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TBC Bank Group PLC
Earnings Release • May 10, 2024
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Earnings Release
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National Storage Mechanism | Additional information 
RNS Number : 7999N
TBC Bank Group PLC
10 May 2024
TBC BANK GROUP PLC ("TBC Bank")
1Q 2024 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
Forward-looking statements
This document contains forward-looking statements; such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause the actual results, performance or achievements of TBC Bank Group PLC ("the Bank" or "the Group") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Bank's present and future business strategies and the environment in which the Bank will operate in the future. Important factors that, in the view of the Bank, could cause actual results to differ materially from those discussed in the forward-looking statements include, among others: the achievement of anticipated levels of profitability; growth, cost and recent acquisitions; the impact of competitive pricing; the ability to obtain the necessary regulatory approvals and licenses; the impact of developments in the Georgian and Uzbek economies; the impact of COVID-19; the political and legal environment; financial risk management; and the impact of general business and global economic conditions.
None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises, nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the document. These forward-looking statements speak only as of the date they are made, and, subject to compliance with applicable law and regulations, the Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the document to reflect actual results, changes in assumptions or changes in factors affecting those statements.
Certain financial information contained in this presentation, which is prepared on the basis of the Group's accounting policies applied consistently from year to year, has been extracted from the Group's unaudited management accounts and financial statements. The areas in which the management accounts might differ from the International Financial Reporting Standards and/or generally accepted U.S. accounting principles could be significant; you should consult your own professional advisors and/or conduct your own due diligence for a complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this report have been subjected to rounding adjustments. Accordingly, the numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.
1Q 2024 consolidated financial results conference call details
TBC Bank Group PLC ("TBC PLC") will publish its preliminary unaudited consolidated financial results for the first quarter 2024 on Friday, 10 May 2024 at 7.00 AM BST. On the same day, the management team will host a conference call at 2.00 PM BST.
To participate in the conference call live video webinar, please register using the following link:
https://www.netroadshow.com/events/login?show=4bb3e869&confId=64445
You will receive access details via email.
Contacts
 |
| Andrew Keeley Director of Investor Relations E-mail: [email protected] Tel: +44 (0) 7791 569834 Web: www.tbcbankgroup.com |
Anna Romelashvili Head of Investor Relations E-mail: [email protected] Tel: +(995) 577 205 290 Web: www.tbcbankgroup.com |
Investor Relations Department E-mail: [email protected] Tel: +(995 32) 227 27 27 Web: www.tbcbankgroup.com |
Table of contents
1Q 2024 unaudited consolidated financial results announcement
Interim management report
Letter from the Chief Executive Officer
Unaudited consolidated financial results overview for 1Q 2024
1) Financial disclosures by business lines
3) Ratio definitions and exchange rates
1Q 2024 unaudited consolidated financial results
1Q 2024 profit of GEL 296 million, up by 16% YoY, with ROE at 25.1%.
European Union Market Abuse Regulation EU 596/2014 requires TBC Bank Group PLC to disclose that this announcement contains Inside Information, as defined in that Regulation.
Financial highlights
Income statement
| In thousands of GEL | 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ |
| Net interest income | 442,844 | 441,735 | 366,791 | 20.7% | 0.3% |
| Net fee and commission income | 104,303 | 110,099 | 92,438 | 12.8% | -5.3% |
| Other non-interest income | 70,834 | 87,443 | 73,010 | -3.0% | -19.0% |
| Total operating income | 617,981 | 639,277 | 532,239 | 16.1% | -3.3% |
| Total credit loss allowance | (45,133) | (47,480) | (53,168) | -15.1% | -4.9% |
| Operating expenses | (229,670) | (254,499) | (182,779) | 25.7% | -9.8% |
| Profit before tax | 343,178 | 337,298 | 296,292 | 15.8% | 1.7% |
| Income tax expense | (46,707) | (45,856) | (41,331) | 13.0% | 1.9% |
| Profit for the period | 296,471 | 291,442 | 254,961 | 16.3% | 1.7% |
Balance sheet
| In thousands of GEL | Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Total assets | 33,261,535 | 32,964,827 | 27,138,983 | 22.6% | 0.9% |
| Gross loans | 22,545,189 | 22,073,679 | 18,321,341 | 23.1% | 2.1% |
| Customer deposits | 20,838,768 | 20,375,498 | 17,297,630 | 20.5% | 2.3% |
| Total equity | 4,853,916 | 4,820,182 | 4,238,958 | 14.5% | 0.7% |
| Number of shares | 55,393,664 | 55,393,664 | 54,991,419 | 0.7% | 0.0% |
Key ratios
| 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ | |
| ROE | 25.1% | 25.2% | 25.2% | -0.1 pp | -0.1 pp |
| ROA | 3.6% | 3.7% | 3.6% | 0.0 pp | -0.1 pp |
| NIM | 6.5% | 6.7% | 6.4% | 0.1 pp | -0.2 pp |
| Cost to income | 37.2% | 39.8% | 34.3% | 2.9 pp | -2.6 pp |
| Cost of risk | 0.8% | 0.8% | 1.1% | -0.3 pp | 0.0 pp |
| NPL to gross loans | 2.2% | 2.0% | 2.2% | 0.0 pp | 0.2 pp |
| NPL provision coverage ratio | 74.4% | 79.8% | 92.9% | -18.5 pp | -5.4 pp |
| Total NPL coverage ratio | 140.3% | 146.3% | 154.8% | -14.5 pp | -6.0 pp |
| Leverage (x) | 6.9x | 6.8x | 6.4x | 0.5x | 0.1x |
| EPS (GEL) | 5.39 | 5.31 | 4.57 | 17.9% | 1.5% |
| Diluted EPS (GEL) | 5.36 | 5.26 | 4.50 | 19.1% | 1.9% |
| BVPS (GEL) | 86.11 | 86.32 | 75.91 | 13.4% | -0.2% |
| Georgia | |||||
| CET 1 CAR | 16.6% | 17.4% | 17.7% | -1.1 pp | -0.8 pp |
| Tier 1 CAR | 18.8% | 19.6% | 20.1% | -1.3 pp | -0.8 pp |
| Total CAR | 21.5% | 22.1% | 22.2% | -0.7 pp | -0.6 pp |
| Uzbekistan | |||||
| CET 1 CAR | 12.7% | 15.4% | 23.1% | -10.4 pp | -2.7 pp |
| Tier 1 CAR | 12.7% | 15.4% | 23.1% | -10.4 pp | -2.7 pp |
| Total CAR | 16.2% | 16.3% | 23.6% | -7.4 pp | -0.1 pp |
Operational highlights
Customer base
| In thousands | Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Total number of unique registered users | 17,884 | 16,490 | 13,272 | 35% | 8% |
| Georgia | 3,317 | 3,275 | 3,100 | 7% | 1% |
| Uzbekistan | 14,567 | 13,215 | 10,172 | 43% | 10% |
| Total monthly active customers | 6,331 | 5,890 | 5,123 | 24% | 7% |
| Georgia | 1,615 | 1,604 | 1,519 | 6% | 1% |
| Uzbekistan | 4,716 | 4,286 | 3,604 | 31% | 10% |
| Total digital monthly active users (digital MAU) | 5,646 | 5,207 | 4,433 | 27% | 8% |
| Georgia | 930 | 921 | 829 | 12% | 1% |
| Uzbekistan | 4,716 | 4,286 | 3,604 | 31% | 10% |
| Total digital daily active users (digital DAU) | 1,760 | 1,718 | 1,358 | 30% | 2% |
| Georgia | 413 | 421 | 368 | 12% | -2% |
| Uzbekistan | 1,347 | 1,297 | 990 | 36% | 4% |
| Digital DAU/MAU | 31% | 33% | 31% | 0 pp | -2 pp |
| Georgia | 44% | 46% | 44% | 0 pp | -2 pp |
| Uzbekistan | 29% | 30% | 27% | 2 pp | -1 pp |
Uzbekistan - key highlights
| Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ | |
| Loans and advances to customers (GEL, thousands) | 928,553 | 796,930 | 407,993 | 127.6% | 16.5% |
| Customer accounts (GEL, thousands) | 657,190 | 581,483 | 374,429 | 75.5% | 13.0% |
| Payme's payments volume (GEL, billion) | 2.5 | 2.6 | 2.2 | 13.6% | -3.8% |
| 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ | |
| Profit for the period (GEL, thousands) | 18,436 | 20,433 | 12,708 | 45.1% | -9.8% |
| ROE | 23.7% | 29.7% | 28.1% | -4.4 pp | -6.0 pp |
TNET - digital lifestyle platform in Georgia
| In millions | 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ |
| Gross merchandise value (GMV, GEL) | 36.2 | 36.4 | 30.4 | 19.1% | -0.5% |
| Number of transactions | 4.1 | 4.1 | 3.4 | 20.6% | 0.0% |
Letter from the Chief Executive Officer [1]
I am pleased to report that we started 2024 strongly , with net income increasing 16% year-on-year to GEL 296 million, and our ROE remaining above 25%. Operating income was also up by 16% to GEL 618 million.
Before discussing our 1Q 2024 results in more detail , I would like to highlight that in April we successfully issued USD 300 million AT1 bonds , with strong investor demand from the EU, UK, and US and which prices c. 50 bps below our outstanding AT1 bonds that are callable in October this year. This AT1 offering will reinforce our capital structure and help to provide an excellent foundation for pursuing growth opportunities over the next few years.
Turning back to our financials, our high profitability was driven by strong net interest income, which grew by 21% year-on-year, underpinned by dynamic loan book growth and resilient margins, while our net fee and commission income rose 13%. Our solid revenue streams continue to be supported by sound asset quality, which translated into 0.8% cost of risk. At the same time, our operating expenses increased by 26% due to the expansion of our business, with our Uzbek operations accounting for almost 40% of the growth. Consequently, our cost to income ratio stood at 37.2% in 1Q 2024.
Credit growth remained robust in 1Q 2024 with the Group's gross loan book increasing by 21% year-on-year on a constant currency basis. In parallel, the Group's total deposits grew by 18% year-on-year on a constant currency basis, highlighting strong funding support.
Our active customer base also continues to increase, in particular in Uzbekistan. Our digital MAU reached 5.6 million at the Group level by end of March 2024, up 27% year-on-year , while almost one third of our users are active across our digital platforms on a daily basis.
I would like to highlight the performance of our digital financial services businesses in Uzbekistan , which continue to go from strength to strength as they become a significant contributor to the overall Group's balance sheet and profitability. In 1Q 2024 alone, Uzbekistan generated GEL 74 million in total operating income and GEL 18 million in net profit , constituting 12% and 6% of the Group totals, respectively. Over the same period, the ROE of our Uzbek operations amounted to a very healthy 23.7%.
In addition, TBC UZ is delivering remarkable growth in its balance sheet . As of the end of 1Q 2024, TBC UZ's retail loans amounted to GEL 929 million, up by 128% year-on-year and accounting for 42 % of the Group's consumer loans with a micro loan market share [2] of 15.3 %. At the same time, TBC UZ retail deposits reached GEL 657 million, up by 76% year-on-year, representing 8% of the Group's retail deposits and capturing 3.4 % retail deposit market share2 . Our focus in Uzbekistan this year is on new product development, in particular rolling out credit cards, daily and MSME banking as well as scaling up our business as we continue to build greater synergies and integration within our digital banking and payments businesses .
I believe that the Group is well positioned to build further on this strong start to the year and deliver excellent results for our shareholders in 2024, as well as ensuring we are on track to meet our strategic targets for next year. We continue to feel the benefits of strong economic growth within our two major operating countries, with our outlook for Georgian economic growth this year raised to 6.4%, while we expect very solid and consistent 5.6% growth in Uzbekistan.
Finally, I am pleased to report that the Board has approved a buyback programme of up to GEL75 million, of which GEL 50 million will be for share cancellation and GEL 25 million for the Employee Benefit Trust.
Vakhtang Butskhrikidze
CEO, TBC Bank Group PLC
Economic overview
Georgia
Economic growth remains robust
Economic activity eased slightly but still remained very strong in 1Q 2024, with real GDP increasing by 7.8%, following 7.5% growth in 2023. External sector activity in 1Q 2024 continued to be negatively affected by lower international commodity prices, with domestic exports particularly hard hit despite a mild recovery in ferro-alloy exports. Exports and imports denominated in US dollars decreased by 9.3% and 5.3% YoY in 1Q 2024, respectively.
On a more positive note, tourism revenues excluding Russia, Ukraine and Belarus increased by 30.8% YoY in 1Q 2024, while overall tourism including migration impact grew by 1.5%, given that migrants are gradually being counted as residents by the NBG and hence excluded from the tourism sector. Meanwhile, remittances fell 20.7% [3] YoY in 1Q 2024, driven by a high base effect in money transfers from Russia. Total FDI in 2023 decreased by 24.0% YoY, due to very large liability repayments, however, reinvested earnings and equity investments reached an all time high of USD 2.5 billion. Combined with a high contribution from investment in GDP growth , this points to continued positive momentum in both actual and potential economic output.
Fiscal consolidation continues in 1Q
The government remains focused on fiscal consolidation by reducing the budget deficit relative to GDP. A sizable surplus was recorded in 1Q 2024, with the budget balance [4] standing at 1.3% of GDP, while the government targets 2.5% deficit for the full year, compared to 2.8% in 2023 and 3.0% in 2022.
Credit growth remains strong
Following 17.0% growth in 2023, bank credit growth accelerated slightly to 17.2% YoY as of March 2024 at constant exchange rates [5] . At the same time, as low and stable inflation persisted, YoY growth in real credit also remained high at 16.6%. Credit growth remains stronger for legal entities, increasing by 20.6% YoY, while lending to individuals was up by 14.4% in 1Q 2024. The dedollarization of bank lending continues, wth the share of FX loans slightly decreasing to 45.0% at the end of 1Q 2024 (down from 45.2% YTD).
Low inflation enables monetary policy easing
Despite substantial easing and volatile market sentiment, the GEL, with support from still high net currency inflows, remained almost unchanged against the USD during 1Q 2024, standing at 2.69 at the end of March. Notably, leveraging strong inflows, the NBG switched back to reserve accumulation, purchasing USD 88 million in the first three months of 2024.
CPI inflation stabilised well below the NBG's target of 3%, standing at 0.5% YoY in March . However, domestic and service inflation measures showed gradual acceleration. Nevertheless, low overall inflation led the NBG to deliver two rate cuts in the first quarter, reducing the monetary policy rate (MPR) to 8.25%.
Uzbekistan
Continued strong economic performance
Uzbekistan also continues to show strong economic activity with 6.2% [6] real GDP growth in 1Q 2024. However, the annual growth rates of external trade decreased compared to the 4Q 2023 and amounted to 10.5% [7] for exports of goods and 1.8% for imports, with the latter being affected by high base effect related to a one-off. Retail credit growth remains robust at 40%6 YoY at end March, with mortgage credit expanding by 24% and non-mortgage credit by 53%.
Annual inflation decreased slightly from 8.8% in December to 8.0%6 in March, with a more pronounced deceleration evident when compared to 11.7% in March 2023. The CBU kept its monetary policy rate unchanged at 14.0% in the first quarter. The UZS stood at 12,6206 relative to the USD at the end of March 2024, depreciating by 2.3% in 1Q 2024, while the REER (real effective exchange rate) remained broadly stable.
Upgrading Georgian economic growth forecast
Given the strong start to 2024, we recently upgraded our forecast for real GDP growth in Georgia to 6.4% (from 5.6%), while our projection for Uzbekistan stands at 5.6%.
Mor e information on the Georgian economy and financial sector can be found at www.tbccapital.ge .
Unaudited consolidated financial results overview for 1Q 2024
This statement provides a summary of the business and financial trends for 1Q 2024 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.
Please note that there might be slight differences in previous periods' figures due to rounding.
Consolidated income statement and other comprehensive income
| In thousands of GEL | 1Q'24 | 4Q'23 | 1Q'23 |
| Interest income | 840,354 | 810,428 | 672,150 |
| Interest expense | (397,510) | (368,693) | (305,359) |
| Net interest income | 442,844 | 441,735 | 366,791 |
| Fee and commission income | 179,488 | 192,341 | 151,801 |
| Fee and commission expense | (75,185) | (82,242) | (59,363) |
| Net fee and commission income | 104,303 | 110,099 | 92,438 |
| Insurance contract revenue | 36,448 | 33,665 | 29,524 |
| Reinsurance service result | 1,172 | 1,161 | (2,870) |
| Insurance service claims and expenses incurred | (29,817) | (25,736) | (20,436) |
| Net insurance income | 7,803 | 9,090 | 6,218 |
| Net gains from currency derivatives, foreign currency operations and translation | 61,469 | 68,228 | 60,601 |
| Net gains from disposal of investment securities measured at fair value through other comprehensive income | 233 | 8 | 2,012 |
| Other operating income | 1,369 | 10,372 | 3,905 |
| Share of (loss)/profit of associates | (41) | (256) | 274 |
| Other operating non-interest income | 63,030 | 78,352 | 66,792 |
| Credit loss allowance for loans to customers | (43,900) | (40,640) | (50,040) |
| Credit loss (allowance)/recovery for finance lease receivable | (2,046) | 1,129 | (1,073) |
| Credit loss (allowance)/recovery for performance guarantees and credit related commitments | (394) | (612) | 337 |
| Credit loss recovery/(allowance) for other financial assets | 1,590 | (4,890) | (1,954) |
| Credit loss allowance for financial assets measured at fair value through other comprehensive income | (335) | (407) | (296) |
| Net impairment of non-financial assets | (46) | (2,059) | (142) |
| Operating income after expected credit and non-financial asset impairment losses | 572,849 | 591,797 | 479,071 |
| Staff costs | (126,563) | (139,766) | (103,426) |
| Depreciation and amortisation | (34,108) | (28,741) | (28,361) |
| Allowance of provision for liabilities and charges | 78 | - | (71) |
| Administrative and other operating expenses | (69,078) | (85,993) | (50,922) |
| Operating expenses | (229,671) | (254,500) | (182,780) |
| Profit before tax | 343,178 | 337,297 | 296,291 |
| Income tax expense | (46,707) | (45,856) | (41,331) |
| Profit for the period | 296,471 | 291,441 | 254,960 |
| Other comprehensive income, net of tax: | |||
| Items that may be reclassified subsequently to profit or loss: | |||
| Movement in fair value reserve, net of tax | 21,351 | 1,491 | 8,036 |
| Exchange differences on translation to presentation currency | (13,733) | (2,065) | (5,166) |
| Net other movements | 58 | (33) | - |
| Other comprehensive expense for the period, net of tax | 7,676 | (607) | 2,870 |
| Total comprehensive income for the period | 304,147 | 290,834 | 257,830 |
| Profit attributable to: | |||
| - Shareholders of TBCG | 292,805 | 287,699 | 248,668 |
| - Non-controlling interest | 3,666 | 3,742 | 6,292 |
| Profit for the period | 296,471 | 291,441 | 254,960 |
| Total comprehensive income is attributable to: | |||
| - Shareholders of TBCG | 300,481 | 287,092 | 251,538 |
| - Non-controlling interest | 3,666 | 3,742 | 6,292 |
| Total comprehensive income for the period | 304,147 | 290,834 | 257,830 |
Consolidated balance sheet
| In thousands of GEL | Mar'24 | Dec'23 | Mar'23 |
| ASSETS | |||
| Cash and cash equivalents | 3,147,389 | 3,764,087 | 2,188,553 |
| Due from other banks | 24,296 | 47,941 | 38,738 |
| Mandatory cash balances with National Bank of Georgia and the Central Bank of Uzbekistan | 1,557,221 | 1,577,074 | 1,817,145 |
| Loans and advances to customers | 22,183,529 | 21,722,107 | 17,953,053 |
| Investment securities measured at fair value through other comprehensive income | 3,875,799 | 3,475,461 | 3,047,598 |
| Bonds carried at amortised cost | 73,098 | 73,963 | 30,967 |
| Finance lease receivables | 411,386 | 400,411 | 316,247 |
| Investment properties | 15,921 | 15,235 | 21,080 |
| Investments in associates | 3,493 | 4,204 | 4,095 |
| Current income tax prepayment | 5,446 | 435 | 856 |
| Deferred income tax asset | 4,371 | 7,400 | 13,867 |
| Other financial assets | 311,427 | 280,268 | 258,135 |
| Other assets | 454,171 | 431,477 | 426,341 |
| Premises and equipment | 517,699 | 513,340 | 448,041 |
| Right of use assets | 126,880 | 120,077 | 112,977 |
| Intangible assets | 489,445 | 471,383 | 401,326 |
| Goodwill | 59,964 | 59,964 | 59,964 |
| TOTAL ASSETS | 33,261,535 | 32,964,827 | 27,138,983 |
| LIABILITIES | |||
| Due to credit institutions | 3,702,517 | 4,395,182 | 2,596,880 |
| Customer accounts | 20,838,768 | 20,375,498 | 17,297,630 |
| Other financial liabilities | 636,939 | 358,522 | 345,017 |
| Current income tax liability | 11,946 | 67,945 | 6,659 |
| Deferred income tax liability | 53,315 | 50,957 | 114,300 |
| Debt Securities in issue | 1,501,651 | 1,426,174 | 1,324,815 |
| Provision for liabilities and charges | 21,118 | 21,060 | 19,228 |
| Other liabilities | 116,323 | 123,218 | 67,024 |
| Lease liabilities | 99,501 | 91,879 | 79,989 |
| Subordinated debt | 1,050,191 | 868,730 | 583,678 |
| Redemption liability | 375,350 | 365,480 | 464,805 |
| TOTAL LIABILITIES | 28,407,619 | 28,144,645 | 22,900,025 |
| EQUITY | |||
| Share capital | 1,690 | 1,690 | 1,676 |
| Shares held by trust | (45,675) | (75,609) | (37,239) |
| Share premium | 295,605 | 295,605 | 261,719 |
| Retained earnings | 4,470,376 | 4,433,496 | 3,993,387 |
| Merger reserve | 402,862 | 402,862 | 402,862 |
| Share based payment reserve | (14,689) | 23,677 | (2,815) |
| Fair value reserve for investment securities measured at fair value through other comprehensive income | 33,696 | 12,345 | 13,503 |
| Cumulative currency translation reserve | (54,737) | (44,824) | (41,024) |
| Other reserve | (375,320) | (365,513) | (464,805) |
| Equity attributable to owners of the parent | 4,713,808 | 4,683,729 | 4,127,264 |
| Non-controlling interest | 140,108 | 136,453 | 111,694 |
| TOTAL EQUITY | 4,853,916 | 4,820,182 | 4,238,958 |
| TOTAL LIABILITIES AND EQUITY | 33,261,535 | 32,964,827 | 27,138,983 |
Ratios
| Ratios (based on monthly averages, where applicable) | 1Q'24 | 4Q'23 | 1Q'23 |
| Profitability ratios: | |||
| ROE1 | 25.1% | 25.2% | 25.2% |
| ROA2 | 3.6% | 3.7% | 3.6% |
| Cost to income3 | 37.2% | 39.8% | 34.3% |
| NIM4 | 6.5% | 6.7% | 6.4% |
| Loan yields5 | 12.7% | 12.7% | 12.4% |
| Deposit rates6 | 5.4% | 5.1% | 4.9% |
| Cost of funding7 | 6.0% | 5.7% | 5.4% |
| Asset quality & portfolio concentration: | |||
| Cost of risk9 | 0.8% | 0.8% | 1.1% |
| PAR 90 to gross loans9 | 1.2% | 1.1% | 1.3% |
| NPLs to gross loans10 | 2.2% | 2.0% | 2.2% |
| NPL provision coverage11 | 74.4% | 79.8% | 92.9% |
| Total NPL coverage12 | 140.3% | 146.3% | 154.8% |
| Credit loss level to gross loans13 | 1.6% | 1.6% | 2.0% |
| Related party loans to gross loans14 | 0.1% | 0.1% | 0.1% |
| Top 10 borrowers to total portfolio15 | 5.9% | 6.2% | 6.0% |
| Top 20 borrowers to total portfolio16 | 8.8% | 9.1% | 9.0% |
| Capital & liquidity positions: | |||
| Net loans to deposits plus IFI funding17 | 96.7% | 96.1% | 92.9% |
| Leverage (x)18 | 6.9x | 6.8x | 6.4x |
| Georgia | |||
| Net stable funding ratio19 | 114.8% | 119.9% | 131.3% |
| Liquidity coverage ratio20 | 114.6% | 115.3% | 135.7% |
| CET 1 CAR21 | 16.6% | 17.4% | 17.7% |
| Tier 1 CAR22 | 18.8% | 19.6% | 20.1% |
| Total 1 CAR23 | 21.5% | 22.1% | 22.2% |
| Uzbekistan | |||
| CET 1 CAR24 | 12.7% | 15.4% | 23.1% |
| Tier 1 CAR25 | 12.7% | 15.4% | 23.1% |
| Total 1 CAR26 | 16.2% | 16.3% | 23.6% |
Funding and liquidity in Georgia
| Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ | |
| Minimum net stable funding ratio, as defined by the NBG | 100.0% | 100.0% | 100.0% | 0.0 pp | 0.0 pp |
| Net stable funding ratio as defined by the NBG | 114.8% | 119.9% | 131.3% | -16.5 pp | -5.1 pp |
| Minimum total liquidity coverage ratio, as defined by the NBG | 100.0% | 100.0% | 100.0% | 0.0 pp | 0.0 pp |
| Minimum LCR in GEL, as defined by the NBG | 75% | 75.0% | 75.0% | 0.0 pp | 0.0 pp |
| Minimum LCR in FC, as defined by the NBG | 100.0% | 100.0% | 100.0% | 0.0 pp | 0.0 pp |
| Total liquidity coverage ratio, as defined by the NBG | 114.6% | 115.3% | 135.7% | -21.1 pp | -0.7 pp |
| LCR in GEL, as defined by the NBG | 114.8% | 109.8% | 164.2% | -49.4 pp | 5.0 pp |
| LCR in FC, as defined by the NBG | 114.4% | 120.1% | 116.5% | -2.1 pp | -5.7 pp |
Regulatory capital
Georgia
The capital ratios as of 31 March 2024 already account for the pending dividend payment effect.
| In thousands of GEL | Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| CET 1 capital | 4,096,919 | 4,235,033 | 3,667,479 | 11.7% | -3.3% |
| Tier 1 capital | 4,635,979 | 4,772,913 | 4,179,559 | 10.9% | -2.9% |
| Total capital | 5,290,327 | 5,374,301 | 4,601,884 | 15.0% | -1.6% |
| Total risk-weighted assets | 24,607,358 | 24,336,690 | 20,767,052 | 18.5% | 1.1% |
| Minimum CET 1 ratio | 14.5% | 14.3% | 14.3% | 0.2 pp | 0.2 pp |
| CET 1 capital adequacy ratio | 16.6% | 17.4% | 17.7% | -1.1 pp | -0.8 pp |
| Minimum Tier 1 ratio | 16.8% | 16.6% | 16.7% | 0.1 pp | 0.2 pp |
| Tier 1 capital adequacy ratio | 18.8% | 19.6% | 20.1% | -1.3 pp | -0.8 pp |
| Minimum total capital adequacy ratio | 19.9% | 19.8% | 19.7% | 0.2 pp | 0.1 pp |
| Total capital adequacy ratio | 21.5% | 22.1% | 22.2% | -0.7 pp | -0.6 pp |
Uzbekistan
As of 31 March 2024, our capital ratios for Uzbek bank decreased due to rapid growth in the loan book.
| Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ | |
| Minimum CET 1 ratio | 8.0% | 8.0% | 8.0% | 0.0 pp | 0.0 pp |
| CET 1 capital adequacy ratio | 12.7% | 15.4% | 23.1% | -10.4 pp | -2.7 pp |
| Minimum Tier 1 ratio | 10.0% | 10.0% | 10.0% | 0.0 pp | 0.0 pp |
| Tier 1 capital adequacy ratio | 12.7% | 15.4% | 23.1% | -10.4 pp | -2.7 pp |
| Minimum total capital adequacy ratio | 13.0% | 13.0% | 13.0% | 0.0 pp | 0.0 pp |
| Total capital adequacy ratio | 16.2% | 16.3% | 23.6% | -7.4 pp | -0.1 pp |
Loan portfolio
As of 31 March 2024, the gross loan portfolio reached GEL 22,545.2 million, up by 23.1% YoY and 2.1% QoQ, or up by 20.6% YoY and 2.6% QoQ on a constant currency basis.
In 1Q 2024, our Georgian financial services loan portfolio increased by 20.7% on a YoY and 1.6% on a QoQ basis and reached GEL 21,594.0 million, with 17.9% YoY and 2.0% QoQ growth on a constant currency basis. Over the same period, our Uzbek portfolio increased more than doubled YoY and by 16.5% QoQ. Quarterly growth translated into growth of 18.8% on a constant currency basis.
| In thousands of GEL Gross loans and advances to customers |
Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Georgian financial services (Georgia FS)* | 21,594,026 | 21,257,692 | 17,896,929 | 20.7% | 1.6% |
| Retail Georgia | 7,682,858 | 7,513,229 | 6,739,925 | 14.0% | 2.3% |
| CIB Georgia | 8,419,450 | 8,283,723 | 6,512,092 | 29.3% | 1.6% |
| MSME Georgia | 5,506,736 | 5,480,822 | 4,663,394 | 18.1% | 0.5% |
| Uzbekistan | 928,553 | 796,930 | 407,993 | 127.6% | 16.5% |
| Total gross loans and advances to customers ** | 22,545,189 | 22,073,679 | 18,321,341 | 23.1% | 2.1% |
* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan portfolio
| 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ | |
| Loan yields | 12.7% | 12.7% | 12.4% | 0.3 pp | 0.0 pp |
| GEL | 14.1% | 14.6% | 14.9% | -0.8 pp | -0.5 pp |
| FC | 8.6% | 8.7% | 8.2% | 0.4 pp | -0.1 pp |
| UZS | 43.2% | 41.7% | 43.6% | -0.4 pp | 1.5 pp |
| Georgia FS | 11.4% | 11.7% | 11.7% | -0.3 pp | -0.3 pp |
| GEL | 14.1% | 14.6% | 14.9% | -0.8 pp | -0.5 pp |
| FC | 8.6% | 8.7% | 8.2% | 0.4 pp | -0.1 pp |
| Uzbekistan | 43.2% | 41.7% | 43.6% | -0.4 pp | 1.5 pp |
| UZS | 43.2% | 41.7% | 43.6% | -0.4 pp | 1.5 pp |
| Total loan yields* | 12.7% | 12.7% | 12.4% | 0.3 pp | 0.0 pp |
* Total loans yields include Azerbaijan
Loan portfolio quality
| PAR 90 | Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Georgia FS* | 1.2% | 1.1% | 1.2% | 0.0 pp | 0.1 pp |
| Retail Georgia | 0.8% | 0.8% | 1.1% | -0.3 pp | 0.0 pp |
| CIB Georgia | 0.7% | 0.7% | 0.8% | -0.1 pp | 0.0 pp |
| MSME Georgia | 2.5% | 2.2% | 2.2% | 0.3 pp | 0.3 pp |
| Uzbekistan | 2.1% | 1.9% | 2.0% | 0.1 pp | 0.2 pp |
| Total PAR 90** | 1.2% | 1.1% | 1.3% | -0.1 pp | 0.1 pp |
* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan
| In thousands of GEL Non-performing Loans (NPL) |
Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Georgia FS* | 466,110 | 425,061 | 386,474 | 20.6% | 9.7% |
| Retail Georgia | 125,625 | 127,102 | 138,234 | -9.1% | -1.2% |
| CIB Georgia | 137,849 | 114,130 | 88,830 | 55.2% | 20.8% |
| MSME Georgia | 202,636 | 183,829 | 159,410 | 27.1% | 10.2% |
| Uzbekistan | 19,222 | 15,006 | 8,176 | 135.1% | 28.1% |
| Total non-performing loans** | 486,058 | 440,750 | 396,433 | 22.6% | 10.3% |
* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs
| NPL to gross loans | Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Georgia FS* | 2.2% | 2.0% | 2.2% | 0.0 pp | 0.2 pp |
| Retail Georgia | 1.6% | 1.7% | 2.1% | -0.5 pp | -0.1 pp |
| CIB Georgia | 1.6% | 1.4% | 1.4% | 0.2 pp | 0.2 pp |
| MSME Georgia | 3.7% | 3.4% | 3.4% | 0.3 pp | 0.3 pp |
| Uzbekistan | 2.1% | 1.9% | 2.0% | 0.1 pp | 0.2 pp |
| Total NPL to gross loans** | 2.2% | 2.0% | 2.2% | 0.0 pp | 0.2 pp |
* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs
| Mar'24 | Dec'23 | Mar'23 | ||||
| NPL Coverage | Provision Coverage | Total Coverage*** | Provision Coverage | Total Coverage*** | Provision Coverage | Total Coverage*** |
| Georgia FS* | 68.1% | 136.6% | 73.4% | 142.2% | 89.7% | 152.1% |
| Retail Georgia | 121.3% | 183.6% | 120.4% | 179.5% | 143.3% | 188.1% |
| CIB Georgia | 44.0% | 105.2% | 46.9% | 110.6% | 51.5% | 114.6% |
| MSME Georgia | 51.5% | 128.8% | 57.5% | 136.0% | 64.6% | 140.9% |
| Uzbekistan | 220.8% | 220.8% | 222.3% | 222.3% | 189.7% | 189.7% |
| Total NPL coverage** | 74.4% | 140.3% | 79.8% | 146.3% | 92.9% | 154.8% |
* Georgian FS includes sub-segment eliminations
** Total NPL coverage include Azerbaijan loans coverage
** Total NPL coverage ratio includes provision and collateral coverage
| Cost of risk (CoR) | 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ |
| Georgia FS* | 0.7% | 0.6% | 1.0% | -0.3 pp | 0.1 pp |
| Retail Georgia | 1.1% | 0.1% | 1.4% | -0.3 pp | 1.0 pp |
| CIB Georgia | 0.4% | 0.3% | -0.1% | 0.5 pp | 0.1 pp |
| MSME Georgia | 0.7% | 1.8% | 2.1% | -1.4 pp | -1.1 pp |
| Uzbekistan | 5.5% | 4.9% | 5.6% | -0.1 pp | 0.6 pp |
| Total cost of risk** | 0.8% | 0.8% | 1.1% | -0.3 pp | 0.0 pp |
* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR
Deposit portfolio
As of 31 March 2024, deposit portfolio reached GEL 20,838.8 million, up by 20.5% YoY and 2.3% QoQ, or up by 17.9% YoY and 2.5% QoQ on a constant currency basis.
In 1Q 2024, our Georgian financial services deposit portfolio increased by 19.2% on a YoY and 1.6% on a QoQ basis and reached GEL 20,219.9 million, with 16.4% YoY and 1.7% QoQ growth on a constant currency basis. Over the same period, our Uzbek portfolio almost doubled YoY and by 13.0% QoQ. The quarterly increase was translated into growth of 15.2% on a constant currency basis.
| In thousands of GEL Customer accounts |
Mar'24 | Dec'23 | Mar'23 | Change YoY | Change QoQ |
| Georgia FS* | 20,219,932 | 19,900,342 | 16,958,444 | 19.2% | 1.6% |
| Retail Georgia | 7,498,419 | 7,469,587 | 6,455,890 | 16.1% | 0.4% |
| CIB Georgia | 9,833,975 | 10,200,321 | 8,431,537 | 16.6% | -3.6% |
| MSME Georgia | 1,869,140 | 1,900,459 | 1,593,375 | 17.3% | -1.6% |
| MOF | 1,110,024 | 515,079 | 609,283 | 82.2% | 115.5% |
| Uzbekistan | 657,190 | 581,483 | 374,429 | 75.5% | 13.0% |
| Total customer accounts** | 20,838,768 | 20,375,498 | 17,297,630 | 20.5% | 2.3% |
* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations
| 1Q'24 | 4Q'23 | 1Q'23 | Change YoY | Change QoQ | |
| Deposit rates | 5.4% | 5.1% | 4.9% | 0.5 pp | 0.3 pp |
| GEL | 8.0% | 8.1% | 8.8% | -0.8 pp | -0.1 pp |
| FC | 1.3% | 1.1% | 0.7% | 0.6 pp | 0.2 pp |
| UZS | 25.5% | 25.0% | 25.4% | 0.1 pp | 0.5 pp |
| Georgian financial services | 4.8% | 4.5% | 4.5% | 0.3 pp | 0.3 pp |
| GEL | 8.0% | 8.1% | 8.8% | -0.8 pp | -0.1 pp |
| FC | 1.3% | 1.1% | 0.7% | 0.6 pp | 0.2 pp |
| Uzbek business | 25.4% | 24.9% | 25.3% | 0.1 pp | 0.5 pp |
| FC | 3.7% | 3.8% | 4.9% | -1.2 pp | -0.1 pp |
| UZS | 25.5% | 25.0% | 25.4% | 0.1 pp | 0.5 pp |
| Total deposit rates* | 5.4% | 5.1% | 4.9% | 0.5 pp | 0.3 pp |
* Total deposits rates include MOF deposits
Additional information
1) Financial disclosures by business lines
Business line definitions
According to the updated segment definition starting from 1 January 2023, the operating segments are defined as follows:
· Georgian financial services (GFS) - include JSC TBC Bank with its Georgian subsidiaries and JSC TBC Insurance with its subsidiary. The Georgia financial service segment consists of three major business sub-segments, while the treasury, leasing and insurance businesses are combined into the corporate and other sub-segments:
o Corporate and investment banking (CIB) - a legal entity/group of affiliated entities with an annual revenue exceeding GEL 20 million or which has been granted facilities of more than GEL 7.5 million. Some other business customers may also be assigned to the CIB segment or transferred to the micro, small and medium enterprises segment on a discretionary basis. In addition, CIB includes Wealth Management private banking services to high-net-worth individuals with a threshold of USD 250,000 on assets under management (AUM), as well as on discretionary basis;
o Retail - non-business individual customers;
o Micro, small and medium enterprises (MSME) - business customers who are not included in the CIB sub-segment.
· Uzbekistan - TBC Bank Uzbekistan with respective subsidiaries and Payme (Inspired LLC).
· Other - includes non-material or non-financial subsidiaries of the group and intra-group eliminations.
Income statement and other comprehensive income by business lines as of 1Q 2024
| In thousands of GEL | Georgia FS | Uzbekistan | Other** | Group |
| Interest income | 736,833 | 101,324 | 2,197 | 840,354 |
| Interest expense* | (351,165) | (47,028) | 683 | (397,510) |
| Net interest income | 385,668 | 54,296 | 2,880 | 442,844 |
| Fee and commission income | 148,492 | 28,073 | 2,923 | 179,488 |
| Fee and commission expense | (67,249) | (7,899) | (37) | (75,185) |
| Net fee and commission income | 81,243 | 20,174 | 2,886 | 104,303 |
| Net insurance income | 7,976 | - | (173) | 7,803 |
| Net gains/(losses) from currency derivatives, foreign currency operations and translation | 64,629 | (426) | (2,734) | 61,469 |
| Net gains from disposal of investment securities measured at fair value through other comprehensive income | 233 | - | - | 233 |
| Other operating income | 1,319 | 1 | 49 | 1,369 |
| Share of loss of associates | (41) | - | - | (41) |
| Other operating non-interest income | 74,116 | (425) | (2,858) | 70,833 |
| Credit loss (allowance)/recovery for loans to customers | (36,825) | (11,753) | 4,678 | (43,900) |
| Credit loss allowance for finance lease receivable | (1,548) | (403) | (95) | (2,046) |
| Credit loss allowance for performance guarantees and credit related commitments | (394) | - | - | (394) |
| Credit loss recovery/(allowance) for other financial assets | 1,710 | (120) | - | 1,590 |
| Credit loss allowance for financial assets measured at fair value through other comprehensive income | (335) | - | - | (335) |
| Net impairment of non-financial assets | (23) | - | (23) | (46) |
| Operating income after expected credit and non-financial asset impairment losses | 503,612 | 61,769 | 7,468 | 572,849 |
| Staff costs | (101,240) | (12,974) | (12,349) | (126,563) |
| Depreciation and amortisation | (29,265) | (2,759) | (2,084) | (34,108) |
| Allowance of provision for liabilities and charges | 78 | - | - | 78 |
| Administrative and other operating expenses | (44,842) | (24,635) | 399 | (69,078) |
| Operating expenses | (175,269) | (40,368) | (14,034) | (229,671) |
| Profit before tax | 328,343 | 21,401 | (6,566) | 343,178 |
| Income tax expense | (43,704) | (2,964) | (39) | (46,707) |
| Profit for the period | 284,639 | 18,437 | (6,605) | 296,471 |
| Profit attributable to: | ||||
| - Shareholders of TBCG | 284,634 | 18,437 | (10,266) | 292,805 |
| - Non-controlling interest | 5 | - | 3,661 | 3,666 |
| Profit for the period | 284,639 | 18,437 | (6,605) | 296,471 |
* Interest expense includes net interest gains from currency swaps
** Includes Azerbaijan, TNET, other subsidiaries and intra-group eliminations
Balance sheet by business lines as of 31 March 2024
| In thousands of GEL | Georgia FS | Uzbekistan | Other* | Group |
| ASSETS | ||||
| Cash and cash equivalents | 2,969,683 | 185,828 | (8,122) | 3,147,389 |
| Due from other banks | 24,268 | - | 28 | 24,296 |
| Mandatory cash balances with National Bank of Georgia and the Central Bank of Uzbekistan | 1,552,123 | 5,098 | - | 1,557,221 |
| Loans and advances to customers | 21,276,764 | 886,119 | 20,646 | 22,183,529 |
| Investment securities measured at fair value through other comprehensive income | 3,875,799 | - | - | 3,875,799 |
| Bonds carried at amortised cost | 13,969 | 59,129 | - | 73,098 |
| Finance lease receivables | 364,757 | 39,142 | 7,487 | 411,386 |
| Investment properties | 15,921 | - | - | 15,921 |
| Investments in associates | 18,106 | - | (14,613) | 3,493 |
| Current income tax prepayment | 5,201 | - | 245 | 5,446 |
| Deferred income tax asset | - | 3,966 | 405 | 4,371 |
| Other financial assets | 292,776 | 42,004 | (23,353) | 311,427 |
| Other assets | 428,817 | 20,645 | 4,709 | 454,171 |
| Premises and equipment | 495,328 | 16,070 | 6,301 | 517,699 |
| Right of use assets | 118,386 | 4,663 | 3,831 | 126,880 |
| Intangible assets | 367,873 | 32,078 | 89,494 | 489,445 |
| Goodwill | 28,197 | 1,912 | 29,855 | 59,964 |
| TOTAL ASSETS | 31,847,968 | 1,296,654 | 116,913 | 33,261,535 |
| LIABILITIES | ||||
| Due to credit institutions | 3,601,828 | 183,940 | (83,251) | 3,702,517 |
| Customer accounts | 20,219,932 | 657,190 | (38,354) | 20,838,768 |
| Other financial liabilities | 725,674 | 42,185 | (130,920) | 636,939 |
| Current income tax liability | 11,774 | - | 172 | 11,946 |
| Deferred income tax liability | 53,315 | - | - | 53,315 |
| Debt Securities in issue | 1,286,535 | - | 215,116 | 1,501,651 |
| Provision for liabilities and charges | 21,118 | - | - | 21,118 |
| Other liabilities | 70,858 | 43,336 | 2,129 | 116,323 |
| Lease liabilities | 90,136 | 5,950 | 3,415 | 99,501 |
| Subordinated debt | 1,050,650 | 43,151 | (43,610) | 1,050,191 |
| Redemption liability | - | - | 375,350 | 375,350 |
| TOTAL LIABILITIES | 27,131,820 | 975,752 | 300,047 | 28,407,619 |
| EQUITY | ||||
| Share capital | 29,148 | 331,684 | (359,142) | 1,690 |
| Shares held by trust | - | - | (45,675) | (45,675) |
| Share premium | 521,190 | 35,723 | (261,308) | 295,605 |
| Retained earnings | 4,217,188 | (4,828) | 258,016 | 4,470,376 |
| Merger reserve | - | 67 | 402,795 | 402,862 |
| Share based payment reserve | (85,276) | - | 70,587 | (14,689) |
| Fair value reserve for investment securities measured at fair value through other comprehensive income | 33,696 | - | - | 33,696 |
| Cumulative currency translation reserve | - | (41,746) | (12,991) | (54,737) |
| Other reserves | - | 2 | (375,322) | (375,320) |
| Equity attributable to owners of the parent | 4,715,946 | 320,902 | (323,040) | 4,713,808 |
| Non-controlling interest | 202 | - | 139,906 | 140,108 |
| TOTAL EQUITY | 4,716,148 | 320,902 | (183,134) | 4,853,916 |
| TOTAL LIABILITIES AND EQUITY | 31,847,968 | 1,296,654 | 116,913 | 33,261,535 |
* Includes Azerbaijan, TNET, other subsidiaries and intra-group eliminations
Key ratios by business lines
| 1Q'24 | Georgia FS | Uzbekistan | Group |
| Profitability ratios: | |||
| ROE1 | 24.0% | 23.7% | 25.1% |
| ROA2 | 3.6% | 6.5% | 3.6% |
| Cost to income3 | 32.4% | 54.5% | 37.2% |
| NIM4 | 5.9% | 23.6% | 6.5% |
| Loan yields5 | 11.4% | 43.2% | 12.7% |
| Deposit rates6 | 4.8% | 25.4% | 5.4% |
| Cost of funding7 | 5.4% | 24.1% | 6.0% |
| Asset quality & portfolio concentration: | |||
| Cost of risk8 | 0.7% | 5.5% | 0.8% |
| PAR 90 to gross loans9 | 1.2% | 2.1% | 1.2% |
| NPLs to gross loans10 | 2.2% | 2.1% | 2.2% |
| NPL provision coverage11 | 68.1% | 220.8% | 74.4% |
| Total NPL coverage12 | 136.6% | 220.8% | 140.3% |
For the ratio definitions and exchange rates, please refer to appendix 3.
2) Glossary
| Terminology | Definition |
| BVPS | Book value per share |
| CBU | Central Bank of Uzbekistan |
| Consumer loans | Unsecured loans to individuals |
| Digital daily active users (Digital DAU) | The number of retail digital users, who logged into our digital channels at least once per day |
| Digital monthly active users (Digital MAU) |
The number of retail digital users, who logged into our digital channels at least once a month |
| EPS | Earnings per share |
| Gross merchandise value (GMV) | GMV equals the total value of sales over the given period, including auctions through housing and auto platforms , as well as listing fees |
| Monthly active customers | For Georgian business, an individual user who has at least one active product as of the reporting date or performed at least one transaction during the past month. For Uzbek business, an individual user who logged into the digital application at least once during the month |
| NBG | National Bank of Georgia |
3) Ratio definitions and exchange rates
Ratio definitions
1. Return on average total equity (ROE) equals profit attributable to owners divided by the monthly average of total shareholders' equity attributable to the PLC's equity holders for the same period; annualised where applicable.
2. Return on average total assets (ROA) equals profit of the period divided by monthly average total assets for the same period; annualised where applicable.
3. Cost to income ratio equals total operating expenses for the period divided by the total revenue for the same period. (Revenue represents the sum of net interest income, net fee and commission income and other non-interest income).
4. Net interest margin (NIM) is net interest income divided by monthly average interest-earning assets; annualised where applicable. Interest-earning assets include investment securities (excluding CIB shares), net investment in finance lease, net loans, and amounts due from credit institutions.
5. Loan yields equal interest income on loans and advances to customers divided by monthly average gross loans and advances to customers; annualised where applicable.
6. Deposit rates equal interest expense on customer accounts divided by monthly average total customer deposits; annualised where applicable.
7. Cost of funding equals sum of the total interest expense and net interest gains on currency swaps (entered for funding management purposes), divided by monthly average interest-bearing liabilities; annualised where applicable.
8. Cost of risk equals credit loss allowance for loans to customers divided by monthly average gross loans and advances to customers; annualised where applicable.
9. PAR 90 to gross loans ratio equals loans for which principal or interest repayment is overdue for more than 90 days divided by the gross loan portfolio for the same period.
10. NPLs to gross loans equals loans with 90 days past due on principal or interest payments, and loans with a well-defined weakness, regardless of the existence of any past-due amount or of the number of days past due divided by the gross loan portfolio for the same period.
11. NPL provision coverage equals total credit loss allowance for loans to customers divided by the NPL loans.
12. Total NPL coverage equals total credit loss allowance plus the minimum of collateral amount of the respective NPL loan (after applying haircuts in the range of 0%-50% for cash, gold, real estate and PPE) and its gross loan exposure divided by the gross exposure of total NPL loans.
13. Credit loss level to gross loans equals credit loss allowance for loans to customers divided by the gross loan portfolio for the same period.
14. Related party loans to total loans equals related party loans divided by the gross loan portfolio.
15. Top 10 borrowers to total portfolio equals the total loan amount of the top 10 borrowers divided by the gross loan portfolio.
16. Top 20 borrowers to total portfolio equals the total loan amount of the top 20 borrowers divided by the gross loan portfolio.
17. Net loans to deposits plus IFI funding ratio equals net loans divided by total deposits plus borrowings received from international financial institutions.
18. Leverage equals total assets to total equity.
19. Net stable funding ratio equals the available amount of stable funding divided by the required amount of stable funding as defined by NBG in line with Basel III guidelines. Calculations are made for TBC Bank standalone.
20. Liquidity coverage ratio equals high-quality liquid assets divided by the total net cash outflow amount as defined by the NBG. Calculations are made for TBC Bank standalone.
21. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both calculated in accordance with requirements of the NBG Basel III standards. Calculations are made for TBC Bank standalone.
22. Tier 1 CAR equals tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG Basel III standards. Calculations are made for TBC Bank standalone.
23. Total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG Basel III standards. Calculations are made for TBC Bank standalone.
24. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both calculated in accordance with requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.
25. Tier 1 CAR equals tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.
26. Total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.
Exchange rates
To calculate the QoQ growth of the balance sheet items without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.6894 as of 31 December 2023. To calculate the YoY growth without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.5604 as of 31 March 2023. As of 31 March 2024, the USD/GEL exchange rate equalled 2.6953. For P&L items growth calculations without the currency effect, we used the average USD/GEL exchange rate for the following periods: 4Q 2023 of 26943 and 1Q 2023 of 2.6372. As of 1Q 2024, the USD/GEL exchange rate equalled 2.6713.
[1] Note: For better presentation purposes, certain financial numbers are rounded to the nearest whole number.
[2] Based on data published by the CBU, as of 1 April 2024.
[3] Remittances from Russia are adjusted for double counting with tourism inflows and other similar effects, based on TBC Capital estimates.
[4] Per IMF program definition.
[5] Based on data published by NBG and FX-adjusted by TBC, based on Dec-2023 end of period exchange rate.
[6] Based on data published by CBU.
[7] Based on data published by the Uzstat
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