REG - TBC Bank Group PLC - 3Q and 9M 2024 Results Report
06/11/2024 07:00
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RNS Number : 0438L TBC Bank Group PLC 06 November 2024
TBC BANK GROUP PLC ("TBC Bank")
3Q AND 9M 2024 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
Forward-looking statements
This document contains forward-looking statements; such forward-looking
statements contain known and unknown risks, uncertainties and other important
factors, which may cause the actual results, performance or achievements of
TBC Bank Group PLC ("the Bank" or "the Group") to be materially different from
any future results, performance or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are based on numerous
assumptions regarding the Bank's present and future business strategies and
the environment in which the Bank will operate in the future. Important
factors that, in the view of the Bank, could cause actual results to differ
materially from those discussed in the forward-looking statements include,
among others: the achievement of anticipated levels of profitability; growth,
cost and recent acquisitions; the impact of competitive pricing; the ability
to obtain the necessary regulatory approvals and licenses; the impact of
developments in the Georgian and Uzbek economies; the impact of Russia-Ukraine
war; the political and legal environment; financial risk management; and the
impact of general business and global economic conditions.
None of the future projections, expectations, estimates or prospects in this
document should be taken as forecasts or promises, nor should they be taken as
implying any indication, assurance or guarantee that the assumptions on which
such future projections, expectations, estimates or prospects are based are
accurate or exhaustive or, in the case of the assumptions, entirely covered in
the document. These forward-looking statements speak only as of the date they
are made, and, subject to compliance with applicable law and regulations, the
Bank expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in the
document to reflect actual results, changes in assumptions or changes in
factors affecting those statements.
Certain financial information contained in this management report, which is
prepared on the basis of the Group's accounting policies applied consistently
from year to year, has been extracted from the Group's unaudited management
accounts and financial statements. The areas in which the management accounts
might differ from the International Financial Reporting Standards and/or
generally accepted U.S. accounting principles could be significant; you should
consult your own professional advisors and/or conduct your own due diligence
for a complete and detailed understanding of such differences and any
implications they might have on the relevant financial information contained
in this presentation. Some numerical figures included in this report have been
subjected to rounding adjustments. Accordingly, the numerical figures shown as
totals in certain tables might not be an arithmetic aggregation of the figures
that preceded them.
3Q and 9M 2024 consolidated financial results conference call details
TBC Bank Group PLC ("TBC PLC") has published its unaudited consolidated
financial results for the 3Q and 9M 2024 on Wednesday, 6 November 2024 at 7.00
AM GMT. The management team will host a conference call at 2.00 PM GMT.
To participate in the conference call live video webinar, please register
using the following link:
https://www.netroadshow.com/events/login?show=64f95a9a&confId=72527
(https://www.netroadshow.com/events/login?show=64f95a9a&confId=72527)
You will receive access details via email.
Contacts
Andrew Keeley Anna Romelashvili Investor Relations Department
Director of Investor Relations
Head of Investor Relations
E-mail: AKeeley@tbcbank.com.ge
E-mail: IR@tbcbank.com.ge
E-mail: ARomelashvili@tbcbank.com.ge
Tel: +44 (0) 7791 569834
Tel: +(995 32) 227 27 27
Tel: +(995) 577 205 290
Web: www.tbcbankgroup.com (https://www.tbcbankgroup.com/)
Web: www.tbcbankgroup.com (https://www.tbcbankgroup.com/)
Web: www.tbcbankgroup.com (https://www.tbcbankgroup.com/)
Table of contents
3Q and 9M 2024 unaudited consolidated financial results announcement
Interim management report
Financial highlights (#_Toc180581280)
Operational highlights (#_Toc180581281)
Letter from the Chief Executive Officer (#_Toc180581282)
Economic overview (#_Toc180581283)
Progress towards our mid-term strategy targets (#_Toc180581284)
Unaudited consolidated financial results overview for 3Q 2024
(#_Toc180581285)
Unaudited consolidated financial results overview for 9M 2024
(#_Toc180581286)
Additional information (#_Toc180581287)
1) (#_Toc180581288) (#_Toc180581288) (#_Toc180581288)
Financial disclosures by business lines (#_Toc180581288)
2) (#_Toc180581289) (#_Toc180581289) (#_Toc180581289)
Glossary (#_Toc180581289)
3) (#_Toc180581290) (#_Toc180581290) (#_Toc180581290) Ratio
definitions and exchange rates (#_Toc180581290)
3Q and 9M 2024 unaudited consolidated financial results
3Q 2024 profit of GEL 347 million, up by 16% YoY, with ROE at 26.6%.
9M 2024 profit of GEL 973 million, up by 15% YoY, with ROE at 26.2%.
European Union Market Abuse Regulation EU 596/2014 requires TBC Bank Group PLC
to disclose that this announcement contains Inside Information, as defined in
that Regulation.
Financial highlights
Income statement
In thousands of GEL 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
Net interest income 492,561 458,111 427,934 15.1% 7.5% 1,393,516 1,194,063 16.7%
Net fee and commission income 144,797 123,398 104,152 39.0% 17.3% 372,498 302,226 23.3%
Other non-interest income 116,296 96,922 83,133 39.9% 20.0% 284,051 237,935 19.4%
Total operating income 753,654 678,431 615,219 22.5% 11.1% 2,050,065 1,734,224 18.2%
Total credit loss allowance (55,275) (31,565) (46,159) 19.7% 75.1% (131,971) (133,261) -1.0%
Operating expenses (280,208) (256,577) (218,087) 28.5% 9.2% (766,456) (604,427) 26.8%
Profit before tax 418,171 390,289 350,973 19.1% 7.1% 1,151,638 996,536 15.6%
Income tax expense (70,908) (60,991) (50,485) 40.5% 16.3% (178,606) (148,002) 20.7%
Profit for the period 347,263 329,298 300,488 15.6% 5.5% 973,032 848,534 14.7%
Balance sheet
In thousands of GEL Sep'24 Jun'24 Sep'23 Change YoY Change QoQ
Total assets 37,972,326 35,780,415 29,956,393 26.8% 6.1%
Gross loans 24,778,623 24,128,807 20,365,135 21.7% 2.7%
Customer deposits 22,548,107 21,464,578 18,722,415 20.4% 5.0%
Total equity 5,427,772 5,079,760 4,473,400 21.3% 6.9%
Number of ordinary shares 56,022,807 55,361,967 55,140,216 1.6% 1.2%
Key ratios
3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
ROE 26.6% 27.1% 27.6% -1.0 pp -0.5 pp 26.2% 27.0% -0.8 pp
ROA 3.7% 3.8% 4.1% -0.4 pp -0.1 pp 3.7% 4.0% -0.3 pp
NIM 6.4% 6.4% 6.9% -0.5 pp 0.0 pp 6.4% 6.7% -0.3 pp
Cost to income 37.2% 37.8% 35.4% 1.8 pp -0.6 pp 37.4% 34.9% 2.5 pp
Cost of risk 0.8% 0.5% 0.9% -0.1 pp 0.3 pp 0.7% 0.9% -0.2 pp
NPL to gross loans 2.1% 2.0% 2.0% 0.1 pp 0.1 pp 2.1% 2.0% 0.1 pp
NPL provision coverage ratio 72.4% 75.5% 87.6% -15.2 pp -3.1 pp 72.4% 87.6% -15.2 pp
Total NPL coverage ratio 140.9% 141.9% 151.6% -10.7 pp -1.0 pp 140.9% 151.6% -10.7 pp
Leverage (x) 7.0x 7.0x 6.7x 0.3x 0x 7.0x 6.7x 0.3x
EPS (GEL) 6.17 5.94 5.54 11.4% 3.9% 17.50 15.44 13.3%
Diluted EPS (GEL) 6.14 5.91 5.45 12.7% 3.9% 17.42 15.22 14.5%
BVPS (GEL) 94.88 90.32 80.81 17.4% 5.0% 94.88 80.81 17.4%
Georgia
CET 1 CAR 16.6% 16.8% 17.5% -0.9 pp -0.2 pp 16.6% 17.5% -0.9 pp
Tier 1 CAR 20.4% 22.3% 19.9% 0.5 pp -1.9 pp 20.4% 19.9% 0.5 pp
Total CAR 23.9% 25.9% 22.3% 1.6 pp -2.0 pp 23.9% 22.3% 1.6 pp
Uzbekistan
CET 1 CAR 16.4% 12.6% 14.7% 1.7 pp 3.8 pp 16.4% 14.7% 1.7 pp
Tier 1 CAR 16.4% 12.6% 14.7% 1.7 pp 3.8 pp 16.4% 14.7% 1.7 pp
Total CAR 19.6% 16.4% 15.3% 4.3 pp 3.2 pp 19.6% 15.3% 4.3 pp
Operational highlights
Customer base
In thousands Sep'24 Jun'24 Sep'23 Change YoY Change QoQ
Total unique registered users 20,306 19,051 15,254 33% 7%
Georgia 3,418 3,360 3,221 6% 2%
Uzbekistan 16,888 15,691 12,033 40% 8%
Total monthly active customers 6,563 6,378 5,220 26% 3%
Georgia 1,671 1,633 1,575 6% 2%
Uzbekistan 4,892 4,745 3,645 34% 3%
Total digital monthly active users (digital MAU) 5,892 5,695 4,519 30% 3%
Georgia 1,000 950 874 14% 5%
Uzbekistan 4,892 4,745 3,645 34% 3%
Total digital daily active users (digital DAU) 1,948 1,884 1,436 36% 3%
Georgia 456 441 384 19% 3%
Uzbekistan 1,492 1,443 1,052 42% 3%
Digital DAU/MAU 33% 33% 32% 1 pp 0 pp
Georgia 46% 46% 44% 2 pp 0 pp
Uzbekistan 30% 30% 29% 1 pp 0 pp
Uzbekistan - key highlights
In thousands of GEL Sep'24 Jun'24 Sep'23 Change YoY Change QoQ
Gross loans and advances to customers 1,256,150 1,122,400 632,013 98.8% 11.9%
Customer accounts 855,689 721,632 515,586 66.0% 18.6%
In thousands of GEL 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
Total operating income 111,373 91,081 54,354 104.9% 22.3% 276,499 142,727 93.7%
Profit for the period 31,595 23,779 13,684 130.9% 32.9% 73,811 38,896 89.8%
ROE 28.2% 27.8% 23.4% 4.8 pp 0.4 pp 26.6% 24.6% 2 pp
Letter from the Chief Executive Officer 1
I am delighted to announce another very strong quarter for TBC in 3Q 2024. We
recorded a net profit of GEL 347 million, up 16% year-on-year, with a return
on equity of 26.6%. Notably, the contribution from our digital banking
ecosystem in Uzbekistan continues to grow, now representing 15% of the Group's
total operating income and 9% of profit. At the same time, our digital monthly
active users ("MAU") reached 5.9 million at the Group level, up by 30%
year-on-year.
Across the board income growth drives strong performance in 3Q 2024
In 3Q 2024, our total operating income grew by a very healthy 23%
year-on-year, reaching GEL 754 million. This growth was broad-based, led in
particular by net interest income increasing by 15% year-on-year and a strong
contribution from net fee and commission income, which rose by 39%
year-on-year. At the same time, I am pleased to report that our NIM dynamics
appear to have turned the corner, with Group NIM stabilising at 6.4%.
Strong growth in Georgia, rapid expansion in Uzbekistan
In 3Q 2024, our Georgian financial services segment continued to demonstrate
very good growth, with our loan book increasing by 17% year-on-year on a
constant currency basis. Over the same period, our deposits grew by 18% on a
constant currency basis. As a result, our business in Georgia delivered a net
profit of GEL 338 million, up 13% year-on-year, while maintaining a return on
equity of 26.5%. Additionally, our capital position remains solid, with CET1,
Tier 1, and Total Capital ratios standing at 16.6%, 20.4%, and 23.9%,
respectively, all well above the minimum regulatory requirements.
Meanwhile, our digital banking ecosystem in Uzbekistan maintained its rapid
expansion, with the loan book nearly doubling year-on-year to reach GEL 1.3
billion (USD 460 million), capturing almost 15% share of the microloan
market(( 2 )), and accounting for 44% of the Group's unsecured consumer loans.
Retail deposits also saw significant growth, increasing by 66% to GEL 856
million (USD 314 million), contributing 10% of the Group's total retail
deposits and 3.5% share of the Uzbekistan retail deposit market. This strong
performance translated into GEL 111 million (USD 41 million) in total
operating income and GEL 32 million (USD 12 million) in net profit, up by 105%
and 131% year-on-year, respectively, with the return on equity for our Uzbek
operations reaching an excellent 28.2%.
New flagship daily banking product launched in Uzbekistan
We continue to leverage our Group's deep technological expertise and extensive
experience in building best-in-class banking and financial services. I would
like to highlight the recent launch of Salom Card, our new flagship daily
banking product in Uzbekistan. We believe it will set a new benchmark for
daily banking services in the country, offering a range of benefits previously
unavailable on the market and an easy-to-use, fully digital interface through
the TBC mobile app. We are also in the process of rolling out credit cards and
transactional MSME banking, both of which will be fully launched by the end of
this year. In addition, we have signed long-term strategic partnerships with
Visa and Mastercard in Uzbekistan that will enable us to introduce their cards
and additional payments solutions for our customers in order to further
improve their online payments and money transfer capabilities.
Vakhtang Butskhrikidze
CEO, TBC Bank Group PLC
Economic overview
Georgia
Economic growth stronger than expected
The Georgian economy continued to surge in the third quarter of 2024, with
real GDP expanding by a robust 11.1% year-on-year. This follows impressive
growth rates of 7.5% in 2023 and 9.1% in the first half of 2024. Tourism has
been a key catalyst for this economic acceleration. Tourist revenues
experienced a significant increase compared to the same period last year.
Also, based on BOP rather than instant money transfers methodology,
remittances were higher judging from the second quarter data.
Net inflows into Georgia also increased strongly in the third quarter,
primarily due to a strengthened trade balance. Total goods exports denominated
in U.S. dollars rose by 25.6% year-over-year in the third quarter of 2024,
with domestic exports increasing by 9.4%. Imports grew at a slower pace of
3.6%. Foreign direct investment (FDI) also saw a positive trend, increasing by
10.3% year-on-year in the second quarter of 2024 with reinvested FDI accounted
for a substantial portion of this inflow during the first half of the year.
Fiscal consolidation continues
The government remains committed to fiscal consolidation, aiming to reduce
both the budget deficit and public debt relative to GDP in the medium term.
Following a seasonal surplus in the second quarter, the government recorded a
deficit of 2.7% of GDP in the third quarter. As a result, the cumulative
budget deficit for the first nine months of 2024 stands at 0.6% of GDP. The
government's full-year target of 2.5% remains in place, aligning with the
deficit level reached in 2023.
Credit growth remains strong
Bank credit growth, another key driver of the strong economy, has continued to
accelerate. Year-over-year credit growth rose from 17.7% in June 2024 to 18.7%
in September 2024, when adjusted for exchange rate. Given the low and stable
inflation, real credit growth also remained robust at 18.0%. Lending to legal
entities remains higher, increasing by 21.1% year-over-year, while lending to
individuals grew by 16.6% in the third quarter of 2024. The gradual
dedollarization of bank lending continued, with the share of foreign currency
loans declining slightly to 43.5% at the end of September 2024, down from
44.4% at the end of June 2024.
GEL impacted by inflows and sentiment
The GEL experienced slight depreciation in May and June 2024. To address
excessive volatility, the NBG intervened by selling approximately USD 220
million in the foreign exchange market during these months. Strong foreign
currency inflows helped the GEL recover to 2.7 GEL per USD by mid-July and
enabled the NBG to increase foreign exchange reserves, thereby strengthening
monetary buffers. More recently, renewed market uncertainty caused the GEL to
depreciate slightly, reaching 2.72 in October, prompting the NBG to conduct
additional foreign exchange interventions.
The CPI inflation remains below the NBG's 3% target, standing at 0.6%
year-over-year in Septemeber, with underlying inflation also not showing signs
of inflationary pressures. Therefore, the NBG's decision to maintain the
monetary policy rate (MPR) at 8% in the third quarter was primarily driven by
higher uncertainties also internationally and still tight monetary policy
stance in the US.
Uzbekistan
Continued strong economic performance
Uzbekistan's economy continues to expand significantly, with real GDP growth
reaching 6.9% in the third quarter of 2024, following a 6.4% increase in the
second quarter. In terms of external trade, exports of goods rose by 24.9%
year-on-year in the third quarter, while imports declined by 3.9%. Retail
credit growth remained strong but slowed slightly, driven by a cooling in
non-mortgage lending. Despite this moderation, retail credit growth still
stood at a robust 22.0% year-on-year at the end of September. Mortgage credit
expanded by 18.1%, while non-mortgage credit grew by 28.6% during the same
period.
Annual inflation in Uzbekistan remained nearly unchanged, decreasing slightly
from 10.6% in June to 10.5% in September 2024. This stability was primarily
influenced by other economic factors, as utility tariffs had already been
increased in June. The Central Bank of Uzbekistan lowered its monetary policy
rate to 13.5% in July, influenced by the slower depreciation of the UZS,
decelerating credit growth and promising outlook for underlying inflation. By
the end of September 2024, the UZS was valued at 12,731 against the US Dollar,
down about 3% YTD.
Upgrading economic growth forecasts
Given the strong start to 2024 and even stronger third quarter, we recently
upgraded our forecast for real GDP growth in Georgia to 9.4% (from 7.4% at the
time of our 2Q 2024 results), while our projection for Uzbekistan now stands
at 6.5%.
More information on the Georgian economy and financial sector can be found at
www.tbccapital.ge (http://www.tbccapital.ge/) .
Progress towards our mid-term strategy targets
In 2023, TBC outlined a new set of medium-term Group and Uzbekistan business
targets for 2023-2025. During 2024, we have made good progress towards meeting
these targets, including maintaining ROE consistently above 23% and remaining
on track to hit GEL1.5 billion Group net profit in 2025, including GEL 200+
million in Uzbekistan.
As part of our strategic review, we determined that growth in TNET GMV to GEL
500 million is no longer a core strategic financial target for the Group and
we will discontinue providing specific guidance on this point given the
following:
· Solidifying TNET's classifieds market leadership: TNET remains the
leading online platform in Georgia for classifieds, ticketing and discounted
coupons, with >50% market share and c1.6 million customers. We intend to
focus on and strengthen our dominant position in these areas and add new
complementary services.
· Reconfiguration of eCommerce strategy: Competitive dynamics within
the eCommerce market have changed materially. In response, we have decided
to focus on a model led by our market-leading C2C marketplace, with third
parties providing all the services, including merchandise, distribution and
logistics.
· Leveraging TBC's financial expertise: We will leverage TBC's
financial know-how to embed best-in-class payments and credit products within
our TNET ecosystem. We aim to grow this business profitably.
Meanwhile, we reiterate that we are fully on track to meet all of our other
mid-term targets, as outlined in the tables below alongside the progress
towards these as of 9M 2024:
For the Group
Target for 2025 Actual performance 9M 2024
7 million digital monthly active users 5.9 million
GEL 1.5 billion profit (15%+ CAGR) GEL 973 million, +15% YoY
23%+ ROE 26.2%
25-35% dividend pay-out ratio The interim dividend for 2024 is GEL 2.55 per share; GEL 50 million buyback
(in 2024)
For Uzbekistan
Target for 2025 Actual performance 9M 2024
5 million+ digital monthly active users 4.9 million
80%+ loan book CAGR +99% YoY
GEL 200 million+ profit GEL 74 million, +90% YoY
Unaudited consolidated financial results overview for 3Q 2024
This statement provides a summary of the business and financial trends for 3Q
2024 for TBC Bank Group plc and its subsidiaries. The financial information
and trends are unaudited.
Please note that there might be slight differences in previous periods'
figures due to rounding.
Consolidated income statement and other comprehensive income
In thousands of GEL 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ
Interest income 958,194 878,549 753,658 27.1% 9.1%
Interest expense (465,633) (420,438) (325,724) 43.0% 10.7%
Net interest income 492,561 458,111 427,934 15.1% 7.5%
Fee and commission income 218,596 200,874 170,479 28.2% 8.8%
Fee and commission expense (73,799) (77,476) (66,327) 11.3% -4.7%
Net fee and commission income 144,797 123,398 104,152 39.0% 17.3%
Net insurance income 11,389 9,100 9,798 16.2% 25.2%
Net gains from currency derivatives, foreign currency operations and 101,326 85,647 66,968 51.3% 18.3%
translation
Other operating income 3,295 2,029 5,996 -45.0% 62.4%
Share of profit of associates 286 146 371 -22.9% 95.9%
Other operating non-interest income 116,296 96,922 83,133 39.9% 20.0%
Credit loss allowance for loans to customers (47,223) (27,665) (42,595) 10.9% 70.7%
Credit loss allowance for other financial items and net impairment for (8,052) (3,900) (3,564) NMF NMF
non-financial assets
Operating income after expected credit losses 698,379 646,866 569,060 22.7% 8.0%
Staff costs (149,257) (135,653) (121,056) 23.3% 10.0%
Depreciation and amortisation (37,488) (35,614) (29,286) 28.0% 5.3%
Administrative and other operating expenses (93,463) (85,310) (67,745) 38.0% 9.6%
Operating expenses (280,208) (256,577) (218,087) 28.5% 9.2%
Profit before tax 418,171 390,289 350,973 19.1% 7.1%
Income tax expense (70,908) (60,991) (50,485) 40.5% 16.3%
Profit for the period 347,263 329,298 300,488 15.6% 5.5%
Profit attributable to:
- Shareholders of TBCG 339,893 324,595 299,022 13.7% 4.7%
- Non-controlling interest 7,370 4,703 1,466 NMF 56.7%
Other comprehensive income:
Other comprehensive income/(expense) for the period 48,410 (41,840) (11,562) NMF NMF
Total comprehensive income for the period 395,673 287,458 288,926 36.9% 37.6%
Consolidated balance sheet
In thousands of GEL Sep'24 Jun'24 Change QoQ
ASSETS
Cash and cash equivalents 5,108,157 3,688,366 38.5%
Due from other banks 23,347 20,742 12.6%
Mandatory cash balances with the NBG and the CBU 1,991,538 1,511,508 31.8%
Loans and advances to customers 24,393,183 23,757,851 2.7%
Investment securities measured at fair value through other comprehensive 3,443,089 4,110,036 -16.2%
income
Bonds carried at amortised cost 154,036 103,070 49.4%
Finance lease receivables 521,782 468,395 11.4%
Investment properties 14,235 14,506 -1.9%
Investments in associates 4,297 3,871 11.0%
Current income tax prepayment 84,140 1,704 NMF
Deferred income tax asset 920 990 -7.1%
Other financial assets 296,002 306,561 -3.4%
Other assets 1,322,559 1,203,426 9.9%
Intangible assets 555,078 529,425 4.8%
Goodwill 59,963 59,964 0.0%
TOTAL ASSETS 37,972,326 35,780,415 6.1%
LIABILITIES
Due to credit institutions 5,922,371 4,846,332 22.2%
Customer accounts 22,548,107 21,464,578 5.0%
Other financial liabilities 577,196 683,382 -15.5%
Current income tax liability 27,727 4,350 NMF
Deferred income tax liability 57,934 52,882 9.6%
Debt Securities in issue 1,621,985 1,849,800 -12.3%
Other liabilities 237,480 226,562 4.8%
Subordinated debt 1,133,742 1,152,841 -1.7%
Redemption liability 418,012 419,928 -0.5%
TOTAL LIABILITIES 32,544,554 30,700,655 6.0%
EQUITY
Share capital 1,713 1,689 1.4%
Shares held by trust (66,982) (66,982) 0.0%
Share premium 345,913 292,734 18.2%
Retained earnings 4,995,298 4,796,051 4.2%
Other reserves (42,996) (101,634) -57.7%
Equity attributable to owners of the parent 5,232,946 4,921,858 6.3%
Non-controlling interest 194,826 157,902 23.4%
TOTAL EQUITY 5,427,772 5,079,760 6.9%
TOTAL LIABILITIES AND EQUITY 37,972,326 35,780,415 6.1%
Ratios
Ratios (based on monthly averages, where applicable) 3Q'24 2Q'24 3Q'23
Profitability ratios:
ROE(1) 26.6% 27.1% 27.6%
ROA(2) 3.7% 3.8% 4.1%
Cost to income(3) 37.2% 37.8% 35.4%
NIM(4) 6.4% 6.4% 6.9%
Loan yields(5) 12.9% 12.6% 12.6%
Deposit rates(6) 5.4% 5.2% 4.9%
Cost of funding7 6.1% 6.0% 5.4%
Asset quality & portfolio concentration:
Cost of risk(9) 0.8% 0.5% 0.9%
PAR 90 to gross loans(9) 1.4% 1.4% 1.2%
NPLs to gross loans(10) 2.1% 2.0% 2.0%
NPL provision coverage(11) 72.4% 75.5% 87.6%
Total NPL coverage(12) 140.9% 141.9% 151.6%
Credit loss level to gross loans(13) 1.6% 1.5% 1.8%
Related party loans to gross loans(14) 0.1% 0.1% 0.1%
Top 10 borrowers to total portfolio(15) 5.9% 5.9% 6.0%
Top 20 borrowers to total portfolio(16) 8.7% 8.7% 8.9%
Capital & liquidity positions:
Net loans to deposits plus IFI funding(17) 96.9% 100.0% 96.9%
Leverage (x)(18) 7.0x 7.0x 6.7x
Georgia
Net stable funding ratio(19) 123.1% 118.2% 124.1%
Liquidity coverage ratio(20) 121.1% 118.1% 114.1%
CET 1 CAR(21) 16.6% 16.8% 17.5%
Tier 1 CAR(22) 20.4% 22.3% 19.9%
Total 1 CAR(23) 23.9% 25.9% 22.3%
Uzbekistan
CET 1 CAR(24) 16.4% 12.6% 14.7%
Tier 1 CAR(25) 16.4% 12.6% 14.7%
Total 1 CAR(26) 19.6% 16.4% 15.3%
Funding and liquidity in Georgia
Sep'24 Jun'24 Change QoQ
Minimum net stable funding ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Net stable funding ratio as defined by the NBG 123.1% 118.2% 4.9 pp
Minimum total liquidity coverage ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Minimum LCR in GEL, as defined by the NBG 75% 75.0% 0.0 pp
Minimum LCR in FC, as defined by the NBG 100.0% 100.0% 0.0 pp
Total liquidity coverage ratio, as defined by the NBG 121.1% 118.1% 3.0 pp
LCR in GEL, as defined by the NBG 85.9% 100.0% -14.1 pp
LCR in FC, as defined by the NBG 141.3% 129.5% 11.8 pp
Regulatory capital
In Georgia, the slight decline in CET1 ratio in 3Q 2024 was related to the
pending dividend payment and increased loan portfolio, largely offset by
strong income generation. Over the same period, the decrease in Tier1 and
Total capital adequacy ratios was mainly driven by the repayment of USD 125
million AT1 bonds in July.
Georgia
In thousands of GEL Sep'24 Jun'24 Change QoQ
CET 1 capital 4,540,404 4,344,472 4.5%
Tier 1 capital 5,564,042 5,749,522 -3.2%
Total capital 6,533,759 6,671,739 -2.1%
Total risk-weighted assets 27,314,351 25,791,645 5.9%
Minimum CET 1 ratio 14.5% 14.6% -0.1 pp
CET 1 capital adequacy ratio 16.6% 16.8% -0.2 pp
Minimum Tier 1 ratio 16.8% 16.9% -0.1 pp
Tier 1 capital adequacy ratio 20.4% 22.3% -1.9 pp
Minimum total capital adequacy ratio 19.8% 20.0% -0.2 pp
Total capital adequacy ratio 23.9% 25.9% -2.0 pp
Uzbekistan
The QoQ increase in TBC UZ's capital adequacy ratios is driven by capital
injection in July 2024 (in amount of USD 26.5 million) which makes a total of
USD 38.2 million YTD.
Sep'24 Jun'24 Change QoQ
Minimum CET 1 ratio 8.0% 8.0% 0.0 pp
CET 1 capital adequacy ratio 16.4% 12.6% 3.8 pp
Minimum Tier 1 ratio 10.0% 10.0% 0.0 pp
Tier 1 capital adequacy ratio 16.4% 12.6% 3.8 pp
Minimum total capital adequacy ratio 13.0% 13.0% 0.0 pp
Total capital adequacy ratio 19.6% 16.4% 3.2 pp
Loan portfolio
As of 30 September 2024, the gross loan portfolio reached GEL 24,778.6
million, up by 2.7% QoQ, or up by 3.5% QoQ on a constant currency basis.
In 3Q 2024, our Georgian financial services loan portfolio increased by 2.3%
on a QoQ basis and reached GEL 23,501.9 million, with 2.9% QoQ growth on a
constant currency basis. Over the same period, our Uzbek portfolio increased
by 11.9% QoQ or 16.7% on a constant currency basis.
In thousands of GEL Sep'24 Jun'24 Change QoQ
Gross loans and advances to customers
Georgian financial services (Georgia FS)* 23,501,949 22,983,036 2.3%
Retail Georgia 8,391,309 8,137,555 3.1%
CIB Georgia 9,243,424 9,082,113 1.8%
MSME Georgia 5,882,230 5,778,382 1.8%
Uzbekistan 1,256,150 1,122,400 11.9%
Total gross loans and advances to customers** 24,778,623 24,128,807 2.7%
* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan
portfolio
3Q'24 2Q'24 3Q'23 Change YoY Change QoQ
Loan yields 12.9% 12.6% 12.6% 0.3 pp 0.3 pp
GEL 13.8% 13.7% 14.8% -1.0 pp 0.1 pp
FC 8.7% 8.5% 8.6% 0.1 pp 0.2 pp
UZS 44.7% 44.2% 41.9% 2.8 pp 0.5 pp
Georgia FS 11.3% 11.1% 11.7% -0.4 pp 0.2 pp
GEL 13.8% 13.7% 14.8% -1.0 pp 0.1 pp
FC 8.6% 8.5% 8.5% 0.1 pp 0.1 pp
Uzbekistan 44.7% 44.2% 41.9% 2.8 pp 0.5 pp
UZS 44.7% 44.2% 41.9% 2.8 pp 0.5 pp
Total loan yields* 12.9% 12.6% 12.6% 0.3 pp 0.3 pp
* Total loans yields include Azerbaijan
Loan portfolio quality
PAR 90 Sep'24 Jun'24 Change QoQ
Georgia FS* 1.3% 1.3% 0.0 pp
Retail Georgia 0.8% 0.7% 0.1 pp
CIB Georgia 1.0% 0.9% 0.1 pp
MSME Georgia 2.7% 2.9% -0.2 pp
Uzbekistan 2.8% 2.5% 0.3 pp
Total PAR 90** 1.4% 1.4% 0.0 pp
* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan
In thousands of GEL Sep'24 Jun'24 Change QoQ
Non-performing Loans (NPL)
Georgia FS* 496,166 462,500 7.3%
Retail Georgia 111,411 112,924 -1.3%
CIB Georgia 161,856 137,804 17.5%
MSME Georgia 222,899 211,772 5.3%
Uzbekistan 35,163 27,699 26.9%
Total non-performing loans** 532,353 491,068 8.4%
* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs
NPL to gross loans Sep'24 Jun'24 Change QoQ
Georgia FS* 2.1% 2.0% 0.1 pp
Retail Georgia 1.3% 1.4% -0.1 pp
CIB Georgia 1.8% 1.5% 0.3 pp
MSME Georgia 3.8% 3.7% 0.1 pp
Uzbekistan 2.8% 2.5% 0.3 pp
Total NPL to gross loans** 2.1% 2.0% 0.1 pp
* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs
Sep'24 Jun'24
NPL Coverage Provision Coverage Total Coverage*** Provision Coverage Total Coverage***
Georgia FS* 64.4% 137.8% 68.2% 138.4%
Retail Georgia 144.3% 206.0% 133.1% 195.6%
CIB Georgia 32.2% 105.8% 44.1% 108.8%
MSME Georgia 47.9% 127.0% 49.2% 127.2%
Uzbekistan 180.4% 180.4% 192.8% 192.8%
Total NPL coverage** 72.4% 140.9% 75.5% 141.9%
* Georgian FS includes sub-segment eliminations
** Total NPL coverage include Azerbaijan loans coverage
*** Total NPL coverage ratio includes provision and collateral coverage
The QoQ increase in CoR was mainly driven by the GFS low base in 2Q 2024
related to the one-off recovery in the amount of GEL 9.3 million.
Cost of risk (CoR) 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ
Georgia FS* 0.5% 0.3% 0.7% -0.2 pp 0.2 pp
Retail Georgia 1.1% 0.4% 1.1% 0.0 pp 0.7 pp
CIB Georgia 0.1% -0.1% 0.0% 0.1 pp 0.2 pp
MSME Georgia 0.3% 0.5% 0.9% -0.6 pp -0.2 pp
Uzbekistan 5.7% 5.5% 7.3% -1.6 pp 0.2 pp
Total cost of risk** 0.8% 0.5% 0.9% -0.1 pp 0.3 pp
* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR
Deposit portfolio
As of 30 September 2024, deposit portfolio reached GEL 22,548.1 million, up by
5.0% QoQ, or up by 6.2% QoQ on a constant currency basis.
In 3Q 2024, our Georgia FS deposit portfolio increased by 4.9% on a QoQ basis
and reached GEL 21,892.7 million, with 6.0% QoQ growth on a constant currency
basis. Over the same period, our Uzbek portfolio increased by 18.6% QoQ or
23.6% on a constant currency basis.
In thousands of GEL Sep'24 Jun'24 Change QoQ
Customer accounts
Georgia FS* 21,892,684 20,867,540 4.9%
Retail Georgia 8,102,782 7,830,406 3.5%
CIB Georgia 11,211,555 10,417,043 7.6%
MSME Georgia 1,998,253 1,960,795 1.9%
MOF 711,745 765,096 -7.0%
Uzbekistan 855,689 721,632 18.6%
Total customer accounts** 22,548,107 21,464,578 5.0%
* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations
3Q'24 2Q'24 3Q'23 Change YoY Change QoQ
Deposit rates 5.4% 5.2% 4.9% 0.5 pp 0.2 pp
GEL 7.7% 7.6% 8.2% -0.5 pp 0.1 pp
FC 1.4% 1.3% 0.9% 0.5 pp 0.1 pp
UZS 24.7% 24.8% 24.4% 0.3 pp -0.1 pp
Georgian financial services 4.7% 4.6% 4.4% 0.3 pp 0.1 pp
GEL 7.7% 7.6% 8.2% -0.5 pp 0.1 pp
FC 1.4% 1.3% 0.9% 0.5 pp 0.1 pp
Uzbek business 24.6% 24.8% 24.4% 0.2 pp -0.2 pp
UZS 24.7% 24.8% 24.4% 0.3 pp -0.1 pp
FC 4.7% 2.3% 4.1% 0.6 pp 2.4 pp
Total deposit rates* 5.4% 5.2% 4.9% 0.5 pp 0.2 pp
* Total deposits rates include MOF deposits
Unaudited consolidated financial results overview for 9M 2024
This statement provides a summary of the business and financial trends for 9M
2024 for TBC Bank Group plc and its subsidiaries. The financial information
and trends are unaudited.
Please note that there might be slight differences in previous periods'
figures due to rounding.
Consolidated income statement and other comprehensive income
In thousands of GEL 9M'24 9M'23 Change YoY
Interest income 2,677,097 2,137,628 25.2%
Interest expense (1,283,581) (943,565) 36.0%
Net interest income 1,393,516 1,194,063 16.7%
Fee and commission income 598,958 484,009 23.7%
Fee and commission expense (226,460) (181,783) 24.6%
Net fee and commission income 372,498 302,226 23.3%
Net insurance income 28,292 22,200 27.4%
Net gains from currency derivatives, foreign currency operations and 248,442 188,696 31.7%
translation
Other operating income 6,926 26,126 -73.5%
Share of profit of associates 391 913 -57.2%
Other operating non-interest income 284,051 237,935 19.4%
Credit loss allowance for loans to customers (118,788) (122,019) -2.6%
Credit loss allowance for other financial items and net impairment for (13,183) (11,242) 17.3%
non-financial assets
Operating income after expected credit and non-financial asset impairment 1,918,094 1,600,963 19.8%
losses
Staff costs (411,473) (333,206) 23.5%
Depreciation and amortisation (107,210) (87,234) 22.9%
Administrative and other operating expenses (247,773) (183,987) 34.7%
Operating expenses (766,456) (604,427) 26.8%
Profit before tax 1,151,638 996,536 15.6%
Income tax expense (178,606) (148,002) 20.7%
Profit for the period 973,032 848,534 14.7%
Profit attributable to:
- Shareholders of TBCG 957,293 836,481 14.4%
- Non-controlling interest 15,739 12,053 30.6%
Other comprehensive income:
Other comprehensive income/(expense) for the period 14,246 (1,514) NMF
Total comprehensive income for the period 987,278 847,020 16.6%
Consolidated balance sheet
In thousands of GEL Sep'24 Sep'23 Change YoY
ASSETS
Cash and cash equivalents 5,108,157 2,648,469 92.9%
Due from other banks 23,347 38,954 -40.1%
Mandatory cash balances with NBG and the CBU 1,991,538 1,904,010 4.6%
Loans and advances to customers 24,393,183 20,003,021 21.9%
Investment securities measured at fair value through other comprehensive 3,443,089 3,071,046 12.1%
income
Bonds carried at amortised cost 154,036 65,289 NMF
Finance lease receivables 521,782 364,077 43.3%
Investment properties 14,235 20,629 -31.0%
Investments in associates 4,297 3,940 9.1%
Current income tax prepayment 84,140 16,062 NMF
Deferred income tax asset 920 10,721 -91.4%
Other financial assets 296,002 259,771 13.9%
Other assets 1,322,559 1,047,451 26.3%
Intangible assets 555,078 442,989 25.3%
Goodwill 59,963 59,964 0.0%
TOTAL ASSETS 37,972,326 29,956,393 26.8%
LIABILITIES
Due to credit institutions 5,922,371 3,330,925 77.8%
Customer accounts 22,548,107 18,722,415 20.4%
Other financial liabilities 577,196 515,000 12.1%
Current income tax liability 27,727 17,958 54.4%
Deferred income tax liability 57,934 109,854 -47.3%
Debt Securities in issue 1,621,985 1,432,393 13.2%
Other liabilities 237,480 202,461 17.3%
Subordinated debt 1,133,742 788,116 43.9%
Redemption liability 418,012 363,871 14.9%
TOTAL LIABILITIES 32,544,554 25,482,993 27.7%
EQUITY
Share capital 1,713 1,682 1.8%
Shares held by trust (66,982) (75,470) -11.2%
Share premium 345,913 272,930 26.7%
Retained earnings 4,995,298 4,145,795 20.5%
Other reserves (42,996) 19,761 NMF
Equity attributable to owners of the parent 5,232,946 4,364,698 19.9%
Non-controlling interest 194,826 108,702 79.2%
TOTAL EQUITY 5,427,772 4,473,400 21.3%
TOTAL LIABILITIES AND EQUITY 37,972,326 29,956,393 26.8%
Ratios
Ratios (based on monthly averages, where applicable) 9M'24 9M'23
Profitability ratios:
ROE(1) 26.2% 27.0%
ROA(2) 3.7% 4.0%
Cost to income(3) 37.4% 34.9%
NIM(4) 6.4% 6.7%
Loan yields(5) 12.8% 12.6%
Deposit rates(6) 5.3% 4.9%
Cost of funding(7) 6.0% 5.5%
Asset quality & portfolio concentration:
Cost of risk(9) 0.7% 0.9%
PAR 90 to gross loans(9) 1.4% 1.2%
NPLs to gross loans(10) 2.1% 2.0%
NPL provision coverage(11) 72.4% 87.6%
Total NPL coverage(12) 140.9% 151.6%
Credit loss level to gross loans(13) 1.6% 1.8%
Related party loans to gross loans(14) 0.1% 0.1%
Top 10 borrowers to total portfolio(15) 5.9% 6.0%
Top 20 borrowers to total portfolio(16) 8.7% 8.9%
Capital & liquidity positions:
Net loans to deposits plus IFI funding(17) 96.9% 96.9%
Leverage (x)(18) 7.0x 6.7x
Georgia
Net stable funding ratio(19) 123.1% 124.1%
Liquidity coverage ratio(20) 121.1% 114.1%
CET 1 CAR(21) 16.6% 17.5%
Tier 1 CAR(22) 20.4% 19.9%
Total 1 CAR(23) 23.9% 22.3%
Uzbekistan
CET 1 CAR(24) 16.4% 14.7%
Tier 1 CAR(25) 16.4% 14.7%
Total 1 CAR(26) 19.6% 15.3%
Funding and liquidity in Georgia
Sep'24 Sep'23 Change YoY
Minimum net stable funding ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Net stable funding ratio as defined by the NBG 123.1% 124.1% -1.0 pp
Minimum total liquidity coverage ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Minimum LCR in GEL, as defined by the NBG 75% 75.0% 0.0 pp
Minimum LCR in FC, as defined by the NBG 100.0% 100.0% 0.0 pp
Total liquidity coverage ratio, as defined by the NBG 121.1% 114.1% 7.0 pp
LCR in GEL, as defined by the NBG 85.9% 105.7% -19.8 pp
LCR in FC, as defined by the NBG 141.3% 121.0% 20.3 pp
Regulatory capital
The YoY increase in Tier 1 and total capital adequacy ratios was mainly due to
the issuance of USD 300 million AT1 capital notes, which was partially offset
by the repayment of USD 125 million AT1 notes.
Georgia
In thousands of GEL Sep'24 Sep'23 Change YoY
CET 1 capital 4,540,404 3,966,901 14.5%
Tier 1 capital 5,564,042 4,502,561 23.6%
Total capital 6,533,759 5,058,696 29.2%
Total risk-weighted assets 27,314,351 22,668,335 20.5%
Minimum CET 1 ratio 14.5% 14.4% 0.1 pp
CET 1 capital adequacy ratio 16.6% 17.5% -0.9 pp
Minimum Tier 1 ratio 16.8% 16.8% 0.0 pp
Tier 1 capital adequacy ratio 20.4% 19.9% 0.5 pp
Minimum total capital adequacy ratio 19.8% 19.9% -0.1 pp
Total capital adequacy ratio 23.9% 22.3% 1.6 pp
Uzbekistan
The YoY increase of capital adequacy ratios was driven by capital injections
and the new payment-to-income (PTI) based method for calculating RWAs, adopted
by CBU starting from 1(st) of July 2024.
Sep'24 Sep'23 Change YoY
Minimum CET 1 ratio 8.0% 8.0% 0.0 pp
CET 1 capital adequacy ratio 16.4% 14.7% 1.7 pp
Minimum Tier 1 ratio 10.0% 10.0% 0.0 pp
Tier 1 capital adequacy ratio 16.4% 14.7% 1.7 pp
Minimum total capital adequacy ratio 13.0% 13.0% 0.0 pp
Total capital adequacy ratio 19.6% 15.3% 4.3 pp
Loan portfolio
As of 30 September 2024, the gross loan portfolio reached GEL 24,778.6
million, up by 21.7% YoY, or up by 19.8% YoY on a constant currency basis.
In 9M 2024, our Georgia FS loan portfolio increased by 19.2% on a YoY and
reached GEL 23,501.9 million, with 17.1% YoY growth on a constant currency
basis. Over the same period, our Uzbek portfolio increased by 98.8% or 103.9%
on a constant currency basis.
In thousands of GEL Sep'24 Sep'23 Change YoY
Gross loans and advances to customers
Georgian financial services (Georgia FS)* 23,501,949 19,715,795 19.2%
Retail Georgia 8,391,309 7,131,727 17.7%
CIB Georgia 9,243,424 7,385,494 25.2%
MSME Georgia 5,882,230 5,203,680 13.0%
Uzbekistan 1,256,150 632,013 98.8%
Total gross loans and advances to customers** 24,778,623 20,365,135 21.7%
* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan
portfolio
9M'24 9M'23 Change YoY
Loan yields 12.8% 12.6% 0.2 pp
GEL 13.9% 15.0% -1.1 pp
FC 8.6% 8.4% 0.2 pp
UZS 44.2% 42.6% 1.6 pp
Georgia FS 11.3% 11.8% -0.5 pp
GEL 13.9% 15.0% -1.1 pp
FC 8.6% 8.4% 0.2 pp
Uzbekistan 44.2% 42.6% 1.6 pp
UZS 44.2% 42.6% 1.6 pp
Total loan yields* 12.8% 12.6% 0.2 pp
* Total loans yields include Azerbaijan
Loan portfolio quality
PAR 90 Sep'24 Sep'23 Change YoY
Georgia FS* 1.3% 1.2% 0.1 pp
Retail Georgia 0.8% 0.9% -0.1 pp
CIB Georgia 1.0% 0.5% 0.5 pp
MSME Georgia 2.7% 2.5% 0.2 pp
Uzbekistan 2.8% 2.1% 0.7 pp
Total PAR 90** 1.4% 1.2% 0.2 pp
* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan
In thousands of GEL Sep'24 Sep'23 Change YoY
Non-performing Loans (NPL)
Georgia FS* 496,166 399,230 24.3%
Retail Georgia 111,411 129,162 -13.7%
CIB Georgia 161,856 94,940 70.5%
MSME Georgia 222,899 175,128 27.3%
Uzbekistan 35,163 13,584 158.9%
Total non-performing loans** 532,353 413,520 28.7%
* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs
NPL to gross loans Sep'24 Sep'23 Change YoY
Georgia FS* 2.1% 2.0% 0.1 pp
Retail Georgia 1.3% 1.8% -0.5 pp
CIB Georgia 1.8% 1.3% 0.5 pp
MSME Georgia 3.8% 3.4% 0.4 pp
Uzbekistan 2.8% 2.1% 0.7 pp
Total NPL to gross loans** 2.1% 2.0% 0.1 pp
* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs
Sep'24 Sep'23
NPL Coverage Provision Coverage Total Coverage*** Provision Coverage Total Coverage***
Georgia FS* 64.4% 137.8% 82.5% 148.6%
Retail Georgia 144.3% 206.0% 136.0% 189.2%
CIB Georgia 32.2% 105.8% 52.0% 111.4%
MSME Georgia 47.9% 127.0% 59.5% 138.8%
Uzbekistan 180.4% 180.4% 199.9% 199.9%
Total NPL coverage** 72.4% 140.9% 87.6% 151.6%
* Georgian FS includes sub-segment eliminations
** Total NPL coverage include Azerbaijan loans coverage
*** Total NPL coverage ratio includes provision and collateral coverage
Cost of risk (CoR) 9M'24 9M'23 Change YoY
Georgia FS* 0.5% 0.7% -0.2 pp
Retail Georgia 0.9% 1.0% -0.1 pp
CIB Georgia 0.1% 0.0% 0.1 pp
MSME Georgia 0.5% 1.3% -0.8 pp
Uzbekistan 5.6% 6.6% -1.0 pp
Total cost of risk** 0.7% 0.9% -0.2 pp
* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR
Deposit portfolio
As of 30 September 2024, deposit portfolio reached GEL 22,548.1 million, up by
20.4% YoY, or up by 18.9% YoY on a constant currency basis.
In 9M 2024, our Georgia FS deposit portfolio increased by 19.6% on a YoY and
reached GEL 21,892.7 million, with 17.9% YoY growth on a constant currency
basis. Over the same period, our Uzbek portfolio increased by 66.0% YoY or
70.2% on a constant currency basis.
In thousands of GEL Sep'24 Sep'23 Change YoY
Customer accounts
Georgia FS* 21,892,684 18,300,484 19.6%
Retail Georgia 8,102,782 7,097,710 14.2%
CIB Georgia 11,211,555 8,973,867 24.9%
MSME Georgia 1,998,253 1,733,865 15.2%
MOF 711,745 611,017 16.5%
Uzbekistan 855,689 515,586 66.0%
Total customer accounts** 22,548,107 18,722,415 20.4%
* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations
9M'24 9M'23 Change YoY
Deposit rates 5.3% 4.9% 0.4 pp
GEL 7.8% 8.4% -0.6 pp
FC 1.3% 0.8% 0.5 pp
UZS 25.0% 24.9% 0.1 pp
Georgian financial services 4.7% 4.5% 0.2 pp
GEL 7.8% 8.5% -0.7 pp
FC 1.3% 0.8% 0.5 pp
Uzbek business 24.9% 24.8% 0.1 pp
UZS 25.0% 24.9% 0.1 pp
FC 3.7% 4.4% -0.7 pp
Total deposit rates* 5.3% 4.9% 0.4 pp
* Total deposits rates include MOF deposits
Additional information
1) Financial disclosures by business lines
Business line definitions
The operating segments are defined as follows:
· Georgian financial services (GFS) - include JSC TBC Bank with its
Georgian subsidiaries and JSC TBC Insurance with its subsidiary. The Georgia
financial service segment consists of three major business sub-segments, while
the treasury, leasing and insurance businesses are combined into the corporate
and other sub-segments:
o Corporate and investment banking (CIB) - a legal entity/group of
affiliated entities with an annual revenue exceeding GEL 20 million or which
has been granted facilities of more than GEL 7.5 million. Some other business
customers may also be assigned to the CIB segment or transferred to the micro,
small and medium enterprises segment on a discretionary basis. In addition,
CIB includes Wealth Management private banking services to high-net-worth
individuals with a threshold of USD 250,000 on assets under management (AUM),
as well as on discretionary basis;
o Retail - non-business individual customers;
o Micro, small and medium enterprises (MSME) - business customers who are
not included in the CIB sub-segment.
· Uzbekistan - TBC Bank Uzbekistan with respective subsidiaries and
Payme (Inspired LLC).
· Other - includes non-material or non-financial subsidiaries of the
group and intra-group eliminations.
Georgian financial services
Profit and loss statement
In thousands of GEL 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
Interest income 807,571 752,671 683,275 18.2% 7.3% 2,297,075 1,960,800 17.1%
Interest expense (399,020) (364,481) (292,486) 36.4% 9.5% (1,114,666) (857,732) 30.0%
Net interest income 408,551 388,190 390,789 4.5% 5.2% 1,182,409 1,103,068 7.2%
Fee and commission income 176,655 164,483 144,172 22.5% 7.4% 489,630 410,393 19.3%
Fee and commission expense (64,217) (66,562) (59,771) 7.4% -3.5% (198,028) (164,591) 20.3%
Net fee and commission income 112,438 97,921 84,401 33.2% 14.8% 291,602 245,802 18.6%
Net insurance income 11,567 9,290 9,939 16.4% 24.5% 28,833 22,699 27.0%
Net gains from currency derivatives, foreign currency operations and 102,426 88,170 68,938 48.6% 16.2% 255,225 202,257 26.2%
translation
Other operating income 3,098 1,917 4,045 -23.4% 61.6% 6,567 20,278 -67.6%
Share of profit of associates 286 146 371 -22.9% 95.9% 391 913 -57.2%
Other operating non-interest income 117,377 99,523 83,293 40.9% 17.9% 291,016 246,147 18.2%
Credit loss allowance for loans to customers (30,275) (14,103) (32,173) -5.9% NMF (81,203) (99,425) -18.3%
Credit loss allowance for other financial items and net impairment for (2,039) (2,792) (3,269) -37.6% -27.0% (5,421) (9,145) -40.7%
non-financial assets
Operating income after expected credit and non-financial asset impairment 606,052 568,739 523,041 15.9% 6.6% 1,678,403 1,486,447 12.9%
losses
Staff costs (114,972) (105,855) (101,647) 13.1% 8.6% (322,067) (279,116) 15.4%
Depreciation and amortisation (31,369) (30,013) (25,077) 25.1% 4.5% (90,647) (75,370) 20.3%
Administrative and other operating expenses (57,145) (51,998) (49,090) 16.4% 9.9% (153,907) (135,502) 13.6%
Operating expenses (203,486) (187,866) (175,814) 15.7% 8.3% (566,621) (489,988) 15.6%
Profit before tax 402,566 380,873 347,227 15.9% 5.7% 1,111,782 996,459 11.6%
Income tax expense (64,776) (57,166) (49,175) 31.7% 13.3% (165,646) (145,133) 14.1%
Profit for the period 337,790 323,707 298,052 13.3% 4.4% 946,136 851,326 11.1%
Balance sheet highlights
In thousands of GEL 30-Sep-24 30-Jun-24 30-Sep-23 Change YoY Change QoQ
Cash & NBG mandatory reserves 7,021,266 5,000,618 4,494,578 56.2% 40.4%
Due from other banks 23,315 20,708 38,923 -40.1% 12.6%
Loans and advances to customers 23,182,234 22,667,567 19,386,577 19.6% 2.3%
Investment securities measured at fair value through OCI 3,443,089 4,110,036 3,071,046 12.1% -16.2%
Intangible assets and Goodwill 415,793 406,942 371,909 11.8% 2.2%
Other assets 2,012,795 1,877,077 1,665,400 20.9% 7.2%
TOTAL ASSETS 36,098,492 34,082,948 29,028,433 24.4% 5.9%
Due to credit institutions 5,733,053 4,675,711 3,278,155 74.9% 22.6%
Customer accounts 21,892,684 20,867,540 18,300,484 19.6% 4.9%
Subordinated debt and debt securities in issue 2,458,892 2,682,703 2,052,334 19.8% -8.3%
Other liabilities 818,976 902,091 884,208 -7.4% -9.2%
TOTAL LIABILITIES 30,903,605 29,128,045 24,515,181 26.1% 6.1%
Equity attributable to shareholders 5,194,653 4,954,687 4,513,055 15.1% 4.8%
Non-controlling interest 234 216 197 18.8% 8.3%
TOTAL EQUITY 5,194,887 4,954,903 4,513,252 15.1% 4.8%
TOTAL LIABILITIES AND EQUITY 36,098,492 34,082,948 29,028,433 24.4% 5.9%
Key ratios
Georgian financial services 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
Profitability ratios:
ROE(1) 26.5% 26.9% 26.4% 0.1 pp -0.4 pp 25.8% 25.9% -0.1 pp
ROA(2) 3.8% 3.9% 4.2% -0.4 pp -0.1 pp 3.8% 4.1% -0.3 pp
Cost to income(3) 31.9% 32.1% 31.5% 0.4 pp -0.2 pp 32.1% 30.7% 1.4 pp
NIM(4) 5.6% 5.6% 6.5% -0.9 pp 0.0 pp 5.7% 6.4% -0.7 pp
Loan yields(5) 11.3% 11.1% 11.7% -0.4 pp 0.2 pp 11.3% 11.8% -0.5 pp
Deposit rates(6) 4.7% 4.6% 4.4% 0.3 pp 0.1 pp 4.7% 4.5% 0.2 pp
Cost of funding(7) 5.4% 5.4% 5.0% 0.4 pp 0.0 pp 5.4% 5.1% 0.3 pp
Asset quality & portfolio concentration:
Cost of risk(8) 0.5% 0.3% 0.7% -0.2 pp 0.2 pp 0.5% 0.7% -0.2 pp
PAR 90 to gross loans(9) 1.3% 1.3% 1.2% 0.1 pp 0.0 pp 1.3% 1.2% 0.1 pp
NPLs to gross loans(10) 2.1% 2.0% 2.0% 0.1 pp 0.1 pp 2.1% 2.0% 0.1 pp
NPL provision coverage(11) 64.4% 68.2% 82.5% -18.1 pp -3.8 pp 64.4% 82.5% -18.1 pp
Total NPL coverage(12) 137.8% 138.4% 148.6% -10.8 pp -0.6 pp 137.8% 148.6% -10.8 pp
For the ratio definitions and exchange rates, please refer to appendix 3.
Uzbekistan business
Profit and loss statement
In thousands of GEL 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
Interest income 148,879 123,740 68,549 NMF 20.3% 373,943 171,804 NMF
Interest expense (65,329) (56,729) (32,379) NMF 15.2% (169,086) (82,745) NMF
Net interest income 83,550 67,011 36,170 NMF 24.7% 204,857 89,059 NMF
Fee and commission income 38,740 34,861 24,632 57.3% 11.1% 101,674 70,473 44.3%
Fee and commission expense (11,089) (10,771) (6,540) 69.6% 3.0% (29,759) (17,012) 74.9%
Net fee and commission income 27,651 24,090 18,092 52.8% 14.8% 71,915 53,461 34.5%
Net gains from currency derivatives, foreign currency operations and 169 (30) 56 NMF NMF (287) 139 NMF
translation
Other operating income 3 10 36 -91.7% -70.0% 14 68 -79.4%
Other operating non-interest income/(expense) 172 (20) 92 87.0% NMF (273) 207 NMF
Credit loss allowance for loans to customers (16,857) (14,050) (10,694) 57.6% 20.0% (42,660) (23,576) 80.9%
Credit loss allowance for other financial items and net impairment for (2,078) (1,029) (552) NMF NMF (3,630) (1,853) 95.9%
non-financial assets
Operating income after expected credit and non-financial asset impairment 92,438 76,002 43,108 NMF 21.6% 230,209 117,298 96.3%
losses
Staff costs (19,510) (15,028) (10,047) 94.2% 29.8% (47,512) (28,347) 67.6%
Depreciation and amortisation (3,350) (3,153) (2,255) 48.6% 6.2% (9,262) (6,485) 42.8%
Administrative and other operating expenses (31,929) (30,181) (15,929) NMF 5.8% (86,745) (40,754) NMF
Operating expenses (54,789) (48,362) (28,231) 94.1% 13.3% (143,519) (75,586) 89.9%
Profit before tax 37,649 27,640 14,877 NMF 36.2% 86,690 41,712 NMF
Income tax expense (6,054) (3,861) (1,193) NMF 56.8% (12,879) (2,816) NMF
Profit for the period 31,595 23,779 13,684 NMF 32.9% 73,811 38,896 89.8%
Balance sheet highlights
In thousands of GEL 30-Sep-24 30-Jun-24 30-Sep-23 Change YoY Change QoQ
Cash & CBU mandatory reserves 86,464 207,848 51,872 66.7% -58.4%
Loans and advances to customers 1,192,707 1,068,992 604,856 97.2% 11.6%
Intangible assets and Goodwill 58,999 60,633 29,554 99.6% -2.7%
Other assets 380,050 228,993 137,961 NMF 66.0%
TOTAL ASSETS 1,718,220 1,566,466 824,243 NMF 9.7%
Due to credit institutions 303,967 331,137 46,504 NMF -8.2%
Customer accounts 855,689 721,632 515,586 66.0% 18.6%
Subordinated debt and debt securities in issue - 46,869 - NMF NMF
Other liabilities 82,781 78,852 28,201 NMF 5.0%
TOTAL LIABILITIES 1,242,437 1,178,490 590,291 NMF 5.4%
Equity attributable to shareholders 475,783 387,976 233,952 NMF 22.6%
TOTQL EQUITY 475,783 387,976 233,952 NMF 22.6%
TOTAL LIABILITIES AND EQUITY 1,718,220 1,566,466 824,243 NMF 9.7%
Key ratios
Uzbekistan business 3Q'24 2Q'24 3Q'23 Change YoY Change QoQ 9M'24 9M'23 Change YoY
Profitability ratios:
ROE(1) 28.2% 27.8% 23.4% 4.8 pp 0.4 pp 26.6% 24.6% 2.0 pp
ROA(2) 7.8% 6.9% 6.8% 1.0 pp 0.9 pp 7.2% 7.5% -0.3 pp
Cost to income(3) 49.2% 53.1% 51.9% -2.7 pp -3.9 pp 51.9% 53.0% -1.1 pp
NIM(4) 25.0% 24.4% 20.9% 4.1 pp 0.6 pp 24.5% 20.4% 4.1 pp
Loan yields(5) 44.7% 44.2% 41.9% 2.8 pp 0.5 pp 44.2% 42.6% 1.6 pp
Deposit rates(6) 24.6% 24.8% 24.4% 0.2 pp -0.2 pp 24.9% 24.8% 0.1 pp
Cost of funding(7) 23.5% 23.1% 24.0% -0.5 pp 0.4 pp 23.8% 24.4% -0.6 pp
Asset quality & portfolio concentration:
Cost of risk(8) 5.7% 5.5% 7.3% -1.6 pp 0.2 pp 5.6% 6.6% -1.0 pp
PAR 90 to gross loans(9) 2.8% 2.5% 2.1% 0.7 pp 0.3 pp 2.8% 2.1% 0.7 pp
NPLs to gross loans(10) 2.8% 2.5% 2.1% 0.7 pp 0.3 pp 2.8% 2.1% 0.7 pp
NPL provision coverage(11) 180.4% 192.8% 199.9% -19.5 pp -12.4 pp 180.4% 199.9% -19.5 pp
Total NPL coverage(12) 180.4% 192.8% 199.9% -19.5 pp -12.4 pp 180.4% 199.9% -19.5 pp
For the ratio definitions and exchange rates, please refer to appendix 3.
2) Glossary
Terminology Definition
BVPS Book value per share
CBU Central Bank of Uzbekistan
Consumer loans Unsecured loans to individuals
Digital daily active users (Digital DAU) The number of retail digital users, who logged into our digital channels at
least once per day
Digital monthly active users The number of retail digital users, who logged into our digital channels at
(Digital MAU) least once a month
EPS Earnings per share
Monthly active customers (MAC) For Georgian business, an individual user who has at least one active product
as of the reporting date or performed at least one transaction during the past
month. For Uzbek business, an individual user who logged into the digital
application at least once during the month
NBG National Bank of Georgia
3) Ratio definitions and exchange rates
Ratio definitions
1. Return on average total equity (ROE) equals profit attributable to owners
divided by the monthly average of total shareholders' equity attributable to
the PLC's equity holders for the same period; annualised where applicable.
2. Return on average total assets (ROA) equals profit of the period divided by
monthly average total assets for the same period; annualised where applicable.
3. Cost to income ratio equals total operating expenses for the period divided
by the total revenue for the same period. (Revenue represents the sum of net
interest income, net fee and commission income and other non-interest income).
4. Net interest margin (NIM) is net interest income divided by monthly average
interest-earning assets; annualised where applicable. Interest-earning assets
include investment securities (excluding CIB shares), net investment in
finance lease, net loans, and amounts due from credit institutions.
5. Loan yields equal interest income on loans and advances to customers
divided by monthly average gross loans and advances to customers; annualised
where applicable.
6. Deposit rates equal interest expense on customer accounts divided by
monthly average total customer deposits; annualised where applicable.
7. Cost of funding equals sum of the total interest expense and net interest
gains on currency swaps (entered for funding management purposes), divided by
monthly average interest-bearing liabilities; annualised where applicable.
8. Cost of risk equals credit loss allowance for loans to customers divided by
monthly average gross loans and advances to customers; annualised where
applicable.
9. PAR 90 to gross loans ratio equals loans for which principal or interest
repayment is overdue for more than 90 days divided by the gross loan portfolio
for the same period.
10. NPLs to gross loans equals loans with 90 days past due on principal or
interest payments, and loans with a well-defined weakness, regardless of the
existence of any past-due amount or of the number of days past due divided by
the gross loan portfolio for the same period.
11. NPL provision coverage equals total credit loss allowance for loans to
customers divided by the NPL loans.
12. Total NPL coverage equals total credit loss allowance plus the minimum of
collateral amount of the respective NPL loan (after applying haircuts in the
range of 0%-50% for cash, gold, real estate and PPE) and its gross loan
exposure divided by the gross exposure of total NPL loans.
13. Credit loss level to gross loans equals credit loss allowance for loans to
customers divided by the gross loan portfolio for the same period.
14. Related party loans to total loans equals related party loans divided by
the gross loan portfolio.
15. Top 10 borrowers to total portfolio equals the total loan amount of the
top 10 borrowers divided by the gross loan portfolio.
16. Top 20 borrowers to total portfolio equals the total loan amount of the
top 20 borrowers divided by the gross loan portfolio.
17. Net loans to deposits plus IFI funding ratio equals net loans divided by
total deposits plus borrowings received from international financial
institutions.
18. Leverage equals total assets to total equity.
19. Net stable funding ratio equals the available amount of stable funding
divided by the required amount of stable funding as defined by NBG in line
with Basel III guidelines. Calculations are made for TBC Bank standalone.
20. Liquidity coverage ratio equals high-quality liquid assets divided by the
total net cash outflow amount as defined by the NBG. Calculations are made for
TBC Bank standalone.
21. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both
calculated in accordance with requirements of the NBG Basel III standards.
Calculations are made for TBC Bank standalone.
22. Tier 1 CAR equals tier I capital divided by total risk weighted assets,
both calculated in accordance with the requirements of the NBG Basel III
standards. Calculations are made for TBC Bank standalone.
23. Total CAR equals total capital divided by total risk weighted assets, both
calculated in accordance with the requirements of the NBG Basel III standards.
Calculations are made for TBC Bank standalone.
24. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both
calculated in accordance with requirements of the CBU in national accounting
standards. Calculations are made for TBC UZ Bank standalone.
25. Tier 1 CAR equals tier I capital divided by total risk weighted assets,
both calculated in accordance with the requirements of the CBU in national
accounting standards. Calculations are made for TBC UZ Bank standalone.
26. Total CAR equals total capital divided by total risk weighted assets, both
calculated in accordance with the requirements of the CBU in national
accounting standards. Calculations are made for TBC UZ Bank standalone.
Exchange rates
To calculate the QoQ growth of the balance sheet items without the currency
exchange rate effect, we used the USD/GEL exchange rate of 2.8101 as of 30
June 2024. To calculate the YoY growth without the currency exchange rate
effect, we used the USD/GEL exchange rate of 2.6783 as of 30 September 2023.
As of 30 September 2024, the USD/GEL exchange rate equalled 2.7297. For
P&L items growth calculations without the currency effect, we used the
average USD/GEL exchange rate for the following periods: 2Q 2024 of 2.7396 and
3Q 2023 of 2.6215. As of 3Q 2024, the USD/GEL exchange rate equalled 2.7137,
9M 2024 of 2.7082, 9M 2023 of 2.6056.
1 Note: For better presentation purposes, certain financial numbers are
rounded to the nearest whole number.
2 Based on data published by the CBU, as of 1 October 2024.
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