Source - LSE Regulatory
RNS Number : 8426I
TBC Bank Group PLC
10 August 2023
 

 

TBC BANK GROUP PLC ("TBC Bank")

2Q AND 1H 2023 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

 

 

Forward-Looking Statements

 

This document contains forward-looking statements; such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause the actual results, performance or achievements of TBC Bank Group PLC ("the Bank" or "the Group") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Bank's present and future business strategies and the environment in which the Bank will operate in the future. Important factors that, in the view of the Bank, could cause actual results to differ materially from those discussed in the forward-looking statements include, among others: the achievement of anticipated levels of profitability; growth, cost and recent acquisitions; the impact of competitive pricing; the ability to obtain the necessary regulatory approvals and licenses; the impact of developments in the Georgian and Uzbek economies; the impact of COVID-19; the political and legal environment; financial risk management; and the impact of general business and global economic conditions.

 

None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises, nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the document. These forward-looking statements speak only as of the date they are made, and, subject to compliance with applicable law and regulations, the Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the document to reflect actual results, changes in assumptions or changes in factors affecting those statements.

 

Certain financial information contained in this presentation, which is prepared on the basis of the Group's accounting policies applied consistently from year to year, has been extracted from the Group's unaudited management accounts and financial statements. The areas in which the management accounts might differ from the International Financial Reporting Standards and/or generally accepted U.S. accounting principles could be significant; you should consult your own professional advisors and/or conduct your own due diligence for a complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this report have been subjected to rounding adjustments. Accordingly, the numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.

 

 

 

 

2Q and 1H 2023 Consolidated Financial Results Conference Call Details

 

TBC Bank Group PLC ("TBC PLC") published its unaudited consolidated financial results for the second quarter and first half of 2023 on Thursday, 10 August 2023 at 7.00 am BST. The management team will host a conference call on the day at 2.00 pm BST to discuss the results.

 

Please click the link below to join the webinar:

 

https://tbc.zoom.us/j/98092026368?pwd=dW0yME1wc3FzQjlQNHNWN3pqc2FwUT09

 

Webinar ID: 980 9202 6368

Passcode: 525944

 

Other international numbers are available at: https://tbc.zoom.us/u/acM1CxH4j5

 

 

The call will be held in two parts: the first part will comprise presentations, while participants will have the opportunity to ask questions during the second part. All participants will be muted throughout the webinar.

 

 

 

Webinar Instructions:

In order to ask questions, participants joining the webinar should use the "hand icon" visible at the bottom of the screen. The host will unmute those participants who have raised hands one after the other. Once the question is asked, the participant will be muted again. 

 

Call Instructions:

Participants who use the dial-in number to join the webinar should dial *9 to raise their hand.

 

 

 

 

Contacts

 



 

 


Andrew Keeley

Director of Investor Relations and International Media

 

E-mail:  AKeeley@tbcbank.com.ge

Tel:  +44 (0) 7791 569834

Web: www.tbcbankgroup.com

 

 

Anna Romelashvili                                             

Head of Investor Relations

 

 

E-mail:  IR@tbcbank.com.ge 

Tel:  +(995 32) 227 27 27

Web: www.tbcbankgroup.com

 

Investor Relations Department

 

 

 

E-mail:  IR@tbcbank.com.ge 

Tel:  +(995 32) 227 27 27

Web: www.tbcbankgroup.com

 

 

 

Table of Contents

 

2Q and 1H 2023 Unaudited Consolidated Financial Results Announcement

 

Interim Management Report

Financial Highlights 

Operational Highlights 

Letter from the Chief Executive Officer 

Economic Overview 

Unaudited Consolidated Financial Results Overview for 2Q 2023 

Unaudited Consolidated Financial Results Overview for 1H 2023 

 

Additional Disclosures 

1)          TBC Bank - Background 

2)          Consolidated Financial Statements and Key Ratios 2Q 2023 

3)          Consolidated Financial Statements and Key Ratios 1H 2023 

4)          Financial Disclosures by Business Lines 

5)          Market shares in Georgia 

6)          Loan Book Breakdown by Stages According IFRS 9 

7)          Glossary 

8)          Ratio Definitions and Exchange Rates 

 

Material Existing and Emerging Risks 

Statement of Directors' Responsibilities 

 

Condensed Consolidated Interim Financial Statements (Unaudited)

 

Independent Review Report ..…………………………………………………………………....……….………….. 46

Condensed Consolidated Interim Statement of Financial Position……………………………………….….………. 48

Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income…….…...……….. 49

Condensed Consolidated Interim Statement of Changes in Equity……………………....…………………..……… 51

Condensed Consolidated Interim Statement of Cash Flows…………………………………………..……….…….. 52

Notes to the Condensed Consolidated Interim Financial Statements……………………………………………..…. 53

 



 

 

2Q and 1H 2023 Unaudited Consolidated Financial Results

2Q 2023 net profit reached GEL 293 million, up by 25% YoY, with ROE at 28.1%.

1H 2023 net profit stood at GEL 548 million, up by 20% YoY, with ROE at 26.7%.

 

European Union Market Abuse Regulation EU 596/2014 requires TBC Bank Group PLC to disclose that this announcement contains Inside Information, as defined in that Regulation.

The information in this announcement, which was approved by the Board of Directors on 9 August 2023, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2022, which contained an unmodified audit report under Section 495 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.

The interim management report is on pages 5 to 43 and the Condensed Consolidated Interim Financial Statements (Unaudited) are on pages 44 to 96.

 

Financial Highlights

Inome statement

in thousands of GEL

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

1H'23

1H'22

Change YoY

Net interest income

399,338

366,791

303,572

31.5%

8.9%

766,129

592,191

29.4%

Net fee and commission income

105,636

92,438

75,572

39.8%

14.3%

198,074

141,462

40.0%

Other operating non-interest income

81,792

73,010

84,965

-3.7%

12.0%

154,802

143,248

8.1%

Operating profit

586,766

532,239

464,109

26.4%

10.2%

1,119,005

876,901

27.6%

Total credit loss allowance

(33,934)

(53,168)

(37,854)

-10.4%

-36.2%

(87,102)

(51,590)

68.8%

Operating expenses

(203,560)

(182,780)

(163,635)

24.4%

11.4%

(386,340)

(314,585)

22.8%

Profit before tax

349,272

296,291

262,620

33.0%

17.9%

645,563

510,726

26.4%

Income tax expense

(56,186)

(41,331)

(28,056)

NMF

35.9%

(97,517)

(52,181)

86.9%

Profit for the period

293,086

254,960

234,564

24.9%

15.0%

548,046

458,545

19.5%

 

Balance sheet

in thousands of GEL

Jun-23

Mar-23

Jun-22

Change YoY

Change QoQ

Total Assets

28,878,826

27,138,985

25,983,476

11.1%

6.4%

Gross Loans

19,360,689

18,321,341

17,534,515

10.4%

5.7%

Customer Deposits

18,992,492

17,297,630

15,772,905

20.4%

9.8%

Total Equity

4,331,529

4,238,958

3,756,763

15.3%

2.2%

CET 1 Capital (Basel III) per IFRS

3,920,004

3,667,479

n/a

n/a

6.9%

Tier 1 Capital (Basel III) per IFRS

4,443,544

4,179,559

n/a

n/a

6.3%

Total Capital (Basel III) per IFRS

4,947,830

4,601,884

n/a

n/a

7.5%

Risk Weighted Assets (Basel III) per IFRS

21,452,808

20,767,052

n/a

n/a

3.3%

Number of shares (in thousands)

55,140

54,991

55,156

0.0%

0.3%

 

Key Ratios

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

1H'23

1H'22

Change YoY

ROE

28.1%

25.2%

25.7%

2.4 pp

2.9 pp

26.7%

25.9%

0.8 pp

ROE - Georgia FS

27.8%

23.7%

25.1%

2.7 pp

4.1 pp

25.7%

25.4%

0.3 pp

ROA

4.2%

3.6%

3.7%

0.5 pp

0.6 pp

3.9%

3.7%

0.2 pp

ROA - Georgia FS

4.5%

3.8%

3.9%

0.6 pp

0.7 pp

4.1%

4.0%

0.1 pp

NIM

6.8%

6.4%

5.8%

1.0 pp

0.4 pp

6.6%

5.7%

0.9 pp

Cost to income

34.7%

34.3%

35.3%

-0.6 pp

0.4 pp

34.5%

35.9%

-1.4 pp

Cost to income - Georgia FS

30.2%

30.4%

30.3%

-0.1 pp

-0.2 pp

30.3%

30.5%

-0.2 pp

Cost of risk

0.6%

1.1%

0.9%

-0.3 pp

-0.5 pp

0.9%

0.6%

0.3 pp

NPL to gross loans

2.1%

2.2%

2.3%

-0.2 pp

-0.1 pp

2.1%

2.3%

-0.2 pp

NPL provision coverage ratio

89.3%

92.9%

99.8%

-10.5 pp

-3.6 pp

89.3%

99.8%

-10.5 pp

Total NPL coverage ratio

153.7%

154.8%

167.5%

-13.8 pp

-1.1 pp

153.7%

167.5%

-13.8 pp

CET 1 CAR (Basel III) per IFRS

18.3%

17.7%

n/a

n/a

0.6 pp

18.3%

n/a

n/a

Tier 1 CAR (Basel III) per IFRS

20.7%

20.1%

n/a

n/a

0.6 pp

20.7%

n/a

n/a

Total CAR (Basel III) per IFRS

23.1%

22.2%

n/a

n/a

0.9 pp

23.1%

n/a

n/a

Leverage (Times)

6.7x

6.4x

6.9x

-0.2x

0.3x

6.7x

6.9x

-0.2x

EPS (GEL)

5.33

4.57

4.26

25.1%

16.6%

9.90

8.37

18.3%

Diluted EPS (GEL)

5.25

4.50

4.14

26.8%

16.7%

9.76

8.13

20.0%

BVPS (GEL)

78.21

75.91

67.61

15.7%

3.0%

78.21

67.61

15.7%

Georgia FS refers to Georgian financial services.

For the ratio definitions please refer to appendix 8.

Operational Highlights

Customer base

In millions 

Jun'23

Mar'23

Jun'22

Change YoY

Change QoQ

Total number of registered users

16.1

14.8

11.4

41%

9%

  Georgia

3.2

3.1

2.9

10%

3%

  Uzbekistan

12.9

11.7

8.5

52%

10%

Total MAU

5.1

5.1

3.7

38%

0%

   Georgia

1.6

1.5

1.4

14%

7%

   Uzbekistan

3.5

3.6

2.3

52%

-3%

Digital customers

 In thousands

Jun'23

Mar'23

Jun'22

Change YoY

Change QoQ

Digital DAU Georgia

381

368

311

23%

4%

Digital MAU Georgia

849

829

704

21%

2%

Digital DAU/MAU Georgia

45%

44%

44%

1 pp

1 pp

Digital DAU Group

1,434

1,401

1,032

39%

2%

Digital MAU Group

4,295

4,432

2,959

45%

-3%

Digital DAU/MAU Group

33%

32%

35%

 -2 pp

 1 pp

Uzbekistan - key highlights

In thousands of GEL

Jun'23

Mar'23

Jun'22

Change YoY

Change QoQ

Gross loans

526,843

407,993

181,345

NMF

29.1%

Customer accounts

457,340

374,429

235,780

94.0%

22.1%

 

 

2Q'23

1Q'23

Change QoQ

1H'23

Net profit (GEL, thousands)

12,505

12,707

-1.6%

25,212

ROE

22.1%

28.1%

-6.0 pp

25.1%

Georgian and Uzbek payments businesses 

In millions of GEL

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

1H'23

1H'22

Change YoY

Net revenue - Georgia

71.0

61.1

50.7

40.0%

16.2%

132.1

94.0

40.5%

Net revenue - Uzbekistan

16.8

16.5

12.0

40.0%

1.8%

33.3

21.5

54.9%

TNET - digital lifestyle platform in Georgia

In millions

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

1H'23

1H'22

Change YoY

Gross merchandise value (GMV, GEL)

52.8

30.4

28.1

87.9%

73.7%

83.2

42.9

93.9%

Number of transactions

4.2

3.4

3.0

40.0%

23.5%

7.6

5.9

28.8%

 


 

Letter from the Chief Executive Officer[1]

I am delighted to report that 2Q 2023 has seen further progress on the strong start to the year that we achieved in 1Q 2023, giving us a very strong first half of the year.  Our net profit amounted to GEL 293 million, up by 25% year-on-year, while our return on equity stood at 28.1%. For 1H 2023, our net profit stood at GEL 548 million, up by 20% year-on-year, with return on equity reaching 26.7%. I am proud to see that our fintech businesses in Uzbekistan are not only growing rapidly, but are also profitable, already accounting for almost 5% of the Group's profit in 1H 2023.

 

In light of our consistently strong business performance, I am pleased to report that the Board has declared an interim dividend of GEL 2.55 per share, payable in October 2022.

Updated mid-term targets

While we are pleased with the progress we are making on a number of fronts, we believe it is important to keep pushing ourselves to achieve more as we both grow our customer base and help our customers transact more, both in Georgia and Uzbekistan. As such, we have revisited and updated our mid-term guidance, providing a set of targets for 2023-25 for both the Group as a whole and our Uzbekistan operations. More details are provided later in my letter, but these include a target of above GEL1.5 billion net profit for the group in 2025, with ROE of above 23%, and at least GEL 200 million net profit and 80% loan growth in Uzbekistan.

We remain committed to combining profitable growth with returning capital to shareholders as appropriate, while continuing to invest in growth. Therefore, we are maintaining our dividend payout range at 25 to 35%.

 

This is an ambitious set of targets, but one that I personally feel confident that my excellent team at TBC can meet and, hopefully, beat.

 

I would also like to draw your attention to our improved disclosure in our financial statements and supplementary data, as we now provide full profit and loss and balance sheet split by our Georgian financial services, Uzbekistan and other businesses. We hope this will help enable investors and analysts to better model the key pillars of our business.

 

Economic growth remains robust, Georgian rate cuts have begun

Having expanded by 7.7% in 1Q 2023, the Georgian economy has continued to show robust growth, with an annual growth rate of 7.4% in 2Q 2023. This growth appears to be broad-based, notably with a material contribution from IT service exports. At the same time, annual headline inflation decreased to 0.3% in July, while the NBG remained hawkish throughout 2023 and delivered only a 0.5 pp cut from 11% in May and 0.25 pp in August.

 

Uzbekistan's economic performance also remains strong, with 5.7% GDP growth in the 2Q 2023 and 5.6% in the first half of 2023.

 

Strong financial and operating performance continued in 2Q 2023

In 2Q 2023, our operating income amounted to GEL 587 million, up by 26% year-on-year, driven by both interest and non-interest income. The growth in net interest income was led by an increase in net interest margin, up by 1.0 pp year-on-year to 6.8% in 2Q 2023, as well as loan book expansion of 10%. Over the same period, net fee and commission income increased by 40% year-on-year, mainly led by our payments business, while a slight decrease in other operating income was related to the normalization of FX gains.  Importantly, our positive operating jaws translated into a lower cost to income ratio of 34.7%, down by 0.6 pp year-on-year.

 

In terms of balance sheet growth, our gross loan book increased by 10% year-on -year, or by 16% in constant currency terms, with Uzbekistan accounting for 19% of the growth. Over the same period, customer deposits increased by 20%, or by 28% in constant currency terms, with a 7% contribution from Uzbekistan.

 

Our liquidity and capital positions remain strong. As of 30 June 2023, our CET1, Tier 1 and Total Capital ratios[2] stood at 18.3%, 20.7% and 23.1%, respectively, and remained comfortably above the minimum regulatory requirements by 3.9 pp, 3.9 pp and 3.2 pp, correspondingly. At the same time, we continued to operate with a high liquidity buffer, with our net stable funding (NSFR)2 and liquidity coverage (LCR)2 ratios standing at 130% and 125%, respectively.

 

Our key operational metrics also demonstrated good results. Our customer base continued to grow across the group, with retail monthly active users (MAU) reaching 5.1 million by the end of June 2023, out of which our Uzbek customers accounted for around 70%, compared to 3.7 million a year ago. At the same time, the number of digital MAU reached 4.3 million at the Group level, up by 45% year-on-year, driven by our fully digital Uzbek operations. This resulted in a group DAU/MAU ratio of 33% as of June 2023, while the DAU/MAU ratio for the Georgian business stood at 45%.  

 

Dynamic growth in our Uzbek business

In 2Q 2023, our Uzbek fintech businesses (TBC UZ and Payme) continued to generate positive returns with their combined net profit amounting to GEL 12.5 million for 2Q 2023, while return on equity stood at 22.1%. The net profit for 1H 2023 stood at GEL 25.2 million and return on equity was 25.1%. This was driven by net interest income, led by a strong expansion of TBC UZ's retail loan book, and net fee and commission income, related to the growth in payments transaction volumes of Payme.

 

At the end of 2Q 2023, TBC UZ retail loans amounted to GEL 527 million, up by 29% quarter-on-quarter, which translated into an unsecured consumer / micro loan market share[3] of 12.1%. At the same time, retail deposits reached GEL 457 million, up by 22% quarter-on-quarter, accounting for 2.6% of the retail deposit market share3. Meanwhile, in 2Q 2023, Payme's payments volumes rose by more than 40% year-on-year, reaching GEL 2.4 billion.

I would also like to highlight that the acquisition of the remaining 49% minority share in our Uzbek payments subsidiary, Payme, in May 2023 was an important milestone for our expansion strategy in Uzbekistan. This will allow us to capture the strong synergy potential between our payments business and our digital bank, TBC UZ, by leveraging our large user base and diverse product range.

 

Our digital ecosystem, TNET, demonstrated outstanding results

Our digital ecosystem, TNET, achieved strong growth in 2Q 2023 with gross merchandise value (GMV) reaching GEL 53 million up by 88% year-on-year and 74% quarter-on-quarter. This was driven by several business initiatives, mainly in lifestyle and e-commerce. 

 

Looking ahead - updated mid-term guidance

Our strong financial results, supported by the rapid growth of our fintechs in Uzbekistan, leaves me confident that we can continue to achieve superior results for our stakeholders. Therefore, I would like to present our updated mid-term targets for 2023-2025.

·      For the Group:

Digital monthly active users of more than 7 mln

Net profit CAGR of more than 15% to above GEL 1.5 bln

ROE of above 23%

Dividend pay-out ratio of 25%-35%

TNET GMV of above GEL 500 mln.

·      For Uzbekistan

Digital monthly active users of more than 5 mln

Net profit of above GEL 200 mln

Loan book CAGR of at least 80%.

 

Both myself and the whole TBC team remain firmly committed to delivering the best possible services for our customers and meeting our ambitious business targets for the group over the next 2-3 years.


 

Economic Overview

Georgia

Economic growth

Even though Georgia's economic expansion moderated somewhat after reaching 10.1% in 2022, the growth in the first half of 2023 was still very strong, with real GDP increasing by 7.7% in 1Q YoY and by 7.4% in 2Q, with an average of 7.6% in the first two quarters, according to Geostat's estimates.

External sector

The sustained negative impact of lower international commodity prices on both exports and imports noticeably affected external sector activity in 2Q 2023. Specifically, exports and imports growth moderated to 14.8% and 11.8% YoY, respectively. However, when assessing the half year dynamics, external trade remained elevated with a 19.3% YoY increase in exports and a 20.4% increase in imports in the first six months. Importantly, these commodity price dynamics particularly affected domestic commodity exports, while re-exports continued to perform strongly. At the same time, the share of IT services in Georgian exports increased notably, with migrants arriving over the past year being a major driver. On the imports side, investment goods constituted a considerable share of imports, indicating positive investment sentiment. The terms of trade remained broadly stable, supporting economic growth and the GEL.

Given last year's high base effect, which was caused by the high level of immigration in 2022, the annual growth of tourism inflows adjusted for the migration impact by the NBG normalized to 34.8% in 2Q 2023, while the figure for the half year was 57.9%. At the same time, while the share of conventional tourism in total inflows has increased lately, TBC Capital estimates that the YoY growth of tourism inflows in January-June 2023, including the expenses of migrants counted as residents by the NBG, was 81.8%. Remittances also maintained a positive momentum after adjustment for Russia, expanding by 42.7%[4] YoY in 2Q and by 22.0% in the first six months of 2023. FDIs slowed down in 1Q 2023 and decreased by 13.7% YoY, although the inflow remains strong considering the record-high level of investments last year.

Fiscal stimulus

The fiscal stimulus, although still sizable, negatively affected growth in 2021 as the deficit amounted to around 6.3% of GDP, after an expansionary 9.3% of GDP in 2020. In 2022, the deficit was even lower, at 2.5%. According to the Ministry of Finance, fiscal consolidation is expected to take place in the coming years with deficit-to-GDP ratios of 2.8% and 2.3% in 2023 and 2024, respectively.

Credit growth

As of June 2023, bank credit increased by 13.5% YoY, against 13.8% growth at the end of 1Q 2023, at constant exchange rates[5]. Amid further moderation in inflation, real credit growth strengthened from 8.3% YoY in March 2023 to 12.9% at the end of June 2023.

Inflation, monetary policy, and the exchange rate

Due to continued robust inflows, the US$/GEL exchange rate continued to perform strongly in 2Q 2023, although this trend was affected by shifts in the US$/GEL exchange rate expectations, likely driven by low inflation and the possibility of rate cuts, triggering deposit conversions from GEL to other currencies and a minor depreciation from 2.56 in March to 2.64 at the end of July.

As a result of a stronger GEL and disinflationary pass-through from international markets, CPI inflation continued to decline from 5.3% in March to 0.3% in July 2023. While the import component caused headline inflation to cool down significantly, service inflation remained relatively rigid. The NBG remained hawkish throughout 2023 and delivered only a 0.5 pp cut from 11% in May and 0.25 pp in August. The NBG also accumulated a substantial amount of reserves with a net purchase of US$ 1,058 million on the FX market in January-June 2023, taking total gross international reserves to US$ 5.1 billion.

Uzbekistan

Uzbekistan also demonstrated solid economic activity with 5.7%[6] growth in the second quarter and 5.6% in the first half of 2023. External trade was strong as exports of goods increased by 18.6% and imports by 18.9% YoY in the same period6. Retail loan portfolio grew by 54.7% YoY at the end of May, with mortgage loans expanding by 26.7% and non-mortgage loans by 83.9%[7]. As in Georgia, inflation and the central bank policy rate also declined in Uzbekistan, from 12.3% and 15.0% in December 2022 to 9.0% and 14.0% in June 2023, respectively7. The US$/UZS continued its slight depreciation trend, standing at 11600.2 at the end of July 20237. While depreciating against the US$, in terms of REER the UZS gained value against Uzbekistan's main trade partners' currencies.

Going forward

After two, successive years of double-digit growth in Georgia, recent trends indicate that economic activity should moderate somewhat but remain strong in 2023, with the IMF and the NBG projecting growth of 6% and 5%, respectively, while TBC Capital's baseline stands at 7.2%. As for Uzbekistan, the consensus projection appears to be around 5.1%.

More information on the Georgian economy and financial sector can be found at www.tbccapital.ge.

 

Unaudited Consolidated Financial Results Overview for 2Q 2023

This statement provides a summary of the unaudited business and financial trends for 2Q 2023 for TBC Bank Group plc and its subsidiaries. The quarterly financial information and trends are unaudited.

TBC Bank Group PLC's financial results have been prepared in accordance with the UK-adopted International Accounting Standard (IAS) 34 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the Financial Conduct Authority (FCA).

Total assets and total liabilities for 31-Mar-2023 were restated due to replacement of IFRS4 with IFRS17. For more details, please refer to Note 2.

Please note that there might be slight differences in previous periods' figures due to rounding.

Net Interest Income

In 2Q 2023, net interest income amounted to GEL 399.3 million, up by 31.5% and 8.9% on a YoY and QoQ basis, respectively.

The YoY rise in interest income of GEL 159.1 million, or 28.8%, was mostly attributable to an increase in interest income from loans related to a rise in the respective yield by 1.6 pp, as well as an increase in the loan portfolio of GEL 1,826.2 million, or 10.4%.

The QoQ increase in interest income of GEL 39.7 million, or 5.9%, was mainly related to an increase in interest income from loans related to a 0.4 pp rise in the respective loan yield, as well as an increase in the loan portfolio of GEL 1,039.3 million, or 5.7%.

Interest expense increased by GEL 63.3 million, or 25.4%, on a YoY basis, mainly related to an increase in the deposit portfolio of GEL 3,219.6 million, or 20.4%, and a 1.2 pp growth in deposit costs.

On a QoQ basis, interest expense increased by GEL 7.1 million, or 2.3%, primarily driven by the increased portfolio in 2Q 2023 by GEL 1,694.9 million or 9.8%, while deposit cost remained stable.

In 2Q 2023, our NIM stood at 6.8%, up by 1.0 pp and 0.4 pp on YoY and QoQ basis, respectively.

In thousands of GEL

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Interest income

711,820

672,150

552,719

28.8%

5.9%

Interest expense*

(312,482)

(305,359)

(249,147)

25.4%

2.3%

Net interest income

399,338

366,791

303,572

31.5%

8.9%


 

 

 

 

 

NIM

6.8%

6.4%

5.8%

1.0 pp

0.4 pp

* Interest expense includes net interest gains from currency swaps

 

Non-Interest Income

In 2Q 2023, total non-interest income increased by 16.8% and 13.3% on a YoY and QoQ basis, respectively, amounting to GEL 187.4 million.

Net fee and commission income increased by 39.8% and 14.3% on a YoY and QoQ basis, respectively. The increase was mainly related to increased payments transactions. In 2Q 2023, our Uzbek business contributed around 18% to the Group's net fee & commission income.

In 2Q 2023, net gains from FX operations decreased by 8.1% on a YoY basis, which was mainly related to a high base of 2Q 2022, while on a QoQ basis they remained broadly stable.

In thousands of GEL

Non-interest income

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Net fee and commission income

105,636

92,438

75,572

39.8%

14.3%

Net gains from currency derivatives, foreign currency operations and translation

61,127

60,601

66,520

-8.1%

0.9%

Insurance profit

6,184

6,218

6,698

-7.7%

-0.5%

Other operating income

14,481

6,191

11,747

23.3%

NMF

Total other non-interest income

187,428

165,448

160,537

16.8%

13.3%

 

Credit Loss Allowance

Credit loss allowance for loans in 2Q 2023 amounted to GEL 29.4 million. In 2Q 2023, cost of risk stood at 0.6%.

In thousands of GEL

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Credit loss allowance for loans to customers

(29,384)

(50,040)

(39,025)

-24.7%

-41.3%

Credit loss allowance for other transactions

(4,550)

(3,128)

1,171

NMF

45.5%

Total credit loss allowance

(33,934)

(53,168)

(37,854)

-10.4%

-36.2%

Operating profit after expected credit losses and non-financial asset impairment losses

552,832

479,071

426,255

29.7%

15.4%


 

 

 



Cost of risk

0.6%

1.1%

0.9%

-0.3 pp

-0.5 pp

 

Operating Expenses

In 2Q 2023, our operating expenses expanded by 24.4% and 11.4% on a YoY and QoQ basis, respectively.

Both the YoY and QoQ increases were mainly driven by an overall expansion of business in 2Q 2023. Importantly, our investments in the business are driving higher revenues, and our cost to income ratio declined to 34.7%, while our Georgian financial services' cost to income stood at 30.2%.

In thousands of GEL

Operating expenses

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Staff costs

(108,724)

(103,426)

(90,332)

20.4%

5.1%

(Allowance)/recovery of provision for liabilities and charges

(50)

(71)

4

NMF

-29.6%

Depreciation and amortisation

(29,587)

(28,361)

(24,321)

21.7%

4.3%

Administrative and other operating expenses

(65,199)

(50,922)

(48,986)

33.1%

28.0%

Total operating expenses

(203,560)

(182,780)

(163,635)

24.4%

11.4%






 

Cost to income

34.7%

34.3%

35.3%

-0.6 pp

0.4 pp

Georgian financial services' cost to income

30.2%

30.4%

30.3%

-0.1 pp

-0.2 pp

 

Net Profit

Our net profit increased by 24.9% and 15.0% on a YoY and QoQ basis, respectively, and amounted to GEL 293.1 million, driven by robust income generation across the board, as well as strong asset quality.

The growth in effective tax rate YoY is related to the changes in tax legislation effective from 1 January 2023, according to which, the corporate income tax rate for banks increased from 15% to 20% and the potential shift to Estonian Tax Model was abolished.

As a result, in 2Q 2023 our ROE stood at 28.1%, while our ROA reached 4.2%.

 In thousands of GEL

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Profit before tax

349,272

296,291

262,620

33.0%

17.9%

Income tax expense

(56,186)

(41,331)

(28,056)

NMF

35.9%

Profit for the period

293,086

254,960

234,564

24.9%

15.0%

Effective tax rate

16%

14%

11%

5 pp

2 pp






 

ROE

28.1%

25.2%

25.7%

2.4 pp

2.9 pp

Georgian financial services' ROE

27.8%

23.7%

25.1%

2.7 pp

4.1 pp

ROA

4.2%

3.6%

3.7%

0.5 pp

0.6 pp

Georgian financial services' ROA

4.5%

3.7%

3.9%

0.6 pp

0.8 pp

 

Funding and Liquidity

As of 30 June 2023, the total liquidity coverage ratio (LCR), as defined by the NBG, was 124.5%, above the 100% limit, while the LCR in GEL and FC stood at 130.4% and 119.2%, accordingly, above the respective limits of 75% and 100%.

Over the same period, the net stable funding ratio (NSFR), as defined by the NBG, stood at 129.8%, compared to the regulatory limit of 100%.

 

Jun'23

Mar'23

Change QoQ

Minimum net stable funding ratio, as defined by the NBG

100.0%

100.0%

0.0 pp

Net stable funding ratio as defined by the NBG*

129.8%

131.3%

-1.5 pp

 




Net loans to deposits + IFI funding

90.6%

92.9%

-2.3 pp

Leverage (Times)

6.7x

6.4x

0.3x

 




Minimum total liquidity coverage ratio, as defined by the NBG

100.0%

100.0%

0.0 pp

Minimum LCR in GEL, as defined by the NBG

75.0%

75.0%

0.0 pp

Minimum LCR in FC, as defined by the NBG

100.0%

100.0%

0.0 pp

 




Total liquidity coverage ratio, as defined by the NBG*

124.5%

135.7%

-11.2 pp

LCR in GEL, as defined by the NBG*

130.4%

164.2%

-33.8 pp

LCR in FC, as defined by the NBG*

119.2%

116.5%

2.7 pp

* Ratios are calculated per IFRS

Regulatory Capital for Georgian Bank

As of 30 June 2023, our CET1, Tier 1 and Total Capital ratios stood at 18.3%, 20.7% and 23.1%, respectively, and remained above the minimum regulatory requirements by 3.9 pp, 3.9 pp and 3.2 pp, accordingly, per IFRS.

The QoQ increases in all CET1, Tier 1 and Total capital adequacy ratios were mainly driven by strong net profit generation, which was partially offset by loan book growth.

In thousands of GEL

Jun'23

Mar'23

Change QoQ

CET 1 Capital

3,920,004

3,667,479

6.9%

Tier 1 Capital

4,443,544

4,179,559

6.3%

Total Capital

4,947,830

4,601,884

7.5%

Total Risk-weighted Exposures

21,452,808

20,767,052

3.3%

 




Minimum CET 1 ratio

14.4%

14.3%

0.1 pp

CET 1 Capital adequacy ratio

18.3%

17.7%

0.6 pp

 




Minimum Tier 1 ratio

16.8%

16.7%

0.1 pp

Tier 1 Capital adequacy ratio

20.7%

20.1%

0.6 pp

 




Minimum total capital adequacy ratio

19.9%

19.7%

0.2 pp

Total Capital adequacy ratio

23.1%

22.2%

0.9 pp

Ratios and numbers are calculated per IFRS

Loan Portfolio

As of 30 June 2023, the gross loan portfolio reached GEL 19,360.7 million, up by 5.7% QoQ, or by 4.4% on a constant currency basis.

By the end of June 2023, our Georgian financial services portfolio increased by 5.1% on a QoQ basis and reached GEL 18,816.1 million, with 3.9% growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 29.1% and stood at GEL 526.8 million, which translated into growth of 27.4% on a constant currency basis.

In thousands of GEL

Gross loans and advances to customers

Jun'23

Mar'23

Change QoQ

Georgian financial services (Georgia FS)

18,816,052

17,896,929

5.1%

Retail Georgia

6,945,911

6,739,925

3.1%

GEL

4,549,932

4,421,734

2.9%

FC

2,395,979

2,318,191

3.4%

CIB Georgia

6,920,263

6,493,610

6.6%

GEL

2,321,704

2,371,886

-2.1%

FC

4,598,559

4,121,724

11.6%

MSME Georgia

4,949,878

4,663,394

6.1%

GEL

2,675,925

2,577,034

3.8%

FC

2,273,953

2,086,360

9.0%

Uzbekistan

526,843

407,993

29.1%

UZS

526,843

407,993

29.1%

Total gross loans and advances to customers*

19,360,689

18,321,341

5.7%

* Total gross loans and advances to customers include Azerbaijan loan portfolio


2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Loan yields

12.8%

12.4%

11.2%

1.6 pp

0.4 pp

GEL

15.4%

14.9%

15.7%

-0.3 pp

0.5 pp

FC

8.4%

8.2%

6.6%

1.8 pp

0.2 pp

UZS

43.0%

43.6%

42.4%

0.6 pp

-0.6 pp

Georgia FS

12.0%

11.7%

10.9%

1.1 pp

0.3 pp

GEL

15.4%

14.9%

15.7%

-0.3 pp

0.5 pp

FC

8.4%

8.2%

6.6%

1.8 pp

0.2 pp

Uzbekistan

43.0%

43.6%

42.4%

0.6 pp

-0.6 pp

UZS

43.0%

43.6%

42.4%

0.6 pp

-0.6 pp

Total loan yields*

12.8%

12.4%

11.2%

1.6 pp

0.4 pp

* Total loans yields include Azerbaijan


Loan Portfolio Quality

Total PAR 90 and NPL to gross loans slightly improved on the Group level, mainly driven by retail Georgia sub-segment.

PAR 90

Jun'23

Mar'23

Change QoQ

Georgia FS

1.1%

1.2%

-0.1 pp

Retail Georgia

0.9%

1.1%

-0.2 pp

CIB Georgia

0.6%

0.8%

-0.2 pp

MSME Georgia

2.3%

2.2%

0.1 pp

Uzbekistan

2.2%

2.0%

0.2 pp

Total PAR 90*

1.2%

1.3%

-0.1 pp

* Total PAR 90 includes Azerbaijan

In thousands of GEL
Non-performing Loans (NPL)

Jun'23

Mar'23

Change QoQ

Georgia FS

387,626

386,474

0.3%

Retail Georgia

127,833

138,234

-7.5%

CIB Georgia

98,374

88,830

10.7%

MSME Georgia

161,419

159,410

1.3%

Uzbekistan

11,646

8,176

42.4%

Total non-performing loans*

400,989

396,433

1.1%

* Total non-performing loans include Azerbaijan NPLs

NPL to gross loans

Jun'23

Mar'23

Change QoQ

Georgia FS

2.1%

2.2%

-0.1 pp

Retail Georgia

1.8%

2.1%

-0.3 pp

CIB Georgia

1.4%

1.4%

0.0 pp

MSME Georgia

3.3%

3.4%

-0.1 pp

Uzbekistan

2.2%

2.0%

0.2 pp

Total NPL to gross loans*

2.1%

2.2%

-0.1 pp

* Total NPL to gross loans include Azerbaijan NPLs

NPL Coverage

Jun'23

Mar'23


Provision Coverage

Total Coverage**

Provision Coverage

Total Coverage**

Georgia FS

85.3%

150.9%

89.7%

152.1%

Retail Georgia

141.8%

192.4%

143.3%

188.1%

CIB Georgia

49.4%

110.5%

51.5%

114.6%

MSME Georgia

62.6%

142.7%

64.6%

140.9%

Uzbekistan

180.0%

180.0%

189.7%

189.7%

Total NPL coverage*

89.3%

153.7%

92.9%

154.8%


* Total NPL coverage include Azerbaijan loans coverage
** Total NPL coverage ratio includes provision and collateral coverage

Cost of Risk

In terms of cost of risk (CoR), the strong performance in 2Q 2023 was mainly driven by improved actual and estimated macroeconomic parameters in Georgia, which was also reflected in the strong performance of the loan book.

Our Uzbekistan business contributed 0.1 pp to the total CoR. In Uzbekistan, CoR was broadly stable on a YoY basis, while the QoQ increase was driven by the higher portfolio growth compared to 1Q 2023.

Cost of risk (CoR)

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

Georgia FS

0.5%

1.0%

0.9%

-0.4 pp

-0.5 pp

Retail Georgia

0.5%

1.4%

2.4%

-1.9 pp

-0.9 pp

CIB Georgia

0.2%

-0.1%

-0.1%

0.3 pp

0.3 pp

MSME Georgia

0.9%

2.1%

0.1%

0.8 pp

-1.2 pp

Uzbekistan

6.6%

5.6%

6.3%

0.3 pp

1.0 pp

Total cost of risk*

0.6%

1.1%

0.9%

-0.3 pp

-0.5 pp

* Total cost of risk includes Azerbaijan CoR

Deposit Portfolio

The total deposit portfolio amounted to GEL 18,992.5 million, up by 9.8% QoQ or by 8.5% on a constant currency basis.

As of 30 June 2023, the Georgian financial services portfolio increased by 9.9% on a QoQ basis and reached GEL 18,639.9 million, with 8.6% growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 22.1% and stood at GEL 457.3 million, translated into growth of 20.5% on a constant currency basis.


In thousands of GEL

Customer accounts

Jun'23

Mar'23

Change QoQ

Georgia FS

18,639,911

16,958,444

9.9%

Retail Georgia

6,985,211

6,455,890

8.2%

GEL

2,242,193

1,941,188

15.5%

FC

4,743,018

4,514,702

5.1%

CIB Georgia

9,048,955

8,302,775

9.0%

GEL

5,169,170

4,641,378

11.4%

FC

3,879,785

3,661,397

6.0%

MSME Georgia

1,638,612

1,590,496

3.0%

GEL

889,834

829,378

7.3%

FC

748,778

761,118

-1.6%

MOF

967,133

609,283

58.7%

GEL

967,133

609,283

58.7%

Uzbekistan

457,340

374,429

22.1%

FC

1,322

1,196

10.5%

UZS

456,018

373,233

22.2%

Total customer accounts*

18,992,492

17,297,630

9.8%

* Total customer accounts are adjusted for eliminations

 

Deposit rates

2Q'23

1Q'23

2Q'22

Change YoY

Change QoQ

 Deposit rates

4.9%

4.9%

3.7%

1.2 pp

0.0 pp

 GEL

8.3%

8.8%

7.7%

0.6 pp

-0.5 pp

 FC

0.8%

0.7%

0.9%

-0.1 pp

0.1 pp

 UZS

25.0%

25.4%

23.0%

2.0 pp

-0.4 pp

Georgian financial services

4.5%

4.5%

3.5%

1.0 pp

0.0 pp

 GEL

8.4%

8.8%

7.8%

0.6 pp

-0.4 pp

 FC

0.8%

0.7%

0.9%

-0.1 pp

0.1 pp

Uzbek business

24.9%

25.3%

23.0%

1.9 pp

-0.4 pp

    FC

4.7%

4.9%

n/a

n/a

-0.2 pp

UZS

25.0%

25.4%

23.0%

2.0 pp

-0.4 pp

Total deposit rates*

4.9%

4.9%

3.7%

1.2 pp

0.0 pp

* Total deposits rates include MOF deposits



 

Unaudited Consolidated Financial Results Overview for 1H 2023

This statement provides a summary of the unaudited business and financial trends for 1H 2023 for TBC Bank Group plc and its subsidiaries. The semi-annual financial information and trends are unaudited.

TBC Bank Group PLC's financial results have been prepared in accordance with the UK-adopted International Accounting Standard (IAS) 34 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the Financial Conduct Authority (FCA).

Total equity and total liabilities were restated for 30-Jun-2022 due to a change in the accounting of option contracts. As a result, ROE and leverage ratios were restated for 1H 2022. In addition, total assets and total liabilities for 30-Jun-2022 were restated due to replacement of IFRS4 with IFRS17. For more details, please refer to Note 2.

Please also note that there might be slight differences in previous periods' figures due to rounding.

Net Interest Income

In 1H 2023, net interest income amounted to GEL 766.1 million, up by 29.4% on a YoY basis.

The YoY rise in interest income by GEL 303.5 million, or 28.1%, was mostly attributable to an increase in interest income from loans related to a GEL 1,826.2 million, or 10.4%, increase in the respective portfolio, as well as a 1.6 pp rise in the respective yield.

YoY interest expense increased by GEL 129.6 million, or 26.5%, mainly related to an increase in the deposit portfolio of GEL 3,219.6 million, or 20.4%, and a 1.2 pp growth in deposit cost.

In 1H 2023, our NIM stood at 6.6%, up by 0.9 pp on a YoY basis.

In thousands of GEL

1H'23

1H'22

Change YoY

Interest income

1,383,970

1,080,462

28.1%

Interest expense*

(617,841)

(488,271)

26.5%

Net interest income

766,129

592,191

29.4%


 

 


NIM

6.6%

5.7%

0.9 pp

* Interest expense includes net interest gains from currency swaps

 

Non-Interest Income

Total non-interest income amounted to GEL 352.9 million in 1H 2023, increasing by 23.9% on a YoY basis. 

Net fee and commission income increased by 40.0% on a YoY basis, related to increased payments transactions both in Georgia and Uzbekistan. Our Uzbek business contributed 18% of the Group's net fee and commission income.

In thousands of GEL

Other non-interest income

1H'23

1H'22

Change YoY

Net fee and commission income

198,074

141,462

40.0%

Net gains from currency derivatives, foreign currency operations and translation

121,728

114,377

6.4%

Insurance profit

12,402

10,965

13.1%

Other operating income

20,672

17,906

15.4%

Total other non-interest income

352,876

284,710

23.9%

 

Credit Loss Allowance

Credit loss allowance for loans in 1H 2023 amounted to GEL 79.4 million, which translated into a 0.9% cost of risk.

In thousands of GEL

1H'23

1H'22

Change YoY

Credit loss (allowance)/recovery for loans to customers

(79,424)

(50,522)

57.2%

Credit loss allowance for other transactions

(7,678)

(1,068)

NMF

Total credit loss (allowance)/recovery

(87,102)

(51,590)

68.8%

Operating income after expected credit and non-financial asset impairment losses

1,031,903

825,311

25.0%


 



Cost of risk

0.9%

0.6%

0.3 pp

 

Operating Expenses

In 1H 2023, our operating expenses expanded by 22.8% on a YoY basis.

In the first half of 2023, the annual increase in operating expenses was mainly driven by overall business expansion, both locally and internationally.

Our investments into the business are continuing to drive strong income generation, and our cost to income ratio amounted to 34.5%, down by 1.4 pp, while our Georgian financial services' cost to income stood at 30.3%, down by 0.2 pp.

In thousands of GEL

Operating expenses

1H'23

1H'22

Change YoY

Staff costs

(212,150)

(176,491)

20.2%

Allowance of provision for liabilities and charges

(121)

(60)

NMF

Depreciation and amortisation

(57,948)

(47,332)

22.4%

Administrative and other operating expenses

(116,121)

(90,702)

28.0%

Total operating expenses

(386,340)

(314,585)

22.8%

 




Cost to income

34.5%

35.9%

-1.4 pp

Georgian financial services' cost to income

30.3%

30.5%

-0.2 pp

 

Net Profit

In 1H 2023, we delivered robust profitability and generated GEL 548.0 million in net profit, up by 19.5% YoY, driven by robust income generation across the board, as well as strong asset quality.

The growth in effective tax rate YoY is related to the changes in tax legislation effective from 1 January 2023, according to which, the corporate income tax rate for banks increased from 15% to 20% and the potential shift to Estonian Tax Model was abolished.

As a result, our ROE and ROA for 1H 2023 reached 26.7% and 3.9%, accordingly.

In thousands of GEL

1H'23

1H'22

Change YoY

Profit before tax

645,563

510,726

26.4%

Income tax expense

(97,517)

(52,181)

86.9%

Profit for the period

548,046

458,545

19.5%

Effective tax rate

15%

10%

5 pp

 




ROE

26.7%

25.9%

0.8 pp

Georgian financial services' ROE

25.7%

25.4%

0.3 pp

ROA

3.9%

3.7%

0.2 pp

Georgian financial services' ROA

4.1%

4.0%

0.1 pp

 


Loan Portfolio

As of 30 June 2023, the gross loan portfolio reached GEL 19,360.7 million, up by 10.4% YoY or 16.4% on a constant currency basis.

By the end of June 2023, the Georgian financial services' portfolio increased by 8.5% on a YoY basis and reached GEL 18,816.1 million, with 14.0% growth on a constant currency basis. Over the same period, our Uzbek portfolio increased almost three times and reached GEL 526.8 million.

In thousands of GEL

Gross loans and advances to customers

Jun'23

Jun'22

Change YoY

Georgian financial services (Georgia FS)

18,816,052

17,334,394

8.5%

Retail Georgia

6,945,911

6,472,248

7.3%

GEL

4,549,932

3,994,645

13.9%

FC

2,395,979

2,477,603

-3.3%

CIB Georgia

6,920,263

6,462,635

7.1%

GEL

2,321,704

2,083,255

11.4%

FC

4,598,559

4,379,380

5.0%

MSME Georgia

4,949,878

4,399,511

12.5%

GEL

2,675,925

2,357,652

13.5%

FC

2,273,953

2,041,859

11.4%

Uzbekistan

526,843

181,345

NMF

UZS

526,843

181,345

NMF

Total gross loans and advances to customers*

19,360,689

17,534,515

10.4%

* Total gross loans and advances to customers include Azerbaijan loan portfolio


1H'23

1H'22

Change YoY

Loan yields

12.6%

11.0%

1.6 pp

GEL

15.2%

15.6%

-0.4 pp

FC

8.3%

6.5%

1.8 pp

UZS

43.1%

41.8%

1.3 pp

Georgia FS

11.9%

10.8%

1.1 pp

GEL

15.2%

15.6%

-0.4 pp

FC

8.3%

6.5%

1.8 pp

Uzbekistan

43.1%

41.8%

1.3 pp

UZS

43.1%

41.8%

1.3 pp

Total loan yields*

12.6%

11.0%

1.6 pp

* Total loans yields include Azerbaijan

Loan Portfolio Quality

In 1H 2023, PAR 90 for our Georgia FS decreased by 0.3 pp YoY and stood at 1.1%. This improvement was observed across all sub-segments. Over the same period, NPL to gross loans stood at 2.1%, down by 0.2 pp. This decrease was mainly driven by the retail and MSME sub-segments.

Over the same period, both PAR 90 and NPL for the Uzbek business remained broadly stable and stood at 2.2%.

Par 90

Jun'23

Jun'22

Change YoY

Georgia FS

1.1%

1.4%

-0.3 pp

Retail Georgia

0.9%

1.2%

-0.3 pp

CIB Georgia

0.6%

0.7%

-0.1 pp

MSME Georgia

2.3%

2.6%

-0.3 pp

Uzbekistan

2.2%

2.1%

0.1 pp

Total PAR 90*

1.2%

1.4%

-0.2 pp

* Total PAR 90 includes Azerbaijan

 

In thousands of GEL
Non-performing Loans (NPL)

Jun'23

Jun'22

Change YoY

Georgia FS

387,626

400,520

-3.2%

Retail Georgia

127,833

147,847

-13.5%

CIB Georgia

98,374

84,314

16.7%

MSME Georgia

161,419

168,359

-4.1%

Uzbekistan

11,646

3,849

NMF

Total non-performing loans*

400,989

407,855

-1.7%

* Total non-performing loans include Azerbaijan NPLs

 

NPL to gross loans

Jun'23

Jun'22

Change YoY

Georgia FS

2.1%

2.3%

-0.2 pp

Retail Georgia

1.8%

2.3%

-0.5 pp

CIB Georgia

1.4%

1.3%

0.1 pp

MSME Georgia

3.3%

3.8%

-0.5 pp

Uzbekistan

2.2%

2.1%

0.1 pp

Total NPL to gross loans*

2.1%

2.3%

-0.2 pp

* Total NPL to gross loans include Azerbaijan NPLs

 

NPL Coverage

Jun'23

Jun'22


Provision Coverage

Total Coverage**

Provision Coverage

Total Coverage**

Georgia FS

85.3%

150.9%

97.6%

164.4%

Retail Georgia

141.8%

192.4%

167.6%

218.4%

CIB Georgia

49.4%

110.5%

55.4%

118.7%

MSME Georgia

62.6%

142.7%

57.5%

139.9%

Uzbekistan

180.0%

180.0%

142.5%

142.5%

Total NPL coverage*

89.3%

153.7%

99.8%

167.5%


* Total NPL coverage include Azerbaijan loans coverage
** Total NPL coverage ratio includes provision and collateral coverage

Cost of Risk

In 1H 2023, our cost of risk amounted to 0.9%.

In the first half of 2023, cost of risk (CoR) for our Georgia FS amounted to 0.8%, up by 0.2 pp on a YoY basis. The increase was mainly caused by the unusually low CoR for the MSME sub-segment in 1H 2022.  

Over the same period, cost of risk of our Uzbek business amounted to 6.1%, up by 0.7 pp on a YoY basis. The increase was mainly driven by the enhancement of the provisioning approach with more internal data accumulated since the launch of the Uzbek bank.

Cost of risk (CoR)

1H'23

1H'22

Change YoY

Georgia FS

0.8%

0.6%

0.2 pp

Retail Georgia

1.0%

1.5%

-0.5 pp

CIB Georgia

0.0%

-0.1%

0.1 pp

MSME Georgia

1.5%

0.3%

1.2 pp

Uzbekistan

6.1%

5.4%

0.7 pp

Total cost of risk*

0.9%

0.6%

0.3 pp

* Total cost of risk includes Azerbaijan CoR

 

Deposit Portfolio

The total deposit portfolio amounted to GEL 18,992.5 million, increasing by 20.4% YoY or 27.5% on a constant currency basis.

As of 30 June 2023, the Georgian financial services' portfolio increased by 19.4% on a YoY basis and reached GEL 18,639.9 million, with 26.0% growth on a constant currency basis. Over the same period, our Uzbek portfolio almost doubled and stood at GEL 457.3 million.

In thousands of GEL

Customer accounts

Jun'23

Jun'22

Change YoY

Georgia FS

18,639,911

15,612,455

19.4%

Retail Georgia

6,985,211

5,671,380

23.2%

GEL

2,242,193

1,571,547

42.7%

FC

4,743,018

4,099,833

15.7%

CIB Georgia

9,048,955

7,659,931

18.1%

GEL

5,169,170

3,176,650

62.7%

FC

3,879,785

4,483,281

-13.5%

MSME Georgia

1,638,612

1,566,524

4.6%

GEL

889,834

723,118

23.1%

FC

748,778

843,406

-11.2%

MOF

967,133

714,620

35.3%

GEL

967,133

714,620

35.3%

Uzbekistan

457,340

235,780

94.0%

FC

1,322

-

NMF

UZS

456,018

235,780

93.4%

Total customer accounts*

18,992,492

15,772,905

20.4%

* Total customer accounts are adjusted for eliminations

Deposit rates

1H'23

1H'22

Change YoY

 Deposit rates

4.9%

3.7%

1.2 pp

 GEL

8.5%

7.6%

0.9 pp

 FC

0.7%

1.0%

-0.3 pp

 UZS

25.1%

22.3%

2.8 pp

Georgian financial services

4.5%

3.5%

1.0 pp

 GEL

8.6%

7.6%

1.0 pp

 FC

0.8%

1.0%

-0.2 pp

Uzbek business

25.0%

22.3%

2.7 pp

    FC

4.8%

n/a

n/a

UZS

25.1%

22.3%

2.8 pp

Total deposit rates*

4.9%

3.7%

1.2 pp

* Total deposit rates include MOF deposits

Additional Disclosures

1)   TBC Bank - Background

TBC Bank Group PLC ("TBC PLC") is a public limited company registered in England and Wales. TBC PLC is the parent company of JSC TBC Bank ("TBC Bank") and a group of companies that principally operate in Georgia in the financial sector. TBC PLC also offers non-financial services via TNET, the largest digital ecosystem in Georgia. Since 2019, TBC PLC has expanded its operations into Uzbekistan by operating fast growing retail digital financial services in the country. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of the FTSE 250 Index. It is also a member of the FTSE4Good Index Series and the MSCI United Kingdom Small Cap Index.

TBC Bank, together with its subsidiaries, is a leading universal banking group in Georgia, with a total market share of 38.8% of customer loans and 40.1% of customer deposits as of 30 June 2023, according to data published by the National Bank of Georgia.

2)   Consolidated Financial Statements and Key Ratios 2Q 2023

Consolidated Balance Sheet

In thousands of GEL 

Jun'23

Mar'23

ASSETS



Cash and cash equivalents

2,940,359

2,188,553

Due from other banks

52,550

38,738

Mandatory cash balances with National Bank of Georgia and the Central Bank of Uzbekistan

1,706,981

1,817,145

Loans and advances to customers

19,002,657

17,953,053

Investment securities measured at fair value through other comprehensive income

2,942,679

3,047,598

Bonds carried at amortised cost

87,213

30,967

Finance lease receivables

338,203

316,247

Investment properties

20,741

21,080

Current income tax prepayment

3,005

856

Deferred income tax asset

12,573

13,867

Other financial assets

266,969

258,135

Other assets

441,756

426,343

Premises and equipment

463,407

448,041

Right of use assets

117,634

112,977

Intangible assets

418,468

401,326

Goodwill

59,964

59,964

Investments in associates

3,667

4,095

TOTAL ASSETS

28,878,826

27,138,985

LIABILITIES     

 

 

Due to credit institutions

2,448,662

2,596,880

Customer accounts

18,992,492

17,297,630

Lease liabilities

87,324

79,989

Other financial liabilities

387,595

345,017

Current income tax liability

27,559

6,659

Debt Securities in issue

1,392,872

1,324,815

Deferred income tax liability

112,095

114,300

Provision for liabilities and charges

20,767

19,228

Other liabilities

91,839

67,026

Redemption liability

347,044

464,805

Subordinated debt

639,048

583,678

TOTAL LIABILITIES

24,547,297

22,900,027

EQUITY     

 

 

Share capital

1,682

1,676

Shares held by trust

(75,470)

(37,239)

Share premium

272,930

261,719

Retained earnings

3,984,493

3,993,387

Merger reserve

402,862

402,862

Share based payment reserve

5,181

(2,815)

Fair value reserve for investment securities measured at fair value through other comprehensive income

16,461

13,503

Cumulative currency translation reserve

(36,804)

(41,024)

Other reserve

(347,044)

(464,805)

Equity attributable to owners of the parent

4,224,291

4,127,264

Non-controlling interest

107,238

111,694

TOTAL EQUITY

4,331,529

4,238,958

TOTAL LIABILITIES AND EQUITY

28,878,826

27,138,985

 


Consolidated Income Statement and Other Comprehensive Income

In thousands of GEL 

 2Q'23

 1Q'23

 2Q'22

Interest income

711,820

672,150

552,719

Interest expense

(312,482)

(305,359)

(249,147)

Net interest income

399,338

366,791

303,572

Fee and commission income

161,729

151,801

127,490

Fee and commission expense

(56,093)

(59,363)

(51,918)

Net fee and commission income

105,636

92,438

75,572

Insurance contract revenue

31,552

29,524

27,201

Reinsurance service result

(1,517)

(2,870)

(614)

Insurance service claims and expenses incurred

(23,851)

(20,436)

(19,889)

Insurance profit

6,184

6,218

6,698

Net gains from currency derivatives, foreign currency operations and translation

61,127

60,601

66,520

Net gains from disposal of investment securities measured at fair value through other comprehensive income

2,307

2,012

108

Other operating income

11,906

3,905

11,461

Share of profit of associates

268

274

178

Other operating non-interest income

75,608

66,792

78,267

Credit loss allowance for loans to customers

(29,384)

(50,040)

(39,025)

Credit loss (allowance)/recovery for finance lease receivable

(1,059)

(1,073)

883

Credit loss (allowance)/recovery for performance guarantees and credit related commitments

(1,273)

337

(1,659)

Credit loss (allowance)/recovery for other financial assets

(2,136)

(1,954)

992

Credit loss recovery/(allowance) for financial assets measured at fair value through other comprehensive income

134

(296)

1,183

Net impairment of non-financial assets

(216)

(142)

(228)

Operating income after expected credit and non-financial asset impairment losses

552,832

479,071

426,255

Losses from modifications of financial instruments

-

-

-

Staff costs

(108,724)

(103,426)

(90,332)

Depreciation and amortisation

(29,587)

(28,361)

(24,321)

(Allowance)/recovery of provision for liabilities and charges

(50)

(71)

4

Administrative and other operating expenses

(65,199)

(50,922)

(48,986)

Operating expenses

(203,560)

(182,780)

(163,635)

Profit before tax

349,272

296,291

262,620

Income tax expense

(56,186)

(41,331)

(28,056)

Profit for the period

293,086

254,960

234,564

Other comprehensive income:




Items that may be reclassified subsequently to profit or loss:




Movement in fair value reserve

2,958

8,036

(1,597)

Exchange differences on translation to presentation currency

4,220

(5,166)

(8,703)

Other comprehensive income for the period

7,178

2,870

(10,300)

Total comprehensive income for the period

300,264

257,830

224,264

Profit attributable to:




 - Shareholders of TBCG

288,791

248,668

233,799

 - Non-controlling interest

4,295

6,292

765

Profit for the period

293,086

254,960

234,564

Total comprehensive income is attributable to:




 - Shareholders of TBCG

295,969

251,538

223,499

 - Non-controlling interest

4,295

6,292

765

Total comprehensive income for the period

300,264

257,830

224,264

* Interest expense includes net interest gains from currency swaps

 



  Key Ratios 2Q'23

Total equity and total liabilities were restated for 30-Jun-2022 due to a change in the accounting of option contracts. As a result, ROE and leverage ratios were restated for 2Q 2022.

Average Balances

The average balances included in this document are calculated as the average of the relevant monthly balances as of the end of each month. Balances have been extracted from TBC's unaudited and consolidated management accounts, which were prepared from TBC's accounting records. These were used by the management for monitoring and control purposes.

Ratios (based on monthly averages, where applicable)

2Q'23

1Q'23

2Q'22

 




Profitability ratios:




ROE1

28.1%

25.2%

25.7%

ROA2

4.2%

3.6%

3.7%

Cost to income3

34.7%

34.3%

35.3%

NIM4

6.8%

6.4%

5.8%

Loan yields5

12.8%

12.4%

11.2%

Deposit rates6

4.9%

4.9%

3.7%

Cost of funding7

5.6%

5.4%

4.8%





Asset quality & portfolio concentration:




Cost of risk9

0.6%

1.1%

0.9%

PAR 90 to Gross Loans9

1.2%

1.3%

1.4%

NPLs to Gross Loans10

2.1%

2.2%

2.3%

NPL provision coverage11

89.3%

92.9%

99.8%

Total NPL coverage12

153.7%

154.8%

167.5%

Credit loss level to Gross Loans13

1.8%

2.0%

2.3%

Related Party Loans to Gross Loans14

0.1%

0.1%

0.1%

Top 10 Borrowers to Total Portfolio15

5.8%

6.0%

6.6%

Top 20 Borrowers to Total Portfolio16

8.7%

9.0%

8.8%





Capital & liquidity positions:




Net Loans to Deposits plus IFI Funding17

90.6%

92.9%

97.7%

Net Stable Funding Ratio** 18

129.8%

131.3%

n/a

Liquidity Coverage Ratio** 19

124.5%

135.7%

n/a

Leverage20

 6.7x

 6.4x

 6.9x

CET 1 CAR* (Basel III)21

18.3%

17.7%

n/a

Tier 1 CAR* (Basel III)22

20.7%

20.1%

n/a

Total 1 CAR* (Basel III)23

23.1%

22.2%

n/a

* Ratios are calculated per IFRS

 

For the ratio definitions and exchange rates, please refer to appendix 8.



3)   Consolidated Financial Statements and Key Ratios 1H 2023

Consolidated Balance Sheet

In thousands of GEL 

Jun'23

Jun'22

ASSETS



Cash and cash equivalents

2,940,359

2,739,226

Due from other banks

52,550

42,552

Mandatory cash balances with National Bank of Georgia and the Central Bank of Uzbekistan

1,706,981

2,108,455

Loans and advances to customers

19,002,657

17,131,009

Investment securities measured at fair value through other comprehensive income

2,942,679

1,915,987

Bonds carried at amortised cost

87,213

27,962

Finance lease receivables

338,203

253,057

Investment properties

20,741

20,506

Current income tax prepayment

3,005

1,565

Deferred income tax asset

12,573

13,876

Other financial assets

266,969

365,207

Other assets

441,756

448,588

Premises and equipment

463,407

429,726

Right of use assets

117,634

77,039

Intangible assets

418,468

345,291

Goodwill

59,964

59,964

Investments in associates

3,667

3,466

TOTAL ASSETS

28,878,826

25,983,476

LIABILITIES

 


Due to credit institutions

2,448,662

3,575,808

Customer accounts

18,992,492

15,772,905

Lease liabilities

87,324

70,491

Other financial liabilities

387,595

300,152

Current income tax liability

27,559

13,870

Debt Securities in issue

1,392,872

1,514,106

Deferred income tax liability

112,095

4,349

Provision for liabilities and charges

20,767

16,650

Other liabilities

91,839

69,571

Redemption liability

347,044

254,492

Subordinated debt

639,048

634,319

TOTAL LIABILITIES

24,547,297

22,226,713

EQUITY

 


Share capital

1,682

1,682

Shares held by trust

(75,470)

(7,900)

Share premium

272,930

283,430

Retained earnings

3,984,493

3,345,183

Merger reserve

402,862

402,862

Share based payment reserve

5,181

(12,488)

Fair value reserve for investment securities measured at fair value through other comprehensive income

16,461

(25,609)

Cumulative currency translation reserve

(36,804)

(18,023)

Other reserve

(347,044)

(254,492)

Equity attributable to owners of the parent

4,224,291

3,714,645

Non-controlling interest

107,238

42,118

TOTAL EQUITY

4,331,529

3,756,763

TOTAL LIABILITIES AND EQUITY

28,878,826

25,983,476

 


Consolidated Income Statement and Other Comprehensive Income

In thousands of GEL 

1H'23

1H'22

Interest income

1,383,970

1,080,462

Interest expense*

(617,841)

(488,271)

Net interest income

766,129

592,191

Fee and commission income

313,530

240,383

Fee and commission expense

(115,456)

(98,921)

Net fee and commission income

198,074

141,462

Insurance contract revenue

61,076

51,369

Reinsurance service result

(4,387)

(3,260)

Insurance service claims and expenses incurred

(44,287)

(37,144)

Insurance profit

12,402

10,965

Net gains from currency derivatives, foreign currency operations and translation

121,728

114,377

Net gains from disposal of investment securities measured at fair value through other comprehensive income

4,319

2,225

Other operating income

15,811

15,558

Share of profit of associates

542

123

Other operating non-interest income

142,400

132,283

Credit loss allowance for loans to customers

(79,424)

(50,522)

Credit loss allowance for finance lease receivable

(2,132)

(562)

Credit loss allowance for performance guarantees and credit related commitments

(936)

(1,070)

Credit loss allowance for other financial assets

(4,090)

(698)

Credit loss (allowance)/recovery for financial assets measured at fair value through other comprehensive income

(162)

1,268

Net impairment of non-financial assets

(358)

(6)

Operating income after expected credit and non-financial asset impairment losses

1,031,903

825,311

Staff costs

(212,150)

(176,491)

Depreciation and amortisation

(57,948)

(47,332)

Allowance of provision for liabilities and charges

(121)

(60)

Administrative and other operating expenses

(116,121)

(90,702)

Operating expenses

(386,340)

(314,585)

Profit before tax

645,563

510,726

Income tax expense

(97,517)

(52,181)

Profit for the period

548,046

458,545

Other comprehensive income:



Items that may be reclassified subsequently to profit or loss:



Movement in fair value reserve

10,994

(14,747)

Exchange differences on translation to presentation currency

(946)

(8,573)

Other comprehensive income for the period

10,048

(23,320)

Total comprehensive income for the period

558,094

435,225

Profit attributable to:



 - Shareholders of TBCG

537,459

458,465

 - Non-controlling interest

10,587

80

Profit for the period

548,046

458,545

Total comprehensive income is attributable to:



 - Shareholders of TBCG

547,507

435,145

 - Non-controlling interest

10,587

80

Total comprehensive income for the period

558,094

435,225

* Interest expense includes net interest gains from currency swaps

 

 

 

Key Ratios 1H'23

Total equity and total liabilities were restated for 30-Jun-2022 due to a change in the accounting of option contracts. As a result, ROE and leverage ratios were restated for 1H 2022.

Average Balances

The average balances included in this document are calculated as the average of the relevant monthly balances as of the end of each month. Balances have been extracted from TBC's unaudited and consolidated management accounts, which were prepared from TBC's accounting records. These were used by the management for monitoring and control purposes.

Ratios (based on monthly averages, where applicable)

1H'23

1H'22

 



Profitability ratios:

 


ROE1

26.7%

25.9%

ROA2

3.9%

3.7%

Cost to income3

34.5%

35.9%

NIM4

6.6%

5.7%

Loan yields5

12.6%

11.0%

Deposit rates6

4.9%

3.7%

Cost of funding7

5.5%

4.8%




Asset quality & portfolio concentration:

 


Cost of risk9

0.9%

0.6%

PAR 90 to Gross Loans9

1.2%

1.4%

NPLs to Gross Loans10

2.1%

2.3%

NPL provision coverage11

89.3%

99.8%

Total NPL coverage12

153.7%

167.5%

Credit loss level to Gross Loans13

1.8%

2.3%

Related Party Loans to Gross Loans14

0.1%

0.1%

Top 10 Borrowers to Total Portfolio15

5.8%

6.6%

Top 20 Borrowers to Total Portfolio16

8.7%

8.8%




Capital & liquidity positions:

 


Net Loans to Deposits plus IFI Funding17

90.6%

97.7%

Net Stable Funding Ratio** 18

129.8%

n/a

Liquidity Coverage Ratio** 19

124.5%

n/a

Leverage20

 6.7x

 6.9x

CET 1 CAR* (Basel III)21

18.3%

n/a

Tier 1 CAR* (Basel III)22

20.7%

n/a

Total 1 CAR* (Basel III)23

23.1%

n/a

* Ratios are calculated per IFRS


For the ratio definitions and exchange rates, please refer to appendix 8.


4)   Financial Disclosures by Business Lines

The definitions of business lines are defined in Note 17.

Consolidated Balance Sheet Mar'23

In thousands of GEL 

Georgia FS

Uzbekistan*

Payme

TBC UZ

Other**

Group

ASSETS







Cash and cash equivalents

2,035,505

149,564

19,318

139,530

3,484

2,188,553

Due from other banks

38,708

-

-

-

30

38,738

Mandatory cash balances with National Bank of Georgia and Central Bank of Uzbekistan

1,814,320

2,825

-

2,825

-

1,817,145

Loans and advances to customers

17,550,137

392,483

-

392,483

10,433

17,953,053

Investment securities measured at fair value through other comprehensive income

3,047,597

-

-

-

1

3,047,598

Bonds carried at amortised cost

8,317

22,650

-

22,650

-

30,967

Finance lease receivables

285,724

24,075

-

24,075

6,448

316,247

Investment properties

21,080

-

-

-

-

21,080

Current income tax prepayment

40

-

-

-

816

856

Deferred income tax asset

122

13,423

-

13,423

322

13,867

Other financial assets

274,727

2,676

5,348

-

(19,268)

258,135

Other assets

413,708

12,652

1,947

10,705

(17)

426,343

Premises and equipment

431,318

12,491

2,219

10,272

4,232

448,041

Right of use assets

103,208

7,850

1,789

6,061

1,919

112,977

Intangible assets

321,687

22,201

1,052

21,149

57,438

401,326

Goodwill

28,197

1,912

-

1,912

29,855

59,964

Investments in associates

18,711

-

-

-

(14,616)

4,095

TOTAL ASSETS    

26,393,106

664,802

31,673

645,085

81,077

27,138,985

LIABILITIES     







Due to credit institutions

2,530,753

19,877

-

19,877

46,250

2,596,880

Customer accounts    

16,958,443

374,429

-

383,713

(35,242)

17,297,630

Lease liabilities

69,988

8,520

1,784

6,736

1,481

79,989

Other financial liabilities

726,484

19,065

18,467

598

(400,532)

345,017

Current income tax liability  

6,626

-

-

-

33

6,659

Debt Securities in issue

1,159,541

-

-

-

165,274

1,324,815

Deferred income tax liability  

114,280

-

-

-

20

114,300

Provisions for liabilities and charges 

19,228

-

-

-

-

19,228

Other liabilities    

51,335

17,695

1,145

19,222

(2,004)

67,026

Redemption liability

-

-

-

-

464,805

464,805

Subordinated debt    

583,678

-

-

-

-

583,678

TOTAL LIABILITIES    

22,220,356

439,586

21,396

430,146

240,085

22,900,027

EQUITY     







Share capital

28,498

277,189

495

276,694

(304,011)

1,676

Shares held by trust

-

-

-

-

(37,239)

(37,239)

Share premium

521,190

27,860

-

27,860

(287,331)

261,719

Retained earnings

3,667,049

(51,549)

14,059

(65,608)

377,887

3,993,387

Merger reserve

-

67

67

-

402,795

402,862

Share based payment reserve

(57,660)

-

-

-

54,845

(2,815)

Fair value reserve for investment securities measured at fair value through other comprehensive income

13,498

211

211

-

(206)

13,503

Cumulative currency translation reserve

-

(28,562)

(4,555)

(24,007)

(12,462)

(41,024)

Other reserve

-

-

-

-

(464,805)

(464,805)

Net assets attributable to owners

4,172,575

225,216

10,277

214,939

(270,527)

4,127,264

Non-controlling interest    

175

-

-

-

111,519

111,694

TOTAL EQUITY    

4,172,750

225,216

10,277

214,939

(159,008)

4,238,958

TOTAL LIABILITIES AND EQUITY  

26,393,106

664,802

31,673

645,085

81,077

27,138,985

* Includes intergroup eliminations

** Includes Azerbaijan, TNET, other subsidiaries and intra-group eliminations

 


Consolidated Balance Sheet Jun'23

In thousands of GEL 

Georgia FS

Uzbekistan*

Payme

TBC UZ

Other**

Group

ASSETS







Cash and cash equivalents

2,866,361

68,577

3,976

64,828

5,421

2,940,359

Due from other banks

52,523

-

-

-

27

52,550

Mandatory cash balances with National Bank of Georgia and Central Bank of Uzbekistan

1,703,444

3,537

-

3,537

-

1,706,981

Loans and advances to customers

18,485,251

505,878

-

505,878

11,528

19,002,657

Investment securities measured at fair value through other comprehensive income

2,942,679

-

-

-

-

2,942,679

Bonds carried at amortised cost

9,382

77,831

-

77,831

-

87,213

Finance lease receivables

305,761

25,366

-

25,366

7,076

338,203

Investment properties

20,741

-

-

-

-

20,741

Current income tax prepayment

2,508

-

-

-

497

3,005

Deferred income tax asset

122

11,993

-

11,993

458

12,573

Other financial assets

282,803

1,850

5,482

-

(17,684)

266,969

Other assets

424,040

16,715

2,056

14,659

1,001

441,756

Premises and equipment

446,146

12,803

2,450

10,353

4,458

463,407

Right of use assets

108,579

7,210

1,614

5,596

1,845

117,634

Intangible assets

329,917

22,916

2,182

20,734

65,635

418,468

Goodwill

28,197

1,912

-

1,912

29,855

59,964

Investments in associates

18,284

-

-

-

(14,617)

3,667

TOTAL ASSETS    

28,026,738

756,588

17,760

742,687

95,500

28,878,826

LIABILITIES     







Due to credit institutions

2,417,293

29,083

-

29,083

2,286

2,448,662

Customer accounts    

18,639,911

457,340

-

457,567

(104,759)

18,992,492

Lease liabilities

77,869

8,018

1,677

6,341

1,437

87,324

Other financial liabilities

369,419

2,389

1,790

599

15,787

387,595

Current income tax liability  

27,523

-

-

-

36

27,559

Debt Securities in issue

1,223,719

-

-

-

169,153

1,392,872

Deferred income tax liability  

112,071

-

-

-

24

112,095

Provisions for liabilities and charges 

20,767

-

-

-

-

20,767

Other liabilities    

58,215

28,652

3,300

28,984

4,972

91,839

Redemption liability

-

-

-

-

347,044

347,044

Subordinated debt    

639,048

-

-

-

-

639,048

TOTAL LIABILITIES    

23,585,835

525,482

6,767

522,574

435,980

24,547,297

EQUITY     






-

Share capital

28,498

277,189

495

276,694

(304,005)

1,682

Shares held by trust

-

-

-

-

(75,470)

(75,470)

Share premium

521,190

27,860

-

27,860

(276,120)

272,930

Retained earnings

3,965,894

(48,584)

14,820

(63,404)

67,183

3,984,493

Merger reserve

-

67

67

-

402,795

402,862

Share based payment reserve

(91,320)

-

-

-

96,501

5,181

Fair value reserve for investment securities measured at fair value through other comprehensive income

16,456

211

211

-

(206)

16,461

Cumulative currency translation reserve

-

(25,637)

(4,600)

(21,037)

(11,167)

(36,804)

Other reserve

-

-

-

-

(347,044)

(347,044)

Net assets attributable to owners

4,440,718

231,106

10,993

220,113

(447,533)

4,224,291

Non-controlling interest    

185

-

-

-

107,053

107,238

TOTAL EQUITY    

4,440,903

231,106

10,993

220,113

(340,480)

4,331,529

TOTAL LIABILITIES AND EQUITY  

28,026,738

756,588

17,760

742,687

95,500

28,878,826

* Includes intergroup eliminations

** Includes Azerbaijan, TNET, other subsidiaries and intra-group eliminations



Consolidated Income Statement and Other Comprehensive Income 1Q'23

In thousands of GEL 

Georgia FS

Uzbekistan**

Payme

TBC UZ

Other

***

 Group

Interest income

624,316

46,266

-

46,266

1,568

672,150

Interest expense*

(280,005)

(23,138)

(90)

(23,048)

(2,216)

(305,359)

Net interest income

344,311

23,128

(90)

23,218

(648)

366,791

Fee and commission income

129,740

20,863

18,261

5,309

1,198

151,801

Fee and commission expense

(55,319)

(4,005)

(1,649)

(5,063)

(39)

(59,363)

Net fee and commission income

74,421

16,858

16,612

246

1,159

92,438

Insurance profit

6,398

-

-

-

(180)

6,218

Net gains from currency derivatives, foreign currency operations and translation

62,914

68

2

66

(2,381)

60,601

Net gains from disposal of investment securities measured at fair value through other comprehensive income

2,012

-

-

-

-

2,012

Other operating income

2,877

28

1

27

1,000

3,905

Share of profit of associates

274

-

-

-

-

274

Other operating non-interest income

74,475

96

3

93

(1,561)

73,010

Credit loss allowance for loans to customers

(45,198)

(5,241)

-

(5,241)

399

(50,040)

Credit loss allowance for finance lease receivable

(786)

(335)

-

(335)

48

(1,073)

Credit loss recovery for performance guarantees and credit related commitments

337

-

-

-

-

337

Credit loss allowance for other financial assets

(1,680)

(274)

(179)

(95)

-

(1,954)

Credit loss allowance for financial assets measured at fair value through other comprehensive income

(296)

-

-

-

-

(296)

Net recovery of non-financial assets

312

-

-

-

(454)

(142)

Operating income after expected credit and non-financial asset impairment losses

445,896

34,232

16,346

17,886

(1,057)

479,071

Staff costs

(86,607)

(8,990)

(2,217)

(6,773)

(7,829)

(103,426)

Depreciation and amortisation

(24,587)

(2,110)

(248)

(1,862)

(1,664)

(28,361)

Allowance of provision for liabilities and charges

(71)

-

-

-

-

(71)

Administrative and other operating expenses

(38,803)

(10,114)

(2,279)

(7,835)

(2,005)

(50,922)

Operating expenses

(150,068)

(21,214)

(4,744)

(16,470)

(11,498)

(182,780)

Profit before tax

295,828

13,018

11,602

1,416

(12,555)

296,291

Income tax expense

(41,016)

(311)

-

(311)

(4)

(41,331)

Profit for the period

254,812

12,707

11,602

1,105

(12,559)

254,960

Profit attributable to:



 

 



 - Shareholders of TBCG

254,801

12,707

11,602

1,105

(18,840)

248,668

 - Non-controlling interest

11

-

-

-

6,281

6,292

Profit for the period

254,812

12,707

11,602

1,105

(12,559)

254,960

* Interest expense includes net interest gains from currency swaps

** Includes intergroup eliminations

*** Includes Azerbaijan, TNET, other subsidiaries and intra-group eliminations



Consolidated Income Statement and Other Comprehensive Income 2Q'23

In thousands of GEL 

Georgia FS

Uzbekistan**

Payme

TBC UZ

Other

***

Group

Interest income

653,209

56,989

-

56,989

1,622

711,820

Interest expense*

(285,241)

(27,228)

(83)

(27,145)

(13)

(312,482)

Net interest income

367,968

29,761

(83)

29,844

1,609

399,338

Fee and commission income

136,481

24,978

18,451

17,204

270

161,729

Fee and commission expense

(49,501)

(6,467)

(1,553)

(15,591)

(125)

(56,093)

Net fee and commission income

86,980

18,511

16,898

1,613

145

105,636

Insurance profit

6,362

-

-

-

(178)

6,184

Net gains from currency derivatives, foreign currency operations and translation

70,405