TBC Bank profits surge in third quarter

11th Nov 2016 08:32

(ShareCast News) - TBC Bank posited its unaudited IFRS consolidated results for the third quarter on Friday, with net profit up by 40.3% year-on-year to GEL 71.0m and up by 12.9% quarter-on-quarter without one-off effects in the second quarter, delivering a return on equity of 20.6% and a return on assets of 4.0%.The Georgia-based bank's total operating income in the third quarter was up by 12.9% year-on-year and by 3.8% quarter-on-quarter to GEL 161.8m.Its cost to income ratio stood at 40.5%, compared to 43.3% at the same time last year and 45.1% in the second quarter of this year.Cost of risk on loans stood at 1.1%, down by 0.9 percentage points year-on-year and unchanged over the prior quarter.TBC's net interest margin stood at 8.3%, or 8.0% without one-off effects, in the period, compared to 7.9% in the second quarter and 7.9% in the third quarter of last year."Going forward, we will focus on realizing synergies and cross-selling opportunities and on further developing the relationship with both our new and existing clients," said CEO Vakhtang Butskhrikidze."As a result, we have revised upward our ROE forecast over the medium term to 20% plus."Butskhrikidze said at the same time, the bank has have changed its medium term growth target to 15-20%."We will continue to further strengthen our leading position in the market by differentiating our business and to deliver superior customer experience as well as the best multichannel capabilities."With all these factors considered, I am confident that we are in a strong position to continue deliver superior returns."