TIDMTBCG
RNS Number : 8302S
TBC Bank Group PLC
09 November 2023
TBC BANK GROUP PLC ("TBC Bank")
3Q AND 9M 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.
3Q and 9M 2023 Consolidated Financial Results Conference Call
Details
TBC Bank Group PLC ("TBC PLC") published its unaudited
consolidated financial results for the third quarter and nine
months of 2023 on Thursday, 9 November 2023 at 7.00 am GMT. The
management team will host a conference call on the day at 2.00 pm
GMT to discuss the results.
Please click the link below to join the webinar:
https://tbc.zoom.us/j/94193458741?pwd=VVVnTXgreTJ5KzdsR0o4MEFIdGtlUT09
Webinar ID: 941 9345 8741
Passcode: 083467
Other international numbers are available at: https://tbc.zoom.us/u/ad7INMhaeO
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 Anna Romelashvili Investor Relations
Director of Investor Head of Investor Relations Department
Relations and International
Media
E-mail: IR@tbcbank.com.ge
E-mail: AKeeley@tbcbank.com.ge Tel: +(995 32) 227 E-mail: IR@tbcbank.com.ge
Tel: +44 (0) 7791 569834 27 27 Tel: +(995 32) 227 27
Web: www.tbcbankgroup.com Web: www.tbcbankgroup.com 27
Web: www.tbcbankgroup.com
Table of Contents
3Q and 9M 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 3Q
2023
Unaudited Consolidated Financial Results Overview for 9M
2023
Additional Disclosures
1) TBC Bank - Background
2) Consolidated Financial Statements and Key Ratios 3Q 2023
3) Consolidated Financial Statements and Key Ratios 9M 2023
4) Business Line Definition
5) Financial Disclosures by Business Lines
6) Market shares in Georgia
7) Subsidiaries of TBC Bank Group PLC
8) Impact of Changed Accounting Treatment for Option Contracts
9) Replacement of IFRS 4 with IFRS 17
10)Loan Book Breakdown by Stages According IFRS 9
11)Glossary
12)Ratio Definitions and Exchange Rates
3Q and 9M 2023 Unaudited Consolidated Financial Results
3Q 2023 net profit of GEL 300 million, down by 6% YoY, with ROE
at 27.6%.
9M 2023 net profit of GEL 849 million, up by 9% YoY, with ROE at
27.0%.
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
3Q'23 2Q'23 3Q'22 Change Change 9M'23 9M'22 Change
in thousands of GEL YoY QoQ YoY
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Net interest income 427,934 399,338 340,415 25.7% 7.2% 1,194,063 932,606 28.0%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Net fee and commission
income 104,152 105,636 85,872 21.3% -1.4% 302,226 227,334 32.9%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Other operating non-interest
income 83,133 81,792 163,344 -49.1% 1.6% 237,935 306,592 -22.4%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Operating profit 615,219 586,766 589,631 4.3% 4.8% 1,734,224 1,466,532 18.3%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Total credit loss allowance (46,159) (33,934) (48,256) -4.3% 36.0% (133,261) (99,846) 33.5%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Operating expenses (218,087) (203,560) (176,240) 23.7% 7.1% (604,427) (490,825) 23.1%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Profit before tax 350,973 349,272 365,135 -3.9% 0.5% 996,536 875,861 13.8%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Income tax expense (50,485) (56,186) (44,115) 14.4% -10.1% (148,002) (96,296) 53.7%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Profit for the period 300,488 293,086 321,020 -6.4% 2.5% 848,534 779,565 8.8%
------------------------------ ---------- ---------- ---------- ------- ------- ---------- ---------- -------
Balance sheet
in thousands of GEL Change Change
Sep'23 Jun'23 Sep'22 YoY QoQ
----------------------- ----------- ----------- ----------- ------- -------
Total Assets 29,956,393 28,878,826 27,631,688 8.4% 3.7%
Gross Loans 20,365,135 19,360,689 17,365,894 17.3% 5.2%
Customer Deposits 18,722,415 18,992,492 17,115,022 9.4% -1.4%
Total Equity 4,473,400 4,331,529 3,879,676 15.3% 3.3%
CET 1 Capital (Basel
III) per IFRS 3,966,901 3,920,004 n/a n/a 1.2%
Tier 1 Capital (Basel
III) per IFRS 4,502,561 4,443,544 n/a n/a 1.3%
Total Capital (Basel
III) per IFRS 5,058,696 4,947,830 n/a n/a 2.2%
Risk Weighted Assets
(Basel III) per IFRS 22,668,335 21,452,808 n/a n/a 5.7%
Number of shares 55,140,216 55,140,216 55,479,420 -0.6% 0.0%
----------------------- ----------- ----------- ----------- ------- -------
Key Ratios
Change Change Change
3Q'23 2Q'23 3Q'22 YoY QoQ 9M'23 9M'22 YoY
-------------------------- ------- ------- ------- ------- ------- ------- ------- -------
-6.0 -0.5 -1.6
ROE 27.6% 28.1% 33.6% pp pp 27.0% 28.6% pp
-6.1 -1.4 -2.0
ROE - Georgia FS 26.4% 27.8% 32.5% pp pp 25.9% 27.9% pp
-0.7 -0.1 -0.1
ROA 4.1% 4.2% 4.8% pp pp 4.0% 4.1% pp
-0.8 -0.3 -0.2
ROA - Georgia FS 4.2% 4.5% 5.0% pp pp 4.1% 4.3% pp
0.6 0.1 0.8
NIM 6.9% 6.8% 6.3% pp pp 6.7% 5.9% pp
5.5 0.7 1.4
Cost to income 35.4% 34.7% 29.9% pp pp 34.9% 33.5% pp
Cost to income - Georgia 5.8 1.3 2.1
FS 31.5% 30.2% 25.7% pp pp 30.7% 28.6% pp
-0.1 0.3 0.2
Cost of risk 0.9% 0.6% 1.0% pp pp 0.9% 0.7% pp
-0.3 -0.1 -0.3
NPL to gross loans 2.0% 2.1% 2.3% pp pp 2.0% 2.3% pp
NPL provision coverage -12.0 -1.7 -12.0
ratio 87.6% 89.3% 99.6% pp pp 87.6% 99.6% pp
-12.6 -2.1 -12.6
Total NPL coverage ratio 151.6% 153.7% 164.2% pp pp 151.6% 164.2% pp
CET 1 CAR (Basel III) -0.8
per IFRS 17.5% 18.3% n/a n/a pp 17.5% n/a n/a
Tier 1 CAR (Basel III) -0.8
per IFRS 19.9% 20.7% n/a n/a pp 19.9% n/a n/a
Total CAR (Basel III) -0.8
per IFRS 22.3% 23.1% n/a n/a pp 22.3% n/a n/a
Leverage (Times) 6.7x 6.7x 7.1x -0.4x 0x 6.7x 7.1x -0.4x
EPS (GEL) 5.54 5.33 5.82 -4.8% 3.9% 15.44 14.19 8.8%
Diluted EPS (GEL) 5.45 5.25 5.74 -5.1% 3.8% 15.22 14.00 8.7%
BVPS (GEL) 80.81 78.21 69.18 16.8% 3.3% 80.81 69.18 16.8%
-------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Georgia FS refers to Georgian financial services.
For the ratio definitions please refer to appendix 12.
Operational Highlights
Customer base
In millions Sep'23 Jun'23 Sep'22 Change Change
YoY QoQ
---------------------------- ------- ------- ------- ------- -------
Total number of registered
users 17.3 16.1 12.4 40% 7%
---------------------------- ------- ------- ------- ------- -------
Georgia 3.2 3.2 3.0 7% 0%
---------------------------- ------- ------- ------- ------- -------
Uzbekistan 14.1 12.9 9.4 50% 9%
---------------------------- ------- ------- ------- ------- -------
Total MAU 5.3 5.1 3.9 36% 4%
---------------------------- ------- ------- ------- ------- -------
Georgia 1.6 1.6 1.4 14% 0%
Uzbekistan 3.7 3.5 2.5 48% 6%
---------------------------- ------- ------- ------- ------- -------
Digital customers
In thousands Sep'23 Jun'23 Sep'22 Change Change
YoY QoQ
------------------------- ------- ------- ------- ------- -------
Digital DAU Georgia 384 381 319 20% 1%
Digital MAU Georgia 874 849 735 19% 3%
Digital DAU/MAU Georgia 44% 45% 43% 1 pp -1 pp
Digital DAU Group 1,436 1,434 1,073 34% 0%
Digital MAU Group 4,519 4,295 3,172 42% 5%
Digital DAU/MAU Group 32% 33% 34% -2 pp -1 pp
------------------------- ------- ------- ------- ------- -------
Uzbekistan - key highlights
In thousands of GEL Sep'23 Jun'23 Sep'22 Change Change
YoY QoQ
--------------------- -------- -------- -------- ------- -------
Gross loans 632,013 526,843 268,976 NMF 20.0%
Customer accounts 515,586 457,340 296,563 73.9% 12.7%
--------------------- -------- -------- -------- ------- -------
3Q'23 2Q'23 Change 9M'23
QoQ
----------------------------- ------- ------- ------- -------
Net profit (GEL, thousands) 13,684 12,505 9.4% 38,896
----------------------------- ------- ------- ------- -------
ROE 23.4% 22.1% 1.3 pp 24.6%
----------------------------- ------- ------- ------- -------
Georgian and Uzbek payments businesses
In millions of GEL 3Q'23 2Q'23 3Q'22 Change Change 9M'23 9M'22 Change
YoY QoQ YoY
-------------------------- ------ ------ ------ ------- ------- ------ ------ -------
Net revenue - Georgia 69.5 71.0 59.5 16.8% -2.1% 201.6 153.5 31.3%
Net revenue - Uzbekistan
(Payme) 16.9 16.8 12.0 40.8% 0.6% 50.2 33.5 49.9%
-------------------------- ------ ------ ------ ------- ------- ------ ------ -------
TNET - digital lifestyle platform in Georgia
In millions 3Q'23 2Q'23 3Q'22 Change Change 9M'23 9M'22 Change
YoY QoQ YoY
------------------------- ------ ------ ------ ------- ------- ------ ------ -------
Gross merchandise value
(GMV, GEL) 44.8 52.8 28.5 57.2% -15.2% 128.0 71.4 79.3%
Number of transactions 3.7 4.2 2.9 27.6% -11.9% 11.3 8.8 28.4%
------------------------- ------ ------ ------ ------- ------- ------ ------ -------
Letter from the Chief Executive Officer [1]
I am pleased to announce that 3Q 2023 has been another very
strong and consistent quarter for TBC, helping us deliver an
excellent result for our shareholders for the first nine months of
the year. Our net profit for the third quarter amounted to GEL 300
million, up by 3% quarter-on-quarter, while our return on equity
stood at a very impressive 27.6%. For 9M 2023, our net profit
totaled GEL 849 million, a 9% year-on-year increase, while return
on equity came in at 27.0% .
I am glad to share that it was another positive quarter of
dynamic growth and continuing profitability for our fintech
businesses in Uzbekistan, bringing 9M 2023 net profit to GEL 39
million, accounting for 5% of the Group's earnings, and with the
loan book now contributing an 8% share of total group retail
loans.
I also want to mention the appointment of Oliver Hughes, former
CEO of Tinkoff Group, in September as head of international
operations. We are delighted to welcome such a high calibre
addition to the executive management team and we think Oliver, Nika
and the team in Tashkent can take our Uzbekistan operations to a
new level in the coming years.
The economic backdrop remains supportive
The Georgian economy continues to post very strong growth, with
GDP expanding by 5.4% in the third quarter of 2023 and 6.8% in 9M
2023. Importantly, large central bank and fiscal buffers continue
to be accumulated. Uzbekistan's economic performance also remains
impressive, with 6.1% GDP growth in 3Q 2023 and 5.8% in the first
nine months of 2023. While inflation in Georgia is already below
target, we are also seeing deceleration in Uzbekistan, suggesting
that both countries are in easing cycles, which should be
supportive for the economic outlook.
Our strong financial and operating performance continued in 3Q
2023
We continue to see very strong core revenue dynamics. In 3 Q
2023, our operating income reached GEL 615 million, showing a 4%
year-on-year increase (from an unusually high base in 3Q 2022),
driven by both interest and non-interest income. Net interest
income rose 26% year-on-year, buoyed by a highly resilient net
interest margin, which rose 60 bps year-on-year to 6.9% in 3Q 2023.
Over the same period, net fee and commission income increased by
21% year-on-year. Notably, despite continuing to invest in
digitalization and scaling up our Uzbek operations, our favorable
operating income dynamics enable us to maintain a group cost/income
ratio of around 35%.
Our focus on providing high quality and convenient digital
financial services continues to bear fruit, with digital MAU
reaching 4.5 million at the Group level, up by a very impressive
1.3 million customers in the past 12 months, led by our fully
digital Uzbek operations. This resulted in a group DAU/MAU ratio of
32% as of September 2023, while the DAU/MAU ratio for the Georgian
business stood at 44%.
On the balance sheet side, our credit dynamics remain positive.
Our gross loan book increased by 17% year-on-year as of 30
September 2023, or by 19% in constant currency terms. Our asset
quality remained very sound in 3Q 2023, translating into a 0.9%
cost of risk, with the share of NPLs continuing to decline, to
2.0%. On the funding side, customer deposits increased by 9%
year-on-year, or by 12% in constant currency terms.
Our liquidity and capital positions remain strong. As of 30
September 2023, our CET1, Tier 1 and Total Capital ratios ([2])
stood at 17.5%, 19.9% and 22.3%, respectively, and remained
comfortably above the minimum regulatory requirements by 3.1 pp,
3.1 pp and 2.4 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 124% and 114%, respectively.
Rock solid business in Georgia combined with dynamic growth in
Uzbekistan
Our recently revised financial disclosures highlight the
respective strengths of our core financial services operations in
Georgia and Uzbekistan. Georgia continues to deliver excellent
profitability, with 26.4% ROE in 3Q 2023 and 25.9% for 9M 2023,
while on the balance sheet side, gross loans increased by 17%
year-on-year on a constant currency basis.
Our Uzbek fintech businesses (TBC UZ and Payme) continued to
generate positive returns in the third quarter of 2023, with their
combined net profit amounting to GEL 14 million, while ROE stood at
23.4%, and 24.6% for 9M 2023.
As of 9M 2023, TBC UZ retail loans amounted to GEL 632 million,
up by 20% quarter-on-quarter, giving us an unsecured consumer /
micro loan market share [3] of 12.5%. At the same time, retail
deposits reached GEL 516 million, up by 13% quarter-on-quarter,
accounting for 3.0% retail deposit market share(3) . Meanwhile, in
3Q 2023, Payme's payment volumes rose by 41% year-on-year, reaching
GEL 16.9 billion.
TNET retains strong growth momentum
In the third quarter of 2023, our digital lifestyle ecosystem,
TNET, continued to deliver robust growth, with GEL 45 million gross
merchandise value (GMV), up by 57% year-on-year. This was driven by
strong progress in the lifestyle and e-commerce verticals.
Planning for a strong end of year
Finally, I would like to thank all our shareholders for their
continued support as we look to deliver on our strategic targets
over the next few years. We are pleased with what we have achieved
so far this year and will strive to deliver a strong end to the
year during the final quarter.
Economic Overview
Georgia
Economic growth remains robust
Georgia' economy continued to perform strongly in 3Q 2023, with
real GDP growth of 5.4%, according to Geostat's estimates. This
follows 7.7% growth in 1Q YoY and 7.5% in 2Q, implying 6.8% in 9M
3023.
External sector - positive tourism and FDI, but slowing export
and import growth
As we saw in 2Q 2023, the sustained negative impact of lower
international commodity prices on both exports and imports
noticeably affected external sector activity in 3Q 2023.
Specifically, export and import growth fell to 1.6% and 7.9% YoY,
respectively. Importantly, these commodity price dynamics
particularly affected domestic commodity exports, while re-exports
continued to perform strongly. At the same time, the notable
increase of the share of IT services in Georgian exports continued,
with a major driver being the arrival of migrants over the past
year. At the same time, investment goods constituted a considerable
share of imports, indicating positive investment sentiment.
Given last year's high base effect, which was caused by the high
level of immigration in 2022, the annual growth of tourism inflows
fell further to 5.3% in 3Q 2023 as migrants are gradually being
counted as residents by the NBG and hence being exluded from the
tourism sector, while the figure for the first nine months was
29.2%. At the same time, the share of conventional tourism in total
inflows has increased lately. TBC Capital estimates that the YoY
growth of tourism inflows in January-September 2023, including the
spending of migrants counted as residents by the NBG, was 42.3%
while excluding migrants it reached 30.1%. Remittances also
maintained a positive momentum after adjustment for Russia,
increasing by 13.8% [4] YoY in 3Q and by 47.5% in the first nine
months of 2023. After a slowdown in 1Q, FDI increased by 29.9% YoY
in 2Q 2023.
Fiscal consolidation underway
It is important to highlight that the strong recent economic
growth is not a result of fiscal stimulus. In fact, fiscal
consolidation is underway. After reaching 9.3% of GDP in 2020 and a
lower, but still large, level of 6.1% in 2021, the budget deficit
stood at 3.1% in 2022. According to the Ministry of Finance,
further fiscal consolidation is expected with deficit-to-GDP ratios
of 2.8% and 2.5% in 2023 and 2024, respectively.
Credit growth still strong
As of September 2023, bank credit increased by 14.8% YoY,
against 13.5% growth at the end of 2Q 2023, at constant exchange
rates [5] . At the same time, as inflation remained stably low, the
YoY growth in real credit increased from 12.9% in June to 14.1% in
September 2023.
Low inflation enables monetary policy easing
The combination of low inflation and NBG rate cuts affecting
exchange rate expectations and normalizing inflows has driven a
minor depreciation in the US$ / GEL exchange rate from 2.62 at the
end of June to 2.68 at the end of September.
As a result of a broadly stable GEL and sustained
disinflationary pass-through from international markets, CPI
inflation stabilized well below the NBG target of 3%, standing at
0.7% YoY in September . At the same time, relatively rigid service
inflation and higher pressures on imports due to volatile oil
prices, contributed to marginally elevated MoM figures. The NBG has
remained cautious and delivered this year's third rate cut of only
25 basis points in September, reducing the MPR to 10.0%. The
central bank has continued accumulating substantial amounts of
reserves with a net purchase of US$ 1,390 million on the FX market
in January-September 2023, however, it started selling those in
response to exchange rate volatility from September. Total gross
international reserves still increased to US$ 5.3 billion as of
Septmeber 2023,with net reserves of US$ 2.8 billion having doubled
over the past 18 months.
Uzbekistan
Uzbekistan also demonstrated solid economic activity with 6.1%
[6] growth in the third quarter and 5.8% in the first nine months
of 2023. External trade was strong as exports of goods increased by
37.7% and imports by 32.5% YoY in the 3Q and by 24.2% and 23.6%(6)
in the first nine months of 2023, respectively. The retail loan
portfolio grew by 53.8% YoY at the end of September, with mortgage
credit expanding by 26.5% and non-mortgages by 79.1% [7] . Annual
inflation increased marginally from 9.0% in June to 9.2% in
September, while the central bank kept its monetary policy rate
unchanged at 14.0% throughout the quarter. The US$/UZS continued
its slight depreciation trend, standing at 12,175 at the end of
September 2023(7) , while the REER remained broadly unchanged.
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 at 6.6% and in 2024 at 4.8%,
according to TBC Capital projections, while the baseline for
Uzbekistan stands at 6.1% and 5.4%, respectively.
Mor e information on the Georgian economy and financial sector
can be found at www.tbccapital.ge .
Unaudited Consolidated Financial Results Overview for 3Q
2023
This statement provides a summary of the business and financial
trends for 3Q 2023 for TBC Bank Group plc and its subsidiaries. The
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-Sep-2022
due to a change in the accounting of option contracts. As a result,
ROE and leverage ratios were restated for 9M 2022. In addition,
total assets and total liabilities for 30-Sep-2022 were restated
due to replacement of IFRS 4 with IFRS 17. For more details, please
refer to appendix 8 and 9.
Please note that there might be slight differences in previous
periods' figures due to rounding.
Net Interest Income
In 3Q 2023, net interest income amounted to GEL 427.9 million,
up by 25.7% and 7.2% on a YoY and QoQ basis, respectively.
The YoY rise in interest income of GEL 148.3 million, or 24.5%,
was mostly attributable to an increase in interest income from
loans related to a rise in the respective yield by 0.7 pp, as well
as an increase in the loan portfolio of GEL 2,999.2 million, or
17.3%.
The QoQ increase in interest income of GEL 41.8 million, or
5.9%, was mainly related to an increase in interest income from
loans on the back of growth in the loan portfolio of GEL 1,004.4
million, or 5.2% .
Interest expense increased by GEL 60.7 million, or 22.9%, on a
YoY basis, mainly related to an increase in the deposit portfolio
of GEL 1,607.4 million, or 9.4%, and a 1.0 pp growth in deposit
costs.
On a QoQ basis, interest expense increased by GEL 13.2 million,
or 4.2%, primarily driven by an increased average balance of our
deposit portfolio, while deposit costs remained stable.
In 3Q 2023, our NIM stood at 6.9%, up by 0.6 pp and 0.1 pp on a
YoY and QoQ basis, respectively.
In thousands of GEL 3Q'23 2Q'23 3Q'22 Change Change
YoY QoQ
--------------------- ---------- ---------- ---------- ------- -------
Interest income 753,658 711,820 605,395 24.5% 5.9%
Interest expense* (325,724) (312,482) (264,980) 22.9% 4.2%
Net interest income 427,934 399,338 340,415 25.7% 7.2%
--------------------- ---------- ---------- ---------- ------- -------
NIM 6.9% 6.8% 6.3% 0.6 pp 0.1 pp
--------------------- ---------- ---------- ---------- ------- -------
* Interest expense includes net interest gains from currency
swaps
Non-Interest Income
In 3Q 2023, our net fee and commission income increased by 21.3%
YoY and remained broadly stable on a Q o Q basis. The YoY increase
was mainly related to increased payments transactions. In 3Q 2023,
our Uzbek business contributed more than 17% to the Group's net fee
& commission income.
In 3Q 2023, net gains from currency operations were down by
54.0% on a YoY basis, due to abnormally high FX revenues in 3Q
2022.
In thousands of GEL
Non-interest income 3Q'23 2Q'23 3Q'22 Change YoY Change QoQ
-------------------------------------------------------------- -------- -------- -------- ----------- -----------
Net fee and commission income 104,152 105,636 85,872 21.3% -1.4%
Net gains from currency derivatives, foreign currency
operations and translation 66,968 61,127 145,712 -54.0% 9.6%
Insurance profit 9,798 6,184 10,020 -2.2% 58.4%
Other operating income 6,367 14,481 7,612 -16.4% -56.0%
-------------------------------------------------------------- -------- -------- -------- ----------- -----------
Total non-interest income 187,285 187,428 249,216 -24.9% -0.1%
-------------------------------------------------------------- -------- -------- -------- ----------- -----------
Credit Loss Allowance
Credit loss allowance for loans in 3Q 2023 amounted to GEL 42.6
million, while cost of risk stood at 0.9%.
In thousands of GEL 3Q'23 2Q'23 3Q'22 Change Change
YoY QoQ
---------------------------------- --------- --------- --------- ------- -------
Credit loss allowance for loans
to customers (42,595) (29,384) (41,419) 2.8% 45.0%
Credit loss allowance for other
transactions (3,564) (4,550) (6,837) -47.9% -21.7%
--------- --------- --------- ------- -------
Total credit loss allowance (46,159) (33,934) (48,256) -4.3% 36.0%
---------------------------------- --------- --------- --------- ------- -------
Operating profit after expected
credit losses and non-financial
asset impairment losses 569,060 552,832 541,375 5.1% 2.9%
---------------------------------- --------- --------- --------- ------- -------
-0.1
Cost of risk 0.9% 0.6% 1.0% pp 0.3 pp
---------------------------------- --------- --------- --------- ------- -------
Operating Expenses
In 3Q 2023, our operating expenses expanded by 23.7% and 7.1% on
a YoY and QoQ basis, respectively. Both increases were mainly
driven by an overall expansion of business in 3Q 2023.
In thousands of GEL
Operating expenses 3Q'23 2Q'23 3Q'22 Change YoY Change QoQ
-------------------------------------------------------- ---------- ---------- ---------- ----------- -----------
Staff costs (121,056) (108,724) (94,561) 28.0% 11.3%
(Allowance)/recovery of provision for liabilities and
charges (34) (50) (2,000) -98.3% -32.0%
Depreciation and amortisation (29,286) (29,587) (26,684) 9.8% -1.0%
Administrative and other operating expenses (67,711) (65,199) (52,995) 27.8% 3.9%
-------------------------------------------------------- ---------- ---------- ---------- ----------- -----------
Total operating expenses (218,087) (203,560) (176,240) 23.7% 7.1%
-------------------------------------------------------- ---------- ---------- ---------- ----------- -----------
Cost to income 35.4% 34.7% 29.9% 5.5 pp 0.7 pp
-------------------------------------------------------- ---------- ---------- ---------- ----------- -----------
Georgian financial services' cost to income 31.5% 30.2% 25.7% 5.8 pp 1.3 pp
-------------------------------------------------------- ---------- ---------- ---------- ----------- -----------
Net Profit
Our net profit decreased by 6.4% and increased by 2.5% on a YoY
and QoQ basis, respectively and amounted to GEL 300.5 million. The
YoY decline was driven by abnormally high FX revenues in 3Q
2022.
As a result, in 3Q 2023 our ROE stood at 27.6%, while our ROA
reached 4.1%.
In thousands of GEL 3Q'23 2Q'23 3Q'22 Change YoY Change QoQ
---------------------------------- --------- --------- --------- ----------- -----------
Profit before tax 350,973 349,272 365,135 -3.9% 0.5%
---------------------------------- --------- --------- --------- ----------- -----------
Income tax expense (50,485) (56,186) (44,115) 14.4% -10.1%
---------------------------------- --------- --------- --------- ----------- -----------
Profit for the period 300,488 293,086 321,020 -6.4% 2.5%
---------------------------------- --------- --------- --------- ----------- -----------
Effective tax rate 14% 16% 12% 2 pp -2 pp
---------------------------------- --------- --------- --------- ----------- -----------
ROE 27.6% 28.1% 33.6% -6.0 pp -0.5 pp
---------------------------------- --------- --------- --------- ----------- -----------
Georgian financial services' ROE 26.4% 27.8% 32.5% -6.1 pp -1.4 pp
---------------------------------- --------- --------- --------- ----------- -----------
ROA 4.1% 4.2% 4.8% -0.7 pp -0.1 pp
---------------------------------- --------- --------- --------- ----------- -----------
Georgian financial services' ROA 4.2% 4.5% 5.0% -0.8 pp -0.3 pp
---------------------------------- --------- --------- --------- ----------- -----------
Funding and Liquidity
As of 30 September 2023, the total liquidity coverage ratio
(LCR), as defined by the NBG, was 114.1%, above the 100% limit,
while the LCR in GEL and FC stood at 105.7% and 121.0%,
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 124.1%, compared to the regulatory
limit of 100%.
Sep'23 Jun'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* 124.1% 129.8% -5.7 pp
Net loans to deposits + IFI funding 96.9% 90.6% 6.3 pp
Leverage (Times) 6.7x 6.7x 0x
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% 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* 114.1% 124.5% -10.4 pp
LCR in GEL, as defined by the NBG* 105.7% 130.4% -24.7 pp
LCR in FC, as defined by the NBG* 121.0% 119.2% 1.8 pp
-------------------------------------------- ------- ------- ---------
* Ratios are calculated per IFRS
Regulatory Capital for Georgian Bank
As of 30 September 2023, our capital ratios remained at a
prudent level and as a result, per IFRS, our CET1, Tier 1 and Total
Capital ratios stood at 17.5%, 19.9% and 22.3%, respectively, above
the minimum regulatory requirements by 3.1 pp, 3.1 pp and 2.4 pp,
accordingly.
The QoQ decreases in all CET1, Tier 1 and Total capital adequacy
ratios were largely driven by the interim dividend payment.
In thousands of GEL Sep'23 Jun'23 Change
QoQ
-------------------------------------- ----------- ----------- --------
CET 1 Capital 3,966,901 3,920,004 1.2%
Tier 1 Capital 4,502,561 4,443,544 1.3%
Total Capital 5,058,696 4,947,830 2.2%
Total Risk-weighted Assets 22,668,335 21,452,808 5.7%
-------------------------------------- ----------- ----------- --------
Minimum CET 1 ratio 14.4% 14.4% 0.0 pp
CET 1 Capital adequacy ratio 17.5% 18.3% -0.8 pp
Minimum Tier 1 ratio 16.8% 16.8% 0.0 pp
Tier 1 Capital adequacy ratio 19.9% 20.7% -0.8 pp
Minimum total capital adequacy ratio 19.9% 19.9% 0.0 pp
Total Capital adequacy ratio 22.3% 23.1% -0.8 pp
-------------------------------------- ----------- ----------- --------
Ratios and numbers are calculated per IFRS
Loan Portfolio
As of 30 September 2023, the gross loan portfolio reached GEL
20,365.1 million, up by 5.2% QoQ, or by 4.7% on a constant currency
basis.
By the end of September 2023, our Georgian financial services
loan portfolio increased by 4.8% on a QoQ basis and reached GEL
19,715.8 million, with 4.2% growth on a constant currency basis.
Over the same period, our Uzbek portfolio increased by 20.0% and
stood at GEL 632.0 million, which translated into growth of 24.1%
on a constant currency basis.
In thousands of GEL
Gross loans and advances to customers Sep'23 Jun'23 Change QoQ
---------------------------------------- ----------- ----------- -----------
Georgian financial services (Georgia
FS) 19,715,795 18,816,052 4.8%
Retail Georgia 7,131,727 6,945,911 2.7%
GEL 4,716,516 4,549,932 3.7%
FC 2,415,211 2,395,979 0.8%
CIB Georgia 7,380,388 6,920,263 6.6%
GEL 2,593,611 2,321,704 11.7%
FC 4,786,777 4,598,559 4.1%
MSME Georgia 5,203,680 4,949,878 5.1%
GEL 2,747,953 2,675,925 2.7%
FC 2,455,727 2,273,953 8.0%
Uzbekistan 632,013 526,843 20.0%
UZS 632,013 526,843 20.0%
---------------------------------------- ----------- ----------- -----------
Total gross loans and advances
to customers * 20,365,135 19,360,689 5.2%
---------------------------------------- ----------- ----------- -----------
* Total gross loans and advances to customers include Azerbaijan
loan portfolio
3Q'23 2Q'23 3Q'22 Change Change
YoY QoQ
-------------------- ------ ------ ------ -------- --------
Loan yields 12.6% 12.8% 11.9% 0.7 pp -0.2 pp
GEL 14.8% 15.4% 15.6% -0.8 pp -0.6 pp
FC 8.6% 8.4% 7.3% 1.3 pp 0.2 pp
UZS 41.9% 43.0% 44.2% -2.3 pp -1.1 pp
Georgia FS 11.7% 12.0% 11.5% 0.2 pp -0.3 pp
GEL 14.8% 15.4% 15.6% -0.8 pp -0.6 pp
FC 8.5% 8.4% 7.3% 1.2 pp 0.1 pp
Uzbekistan 41.9% 43.0% 44.2% -2.3 pp -1.1 pp
UZS 41.9% 43.0% 44.2% -2.3 pp -1.1 pp
-------------------- ------ ------ ------ -------- --------
Total loan yields* 12.6% 12.8% 11.9% 0.7 pp -0.2 pp
-------------------- ------ ------ ------ -------- --------
* Total loans yields include Azerbaijan
Loan Portfolio Quality
As of 30 September 2023, our PAR 90 and NPL to gross loans
ratios remained broadly stable for both the Georgian and Uzbek
businesses on a QoQ basis.
PAR 90 Sep'23 Jun'23 Change QoQ
----------------- ------- ------- -----------
Georgia FS 1.2% 1.1% 0.1 pp
Retail Georgia 0.9% 0.9% 0.0 pp
CIB Georgia 0.5% 0.6% -0.1 pp
MSME Georgia 2.5% 2.3% 0.2 pp
Uzbekistan 2.1% 2.2% -0.1 pp
----------------- ------- ------- -----------
Total PAR 90* 1.2% 1.2% 0.0 pp
----------------- ------- ------- -----------
* Total PAR 90 includes Azerbaijan
In thousands of GEL
Non-performing Loans (NPL) Sep'23 Jun'23 Change QoQ
----------------------------- -------- -------- -----------
Georgia FS 399,230 387,626 3.0%
Retail Georgia 129,162 127,833 1.0%
CIB Georgia 94,940 98,374 -3.5%
MSME Georgia 175,128 161,419 8.5%
Uzbekistan 13,584 11,646 16.6%
----------------------------- -------- -------- -----------
Total non-performing loans* 413,520 400,989 3.1%
----------------------------- -------- -------- -----------
* Total non-performing loans include Azerbaijan NPLs
NPL to gross loans Sep'23 Jun'23 Change QoQ
--------------------------- ------- ------- -----------
Georgia FS 2.0% 2.1% -0.1 pp
Retail Georgia 1.8% 1.8% 0.0 pp
CIB Georgia 1.3% 1.4% -0.1 pp
MSME Georgia 3.4% 3.3% 0.1 pp
Uzbekistan 2.1% 2.2% -0.1 pp
--------------------------- ------- ------- -----------
Total NPL to gross loans* 2.0% 2.1% -0.1 pp
--------------------------- ------- ------- -----------
* Total NPL to gross loans include Azerbaijan NPLs
Sep'23 Jun'23
--------------------- ----------------------------- -----------------------------
NPL Coverage Provision Total Coverage** Provision Total Coverage**
Coverage Coverage
--------------------- ---------- ----------------- ---------- -----------------
Georgia FS 82.5% 148.6% 85.3% 150.9%
Retail Georgia 136.0% 189.2% 141.8% 192.4%
CIB Georgia 52.0% 111.4% 49.4% 110.5%
MSME Georgia 59.5% 138.8% 62.6% 142.7%
Uzbekistan 199.9% 199.9% 180.0% 180.0%
--------------------- ---------- ----------------- ---------- -----------------
Total NPL coverage* 87.6% 151.6% 89.3% 153.7%
--------------------- ---------- ----------------- ---------- -----------------
* Total NPL coverage include Azerbaijan loans coverage
** Total NPL coverage ratio includes provision and collateral
coverage
Cost of Risk
Given strong asset quality trends in 3Q 2023, our cost of risk
(CoR) remained within the expected range and stood at 0.9%.
The CoR for our Georgia FS decreased slightly YoY due to strong
asset quality dynamics and stood at 0.7%. Over the same period, CoR
for our Uzbek business amounted to 7.3%, also down slightly on a
YoY basis. The QoQ increase in Uzbekistan was mainly driven by the
fast growth of the portfolio.
Cost of risk (CoR) 3Q'23 2Q'23 3Q'22 Change Change
YoY QoQ
--------------------- ------ ------ ------ -------- --------
Georgia FS 0.7% 0.5% 0.9% -0.2 pp 0.2 pp
Retail Georgia 1.1% 0.5% 2.0% -0.9 pp 0.6 pp
CIB Georgia 0.0% 0.2% 0.0% 0.0 pp -0.2 pp
MSME Georgia 0.9% 0.9% 0.5% 0.4 pp 0.0 pp
Uzbekistan 7.3% 6.6% 7.5% -0.2 pp 0.7 pp
--------------------- ------ ------ ------ -------- --------
Total cost of risk* 0.9% 0.6% 1.0% -0.1 pp 0.3 pp
--------------------- ------ ------ ------ -------- --------
* Total cost of risk includes Azerbaijan CoR
Deposit Portfolio
By the end of September 2023, the total deposit portfolio
amounted to GEL 18,722.4 million, down by 1.4% QoQ or by 2.2% on a
constant currency basis.
As of 30 September 2023, the Georgian financial services
portfolio decreased by 1.8% on a QoQ basis and reached GEL 18,300.5
million, down by 2.7% on a constant currency basis. Over the same
period, our Uzbek portfolio increased by 12.7% and stood at GEL
515.6 million, which translated into growth of 16.6% on a constant
currency basis.
In thousands of GEL
Customer accounts Sep'23 Jun'23 Change QoQ
-------------------------- ----------- ----------- -----------
Georgia FS 18,300,484 18,639,911 -1.8%
Retail Georgia 7,097,710 6,985,211 1.6%
GEL 2,224,730 2,242,193 -0.8%
FC 4,872,980 4,743,018 2.7%
CIB Georgia 8,861,056 9,048,955 -2.1%
GEL 4,911,419 5,169,170 -5.0%
FC 3,949,637 3,879,785 1.8%
MSME Georgia 1,730,701 1,638,612 5.6%
GEL 940,724 889,834 5.7%
FC 789,977 748,778 5.5%
MOF 611,017 967,133 -36.8%
GEL 611,017 967,133 -36.8%
Uzbekistan 515,586 457,340 12.7%
FC 1,640 1,322 24.1%
UZS 513,946 456,018 12.7%
-------------------------- ----------- ----------- -----------
Total customer accounts* 18,722,415 18,992,492 -1.4%
-------------------------- ----------- ----------- -----------
* Total customer accounts are adjusted for eliminations
3Q'23 2Q'23 3Q'22 Change Change
YoY QoQ
----------------------------- ------ ------ ------ ------- --------
Deposit rates 4.9% 4.9% 3.9% 1.0 pp 0.0 pp
GEL 8.2% 8.3% 7.4% 0.8 pp -0.1 pp
FC 0.9% 0.8% 0.9% 0.0 pp 0.1 pp
UZS 24.4% 25.0% 23.6% 0.8 pp -0.6 pp
Georgian financial services 4.4% 4.5% 3.6% 0.8 pp -0.1 pp
GEL 8.2% 8.4% 7.5% 0.7 pp -0.2 pp
FC 0.9% 0.8% 0.9% 0.0 pp 0.1 pp
Uzbek business 24.4% 24.9% 23.6% 0.8 pp -0.5 pp
FC 4.1% 4.7% 0.0% 4.1 pp -0.6 pp
UZS 24.4% 25.0% 23.6% 0.8 pp -0.6 pp
----------------------------- ------ ------ ------ ------- --------
Total deposit rates* 4.9% 4.9% 3.9% 1.0 pp 0.0 pp
----------------------------- ------ ------ ------ ------- --------
* Total deposits rates include MOF deposits
Unaudited Consolidated Financial Results Overview for 9M
2023
This statement provides a summary of the business and financial
trends for 9M 20 23 for TBC Bank Group plc and its subsidiaries.
The 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-Sep-2022
due to a change in the accounting of option contracts. As a result,
ROE and leverage ratios were restated for 9M 2022. In addition,
total assets and total liabilities for 30-Sep-2022 were restated
due to replacement of IFRS 4 with IFRS 17. For more details, please
refer to appendix 8 and 9.
Please also note that there might be slight differences in
previous periods' figures due to rounding.
Net Interest Income
In 9M 2023, net interest income amounted to GEL 1,194.1 million,
up by 28.0% on a YoY basis.
The YoY rise in interest income by GEL 451.8 million, or 26.8%,
was mostly attributable to an increase in interest income from
loans related to a GEL 2,999.2 million, or 17.3%, increase in the
respective portfolio, as well as a 1.2 pp rise in the respective
yield.
YoY interest expense increased by GEL 190.3 million, or 25.3%,
mainly related to an increase in the deposit portfolio of GEL
1,607.4 million, or 9.4%, and a 1.1 pp growth in deposit cost.
In 9M 2023, our NIM stood at 6.7%, up by 0.8 pp on a YoY
basis.
In thousands of GEL 9M'23 9M'22 Change YoY
--------------------- ---------- ---------- -----------
Interest income 2,137,628 1,685,857 26.8%
Interest expense* (943,565) (753,251) 25.3%
Net interest income 1,194,063 932,606 28.0%
--------------------- ---------- ---------- -----------
NIM 6.7% 5.9% 0.8 pp
--------------------- ---------- ---------- -----------
* Interest expense includes net interest gains from currency
swaps
Non-Interest Income
Total non-interest income amounted to GEL 540.2 million in 9M
2023, increasing by 1.2% on a YoY basis.
Net fee and commission income increased by 32.9% on a YoY basis,
related to increased payments transactions both in Georgia and
Uzbekistan. Over the same period, given a high base in 2022,
revenues from FX operations normalised and decreased by 27.4%. Our
Uzbek business contributed 18% of the Group's net fee and
commission income.
In thousands of GEL
Non-interest income 9M'23 9M'22 Change YoY
---------------------------------------------------------------------------------- -------- -------- -----------
Net fee and commission income 302,226 227,334 32.9%
Net gains from currency derivatives, foreign currency operations and translation 188,696 260,089 -27.4%
Insurance profit 22,200 20,985 5.8%
Other operating income 27,039 25,518 6.0%
---------------------------------------------------------------------------------- -------- -------- -----------
Total non-interest income 540,161 533,926 1.2%
---------------------------------------------------------------------------------- -------- -------- -----------
Credit Loss Allowance
Credit loss allowance for loans in 9M 2023 amounted to GEL 122.0
million, which translated into a 0.9% cost of risk.
In thousands of GEL 9M'23 9M'22 Change
YoY
---------------------------------------------- ---------- ---------- -------
Credit loss (allowance)/recovery for loans
to customers (122,019) (91,941) 32.7%
Credit loss allowance for other transactions (11,242) (7,905) 42.2%
---------- ---------- -------
Total credit loss (allowance)/recovery (133,261) (99,846) 33.5%
---------------------------------------------- ---------- ---------- -------
Operating income after expected credit
and non-financial asset impairment losses 1,600,963 1,366,686 17.1%
---------------------------------------------- ---------- ---------- -------
Cost of risk 0.9% 0.7% 0.2 pp
---------------------------------------------- ---------- ---------- -------
Operating Expenses
In 9M 2023, our operating expenses expanded by 23.1% on a YoY
basis.
In the first nine months of 2023, the annual increase in
operating expenses was mainly driven by overall business expansion,
both locally and internationally.
In thousands of GEL
Operating expenses 9M'23 9M'22 Change YoY
---------------------------------------------------- ---------- ---------- -----------
Staff costs (333,206) (271,052) 22.9%
Allowance of provision for liabilities and charges (155) (2,060) -92.5%
Depreciation and amortisation (87,234) (74,016) 17.9%
Administrative and other operating expenses (183,832) (143,697) 27.9%
---------------------------------------------------- ---------- ---------- -----------
Total operating expenses (604,427) (490,825) 23.1%
---------------------------------------------------- ---------- ---------- -----------
Cost to income 34.9% 33.5% 1.4 pp
---------------------------------------------------- ---------- ---------- -----------
Georgian financial services' cost to income 30.7% 28.6% 2.1 pp
---------------------------------------------------- ---------- ---------- -----------
Net Profit
In 9M 2023, we delivered robust profitability and generated GEL
848.5 million in net profit, up by 8.8% YoY, driven by strong
income generation, as well as strong asset quality.
The growth in the effective tax rate YoY is related to changes
in tax legislation effective from 1 January 2023, which increased
the corporate income tax rate for banks from 15% to 20% and
abolished the potential shift to the Estonian Tax Model.
As a result, our ROE and ROA for 9M 2023 were 27.0% and 4.0%,
respectively.
In thousands of GEL 9M'23 9M'22 Change YoY
---------------------------------- ---------- --------- -----------
Profit before tax 996,536 875,861 13.8%
---------------------------------- ---------- --------- -----------
Income tax expense (148,002) (96,296) 53.7%
---------------------------------- ---------- --------- -----------
Profit for the period 848,534 779,565 8.8%
---------------------------------- ---------- --------- -----------
Effective tax rate 15% 11% 4 pp
---------------------------------- ---------- --------- -----------
ROE 27.0% 28.6% -1.6 pp
---------------------------------- ---------- --------- -----------
Georgian financial services' ROE 25.9% 27.9% -2.0 pp
---------------------------------- ---------- --------- -----------
ROA 4.0% 4.1% -0.1 pp
---------------------------------- ---------- --------- -----------
Georgian financial services' ROA 4.1% 4.3% -0.2 pp
---------------------------------- ---------- --------- -----------
Loan Portfolio
As of 30 September 2023, the gross loan portfolio reached GEL
20,365.1 million, up by 17.3% YoY or 19.1% on a constant currency
basis.
By the end of September 2023, the Georgian financial services'
portfolio increased by 15.4% on a YoY basis and reached GEL
19,715.8 million, with 16.7% growth on a constant currency basis.
Over the same period, our Uzbek portfolio more than doubled,
reaching GEL 632.0 million.
In thousands of GEL
Gross loans and advances to
customers Sep'23 Sep'22 Change YoY
-------------------------------- ----------- ----------- -----------
Georgian financial services
(Georgia FS) 19,715,795 17,077,558 15.4%
Retail Georgia 7,131,727 6,588,985 8.2%
GEL 4,716,516 4,230,472 11.5%
FC 2,415,211 2,358,513 2.4%
CIB Georgia 7,380,388 5,918,394 24.7%
GEL 2,593,611 2,096,791 23.7%
FC 4,786,777 3,821,603 25.3%
MSME Georgia 5,203,680 4,570,179 13.9%
GEL 2,747,953 2,544,976 8.0%
FC 2,455,727 2,025,203 21.3%
Uzbekistan 632,013 268,976 NMF
UZS 632,013 268,976 NMF
-------------------------------- ----------- ----------- -----------
Total gross loans and advances
to customers* 20,365,135 17,365,894 17.3%
-------------------------------- ----------- ----------- -----------
* Total gross loans and advances to customers include Azerbaijan
loan portfolio
9M'23 9M'22 Change YoY
-------------------- ------ ------ -----------
Loan yields 12.6% 11.4% 1.2 pp
GEL 15.0% 15.6% -0.6 pp
FC 8.4% 6.8% 1.6 pp
UZS 42.6% 42.7% -0.1 pp
Georgia FS 11.8% 11.0% 0.8 pp
GEL 15.0% 15.6% -0.6 pp
FC 8.4% 6.8% 1.6 pp
Uzbekistan 42.6% 42.7% -0.1 pp
UZS 42.6% 42.7% -0.1 pp
-------------------- ------ ------ -----------
Total loan yields* 12.6% 11.4% 1.2 pp
-------------------- ------ ------ -----------
* Total loans yields include Azerbaijan
Loan Portfolio Quality
As of 30 September 2023, our asset quality metrics remained
strong with NPL to gross loan at 2.0%, down 30bps YoY.
Par 90 Sep'23 Sep'22 Change YoY
----------------- ------- ------- -----------
Georgia FS 1.2% 1.3% -0.1 pp
Retail Georgia 0.9% 1.3% -0.4 pp
CIB Georgia 0.5% 0.5% 0.0 pp
MSME Georgia 2.5% 2.4% 0.1 pp
Uzbekistan 2.1% 2.9% -0.8 pp
----------------- ------- ------- -----------
Total PAR 90* 1.2% 1.3% -0.1 pp
----------------- ------- ------- -----------
* Total PAR 90 includes Azerbaijan
In thousands of GEL
Non-performing Loans (NPL) Sep'23 Sep'22 Change YoY
----------------------------- -------- -------- -----------
Georgia FS 399,230 394,205 1.3%
Retail Georgia 129,162 152,241 -15.2%
CIB Georgia 94,940 80,084 18.6%
MSME Georgia 175,128 161,880 8.2%
Uzbekistan 13,584 7,712 76.1%
----------------------------- -------- -------- -----------
Total non-performing loans* 413,520 404,966 2.1%
----------------------------- -------- -------- -----------
* Total non-performing loans include Azerbaijan NPLs
NPL to gross loans Sep'23 Sep'22 Change YoY
--------------------------- ------- ------- -----------
Georgia FS 2.0% 2.3% -0.3 pp
Retail Georgia 1.8% 2.3% -0.5 pp
CIB Georgia 1.3% 1.4% -0.1 pp
MSME Georgia 3.4% 3.5% -0.1 pp
Uzbekistan 2.1% 2.9% -0.8 pp
--------------------------- ------- ------- -----------
Total NPL to gross loans* 2.0% 2.3% -0.3 pp
--------------------------- ------- ------- -----------
* Total NPL to gross loans include Azerbaijan NPLs
Sep'23 Sep'22
--------------------- ----------------------------- -----------------------------
NPL Coverage Provision Total Coverage** Provision Total Coverage**
Coverage Coverage
--------------------- ---------- ----------------- ---------- -----------------
Georgia FS 82.5% 148.6% 98.2% 163.1%
Retail Georgia 136.0% 189.2% 163.8% 209.7%
CIB Georgia 52.0% 111.4% 56.6% 121.8%
MSME Georgia 59.5% 138.8% 57.1% 139.7%
Uzbekistan 199.9% 199.9% 123.0% 123.0%
--------------------- ---------- ----------------- ---------- -----------------
Total NPL coverage* 87.6% 151.6% 99.6% 164.2%
--------------------- ---------- ----------------- ---------- -----------------
* Total NPL coverage include Azerbaijan loans coverage
** Total NPL coverage ratio includes provision and collateral
coverage
Cost of Risk
In 9M 2023, our cost of risk (CoR) amounted to 0.9%.
The CoR for our Georgia FS remained stable YoY and stood at
0.7%, while CoR for our Uzbek business amounted to 6.6%, up by 0.3
pp on a YoY basis.
Cost of risk (CoR) 9M'23 9M'22 Change YoY
--------------------- ------ ------ -----------
Georgia FS 0.7% 0.7% 0.0 pp
Retail Georgia 1.0% 1.7% -0.7 pp
CIB Georgia 0.0% -0.1% 0.1 pp
MSME Georgia 1.3% 0.3% 1.0 pp
Uzbekistan 6.6% 6.3% 0.3 pp
--------------------- ------ ------ -----------
Total cost of risk* 0.9% 0.7% 0.2 pp
--------------------- ------ ------ -----------
* Total cost of risk includes Azerbaijan CoR
Deposit Portfolio
The total deposit portfolio amounted to GEL 18,722.4 million,
increasing by 9.4% YoY or 12.2% on a constant currency basis.
As of 30 September 2023, the Georgian financial services'
portfolio increased by 8.7% on a YoY basis to GEL 18.300.5 million,
with 11.0% growth on a constant currency basis. Over the same
period, our Uzbek portfolio almost doubled and stood at GEL 515.6
million.
In thousands of GEL
Customer accounts Sep'23 Sep'22 Change YoY
-------------------------- ----------- ----------- -----------
Georgia FS 18,300,484 16,837,237 8.7%
Retail Georgia 7,097,710 6,049,335 17.3%
GEL 2,224,730 1,661,392 33.9%
FC 4,872,980 4,387,943 11.1%
CIB Georgia 8,861,056 7,830,648 13.2%
GEL 4,911,419 3,684,493 33.3%
FC 3,949,637 4,146,155 -4.7%
MSME Georgia 1,730,701 1,645,985 5.1%
GEL 940,724 775,704 21.3%
FC 789,977 870,281 -9.2%
MOF 611,017 1,311,269 -53.4%
GEL 611,017 1,311,269 -53.4%
Uzbekistan 515,586 296,563 73.9%
FC 1,640 10 NMF
UZS 513,946 296,553 73.3%
-------------------------- ----------- ----------- -----------
Total customer accounts* 18,722,415 17,115,022 9.4%
-------------------------- ----------- ----------- -----------
* Total customer accounts are adjusted for eliminations
9M'23 9M'22 Change YoY
----------------------------- ------ ------ -----------
Deposit rates 4.9% 3.8% 1.1 pp
GEL 8.4% 7.5% 0.9 pp
FC 0.8% 0.9% -0.1 pp
UZS 24.9% 22.7% 2.2 pp
Georgian financial services 4.5% 3.5% 1.0 pp
GEL 8.5% 7.5% 1.0 pp
FC 0.8% 0.9% -0.1 pp
Uzbek business 24.8% 22.7% 2.1 pp
FC 4.4% 0.0% 4.4 pp
UZS 24.9% 22.7% 2.2 pp
----------------------------- ------ ------ -----------
Total deposit rates* 4.9% 3.8% 1.1 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 39.1% of
customer loans and 37.5% of customer deposits as of 30 September
2023, according to data published by the National Bank of Georgia
on the analytical tool Tableau.
2) Consolidated Financial Statements and Key Ratios 3Q 2023
Consolidated Statement of Financial Position
In thousands of GEL Sep'23 Jun'23
----------------------------------------------------- ----------- -----------
ASSETS
Cash and cash equivalents 2,648,469 2,940,359
Due from other banks 38,954 52,550
Mandatory cash balances with National Bank of
Georgia and the Central Bank of Uzbekistan 1,904,010 1,706,981
Loans and advances to customers 20,003,021 19,002,657
Investment securities measured at fair value
through other comprehensive income 3,071,046 2,942,679
Bonds carried at amortised cost 65,289 87,213
Finance lease receivables 364,077 338,203
Investment properties 20,629 20,741
Current income tax prepayment 16,062 3,005
Deferred income tax asset 10,721 12,573
Other financial assets 259,771 266,969
Other assets 449,322 441,756
Premises and equipment 481,867 463,407
Right of use assets 116,262 117,634
Intangible assets 442,989 418,468
Goodwill 59,964 59,964
Investments in associates 3,940 3,667
TOTAL ASSETS 29,956,393 28,878,826
----------------------------------------------------- ----------- -----------
LIABILITIES
Due to credit institutions 3,330,925 2,448,662
Customer accounts 18,722,415 18,992,492
Lease liabilities 88,893 87,324
Other financial liabilities 515,000 387,595
Current income tax liability 17,958 27,559
Debt Securities in issue 1,432,393 1,392,872
Deferred income tax liability 109,854 112,095
Provision for liabilities and charges 20,384 20,767
Other liabilities 93,184 91,839
Redemption liability 363,871 347,044
Subordinated debt 788,116 639,048
TOTAL LIABILITIES 25,482,993 24,547,297
----------------------------------------------------- ----------- -----------
EQUITY
Share capital 1,682 1,682
Shares held by trust (75,470) (75,470)
Share premium 272,930 272,930
Retained earnings 4,145,795 3,984,493
Merger reserve 402,862 402,862
Share based payment reserve 12,672 5,181
Fair value reserve for investment securities
measured at fair value through other comprehensive
income 10,855 16,461
Cumulative currency translation reserve (42,759) (36,804)
Other reserve (363,869) (347,044)
Equity attributable to owners of the parent 4,364,698 4,224,291
----------------------------------------------------- ----------- -----------
Non-controlling interest 108,702 107,238
----------- -----------
TOTAL EQUITY 4,473,400 4,331,529
----------------------------------------------------- ----------- -----------
TOTAL LIABILITIES AND EQUITY 29,956,393 28,878,826
----------------------------------------------------- ----------- -----------
Consolidated Income Statement and Other Comprehensive Income
In thousands of GEL 3Q'23 2Q'23 3Q'22
-------------------------------------------------- ---------- ---------- ----------
Interest income 753,658 711,820 605,395
Interest expense (325,724) (312,482) (264,980)
Net interest income 427,934 399,338 340,415
-------------------------------------------------- ---------- ---------- ----------
Fee and commission income 170,479 161,729 136,674
Fee and commission expense (66,327) (56,093) (50,802)
Net fee and commission income 104,152 105,636 85,872
-------------------------------------------------- ---------- ---------- ----------
Insurance contract revenue 35,056 31,552 30,376
Reinsurance service result (3,245) (1,517) (1,958)
Insurance service claims and expenses
incurred (22,013) (23,851) (18,398)
-------------------------------------------------- ---------- ---------- ----------
Insurance profit 9,798 6,184 10,020
-------------------------------------------------- ---------- ---------- ----------
Net gains from currency derivatives, foreign
currency operations and translation 66,968 61,127 145,712
Net gains from disposal of investment
securities measured at fair value through
other comprehensive income 1,553 2,307 2,660
Other operating income 4,443 11,906 4,868
Share of profit of associates 371 268 84
Other operating non-interest income 73,335 75,608 153,324
-------------------------------------------------- ---------- ---------- ----------
Credit loss allowance for loans to customers (42,595) (29,384) (41,419)
Credit loss (allowance)/recovery for finance
lease receivable (3,035) (1,059) (716)
Credit loss (allowance)/recovery for performance
guarantees and credit related commitments 644 (1,273) (434)
Credit loss (allowance)/recovery for other
financial assets (963) (2,136) (5,041)
Credit loss recovery/(allowance) for financial
assets measured at fair value through
other comprehensive income (497) 134 115
Net impairment of non-financial assets 287 (216) (761)
Operating income after expected credit
and non-financial asset impairment losses 569,060 552,832 541,375
-------------------------------------------------- ---------- ---------- ----------
Staff costs (121,056) (108,724) (94,561)
Depreciation and amortisation (29,286) (29,587) (26,684)
(Allowance)/recovery of provision for
liabilities and charges (34) (50) (2,000)
Administrative and other operating expenses (67,711) (65,199) (52,995)
Operating expenses (218,087) (203,560) (176,240)
-------------------------------------------------- ---------- ---------- ----------
Profit before tax 350,973 349,272 365,135
-------------------------------------------------- ---------- ---------- ----------
Income tax expense (50,485) (56,186) (44,115)
---------- ---------- ----------
Profit for the period 300,488 293,086 321,020
-------------------------------------------------- ---------- ---------- ----------
Other comprehensive income:
-------------------------------------------------- ---------- ---------- ----------
Items that may be reclassified subsequently
to profit or loss:
-------------------------------------------------- ---------- ---------- ----------
Movement in fair value reserve (5,607) 2,958 18,929
-------------------------------------------------- ---------- ---------- ----------
Exchange differences on translation to
presentation currency (5,955) 4,220 137
-------------------------------------------------- ---------- ---------- ----------
Other comprehensive income for the period (11,562) 7,178 19,066
-------------------------------------------------- ---------- ---------- ----------
Total comprehensive income for the period 288,926 300,264 340,086
-------------------------------------------------- ---------- ---------- ----------
Profit attributable to:
-------------------------------------------------- ---------- ---------- ----------
- Shareholders of TBCG 299,022 288,791 318,985
-------------------------------------------------- ---------- ---------- ----------
- Non-controlling interest 1,466 4,295 2,035
-------------------------------------------------- ---------- ---------- ----------
Profit for the period 300,488 293,086 321,020
-------------------------------------------------- ---------- ---------- ----------
Total comprehensive income is attributable
to:
-------------------------------------------------- ---------- ---------- ----------
- Shareholders of TBCG 287,460 295,969 338,051
-------------------------------------------------- ---------- ---------- ----------
- Non-controlling interest 1,466 4,295 2,035
-------------------------------------------------- ---------- ---------- ----------
Total comprehensive income for the period 288,926 300,264 340,086
-------------------------------------------------- ---------- ---------- ----------
* Interest expense includes net interest gains from currency
swaps
Key Ratios 3Q'23
Total equity and total liabilities were restated for 30-Sep-2022
due to a change in the accounting of option contracts. As a result,
ROE and leverage ratios were restated for 3Q 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, 3Q'23 2Q'23 3Q'22
where applicable)
-------------------------------------------- ------- ------- -------
Profitability ratios:
ROE(1) 27.6% 28.1% 33.6%
ROA(2) 4.1% 4.2% 4.8%
Cost to income(3) 35.4% 34.7% 29.9%
NIM(4) 6.9% 6.8% 6.3%
Loan yields(5) 12.6% 12.8% 11.9%
Deposit rates(6) 4.9% 4.9% 3.9%
Cost of funding(7) 5.4% 5.6% 4.8%
------- ------- -------
Asset quality & portfolio concentration:
Cost of risk(9) 0.9% 0.6% 1.0%
PAR 90 to Gross Loans(9) 1.2% 1.2% 1.3%
NPLs to Gross Loans(10) 2.0% 2.1% 2.3%
NPL provision coverage(11) 87.6% 89.3% 99.6%
Total NPL coverage(12) 151.6% 153.7% 164.2%
Credit loss level to Gross Loans(13) 1.8% 1.8% 2.3%
Related Party Loans to Gross Loans(14) 0.1% 0.1% 0.1%
Top 10 Borrowers to Total Portfolio(15) 6.0% 5.8% 6.0%
Top 20 Borrowers to Total Portfolio(16) 8.9% 8.7% 9.0%
-------------------------------------------- ------- ------- -------
Capital & liquidity positions:
Net Loans to Deposits plus IFI Funding(17) 96.9% 90.6% 89.1%
Net Stable Funding Ratio** (18) 124.1% 129.8% n/a
Liquidity Coverage Ratio** (19) 114.1% 124.5% n/a
Leverage(20) 6.7x 6.7x 7.1x
CET 1 CAR* (Basel III)(21) 17.5% 18.3% n/a
Tier 1 CAR* (Basel III)(22) 19.9% 20.7% n/a
Total 1 CAR* (Basel III)(23) 22.3% 23.1% n/a
-------------------------------------------- ------- ------- -------
* Ratios are calculated per IFRS
For the ratio definitions and exchange rates, please refer to
appendix 12.
3) Consolidated Financial Statements and Key Ratios 9M 2023
Consolidated Statement of Financial Position
In thousands of GEL Sep'23 Sep'22
----------------------------------------------------- ----------- -----------
ASSETS
Cash and cash equivalents 2,648,469 3,764,435
Due from other banks 38,954 48,623
Mandatory cash balances with National Bank of
Georgia and the Central Bank of Uzbekistan 1,904,010 2,219,506
Loans and advances to customers 20,003,021 16,962,397
Investment securities measured at fair value
through other comprehensive income 3,071,046 2,213,608
Bonds carried at amortised cost 65,289 64,030
Repurchase receivables - 278,971
Finance lease receivables 364,077 261,217
Investment properties 20,629 22,930
Current income tax prepayment 16,062 1,505
Deferred income tax asset 10,721 14,439
Other financial assets 259,771 395,571
Other assets 449,322 436,067
Premises and equipment 481,867 426,129
Right of use assets 116,262 95,625
Intangible assets 442,989 363,096
Goodwill 59,964 59,963
Investments in associates 3,940 3,576
TOTAL ASSETS 29,956,393 27,631,688
----------------------------------------------------- ----------- -----------
LIABILITIES
Due to credit institutions 3,330,925 3,619,566
Customer accounts 18,722,415 17,115,022
Lease liabilities 88,893 76,890
Other financial liabilities 515,000 367,545
Current income tax liability 17,958 14,294
Debt Securities in issue 1,432,393 1,466,022
Deferred income tax liability 109,854 2,157
Provision for liabilities and charges 20,384 18,894
Other liabilities 93,184 76,139
Redemption liability 363,871 373,605
Subordinated debt 788,116 621,878
TOTAL LIABILITIES 25,482,993 23,752,012
----------------------------------------------------- ----------- -----------
EQUITY
Share capital 1,682 1,693
Shares held by trust (75,470) (7,900)
Treasury shares - (20,389)
Share premium 272,930 297,923
Retained earnings 4,145,795 3,527,482
Merger reserve 402,862 402,862
Share based payment reserve 12,672 (3,523)
Fair value reserve for investment securities
measured at fair value through other comprehensive
income 10,855 (6,674)
Cumulative currency translation reserve (42,759) (19,648)
Other reserve (363,869) (373,605)
Equity attributable to owners of the parent 4,364,698 3,798,221
----------------------------------------------------- ----------- -----------
Non-controlling interest 108,702 81,455
----------- -----------
TOTAL EQUITY 4,473,400 3,879,676
----------------------------------------------------- ----------- -----------
TOTAL LIABILITIES AND EQUITY 29,956,393 27,631,688
----------------------------------------------------- ----------- -----------
Consolidated Income Statement and Other Comprehensive Income
In thousands of GEL 9M'23 9M'22
----------------------------------------------------- ---------- ----------
Interest income 2,137,628 1,685,857
Interest expense* (943,565) (753,251)
Net interest income 1,194,063 932,606
----------------------------------------------------- ---------- ----------
Fee and commission income 484,009 377,057
Fee and commission expense (181,783) (149,723)
Net fee and commission income 302,226 227,334
----------------------------------------------------- ---------- ----------
Insurance contract revenue 96,133 81,746
Reinsurance service result (7,632) (5,219)
Insurance service claims and expenses incurred (66,301) (55,542)
----------------------------------------------------- ---------- ----------
Insurance profit 22,200 20,985
----------------------------------------------------- ---------- ----------
Net gains from currency derivatives, foreign
currency operations and translation 188,696 260,089
Net gains from disposal of investment securities
measured at fair value through other comprehensive
income 5,872 4,885
Other operating income 20,254 20,426
Share of profit of associates 913 207
Other operating non-interest income 215,735 285,607
----------------------------------------------------- ---------- ----------
Credit loss allowance for loans to customers (122,019) (91,941)
Credit loss allowance for finance lease receivable (5,167) (1,278)
Credit loss allowance for performance guarantees
and credit related commitments (292) (1,504)
Credit loss allowance for other financial assets (5,053) (5,739)
Credit loss (allowance)/recovery for financial
assets measured at fair value through other
comprehensive income (659) 1,383
Net impairment of non-financial assets (71) (767)
Operating income after expected credit and
non-financial asset impairment losses 1,600,963 1,366,686
----------------------------------------------------- ---------- ----------
Staff costs (333,206) (271,052)
Depreciation and amortisation (87,234) (74,016)
Allowance of provision for liabilities and charges (155) (2,060)
Administrative and other operating expenses (183,832) (143,697)
Operating expenses (604,427) (490,825)
----------------------------------------------------- ---------- ----------
Profit before tax 996,536 875,861
----------------------------------------------------- ---------- ----------
Income tax expense (148,002) (96,296)
---------- ----------
Profit for the period 848,534 779,565
----------------------------------------------------- ---------- ----------
Other comprehensive income:
----------------------------------------------------- ---------- ----------
Items that may be reclassified subsequently
to profit or loss:
----------------------------------------------------- ---------- ----------
Movement in fair value reserve 5,387 4,182
----------------------------------------------------- ---------- ----------
Exchange differences on translation to presentation
currency (6,901) (8,436)
----------------------------------------------------- ---------- ----------
Other comprehensive income for the period (1,514) (4,254)
----------------------------------------------------- ---------- ----------
Total comprehensive income for the period 847,020 775,311
----------------------------------------------------- ---------- ----------
Profit attributable to:
----------------------------------------------------- ---------- ----------
- Shareholders of TBCG 836,481 777,450
----------------------------------------------------- ---------- ----------
- Non-controlling interest 12,053 2,115
----------------------------------------------------- ---------- ----------
Profit for the period 848,534 779,565
----------------------------------------------------- ---------- ----------
Total comprehensive income is attributable
to:
----------------------------------------------------- ---------- ----------
- Shareholders of TBCG 834,967 773,196
----------------------------------------------------- ---------- ----------
- Non-controlling interest 12,053 2,115
----------------------------------------------------- ---------- ----------
Total comprehensive income for the period 847,020 775,311
----------------------------------------------------- ---------- ----------
* Interest expense includes net interest gains from currency
swaps
Key Ratios 9M'23
Total equity and total liabilities were restated for 30-Sep-2022
due to a change in the accounting of option contracts. As a result,
ROE and leverage ratios were restated for 9M 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) 9M'23 9M'22
------------------------------------------------------ ------- -------
Profitability ratios:
ROE(1) 27.0% 28.6%
ROA(2) 4.0% 4.1%
Cost to income(3) 34.9% 33.5%
NIM(4) 6.7% 5.9%
Loan yields(5) 12.6% 11.4%
Deposit rates(6) 4.9% 3.8%
Cost of funding(7) 5.5% 4.8%
------- -------
Asset quality & portfolio concentration:
Cost of risk(9) 0.9% 0.7%
PAR 90 to Gross Loans(9) 1.2% 1.3%
NPLs to Gross Loans(10) 2.0% 2.3%
NPL provision coverage(11) 87.6% 99.6%
Total NPL coverage(12) 151.6% 164.2%
Credit loss level to Gross Loans(13) 1.8% 2.3%
Related Party Loans to Gross Loans(14) 0.1% 0.1%
Top 10 Borrowers to Total Portfolio(15) 6.0% 6.0%
Top 20 Borrowers to Total Portfolio(16) 8.9% 9.0%
------------------------------------------------------ ------- -------
Capital & liquidity positions:
Net Loans to Deposits plus IFI Funding(17) 96.9% 89.1%
Net Stable Funding Ratio** (18) 124.1% n/a
Liquidity Coverage Ratio** (19) 114.1% n/a
Leverage(20) 6.7x 7.1x
CET 1 CAR* (Basel III)(21) 17.5% n/a
Tier 1 CAR* (Basel III)(22) 19.9% n/a
Total 1 CAR* (Basel III)(23) 22.3% n/a
------------------------------------------------------ ------- -------
* Ratios are calculated per IFRS
For the ratio definitions and exchange rates, please refer to
appendix 12.
4) Business Line Definition
According to the updated segment definition starting from 1
January 2023, the operating segments are defined as follows:
Georgian financial services include JSC TBC Bank with its
Georgian subsidiaries and JSC TBC Insurance, with its subsidiaries.
The Georgia financial service segment consist of three major
business sub-segments, while the treasury, leasing and insurance
businesses are combined into the corporate and other
sub-segments:
-- Corporate and investment banking (CIB) - a legal entity/group
of affiliated entities with an annual revenue exceeding GEL 20.0
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 sub-segment or transferred to the MSME sub-segment on a
discretionary basis. In addition, CIB includes Wealth Management
(WM) private banking services to high-net-worth individuals with a
threshold of US$ 250,000 in assets under management (AUM), as well
as on a discretionary basis;
-- Retail - non-business individual customers;
-- 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.
5) Financial Disclosures by Business Lines
Consolidated Statement of Financial Position Sep'23
In thousands of GEL Georgia Uzbekistan* Payme TBC UZ Other** Group
FS
--------------------------------- ----------- ------------ -------- --------- ---------- -----------
ASSETS
Cash and cash equivalents 2,594,629 47,811 752 47,151 6,029 2,648,469
Due from other banks 38,923 - 4,417 - 31 38,954
Mandatory cash balances
with National Bank of
Georgia and Central Bank
of Uzbekistan 1,899,949 4,061 - 4,061 - 1,904,010
Loans and advances to
customers 19,386,577 604,856 - 604,856 11,588 20,003,021
Investment securities
measured at fair value
through other comprehensive
income 3,071,046 - - - - 3,071,046
Bonds carried at amortised
cost 11,199 54,090 - 54,090 - 65,289
Finance lease receivables 328,757 27,950 - 27,950 7,370 364,077
Investment properties 20,629 - - - - 20,629
Current income tax prepayment 15,506 - - - 556 16,062
Deferred income tax asset 123 10,200 - 10,200 398 10,721
Other financial assets 271,833 4,995 5,430 - (17,057) 259,771
Other assets 427,873 19,777 3,968 15,809 1,672 449,322
Premises and equipment 462,594 14,731 4,613 10,118 4,542 481,867
Right of use assets 108,331 6,218 1,462 4,756 1,713 116,262
Intangible assets 343,711 27,642 3,420 24,222 71,636 442,989
Goodwill 28,198 1,912 - 1,912 29,854 59,964
Investments in associates 18,555 - - - (14,615) 3,940
TOTAL ASSETS 29,028,433 824,243 24,062 805,125 103,717 29,956,393
--------------------------------- ----------- ------------ -------- --------- ---------- -----------
LIABILITIES
Due to credit institutions 3,278,155 46,504 - 46,504 6,266 3,330,925
Customer accounts 18,300,485 515,586 - 520,096 (93,656) 18,722,415
Lease liabilities 80,502 7,015 1,565 5,450 1,376 88,893
Other financial liabilities 587,417 2,298 1,257 1,041 (74,715) 515,000
Current income tax liability 17,939 - - - 19 17,958
Debt Securities in issue 1,264,218 - - - 168,175 1,432,393
Deferred income tax liability 109,854 - - - - 109,854
Provisions for liabilities
and charges 20,384 - - - - 20,384
Other liabilities 68,111 18,888 2,973 16,349 6,185 93,184
Redemption liability - - - - 363,871 363,871
Subordinated debt 788,116 - - - - 788,116
TOTAL LIABILITIES 24,515,181 590,291 5,795 589,440 377,521 25,482,993
--------------------------------- ----------- ------------ -------- --------- ---------- -----------
EQUITY
Share capital 28,498 277,948 1,254 276,694 (304,764) 1,682
Shares held by trust - - - - (75,470) (75,470)
Share premium 521,190 27,860 - 27,860 (276,120) 272,930
Retained earnings 4,037,519 (38,836) 21,798 (60,634) 147,112 4,145,795
Merger reserve - 67 67 - 402,795 402,862
Share based payment reserve (85,001) - - - 97,673 12,672
Fair value reserve for
investment securities
measured at fair value
through other comprehensive
income 10,849 211 211 - (205) 10,855
Cumulative currency translation
reserve - (33,298) (5,063) (28,235) (9,461) (42,759)
Other reserve - - - - (363,869) (363,869)
Net assets attributable
to owners 4,513,055 233,952 18,267 215,685 (382,309) 4,364,698
--------------------------------- ----------- ------------ -------- --------- ---------- -----------
Non-controlling interest 197 - - - 108,505 108,702
----------- ------------ -------- --------- ---------- -----------
TOTAL EQUITY 4,513,252 233,952 18,267 215,685 (273,804) 4,473,400
--------------------------------- ----------- ------------ -------- --------- ---------- -----------
TOTAL LIABILITIES AND
EQUITY 29,028,433 824,243 24,062 805,125 103,717 29,956,393
--------------------------------- ----------- ------------ -------- --------- ---------- -----------
* Includes intra-group eliminations
** Includes Azerbaijan, TNET, other subsidiaries and intra-group
eliminations
Consolidated Income Statement and Other Comprehensive Income
3Q'23
In thousands of GEL Georgia Uzbekistan** Payme TBC Other Group
FS UZ ***
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Interest income 683,275 68,549 88 68,549 1,834 753,658
Interest expense* (292,486) (32,379) (77) (32,391) (859) (325,724)
Net interest income 390,789 36,170 11 36,158 975 427,934
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Fee and commission income 144,172 24,632 18,619 16,807 1,675 170,479
Fee and commission expense (59,771) (6,540) (1,705) (15,610) (16) (66,327)
Net fee and commission income 84,401 18,092 16,914 1,197 1,659 104,152
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Insurance profit 9,939 - - - (141) 9,798
Net gains from currency derivatives,
foreign currency operations and
translation 68,938 56 6 50 (2,026) 66,968
Net gains from disposal of investment
securities measured at fair value
through other comprehensive income 1,553 - - - - 1,553
Other operating income 2,492 36 - 36 1,915 4,443
Share of profit of associates 371 - - - - 371
Other operating non-interest
income 83,293 92 6 86 (252) 83,133
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Credit loss allowance for loans
to customers (32,173) (10,694) - (10,694) 272 (42,595)
Credit loss allowance for finance
lease receivable (2,459) (575) - (575) (1) (3,035)
Credit loss recovery for performance
guarantees and credit related
commitments 644 - - - - 644
Credit loss allowance for other
financial assets (986) 23 (3) 26 - (963)
Credit loss allowance for financial
assets measured at fair value
through other comprehensive income (497) - - - - (497)
Net recovery of non-financial
assets 29 - - - 258 287
Operating income after expected
credit and non-financial asset
impairment losses 523,041 43,108 16,928 26,198 2,911 569,060
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Staff costs (101,647) (10,047) (2,289) (7,758) (9,362) (121,056)
Depreciation and amortisation (25,077) (2,255) (297) (1,958) (1,954) (29,286)
Allowance of provision for liabilities
and charges (34) - - - - (34)
Administrative and other operating
expenses (49,056) (15,929) (3,415) (12,532) (2,726) (67,711)
Operating expenses (175,814) (28,231) (6,001) (22,248) (14,042) (218,087)
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Profit before tax 347,227 14,877 10,927 3,950 (11,131) 350,973
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Income tax expense (49,175) (1,193) (13) (1,180) (117) (50,485)
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Profit for the period 298,052 13,684 10,914 2,770 (11,248) 300,488
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Profit attributable to: - - - - - -
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
- Shareholders of TBCG 298,041 13,684 10,914 2,770 (12,703) 299,022
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
- Non-controlling interest 11 - - - 1,455 1,466
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
Profit for the period 298,052 13,684 10,914 2,770 (11,248) 300,488
---------------------------------------- ---------- ------------- -------- --------- --------- ----------
* Interest expense includes net interest gains from currency
swaps
** Includes intra-group eliminations
*** Includes Azerbaijan, TNET, other subsidiaries and
intra-group eliminations
Consolidated Income Statement and Other Comprehensive Income
9M'23
In thousands of GEL Georgia Uzbekistan** Payme TBC Other Group
FS UZ ***
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Interest income 1,960,800 171,804 88 171,804 5,024 2,137,628
Interest expense* (857,732) (82,745) (250) (82,584) (3,088) (943,565)
Net interest income 1,103,068 89,059 (162) 89,220 1,936 1,194,063
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Fee and commission income 410,393 70,473 55,331 39,320 3,143 484,009
Fee and commission expense (164,591) (17,012) (4,907) (36,264) (180) (181,783)
Net fee and commission income 245,802 53,461 50,424 3,056 2,963 302,226
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Insurance profit 22,699 - - - (499) 22,200
Net gains from currency derivatives,
foreign currency operations and
translation 202,257 139 9 130 (13,700) 188,696
Net gains from disposal of investment
securities measured at fair value
through other comprehensive income 5,872 - - - - 5,872
Other operating income 14,406 68 1 67 5,780 20,254
Share of profit of associates 913 - - - - 913
Other operating non-interest
income 246,147 207 10 197 (8,419) 237,935
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Credit loss allowance for loans
to customers (99,425) (23,576) - (23,576) 982 (122,019)
Credit loss allowance for finance
lease receivable (3,718) (1,496) - (1,496) 47 (5,167)
Credit loss allowance for performance
guarantees and credit related
commitments (292) - - - - (292)
Credit loss allowance for other
financial assets (4,696) (357) (266) (91) - (5,053)
Credit loss recovery for financial
assets measured at fair value
through other comprehensive income (659) - - - - (659)
Net impairment of non-financial
assets 220 - - - (291) (71)
Operating income after expected
credit and non-financial asset
impairment losses 1,486,447 117,298 50,006 67,310 (2,782) 1,600,963
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Staff costs (279,116) (28,347) (7,273) (21,074) (25,743) (333,206)
Depreciation and amortisation (75,370) (6,485) (782) (5,703) (5,379) (87,234)
Allowance of provision for liabilities
and charges (155) - - - - (155)
Administrative and other operating
expenses (135,347) (40,754) (9,121) (31,651) (7,731) (183,832)
Operating expenses (489,988) (75,586) (17,176) (58,428) (38,853) (604,427)
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Profit before tax 996,459 41,712 32,830 8,882 (41,635) 996,536
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Income tax (expense)/credit (145,133) (2,816) (13) (2,803) (53) (148,002)
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Profit for the period 851,326 38,896 32,817 6,079 (41,688) 848,534
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Profit attributable to:
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
- Shareholders of TBCG 851,294 38,896 32,817 6,079 (53,709) 836,481
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
- Non-controlling interest 32 - - - 12,021 12,053
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
Profit for the period 851,326 38,896 32,817 6,079 (41,688) 848,534
---------------------------------------- ---------- ------------- --------- --------- --------- ----------
* Interest expense includes net interest gains from currency
swaps
** Includes intra-group eliminations
*** Includes Azerbaijan, TNET, other subsidiaries and
intra-group eliminations
Consolidated Key Ratios by Business Lines
3Q'23 Georgia FS Uzbekistan Group
------------------------------------------ ----------- ----------- -------
Profitability ratios:
ROE(1) 26.4% 23.4% 27.6%
ROA(2) 4.2% 6.8% 4.1%
Cost to income(3) 31.5% 51.9% 35.4%
NIM(4) 6.5% 20.9% 6.9%
Loan yields(5) 11.7% 41.9% 12.6%
Deposit rates(6) 4.4% 24.4% 4.9%
Cost of funding(7) 5.0% 24.0% 5.4%
----------- ----------- -------
Asset quality & portfolio concentration:
Cost of risk(8) 0.7% 7.3% 0.9%
PAR 90 to Gross Loans(9) 1.2% 2.1% 1.2%
NPLs to Gross Loans(10) 2.0% 2.1% 2.0%
NPL provision coverage(11) 82.5% 199.9% 87.6%
Total NPL coverage(12) 148.6% 199.9% 151.6%
------------------------------------------ ----------- ----------- -------
9M'23 Georgia FS Uzbekistan Group
------------------------------------------ ----------- ----------- -------
Profitability ratios:
ROE(1) 25.9% 24.6% 27.00%
ROA(2) 4.1% 7.5% 4.0%
Cost to income(3) 30.7% 53.0% 34.9%
NIM(4) 6.4% 20.4% 6.7%
Loan yields(5) 11.8% 42.6% 12.6%
Deposit rates(6) 4.5% 24.8% 4.9%
Cost of funding(7) 5.1% 24.4% 5.5%
----------- ----------- -------
Asset quality & portfolio concentration:
Cost of risk(8) 0.7% 6.6% 0.9%
PAR 90 to Gross Loans(9) 1.2% 2.1% 1.2%
NPLs to Gross Loans(10) 2.0% 2.1% 2.0%
NPL provision coverage(11) 82.5% 199.9% 87.6%
Total NPL coverage(12) 148.6% 199.9% 151.6%
------------------------------------------ ----------- ----------- -------
For the ratio definitions and exchange rates, please refer to
appendix 12.
6) Market shares [8] in Georgia
Market shares Sep'23 Jun'23 Sep'22 Change Change
YoY QoQ
-------------------------- ------- ------- ------- --------- ---------
Total loans 39.1% 38.8% 38.8% 0.3 pp 0.3 pp
Individual loans 38.0% 38.2% 38.4% -0.4 pp -0.2 pp
Legal entities loans 40.5% 39.6% 39.3% 1.2 pp 0.9 pp
Total deposits 37.5% 39.9% 40.0% -2.5 pp -2.4 pp
Individual deposits 36.6% 37.9% 38.7% -2.1 pp -1.3 pp
Legal entities deposits 38.5% 42.2% 41.5% -3.0 pp -3.7 pp
-------------------------- ------- ------- ------- --------- ---------
7) Subsidiaries of TBC Bank Group PLC [9]
Ownership / Country Year of incorporation Industry
voting
----------- ---------------------- -----------------------
Subsidiary % as of
30-Sep 2023
----------------------- ------------- ----------- ---------------------- -----------------------
JSC TBC Bank 99.9% Georgia 1992 Banking
United Financial 99.5% Georgia 2001 Card processing
Corporation JSC
TBC Capital LLC 100.0% Georgia 1999 Brokerage
TBC Leasing JSC 100.0% Georgia 2003 Leasing
TBC Kredit LLC 100.0% Azerbaijan 1999 Non-banking credit
institution
TBC Pay LLC 100.0% Georgia 2008 Processing
Index LLC 100.0% Georgia 2009 Real estate management
TBC Invest LLC 100.0% Israel 2011 Financial services
TBC Asset management 100.0% Georgia 2021 Asset Management
LLC
JSC TBC Insurance 100.0% Georgia 2014 Insurance
Redmed LLC 100.0% Georgia 2019 Healthcare
E-commerce
T NET LLC 100.0% Georgia 2019 Asset Management
TKT UZ 100.0% Uzbekistan 2019 Retail Trade
Artarea.ge LLC 100.0% Georgia 2012 PR and marketing
Marjanishvili 7
LLC 100.0% Georgia 2020 Food and Beverage
Space JSC 100.0% Georgia 2021 Software Services
Space International 100.0% Georgia 2021 Software Services
JSC
TBC Group Support
LLC 100.0% Georgia 2020 Risk Monitoring
Inspired LLC (Payme) 51.0% Uzbekistan 2011 Processing
TBC Bank JSC UZ 60.2% Uzbekistan 2020 Banking
TBC Fin Service 100.0% Uzbekistan 2019 Retail Leasing
LLC
----------------------- ------------- ----------- ---------------------- -----------------------
8) Impact of Changed Accounting Treatment for Option Contracts
TBC Bank Group entered into put/call arrangements in April 2019
for the remaining 49% of Payme ( RNS #7827V ) and in September 2021
for the EBRD/IFCs 40% stake in TBC UZ Bank ( RNS #5753N ). The
exercise prices are dependent on a set of commercial and financial
parameters.
Following the strong growth in the Group's Uzbek operations, the
Group has re-assessed the accounting treatment for these options in
4Q 2022. According to IAS 32 requirements, in each case the present
value of the put option exercise price should have been recognised
as a redemption liability, even if the put option is out of the
money and not expected to be exercised, with a corresponding effect
on equity from when the option was entered into - not only at a
potential option exercise date. Such a requirement arises because
the put option agreement was signed with holders of the
non-controlling interest (NCI) of the subsidiary entity.
The Group has therefore re-stated 3Q 2022 balances by
recognising a redemption liability for put options and the equal
and opposite effect on other reserves in equity.
In May 2023 TBC Bank Group PLC finalized the acquisition process
of the remaining 49% interest of Inspired LLC. The acquisition
price paid to minority shareholders amounted to GEL 141,234
thousand. Accordingly, respective redemption liability has been
derecognized as it is fully settled at the acquisition date.
Should the Group consequently purchase the shares of the NCI
shareholders the additional impact on equity should be limited to
any potential subsequent remeasurement of the redemption liability,
as far as other reserves in equity have already been recognised.
Moreover, the recognition of the redemption liability has no direct
effect on the profit and loss statement or regulatory capital
ratios of TBC Bank.
In 3Q 2022, the Group recognised GEL 374 million as a redemption
liability and the equal and opposite effect on other reserves in
equity.
3Q'22 Reported Restated
------------------ --------- ---------
ROE 31.1% 33.6%
ROE (cumulative) 26.6% 28.6%
Leverage (times) 6.5x 7.1x
------------------ --------- ---------
9) Replacement of IFRS 4 with IFRS 17
The adoption of IFRS 17 will affect the financial reporting
processes and procedures of the Group, as applications of the core
principles outlined above will require additional information to be
gathered and processed, as well as additional judgements to be made
by the management. To ensure smooth and timely adoption of IFRS 17,
the Group launched a separate implementation project. After the
transition to IFRS 17 the Group will use premium allocation
approach for its insurance subsidiary for following insurance
contracts: motor insurance, border MTPL, property insurance, agro
(crop) insurance, health-related insurance and liability and other
insurance with product classification of insurance contract and
measurement model of premium allocation approach.
The Group has applied the full retrospective approach for all of
its portfolios of insurance contracts.
10) Loan Book Breakdown by Stages According IFRS 9
In millions
of GEL
Total loans* Sep'23 Jun'23 Sep'22
------------------ --------------------- --------------------- ---------------------
Stage Gross Loan loss Gross Loan loss Gross Loan loss
loans provisions loans provisions loans provisions
1 18,674 98 17,687 99 15,456 110
2 1,305 102 1,279 100 1,487 113
3 386 162 395 159 423 180
Total 20,365 362 19,361 358 17,366 403
------------------ ------- ------------ ------- ------------ ------- ------------
Georgia FS Retail Sep'23 Jun'23 Sep'22
------------------ --------------------- --------------------- ---------------------
Stage Gross Loan loss Gross Loan loss Gross Loan loss
loans provisions loans provisions loans provisions
1 6,438 46 6,249 48 5,796 63
2 584 61 584 64 638 90
3 110 68 113 71 155 96
Total 7,132 175 6,946 183 6,589 249
------------------ ------- ------------ ------- ------------ ------- ------------
Georgia FS CIB Sep'23 Jun'23 Sep'22
------------------ --------------------- --------------------- ---------------------
Stage Gross Loan loss Gross Loan loss Gross Loan loss
loans provisions loans provisions loans provisions
1 6,955 18 6,474 18 5,313 19
2 330 1 346 0 525 1
3 95 31 100 30 80 25
Total 7,380 50 6,920 48 5,918 45
------------------ ------- ------------ ------- ------------ ------- ------------
Georgia FS MSME Sep'23 Jun'23 Sep'22
------------------ --------------------- --------------------- ---------------------
Stage Gross Loan loss Gross Loan loss Gross Loan loss
loans provisions loans provisions loans provisions
1 4,680 23 4,463 24 4,079 23
2 358 31 320 28 315 21
3 166 51 167 48 177 48
Total 5,204 105 4,950 100 4,571 92
------------------ ------- ------------ ------- ------------ ------- ------------
Uzbekistan Sep'23 Jun'23 Sep'22
------------------ --------------------- --------------------- ---------------------
Stage Gross Loan loss Gross Loan loss Gross Loan loss
loans provisions loans provisions loans provisions
1 593 10 492 8 255 3
2 25 6 22 4 6 1
3 14 11 13 9 8 6
Total 632 27 527 21 269 10
------------------ ------- ------------ ------- ------------ ------- ------------
* Total loans include Azerbaijan loan portfolio
11) Glossary
Terminology Definition
----------------------- ---------------------------------------------------
BVPS Book value per share.
Digital daily active The number of retail digital users, who logged
users (Digital DAU) into our digital channels at least once per day.
Digital monthly active The number of retail digital users, who logged
users (Digital MAU) into our digital channels at least once a month.
EPS Earnings per share.
Gross merchandise GMV equals the total value of sales over the given
value (GMV) period, including auctions through housing and
auto platforms , as well as listing fees.
NBG National Bank of Georgia.
----------------------- ---------------------------------------------------
12) Ratio Definitions and Exchange Rates
Ratio definitions
1. Return on average total equity (ROE) equals net 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 net 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. 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, based on IFRS.
19. 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, based on IFRS.
20. Leverage equals total assets to total equity.
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, based on IFRS.
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, based on IFRS.
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, based on IFRS.
Exchange Rates
To calculate the QoQ growth of the Balance Sheet items without
the currency exchange rate effect, we used the US$/GEL exchange
rate of 2.6177 as of 30 June 2023. To calculate the YoY growth
without the currency exchange rate effect, we used the US$/GEL
exchange rate of 2.8352 as of 30 September 2022. As of 30 June
2023, the US$/GEL exchange rate equalled 2.6783. For P&L items
growth calculations without the currency effect, we used the
average US$/GEL exchange rate for the following periods: 3Q 2023 of
2.6215, 2Q 2023 of 2.5586, 3Q 2022 of 2.8235, 9M 2023 of 2.6056, 9M
2022 of 2.9769.
[1] Note: For better presentation purposes, certain financial
numbers are rounded the nearest whole number.
[2] Reported per IFRS.
[3] Based on data published by the Central Bank of
Uzbekistan.
[4] Remittances from Russia are adjusted for double counting
with tourism inflows and other similar effects, based on TBC
Capital estimates.
[5] Based on data published by NBG and FX-adjusted by TBC, based
on Dec-2022 end of period exchange rate.
[6] Based on data published by Uzstat.
[7] Based on data published by Central Bank of Uzbekistan.
[8] Based on data published by National Bank of Georgia on the
analytical tool Tableau.
[9] TBC Bank Group PLC became the parent company of JSC TBC Bank
on 10 August 2016.
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