TBC Bank Announces Unaudited 1Q 2023 Consolidated Financial Results
Robust profitability with 1Q 2023 net profit reaching GEL 255 million, up by 14% YoY, with ROE 25.2%.
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.
Group Financial Highlights
1Q 2023 P&L highlights
In 1Q 2023, our net profit totaled GEL 255 million, up by 14% YoY, and our ROE and ROA stood at 25.2% and 3.6%, respectively. Over the same period, our cost to income ratio improved by 2.3 pp YoY and stood at 34.3%. In 1Q 2023, our cost of risk was within our normalised range of 1% for Georgian operations, resulting in 1.1% at the Group level.
| 1Q’23 | 1Q’22 | Change YoY | |
| Profit for the period (GEL, mln) | 255.0 | 224.0 | 13.8% |
| Return on equity (ROE) | 25.2% | 26.0% | -0.8pp |
| Return on assets (ROA) | 3.6% | 3.7% | -0.1pp |
| Cost to income | 34.3% | 36.6% | -2.3pp |
| Bank’s standalone cost to income | 28.8% | 28.7% | 0.1pp |
| Cost of risk | 1.1% | 0.3% | 0.8pp |
| Net interest margin (NIM) | 6.4% | 5.6% | 0.8pp |
| EPS (GEL) | 4.57 | 4.11 | 11.2% |
| Diluted EPS (GEL) | 4.50 | 3.99 | 12.8% |
Balance sheet highlights as of 31 March 2023
By the end of the 1Q 2023, our loan book and deposit portfolio increased by 17% and 28% YoY basis, in constant currency terms, respectively. Over the same period, our NPL to gross loans stood at 2.2%, while NPL provision and total coverage ratios stood at 93% and 155%, respectively.
| 31-Mar-2023 | 31-Mar-2022 | Change YoY | |
| Total assets (GEL, mln) | 27,189.2 | 25,056.3 | 8.5% |
| Gross loans and advances to customers (GEL, mln) | 18,321.3 | 17,320.2 | 5.8% |
| Total customer deposits (GEL, mln) | 17,297.6 | 15,081.4 | 14.7% |
| Net loans to deposits + IFI funding | 92.9% | 101.4% | -8.5pp |
| Regulatory Net Stable Funding Ratio (NSFR) | 130.1% | n/a | n/a |
| NPLs | 2.2% | 2.4% | -0.2pp |
| NPL provision coverage | 92.9% | 96.0% | -3.1pp |
| Total NPL coverage ratios | 154.8% | 167.9% | -13.1pp |
| CET 1 CAR (Basel III) | 17.7% | n/a | n/a |
| Tier 1 CAR (Basel III) | 20.1% | n/a | n/a |
| Total CAR (Basel III) | 22.2% | n/a | n/a |
Our market shares in Georgia
| 31-Mar-2023 | 31-Mar-2022 | Change YoY | |
| Total loans | 39.1% | 38.9% | 0.2 pp |
| Individual loans | 38.4% | 38.6% | -0.2 pp |
| Legal entities loans | 39.8% | 39.3% | 0.5 pp |
| Total deposits | 39.3% | 40.3% | -1.0 pp |
| Individual deposits | 37.7% | 39.6% | -1.9 pp |
| Legal entities deposits | 41.1% | 41.0% | 0.1 pp |
Financial Highlights for the Uzbek Businesses (TBC UZ Bank and Payme)
After reaching breakeven in 3Q 2022, our Uzbek fintech businesses (TBC UZ and Payme) continued to generate positive returns, while TBC UZ became profitable on a standalone monthly basis at the beginning of 2023.
1Q 2023 combined financials
| 1Q'23 | 1Q'22 | Change YoY | |
| Operating income (GEL, mln) | 40.1 | 12.4 | 223% |
| Net profit (GEL, mln) | 12.7 | (4.5) | NMF |
| Return on equity (ROE) | 28.1% | n/a | n/a |
TBC UZ Bank portfolios as of 31 March 2023
| In millions of GEL | 31-Mar-2023 | 31-Mar-2022 | Change YoY |
| Gross loans and advances to customers | 408 | 144 | 183% |
| Total customer deposits | 384 | 169 | 127% |
Operating Highlights
Our user base
| In millions | 31-Mar-2023 | 31-Mar-2022 | Change YoY |
| Total number of registered users | 14.8 | 10.4 | 42% |
| Total monthly active users (MAU) | 5.1 | 3.5 | 46% |
| MAU Georgia | 1.5 | 1.4 | 7% |
| MAU Uzbekistan | 3.6 | 2.1 | 71% |
| In thousands | 31-Mar-2023 | 31-Mar-2022 | Change YoY |
| Digital daily active users (DAU) Georgia | 368 | 291 | 26% |
| Digital MAU Georgia | 829 | 672 | 23% |
| Digital DAU/MAU Georgia | 44% | 43% | 1 pp |
| Digital DAU Group | 1,401 | 963 | 45% |
| Digital MAU Group | 4,432 | 2,832 | 56% |
| Digital DAU/MAU Group | 32% | 34% | -2 pp |
Our digital ecosystem - TNET
| In millions of GEL | 1Q'23 | 1Q'22 | Change YoY |
| Gross merchandise value (GMV) | 30 | 15 | 100% |
| Loans disbursed through leads | 24 | 22 | 9% |
Additional Information Disclosure
The following materials are disclosed on our Investor Relations website on https://tbcbankgroup.com/ under Results Center section:
- Q1 2023 Results Report
- Q1 2023 Results Call Presentation
For further enquiries, please contact:
Director of Investor Relations and International Media
Andrew Keeley
Or
Head of Investor Relations
Anna Romelashvili
ir@tbcbank.com.ge
About TBC Bank Group PLC ("TBC PLC")
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 39.3% of customer deposits as of 31 March 2023, according to data published by the National Bank of Georgia.