TBC Bank reports 'robust' third quarter performance

4th Nov 2022 11:15

(Sharecast News) - TBC Bank reported a continued, "robust" financial performance in its third quarter on Friday, with net profit totalling GEL 321m (£104.85m), making for 55% annual growth, driven by both interest and non-interest income streams.

The FTSE 250 company said that as a result, its return on equity for the quarter stood at 31.1%, while our return on assets amounted to 4.8%.

For the first nine months, its net profit came to GEL 780m - up by 28% year-on-year - with a return on equity of 26.6% and on assets of 4.1%.

TBC said that as at 30 September, our CET1, tier 1, and total capital ratios stood at 15.3%, 18.0% and 21.4%, respectively, and remained "comfortably above" the minimum regulatory requirements by 3.5%, 3.9% and 3.7%, accordingly.

Its net stable funding and liquidity coverage ratios stood at 133% and 143%, respectively, also comfortably above the regulatory minimum of 100%.

"I am confident that the strength of our Georgian banking franchise, coupled with our international operations, will ensure strong growth and profitability in years to come," said chief executive officer Vakhtang Butskhrikidze.

"Therefore, I would like to reiterate our existing mid-term targets - return on equity to above 20%, annual loan book growth to 10-15%, and a dividend pay-out ratio to 25-35%.

"At the same time, we remain committed to operating at efficient levels and retain our cost to income ratio guidance at below 35%."

At 1048 GMT, shares in TBC Bank Group were down 0.47% at 2,100p.

Reporting by Josh White for Sharecast.com.