REG - TBC Bank Group PLC - Final Results <Origin Href="QuoteRef">TBCG.L</Origin> - Part 3
22/02/2018 07:05
- Part 3: For the preceding part double click ID:nRSV6184Fb
to 2.8%.
Corporate
Corporate NPLs stood at 3.2%, down by 1.6pp on a YoY basis. The decline was
driven by write-off of one large corporate borrower in 1Q 2017, which was
almost fully provisioned, as well as by improved financial conditions of
several other borrowers.
The corporate NPLs in local currency decreased by 0.7pp to 0.0%, while NPLs in
foreign currency dropped by 1.9pp to 4.2%.
MSME
MSME NPLs expanded by 0.6pp on a YoY basis to 4.6%. The YoY increase is driven
by worsened financial standing of a few borrowers.
The MSME NPLs in local currency increased by 0.4pp to 2.2%, while NPLs in
foreign currency increased by 1.1pp to 6.0%.
NPLs Coverage
NPLs Coverage Dec-17(including IFRS9 impact) Dec-16
Exc. Collateral Incl. Collateral Exc. Collateral Incl. Collateral
Corporate 86.6% 211.0% 91.8% 262.2%
Retail 154.0% 237.3% 106.6% 205.6%
MSME 54.6% 170.6% 57.7% 186.4%
Total 104.7% 209.4% 88.4% 222.5%
Total
NPL coverage ratios per IAS 39 stood at 81.8% and 186.5%, including
collateral.
Retail Segment
NPL coverage ratios per IAS 39 stood at 120.8% and 204.1%, including
collateral.
Corporate
NPL coverage ratios per IAS 39 stood at 63.2% and 187.7%, including
collateral.
MSME
NPL coverage ratios per IAS 39 stood at 46.1% and 162.2%, including collateral
Liabilities
As of 31 December 2017, TBC Bank's total liabilities amounted to GEL 11,075.5
million, up by 20.6% YoY. The YoY growth of GEL 1,889.1 million was primarily
due to a GEL 1,361.9 million, or 21.1%, increase in customer deposits. Total
liabilities also grew following the increase in amounts due to credit
institutions by GEL 423.1 million as well as a rise in subordinated debt by
GEL 58.4 million.
Liquidity
The Bank's liquidity ratio, as defined by the NBG, stood at 32.5% as of 31
December 2017, compared to 30.8% as of 31 December 2016. The newly introduced
short term liquidity ratio, total LCR, as defined by NBG, stood at 112.7%
above the 100.0% limit. The LCR for GEL and FC stood at 95.6% and 122.9%
respectively, both higher of their respective limits of 75% and 100%.
Total Equity
As of 31 December 2017, TBC's total equity amounted to GEL 1,890.5 million, up
from GEL 1,582.6 million as of 31 December 2016. The YoY change in equity was
mainly due to the net profit contribution of GEL 359.9 million, which was
offset by a GEL 74.8 million dividend distribution (gross of tax and
consisting of GEL 66.7 million cash-based and GEL 8.1 million share-based).
Regulatory Capital
In December 2017, the National Bank of Georgia introduced new capital adequacy
requirements in order achieve better compliance with Basel III framework. More
information can be found on pages 54-55.
The regulatory CAR is already based on the new regulation. As of 31 December
2017, the Bank's Basel III Tier 1 and Total Capital Adequacy Ratios (CAR)
stood at 13.4% and 17.5%, compared to the required levels of 10.3% and 15.2%,
respectively. The Bank's Basel III Tier 1 Capital amounted to GEL
1,437.2million and Bank's Basel III Total Regulatory Capital amounted to GEL
1,885.3million. Risk Weighted Assets amounted to GEL 10,753.2million as of 31
December 2017.
Results by Segments and Subsidiaries
The segment definitions are as per below:
· Corporate - Legal Entities with an annual revenue of GEL 8.0
million or more or who have been granted a loan in an amount equivalent to USD
1.5 million or more. Some other business customers may also be assigned to
this segment or transferred to the MSME segment on a discretionary basis.
· MSME (Micro, Small and Medium) - all business customers who are
not included in either Corporate and Retail segments; or Legal Entities who
have been granted a Pawn shop loan;
· Retail - all non-business individual customers or individual
business customers who have been granted a loan in an amount equivalent below
USD 8.0 thousand. All individual customers are included in retail deposits.
· Corp. Centre-- comprises of the Treasury, other support and back
office functions, and non-banking subsidiaries of the Group.
Businesses customers are all legal entities or individuals who have been
granted a loan for business purpose.
Income Statement by Segments
Y'17 Retail MSME Corporate Corp.Centre Total
Interest Income 535,851 184,008 203,082 110,998 1,033,939
Interest Expense (118,516) (11,661) (103,707) (196,040) (429,924)
Net Transfer Pricing (73,141) (51,488) 22,489 102,140 0
Net Interest Income 344,194 120,859 121,864 17,098 604,015
Fee and Commission Income 140,581 20,335 30,037 2,990 193,944
Fee and Commission Expense (51,199) (8,949) (6,942) (893) (67,983)
Net fee and Commission Income 89,383 11,386 23,095 2,098 125,961
Gross Insurance Profit 0 0 0 6,773 6,773
Gains Less Losses from Trading in Foreign Currencies 22,597 26,885 38,885 (1,268) 87,099
Foreign Exchange Translation Gains Less Losses/(Losses Less Gains) 0 0 0 4,374 4,374
Net Losses from Derivative Financial Instruments 0 0 0 (36) (36)
(Losses Less Gains)/Gains Less Losses from Disposal of Investment Securities 0 0 0 93 93
Available for Sale
Other Operating Income 12,670 1,726 13,465 3,936 31,797
Share of profit of associates 0 0 0 909 909
Other Operating Non-Interest Income 35,267 28,612 52,350 8,007 124,236
Other Operating Non-Interest Income and Gross Insurance Profit 35,267 28,612 52,350 14,781 131,009
Provision for Loan Impairment (106,579) (14,275) 27,031 0 (93,823)
(Provision)/Recovery of Provision for Liabilities, Charges and Credit Related (261) 467 183 (542) (153)
Commitments
Recovery of Provision/(Provision) for Impairment of Investments in Finance 0 0 0 (492) (492)
Lease
(Provision)/Recovery of Provision for Impairment of other Financial Assets (17) (64) (7,666) (4,692) (12,439)
Operating income after provisions for impairment 361,986 146,985 216,858 28,250 754,078
Staff Costs (128,331) (31,225) (25,989) (17,555) (203,100)
Depreciation and Amortization (29,813) (4,972) (1,438) (1,042) (37,265)
Provision for Liabilities and Charges 0 0 0 2,495 2,495
Administrative and Other Operating Expenses (81,356) (15,118) (7,457) (17,599) (121,530)
Operating Expenses (239,501) (51,316) (34,884) (33,700) (359,400)
Profit before Tax 122,486 95,669 181,974 (5,450) 394,678
Income Tax Expense (15,526) (13,820) (27,738) 22,335 (34,750)
Profit for the Year 106,959 95,655 154,235 16,884 359,928
Portfolios by Segments
In thousands of GEL Dec-17 Dec-16
Loans and Advances to Customers
Consumer 2,128,658 1,838,895
Mortgage 2,069,728 1,808,433
Pawn 34,767 33,247
Retail 4,233,153 3,680,575
Corporate 2,475,392 2,062,229
MSME 1,844,671 1,615,919
Total Loans and Advances to Customers (Gross) 8,553,217 7,358,723
Less: Provision for Loan Impairment (227,864) (225,022)
Total Loans and Advances to Customers (Net) 8,325,353 7,133,702
Customer Accounts
Retail 4,378,265 3,748,151
Corporate 2,410,862 1,875,200
MSME 1,027,690 831,598
Total Customer Accounts 7,816,817 6,454,949
Retail Banking
As of 31 December 2017, retail loans stood at GEL 4,233.2 million (or GEL
3,518.2 million without Bank Republic estimated contribution effect), up by
GEL 552.6 million, or 15.0%, YoY. The main drivers were GEL 289.8 million, or
15.8%, increase in consumer loans, and a GEL 261.3 million, or 14.4% rise in
mortgage loans. As of 31 December 2017, TBC Bank's retail loans accounted for
40.2% market share of total individual loans. As of 31 December 2017, foreign
currency loans represented 49.3% of the total retail loan portfolio.
In the reporting period, retail deposits increased to GEL 4,378.3 million (or
to GEL 4,066.3 million without Bank Republic estimated contributed effect), up
by GEL 630.1 million or 16.8% YoY. Retail deposits grew by GEL 362.5 million,
or 9.0%, on a QoQ basis and accounted for 41.3% market share of total
individual deposits. The increase in retail deposits was attributable to a GEL
355.2 million, or 21.9%, rise in current deposits, and a GEL 274.9 million, or
12.9% increase in term deposits YoY. Term deposits accounted for 54.9% of the
total retail deposit portfolio as of 31 December 2017, while foreign currency
deposits represented 83.8% of the total retail deposit portfolio, compared to
86.4% as of December 2016.
In FY 2017, retail loan yields and deposit rates stood at 14.0% and 3.1%
respectively, and the segment's cost of risk on loans was 2.8%. The retail
segment contributed 29.7%, or GEL 107.0 million, to the TBC's total net income
in Respective period.
Corporate Banking
As of 31 December 2017, corporate loans amounted to GEL 2,475.4 million (or
GEL 2,230.2 million excluding Bank Republic estimated effect), up by GEL 413.2
million or 20.0% YoY. Foreign currency loans accounted for 74.6% of the total
corporate loan portfolio. The market share for legal entities increased by
2.3% YoY to 36.0% mainly due to newly acquired blue chip customers.
As of the same date, corporate deposits totalled GEL 2,410.9 million (or GEL
2,297.5 million without the Bank Republic effect), up by GEL 535.7 million or
28.6% YoY. Foreign currency corporate deposits represented 49.8% of the
total corporate deposit portfolio. Market share stood at 37.9%.
In FY 2017, corporate loan yields and deposit rates stood at 9.5% and 5.2%,
respectively. In the same period, the cost of risk on loans was -1.3%.
Negative CoR in 2017 is driven by good performance of the book. In terms of
profitability, the corporate segment's net profit reached GEL 154.2 million,
or 42.9% of the Bank's total net income.
MSME Banking
As of 31 December 2017, MSME loans amounted to GEL 1,844.7 million (GEL
1,708.7 million excluding Bank Republic estimated loan portfolio), up by GEL
228.8 million, or 14.2% YoY. Foreign currency loans accounted for 63.8% of the
total MSME portfolio.
As of the same date, MSME deposits stood at GEL 1,027.7 million (GEL 964.2
million excluding Bank Republic estimated deposit portfolio), up by GEL 196.1
million or 23.6% YoY. Foreign currency MSME deposits represented 53.7% of
the total MSME deposit portfolio.
In FY 2017, MSME loan yields and deposit rates stood at 10.9% and 1.3%
respectively, while the cost of risk on loans was 0.8%. In terms of
profitability, net profit for the MSME segment amounted to GEL 95.7 million,
or 26.6% of TBC's total net income.
Consolidated Financial Statements of TBC Bank Group PLC
Consolidated Balance Sheet
In thousands of GEL Dec-17 Dec-16
Cash and cash equivalents 1,431,477 945,180
Due from other banks 39,643 24,725
Mandatory cash balances with the National Bank of Georgia 1,033,818 990,642
Loans and advances to customers 8,325,353 7,133,702
Investment securities available for sale 657,938 430,703
Bonds carried at amortized cost 449,538 372,956
Investments in finance leases 143,837 95,031
Investment properties 79,232 95,615
Current income tax prepayment 19,084 7,430
Deferred income tax asset 2,855 3,511
Other financial assets 146,144 94,627
Other assets 156,651 171,263
Premises and equipment 366,913 314,032
Intangible assets 83,492 60,957
Goodwill 28,657 28,658
Investments in associates 1,277 -
Total assets 12,965,910 10,769,032
Liabilities
Due to credit institutions 2,620,714 2,197,577
Customer accounts 7,816,817 6,454,949
Other financial liabilities 91,753 50,998
Current income tax liability 447 2,577
Debt securities in issue 20,695 23,508
Deferred income tax liability 602 5,646
Provisions for liabilities and charges 13,200 16,026
Other liabilities 84,440 66,739
Subordinated debt 426,788 368,381
Total liabilities 11,075,457 9,186,401
EQUITY
Share capital 1,605 1,581
Share premium 714,651 677,211
Retained earnings 1,246,327 955,173
Group reorganisation reserve (162,167) (162,166)
Share based payment reserve (3,634) 23,327
Revaluation reserve for premises 70,045 70,460
Revaluation reserve for available-for-sale securities 1,730 (3,681)
Cumulative currency translation reserve (7,360) (7,538)
Net assets attributable to owners 1,861,198 1,554,367
Non-controlling interest 29,255 28,264
Total equity 1,890,453 1,582,631
Total liabilities and equity 12,965,910 10,769,032
Consolidated Statement of Profit or Loss and Other Comprehensive Income
In thousands of GEL Y'17 Y'16
Interest income 1,033,939 766,426
Interest expense (429,924) (275,973)
Net interest income 604,015 490,453
Fee and commission income 193,944 142,800
Fee and commission expense (67,983) (52,532)
Net Fee and Commission Income 125,961 90,268
Gross Insurance profit 6,773 256
Gains less losses from trading in foreign currencies 87,099 70,269
Foreign exchange translation gains less losses 4,374 (2,507)
Gains less losses/(losses less gains) from derivative financial instruments (36) (206)
(Losses less gains) / gains less losses from disposal of investment securities 93 9,293
available for sale
Share of profit of associates 909 0
Other operating income 31,797 23,236
Other operating non-interest income 124,236 100,085
Provision for loan impairment (93,823) (49,201)
Provision for impairment of investments in finance lease (492) (558)
Provision for/ (recovery of provision) performance guarantees and credit (153) (771)
related commitments
Provision for impairment of other financial assets (12,439) (2,855)
Impairment of investment securities available for sale 0 (11)
Operating income after provisions for impairment 754,078 627,667
Staff costs (203,100) (172,221)
Depreciation and amortisation (37,265) (28,082)
Provision for liabilities and charges 2,495 (2,210)
Administrative and other operating expenses (121,530) (109,474)
Operating expenses (359,400) (311,988)
Profit before tax 394,678 315,679
Income tax expense (34,750) (17,420)
Profit for the year 359,928 298,258
Other Comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Revaluation 5,489 522
Gains less losses reclassified to profit or loss upon disposal 0 (11,611)
Income tax recorded directly in other comprehensive income 0 1,649
Exchange differences on translation to presentation currency 181 (948)
Items that will not be reclassified to profit or loss:
Income tax recorded directly in other comprehensive income (422) 10,928
Other comprehensive income for the year 5,248 540
Total comprehensive income for the year 365,176 298,798
Profit attributable to:
- Owners of the Bank 354,410 299,146
- Non-controlling interest 5,518 (887)
Profit for the year 359,928 298,258
Total comprehensive income is attributable to:
- Owners of the Bank 359,585 299,686
- Non-controlling interest 5,591 (887)
Total comprehensive income for the year 365,176 298,798
Consolidated Statements of Cash Flows
In thousands of GEL YE 2017 YE 2016
Cash flows from operating activities
Interest received 1,001,920 735,705
Interest paid (425,454) (273,795)
Fees and commissions received 195,285 144,247
Fees and commissions paid (68,036) (52,154)
Insurance premium received 23,518 1,591
Insurance claims paid (9,127) (703)
Income received from trading in foreign currencies 87,099 70,411
Other operating income received 9,080 8,411
Staff costs paid (187,520) (148,656)
Administrative and other operating expenses paid (112,270) (104,077)
Income tax (paid) / refunded (53,916) (34,279)
Cash flows from operating activities before changes in operating assets and 460,580 346,701
liabilities
Net change in operating assets
Due from other banks and mandatory cash balances with the National Bank of (74,918) (448,582)
Georgia
Loans and advances to customers (1,341,709) (1,219,501)
Investment in finance lease (46,605) (11,687)
Other financial assets (38,153) (22,965)
Other assets 73,814 (843)
Due to other banks (230,290) 265,679
Customer accounts 1,337,901 1,150,146
Other financial liabilities 18,263 5,724
Other liabilities and provision for liabilities and charges 3,487 332
Net cash from operating activities 162,370 65,004
Cash flows from investing activities
Acquisition of investment securities available for sale (560,226) (143,980)
Proceeds from disposal of investment securities available for sale - 11,868
Proceeds from redemption at maturity of investment securities available for 345,748 166,871
sale
Acquisition of subsidiaries - (242,195)
Acquisition of bonds carried at amortised cost (307,248) (304,109)
Proceeds from redemption of bonds carried at amortised cost 242,380 314,231
Acquisition of premises, equipment and intangible assets (114,383) (50,689)
Disposal of premises, equipment and intangible assets 1,933 1,273
Proceeds from disposal of investment property 19,082 7,822
Acquisition of subsidiaries, net of cash acquired (273) 150,791
Net cash used in investing activities (372,988) (88,117)
Cash flows from financing activities
Proceeds from other borrowed funds 1,483,191 903,502
Redemption of other borrowed funds (844,115) (666,156)
Proceeds from subordinated debt 119,859 136,817
Redemption of subordinated debt (59,671) (90,416)
Proceeds from debt securities in issue (0) 4,354
Redemption of debt securities in issue (2,123) (4,636)
Dividends paid (67,927) (54,560)
Issue of ordinary shares 29 (3,495)
Net cash from / (used in) financing activities 629,243 225,410
Effect of exchange rate changes on cash and cash equivalents 67,672 22,536
Net increase / (decrease) in cash and cash equivalents 486,297 224,833
Cash and cash equivalents at the beginning of the year 945,180 720,347
Cash and cash equivalents at the end of the year 1,431,477 945,180
FY 2017 Bank Republic Financial Results Based on Internal Estimates
Bank Republic Profit and Loss
In thousands of GEL FY 2017
Interest income 163,250
Interest expense 52,519
Net interest income 110,731
Card operations (1,430)
Settlement transactions 6,210
Guarantees and letters of credit 2,896
Other (765)
Net fee and commission income 6,911
FX gain/losses 14,113
Other 8,654
Other non-interest income 22,767
Operating income 140,409
Operating expenses 60,775
Staff costs 35,175
Depreciation and amortization 4,702
Administrative and other operating expenses 20,898
Operating profit 80,269
Bank Republic Loan Portfolio
In thousands of GEL as of 31 December 2017
Total gross loans 1,096,158
Retail 714,959
Corporate 245,235
MSME 135,964
Bank Republic Deposit Portfolio
In thousands of GEL as of 31 December 2017
Total deposits 488,855
Retail 311,984
Corporate 113,406
MSME 63,4
Key Ratios
Average Balances
Average balances included in this document are calculated as the average of
the relevant monthly balances as of each month-end. Balances have been
extracted from TBC's unaudited and consolidated management accounts prepared
from TBC's accounting records, which were used by the Management for
monitoring and control purposes.
Key Ratios
Ratios (based on monthly averages, where applicable) Y'17 Y'16
Underlying ROE(1) 21.4% 20.6%
Reported ROE(2) 20.9% 22.4%
Underlying ROA(3) 3.2% 3.6%
Reported ROA(4) 3.1% 3.9%
Underlying Cost to Income(5) 40.5% 42.9%
Reported Cost to Income(6) 41.7% 45.8%
Cost of Risk(7) 1.2% 1.0%
NIM(8) 6.5% 7.8%
Risk Adjusted NIM(9) 5.1% 6.4%
Loan Yields(10) 12.1% 13.4%
Risk Adjusted Loan Yields(11) 10.7% 12.1%
Deposit rates(12) 3.4% 3.3%
Yields on interest Earning Assets(13) 11.1% 12.2%
Cost of Funding(14) 4.5% 4.5%
Spread(15) 6.6% 7.8%
PAR 90 to Gross Loans(16) 1.4% 1.3%
NPLs to Gross Loans(17) 3.3% 3.5%
NPLs coverage per IAS 39(18) 81.8% 88.4%
NPLs coverage with collateral per IAS 39(19) 186.5% 222.5%
NPLs coverage per IFRS 9(20) 104.7% N/A
NPLs coverage with collateral per IFRS 9(21) 209.4% N/A
Provision Level to Gross Loans(22) 2.7% 3.1%
Related Party Loans to Gross Loans(23) 0.1% 0.1%
Top 10 Borrowers to Total Portfolio(24) 8.2% 7.6%
Top 20 Borrowers to Total Portfolio(25) 12.4% 11.3%
Net Loans to Deposits plus IFI Funding(26) 92.5% 93.4%
Net Stable Funding Ratio(27) 124.4% 108.4%
Liquidity Coverage Ratio(28) 113% N/A
Leverage(29) 6.9x 6.8x
Regulatory Tier 1 CAR (Basel III)(30) 13.4% N/A
Regulatory Total CAR (Basel III)(31) 17.5% N/A
Regulatory Tier 1 CAR (Basel II/III)(32) 10.3%* 10.4%
Regulatory Total CAR (Basel II/III)(33) 13.5%* 14.2%
Dividend Pay-out ratio(34) 25.4% 25.2%
*Estimated Basel II/III ratios as of 31 December 2017
Ratio definitions
1. Underlying return on average total equity (ROE) equals underlying net
income attributable to owners divided by monthly average of total shareholders
'equity attributable to the PLC's equity holders for the same period adjusted
for the respective one-off items; Annualized where applicable.
2.Return on average total equity (ROE) equals net income attributable to
owners divided by monthly average of total shareholders 'equity attributable
to the PLC's equity holders for the same period; Annualized where applicable.
3. Underlying return on average total assets (ROA) equals underlying net
income of the period divided by monthly average total assets for the same
period. Annualised where applicable.
4. Return on average total assets (ROA) equals net income of the period
divided by monthly average total assets for the same period. Annualised where
applicable.
5. Underlying cost to income ratio equals total underlying operating expenses
for the period divided by the total underlying revenue for the same period.
(Revenue represents the sum of net interest income, net fee and commission
income and other non-interest income).
6. 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).
7. Cost of risk equals provision for loan impairment divided by monthly
average gross loans and advances to customers. Annualized where applicable.
8. 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 corporate shares, net investment in
finance lease, net loans, amount due from credit institutions. The latter
excludes all items from cash and cash equivalents, excludes EUR mandatory
reserves with NBG which currently has negative interest, and includes other
earning items from due from banks.
9. Risk Adjusted Net interest margin is NIM minus cost of risk without one
-offs and currency effect
10. Loan yields equal interest income on loans and advances to customers
divided by monthly average gross loans and advances to customers. Annualised
where applicable.
11. Risk Adjusted Loan yield is loan yield minus cost of risk without one-offs
and currency effect
12. Deposit rates equal interest expense on customer accounts divided by
monthly average total customer deposits. Annualised where applicable.
13. Yields on interest earning assets equal total interest income divided by
monthly average interest earning assets. Annualized where applicable.
14. Cost of funding equals total interest expense divided by monthly average
interest bearing liabilities. Annualised where applicable.
15. Spread equals difference between yields on interest earning assets
(including but not limited to yields on loans, securities and due from banks)
and cost of funding (including but not limited to cost of deposits, cost on
borrowings and due to banks).
16. 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.
17. NPLs to gross loans equals loans with 90 days past due on principal or
interest payments, and loans with 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.
18. NPLs coverage ratio equals total loan loss provision calculated per IAS 39
divided by the NPL loans.
19. NPLs coverage with collateral ratio equals loan loss provision calculated
per IAS 39 plus total collateral amount of NPL loans (excluding third party
guarantees) discounted at 30-50% depending on segment type divided by the NPL
loans.
20. NPLs coverage ratio equals total loan loss provision calculated per IFRS 9
divided by the NPL loans.
21. NPLs coverage with collateral ratio equals loan loss provision calculated
per IFRS 9 plus total collateral amount of NPL loans (excluding third party
guarantees) discounted at 30-50% depending on segment type divided by the NPL
loans.
22. Provision level to gross loans equals loan loss provision divided by the
gross loan portfolio for the same period.
23. Related party loans to total loans equals related party loans divided by
the gross loan portfolio.
24. Top 10 borrowers to total portfolio equals total loan amount of top 10
borrowers divided by the gross loan portfolio.
25. Top 20 borrowers to total portfolio equals total loan amount of top 20
borrowers divided by the gross loan portfolio.
26. Net loans to deposits plus IFI funding ratio equals net loans divided by
total deposits plus borrowings received from international financial
institutions.
27. Net stable funding ratio equals available amount of stable funding divided
by required amount of stable funding as defined in Basel III. NSFR ratio for
before 2Q 2017 is calculated per updated internal methodology in line with
Basel 2014 guidelines.
28. Liquidity coverage ratio equals high-quality liquid assets divided by
total net cash outflow amount as defined by NBG.
29. Leverage equals total assets to total equity.
30. Regulatory tier 1 CAR equals tier I capital divided by total risk weighted
assets, both calculated in accordance with the pillar 1 requirements of NBG
Basel III standards. The reporting started from the end of 2017. Calculations
are made for TBC Bank stand-alone, based on local standards.
31. Regulatory total CAR equals total capital divided by total risk weighted
assets, both calculated in accordance with the pillar 1 requirements of NBG
Basel III standards. The reporting started from the end of 2017. Calculations
are made for TBC Bank stand-alone, based on local standards.
32. Regulatory Tier 1 CAR equals Tier I Capital divided by total risk weighted
assets, both calculated in accordance with the NBG Basel II/III requirements.
33. Regulatory Total CAR equals total capital divided by total risk weighted
assets, both calculated in accordance with the NBG Basel II/III requirements
34. Dividend pay-out ratio for 2017 is based on 2016 performance. Dividend
pay-out ratio for 2016 is based on 2015 performance.
Exchange Rates
To calculate the QoQ growth of Balance Sheet items without the currency
exchange rate effect, we used USD/GEL exchange rate of 2.4767 as of 30
September 2017. For calculations of the YoY growth without the currency
exchange rate effect, we used USD/GEL exchange rate of 2.6468 as of 31
December 2016. The USD/GEL exchange rate as of 31 December 2017 equalled
2.5922. For P&L items growth calculations without currency effect, we used
the average USD/GEL exchange rate for the following periods: 4Q 2017 of
2.5933, 3Q 2017 of 2.4207, 4Q 2016 of 2.4958.
Additional Disclosures
Subsidiaries of TBC Bank Group PLC 15 (#_ftn15)
Ownership / voting % as of 31 December 2017 Country Year of acquisition Industry Total Assets (after elimination)
Subsidiary Amount % in TBC Group
GEL'000
TBC Insurance 100.0% Georgia 2016 Insurance 30,959 0.24%
JSC TBC Bank 98.7% Georgia 2016 Banking sector 12,655,524 97.61%
United Financial Corporation JSC 98.7% Georgia 1997 Card processing 7,486 0.06%
TBC Capital LLC 100.0% Georgia 1999 Brokerage 6,173 0.05%
TBC Leasing JSC 99.6% Georgia 2003 Leasing 187,339 1.44%
TBC Kredit LLC 75.0% Azerbaijan 2008 Non-banking credit institution 39,500 0.30%
Banking System Service Company LLC 100.0% Georgia 2009 Information services 561 0.00%
TBC Pay LLC 100.0% Georgia 2009 Processing 36,113 0.28%
Mali LLC 100.0% Georgia 2011 Real estate management 79 0.00%
Real Estate Management Fund JSC 100.0% Georgia 2010 Real estate management 21 0.00%
TBC Invest LLC 100.0% Israel 2011 PR and marketing 122 0.00%
1) Earnings per Share
In GEL 31-Dec-2017 31-Dec-2016
Earnings per share for profit attributable to the owners of the Group:
- Basic earnings per share 6.7 6.0
- Diluted earnings per share 6.6 5.9
Source: IFRS Consolidated
2) Sensitivity Scenario
Sensitivity Scenario 31-Dec-17 10% Currency Devaluation Effect
NIM* -0.1%
Technical Cost of Risk +0.2%
Regulatory Total Capital per new NBG regulation 1,885 1,922
Regulatory Capital adequacy ratios tier 1 and total capital per new NBG 0.62% - 0.73%
regulation decrease by
(*) Linear depreciation is assumed for NIM sensitivity analysis
Source: IFRS statements and Management Figures
3) FC details for Selected P/L Items
Selected P&L Items 4Q 2017 FC % of Respective Totals
Interest Income 42%
Interest Expense 50%
Fee and Commission Income 35%
Fee and Commission Expense 63%
Administrative Expenses 27%
Source: IFRS statements and Management figures
4) GEL Refinance Rate and Libor Linked B/S Items 31 December 2017
GEL Refinance Rate Gap GEL -345 m Libor Gap GEL 1,224 m
GEL m % share in totals GEL m % share in totals
Assets 1,786 14% Assets 2,532 20%
Securities with fixed yield(≤1y)* 494 45% Nostro** 399 59%
Securities with floating yield 149 13% NBG Reserves** 1,034 74%
Loans with Floating yield 1,013 12% NBG Deposits 172 12%
Reserves in NBG 118 8% Libor Loans 905 11%
Interbank loans& Deposits & Repo 12 2% Interest Rate Options 23
Liabilities 2,131 19%
Current accounts*** 427 5% Liabilities 1,308 12%
Saving accounts*** 446 6% Senior Loans 986 39%
Refinancing Loan of NBG 875 34% Subordinated Loans 322 75%
Interbank Loans &Deposits & Repo 62 72%
IFI Borrowings 322 13%
(*) 74% of the less than 1 year securities are maturing in 6 months
(**) Income on NBG reserves and Nostros are calculated as the benchmark minus
the margin whereby benchmarks are correlated with Libor. According to NBG
regulation from March, 2016 it is possible to apply negative interest rates
on NBG reserves and correspondent accounts. Therefore these two items close
the gap in case of both upward and downward movement of Libor rate.
(***) The Bank considers that current and saving deposits promptly react to
interest rate changes on the market (within 1 month prior notification)
Source: IFRS Group Data
5) Yields and Rates
Yields and Rates 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Loan yields 12.3% 11.9% 12.4% 11.9% 13.8%
Retail loan yields GEL 19.7% 19.2% 19.7% 20.0% 23.3%
Retail loan yields FX 8.8% 8.5% 9.0% 9.1% 9.9%
Retail Loan Yields 14.2% 13.8% 14.2% 13.9% 15.8%
Corporate loan yields GEL 12.2% 11.0% 10.6% 10.0% 9.6%
Corporate loan yields FX 9.2% 8.6% 9.5% 8.8% 12.5%
Corporate Loan Yields 10.0% 9.2% 9.8% 9.1% 11.8%
MSME loan yields GEL 13.6% 13.1% 13.4% 13.3% 14.3%
MSME loan yields FX 9.4% 9.4% 10.4% 10.1% 11.1%
MSME Loan Yields 10.9% 10.7% 11.4% 11.0% 12.0%
Deposit rates 3.5% 3.4% 3.5% 3.4% 3.3%
Retail deposit rates GEL 4.4% 4.0% 3.9% 3.9% 3.7%
Retail deposit rates FX 2.7% 2.8% 3.0% 3.2% 3.4%
Retail Deposit Yields 2.9% 3.0% 3.1% 3.3% 3.4%
Corporate deposit rates GEL 8.5% 8.3% 8.5% 8.7% 7.5%
Corporate deposit rates FX 2.1% 2.2% 2.1% 1.7% 2.0%
Corporate Deposit Yields 5.3% 5.2% 5.2% 4.9% 4.4%
MSME deposit rates GEL 2.1% 2.2% 2.2% 2.0% 1.7%
MSME deposit rates FX 0.8% 0.7% 0.6% 0.5% 0.6%
MSME Deposit Yields 1.4% 1.4% 1.3% 1.1% 1.1%
Yields on Securities 6.9% 8.4% 7.8% 8.1% 8.1%
Source: IFRS Consolidated
6) Risk Adjusted Yields
Risk-adjusted Yields 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Loan yields 11.1% 10.7% 10.9% 10.5% 12.6%
Retail Loan Yields 12.2% 10.8% 10.9% 10.6% 13.0%
Corporate Loan Yields 9.6% 11.1% 11.3% 11.1% 14.3%
MSME Loan Yields 10.4% 9.9% 10.5% 9.4% 9.6%
Source: IFRS Consolidated
Cost of Risk 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Retail 2.0% 3.2% 3.1% 2.9% 3.5%
Corporate 0.7% -1.7% -1.6% -2.9% -6.4%
MSME 0.7% 0.9% 0.7% 1.1% 3.3%
Total 1.4% 1.3% 1.3% 0.9% 0.6%
Source: IFRS Consolidated
7) Loan Quality per NBG
Sub-Standard, Doubtful and Loss (SDL) Loans Ratio per NBG
Dec-17 Sep-17 Jun-17 Mar-17 Dec-16
SDL Loans as % of Gross Loans 3.2% 3.4% 3.3% 4.1% 4.3%
Source: NBG
8) Cross Sell Ratio 16 (#_ftn16) and Number Active Products
Dec-17 Sep-17 Jun-17 Mar-17 Dec-16
Cross Sell Ratio 3.94 3.79 3.67 3.57 3.68
Number of Active Products (in millions) 4.5 4.06 3.78 3.16 3.14
Source: Management figures
9) Diversified Deposit Base
Status: monthly income >=GEL 2,000 or loans/deposits >=GEL 20,000
VIP: deposit >=USD 100,000 as well as on discretionary basis; WM: >=USD
100,000 as well as on discretionary basis
Wealth Management includes UHNW and HNW non-resident clients
31 December 2017 Volume of Deposits Number of Deposits
MASS 38% 93.3%
STATUS 29% 6.1%
VIP 22% 0.4%
Wealth Management for non-resident clients 10% 0.1%
Source: Management figures
10) Loan Concentration
Dec-17 Sep-17 Jun-17 Mar-17 Dec-16
Top 20 Borrowers as % of total portfolio 12.4% 12.3% 13.0% 12.2% 11.3%
Top 10 Borrowers as % of total portfolio 8.2% 8.6% 9.1% 8.3% 7.6%
Related Party Loans as % of total portfolio 0.1% 0.1% 0.1% 0.1% 0.1%
Source: IFRS consolidated
11) Sales breakdown (for products offered through Multichannel)
Dec-17 Sep-17 Jun-17 Mar-17 Dec-16
Digital Channels 23% 25% 22% 24% 26%
Call Center 22% 20% 27% 28% 29%
Branches 55% 55% 51% 49% 45%
Source: Management figures
12) Number of Transactions in Digital Channels
4Q 17 3Q 17 2Q 17 1Q 17
Internet banking number of transactions (in thousands) 2,743 2,175 2,166 2,098
Mobile banking number of transactions (in thousands) 5,207 3,953 3,163 2,622
POS number of transactions (in thousands) 16,416 13,326 11,328 9,636
POS volume of transactions (in mln GEL) 631 543 447 394
* Data includes e-commerce and excludes transactions at POS terminals in TBC
Bank's branches
Source: Management figures
13) Penetration Ratios of Digital Channels
Dec-17 Sep-17 Jun-17 Mar-17 Dec-16
IB&MB Penetration Ratio 40% 35% 33% 34% 37%
Mobile Banking Penetration Ratio 31% 27% 25% 25% 24%
Source: Management figures
14) Net outflow of borrowed funds
Subordinated and Senior Loans' Principal Amount Outflow by Year (GEL million)
2018 2019 2020 2021 2022 2023 2024 2025 2026
496 310 381 298 148 155 33 71 157
Source: Management figures, revolving non IFI loans from NBG are excluded
15) NPL Build Up
NPLs NPLs in millions as of Sep-17 Real Growth FX Effect Write-Offs Repossessed NPLs in Millions as of Dec-17
Retail 115 29 3 -29 -3 115
Corporate 73 11 4 -6 -3 78
MSME 83 9 3 -7 -4 85
Total 272 50 9 -42 -10 278
16) Net Write-Offs, 4Q 2017
In GEL millions Write-Offs Recoveries Net Write-Offs
Retail -29 8 -21
Corporate -7 14 7
MSME -7 1 -6
Total 43 23 -20
Source: IFRS Consolidated
17) Portfolio Breakdown by Collateral Types as of 31-Dec-17
Cash Cover 2%
Gold 3%
Inventory 5%
Real Estate 65%
Third Party Guarantees 6%
Other 1%
Unsecured 18%
Source: IFRS Consolidated
18) Loan to Value by Segments as of 31-Dec-17
Retail Corporate MSME Total
42% 43% 44% 43%
19) NBG Initiatives
Newly introduced Liquidity Coverage Ratio
NBG has introduced new liquidity requirements (NBG LCR) for short-term
liquidity risk management purposes The new requirements, which are in line
with Basel III with additional constraints above the Basel standards,
increased the effective liquidity requirements and came into force in
September 2017. The limits are defined for both GEL and FC currencies as well
as the total:
Limits
§ Total LCR>=100%
§ GEL LCR>=75%
§ FC LCR>=100%
In addition, in order to improve management of long-term liquidity, the NBG
plans to implement the Net Stable Funding Ratio (NSFR), which will void
existing liquidity requirements.
In 2016, the NBG initiated several measures to promote the "larization" and
increase the public trust in the domestic currency. Within NBG LCR framework
the national currency is treated preferentially.
Newly introduced changes to RWA under Capital Adequacy Framework
The NBG has also introduced payment-to-income and loan-to-value ratio for
retail loans which will affect loans issued after 30 November 2017. The
exposures which are out of the defined range will be assigned higher risk
weights from normal 75-100% to higher 100-150%. These changes will have
negative effects on the capital, but they are expected to be compensated
through higher pricing of such loans. In addition, the NBG has increased the
Group exposure limit from GEL 350,000 to GEL 2 million for the retail category
as defined by NBG.
Required PTI
Income range Hedged borrowers Non-hedged borrowers
<1000 30% 25%
1,000 - 2,000 35% 30%
Required LTV
Income range Hedged borrowers Non-hedged borrowers
2,000 - 4,000 40% 35%
4,000 - 8,000 45% 40%
>8,000 50% 45%
Collateral type GEL loans FX loans
Ordinary liquid asset 80% 75%
High liquid asset 90% 85%
In December 2017, the National Bank of Georgia introduced new capital adequacy
requirements in order achieve better compliance with Basel III framework.
2017 Actual 2018 F 2019 F 2020 F 2021 F
Tier 1 Total Tier 1 Total Tier 1 Total Tier 1 Total Tier 1 Total
Minimum Requirement 6.00% 8.00% 6.00% 8.00% 6.00% 8.00% 6.00% 8.00% 6.00% 8.00%
Conservation Buffer 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%
Counter-Cyclical Buffer 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Systemic Buffer 0.00% 0.00% 1.00% 1.00% 1.50% 1.50% 2.00% 2.00% 2.50% 2.50%
Pillar 1 buffers 8.50% 10.50% 9.50% 11.50% 10.00% 12.00% 10.50% 12.50% 11.00% 13.00%
In addition, the pillar 2 buffers in tier 1 will be in the range of 1.5%-2.5%
in 2018 and gradually increase to the range of 2.5%-4.0% by 2021. The pillar 2
buffers in total capital will be in the range of 3.0%-5.0% from 2018 to 2021.
20) TBC Insurance
TBC Insurance is a wholly owned subsidiary of the Company and the main
bancassurance partner of the Bank. It was acquired by the Group in October
2016 and has been growing rapidly since then. TBC Insurance's product offering
comprises motor, travel, personal accident, credit life and property, business
property, liability and cargo insurance products. The company uses a broad
range of channels to sell its products, including insurance agents, auto
dealerships, web platforms, as well as TBC Bank's market-leading multichannel
network.
In line with the Group's digitalisation strategy, TBC Insurance actively uses
digital channels to market and sell its products. In 2017, TBC Insurance
launched on the local market the first insurance chat bot, B Bot, which sells
different types of insurance products. B Bot is fun to use and is quickly
gaining popularity among our clients, especially the younger generation.
Another popular sales channel is the wide network of TBC Bank's self-service
terminals, where customers can buy travel, casualty and collision (CASCO), and
motor third-party liability (MTPL) insurance in a very short time. In
addition, travel insurance can be purchased through TBC Bank's internet and
mobile banking services, and more products are planned to be added to this
channel in 2018, including payment protection insurance (PPI), CASCO and MTPL.
Insurance business delivered outstanding financial results in a short time.
Its market share grew from 3.5% to 13.0% during 2017, while the number of
clients increased from 2,887 to 276,848. In line with the significant growth
of customers, TBC insurance posted GEL 12,153 thousand in gross written
premium, up by 445.7% YoY. As a result, net earned premium reached GEL5,881
thousand, up by 222.0%. At the same time, net combined ratio decreased since
the acquisition and remained broadly stable over the last two quarters. Net
profit turned positive in 3 Q'17 and reached GEL 885 thousand. In 4Q'17 net
profit amounted to GEL 601 thousand. The QoQ decline in net profit is driven
by seasonally higher acquisition costs due to sales promotion campaigns in the
4Q'17.
In thousands of GEL 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Gross written premium 12,153 8,584 6,275 4,306 2,227
Net earned premium 5,881 4,622 3,873 2,475 1,827
Net profit 601 885 (94) (458) (929)
4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Net combined ratio 93% 92% 107% 114% 166%
4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Market share 17 (#_ftn17) 13.0% 10.9% 9.0% 7.9% 3.5%
4Q'17 3Q'17 2Q'17 1Q'17 4Q'16
Number of clients 276,848 239,472 174,385 116,456 2,887
21) Reconciliation of reported IFRS consolidated figures with underlying
numbers
4Q 2016 2016
Reported Net interest income 153.7 490.5
One-off interest income related to large corporate borrowers 9.6 13.8
One-off interest expense related to prepayment of subordinated loans (2.5) (2.5)
Underlying net interest income 146.6 479.1
Reported Net fee and commission income 28.4 90.3
Reported Gross Insurance Profit 0.26 0.26
Reported Other operating income 35.92 100.08
One-off gain on sale of investment securities 0 8.80
Underlying other operating income 35.92 91.29
Reported operating income 218.25 681.06
Underlying operating income
- More to follow, for following part double click ID:nRSV6184Fd ,960.5 27.8%
Loans and Advances to Customers (Net) 8,325.4 7,133.7 16.7%
Financial Securities 1,107.5 803.7 37.8%
Fixed and Intangible Assets & Investment Property 529.6 470.6 12.5%
Other Assets 498.5 400.5 24.5%
Total Assets 12,965.9 10,769.0 20.4%
Due to Credit Institutions 2,620.7 2,197.6 19.3%
Customer Accounts 7,816.8 6,454.9 21.1%
Debt Securities in Issue 20.7 23.5 -12.0%
Subordinated Debt 426.8 368.4 15.9%
Other Liabilities 190.4 142.0 34.1%
Total Liabilities 11,075.5 9,186.4 20.6%
Total Equity 1,890.5 1,582.6 19.5%
Assets
As of 31 December 2017, TBC Bank's total assets amounted to GEL 12,965.9 million, up by GEL 2,196.9 million, or 20.4%, YoY.
This was mainly due to the increase in gross loans to customers by the GEL 1,194.5 million, or 16.2%. In addition, the YoY
rise resulted from a GEL 303.8 million, or 37.8%, increase in financial securities, a GEL 486.3 million or 51.5% increase
in cash and cash equivalents, a GEL 52.9 million, or 16.8% increase in premises and equipment and a GEL 22.5 million, or
37.0% increase in intangible assets, largely attributable to the Bank Republic estimated contribution effect.
Asset Quality
PAR 301 by Segments and Currencies
PAR 30 Dec-17 Dec-16
GEL FC Total GEL FC Total
Corporate 0.0% 2.0% 1.5% 0.0% 1.4% 1.0%
Retail 2.9% 2.0% 2.4% 2.5% 2.3% 2.4%
MSME 1.5% 3.1% 2.5% 1.8% 3.5% 3.0%
Total 2.1% 2.2% 2.2% 1.9% 2.3% 2.2%
1 loans overdue by more than 30 days to gross loans
Total
The total PAR 30 ratio remained stable YoY at 2.2%. PAR 30 in local currency increased by 0.2pp to 2.1%, while PAR 30 in
foreign currency dropped by 0.1pp to 2.2%.
Retail Segment
The retail segment PAR 30 amounted to 2.4%, unchanged from December 2016. The Retail PAR 30 in local currency increased by
0.4pp to 2.9%, while PAR 30 in foreign currency declined by 0.3pp to 2.0%.
Corporate
The corporate segment PAR 30 amounted to 1.5%, an increase of 0.5pp YoY. The increase is driven by one large borrower
falling in PAR 30; this exposure is guaranteed by the AAA rated Export Development Agency, according to international
credit rating agencies.
The corporate PAR 30 in local currency remained stable at 0.0%, while PAR 30 in foreign currency rose by 0.6pp to 2.0%.
MSME
The MSME segment PAR 30 amounted to 2.5%, down by 0.5% YoY. The decrease is driven by overall improved performance of the
book. The MSME PAR 30 in local currency decreased by 0.3pp to 1.5%, while PAR 30 in foreign currency decreased by 0.4pp to
3.1%.
NPLs
NPLs Dec-17 Dec-16
GEL FC Total GEL FC Total
Corporate 0.0% 4.2% 3.2% 0.7% 6.1% 4.8%
Retail 2.6% 2.8% 2.7% 1.8% 3.0% 2.5%
MSME 2.2% 6.0% 4.6% 1.8% 4.9% 4.0%
Total 2.1% 4.1% 3.3% 1.6% 4.4% 3.5%
Total
Total NPLs stood at 3.3% down by 0.2 pp on YoY basis. The NPLs in local currency increased by 0.5pp to 2.1%, while NPLs in
foreign currency decreased by 0.3pp to 4.1%.
Retail Segment
Retail NPLs stood at 2.7% up by 0.2pp on YoY. The Retail NPLs in local currency increased by 0.8pp to 2.6%, while NPLs in
foreign currency declined by 0.2pp to 2.8%.
Corporate
Corporate NPLs stood at 3.2%, down by 1.6pp on a YoY basis. The decline was driven by write-off of one large corporate
borrower in 1Q 2017, which was almost fully provisioned, as well as by improved financial conditions of several other
borrowers.
The corporate NPLs in local currency decreased by 0.7pp to 0.0%, while NPLs in foreign currency dropped by 1.9pp to 4.2%.
MSME
MSME NPLs expanded by 0.6pp on a YoY basis to 4.6%. The YoY increase is driven by worsened financial standing of a few
borrowers.
The MSME NPLs in local currency increased by 0.4pp to 2.2%, while NPLs in foreign currency increased by 1.1pp to 6.0%.
NPLs Coverage
NPLs Coverage Dec-17(including IFRS9 impact) Dec-16
Exc. Collateral Incl. Collateral Exc. Collateral Incl. Collateral
Corporate 86.6% 211.0% 91.8% 262.2%
Retail 154.0% 237.3% 106.6% 205.6%
MSME 54.6% 170.6% 57.7% 186.4%
Total 104.7% 209.4% 88.4% 222.5%
Total
NPL coverage ratios per IAS 39 stood at 81.8% and 186.5%, including collateral.
Retail Segment
NPL coverage ratios per IAS 39 stood at 120.8% and 204.1%, including collateral.
Corporate
NPL coverage ratios per IAS 39 stood at 63.2% and 187.7%, including collateral.
MSME
NPL coverage ratios per IAS 39 stood at 46.1% and 162.2%, including collateral
Liabilities
As of 31 December 2017, TBC Bank's total liabilities amounted to GEL 11,075.5 million, up by 20.6% YoY. The YoY growth of
GEL 1,889.1 million was primarily due to a GEL 1,361.9 million, or 21.1%, increase in customer deposits. Total liabilities
also grew following the increase in amounts due to credit institutions by GEL 423.1 million as well as a rise in
subordinated debt by GEL 58.4 million.
Liquidity
The Bank's liquidity ratio, as defined by the NBG, stood at 32.5% as of 31 December 2017, compared to 30.8% as of 31
December 2016. The newly introduced short term liquidity ratio, total LCR, as defined by NBG, stood at 112.7% above the
100.0% limit. The LCR for GEL and FC stood at 95.6% and 122.9% respectively, both higher of their respective limits of 75%
and 100%.
Total Equity
As of 31 December 2017, TBC's total equity amounted to GEL 1,890.5 million, up from GEL 1,582.6 million as of 31 December
2016. The YoY change in equity was mainly due to the net profit contribution of GEL 359.9 million, which was offset by a
GEL 74.8 million dividend distribution (gross of tax and consisting of GEL 66.7 million cash-based and GEL 8.1 million
share-based).
Regulatory Capital
In December 2017, the National Bank of Georgia introduced new capital adequacy requirements in order achieve better
compliance with Basel III framework. More information can be found on pages 54-55.
The regulatory CAR is already based on the new regulation. As of 31 December 2017, the Bank's Basel III Tier 1 and Total
Capital Adequacy Ratios (CAR) stood at 13.4% and 17.5%, compared to the required levels of 10.3% and 15.2%, respectively.
The Bank's Basel III Tier 1 Capital amounted to GEL 1,437.2million and Bank's Basel III Total Regulatory Capital amounted
to GEL 1,885.3million. Risk Weighted Assets amounted to GEL 10,753.2million as of 31 December 2017.
Results by Segments and Subsidiaries
The segment definitions are as per below:
· Corporate - Legal Entities with an annual revenue of GEL 8.0 million or more or who have been granted a loan in an
amount equivalent to USD 1.5 million or more. Some other business customers may also be assigned to this segment or
transferred to the MSME segment on a discretionary basis.
· MSME (Micro, Small and Medium) - all business customers who are not included in either Corporate and Retail
segments; or Legal Entities who have been granted a Pawn shop loan;
· Retail - all non-business individual customers or individual business customers who have been granted a loan in an
amount equivalent below USD 8.0 thousand. All individual customers are included in retail deposits.
· Corp. Centre-- comprises of the Treasury, other support and back office functions, and non-banking subsidiaries of
the Group.
Businesses customers are all legal entities or individuals who have been granted a loan for business purpose.
Income Statement by Segments
Y'17 Retail MSME Corporate Corp.Centre Total
Interest Income 535,851 184,008 203,082 110,998 1,033,939
Interest Expense (118,516) (11,661) (103,707) (196,040) (429,924)
Net Transfer Pricing (73,141) (51,488) 22,489 102,140 0
Net Interest Income 344,194 120,859 121,864 17,098 604,015
Fee and Commission Income 140,581 20,335 30,037 2,990 193,944
Fee and Commission Expense (51,199) (8,949) (6,942) (893) (67,983)
Net fee and Commission Income 89,383 11,386 23,095 2,098 125,961
Gross Insurance Profit 0 0 0 6,773 6,773
Gains Less Losses from Trading in Foreign Currencies 22,597 26,885 38,885 (1,268) 87,099
Foreign Exchange Translation Gains Less Losses/(Losses Less Gains) 0 0 0 4,374 4,374
Net Losses from Derivative Financial Instruments 0 0 0 (36) (36)
(Losses Less Gains)/Gains Less Losses from Disposal of Investment Securities Available for Sale 0 0 0 93 93
Other Operating Income 12,670 1,726 13,465 3,936 31,797
Share of profit of associates 0 0 0 909 909
Other Operating Non-Interest Income 35,267 28,612 52,350 8,007 124,236
Other Operating Non-Interest Income and Gross Insurance Profit 35,267 28,612 52,350 14,781 131,009
Provision for Loan Impairment (106,579) (14,275) 27,031 0 (93,823)
(Provision)/Recovery of Provision for Liabilities, Charges and Credit Related Commitments (261) 467 183 (542) (153)
Recovery of Provision/(Provision) for Impairment of Investments in Finance Lease 0 0 0 (492) (492)
(Provision)/Recovery of Provision for Impairment of other Financial Assets (17) (64) (7,666) (4,692) (12,439)
Operating income after provisions for impairment 361,986 146,985 216,858 28,250 754,078
Staff Costs (128,331) (31,225) (25,989) (17,555) (203,100)
Depreciation and Amortization (29,813) (4,972) (1,438) (1,042) (37,265)
Provision for Liabilities and Charges 0 0 0 2,495 2,495
Administrative and Other Operating Expenses (81,356) (15,118) (7,457) (17,599) (121,530)
Operating Expenses (239,501) (51,316) (34,884) (33,700) (359,400)
Profit before Tax 122,486 95,669 181,974 (5,450) 394,678
Income Tax Expense (15,526) (13,820) (27,738) 22,335 (34,750)
Profit for the Year 106,959 95,655 154,235 16,884 359,928
Portfolios by Segments
In thousands of GEL Dec-17 Dec-16
Loans and Advances to Customers
Consumer 2,128,658 1,838,895
Mortgage 2,069,728 1,808,433
Pawn 34,767 33,247
Retail 4,233,153 3,680,575
Corporate 2,475,392 2,062,229
MSME 1,844,671 1,615,919
Total Loans and Advances to Customers (Gross) 8,553,217 7,358,723
Less: Provision for Loan Impairment (227,864) (225,022)
Total Loans and Advances to Customers (Net) 8,325,353 7,133,702
Customer Accounts
Retail 4,378,265 3,748,151
Corporate 2,410,862 1,875,200
MSME 1,027,690 831,598
Total Customer Accounts 7,816,817 6,454,949
Retail Banking
As of 31 December 2017, retail loans stood at GEL 4,233.2 million (or GEL 3,518.2 million without Bank Republic estimated
contribution effect), up by GEL 552.6 million, or 15.0%, YoY. The main drivers were GEL 289.8 million, or 15.8%, increase
in consumer loans, and a GEL 261.3 million, or 14.4% rise in mortgage loans. As of 31 December 2017, TBC Bank's retail
loans accounted for 40.2% market share of total individual loans. As of 31 December 2017, foreign currency loans
represented 49.3% of the total retail loan portfolio.
In the reporting period, retail deposits increased to GEL 4,378.3 million (or to GEL 4,066.3 million without Bank Republic
estimated contributed effect), up by GEL 630.1 million or 16.8% YoY. Retail deposits grew by GEL 362.5 million, or 9.0%, on
a QoQ basis and accounted for 41.3% market share of total individual deposits. The increase in retail deposits was
attributable to a GEL 355.2 million, or 21.9%, rise in current deposits, and a GEL 274.9 million, or 12.9% increase in term
deposits YoY. Term deposits accounted for 54.9% of the total retail deposit portfolio as of 31 December 2017, while foreign
currency deposits represented 83.8% of the total retail deposit portfolio, compared to 86.4% as of December 2016.
In FY 2017, retail loan yields and deposit rates stood at 14.0% and 3.1% respectively, and the segment's cost of risk on
loans was 2.8%. The retail segment contributed 29.7%, or GEL 107.0 million, to the TBC's total net income in Respective
period.
Corporate Banking
As of 31 December 2017, corporate loans amounted to GEL 2,475.4 million (or GEL 2,230.2 million excluding Bank Republic
estimated effect), up by GEL 413.2 million or 20.0% YoY. Foreign currency loans accounted for 74.6% of the total corporate
loan portfolio. The market share for legal entities increased by 2.3% YoY to 36.0% mainly due to newly acquired blue chip
customers.
As of the same date, corporate deposits totalled GEL 2,410.9 million (or GEL 2,297.5 million without the Bank Republic
effect), up by GEL 535.7 million or 28.6% YoY. Foreign currency corporate deposits represented 49.8% of the total
corporate deposit portfolio. Market share stood at 37.9%.
In FY 2017, corporate loan yields and deposit rates stood at 9.5% and 5.2%, respectively. In the same period, the cost of
risk on loans was -1.3%. Negative CoR in 2017 is driven by good performance of the book. In terms of profitability, the
corporate segment's net profit reached GEL 154.2 million, or 42.9% of the Bank's total net income.
MSME Banking
As of 31 December 2017, MSME loans amounted to GEL 1,844.7 million (GEL 1,708.7 million excluding Bank Republic estimated
loan portfolio), up by GEL 228.8 million, or 14.2% YoY. Foreign currency loans accounted for 63.8% of the total MSME
portfolio.
As of the same date, MSME deposits stood at GEL 1,027.7 million (GEL 964.2 million excluding Bank Republic estimated
deposit portfolio), up by GEL 196.1 million or 23.6% YoY. Foreign currency MSME deposits represented 53.7% of the total
MSME deposit portfolio.
In FY 2017, MSME loan yields and deposit rates stood at 10.9% and 1.3% respectively, while the cost of risk on loans was
0.8%. In terms of profitability, net profit for the MSME segment amounted to GEL 95.7 million, or 26.6% of TBC's total net
income.
Consolidated Financial Statements of TBC Bank Group PLC
Consolidated Balance Sheet
In thousands of GEL Dec-17 Dec-16
Cash and cash equivalents 1,431,477 945,180
Due from other banks 39,643 24,725
Mandatory cash balances with the National Bank of Georgia 1,033,818 990,642
Loans and advances to customers 8,325,353 7,133,702
Investment securities available for sale 657,938 430,703
Bonds carried at amortized cost 449,538 372,956
Investments in finance leases 143,837 95,031
Investment properties 79,232 95,615
Current income tax prepayment 19,084 7,430
Deferred income tax asset 2,855 3,511
Other financial assets 146,144 94,627
Other assets 156,651 171,263
Premises and equipment 366,913 314,032
Intangible assets 83,492 60,957
Goodwill 28,657 28,658
Investments in associates 1,277 -
Total assets 12,965,910 10,769,032
Liabilities
Due to credit institutions 2,620,714 2,197,577
Customer accounts 7,816,817 6,454,949
Other financial liabilities 91,753 50,998
Current income tax liability 447 2,577
Debt securities in issue 20,695 23,508
Deferred income tax liability 602 5,646
Provisions for liabilities and charges 13,200 16,026
Other liabilities 84,440 66,739
Subordinated debt 426,788 368,381
Total liabilities 11,075,457 9,186,401
EQUITY
Share capital 1,605 1,581
Share premium 714,651 677,211
Retained earnings 1,246,327 955,173
Group reorganisation reserve (162,167) (162,166)
Share based payment reserve (3,634) 23,327
Revaluation reserve for premises 70,045 70,460
Revaluation reserve for available-for-sale securities 1,730 (3,681)
Cumulative currency translation reserve (7,360) (7,538)
Net assets attributable to owners 1,861,198 1,554,367
Non-controlling interest 29,255 28,264
Total equity 1,890,453 1,582,631
Total liabilities and equity 12,965,910 10,769,032
Consolidated Statement of Profit or Loss and Other Comprehensive Income
In thousands of GEL Y'17 Y'16
Interest income 1,033,939 766,426
Interest expense (429,924) (275,973)
Net interest income 604,015 490,453
Fee and commission income 193,944 142,800
Fee and commission expense (67,983) (52,532)
Net Fee and Commission Income 125,961 90,268
Gross Insurance profit 6,773 256
Gains less losses from trading in foreign currencies 87,099 70,269
Foreign exchange translation gains less losses 4,374 (2,507)
Gains less losses/(losses less gains) from derivative financial instruments (36) (206)
(Losses less gains) / gains less losses from disposal of investment securities available for sale 93 9,293
Share of profit of associates 909 0
Other operating income 31,797 23,236
Other operating non-interest income 124,236 100,085
Provision for loan impairment (93,823) (49,201)
Provision for impairment of investments in finance lease (492) (558)
Provision for/ (recovery of provision) performance guarantees and credit related commitments (153) (771)
Provision for impairment of other financial assets (12,439) (2,855)
Impairment of investment securities available for sale 0 (11)
Operating income after provisions for impairment 754,078 627,667
Staff costs (203,100) (172,221)
Depreciation and amortisation (37,265) (28,082)
Provision for liabilities and charges 2,495 (2,210)
Administrative and other operating expenses (121,530) (109,474)
Operating expenses (359,400) (311,988)
Profit before tax 394,678 315,679
Income tax expense (34,750) (17,420)
Profit for the year 359,928 298,258
Other Comprehensive income:
Items that may be reclassified subsequently to profit or loss:
Revaluation 5,489 522
Gains less losses reclassified to profit or loss upon disposal 0 (11,611)
Income tax recorded directly in other comprehensive income 0 1,649
Exchange differences on translation to presentation currency 181 (948)
Items that will not be reclassified to profit or loss:
Income tax recorded directly in other comprehensive income (422) 10,928
Other comprehensive income for the year 5,248 540
Total comprehensive income for the year 365,176 298,798
Profit attributable to:
- Owners of the Bank 354,410 299,146
- Non-controlling interest 5,518 (887)
Profit for the year 359,928 298,258
Total comprehensive income is attributable to:
- Owners of the Bank 359,585 299,686
- Non-controlling interest 5,591 (887)
Total comprehensive income for the year 365,176 298,798
Consolidated Statements of Cash Flows
In thousands of GEL YE 2017 YE 2016
Cash flows from operating activities
Interest received 1,001,920 735,705
Interest paid (425,454) (273,795)
Fees and commissions received 195,285 144,247
Fees and commissions paid (68,036) (52,154)
Insurance premium received 23,518 1,591
Insurance claims paid (9,127) (703)
Income received from trading in foreign currencies 87,099 70,411
Other operating income received 9,080 8,411
Staff costs paid (187,520) (148,656)
Administrative and other operating expenses paid (112,270) (104,077)
Income tax (paid) / refunded (53,916) (34,279)
Cash flows from operating activities before changes in operating assets and liabilities 460,580 346,701
Net change in operating assets
Due from other banks and mandatory cash balances with the National Bank of Georgia (74,918) (448,582)
Loans and advances to customers (1,341,709) (1,219,501)
Investment in finance lease (46,605) (11,687)
Other financial assets (38,153) (22,965)
Other assets 73,814 (843)
Due to other banks (230,290) 265,679
Customer accounts 1,337,901 1,150,146
Other financial liabilities 18,263 5,724
Other liabilities and provision for liabilities and charges 3,487 332
Net cash from operating activities 162,370 65,004
Cash flows from investing activities
Acquisition of investment securities available for sale (560,226) (143,980)
Proceeds from disposal of investment securities available for sale - 11,868
Proceeds from redemption at maturity of investment securities available for sale 345,748 166,871
Acquisition of subsidiaries - (242,195)
Acquisition of bonds carried at amortised cost (307,248) (304,109)
Proceeds from redemption of bonds carried at amortised cost 242,380 314,231
Acquisition of premises, equipment and intangible assets (114,383) (50,689)
Disposal of premises, equipment and intangible assets 1,933 1,273
Proceeds from disposal of investment property 19,082 7,822
Acquisition of subsidiaries, net of cash acquired (273) 150,791
Net cash used in investing activities (372,988) (88,117)
Cash flows from financing activities
Proceeds from other borrowed funds 1,483,191 903,502
Redemption of other borrowed funds (844,115) (666,156)
Proceeds from subordinated debt 119,859 136,817
Redemption of subordinated debt (59,671) (90,416)
Proceeds from debt securities in issue (0) 4,354
Redemption of debt securities in issue (2,123) (4,636)
Dividends paid (67,927) (54,560)
Issue of ordinary shares 29 (3,495)
Net cash from / (used in) financing activities 629,243 225,410
Effect of exchange rate changes on cash and cash equivalents 67,672 22,536
Net increase / (decrease) in cash and cash equivalents 486,297 224,833
Cash and cash equivalents at the beginning of the year 945,180 720,347
Cash and cash equivalents at the end of the year 1,431,477 945,180
FY 2017 Bank Republic Financial Results Based on Internal Estimates
Bank Republic Profit and Loss
In thousands of GEL FY 2017
Interest income 163,250
Interest expense 52,519
Net interest income 110,731
Card operations (1,430)
Settlement transactions 6,210
Guarantees and letters of credit 2,896
Other (765)
Net fee and commission income 6,911
FX gain/losses 14,113
Other 8,654
Other non-interest income 22,767
Operating income 140,409
Operating expenses 60,775
Staff costs 35,175
Depreciation and amortization 4,702
Administrative and other operating expenses 20,898
Operating profit 80,269
Bank Republic Loan Portfolio
In thousands of GEL as of 31 December 2017
Total gross loans 1,096,158
Retail 714,959
Corporate 245,235
MSME 135,964
Bank Republic Deposit Portfolio
In thousands of GEL as of 31 December 2017
Total deposits 488,855
Retail 311,984
Corporate 113,406
MSME 63,4
Key Ratios
Average Balances
Average balances included in this document are calculated as the average of the relevant monthly balances as of each
month-end. Balances have been extracted from TBC's unaudited and consolidated management accounts prepared from TBC's
accounting records, which were used by the Management for monitoring and control purposes.
Key Ratios
Ratios (based on monthly averages, where applicable) Y'17 Y'16
Underlying ROE1 21.4% 20.6%
Reported ROE2 20.9% 22.4%
Underlying ROA3 3.2% 3.6%
Reported ROA4 3.1% 3.9%
Underlying Cost to Income5 40.5% 42.9%
Reported Cost to Income6 41.7% 45.8%
Cost of Risk7 1.2% 1.0%
NIM8 6.5% 7.8%
Risk Adjusted NIM9 5.1% 6.4%
Loan Yields10 12.1% 13.4%
Risk Adjusted Loan Yields11 10.7% 12.1%
Deposit rates12 3.4% 3.3%
Yields on interest Earning Assets13 11.1% 12.2%
Cost of Funding14 4.5% 4.5%
Spread15 6.6% 7.8%
PAR 90 to Gross Loans16 1.4% 1.3%
NPLs to Gross Loans17 3.3% 3.5%
NPLs coverage per IAS 3918 81.8% 88.4%
NPLs coverage with collateral per IAS 3919 186.5% 222.5%
NPLs coverage per IFRS 920 104.7% N/A
NPLs coverage with collateral per IFRS 921 209.4% N/A
Provision Level to Gross Loans22 2.7% 3.1%
Related Party Loans to Gross Loans23 0.1% 0.1%
Top 10 Borrowers to Total Portfolio24 8.2% 7.6%
Top 20 Borrowers to Total Portfolio25 12.4% 11.3%
Net Loans to Deposits plus IFI Funding26 92.5% 93.4%
Net Stable Funding Ratio27 124.4% 108.4%
Liquidity Coverage Ratio28 113% N/A
Leverage29 6.9x 6.8x
Regulatory Tier 1 CAR (Basel III)30 13.4% N/A
Regulatory Total CAR (Basel III)31 17.5% N/A
Regulatory Tier 1 CAR (Basel II/III)32 10.3%* 10.4%
Regulatory Total CAR (Basel II/III)33 13.5%* 14.2%
Dividend Pay-out ratio34 25.4% 25.2%
*Estimated Basel II/III ratios as of 31 December 2017
Ratio definitions
1. Underlying return on average total equity (ROE) equals underlying net income attributable to owners divided by monthly
average of total shareholders 'equity attributable to the PLC's equity holders for the same period adjusted for the
respective one-off items; Annualized where applicable.
2.Return on average total equity (ROE) equals net income attributable to owners divided by monthly average of total
shareholders 'equity attributable to the PLC's equity holders for the same period; Annualized where applicable.
3. Underlying return on average total assets (ROA) equals underlying net income of the period divided by monthly average
total assets for the same period. Annualised where applicable.
4. Return on average total assets (ROA) equals net income of the period divided by monthly average total assets for the
same period. Annualised where applicable.
5. Underlying cost to income ratio equals total underlying operating expenses for the period divided by the total
underlying revenue for the same period. (Revenue represents the sum of net interest income, net fee and commission income
and other non-interest income).
6. 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).
7. Cost of risk equals provision for loan impairment divided by monthly average gross loans and advances to customers.
Annualized where applicable.
8. 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 corporate shares, net investment in finance
lease, net loans, amount due from credit institutions. The latter excludes all items from cash and cash equivalents,
excludes EUR mandatory reserves with NBG which currently has negative interest, and includes other earning items from due
from banks.
9. Risk Adjusted Net interest margin is NIM minus cost of risk without one -offs and currency effect
10. Loan yields equal interest income on loans and advances to customers divided by monthly average gross loans and
advances to customers. Annualised where applicable.
11. Risk Adjusted Loan yield is loan yield minus cost of risk without one-offs and currency effect
12. Deposit rates equal interest expense on customer accounts divided by monthly average total customer deposits.
Annualised where applicable.
13. Yields on interest earning assets equal total interest income divided by monthly average interest earning assets.
Annualized where applicable.
14. Cost of funding equals total interest expense divided by monthly average interest bearing liabilities. Annualised where
applicable.
15. Spread equals difference between yields on interest earning assets (including but not limited to yields on loans,
securities and due from banks) and cost of funding (including but not limited to cost of deposits, cost on borrowings and
due to banks).
16. 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.
17. NPLs to gross loans equals loans with 90 days past due on principal or interest payments, and loans with 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.
18. NPLs coverage ratio equals total loan loss provision calculated per IAS 39 divided by the NPL loans.
19. NPLs coverage with collateral ratio equals loan loss provision calculated per IAS 39 plus total collateral amount of
NPL loans (excluding third party guarantees) discounted at 30-50% depending on segment type divided by the NPL loans.
20. NPLs coverage ratio equals total loan loss provision calculated per IFRS 9 divided by the NPL loans.
21. NPLs coverage with collateral ratio equals loan loss provision calculated per IFRS 9 plus total collateral amount of
NPL loans (excluding third party guarantees) discounted at 30-50% depending on segment type divided by the NPL loans.
22. Provision level to gross loans equals loan loss provision divided by the gross loan portfolio for the same period.
23. Related party loans to total loans equals related party loans divided by the gross loan portfolio.
24. Top 10 borrowers to total portfolio equals total loan amount of top 10 borrowers divided by the gross loan portfolio.
25. Top 20 borrowers to total portfolio equals total loan amount of top 20 borrowers divided by the gross loan portfolio.
26. Net loans to deposits plus IFI funding ratio equals net loans divided by total deposits plus borrowings received from
international financial institutions.
27. Net stable funding ratio equals available amount of stable funding divided by required amount of stable funding as
defined in Basel III. NSFR ratio for before 2Q 2017 is calculated per updated internal methodology in line with Basel 2014
guidelines.
28. Liquidity coverage ratio equals high-quality liquid assets divided by total net cash outflow amount as defined by NBG.
29. Leverage equals total assets to total equity.
30. Regulatory tier 1 CAR equals tier I capital divided by total risk weighted assets, both calculated in accordance with
the pillar 1 requirements of NBG Basel III standards. The reporting started from the end of 2017. Calculations are made for
TBC Bank stand-alone, based on local standards.
31. Regulatory total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the
pillar 1 requirements of NBG Basel III standards. The reporting started from the end of 2017. Calculations are made for TBC
Bank stand-alone, based on local standards.
32. Regulatory Tier 1 CAR equals Tier I Capital divided by total risk weighted assets, both calculated in accordance with
the NBG Basel II/III requirements.
33. Regulatory Total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the
NBG Basel II/III requirements
34. Dividend pay-out ratio for 2017 is based on 2016 performance. Dividend pay-out ratio for 2016 is based on 2015
performance.
Exchange Rates
To calculate the QoQ growth of Balance Sheet items without the currency exchange rate effect, we used USD/GEL exchange rate
of 2.4767 as of 30 September 2017. For calculations of the YoY growth without the currency exchange rate effect, we used
USD/GEL exchange rate of 2.6468 as of 31 December 2016. The USD/GEL exchange rate as of 31 December 2017 equalled 2.5922.
For P&L items growth calculations without currency effect, we used the average USD/GEL exchange rate for the following
periods: 4Q 2017 of 2.5933, 3Q 2017 of 2.4207, 4Q 2016 of 2.4958.
Additional Disclosures
Subsidiaries of TBC Bank Group PLC 15
Ownership / voting Country Year of acquisition Industry Total Assets
% as of 31 December 2017 (after elimination)
Subsidiary AmountGEL'000 % in TBC Group
TBC Insurance 100.0% Georgia 2016 Insurance 30,959 0.24%
JSC TBC Bank 98.7% Georgia 2016 Banking sector 12,655,524 97.61%
United Financial Corporation JSC 98.7% Georgia 1997 Card processing 7,486 0.06%
TBC Capital LLC 100.0% Georgia 1999 Brokerage 6,173 0.05%
TBC Leasing JSC 99.6% Georgia 2003 Leasing 187,339 1.44%
TBC Kredit LLC 75.0% Azerbaijan 2008 Non-banking credit institution 39,500 0.30%
Banking System Service Company LLC 100.0% Georgia 2009 Information services 561 0.00%
TBC Pay LLC 100.0% Georgia 2009 Processing 36,113 0.28%
Mali LLC 100.0% Georgia 2011 Real estate management 79 0.00%
Real Estate Management Fund JSC 100.0% Georgia 2010 Real estate management 21 0.00%
TBC Invest LLC 100.0% Israel 2011 PR and marketing 122 0.00%
1) Earnings per Share
In GEL 31-Dec-2017 31-Dec-2016
Earnings per share for profit attributable to the owners of the Group:
- Basic earnings per share 6.7 6.0
- Diluted earnings per share 6.6 5.9
Source: IFRS Consolidated
2) Sensitivity Scenario
Sensitivity Scenario 31-Dec-17 10% Currency Devaluation Effect
NIM* -0.1%
Technical Cost of Risk +0.2%
Regulatory Total Capital per new NBG regulation 1,885 1,922
Regulatory Capital adequacy ratios tier 1 and total capital per new NBG regulation decrease by 0.62% - 0.73%
(*) Linear depreciation is assumed for NIM sensitivity analysis
Source: IFRS statements and Management Figures
3) FC details for Selected P/L Items
Selected P&L Items 4Q 2017 FC % of Respective Totals
Interest Income 42%
Interest Expense 50%
Fee and Commission Income 35%
Fee and Commission Expense 63%
Administrative Expenses 27%
Source: IFRS statements and Management figures
4) GEL Refinance Rate and Libor Linked B/S Items 31 December 2017
GEL Refinance Rate Gap GEL -345 m Libor Gap GEL 1,224 m
GEL m % share in totals GEL m % share in totals
Assets 1,786 14% Assets 2,532 20%
Securities with fixed yield(≤1y)* 494 45% Nostro** 399 59%
Securities with floating yield 149 13% NBG Reserves** 1,034 74%
Loans with Floating yield 1,013 12% NBG Deposits 172 12%
Reserves in NBG
- More to follow, for following part double click ID:nRSV6184FdRecent news on TBC Bank
See all newsREG - TBC Bank Group PLC - TBC to announce 1Q 2024 Financial Results
AnnouncementREG - J.P. Morgan Sec PLC - Stabilisation Notice
AnnouncementREG - TBC Bank Group PLC - JSC TBC Bank Prices $300 million AT1 Capital Notes
AnnouncementREG - J.P. Morgan Sec PLC - Stabilisation Notice
AnnouncementREG - TBC Bank Group PLC - Notice of AGM
Announcement