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Fee income drives rise in TBC Bank Q3 earnings
14th Nov 2019 09:09
(Sharecast News) - Third quarter net profit at Georgia's TBC Bank rose to GEL 126.8m (£33.3m) from GEL 107.4m a year earlier driven by an increase in net fee and commission income, which offset lower net interest earnings.
Third quarter net interest income fell 6.7% to GEL 186.2m, while fee and commission income was up by a fifth to GEL 47.1m. Other operating non-interest income increased 19% to GEL 46.4m.
The bank on Thursday said net interest margin decreased by 0.4 percentage points (pp) quarter-on-quarter, due to the continued effect of a new regulation limiting the bank's ability to lend money to higher-yield retail customers.
A further decrease of 0.2 pp was related to excess liquidity and the pre-payment fee of a subordinated loan, it added.
The bank's net interest margin stood at 5% and was expected to stabilise at that level.
TBC's loan book expanded by 21.4% year-on-year, or by 14.3% on a constant currency basis.
As a result, market share increased to 38.7%, up 0.3 pp year-on-year. Customer accounts grew by 13.2% year-on-year leading to a market share of 39.3%, down by 1 pp year-on-year.
"The slight decline in market share is the result of decreased focus on customer deposits during the third quarter due to high liquidity following the recent bond issuance," TBC said.
Third quarter net interest income fell 6.7% to GEL 186.2m, while fee and commission income was up by a fifth to GEL 47.1m. Other operating non-interest income increased 19% to GEL 46.4m.
The bank on Thursday said net interest margin decreased by 0.4 percentage points (pp) quarter-on-quarter, due to the continued effect of a new regulation limiting the bank's ability to lend money to higher-yield retail customers.
A further decrease of 0.2 pp was related to excess liquidity and the pre-payment fee of a subordinated loan, it added.
The bank's net interest margin stood at 5% and was expected to stabilise at that level.
TBC's loan book expanded by 21.4% year-on-year, or by 14.3% on a constant currency basis.
As a result, market share increased to 38.7%, up 0.3 pp year-on-year. Customer accounts grew by 13.2% year-on-year leading to a market share of 39.3%, down by 1 pp year-on-year.
"The slight decline in market share is the result of decreased focus on customer deposits during the third quarter due to high liquidity following the recent bond issuance," TBC said.