TBC Bank Announces Unaudited 2Q and 1H 2023 Consolidated Financial Results
2Q 2023 net profit reached GEL 293 million, up by 25% YoY, with ROE at 28.1%.
1H 2023 net profit stood at GEL 548 million, up by 20% YoY, with ROE at 26.7%.
European Union Market Abuse Regulation EU 596/2014 requires TBC Bank Group PLC to disclose that this announcement contains Inside Information, as defined in that Regulation.
The information in this announcement, which was approved by the Board of Directors on 9 August 2023, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2022, which contained an unmodified audit report under Section 495 of the Companies Act 2006 and which did not make any statements under Section 498 of the Companies Act 2006, have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006.
Financial highlights
Income statement
| in thousands of GEL | 2Q’23 | 1Q’23 | 2Q’22 | Change YoY | Change QoQ | 1H’23 | 1H’22 | Change YoY |
| Net interest income | 399,338 | 366,791 | 303,572 | 31.5% | 8.9% | 766,129 | 592,191 | 29.4% |
| Net fee and commission income | 105,636 | 92,438 | 75,572 | 39.8% | 14.3% | 198,074 | 141,462 | 40.0% |
| Other operating non-interest income | 81,792 | 73,010 | 84,965 | -3.7% | 12.0% | 154,802 | 143,248 | 8.1% |
| Operating profit | 586,766 | 532,239 | 464,109 | 26.4% | 10.2% | 1,119,005 | 876,901 | 27.6% |
| Total credit loss allowance | (33,934) | (53,168) | (37,854) | -10.4% | -36.2% | (87,102) | (51,590) | 68.8% |
| Operating expenses | (203,560) | (182,780) | (163,635) | 24.4% | 11.4% | (386,340) | (314,585) | 22.8% |
| Profit before tax | 349,272 | 296,291 | 262,620 | 33.0% | 17.9% | 645,563 | 510,726 | 26.4% |
| Income tax expense | (56,186) | (41,331) | (28,056) | NMF | 35.9% | (97,517) | (52,181) | 86.9% |
| Profit for the period | 293,086 | 254,960 | 234,564 | 24.9% | 15.0% | 548,046 | 458,545 | 19.5% |
Balance sheet
| in thousands of GEL | Jun-23 | Mar-23 | Jun-22 | Change YoY | Change QoQ |
| Total Assets | 28,878,826 | 27,138,985 | 25,983,476 | 11.1% | 6.4% |
| Gross Loans | 19,360,689 | 18,321,341 | 17,534,515 | 10.4% | 5.7% |
| Customer Deposits | 18,992,492 | 17,297,630 | 15,772,905 | 20.4% | 9.8% |
| Total Equity | 4,331,529 | 4,238,958 | 3,756,763 | 15.3% | 2.2% |
| CET 1 Capital (Basel III) per IFRS | 3,920,004 | 3,667,479 | n/a | n/a | 6.9% |
| Tier 1 Capital (Basel III) per IFRS | 4,443,544 | 4,179,559 | n/a | n/a | 6.3% |
| Total Capital (Basel III) per IFRS | 4,947,830 | 4,601,884 | n/a | n/a | 7.5% |
| Risk Weighted Assets (Basel III) per IFRS | 21,452,808 | 20,767,052 | n/a | n/a | 3.3% |
| Number of shares (in thousands) | 55,140 | 54,991 | 55,156 | 0.0% | 0.3% |
| Key Ratios | 2Q’23 | 1Q’23 | 2Q’22 | Change YoY | Change QoQ | 1H’23 | 1H’22 | Change YoY |
| ROE | 28.1% | 25.2% | 25.7% | 2.4 pp | 2.9 pp | 26.7% | 25.9% | 0.8 pp |
| ROE – Georgia FS | 27.8% | 23.7% | 25.1% | 2.7 pp | 4.1 pp | 25.7% | 25.4% | 0.3 pp |
| ROA | 4.2% | 3.6% | 3.7% | 0.5 pp | 0.6 pp | 3.9% | 3.7% | 0.2 pp |
| ROA – Georgia FS | 4.5% | 3.8% | 3.9% | 0.6 pp | 0.7 pp | 4.1% | 4.0% | 0.1 pp |
| NIM | 6.8% | 6.4% | 5.8% | 1.0 pp | 0.4 pp | 6.6% | 5.7% | 0.9 pp |
| Cost to income | 34.7% | 34.3% | 35.3% | -0.6 pp | 0.4 pp | 34.5% | 35.9% | -1.4 pp |
| Cost to income – Georgia FS | 30.2% | 30.4% | 30.3% | -0.1 pp | -0.2 pp | 30.3% | 30.5% | -0.2 pp |
| Cost of risk | 0.6% | 1.1% | 0.9% | -0.3 pp | -0.5 pp | 0.9% | 0.6% | 0.3 pp |
| NPL to gross loans | 2.1% | 2.2% | 2.3% | -0.2 pp | -0.1 pp | 2.1% | 2.3% | -0.2 pp |
| NPL provision coverage ratio | 89.3% | 92.9% | 99.8% | -10.5 pp | -3.6 pp | 89.3% | 99.8% | -10.5 pp |
| Total NPL coverage ratio | 153.7% | 154.8% | 167.5% | -13.8 pp | -1.1 pp | 153.7% | 167.5% | -13.8 pp |
| CET 1 CAR (Basel III) per IFRS | 18.3% | 17.7% | n/a | n/a | 0.6 pp | 18.3% | n/a | n/a |
| Tier 1 CAR (Basel III) per IFRS | 20.7% | 20.1% | n/a | n/a | 0.6 pp | 20.7% | n/a | n/a |
| Total CAR (Basel III) per IFRS | 23.1% | 22.2% | n/a | n/a | 0.9 pp | 23.1% | n/a | n/a |
| Leverage (Times) | 6.7x | 6.4x | 6.9x | -0.2x | 0.3x | 6.7x | 6.9x | -0.2x |
| EPS (GEL) | 5.33 | 4.57 | 4.26 | 25.1% | 16.6% | 9.90 | 8.37 | 18.3% |
| Diluted EPS (GEL) | 5.25 | 4.50 | 4.14 | 26.8% | 16.7% | 9.76 | 8.13 | 20.0% |
| BVPS (GEL) | 78.21 | 75.91 | 67.61 | 15.7% | 3.0% | 78.21 | 67.61 | 15.7% |
Georgia FS refers to Georgian financial services
Operational highlights
Customer base
| In millions | Jun’23 | Mar’23 | Jun’22 | Change YoY | Change QoQ |
| Total number of registered users | 16.1 | 14.8 | 11.4 | 41% | 9% |
| Georgia | 3.2 | 3.1 | 2.9 | 10% | 3% |
| Uzbekistan | 12.9 | 11.7 | 8.5 | 52% | 10% |
| Total MAU | 5.1 | 5.1 | 3.7 | 38% | 0% |
| Georgia | 1.6 | 1.5 | 1.4 | 14% | 7% |
| Uzbekistan | 3.5 | 3.6 | 2.3 | 52% | -3% |
Digital customers
| In thousands | Jun’23 | Mar’23 | Jun’22 | Change YoY | Change QoQ |
| Digital DAU Georgia | 381 | 368 | 311 | 23% | 4% |
| Digital MAU Georgia | 849 | 829 | 704 | 21% | 2% |
| Digital DAU/MAU Georgia | 45% | 44% | 44% | 1 pp | 1 pp |
| Digital DAU Group | 1,434 | 1,401 | 1,032 | 39% | 2% |
| Digital MAU Group | 4,295 | 4,432 | 2,959 | 45% | -3% |
| Digital DAU/MAU Group | 33% | 32% | 35% | -2 pp | 1 pp |
Uzbekistan – key highlights
| In thousands of GEL | Jun’23 | Mar’23 | Jun’22 | Change YoY | Change QoQ |
| Gross loans | 526,843 | 407,993 | 181,345 | NMF | 29.1% |
| Customer accounts | 457,340 | 374,429 | 235,780 | 94.0% | 22.1% |
| 2Q’23 | 1Q’23 | Change QoQ | 1H’23 | |
| Net profit (GEL, thousands) | 12,505 | 12,707 | -1.6% | 25,212 |
| ROE | 22.1% | 28.1% | -6.0 pp | 25.1% |
Georgian and Uzbek payments businesses
| In millions of GEL | 2Q’23 | 1Q’23 | 2Q’22 | Change YoY | Change QoQ | 1H’23 | 1H’22 | Change YoY |
| Net revenue – Georgia | 71.0 | 61.1 | 50.7 | 40.0% | 16.2% | 132.1 | 94.0 | 40.5% |
| Net revenue – Uzbekistan | 16.8 | 16.5 | 12.0 | 40.0% | 1.8% | 33.3 | 21.5 | 54.9% |
TNET – digital lifestyle platform in Georgia
| In millions | 2Q’23 | 1Q’23 | 2Q’22 | Change YoY | Change QoQ | 1H’23 | 1H’22 | Change YoY |
| Gross merchandise value (GMV, GEL) | 52.8 | 30.4 | 28.1 | 87.9% | 73.7% | 83.2 | 42.9 | 93.9% |
| Number of transactions | 4.2 | 3.4 | 3.0 | 40.0% | 23.5% | 7.6 | 5.9 | 28.8% |
Additional Information Disclosure
The following materials are disclosed on our Investor Relations website on https://tbcbankgroup.com/ under Results Center section:
- 2Q and 1H 2023 Results Report
- 2Q and 1H 2023 Results Call Presentation
- Supplementary Data
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 38.8% of customer loans and 40.1% of customer deposits as of 30 June 2023, according to data published by the National Bank of Georgia.