REG - TBC Bank Group PLC - Inspection Report Update

TBC BankAnnouncement

21/02/2019 07:05

RNS Number : 6707Q
TBC Bank Group PLC
21 February 2019
 


Inspection Report: Update
 
Further to its announcement of 9 January 2019, TBC Bank Group PLC ("TBC PLC") notes today's release of a joint statement by TBC PLC, TBC Bank JSC ("TBC Bank") and the National Bank of Georgia (the "NBG") in respect of NBG's inspection of certain transactions involving TBC Bank that took place in 2007 and 2008, an English translation of which follows:
"Over the last few days, we have had detailed discussions around events concerning TBC Bank. Regarding this, we would like to announce the following:
Announcement from TBC Bank
Since TBC Bank takes into account the possible damage to the country's investment image and respects the role of the National Bank, as a qualified regulator, and despite the fact that the decisions of the National Bank was appealed in the court, JSC TBC Bank would like to announce that it will implement a restructuring of its Supervisory Board whereby the founding shareholders will not be represented at the supervisory Board of JSC TBC Bank. The founding shareholders will maintain their positions as the Chairman and Deputy Chairman of the Board of Directors of TBC Bank Group PLC (a London-based, 100% shareholder of JSC TBC Bank). TBC Bank withdraws all court cases against the National Bank of Georgia and will pay approximately GEL 1 million, which was previously requested by the NBG and disclosed by TBC PLC on 9 January 2019.
In addition, TBC Bank continues to cooperate with the NBG to further improve the quality of the Bank's corporate governance. In order to prevent any questions from any third party regarding corporate governance, TBC PLC will engage with a reputable international firm to conduct a review of the group's related party transactions, practices and procedures.
Announcement from the National Bank
NBG welcomes this decision. This will have a positive effect on the transparency of the Bank and will increase investor confidence, which will ultimately have a positive effect on the development of the Bank and the country's financial sector.
NBG stresses that TBC Bank is one of the leading financial institutions in the country and in the region and is led by a highly qualified executive management team and independent members of the Supervisory board. TBC Bank is a strong and stable credit institution and fully complies with economic normative requirements and limits set by the National Bank.
Additionally, the NBG would like note that, in this case, its supervisory focus was on the risks associated with matters concerning conflicts of interest and instances of the breaches of the regulation on conflicts of interest related to the 2007-2008 transactions.
Within the scope of its mandate, the NBG continues to monitor the implementation of the abovementioned decisions.
With this, from both sides this matter has been closed."
The content of this announcement and the release of the same has been approved by the NBG.
 
For further enquiries, please contact:
Director of International Media and Investor Relations                                  

Zoltan Szalai                                                                                                               

ir@tbcbank.com.ge
Or
 
Head of Investor Relations
Anna Romelashvili

ir@tbcbank.com.ge
 
About TBC Bank Group PLC ("TBC PLC")
TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG. 
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 38.8% of loans and 41.2% of non-banking deposits as at 31 December 2018, according to data published by the National Bank of Georgia.




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCCKKDBCBKDDBB