REG - TBC Bank Group PLC - Final Results <Origin Href="QuoteRef">TBCG.L</Origin> - Part 4
22/02/2018 07:05
- Part 4: For the preceding part double click ID:nRSV6184Fc
211.14 660.91
Reported total provision expenses (9.67) (53.40)
One- off recovery of previously written of principal 26.22 26.22
One-off currency effect on provisions -16.83 -9.6
Underlying total provision expenses (19.06) (70.01)
Reported operating income after provisions 208.59 627.67
Underlying operating income after provisions 192.08 590.90
Reported Operating expenses (111.78) (311.99)
One-off costs related to premium listing (0.3) (16.2)
One-off costs related to Bank Republic integration (consulting costs) (8.0) (8.0)
One-off costs related to impairment of Intangible Assets of Bank Republic (2.0) (2.0)
One-off costs related to staff redundancy provision related to Bank Republic (2.2) (2.2)
acquisition
Underlying operating expenses (99.28) (283.53)
Reported profit before tax 96.80 315.68
Underlying profit before tax 92.81 307.37
Reported income tax (8.77) (17.42)
One-off tax credit 0 17.87
Effect on tax of one-off items (sum of one-off items is multiplied by income (0.60) (1.25)
tax rate)
Underlying income tax (8.17) (34.05)
Reported net profit 88.03 298.26
Underlying net profit 84.64 273.32
Non controlling interest (NCI) (1.33) (0.89)
Reported net profit less NCI 89.4 299.1
Underlying net profit less NCI 86.0 274.2
4Q 2016 2016
Underlying ROE 23.5% 20.6%
Underlying ROA 3.5% 3.6%
Underlying cost to income 47.0% 42.9%
Underlying NIM 7.5% 7.6%
4Q 2017 2017
Reported Net interest income 165.4 604.5
Reported Net fee and commission income 39.0 126.0
Reported Gross Insurance Profit 1.9 6.8
Reported Other operating income 37.0 124.2
Reported operating income 243.3 861.0
Reported total provision expenses (36.4) (106.9)
Reported operating income after provisions 206.9 754.1
Reported Operating expenses (99.6) (354.4)
One-off costs related to Bank Republic integration (consulting costs) (0.0) (10.9)
Underlying operating expenses (99.6) (348.5)
Reported profit before tax 107.2 394.7
Underlying profit before tax 107.2 405.6
Reported income tax (10.5) (34.7)
Effect on tax of one-off items 0 1.6
Underlying income tax (10.5) (36.4)
Reported net profit 96.8 359.9
Underlying net profit 96.8 369.2
Reported non-controlling interest (NCI) 1.4 5.5
Effect on NCI of one-off items 0.1
Underlying NCI 5.6
Reported net profit less NCI 95.4 354.4
Underlying net profit less NCI 95.4 363.6
4Q 2017 2017
Underlying ROE 21.0% 21.4%
Underlying ROA 3.0% 3.2%
Underlying cost to income 41.0% 40.5%
Underlying NIM 6.4% 6.5%
22) Bank Republic Reconciliation Tables
Please note Bank Republic figures after the merger on May 8, 2017 are based on
internal estimates as described below.
Bank Republic Contribution Assumptions:
To make the YoY analyses more comparable, the Bank has segregated the Bank
Republic contribution after the merger on May 8, 2017, which is based on
direct income and cost attribution calculation and, where not applicable,
based on established allocation rules, appropriate management assumptions, and
estimates.
The management has estimated the Bank Republic contribution effect within the
Group's financial results based on the following rationale:
§ Loan and deposit portfolio as well as the interest income and expense from
these portfolios have been calculated for all Bank Republic's existing clients
with outstanding exposure for the reporting period, as well as for all new
clients attracted through the former branches of Bank Republic
§ For the remaining items of B/S and P&L where the direct attribution is
not practical, the management has used the allocation based on Bank Republic
loan and deposit books contribution to each operating segment
Reported figures for TBC and BR
FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Interest income (TBC) 870,689 728,663 253,005 220,839 205,581
Interest income (BR) 163,250 37,763 35,016 37,413 37,763
Interest income (TBC+BR) 1,033,939 766,426 288,020 258,252 243,344
Interest expense (TBC) (377,404) (262,087) (113,409) (101,628) (75,769)
Interest expense (BR) (52,519) (13,886) (9,217) (10,077) (13,886)
Interest expense (TBC+BR) (429,924) (275,973) (122,626) (111,705) (89,655)
Net interest income (TBC) 493,284 466,576 139,595 119,211 129,811
Net interest income (BR) 110,731 23,877 25,799 27,336 23,877
Net interest income (TBC+BR) 604,015 490,453 165,395 146,546 153,689
Net Fee and Commission Income (TBC) 119,050 88,076 37,403 30,090 26,200
Net Fee and Commission Income (BR) 6,911 2,192 1,551 1,700 2,192
Net Fee and Commission Income (TBC+BR) 125,961 90,268 38,954 31,790 28,392
Other Operating Non-Interest Income (TBC) 108,242 88,358 34,122 24,900 24,189
Other Operating Non-Interest Income (BR) 22,767 11,983 4,847 3,858 11,983
Other Operating Non-Interest Income (TBC+BR) 131,009 100,341 38,968 28,758 36,172
Operating income (TBC) 720,576 643,010 211,120 174,200 180,200
Operating income (BR) 140,409 38,052 32,197 32,894 38,052
Operating income (TBC+BR) 860,985 681,063 243,316 207,094 218,253
Total provisions (TBC) N/A (41,597) N/A N/A 2,131
Total provisions (BR) N/A (11,799) N/A N/A (11,799)
Total provisions (TBC+BR) (106,907) (53,396) (36,435) (27,097) (9,668)
Operating Expenses (TBC) (298,625) (296,686) (84,222) (67,178) (96,483)
Staff costs (167,925) (164,604) (45,120) (36,901) (54,927)
Depreciation and amortisation (32,563) (28,141) (9,378) (8,172) (7,494)
Provision for liabilities and charges 2,495 (2,210) - - (2,210)
Administrative and other operating expenses (100,632) (101,731) (29,724) (22,104) (31,851)
Operating Expenses (BR) (60,775) (15,302) (15,418) (16,733) (15,302)
Staff costs (35,175) (7,617) (8,985) (9,718) (7,617)
Depreciation and amortisation (4,702) 59 (1,047) (1,145) 59
Provision for liabilities and charges - (0) - - (0)
Administrative and other operating expenses (20,898) (7,743) (5,387) (5,869) (7,743)
Operating Expenses (TBC+BR) (359,400) (311,988) (99,640) (83,910) (111,785)
Staff costs (203,100) (172,221) (54,105) (46,620) (62,544)
Depreciation and amortisation (37,265) (28,082) (10,425) (9,317) (7,435)
Provision for liabilities and charges 2,495 (2,210) - - (2,210)
Administrative and other operating expenses (121,530) (109,474) (35,111) (27,974) (39,595)
Income Tax Expense (TBC) N/A (17,146) N/A N/A (8,492)
Income Tax Expense (BR) N/A (275) N/A N/A (275)
Income Tax Expense (TBC+BR) (34,750) (17,420) (10,487) (9,327) (8,767)
Net profit (TBC) N/A 287,581 N/A N/A 77,356
Net profit (BR) N/A 10,677 N/A N/A 10,677
Net Profit (TBC+BR) 359,928 298,258 96,754 86,759 88,034
Underlying figures for TBC and BR
FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Interest income (TBC) 870,689 714,849 253,005 220,839 196,013
Interest income (BR) 163,250 37,763 35,016 37,413 37,763
Interest income (TBC+BR) 1,033,939 752,613 288,020 258,252 233,776
Interest expense (TBC) (377,404) (259,630) (113,409) (101,628) (73,312)
Interest expense (BR) (52,519) (13,886) (9,217) (10,077) (13,886)
Interest expense (TBC+BR) (429,924) (273,516) (122,626) (111,705) (87,199)
Net interest income (TBC) 493,284 455,219 139,595 119,211 122,699
Net interest income (BR) 110,731 23,877 25,799 27,336 23,877
Net interest income (TBC+BR) 604,015 479,096 165,395 146,546 146,577
Net Fee and Commission Income (TBC) 119,050 88,076 37,403 30,090 26,200
Net Fee and Commission Income (BR) 6,911 2,192 1,551 1,700 2,192
Net Fee and Commission Income (TBC+BR) 125,961 90,268 38,954 31,790 28,392
Other Operating Non-Interest Income (TBC) 108,242 79,563 34,122 24,900 24,189
Other Operating Non-Interest Income (BR) 22,767 11,983 4,847 3,858 11,983
Other Operating Non-Interest Income (TBC+BR) 131,009 91,546 38,968 28,758 36,172
Operating income (TBC) 720,576 622,858 211,120 174,200 173,088
Operating income (BR) 140,409 38,052 32,197 32,894 38,052
Operating income (TBC+BR) 860,985 660,911 243,316 207,094 211,142
Total provisions (TBC) N/A (58,219) N/A N/A (7,260)
Total provisions (BR) N/A (11,799) N/A N/A (11,799)
Total provisions (TBC+BR) (106,907) (70,018) (36,435) (27,097) (19,058)
Operating Expenses (TBC) (287,701) (270,249) (84,222) (65,743) (85,999)
Staff costs (164,852) (164,604) (45,120) (36,901) (54,927)
Depreciation and amortisation (32,563) (28,141) (9,378) (8,172) (7,494)
Provision for liabilities and charges 2,495 0 - - 0
Administrative and other operating expenses (92,781) (77,504) (29,724) (20,670) (23,578)
Operating Expenses (BR) (60,775) (13,277) (15,418) (16,733) (13,277)
Staff costs (35,175) (7,617) (8,985) (9,718) (7,617)
Depreciation and amortisation (4,702) 59 (1,047) (1,145) 59
Provision for liabilities and charges - (0) - - (0)
Administrative and other operating expenses (20,898) (5,718) (5,387) (5,869) (5,718)
Operating Expenses (TBC+BR) (348,475) (283,526) (99,640) (82,476) (99,276)
Staff costs (200,027) (172,221) (54,105) (46,620) (62,544)
Depreciation and amortisation (37,265) (28,082) (10,425) (9,317) (7,435)
Provision for liabilities and charges 2,495 - - - -
Administrative and other operating expenses (113,678) (83,223) (35,111) (26,539) (29,297)
Income Tax Expense (TBC) N/A (33,470) N/A N/A (7,589)
Income Tax Expense (BR) N/A (579) N/A N/A (579)
Income Tax Expense (TBC+BR) (36,389) (34,048) (10,487) (9,543) (8,168)
net income (TBC) N/A 260,312 N/A N/A 71,633
net income (BR) N/A 13,006 N/A N/A 13,006
Loan and Deposit portfolios reconciliation
Loans portfolio FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Total gross loans (TBC) 7,457,059 5,911,152 7,457,059 6,496,452 5,911,152
Retail 3,518,195 3,240,585 3,518,195 3,123,195 3,240,585
Corporate 2,230,158 1,789,309 2,230,158 1,797,381 1,789,309
MSME 1,708,707 881,258 1,708,707 1,575,875 881,258
Total gross loans (BR) 1,096,158 1,447,571 1,096,158 1,271,182 1,447,571
Retail 714,959 439,989 714,959 783,864 439,989
Corporate 245,235 272,920 245,235 331,097 272,920
MSME 135,964 734,661 135,964 156,221 734,661
Total gross loans (TBC+BR) 8,553,217 7,358,723 8,553,217 7,767,634 7,358,723
Retail 4,233,153 3,680,575 4,233,153 3,907,059 3,680,575
Corporate 2,475,392 2,062,229 2,475,392 2,128,478 2,062,229
MSME 1,844,671 1,615,919 1,844,671 1,732,096 1,615,919
Deposits portfolio FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Total deposits (TBC) 7,327,962 5,641,123 7,327,962 6,575,429 5,641,123
Retail 4,066,282 3,418,681 4,066,282 3,723,865 3,418,681
Corporate 2,297,455 1,468,771 2,297,455 1,975,245 1,468,771
MSME 964,225 753,671 964,225 876,318 753,671
Total deposits (BR) 488,855 813,826 488,855 521,093 813,826
Retail 311,984 329,470 311,984 291,888 329,470
Corporate 113,406 406,429 113,406 155,518 406,429
MSME 63,464 77,927 63,464 73,687 77,927
Total deposits (TBC+BR) 7,816,817 6,454,949 7,816,817 7,096,522 6,454,949
Retail 4,378,266 3,748,151 4,378,266 4,015,753 3,748,151
Corporate 2,410,862 1,875,200 2,410,862 2,130,763 1,875,200
MSME 1,027,689 831,598 1,027,689 950,005 831,598
1 (#_ftnref1) Excluding one-off items. Detailed information and effects are
given in annex 21 on pages 56-57.
(1) Excluding one-off items. Detailed information and effects are given in
annex 21 on pages 56-57.
2 Market share figures are based on data from the National Bank of Georgia
(NBG). NBG includes interbank loans for calculating market share in loans
3 (#_ftnref3) National Statistics office of Georgia
4 (#_ftnref4) Number of transactions conducted in remote channels divided by
total number of transactions
5 (#_ftnref5) In this context region comprises of Azerbaijan, Armenia and
Georgia
(( 6 (#_ftnref6) ))( )Excluding health insurance, based on internal
estimates
7 (#_ftnref7) The data for the full year is not published yet
8 (#_ftnref8) Initial estimates.
9 (#_ftnref9) Budget spending on salaries and goods and services.
10 (#_ftnref10) Initial estimates.
11 (#_ftnref11) Please refer to page 30 for key ratio definitions
12 (#_ftnref12) Excluding health insurance, based on internal estimates
13 (#_ftnref13) Please refer to page 48 for key ratio definitions
14 (#_ftnref14) Excluding health insurance, based on internal estimates
15 (#_ftnref15) TBC Bank Group PLC became the parent company of JSC TBC Bank
on 10 August 2016
16 (#_ftnref16) Cross-sell ratio is defined as the number of active
products divided by the number of active customers.
17 (#_ftnref17) Market share excluding health insurance; Source: Insurance
State Supervision Service of Georgia. Market share for 4Q'17 is based on
internal estimates
This information is provided by RNS
The company news service from the London Stock Exchange
-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
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 purposesThe 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 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 211.14 660.91
Reported total provision expenses (9.67) (53.40)
One- off recovery of previously written of principal 26.22 26.22
One-off currency effect on provisions -16.83 -9.6
Underlying total provision expenses (19.06) (70.01)
Reported operating income after provisions 208.59 627.67
Underlying operating income after provisions 192.08 590.90
Reported Operating expenses (111.78) (311.99)
One-off costs related to premium listing (0.3) (16.2)
One-off costs related to Bank Republic integration (consulting costs) (8.0) (8.0)
One-off costs related to impairment of Intangible Assets of Bank Republic (2.0) (2.0)
One-off costs related to staff redundancy provision related to Bank Republic acquisition (2.2) (2.2)
Underlying operating expenses (99.28) (283.53)
Reported profit before tax 96.80 315.68
Underlying profit before tax 92.81 307.37
Reported income tax (8.77) (17.42)
One-off tax credit 0 17.87
Effect on tax of one-off items (sum of one-off items is multiplied by income tax rate) (0.60) (1.25)
Underlying income tax (8.17) (34.05)
Reported net profit 88.03 298.26
Underlying net profit 84.64 273.32
Non controlling interest (NCI) (1.33) (0.89)
Reported net profit less NCI 89.4 299.1
Underlying net profit less NCI 86.0 274.2
4Q 2016 2016
Underlying ROE 23.5% 20.6%
Underlying ROA 3.5% 3.6%
Underlying cost to income 47.0% 42.9%
Underlying NIM 7.5% 7.6%
4Q 2017 2017
Reported Net interest income 165.4 604.5
Reported Net fee and commission income 39.0 126.0
Reported Gross Insurance Profit 1.9 6.8
Reported Other operating income 37.0 124.2
Reported operating income 243.3 861.0
Reported total provision expenses (36.4) (106.9)
Reported operating income after provisions 206.9 754.1
Reported Operating expenses (99.6) (354.4)
One-off costs related to Bank Republic integration (consulting costs) (0.0) (10.9)
Underlying operating expenses (99.6) (348.5)
Reported profit before tax 107.2 394.7
Underlying profit before tax 107.2 405.6
Reported income tax (10.5) (34.7)
Effect on tax of one-off items 0 1.6
Underlying income tax (10.5) (36.4)
Reported net profit 96.8 359.9
Underlying net profit 96.8 369.2
Reported non-controlling interest (NCI) 1.4 5.5
Effect on NCI of one-off items 0.1
Underlying NCI 5.6
Reported net profit less NCI 95.4 354.4
Underlying net profit less NCI 95.4 363.6
4Q 2017 2017
Underlying ROE 21.0% 21.4%
Underlying ROA 3.0% 3.2%
Underlying cost to income 41.0% 40.5%
Underlying NIM 6.4% 6.5%
22) Bank Republic Reconciliation Tables
Please note Bank Republic figures after the merger on May 8, 2017 are based on internal estimates as described below.
Bank Republic Contribution Assumptions:
To make the YoY analyses more comparable, the Bank has segregated the Bank Republic contribution after the merger on May 8,
2017, which is based on direct income and cost attribution calculation and, where not applicable, based on established
allocation rules, appropriate management assumptions, and estimates.
The management has estimated the Bank Republic contribution effect within the Group's financial results based on the
following rationale:
§ Loan and deposit portfolio as well as the interest income and expense from these portfolios have been calculated for all
Bank Republic's existing clients with outstanding exposure for the reporting period, as well as for all new clients
attracted through the former branches of Bank Republic
§ For the remaining items of B/S and P&L where the direct attribution is not practical, the management has used the
allocation based on Bank Republic loan and deposit books contribution to each operating segment
Reported figures for TBC and BR
FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Interest income (TBC) 870,689 728,663 253,005 220,839 205,581
Interest income (BR) 163,250 37,763 35,016 37,413 37,763
Interest income (TBC+BR) 1,033,939 766,426 288,020 258,252 243,344
Interest expense (TBC) (377,404) (262,087) (113,409) (101,628) (75,769)
Interest expense (BR) (52,519) (13,886) (9,217) (10,077) (13,886)
Interest expense (TBC+BR) (429,924) (275,973) (122,626) (111,705) (89,655)
Net interest income (TBC) 493,284 466,576 139,595 119,211 129,811
Net interest income (BR) 110,731 23,877 25,799 27,336 23,877
Net interest income (TBC+BR) 604,015 490,453 165,395 146,546 153,689
Net Fee and Commission Income (TBC) 119,050 88,076 37,403 30,090 26,200
Net Fee and Commission Income (BR) 6,911 2,192 1,551 1,700 2,192
Net Fee and Commission Income (TBC+BR) 125,961 90,268 38,954 31,790 28,392
Other Operating Non-Interest Income (TBC) 108,242 88,358 34,122 24,900 24,189
Other Operating Non-Interest Income (BR) 22,767 11,983 4,847 3,858 11,983
Other Operating Non-Interest Income (TBC+BR) 131,009 100,341 38,968 28,758 36,172
Operating income (TBC) 720,576 643,010 211,120 174,200 180,200
Operating income (BR) 140,409 38,052 32,197 32,894 38,052
Operating income (TBC+BR) 860,985 681,063 243,316 207,094 218,253
Total provisions (TBC) N/A (41,597) N/A N/A 2,131
Total provisions (BR) N/A (11,799) N/A N/A (11,799)
Total provisions (TBC+BR) (106,907) (53,396) (36,435) (27,097) (9,668)
Operating Expenses (TBC) (298,625) (296,686) (84,222) (67,178) (96,483)
Staff costs (167,925) (164,604) (45,120) (36,901) (54,927)
Depreciation and amortisation (32,563) (28,141) (9,378) (8,172) (7,494)
Provision for liabilities and charges 2,495 (2,210) - - (2,210)
Administrative and other operating expenses (100,632) (101,731) (29,724) (22,104) (31,851)
Operating Expenses (BR) (60,775) (15,302) (15,418) (16,733) (15,302)
Staff costs (35,175) (7,617) (8,985) (9,718) (7,617)
Depreciation and amortisation (4,702) 59 (1,047) (1,145) 59
Provision for liabilities and charges - (0) - - (0)
Administrative and other operating expenses (20,898) (7,743) (5,387) (5,869) (7,743)
Operating Expenses (TBC+BR) (359,400) (311,988) (99,640) (83,910) (111,785)
Staff costs (203,100) (172,221) (54,105) (46,620) (62,544)
Depreciation and amortisation (37,265) (28,082) (10,425) (9,317) (7,435)
Provision for liabilities and charges 2,495 (2,210) - - (2,210)
Administrative and other operating expenses (121,530) (109,474) (35,111) (27,974) (39,595)
Income Tax Expense (TBC) N/A (17,146) N/A N/A (8,492)
Income Tax Expense (BR) N/A (275) N/A N/A (275)
Income Tax Expense (TBC+BR) (34,750) (17,420) (10,487) (9,327) (8,767)
Net profit (TBC) N/A 287,581 N/A N/A 77,356
Net profit (BR) N/A 10,677 N/A N/A 10,677
Net Profit (TBC+BR) 359,928 298,258 96,754 86,759 88,034
Underlying figures for TBC and BR
FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Interest income (TBC) 870,689 714,849 253,005 220,839 196,013
Interest income (BR) 163,250 37,763 35,016 37,413 37,763
Interest income (TBC+BR) 1,033,939 752,613 288,020 258,252 233,776
Interest expense (TBC) (377,404) (259,630) (113,409) (101,628) (73,312)
Interest expense (BR) (52,519) (13,886) (9,217) (10,077) (13,886)
Interest expense (TBC+BR) (429,924) (273,516) (122,626) (111,705) (87,199)
Net interest income (TBC) 493,284 455,219 139,595 119,211 122,699
Net interest income (BR) 110,731 23,877 25,799 27,336 23,877
Net interest income (TBC+BR) 604,015 479,096 165,395 146,546 146,577
Net Fee and Commission Income (TBC) 119,050 88,076 37,403 30,090 26,200
Net Fee and Commission Income (BR) 6,911 2,192 1,551 1,700 2,192
Net Fee and Commission Income (TBC+BR) 125,961 90,268 38,954 31,790 28,392
Other Operating Non-Interest Income (TBC) 108,242 79,563 34,122 24,900 24,189
Other Operating Non-Interest Income (BR) 22,767 11,983 4,847 3,858 11,983
Other Operating Non-Interest Income (TBC+BR) 131,009 91,546 38,968 28,758 36,172
Operating income (TBC) 720,576 622,858 211,120 174,200 173,088
Operating income (BR) 140,409 38,052 32,197 32,894 38,052
Operating income (TBC+BR) 860,985 660,911 243,316 207,094 211,142
Total provisions (TBC) N/A (58,219) N/A N/A (7,260)
Total provisions (BR) N/A (11,799) N/A N/A (11,799)
Total provisions (TBC+BR) (106,907) (70,018) (36,435) (27,097) (19,058)
Operating Expenses (TBC) (287,701) (270,249) (84,222) (65,743) (85,999)
Staff costs (164,852) (164,604) (45,120) (36,901) (54,927)
Depreciation and amortisation (32,563) (28,141) (9,378) (8,172) (7,494)
Provision for liabilities and charges 2,495 0 - - 0
Administrative and other operating expenses (92,781) (77,504) (29,724) (20,670) (23,578)
Operating Expenses (BR) (60,775) (13,277) (15,418) (16,733) (13,277)
Staff costs (35,175) (7,617) (8,985) (9,718) (7,617)
Depreciation and amortisation (4,702) 59 (1,047) (1,145) 59
Provision for liabilities and charges - (0) - - (0)
Administrative and other operating expenses (20,898) (5,718) (5,387) (5,869) (5,718)
Operating Expenses (TBC+BR) (348,475) (283,526) (99,640) (82,476) (99,276)
Staff costs (200,027) (172,221) (54,105) (46,620) (62,544)
Depreciation and amortisation (37,265) (28,082) (10,425) (9,317) (7,435)
Provision for liabilities and charges 2,495 - - - -
Administrative and other operating expenses (113,678) (83,223) (35,111) (26,539) (29,297)
Income Tax Expense (TBC) N/A (33,470) N/A N/A (7,589)
Income Tax Expense (BR) N/A (579) N/A N/A (579)
Income Tax Expense (TBC+BR) (36,389) (34,048) (10,487) (9,543) (8,168)
net income (TBC) N/A 260,312 N/A N/A 71,633
net income (BR) N/A 13,006 N/A N/A 13,006
Loan and Deposit portfolios reconciliation
Loans portfolio FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Total gross loans (TBC) 7,457,059 5,911,152 7,457,059 6,496,452 5,911,152
Retail 3,518,195 3,240,585 3,518,195 3,123,195 3,240,585
Corporate 2,230,158 1,789,309 2,230,158 1,797,381 1,789,309
MSME 1,708,707 881,258 1,708,707 1,575,875 881,258
Total gross loans (BR) 1,096,158 1,447,571 1,096,158 1,271,182 1,447,571
Retail 714,959 439,989 714,959 783,864 439,989
Corporate 245,235 272,920 245,235 331,097 272,920
MSME 135,964 734,661 135,964 156,221 734,661
Total gross loans (TBC+BR) 8,553,217 7,358,723 8,553,217 7,767,634 7,358,723
Retail 4,233,153 3,680,575 4,233,153 3,907,059 3,680,575
Corporate 2,475,392 2,062,229 2,475,392 2,128,478 2,062,229
MSME 1,844,671 1,615,919 1,844,671 1,732,096 1,615,919
Deposits portfolio FY 2017 FY 2016 4Q 2017 3Q 2017 4Q 2016
Total deposits (TBC) 7,327,962 5,641,123 7,327,962 6,575,429 5,641,123
Retail 4,066,282 3,418,681 4,066,282 3,723,865 3,418,681
Corporate 2,297,455 1,468,771 2,297,455 1,975,245 1,468,771
MSME 964,225 753,671 964,225 876,318 753,671
Total deposits (BR) 488,855 813,826 488,855 521,093 813,826
Retail 311,984 329,470 311,984 291,888 329,470
Corporate 113,406 406,429 113,406 155,518 406,429
MSME 63,464 77,927 63,464 73,687 77,927
Total deposits (TBC+BR) 7,816,817 6,454,949 7,816,817 7,096,522 6,454,949
Retail 4,378,266 3,748,151 4,378,266 4,015,753 3,748,151
Corporate 2,410,862 1,875,200 2,410,862 2,130,763 1,875,200
MSME 1,027,689 831,598 1,027,689 950,005 831,598
1 Excluding one-off items. Detailed information and effects are given in annex 21 on pages 56-57.
1 Excluding one-off items. Detailed information and effects are given in annex 21 on pages 56-57.
2 Market share figures are based on data from the National Bank of Georgia (NBG). NBG includes interbank loans for
calculating market share in loans
3 National Statistics office of Georgia
4 Number of transactions conducted in remote channels divided by total number of transactions
5 In this context region comprises of Azerbaijan, Armenia and Georgia
6 Excluding health insurance, based on internal estimates
7 The data for the full year is not published yet
8 Initial estimates.
9 Budget spending on salaries and goods and services.
10 Initial estimates.
11 Please refer to page 30 for key ratio definitions
12 Excluding health insurance, based on internal estimates
13 Please refer to page 48 for key ratio definitions
14 Excluding health insurance, based on internal estimates
15 TBC Bank Group PLC became the parent company of JSC TBC Bank on 10 August 2016
16 Cross-sell ratio is defined as the number of active products divided by the number of active customers.
17 Market share excluding health insurance; Source: Insurance State Supervision Service of Georgia. Market share for
4Q'17 is based on internal estimates
This information is provided by RNS
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