction remains practical: reported performance, management's forecast and an approved distribution are three separate stages.