TBC BANK GROUP PLC ("TBC
Bank")
1Q 2024 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.
1Q
2024 consolidated financial results conference call
details
TBC Bank Group PLC ("TBC PLC") will
publish its preliminary unaudited consolidated financial results
for the first quarter 2024 on Friday, 10 May 2024 at 7.00 AM BST.
On the same day, the management team will host a conference call at
2.00 PM BST.
To participate in the conference call
live video webinar, please register using the following
link:
https://www.netroadshow.com/events/login?show=4bb3e869&confId=64445
You will receive access details via
email.
Contacts
Andrew Keeley
Director of Investor Relations
E-mail: AKeeley@tbcbank.com.ge
Tel: +44 (0) 7791
569834
Web: www.tbcbankgroup.com
|
Anna
Romelashvili
Head
of Investor Relations
E-mail: ARomelashvili@tbcbank.com.ge
Tel: +(995) 577 205
290
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
1Q 2024
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 1Q 2024
Additional information
1)
Financial disclosures by business lines
2)
Glossary
3)
Ratio definitions and exchange rates
1Q 2024 unaudited
consolidated financial results
1Q 2024 profit of GEL 296
million, up by 16% YoY, with ROE at 25.1%.
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.
Financial highlights
Income statement
In
thousands of GEL
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
Net interest income
|
442,844
|
441,735
|
366,791
|
20.7%
|
0.3%
|
Net fee and commission
income
|
104,303
|
110,099
|
92,438
|
12.8%
|
-5.3%
|
Other non-interest income
|
70,834
|
87,443
|
73,010
|
-3.0%
|
-19.0%
|
Total operating income
|
617,981
|
639,277
|
532,239
|
16.1%
|
-3.3%
|
Total credit loss
allowance
|
(45,133)
|
(47,480)
|
(53,168)
|
-15.1%
|
-4.9%
|
Operating expenses
|
(229,670)
|
(254,499)
|
(182,779)
|
25.7%
|
-9.8%
|
Profit before tax
|
343,178
|
337,298
|
296,292
|
15.8%
|
1.7%
|
Income tax expense
|
(46,707)
|
(45,856)
|
(41,331)
|
13.0%
|
1.9%
|
Profit for the period
|
296,471
|
291,442
|
254,961
|
16.3%
|
1.7%
|
Balance sheet
In
thousands of GEL
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Total assets
|
33,261,535
|
32,964,827
|
27,138,983
|
22.6%
|
0.9%
|
Gross loans
|
22,545,189
|
22,073,679
|
18,321,341
|
23.1%
|
2.1%
|
Customer deposits
|
20,838,768
|
20,375,498
|
17,297,630
|
20.5%
|
2.3%
|
Total equity
|
4,853,916
|
4,820,182
|
4,238,958
|
14.5%
|
0.7%
|
Number of shares
|
55,393,664
|
55,393,664
|
54,991,419
|
0.7%
|
0.0%
|
Key ratios
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
ROE
|
25.1%
|
25.2%
|
25.2%
|
-0.1 pp
|
-0.1 pp
|
ROA
|
3.6%
|
3.7%
|
3.6%
|
0.0 pp
|
-0.1 pp
|
NIM
|
6.5%
|
6.7%
|
6.4%
|
0.1 pp
|
-0.2 pp
|
Cost to income
|
37.2%
|
39.8%
|
34.3%
|
2.9 pp
|
-2.6 pp
|
Cost of risk
|
0.8%
|
0.8%
|
1.1%
|
-0.3 pp
|
0.0 pp
|
NPL to gross loans
|
2.2%
|
2.0%
|
2.2%
|
0.0 pp
|
0.2 pp
|
NPL provision coverage
ratio
|
74.4%
|
79.8%
|
92.9%
|
-18.5 pp
|
-5.4 pp
|
Total NPL coverage ratio
|
140.3%
|
146.3%
|
154.8%
|
-14.5 pp
|
-6.0 pp
|
Leverage (x)
|
6.9x
|
6.8x
|
6.4x
|
0.5x
|
0.1x
|
EPS (GEL)
|
5.39
|
5.31
|
4.57
|
17.9%
|
1.5%
|
Diluted EPS (GEL)
|
5.36
|
5.26
|
4.50
|
19.1%
|
1.9%
|
BVPS (GEL)
|
86.11
|
86.32
|
75.91
|
13.4%
|
-0.2%
|
Georgia
|
|
|
|
|
|
CET 1 CAR
|
16.6%
|
17.4%
|
17.7%
|
-1.1 pp
|
-0.8 pp
|
Tier 1 CAR
|
18.8%
|
19.6%
|
20.1%
|
-1.3 pp
|
-0.8 pp
|
Total CAR
|
21.5%
|
22.1%
|
22.2%
|
-0.7 pp
|
-0.6 pp
|
Uzbekistan
|
|
|
|
|
|
CET 1 CAR
|
12.7%
|
15.4%
|
23.1%
|
-10.4 pp
|
-2.7 pp
|
Tier 1 CAR
|
12.7%
|
15.4%
|
23.1%
|
-10.4 pp
|
-2.7 pp
|
Total CAR
|
16.2%
|
16.3%
|
23.6%
|
-7.4 pp
|
-0.1 pp
|
Operational highlights
Customer base
In
thousands
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Total number of unique registered users
|
17,884
|
16,490
|
13,272
|
35%
|
8%
|
Georgia
|
3,317
|
3,275
|
3,100
|
7%
|
1%
|
Uzbekistan
|
14,567
|
13,215
|
10,172
|
43%
|
10%
|
Total monthly active customers
|
6,331
|
5,890
|
5,123
|
24%
|
7%
|
Georgia
|
1,615
|
1,604
|
1,519
|
6%
|
1%
|
Uzbekistan
|
4,716
|
4,286
|
3,604
|
31%
|
10%
|
Total digital monthly active users (digital
MAU)
|
5,646
|
5,207
|
4,433
|
27%
|
8%
|
Georgia
|
930
|
921
|
829
|
12%
|
1%
|
Uzbekistan
|
4,716
|
4,286
|
3,604
|
31%
|
10%
|
Total digital daily active users (digital
DAU)
|
1,760
|
1,718
|
1,358
|
30%
|
2%
|
Georgia
|
413
|
421
|
368
|
12%
|
-2%
|
Uzbekistan
|
1,347
|
1,297
|
990
|
36%
|
4%
|
Digital DAU/MAU
|
31%
|
33%
|
31%
|
0 pp
|
-2 pp
|
Georgia
|
44%
|
46%
|
44%
|
0 pp
|
-2 pp
|
Uzbekistan
|
29%
|
30%
|
27%
|
2 pp
|
-1 pp
|
Uzbekistan - key highlights
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Loans and advances to customers
(GEL, thousands)
|
928,553
|
796,930
|
407,993
|
127.6%
|
16.5%
|
Customer accounts (GEL,
thousands)
|
657,190
|
581,483
|
374,429
|
75.5%
|
13.0%
|
Payme's payments volume (GEL,
billion)
|
2.5
|
2.6
|
2.2
|
13.6%
|
-3.8%
|
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
Profit for the period (GEL,
thousands)
|
18,436
|
20,433
|
12,708
|
45.1%
|
-9.8%
|
ROE
|
23.7%
|
29.7%
|
28.1%
|
-4.4 pp
|
-6.0 pp
|
TNET - digital lifestyle platform in Georgia
In
millions
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
Gross merchandise value (GMV,
GEL)
|
36.2
|
36.4
|
30.4
|
19.1%
|
-0.5%
|
Number of transactions
|
4.1
|
4.1
|
3.4
|
20.6%
|
0.0%
|
Letter from the Chief Executive
Officer[1]
I am pleased to report that we
started 2024 strongly, with net
income increasing
16% year-on-year to GEL 296 million,
and our ROE
remaining above 25%. Operating income was also up by 16% to GEL 618
million.
Before discussing our 1Q 2024
results in more detail, I would like to highlight that in April we successfully
issued USD 300 million AT1
bonds, with strong investor demand
from the EU, UK, and
US and which prices c. 50 bps below our
outstanding AT1 bonds that are callable in October this
year. This AT1 offering will reinforce our
capital structure and help to
provide an excellent foundation for pursuing
growth opportunities over the next few years.
Turning back to our financials,
our high profitability was driven by strong net interest income, which grew
by 21% year-on-year, underpinned by dynamic loan book growth and resilient
margins, while our net fee and commission income rose 13%. Our
solid revenue streams continue to be supported by sound asset
quality, which translated into 0.8% cost of risk. At the same time,
our operating expenses increased by 26% due to the expansion of our
business, with our Uzbek operations accounting for almost 40% of the growth.
Consequently, our cost to income ratio stood at 37.2% in 1Q
2024.
Credit growth remained robust in 1Q
2024 with the Group's gross loan book increasing by 21% year-on-year on a constant
currency basis. In parallel, the Group's total deposits grew by 18%
year-on-year on a constant currency basis, highlighting strong
funding support.
Our active customer base also
continues to
increase, in particular in Uzbekistan.
Our digital MAU reached 5.6 million at
the Group level by
end of March 2024, up 27%
year-on-year, while almost one third of our users
are active
across our digital platforms on a daily basis.
I would like
to highlight the performance of our digital
financial services businesses in
Uzbekistan, which continue to go from strength to strength as they become
a significant contributor to the overall
Group's balance sheet and profitability.
In 1Q 2024 alone, Uzbekistan generated GEL 74 million in
total operating income and GEL 18 million in net
profit, constituting 12% and 6% of the Group totals, respectively. Over the
same period, the ROE of our Uzbek operations amounted to
a very healthy 23.7%.
In addition, TBC UZ
is delivering remarkable
growth in its balance sheet.
As of the end of 1Q 2024, TBC UZ's retail loans
amounted to GEL 929 million, up by 128% year-on-year and accounting
for 42% of
the Group's consumer loans with a micro loan market share[2] of 15.3%. At
the same time, TBC UZ retail deposits
reached GEL 657 million, up by 76% year-on-year, representing 8% of
the Group's retail
deposits and capturing 3.4% retail deposit market
share2. Our focus in Uzbekistan
this year is on new product development, in particular rolling out
credit cards, daily and MSME banking as well as scaling up our
business as we continue to build greater synergies and integration
within our digital banking and payments
businesses.
I believe that the Group is well
positioned to build further on this strong start to the year and
deliver excellent results for our shareholders in 2024, as well as
ensuring we are on track to meet our strategic targets for next
year. We continue to feel the benefits of strong economic growth
within our two major operating countries, with our outlook for
Georgian economic growth this year raised to 6.4%, while we expect
very solid and consistent 5.6% growth in Uzbekistan.
Finally, I am pleased to report that
the Board has approved a buyback programme of up to GEL75 million,
of which GEL 50 million will be for share cancellation and GEL 25
million for the Employee Benefit Trust.
Vakhtang
Butskhrikidze
CEO, TBC
Bank Group PLC
Economic overview
Georgia
Economic growth remains robust
Economic activity eased slightly
but still remained very strong in 1Q 2024, with real GDP increasing
by 7.8%, following 7.5% growth in 2023. External sector activity in
1Q 2024 continued to be negatively affected by lower international
commodity prices, with domestic exports particularly hard hit
despite a mild recovery in ferro-alloy exports. Exports and imports
denominated in US dollars decreased by 9.3% and 5.3% YoY in 1Q
2024, respectively.
On a more positive note, tourism
revenues excluding Russia, Ukraine and Belarus increased by 30.8%
YoY in 1Q 2024, while overall tourism including migration impact
grew by 1.5%, given that migrants are gradually being counted as
residents by the NBG and hence excluded from the tourism sector.
Meanwhile, remittances fell 20.7%[3]
YoY in 1Q 2024, driven by a high base effect in
money transfers from Russia. Total FDI in 2023 decreased by 24.0%
YoY, due to very large liability repayments, however, reinvested
earnings and equity investments reached an all time high of USD 2.5
billion. Combined with a high contribution from investment in GDP
growth, this
points to continued positive momentum in both actual and potential
economic output.
Fiscal consolidation continues in
1Q
The government remains focused on
fiscal consolidation by reducing the budget deficit relative to
GDP. A sizable surplus was recorded in 1Q 2024, with the budget
balance[4] standing at 1.3% of GDP, while
the government targets 2.5% deficit for the full year, compared to
2.8% in 2023 and 3.0% in 2022.
Credit growth remains strong
Following 17.0% growth in 2023,
bank credit growth accelerated slightly to 17.2% YoY as of March
2024 at constant exchange rates[5]. At the same
time, as low and stable inflation persisted, YoY growth in real
credit also remained high at 16.6%. Credit growth remains stronger
for legal entities, increasing by 20.6% YoY, while lending to
individuals was up by 14.4% in 1Q 2024. The dedollarization of bank
lending continues, wth the share of FX loans slightly decreasing to
45.0% at the end of 1Q 2024 (down from 45.2% YTD).
Low inflation enables monetary policy easing
Despite substantial easing and
volatile market sentiment, the GEL, with support from still high
net currency inflows, remained almost unchanged against the USD
during 1Q 2024, standing at 2.69 at the end of March. Notably,
leveraging strong inflows, the NBG switched back to reserve
accumulation, purchasing USD 88 million in the first three months
of 2024.
CPI inflation stabilised well below the NBG's target of 3%, standing at 0.5%
YoY in March. However, domestic and service
inflation measures showed gradual acceleration. Nevertheless, low
overall inflation led the NBG to deliver two rate cuts in the first
quarter, reducing the monetary policy rate (MPR) to
8.25%.
Uzbekistan
Continued strong economic performance
Uzbekistan also continues to show
strong economic activity with 6.2%[6] real GDP
growth in 1Q 2024. However, the annual growth rates of external
trade decreased compared to the 4Q 2023 and amounted to
10.5%[7] for exports of goods and 1.8%
for imports, with the latter being affected by high base effect
related to a one-off. Retail credit growth remains robust at
40%6 YoY at end March, with mortgage credit expanding by
24% and non-mortgage credit by 53%.
Annual inflation decreased slightly
from 8.8% in December to 8.0%6 in March, with a more
pronounced deceleration evident when compared to 11.7% in March
2023. The CBU kept its monetary policy rate unchanged at 14.0% in
the first quarter. The UZS stood at 12,6206 relative to
the USD at the end of March 2024, depreciating by 2.3% in 1Q 2024,
while the REER (real effective exchange rate) remained broadly
stable.
Upgrading Georgian economic growth forecast
Given the strong start to 2024, we
recently upgraded our forecast for real GDP growth in Georgia to
6.4% (from 5.6%), while our projection for Uzbekistan stands at
5.6%.
More
information on the Georgian economy and financial sector can be
found at www.tbccapital.ge.
Unaudited consolidated financial results
overview for 1Q 2024
This statement provides a summary of the business and
financial trends for 1Q 2024 for TBC Bank Group plc and its
subsidiaries. The financial information and trends are
unaudited.
Please note that there might be slight differences in previous
periods' figures due to rounding.
Consolidated income statement and other comprehensive
income
In
thousands of GEL
|
1Q'24
|
4Q'23
|
1Q'23
|
Interest income
|
840,354
|
810,428
|
672,150
|
Interest expense
|
(397,510)
|
(368,693)
|
(305,359)
|
Net
interest income
|
442,844
|
441,735
|
366,791
|
Fee and commission income
|
179,488
|
192,341
|
151,801
|
Fee and commission expense
|
(75,185)
|
(82,242)
|
(59,363)
|
Net
fee and commission income
|
104,303
|
110,099
|
92,438
|
Insurance contract revenue
|
36,448
|
33,665
|
29,524
|
Reinsurance service result
|
1,172
|
1,161
|
(2,870)
|
Insurance service claims and expenses
incurred
|
(29,817)
|
(25,736)
|
(20,436)
|
Net
insurance income
|
7,803
|
9,090
|
6,218
|
Net gains from currency derivatives,
foreign currency operations and translation
|
61,469
|
68,228
|
60,601
|
Net gains from disposal of investment
securities measured at fair value through other comprehensive
income
|
233
|
8
|
2,012
|
Other operating income
|
1,369
|
10,372
|
3,905
|
Share of (loss)/profit of
associates
|
(41)
|
(256)
|
274
|
Other operating non-interest income
|
63,030
|
78,352
|
66,792
|
Credit loss allowance for loans to
customers
|
(43,900)
|
(40,640)
|
(50,040)
|
Credit loss (allowance)/recovery for
finance lease receivable
|
(2,046)
|
1,129
|
(1,073)
|
Credit loss (allowance)/recovery for
performance guarantees and credit related commitments
|
(394)
|
(612)
|
337
|
Credit loss recovery/(allowance) for
other financial assets
|
1,590
|
(4,890)
|
(1,954)
|
Credit loss allowance for financial
assets measured at fair value through other comprehensive
income
|
(335)
|
(407)
|
(296)
|
Net impairment of non-financial
assets
|
(46)
|
(2,059)
|
(142)
|
Operating income after expected credit and non-financial asset
impairment losses
|
572,849
|
591,797
|
479,071
|
Staff costs
|
(126,563)
|
(139,766)
|
(103,426)
|
Depreciation and
amortisation
|
(34,108)
|
(28,741)
|
(28,361)
|
Allowance of provision for
liabilities and charges
|
78
|
-
|
(71)
|
Administrative and other operating
expenses
|
(69,078)
|
(85,993)
|
(50,922)
|
Operating expenses
|
(229,671)
|
(254,500)
|
(182,780)
|
Profit before tax
|
343,178
|
337,297
|
296,291
|
Income tax expense
|
(46,707)
|
(45,856)
|
(41,331)
|
Profit for the period
|
296,471
|
291,441
|
254,960
|
Other comprehensive income, net of tax:
|
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
Movement in fair value reserve, net
of tax
|
21,351
|
1,491
|
8,036
|
Exchange differences on translation
to presentation currency
|
(13,733)
|
(2,065)
|
(5,166)
|
Net other movements
|
58
|
(33)
|
-
|
Other comprehensive expense for the period, net of
tax
|
7,676
|
(607)
|
2,870
|
Total comprehensive income for the period
|
304,147
|
290,834
|
257,830
|
Profit attributable to:
|
|
|
|
- Shareholders of
TBCG
|
292,805
|
287,699
|
248,668
|
- Non-controlling
interest
|
3,666
|
3,742
|
6,292
|
Profit for the period
|
296,471
|
291,441
|
254,960
|
Total comprehensive income is attributable
to:
|
|
|
|
- Shareholders of
TBCG
|
300,481
|
287,092
|
251,538
|
- Non-controlling
interest
|
3,666
|
3,742
|
6,292
|
Total comprehensive income for
the period
|
304,147
|
290,834
|
257,830
|
Consolidated balance sheet
In
thousands of GEL
|
Mar'24
|
Dec'23
|
Mar'23
|
ASSETS
|
|
|
|
Cash and cash equivalents
|
3,147,389
|
3,764,087
|
2,188,553
|
Due from other banks
|
24,296
|
47,941
|
38,738
|
Mandatory cash balances with National
Bank of Georgia and the Central Bank of Uzbekistan
|
1,557,221
|
1,577,074
|
1,817,145
|
Loans and advances to
customers
|
22,183,529
|
21,722,107
|
17,953,053
|
Investment securities measured at
fair value through other comprehensive income
|
3,875,799
|
3,475,461
|
3,047,598
|
Bonds carried at amortised
cost
|
73,098
|
73,963
|
30,967
|
Finance lease receivables
|
411,386
|
400,411
|
316,247
|
Investment properties
|
15,921
|
15,235
|
21,080
|
Investments in associates
|
3,493
|
4,204
|
4,095
|
Current income tax
prepayment
|
5,446
|
435
|
856
|
Deferred income tax asset
|
4,371
|
7,400
|
13,867
|
Other financial assets
|
311,427
|
280,268
|
258,135
|
Other assets
|
454,171
|
431,477
|
426,341
|
Premises and equipment
|
517,699
|
513,340
|
448,041
|
Right of use assets
|
126,880
|
120,077
|
112,977
|
Intangible assets
|
489,445
|
471,383
|
401,326
|
Goodwill
|
59,964
|
59,964
|
59,964
|
TOTAL ASSETS
|
33,261,535
|
32,964,827
|
27,138,983
|
LIABILITIES
|
|
|
|
Due to credit institutions
|
3,702,517
|
4,395,182
|
2,596,880
|
Customer accounts
|
20,838,768
|
20,375,498
|
17,297,630
|
Other financial
liabilities
|
636,939
|
358,522
|
345,017
|
Current income tax
liability
|
11,946
|
67,945
|
6,659
|
Deferred income tax
liability
|
53,315
|
50,957
|
114,300
|
Debt Securities in issue
|
1,501,651
|
1,426,174
|
1,324,815
|
Provision for liabilities and
charges
|
21,118
|
21,060
|
19,228
|
Other liabilities
|
116,323
|
123,218
|
67,024
|
Lease liabilities
|
99,501
|
91,879
|
79,989
|
Subordinated debt
|
1,050,191
|
868,730
|
583,678
|
Redemption liability
|
375,350
|
365,480
|
464,805
|
TOTAL LIABILITIES
|
28,407,619
|
28,144,645
|
22,900,025
|
EQUITY
|
|
|
|
Share capital
|
1,690
|
1,690
|
1,676
|
Shares held by trust
|
(45,675)
|
(75,609)
|
(37,239)
|
Share premium
|
295,605
|
295,605
|
261,719
|
Retained earnings
|
4,470,376
|
4,433,496
|
3,993,387
|
Merger reserve
|
402,862
|
402,862
|
402,862
|
Share based payment
reserve
|
(14,689)
|
23,677
|
(2,815)
|
Fair value reserve for investment
securities measured at fair value through other comprehensive
income
|
33,696
|
12,345
|
13,503
|
Cumulative currency translation
reserve
|
(54,737)
|
(44,824)
|
(41,024)
|
Other reserve
|
(375,320)
|
(365,513)
|
(464,805)
|
Equity attributable to owners of the parent
|
4,713,808
|
4,683,729
|
4,127,264
|
Non-controlling interest
|
140,108
|
136,453
|
111,694
|
TOTAL EQUITY
|
4,853,916
|
4,820,182
|
4,238,958
|
TOTAL LIABILITIES AND EQUITY
|
33,261,535
|
32,964,827
|
27,138,983
|
Ratios
Ratios (based on monthly averages, where
applicable)
|
1Q'24
|
4Q'23
|
1Q'23
|
Profitability ratios:
|
|
|
|
ROE1
|
25.1%
|
25.2%
|
25.2%
|
ROA2
|
3.6%
|
3.7%
|
3.6%
|
Cost to income3
|
37.2%
|
39.8%
|
34.3%
|
NIM4
|
6.5%
|
6.7%
|
6.4%
|
Loan yields5
|
12.7%
|
12.7%
|
12.4%
|
Deposit rates6
|
5.4%
|
5.1%
|
4.9%
|
Cost of
funding7
|
6.0%
|
5.7%
|
5.4%
|
Asset quality & portfolio concentration:
|
|
|
|
Cost of risk9
|
0.8%
|
0.8%
|
1.1%
|
PAR 90 to gross
loans9
|
1.2%
|
1.1%
|
1.3%
|
NPLs to gross
loans10
|
2.2%
|
2.0%
|
2.2%
|
NPL provision
coverage11
|
74.4%
|
79.8%
|
92.9%
|
Total NPL
coverage12
|
140.3%
|
146.3%
|
154.8%
|
Credit loss level to gross
loans13
|
1.6%
|
1.6%
|
2.0%
|
Related party loans to gross
loans14
|
0.1%
|
0.1%
|
0.1%
|
Top 10 borrowers to total
portfolio15
|
5.9%
|
6.2%
|
6.0%
|
Top 20 borrowers to total
portfolio16
|
8.8%
|
9.1%
|
9.0%
|
Capital & liquidity positions:
|
|
|
|
Net loans to deposits plus IFI
funding17
|
96.7%
|
96.1%
|
92.9%
|
Leverage (x)18
|
6.9x
|
6.8x
|
6.4x
|
Georgia
|
|
|
|
Net stable funding
ratio19
|
114.8%
|
119.9%
|
131.3%
|
Liquidity coverage
ratio20
|
114.6%
|
115.3%
|
135.7%
|
CET 1 CAR21
|
16.6%
|
17.4%
|
17.7%
|
Tier 1 CAR22
|
18.8%
|
19.6%
|
20.1%
|
Total 1 CAR23
|
21.5%
|
22.1%
|
22.2%
|
Uzbekistan
|
|
|
|
CET 1 CAR24
|
12.7%
|
15.4%
|
23.1%
|
Tier 1 CAR25
|
12.7%
|
15.4%
|
23.1%
|
Total 1 CAR26
|
16.2%
|
16.3%
|
23.6%
|
Funding and liquidity in Georgia
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Minimum net stable funding ratio, as defined by the
NBG
|
100.0%
|
100.0%
|
100.0%
|
0.0 pp
|
0.0 pp
|
Net stable funding ratio as defined
by the NBG
|
114.8%
|
119.9%
|
131.3%
|
-16.5 pp
|
-5.1 pp
|
|
|
|
|
|
|
Minimum total liquidity coverage ratio, as defined by the
NBG
|
100.0%
|
100.0%
|
100.0%
|
0.0 pp
|
0.0 pp
|
Minimum LCR in GEL, as defined by the NBG
|
75%
|
75.0%
|
75.0%
|
0.0 pp
|
0.0 pp
|
Minimum LCR in FC, as defined by the NBG
|
100.0%
|
100.0%
|
100.0%
|
0.0 pp
|
0.0 pp
|
|
|
|
|
|
|
Total liquidity coverage ratio, as
defined by the NBG
|
114.6%
|
115.3%
|
135.7%
|
-21.1 pp
|
-0.7 pp
|
LCR in GEL, as defined by the
NBG
|
114.8%
|
109.8%
|
164.2%
|
-49.4 pp
|
5.0 pp
|
LCR in FC, as defined by the
NBG
|
114.4%
|
120.1%
|
116.5%
|
-2.1 pp
|
-5.7 pp
|
Regulatory capital
Georgia
The capital ratios as of 31 March
2024 already account for the pending dividend payment
effect.
In
thousands of GEL
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
CET 1 capital
|
4,096,919
|
4,235,033
|
3,667,479
|
11.7%
|
-3.3%
|
Tier 1 capital
|
4,635,979
|
4,772,913
|
4,179,559
|
10.9%
|
-2.9%
|
Total capital
|
5,290,327
|
5,374,301
|
4,601,884
|
15.0%
|
-1.6%
|
Total risk-weighted assets
|
24,607,358
|
24,336,690
|
20,767,052
|
18.5%
|
1.1%
|
|
|
|
|
|
|
Minimum CET 1 ratio
|
14.5%
|
14.3%
|
14.3%
|
0.2 pp
|
0.2 pp
|
CET 1 capital adequacy
ratio
|
16.6%
|
17.4%
|
17.7%
|
-1.1 pp
|
-0.8 pp
|
|
|
|
|
|
|
Minimum Tier 1 ratio
|
16.8%
|
16.6%
|
16.7%
|
0.1 pp
|
0.2 pp
|
Tier 1 capital adequacy
ratio
|
18.8%
|
19.6%
|
20.1%
|
-1.3 pp
|
-0.8 pp
|
|
|
|
|
|
|
Minimum total capital adequacy ratio
|
19.9%
|
19.8%
|
19.7%
|
0.2 pp
|
0.1 pp
|
Total capital adequacy
ratio
|
21.5%
|
22.1%
|
22.2%
|
-0.7 pp
|
-0.6 pp
|
Uzbekistan
As of 31 March 2024, our capital
ratios for Uzbek bank decreased due to rapid growth in the loan
book.
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Minimum CET 1 ratio
|
8.0%
|
8.0%
|
8.0%
|
0.0 pp
|
0.0 pp
|
CET 1 capital adequacy
ratio
|
12.7%
|
15.4%
|
23.1%
|
-10.4 pp
|
-2.7 pp
|
|
|
|
|
|
|
Minimum Tier 1 ratio
|
10.0%
|
10.0%
|
10.0%
|
0.0 pp
|
0.0 pp
|
Tier 1 capital adequacy
ratio
|
12.7%
|
15.4%
|
23.1%
|
-10.4 pp
|
-2.7 pp
|
|
|
|
|
|
|
Minimum total capital adequacy ratio
|
13.0%
|
13.0%
|
13.0%
|
0.0 pp
|
0.0 pp
|
Total capital adequacy
ratio
|
16.2%
|
16.3%
|
23.6%
|
-7.4 pp
|
-0.1 pp
|
Loan portfolio
As of 31 March 2024, the gross loan
portfolio reached GEL 22,545.2 million, up by 23.1% YoY and 2.1%
QoQ, or up by 20.6% YoY and 2.6% QoQ on a constant currency
basis.
In 1Q 2024, our Georgian financial
services loan portfolio increased by 20.7% on a YoY and 1.6% on a
QoQ basis and reached GEL 21,594.0 million, with 17.9% YoY and 2.0%
QoQ growth on a constant currency basis. Over the same period, our
Uzbek portfolio increased more than doubled YoY and by 16.5% QoQ.
Quarterly growth translated into growth of 18.8% on a constant
currency basis.
In
thousands of GEL
Gross loans and advances to customers
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Georgian financial services (Georgia FS)*
|
21,594,026
|
21,257,692
|
17,896,929
|
20.7%
|
1.6%
|
Retail Georgia
|
7,682,858
|
7,513,229
|
6,739,925
|
14.0%
|
2.3%
|
CIB Georgia
|
8,419,450
|
8,283,723
|
6,512,092
|
29.3%
|
1.6%
|
MSME Georgia
|
5,506,736
|
5,480,822
|
4,663,394
|
18.1%
|
0.5%
|
Uzbekistan
|
928,553
|
796,930
|
407,993
|
127.6%
|
16.5%
|
Total gross loans and advances to
customers**
|
22,545,189
|
22,073,679
|
18,321,341
|
23.1%
|
2.1%
|
*
Georgian FS includes sub-segment eliminations
** Total gross
loans and advances to
customers include Azerbaijan loan
portfolio
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
Loan
yields
|
12.7%
|
12.7%
|
12.4%
|
0.3 pp
|
0.0 pp
|
GEL
|
14.1%
|
14.6%
|
14.9%
|
-0.8 pp
|
-0.5 pp
|
FC
|
8.6%
|
8.7%
|
8.2%
|
0.4 pp
|
-0.1 pp
|
UZS
|
43.2%
|
41.7%
|
43.6%
|
-0.4 pp
|
1.5 pp
|
Georgia FS
|
11.4%
|
11.7%
|
11.7%
|
-0.3 pp
|
-0.3 pp
|
GEL
|
14.1%
|
14.6%
|
14.9%
|
-0.8 pp
|
-0.5 pp
|
FC
|
8.6%
|
8.7%
|
8.2%
|
0.4 pp
|
-0.1 pp
|
Uzbekistan
|
43.2%
|
41.7%
|
43.6%
|
-0.4 pp
|
1.5 pp
|
UZS
|
43.2%
|
41.7%
|
43.6%
|
-0.4 pp
|
1.5 pp
|
Total loan yields*
|
12.7%
|
12.7%
|
12.4%
|
0.3 pp
|
0.0 pp
|
*
Total loans yields include Azerbaijan
Loan portfolio quality
PAR
90
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Georgia FS*
|
1.2%
|
1.1%
|
1.2%
|
0.0 pp
|
0.1 pp
|
Retail Georgia
|
0.8%
|
0.8%
|
1.1%
|
-0.3 pp
|
0.0 pp
|
CIB Georgia
|
0.7%
|
0.7%
|
0.8%
|
-0.1 pp
|
0.0 pp
|
MSME Georgia
|
2.5%
|
2.2%
|
2.2%
|
0.3 pp
|
0.3 pp
|
Uzbekistan
|
2.1%
|
1.9%
|
2.0%
|
0.1 pp
|
0.2 pp
|
Total PAR 90**
|
1.2%
|
1.1%
|
1.3%
|
-0.1 pp
|
0.1 pp
|
*
Georgian FS includes sub-segment eliminations
** Total PAR 90
includes Azerbaijan
In
thousands of GEL Non-performing Loans
(NPL)
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Georgia FS*
|
466,110
|
425,061
|
386,474
|
20.6%
|
9.7%
|
Retail Georgia
|
125,625
|
127,102
|
138,234
|
-9.1%
|
-1.2%
|
CIB Georgia
|
137,849
|
114,130
|
88,830
|
55.2%
|
20.8%
|
MSME Georgia
|
202,636
|
183,829
|
159,410
|
27.1%
|
10.2%
|
Uzbekistan
|
19,222
|
15,006
|
8,176
|
135.1%
|
28.1%
|
Total non-performing loans**
|
486,058
|
440,750
|
396,433
|
22.6%
|
10.3%
|
*
Georgian FS includes sub-segment eliminations
** Total
non-performing loans include Azerbaijan NPLs
NPL
to gross loans
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Georgia FS*
|
2.2%
|
2.0%
|
2.2%
|
0.0 pp
|
0.2 pp
|
Retail Georgia
|
1.6%
|
1.7%
|
2.1%
|
-0.5 pp
|
-0.1 pp
|
CIB Georgia
|
1.6%
|
1.4%
|
1.4%
|
0.2 pp
|
0.2 pp
|
MSME Georgia
|
3.7%
|
3.4%
|
3.4%
|
0.3 pp
|
0.3 pp
|
Uzbekistan
|
2.1%
|
1.9%
|
2.0%
|
0.1 pp
|
0.2 pp
|
Total NPL to gross loans**
|
2.2%
|
2.0%
|
2.2%
|
0.0 pp
|
0.2 pp
|
*
Georgian FS includes sub-segment eliminations
** Total NPL to
gross loans include Azerbaijan NPLs
|
Mar'24
|
Dec'23
|
Mar'23
|
NPL
Coverage
|
Provision
Coverage
|
Total
Coverage***
|
Provision
Coverage
|
Total
Coverage***
|
Provision
Coverage
|
Total
Coverage***
|
Georgia FS*
|
68.1%
|
136.6%
|
73.4%
|
142.2%
|
89.7%
|
152.1%
|
Retail Georgia
|
121.3%
|
183.6%
|
120.4%
|
179.5%
|
143.3%
|
188.1%
|
CIB Georgia
|
44.0%
|
105.2%
|
46.9%
|
110.6%
|
51.5%
|
114.6%
|
MSME Georgia
|
51.5%
|
128.8%
|
57.5%
|
136.0%
|
64.6%
|
140.9%
|
Uzbekistan
|
220.8%
|
220.8%
|
222.3%
|
222.3%
|
189.7%
|
189.7%
|
Total NPL coverage**
|
74.4%
|
140.3%
|
79.8%
|
146.3%
|
92.9%
|
154.8%
|
* Georgian FS includes
sub-segment eliminations
** Total NPL coverage
include Azerbaijan loans coverage
** Total NPL coverage ratio
includes provision and collateral coverage
Cost
of risk (CoR)
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
Georgia FS*
|
0.7%
|
0.6%
|
1.0%
|
-0.3 pp
|
0.1 pp
|
Retail Georgia
|
1.1%
|
0.1%
|
1.4%
|
-0.3 pp
|
1.0 pp
|
CIB Georgia
|
0.4%
|
0.3%
|
-0.1%
|
0.5 pp
|
0.1 pp
|
MSME Georgia
|
0.7%
|
1.8%
|
2.1%
|
-1.4 pp
|
-1.1 pp
|
Uzbekistan
|
5.5%
|
4.9%
|
5.6%
|
-0.1 pp
|
0.6 pp
|
Total cost of risk**
|
0.8%
|
0.8%
|
1.1%
|
-0.3 pp
|
0.0 pp
|
*
Georgian FS includes sub-segment eliminations
** Total cost of
risk includes Azerbaijan CoR
Deposit portfolio
As of 31 March 2024, deposit
portfolio reached GEL 20,838.8 million, up by 20.5% YoY and 2.3%
QoQ, or up by 17.9% YoY and 2.5% QoQ on a constant currency
basis.
In 1Q 2024, our Georgian financial
services deposit portfolio increased by 19.2% on a YoY and 1.6% on
a QoQ basis and reached GEL 20,219.9 million, with 16.4% YoY and
1.7% QoQ growth on a constant currency basis. Over the same period,
our Uzbek portfolio almost doubled YoY and by 13.0% QoQ. The
quarterly increase was translated into growth of 15.2% on a
constant currency basis.
In
thousands of GEL
Customer accounts
|
Mar'24
|
Dec'23
|
Mar'23
|
Change YoY
|
Change QoQ
|
Georgia FS*
|
20,219,932
|
19,900,342
|
16,958,444
|
19.2%
|
1.6%
|
Retail Georgia
|
7,498,419
|
7,469,587
|
6,455,890
|
16.1%
|
0.4%
|
CIB Georgia
|
9,833,975
|
10,200,321
|
8,431,537
|
16.6%
|
-3.6%
|
MSME Georgia
|
1,869,140
|
1,900,459
|
1,593,375
|
17.3%
|
-1.6%
|
MOF
|
1,110,024
|
515,079
|
609,283
|
82.2%
|
115.5%
|
Uzbekistan
|
657,190
|
581,483
|
374,429
|
75.5%
|
13.0%
|
Total customer accounts**
|
20,838,768
|
20,375,498
|
17,297,630
|
20.5%
|
2.3%
|
* Georgian FS includes
sub-segment eliminations
** Total customer accounts
are adjusted for eliminations
|
1Q'24
|
4Q'23
|
1Q'23
|
Change YoY
|
Change QoQ
|
Deposit rates
|
5.4%
|
5.1%
|
4.9%
|
0.5 pp
|
0.3 pp
|
GEL
|
8.0%
|
8.1%
|
8.8%
|
-0.8 pp
|
-0.1 pp
|
FC
|
1.3%
|
1.1%
|
0.7%
|
0.6 pp
|
0.2 pp
|
UZS
|
25.5%
|
25.0%
|
25.4%
|
0.1 pp
|
0.5 pp
|
Georgian financial services
|
4.8%
|
4.5%
|
4.5%
|
0.3 pp
|
0.3 pp
|
GEL
|
8.0%
|
8.1%
|
8.8%
|
-0.8 pp
|
-0.1 pp
|
FC
|
1.3%
|
1.1%
|
0.7%
|
0.6 pp
|
0.2 pp
|
Uzbek business
|
25.4%
|
24.9%
|
25.3%
|
0.1 pp
|
0.5 pp
|
FC
|
3.7%
|
3.8%
|
4.9%
|
-1.2 pp
|
-0.1 pp
|
UZS
|
25.5%
|
25.0%
|
25.4%
|
0.1 pp
|
0.5 pp
|
Total deposit rates*
|
5.4%
|
5.1%
|
4.9%
|
0.5 pp
|
0.3 pp
|
*
Total deposits rates include MOF deposits
Additional information
1)
Financial disclosures by business lines
Business line definitions
According to the updated segment
definition starting from 1 January 2023, the operating segments are
defined as follows:
· Georgian financial services
(GFS) - include JSC TBC Bank with
its Georgian subsidiaries and JSC TBC Insurance with its
subsidiary. The Georgia financial service segment consists of three
major business sub-segments, while the treasury, leasing and
insurance businesses are combined into the corporate and other
sub-segments:
o Corporate and investment
banking (CIB) - a legal entity/group
of affiliated entities with an annual revenue exceeding GEL 20
million or which has been granted facilities of more than GEL 7.5
million. Some other business customers may also be assigned to the
CIB segment or transferred to the micro, small and medium
enterprises segment on a discretionary basis. In addition, CIB
includes Wealth Management private banking services to
high-net-worth individuals with a threshold of USD 250,000 on
assets under management (AUM), as well as on discretionary
basis;
o Retail
- non-business individual customers;
o Micro, small and medium
enterprises (MSME) - business
customers who are not included in the CIB sub-segment.
· Uzbekistan
- TBC Bank Uzbekistan with respective subsidiaries
and Payme (Inspired LLC).
· Other
- includes non-material or non-financial
subsidiaries of the group and intra-group eliminations.
Income statement and other comprehensive income by business
lines as of 1Q 2024
In
thousands of GEL
|
Georgia FS
|
Uzbekistan
|
Other**
|
Group
|
Interest income
|
736,833
|
101,324
|
2,197
|
840,354
|
Interest expense*
|
(351,165)
|
(47,028)
|
683
|
(397,510)
|
Net
interest income
|
385,668
|
54,296
|
2,880
|
442,844
|
Fee and commission income
|
148,492
|
28,073
|
2,923
|
179,488
|
Fee and commission expense
|
(67,249)
|
(7,899)
|
(37)
|
(75,185)
|
Net
fee and commission income
|
81,243
|
20,174
|
2,886
|
104,303
|
Net insurance income
|
7,976
|
-
|
(173)
|
7,803
|
Net gains/(losses) from currency
derivatives, foreign currency operations and translation
|
64,629
|
(426)
|
(2,734)
|
61,469
|
Net gains from disposal of investment
securities measured at fair value through other comprehensive
income
|
233
|
-
|
-
|
233
|
Other operating income
|
1,319
|
1
|
49
|
1,369
|
Share of loss of
associates
|
(41)
|
-
|
-
|
(41)
|
Other operating non-interest income
|
74,116
|
(425)
|
(2,858)
|
70,833
|
Credit loss (allowance)/recovery for
loans to customers
|
(36,825)
|
(11,753)
|
4,678
|
(43,900)
|
Credit loss allowance for finance
lease receivable
|
(1,548)
|
(403)
|
(95)
|
(2,046)
|
Credit loss allowance for performance
guarantees and credit related commitments
|
(394)
|
-
|
-
|
(394)
|
Credit loss recovery/(allowance) for
other financial assets
|
1,710
|
(120)
|
-
|
1,590
|
Credit loss allowance for financial
assets measured at fair value through other comprehensive
income
|
(335)
|
-
|
-
|
(335)
|
Net impairment of non-financial
assets
|
(23)
|
-
|
(23)
|
(46)
|
Operating income after expected credit and non-financial asset
impairment losses
|
503,612
|
61,769
|
7,468
|
572,849
|
Staff costs
|
(101,240)
|
(12,974)
|
(12,349)
|
(126,563)
|
Depreciation and
amortisation
|
(29,265)
|
(2,759)
|
(2,084)
|
(34,108)
|
Allowance of provision for
liabilities and charges
|
78
|
-
|
-
|
78
|
Administrative and other operating
expenses
|
(44,842)
|
(24,635)
|
399
|
(69,078)
|
Operating expenses
|
(175,269)
|
(40,368)
|
(14,034)
|
(229,671)
|
Profit before tax
|
328,343
|
21,401
|
(6,566)
|
343,178
|
Income tax expense
|
(43,704)
|
(2,964)
|
(39)
|
(46,707)
|
Profit for the period
|
284,639
|
18,437
|
(6,605)
|
296,471
|
Profit attributable to:
|
|
|
|
|
- Shareholders of
TBCG
|
284,634
|
18,437
|
(10,266)
|
292,805
|
- Non-controlling
interest
|
5
|
-
|
3,661
|
3,666
|
Profit for the period
|
284,639
|
18,437
|
(6,605)
|
296,471
|
*
Interest expense includes net interest gains from currency
swaps
**
Includes Azerbaijan, TNET, other subsidiaries and intra-group
eliminations
Balance sheet by business lines as of 31 March
2024
In
thousands of GEL
|
Georgia FS
|
Uzbekistan
|
Other*
|
Group
|
ASSETS
|
|
|
|
|
Cash and cash equivalents
|
2,969,683
|
185,828
|
(8,122)
|
3,147,389
|
Due from other banks
|
24,268
|
-
|
28
|
24,296
|
Mandatory cash balances with
National Bank of Georgia and the Central Bank of
Uzbekistan
|
1,552,123
|
5,098
|
-
|
1,557,221
|
Loans and advances to
customers
|
21,276,764
|
886,119
|
20,646
|
22,183,529
|
Investment securities measured at
fair value through other comprehensive income
|
3,875,799
|
-
|
-
|
3,875,799
|
Bonds carried at amortised
cost
|
13,969
|
59,129
|
-
|
73,098
|
Finance lease receivables
|
364,757
|
39,142
|
7,487
|
411,386
|
Investment properties
|
15,921
|
-
|
-
|
15,921
|
Investments in associates
|
18,106
|
-
|
(14,613)
|
3,493
|
Current income tax
prepayment
|
5,201
|
-
|
245
|
5,446
|
Deferred income tax asset
|
-
|
3,966
|
405
|
4,371
|
Other financial assets
|
292,776
|
42,004
|
(23,353)
|
311,427
|
Other assets
|
428,817
|
20,645
|
4,709
|
454,171
|
Premises and equipment
|
495,328
|
16,070
|
6,301
|
517,699
|
Right of use assets
|
118,386
|
4,663
|
3,831
|
126,880
|
Intangible assets
|
367,873
|
32,078
|
89,494
|
489,445
|
Goodwill
|
28,197
|
1,912
|
29,855
|
59,964
|
TOTAL ASSETS
|
31,847,968
|
1,296,654
|
116,913
|
33,261,535
|
LIABILITIES
|
|
|
|
|
Due to credit
institutions
|
3,601,828
|
183,940
|
(83,251)
|
3,702,517
|
Customer accounts
|
20,219,932
|
657,190
|
(38,354)
|
20,838,768
|
Other financial
liabilities
|
725,674
|
42,185
|
(130,920)
|
636,939
|
Current income tax
liability
|
11,774
|
-
|
172
|
11,946
|
Deferred income tax
liability
|
53,315
|
-
|
-
|
53,315
|
Debt Securities in issue
|
1,286,535
|
-
|
215,116
|
1,501,651
|
Provision for liabilities and
charges
|
21,118
|
-
|
-
|
21,118
|
Other liabilities
|
70,858
|
43,336
|
2,129
|
116,323
|
Lease liabilities
|
90,136
|
5,950
|
3,415
|
99,501
|
Subordinated debt
|
1,050,650
|
43,151
|
(43,610)
|
1,050,191
|
Redemption liability
|
-
|
-
|
375,350
|
375,350
|
TOTAL LIABILITIES
|
27,131,820
|
975,752
|
300,047
|
28,407,619
|
EQUITY
|
|
|
|
|
Share capital
|
29,148
|
331,684
|
(359,142)
|
1,690
|
Shares held by trust
|
-
|
-
|
(45,675)
|
(45,675)
|
Share premium
|
521,190
|
35,723
|
(261,308)
|
295,605
|
Retained earnings
|
4,217,188
|
(4,828)
|
258,016
|
4,470,376
|
Merger reserve
|
-
|
67
|
402,795
|
402,862
|
Share based payment
reserve
|
(85,276)
|
-
|
70,587
|
(14,689)
|
Fair value reserve for investment
securities measured at fair value through other comprehensive
income
|
33,696
|
-
|
-
|
33,696
|
Cumulative currency translation
reserve
|
-
|
(41,746)
|
(12,991)
|
(54,737)
|
Other reserves
|
-
|
2
|
(375,322)
|
(375,320)
|
Equity attributable to owners of the
parent
|
4,715,946
|
320,902
|
(323,040)
|
4,713,808
|
Non-controlling interest
|
202
|
-
|
139,906
|
140,108
|
TOTAL EQUITY
|
4,716,148
|
320,902
|
(183,134)
|
4,853,916
|
TOTAL LIABILITIES AND
EQUITY
|
31,847,968
|
1,296,654
|
116,913
|
33,261,535
|
*
Includes Azerbaijan, TNET, other subsidiaries and intra-group
eliminations
Key ratios by business lines
1Q'24
|
Georgia FS
|
Uzbekistan
|
Group
|
Profitability ratios:
|
|
|
|
ROE1
|
24.0%
|
23.7%
|
25.1%
|
ROA2
|
3.6%
|
6.5%
|
3.6%
|
Cost to income3
|
32.4%
|
54.5%
|
37.2%
|
NIM4
|
5.9%
|
23.6%
|
6.5%
|
Loan yields5
|
11.4%
|
43.2%
|
12.7%
|
Deposit rates6
|
4.8%
|
25.4%
|
5.4%
|
Cost of
funding7
|
5.4%
|
24.1%
|
6.0%
|
|
|
|
|
Asset quality & portfolio concentration:
|
|
|
|
Cost of risk8
|
0.7%
|
5.5%
|
0.8%
|
PAR 90 to gross
loans9
|
1.2%
|
2.1%
|
1.2%
|
NPLs to gross
loans10
|
2.2%
|
2.1%
|
2.2%
|
NPL provision
coverage11
|
68.1%
|
220.8%
|
74.4%
|
Total NPL
coverage12
|
136.6%
|
220.8%
|
140.3%
|
For the ratio definitions and
exchange rates, please refer to appendix 3.
2) Glossary
Terminology
|
Definition
|
BVPS
|
Book value per share
|
CBU
|
Central Bank of Uzbekistan
|
Consumer loans
|
Unsecured loans to
individuals
|
Digital daily active users (Digital
DAU)
|
The number of retail digital users,
who logged into our digital channels at least once per
day
|
Digital monthly active users
(Digital MAU)
|
The number of retail digital users,
who logged into our digital channels at least once a
month
|
EPS
|
Earnings per share
|
Gross merchandise value
(GMV)
|
GMV equals the total value of sales
over the given period, including auctions through housing
and auto platforms, as
well as listing fees
|
Monthly active customers
|
For Georgian business, an individual
user who has at least one active product as of the reporting date
or performed at least one transaction during the past month. For
Uzbek business, an individual user who logged into the digital
application at least once during the month
|
NBG
|
National Bank of Georgia
|
3) Ratio
definitions and exchange rates
Ratio definitions
1. Return on average total equity
(ROE) equals profit attributable to owners divided by the monthly
average of total shareholders' equity attributable to the PLC's
equity holders for the same period; annualised where
applicable.
2. Return on average total assets
(ROA) equals profit of the period divided by monthly average total
assets for the same period; annualised where applicable.
3. Cost to income ratio equals
total operating expenses for the period divided by the total
revenue for the same period. (Revenue represents the sum of net
interest income, net fee and commission income and other
non-interest income).
4. Net interest margin (NIM) is net
interest income divided by monthly average interest-earning assets;
annualised where applicable. Interest-earning assets include
investment securities (excluding CIB shares), net investment in
finance lease, net loans, and amounts due from credit
institutions.
5. Loan yields equal interest
income on loans and advances to customers divided by monthly
average gross loans and advances to customers; annualised where
applicable.
6. Deposit rates equal interest
expense on customer accounts divided by monthly average total
customer deposits; annualised where applicable.
7. Cost of funding equals sum of
the total interest expense and net interest gains on currency swaps
(entered for funding management purposes), divided by monthly
average interest-bearing liabilities; annualised where
applicable.
8. Cost of risk equals credit loss
allowance for loans to customers divided by monthly average gross
loans and advances to customers; annualised where
applicable.
9. PAR 90 to gross loans ratio
equals loans for which principal or interest repayment is overdue
for more than 90 days divided by the gross loan portfolio for the
same period.
10. NPLs to gross loans equals
loans with 90 days past due on principal or interest payments, and
loans with a well-defined weakness, regardless of the existence of
any past-due amount or of the number of days past due divided by
the gross loan portfolio for the same period.
11. NPL provision coverage equals
total credit loss allowance for loans to customers divided by the
NPL loans.
12. Total NPL coverage equals total
credit loss allowance plus the minimum of collateral amount of the
respective NPL loan (after applying haircuts in the range of 0%-50%
for cash, gold, real estate and PPE) and its gross loan exposure
divided by the gross exposure of total NPL loans.
13. Credit loss level to gross loans
equals credit loss allowance for loans to customers divided by the
gross loan portfolio for the same period.
14. Related party loans to total
loans equals related party loans divided by the gross loan
portfolio.
15. Top 10 borrowers to total
portfolio equals the total loan amount of the top 10 borrowers
divided by the gross loan portfolio.
16. Top 20 borrowers to total
portfolio equals the total loan amount of the top 20 borrowers
divided by the gross loan portfolio.
17. Net loans to deposits plus IFI
funding ratio equals net loans divided by total deposits plus
borrowings received from international financial
institutions.
18. Leverage equals total assets to
total equity.
19. Net stable funding ratio equals
the available amount of stable funding divided by the required
amount of stable funding as defined by NBG in line with Basel III
guidelines. Calculations are made for TBC Bank
standalone.
20. Liquidity coverage ratio equals
high-quality liquid assets divided by the total net cash outflow
amount as defined by the NBG. Calculations are made for TBC Bank
standalone.
21. CET 1 CAR equals CET 1 capital
divided by total risk weighted assets, both calculated in
accordance with requirements of the NBG Basel III standards.
Calculations are made for TBC Bank standalone.
22. Tier 1 CAR equals tier I capital
divided by total risk weighted assets, both calculated in
accordance with the requirements of the NBG Basel III standards.
Calculations are made for TBC Bank standalone.
23. Total CAR equals total capital
divided by total risk weighted assets, both calculated in
accordance with the requirements of the NBG Basel III standards.
Calculations are made for TBC Bank standalone.
24. CET 1 CAR equals CET 1 capital
divided by total risk weighted assets, both calculated in
accordance with requirements of the CBU in national accounting
standards. Calculations are made for TBC UZ Bank
standalone.
25. Tier 1 CAR equals tier I capital
divided by total risk weighted assets, both calculated in
accordance with the requirements of the CBU in national accounting
standards. Calculations are made for TBC UZ Bank
standalone.
26. Total CAR equals total capital
divided by total risk weighted assets, both calculated in
accordance with the requirements of the CBU in national accounting
standards. Calculations are made for TBC UZ Bank
standalone.
Exchange rates
To calculate the QoQ growth of the
balance sheet items without the currency exchange rate effect, we
used the USD/GEL exchange rate of 2.6894 as of 31 December 2023. To
calculate the YoY growth without the currency exchange rate effect,
we used the USD/GEL exchange rate of 2.5604 as of 31 March 2023. As
of 31 March 2024, the USD/GEL exchange rate equalled 2.6953. For
P&L items growth calculations without the currency effect, we
used the average USD/GEL exchange rate for the following periods:
4Q 2023 of 26943 and 1Q 2023 of 2.6372. As of 1Q 2024, the USD/GEL
exchange rate equalled 2.6713.