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 Director of Investor Relations and International Media
E-mail: AKeeley@tbcbank.com.ge Tel: +44 (0) 7791 569834 Web: www.tbcbankgroup.com
|
Anna Romelashvili Head of Investor Relations
E-mail: IR@tbcbank.com.ge Tel: +(995 32) 227 27 27 Web: www.tbcbankgroup.com
|
Investor Relations Department
E-mail: IR@tbcbank.com.ge Tel: +(995 32) 227 27 27 Web: www.tbcbankgroup.com
|
Table of Contents
3Q and 9M 2023 Unaudited Consolidated Financial Results Announcement
Interim Management Report
Letter from the Chief Executive Officer
Unaudited Consolidated Financial Results Overview for 3Q 2023
Unaudited Consolidated Financial Results Overview for 9M 2023
2) Consolidated Financial Statements and Key Ratios 3Q 2023
3) Consolidated Financial Statements and Key Ratios 9M 2023
5) Financial Disclosures by Business Lines
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
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
in thousands of GEL |
3Q'23 |
2Q'23 |
3Q'22 |
Change YoY |
Change QoQ |
9M'23 |
9M'22 |
Change 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 |
Sep'23 |
Jun'23 |
Sep'22 |
Change YoY |
Change 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
|
3Q'23 |
2Q'23 |
3Q'22 |
Change YoY |
Change QoQ |
9M'23 |
9M'22 |
Change YoY |
ROE |
27.6% |
28.1% |
33.6% |
-6.0 pp |
-0.5 pp |
27.0% |
28.6% |
-1.6 pp |
ROE - Georgia FS |
26.4% |
27.8% |
32.5% |
-6.1 pp |
-1.4 pp |
25.9% |
27.9% |
-2.0 pp |
ROA |
4.1% |
4.2% |
4.8% |
-0.7 pp |
-0.1 pp |
4.0% |
4.1% |
-0.1 pp |
ROA - Georgia FS |
4.2% |
4.5% |
5.0% |
-0.8 pp |
-0.3 pp |
4.1% |
4.3% |
-0.2 pp |
NIM |
6.9% |
6.8% |
6.3% |
0.6 pp |
0.1 pp |
6.7% |
5.9% |
0.8 pp |
Cost to income |
35.4% |
34.7% |
29.9% |
5.5 pp |
0.7 pp |
34.9% |
33.5% |
1.4 pp |
Cost to income - Georgia FS |
31.5% |
30.2% |
25.7% |
5.8 pp |
1.3 pp |
30.7% |
28.6% |
2.1 pp |
Cost of risk |
0.9% |
0.6% |
1.0% |
-0.1 pp |
0.3 pp |
0.9% |
0.7% |
0.2 pp |
NPL to gross loans |
2.0% |
2.1% |
2.3% |
-0.3 pp |
-0.1 pp |
2.0% |
2.3% |
-0.3 pp |
NPL provision coverage ratio |
87.6% |
89.3% |
99.6% |
-12.0 pp |
-1.7 pp |
87.6% |
99.6% |
-12.0 pp |
Total NPL coverage ratio |
151.6% |
153.7% |
164.2% |
-12.6 pp |
-2.1 pp |
151.6% |
164.2% |
-12.6 pp |
CET 1 CAR (Basel III) per IFRS |
17.5% |
18.3% |
n/a |
n/a |
-0.8 pp |
17.5% |
n/a |
n/a |
Tier 1 CAR (Basel III) per IFRS |
19.9% |
20.7% |
n/a |
n/a |
-0.8 pp |
19.9% |
n/a |
n/a |
Total CAR (Basel III) per IFRS |
22.3% |
23.1% |
n/a |
n/a |
-0.8 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 YoY |
Change 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 YoY |
Change 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 YoY |
Change 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 QoQ |
9M'23 |
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 YoY |
Change QoQ |
9M'23 |
9M'22 |
Change 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 YoY |
Change QoQ |
9M'23 |
9M'22 |
Change 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 3Q 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 share3. 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 20237, 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.
More 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 YoY |
Change 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 QoQ 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 YoY |
Change 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% |
|
|
|
|
|
|
Cost of risk |
0.9% |
0.6% |
1.0% |
-0.1 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 YoY |
Change 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 |
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 Coverage |
Total Coverage** |
Provision Coverage |
Total 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 YoY |
Change 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 YoY |
Change 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 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 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 |
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 Coverage |
Total Coverage** |
Provision Coverage |
Total 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, where applicable) |
3Q'23 |
2Q'23 |
3Q'22 |
|
|
|
|
Profitability ratios: |
|
|
|
ROE1 |
27.6% |
28.1% |
33.6% |
ROA2 |
4.1% |
4.2% |
4.8% |
Cost to income3 |
35.4% |
34.7% |
29.9% |
NIM4 |
6.9% |
6.8% |
6.3% |
Loan yields5 |
12.6% |
12.8% |
11.9% |
Deposit rates6 |
4.9% |
4.9% |
3.9% |
Cost of funding7 |
5.4% |
5.6% |
4.8% |
|
|
|
|
Asset quality & portfolio concentration: |
|
|
|
Cost of risk9 |
0.9% |
0.6% |
1.0% |
PAR 90 to Gross Loans9 |
1.2% |
1.2% |
1.3% |
NPLs to Gross Loans10 |
2.0% |
2.1% |
2.3% |
NPL provision coverage11 |
87.6% |
89.3% |
99.6% |
Total NPL coverage12 |
151.6% |
153.7% |
164.2% |
Credit loss level to Gross Loans13 |
1.8% |
1.8% |
2.3% |
Related Party Loans to Gross Loans14 |
0.1% |
0.1% |
0.1% |
Top 10 Borrowers to Total Portfolio15 |
6.0% |
5.8% |
6.0% |
Top 20 Borrowers to Total Portfolio16 |
8.9% |
8.7% |
9.0% |
|
|
|
|
Capital & liquidity positions: |
|
|
|
Net Loans to Deposits plus IFI Funding17 |
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 |
Leverage20 |
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: |
|
|
ROE1 |
27.0% |
28.6% |
ROA2 |
4.0% |
4.1% |
Cost to income3 |
34.9% |
33.5% |
NIM4 |
6.7% |
5.9% |
Loan yields5 |
12.6% |
11.4% |
Deposit rates6 |
4.9% |
3.8% |
Cost of funding7 |
5.5% |
4.8% |
|
|
|
Asset quality & portfolio concentration: |
|
|
Cost of risk9 |
0.9% |
0.7% |
PAR 90 to Gross Loans9 |
1.2% |
1.3% |
NPLs to Gross Loans10 |
2.0% |
2.3% |
NPL provision coverage11 |
87.6% |
99.6% |
Total NPL coverage12 |
151.6% |
164.2% |
Credit loss level to Gross Loans13 |
1.8% |
2.3% |
Related Party Loans to Gross Loans14 |
0.1% |
0.1% |
Top 10 Borrowers to Total Portfolio15 |
6.0% |
6.0% |
Top 20 Borrowers to Total Portfolio16 |
8.9% |
9.0% |
|
|
|
Capital & liquidity positions: |
|
|
Net Loans to Deposits plus IFI Funding17 |
96.9% |
89.1% |
Net Stable Funding Ratio** 18 |
124.1% |
n/a |
Liquidity Coverage Ratio** 19 |
114.1% |
n/a |
Leverage20 |
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 FS |
Uzbekistan* |
Payme |
TBC UZ |
Other** |
Group |
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 FS |
Uzbekistan** |
Payme |
TBC UZ |
Other *** |
Group |
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 FS |
Uzbekistan** |
Payme |
TBC UZ |
Other *** |
Group |
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: |
|
|
|
ROE1 |
26.4% |
23.4% |
27.6% |
ROA2 |
4.2% |
6.8% |
4.1% |
Cost to income3 |
31.5% |
51.9% |
35.4% |
NIM4 |
6.5% |
20.9% |
6.9% |
Loan yields5 |
11.7% |
41.9% |
12.6% |
Deposit rates6 |
4.4% |
24.4% |
4.9% |
Cost of funding7 |
5.0% |
24.0% |
5.4% |
|
|
|
|
Asset quality & portfolio concentration: |
|
|
|
Cost of risk8 |
0.7% |
7.3% |
0.9% |
PAR 90 to Gross Loans9 |
1.2% |
2.1% |
1.2% |
NPLs to Gross Loans10 |
2.0% |
2.1% |
2.0% |
NPL provision coverage11 |
82.5% |
199.9% |
87.6% |
Total NPL coverage12 |
148.6% |
199.9% |
151.6% |
9M'23 |
Georgia FS |
Uzbekistan |
Group |
Profitability ratios: |
|
|
|
ROE1 |
25.9% |
24.6% |
27.00% |
ROA2 |
4.1% |
7.5% |
4.0% |
Cost to income3 |
30.7% |
53.0% |
34.9% |
NIM4 |
6.4% |
20.4% |
6.7% |
Loan yields5 |
11.8% |
42.6% |
12.6% |
Deposit rates6 |
4.5% |
24.8% |
4.9% |
Cost of funding7 |
5.1% |
24.4% |
5.5% |
|
|
|
|
Asset quality & portfolio concentration: |
|
|
|
Cost of risk8 |
0.7% |
6.6% |
0.9% |
PAR 90 to Gross Loans9 |
1.2% |
2.1% |
1.2% |
NPLs to Gross Loans10 |
2.0% |
2.1% |
2.0% |
NPL provision coverage11 |
82.5% |
199.9% |
87.6% |
Total NPL coverage12 |
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 YoY |
Change 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 / voting |
Country |
Year of incorporation |
Industry |
|
Subsidiary |
% as of |
||||
JSC TBC Bank |
99.9% |
Georgia |
1992 |
Banking |
|
United Financial Corporation JSC |
99.5% |
Georgia |
2001 |
Card processing |
|
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 LLC |
100.0% |
Georgia |
2021 |
Asset Management |
|
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 JSC |
100.0% |
Georgia |
2021 |
Software Services |
|
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 LLC |
100.0% |
Uzbekistan |
2019 |
Retail Leasing |
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 |
Sep'23 |
Jun'23 |
Sep'22 |
|||
Stage |
Gross loans |
Loan loss provisions |
Gross loans |
Loan loss provisions |
Gross loans |
Loan loss 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 loans |
Loan loss provisions |
Gross loans |
Loan loss provisions |
Gross loans |
Loan loss 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 loans |
Loan loss provisions |
Gross loans |
Loan loss provisions |
Gross loans |
Loan loss 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 loans |
Loan loss provisions |
Gross loans |
Loan loss provisions |
Gross loans |
Loan loss 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 loans |
Loan loss provisions |
Gross loans |
Loan loss provisions |
Gross loans |
Loan loss 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 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. |
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.