TBC Bank profits slip in third quarter

(Sharecast News) - TBC Bank Group reported a third-quarter net profit of GEL 300m (£90.14m) on Thursday, marking a 6% year-on-year decrease, with a return on equity (ROE) of 27.6%. The FTSE 250 company said that for the first nine months of 2023, however, its net profit increased 9% year-on-year to GEL 849m, with an ROE of 27.0%.

Net interest income rose 25.7% year-on-year for the quarter, while net fee and commission income grew 21.3%, and other operating non-interest income saw a slight rise of 1.6%.

Operating profit increased 4.3%, while the total credit loss allowance decreased 4.3%.

Operating expenses also increased by 23.7%, resulting in a profit before tax of GEL 350.97m, down 3.9%.

Income tax expenses, however, saw an increase of 14.4%, leading to the profit for the period of GEL 300.49m.

On the balance sheet, TBC Bank reported growth of 8.4% in total assets, a significant increase of 17.3% in gross loans, and a 9.4% rise in customer deposits.

Total equity also showed a healthy increase of 15.3%.

Chief executive officer Vakhtang Butskhrikidze expressed satisfaction with the bank's performance during the quarter, highlighting the growth of TBC's fintech businesses in Uzbekistan, contributing 5% to group earnings.

He also noted the appointment of Oliver Hughes as the head of international operations, aiming to enhance the Uzbekistan operations further.

The economic backdrop in both Georgia and Uzbekistan remained supportive, with strong GDP growth and favourable inflation rates.

TBC Bank reported positive core revenue dynamics, particularly in net interest income, which rose by 26%, and net fee and commission income, which increased by 21%.

The bank's focus on providing digital financial services resulted in impressive growth in digital monthly active users (MAU), reaching 4.5 million at the group level.

TBC Bank maintained strong liquidity and capital positions, with CET1, Tier 1, and Total Capital ratios standing comfortably above regulatory requirements, Vakhtang Butskhrikidze said.

At 0930 GMT, shares in TBC Bank Group were down 0.18% at 2,735p.

Reporting by Josh White for Sharecast.com.