TBC Bank Group PLC on Friday said it benefited from strong rebounding economies in its two operating countries Georgia, which was boosted by tourism and migration, and Uzbekistan.

For the third quarter that ended September 30, the FTSE 250-listed Tbilisi, Georgia-headquartered lender posted a pretax profit of ₾365.1 million, which is around £120.1 million, up 55% from ₾235.1 million a year prior. From the second quarter, it rose 39% from ₾262.6 million.

‘The Georgian economy demonstrated strong growth in the third quarter on the back of a robust rebound in the tourism sector, including the effect of migration, solid exports and remittances. As a result, real gross domestic product grew by 9.7% and 10.2% in the third quarter and nine months of 2022, respectively,’ Chief Executive Officer Vakhtang Butskhrikidze said.

Regarding Uzbekistan, Butskhrikidze said the landlocked country ‘again demonstrated the resilience and solid economic activity with the first nine months and third quarter growth of 5.8% and 6.4%, respectively, adding the firm has ’retained our GDP growth forecast of above 10% for Georgia and upgraded our outlook for Uzbekistan from 5.0% to 5.5%.‘

Net interest income climbed 31% to ₾340.4 million from ₾259.4 million a year ago, and 12% from ₾303.6 million in the second quarter.

However, total credit loss allowance widened to ₾48.3 million from ₾5.1 million a year ago and from ₾37.9 million a quarter ago.

Meanwhile, the Common Equity Tier I Capital adequacy ratio grew to 15.3% at September 30 from 15.0% at June 30.

Looking forward, CEO Butskhrikidze said the bank added two new mid-term targets, namely for Uzbek operations to contribute 10% to 15% of the bank’s net income and to reach seven million active monthly users.

Further, he reiterated the bank’s mid-term targets of a return on average equity above 20%, an annual loan book growth of 10% to 15%, a dividend payout ratio of 25% to 35% and to retain its cost to income ratio guidance below 35%.

TBC Bank shares were 1.0% lower at 2,090.00 pence each in London on Friday morning.

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