Credit to them: TBC Bank revels in hefty net profits amid re-entry to the FTSE 250
TBC Bank has reported net profits of 207.2m GEL in its third-quarter as increased operating income spread across all categories of the business.
It has also enjoyed recoveries in loan provision charges, while strong capital generation over the quarter has fully offset the interim dividend payment of GEL 81.8 million in September 2021.
The Georgian bank’s loan book has increased by 12.6 per cent year-on-year in constant currency terms, mainly driven by the CIB and MSME segments, which translated into a 38.4 per cent market share as of 30 September 2021.
Over the same period, the group’s deposits increased by 20 per cent in constant currency terms.
As a result, TBC Bank’s market share in total deposits amounted to 40.1 per cent as of 30 September 2021.
The group has also secured investments from IFC and ERBD for its Uzbek banks, in exchange for 20 per cent stakes each.
The improved performance follows TBC Bank successfully issuing $75 million in subordinated notes earlier this month.
The new issue attracted solid demand from investors across the EU, the UK and the US, suggesting strong investor appetite for TBC Bank’s credit story.
The notes will allow TBC Bank to maintain an efficient capital structure and strong capital base to fund mid-term growth opportunities.
TBC Bank Group PLC was re-included in the FTSE 250 index from 27 October 2021 on the back of the strong recovery in its share price.
Following the results shares are now up 1.39 per cent, trading at 1,602.00.
It has now confirmed its medium term guidance, with a cost to income ratio below 35 per cent, a dividend pay-out ratio of 25-35 per cent, and annual loan growth of 10-15 per cent.