TBC BANK GROUP PLC ("TBC
Bank")
4Q AND FY 2023 PRELIMINARY
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.
4Q and FY 2023 Consolidated Financial Results Conference Call
Details
TBC Bank Group PLC ("TBC PLC") will
publish its preliminary unaudited consolidated financial results
for the fourth quarter and full year 2023 on Friday, 16 February
2024 at 7.00 AM GMT. On the same day, the management team will host
a conference call at 2.00 PM GMT.
To participate in the conference
call live video webinar, please register using the following
link:
https://www.netroadshow.com/events/login?show=cbfcd3a8&confId=60444
You will receive access details via
email.
Contacts
Andrew Keeley
Director of Investor Relations
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
4Q and FY 2023
Preliminary Unaudited Consolidated Financial Results
Announcement
Interim Management Report
Financial Highlights
Operational Highlights
Letter from the Chief Executive
Officer
Economic Overview
Unaudited Consolidated Financial Results Overview
for 4Q 2023
Preliminary Unaudited Consolidated Financial
Results Overview for FY 2023
Additional Disclosures
1)
TBC Bank - Background
2)
Consolidated Financial Statements and Key Ratios
4Q 2023
3)
Consolidated Financial Statements and Key Ratios
FY 2023
4)
Business Line Definition
5)
Financial Disclosures by Business Lines
6)
Market shares in Georgia
7)
Subsidiaries of TBC Bank Group PLC
8)
Replacement of IFRS 4 with IFRS 17
9)
Legal and regulatory matters
10)Loan
Book Breakdown by Stages According IFRS 9
11)Glossary
12)Ratio
Definitions and Exchange Rates
4Q and FY 2023 Preliminary
Unaudited Consolidated Financial Results
4Q 2023 profit of GEL 291
million, up by 30% YoY, with ROE at 25.2%.
FY 2023 profit of GEL 1,140
million, up by 14% YoY, with ROE at 26.5%.
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.
The financial information contained in this document does not
constitute statutory accounts for the years ended 31 December 2023
and 31 December 2022 within the meaning of section 435 of the
Companies Act 2006 (the Act), but is derived from those accounts.
The statutory accounts for the year ended 31 December 2023 will be
published on the Group's website and will be delivered to the
Registrar of Companies in accordance with section 441 of the Act.
The auditor's report on those accounts is expected to be
unqualified. The statutory accounts for the year ended 31 December
2022 have been filed with the Registrar of Companies, and the
auditors' report on those accounts was unqualified, did not draw
attention to any matters by way of emphasis and did not include a
statement under sections 498(2) or 498(3) of the
Act.
Financial Highlights
Income statement
in
thousands of GEL
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
FY'23
|
FY'22
|
Change YoY
|
Net interest income
|
441,735
|
427,934
|
357,446
|
23.6%
|
3.2%
|
1,635,798
|
1,290,052
|
26.8%
|
Net fee and commission
income
|
110,099
|
104,152
|
95,332
|
15.5%
|
5.7%
|
412,325
|
322,666
|
27.8%
|
Other non-interest income
|
87,442
|
83,133
|
151,454
|
-42.3%
|
5.2%
|
325,377
|
458,046
|
-29.0%
|
Total operating income
|
639,276
|
615,219
|
604,232
|
5.8%
|
3.9%
|
2,373,500
|
2,070,764
|
14.6%
|
Total credit loss
allowance
|
(47,479)
|
(46,159)
|
(33,054)
|
43.6%
|
2.9%
|
(180,740)
|
(132,900)
|
36.0%
|
Operating expenses
|
(254,500)
|
(218,087)
|
(200,495)
|
26.9%
|
16.7%
|
(858,927)
|
(691,320)
|
24.2%
|
Profit before tax
|
337,297
|
350,973
|
370,683
|
-9.0%
|
-3.9%
|
1,333,833
|
1,246,544
|
7.0%
|
Income tax expense
|
(45,856)
|
(50,485)
|
(146,909)
|
-68.8%
|
-9.2%
|
(193,858)
|
(243,205)
|
-20.3%
|
Profit for the period
|
291,441
|
300,488
|
223,774
|
30.2%
|
-3.0%
|
1,139,975
|
1,003,339
|
13.6%
|
Balance sheet
in
thousands of GEL
|
Dec'23
|
Sep'23
|
Dec'22
|
Change YoY
|
Change QoQ
|
Total Assets
|
32,964,827
|
29,956,393
|
28,988,141
|
13.7%
|
10.0%
|
Gross Loans
|
22,073,679
|
20,365,135
|
18,204,971
|
21.3%
|
8.4%
|
Customer Deposits
|
20,375,498
|
18,722,415
|
18,036,533
|
13.0%
|
8.8%
|
Total Equity
|
4,820,182
|
4,473,400
|
3,966,414
|
21.5%
|
7.8%
|
CET 1 Capital (Basel III)
|
4,235,033
|
3,966,901
|
n/a
|
n/a
|
6.8%
|
Tier 1 Capital (Basel
III)
|
4,772,913
|
4,502,561
|
n/a
|
n/a
|
6.0%
|
Total Capital (Basel III)
|
5,374,301
|
5,058,696
|
n/a
|
n/a
|
6.2%
|
Risk Weighted Assets (Basel
III)
|
24,336,690
|
22,668,335
|
n/a
|
n/a
|
7.4%
|
Number of shares
|
55,393,664
|
55,140,216
|
55,102,766
|
0.5%
|
0.5%
|
Key Ratios
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
FY'23
|
FY'22
|
Change YoY
|
ROE
|
25.2%
|
27.6%
|
22.3%
|
2.9 pp
|
-2.4 pp
|
26.5%
|
27.0%
|
-0.5 pp
|
ROE - Georgia FS
|
24.7%
|
26.4%
|
21.0%
|
3.7 pp
|
-1.7 pp
|
25.5%
|
26.0%
|
-0.5 pp
|
ROA
|
3.7%
|
4.1%
|
3.1%
|
0.6 pp
|
-0.4 pp
|
3.9%
|
3.8%
|
0.1 pp
|
ROA - Georgia FS
|
3.8%
|
4.2%
|
3.3%
|
0.5 pp
|
-0.4 pp
|
4.0%
|
4.1%
|
-0.1 pp
|
NIM
|
6.7%
|
6.9%
|
6.3%
|
0.4 pp
|
-0.2 pp
|
6.7%
|
6.0%
|
0.7 pp
|
Cost to income
|
39.8%
|
35.4%
|
33.2%
|
6.6 pp
|
4.4 pp
|
36.2%
|
33.4%
|
2.8 pp
|
Cost to income - Georgia
FS
|
35.4%
|
31.5%
|
29.7%
|
5.7 pp
|
3.9 pp
|
31.9%
|
28.9%
|
3.0 pp
|
Cost of risk
|
0.8%
|
0.9%
|
0.6%
|
0.2 pp
|
-0.1 pp
|
0.8%
|
0.7%
|
0.1 pp
|
NPL to gross loans
|
2.0%
|
2.0%
|
2.2%
|
-0.2 pp
|
0.0 pp
|
2.0%
|
2.2%
|
-0.2 pp
|
NPL provision coverage
ratio
|
79.8%
|
87.6%
|
93.7%
|
-13.9 pp
|
-7.8 pp
|
79.8%
|
93.7%
|
-13.9 pp
|
Total NPL coverage ratio
|
146.3%
|
151.6%
|
155.6%
|
-9.3 pp
|
-5.3 pp
|
146.3%
|
155.6%
|
-9.3 pp
|
CET 1 CAR (Basel III)
|
17.4%
|
17.5%
|
n/a
|
n/a
|
-0.1 pp
|
17.4%
|
n/a
|
n/a
|
Tier 1 CAR (Basel III)
|
19.6%
|
19.9%
|
n/a
|
n/a
|
-0.3 pp
|
19.6%
|
n/a
|
n/a
|
Total CAR (Basel III)
|
22.1%
|
22.3%
|
n/a
|
n/a
|
-0.2 pp
|
22.1%
|
n/a
|
n/a
|
Leverage (Times)
|
6.8x
|
6.7x
|
7.3x
|
-0.5x
|
0.1x
|
6.8x
|
7.3x
|
-0.5x
|
EPS (GEL)
|
5.31
|
5.54
|
3.98
|
33.4%
|
-4.2%
|
20.74
|
15.44
|
34.3%
|
Diluted EPS (GEL)
|
5.26
|
5.45
|
3.91
|
34.5%
|
-3.5%
|
20.58
|
15.22
|
35.2%
|
BVPS (GEL)
|
86.32
|
80.81
|
71.27
|
21.1%
|
6.8%
|
86.32
|
71.27
|
21.1%
|
Georgia FS refers to Georgian financial
services.
For the ratio definitions please refer to appendix
12.
Operational Highlights
Customer base
In
millions
|
Dec'23
|
Sep'23
|
Dec'22
|
Change YoY
|
Change QoQ
|
Total number of registered users
|
19.0
|
17.3
|
13.6
|
40%
|
10%
|
Georgia
|
3.3
|
3.2
|
3.0
|
10%
|
3%
|
Uzbekistan
|
15.7
|
14.1
|
10.6
|
48%
|
11%
|
Total monthly active customers
|
5.9
|
5.3
|
4.4
|
34%
|
11%
|
Georgia
|
1.6
|
1.6
|
1.5
|
7%
|
0%
|
Uzbekistan
|
4.3
|
3.7
|
2.9
|
48%
|
16%
|
Digital customers
In
thousands
|
Dec'23
|
Sep'23
|
Dec'22
|
Change YoY
|
Change QoQ
|
Digital DAU Georgia
|
421
|
384
|
384
|
10%
|
10%
|
Digital MAU Georgia
|
921
|
874
|
801
|
15%
|
5%
|
Digital DAU/MAU
Georgia
|
46%
|
44%
|
48%
|
-2 pp
|
2 pp
|
Digital DAU Group
|
1,718
|
1,436
|
1,389
|
24%
|
20%
|
Digital MAU Group
|
5,207
|
4,519
|
3,776
|
38%
|
15%
|
Digital DAU/MAU
Group
|
33%
|
32%
|
37%
|
-4
pp
|
1 pp
|
Uzbekistan - key highlights
In
thousands of GEL
|
Dec'23
|
Sep'23
|
Dec'22
|
Change YoY
|
Change QoQ
|
Gross loans
|
796,930
|
632,013
|
347,695
|
129.2%
|
26.1%
|
Customer accounts
|
581,483
|
515,586
|
330,976
|
75.7%
|
12.8%
|
|
4Q'23
|
3Q'23
|
Change QoQ
|
FY'23
|
Profit for the period (GEL,
thousands)
|
20,433
|
13,684
|
49.3%
|
59,329
|
ROE
|
29.7%
|
23.4%
|
6.3 pp
|
26.0%
|
TNET - digital lifestyle platform in
Georgia
In
millions
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
FY'23
|
FY'22
|
Change YoY
|
Gross merchandise value (GMV,
GEL)
|
36.4
|
44.8
|
31.8
|
14.5%
|
-18.8%
|
164.4
|
103.2
|
59.3%
|
Number of transactions
|
4.1
|
3.7
|
3.0
|
36.7%
|
10.8%
|
15.4
|
11.8
|
30.5%
|
Letter from the Chief Executive
Officer[1]
I am delighted to report that the
fourth quarter of 2023 marked another successful quarter for TBC,
rounding off what has been an excellent full-year performance. In
4Q, our profit of GEL 291 million was up 30% year-on-year, with
25.2% ROE (or down by 14% year-on-year adjusted for the one-off tax
charge in 4Q 2022). For FY 2023, our profit reached a record GEL
1,140 million, a 14% year-on-year increase (or 2% year-on-year on
an adjusted basis), with a corresponding ROE of
26.5%.
As a result, I am very pleased to
report that the Board has recommended a final dividend per share of
GEL 4.67, which brings the full year dividend per share to GEL
7.22, an increase of 32% year-on-year. This represents a dividend
payout ratio for 2023 of 35%, up from 30% in 2022. This dividend
reflects that as a business we strive to invest in new value
accretive growth opportunities whilst also returning capital to our
shareholders.
While the geopolitical backdrop
has remained difficult, the final quarter brought some very
positive news for Georgia, with the EU's decision in mid-December
to grant candidate status. Much work remains to be done, but this
represents a massive step for Georgia in its long-term aim of
closer integration with the EU. All Georgians can be rightly proud
to have achieved this recognition.
Economic growth remains robust
On the economic front, 2023 was a
year of normalisation in Georgia, with real GDP growth of 7.5% on
the back of still strong net FX inflows. The GEL has stabilised and
is now more aligned with its long-term trend, while inflation is
already undershooting the NBG's target, enabling a gradual easing
cycle towards a neutral monetary policy stance. Importantly,
substantial international reserves and fiscal buffers have been
accumulated, strengthening the economic foundations in case of any
unwanted shocks.
Economic activity was also strong
in Uzbekistan with 6.5% real GDP growth in the fourth quarter and
6.0% in 2023. Moreover, inflation has slowed to 8.8%, down from
12.3% a year ago. As inflation declines, this may prove supportive
for UZS exchange rate dynamics going forward.
Strong financial and operating performance continued in 4Q
2023
Turning to our operating
performance, the final quarter saw a continuation of the strong
revenue trends we have seen throughout the year. In
4Q 2023, our operating
income reached GEL 639 million, up 6% year-on-year, despite the
abnormally high FX revenues we received in 4Q 2022. Net interest
income rose by 24% year-on-year, supported by net interest margin
increasing by 40 bps year-on-year to 6.7% in 4Q 2023. Additionally,
net fee and commission income increased by 16% year-on-year. Our
costs rose by 27% year-on-year in 4Q 2023 primarily due to robust
growth of the business in the final quarter and performance-related
remuneration in recognition of the year's strong operating
performance.
Our customer base continues to
increase, with our digital MAU reaching 5.2 million at the Group
level by end 2023, up by 1.4 million customers in the past 12
months. Our DAU/MAU ratio stood at 33% as more of our customers
engage with us on a daily basis, while the Georgian business
digital DAU/MAU ratio stood at 46%.
Credit growth remains robust. Our
Group's gross loan book increased by 21% year-on-year as of 31
December 2023 on a constant currency basis, while our asset quality
remained healthy in 4Q 2023, translating into 0.8% cost of risk, up by 20bps
year-on-year, with the share of NPLs just 2.0%. On the funding
side, our Group's customer deposits increased by 13% year-on-year
on a constant currency basis.
Our financial strength in terms of
liquidity and capital positions remains very strong. As of 31
December 2023, our CET1, Tier 1 and Total Capital ratios for the
Georgian bank stood at 17.4%, 19.6% and 22.1%, respectively, and
remained comfortably above the minimum regulatory requirements by
3.1 pp, 3.0 pp and 2.3 pp, respectively. At the same time, we
continue to operate with a high liquidity buffer, with our net
stable funding (NSFR)2 and liquidity coverage
(LCR)2 ratios standing at 120% and 115%,
respectively.
Above 25% ROE in Georgia in 2023 combined with dynamic growth
in Uzbekistan
As for the core elements of our
business, Georgia continues to deliver excellent profitability,
with 24.7% ROE in 4Q 2023 and 25.5% for FY 2023. On the balance
sheet side, gross loans increased by 19% year-on-year on a constant
currency basis.
I am also pleased to announce that
our digital financial services businesses in Uzbekistan delivered
another quarter of dynamic growth and improving profitability.
Profit in 4Q 2023 amounted to GEL 20 million, while the profit for
the full year totalled GEL 59 million, or 5% of the Group's total
profit, with 26.0% ROE. As of the end of 2023, TBC UZ's retail loans amounted to GEL 797 million, up by 129% year-on-year, giving us an
unsecured consumer / micro loan market share[2] of 14%, and accounting
for 10% of the Group's total retail
loans. At the
same time, retail deposits reached GEL 581 million, up by 76%
year-on-year, accounting for 3.0% retail deposit market
share2.
In 2023, our digital lifestyle
ecosystem, TNET, continued to deliver good growth, with GEL 164
million gross merchandise value (GMV) for the full year, up by 59%
year-on-year, driven by strong progress in the lifestyle and
e-commerce verticals.
Finally, I would like to express
my gratitude to all our shareholders for their ongoing support as
we work towards achieving our strategic goals in the coming years.
We have much to be proud of for our achievements in 2023, but we
are already working hard to make 2024 an even more successful year
for TBC and its stakeholders.
Economic Overview
Georgia
Economic growth remains robust
Even as growth normalises,
Georgia's economic activity remained strong in 4Q 2023 with 6.8%
real GDP growth YoY bringing the full year 2023 growth to
7.5%.
External sector - normalisation of inflows
The negative impact of lower
international commodity prices on both exports and imports
noticeably affected external sector activity in 4Q and full year
2023. Specifically, exports and imports denominated in US dollars
decreased by -0.3% and -2.7% YoY in 4Q which caused their growth
for the full year to moderate to 9.1% and 14.0%, respectively.
Importantly, these commodity price dynamics particularly affected
domestic commodity exports, while re-exports performed 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 in 2022.
Given the high base effect caused
by elevated immigration in 2022, tourism inflows decreased by 12.6%
YoY in 4Q 2023 as migrants are gradually being counted as residents
by the NBG and hence being excluded from the tourism sector, while
growth for the full year was 17.3%. At the same time, the share of
conventional tourism in total inflows has increased recently as
spending excluding visitors from Russia, Belarus and Ukraine
increased by 38.2% YoY. Therefore, while the migration peak has
likely passed, conventional tourism inflows have at least had a
balancing impact. Also, despite decreasing notably in 4Q,
remittances also maintained a positive momentum throughout the year
after adjustment for Russia, increasing by 27.9%[3] YoY. A high base effect
combined with a significant decline in debt instruments and lower
reinvestments drove a 22.3% annual reduction in FDIs to Georgia in
9M 2023. Neverthless, taking the record high level in 2022 into
account, foreign direct investments in 2023 also appear
solid.
Fiscal consolidation under
way
It is important to highlight that
the strong recent economic growth is not a result of fiscal
stimulus. In fact, fiscal consolidation is under way. After hitting
9.2% of GDP in 2020 and a lower, but still large, level of 6.0% in
2021, the budget deficit[4] stood at 3.0% in
2022 and 2.8% in 2023.
Credit growth has accelerated
As of December 2023, bank credit
increased by 17.0% YoY, against 14.8% growth at the end of 3Q 2023
and 12.1% in December 2022, at constant exchange rates[5]. At the same time, as inflation remained stably
low, the YoY growth in real credit increased from 14.1% in
September to 16.5% in December 2023.
Low inflation enables monetary policy
easing
As a result of a broadly stable
GEL and sustained disinflationary pass-through from international
markets, CPI inflation stabilised well
below the NBG target of 3%, standing at 0.4% YoY in
December. Domestic and service inflation
measures also normalised around the target. Due to low inflation,
the NBG delivered the year's fourth rate cut of 50 basis points in
December, reducing the monetary policy rate (MPR) to 9.5% (and it
has since been cut by a further 50 bps to 9.0% in January
2024).
Despite low inflation, a reduced
MPR and seasonal depreciation expectations, improved net inflows
alongside NBG interventions helped the GEL to remain stable
relative to the USD throughout the fourth quarter, after some
volatility during the previous quarters, driven by the
normalisation of foreign currency inflows. Throughout the year, NBG
purchased USD 1,449 million and sold USD 169 million. The USD/GEL
stood at 2.69 at the end of December, almost unchanged from 2.68
USD in September 2023 and 2.7 USD at the end of December
2022.
Uzbekistan
Uzbekistan also demonstrated
robust economic activity with 6.5%[6]
growth in the fourth quarter and 6.0% for the full year 2023.
External trade was strong as exports of goods increased by 28.7%
and imports by 33.3% YoY in 4Q, and by 25.4% and 26.3%6
for the full year 2023, respectively. Retail loan growth was 47.2%
YoY in 2023, with mortgage credit
expanding by 25.2% and non-mortgage by
66.0%[7]. Annual inflation decreased
slightly from 9.2% in September to 8.8% in December, with a more
pronounced deceleration evident when compared to 12.3% in December
20227. The CBU kept its monetary policy rate unchanged
at 14.0% in the fourth quarter, delivering only one, 100 basis
point rate cut throughout 2023 in March. The UZS stood at 12,339
relative to the USD at the end of December 20237,
depreciating by 10% compared to December 2022, while the REER (real
effective exchange rate) remained broadly stable.
Economic outlook remains supportive
After two successive years of
double-digit growth in Georgia, economic activity moderated
somewhat but remained strong in 2023 at 7.5%. Further
normalisation is expected with Georgia's real GDP increasing by
5.6% in 2024 and 5.4% in 2025, according to TBC Capital
projections, while the baseline for Uzbekistan stands at around
5.5% for the next couple of years.
More
information on the Georgian economy and financial sector can be
found at www.tbccapital.ge.
Unaudited Consolidated Financial Results
Overview for 4Q 2023
This statement provides a summary of the business and
financial trends for 4Q 2023 for TBC Bank Group plc and its
subsidiaries. The financial information and trends are
unaudited.
Total assets and total liabilities for 31-Dec-2022 were
restated due to replacement of IFRS 4 with IFRS 17. For more
details, please refer to appendix 8.
Please note that there might be slight differences in
previous periods' figures due to rounding.
Net Interest Income
In 4Q 2023, net interest income
amounted to GEL 441.7 million, up by 23.6% and 3.2% on a YoY and
QoQ basis, respectively.
The YoY rise in interest income of
GEL 165.4 million, or 25.7%, was mostly attributable to an increase
in interest income from loans related to a rise in the respective
yield by 0.6 pp, as well as an increase in the loan portfolio of
GEL 3,868.7 million, or 21.3%.
The QoQ increase in interest
income of GEL 56.8 million, or 7.5%, was mainly related to an
increase in interest income from loans on the back of growth in the
loan portfolio of GEL 1,708.5 million, or 8.4%, as well as slight
growth in loan yields by 0.1 pp.
Interest expense increased by GEL
81.2 million, or 28.2%, on a YoY basis, mainly related to an
increase in the deposit portfolio of GEL 2,339.0 million, or 13.0%,
and a 0.8 pp growth in deposit costs.
On a QoQ basis, interest expense
increased by GEL 43.0 million, or 13.2%, primarily driven by an
increase in the deposit portfolio of GEL 1,653.1 million, or 8.8%,
and a 0.2 pp growth in deposit rates.
In 4Q 2023, our NIM stood at 6.7%,
up by 0.4 pp and down by 0.2 pp on a YoY and QoQ basis,
respectively.
In
thousands of GEL
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Interest income
|
810,428
|
753,658
|
644,981
|
25.7%
|
7.5%
|
Interest expense*
|
(368,693)
|
(325,724)
|
(287,535)
|
28.2%
|
13.2%
|
Net
interest income
|
441,735
|
427,934
|
357,446
|
23.6%
|
3.2%
|
|
|
|
|
|
|
NIM
|
6.7%
|
6.9%
|
6.3%
|
0.4 pp
|
-0.2 pp
|
* Interest expense includes net interest gains from currency
swaps
Non-Interest Income
In 4Q 2023, our net fee and
commission income increased by 15.5% YoY and increased by 5.7% on a
QoQ basis. The
YoY increase was mainly related to increased payments transactions.
In 4Q 2023, our Uzbek business contributed 19% to the Group's net
fee & commission income.
In 4Q 2023, net gains from
currency operations were down by 50.8% on
a YoY basis, due to abnormally high FX revenues in 4Q 2022, while
they increased by 1.9% on a QoQ basis.
In
thousands of GEL
Non-interest income
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Net fee and commission
income
|
110,099
|
104,152
|
95,332
|
15.5%
|
5.7%
|
Net gains from currency derivatives,
foreign currency operations and translation
|
68,228
|
66,968
|
138,777
|
-50.8%
|
1.9%
|
Net insurance income
|
9,090
|
9,798
|
8,218
|
10.6%
|
-7.2%
|
Other operating income
|
10,124
|
6,367
|
4,459
|
NMF
|
59.0%
|
Total non-interest income
|
197,541
|
187,285
|
246,786
|
-20.0%
|
5.5%
|
Credit Loss Allowance
Credit loss allowance for loans in
4Q 2023 amounted to GEL 40.6 million, while cost of risk stood at
0.8%. The increase in credit loss allowance for loans was mainly
driven by strong loan book growth as well as normalisation of
CoR.
In
thousands of GEL
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Credit loss allowance for loans to
customers
|
(40,640)
|
(42,595)
|
(27,002)
|
50.5%
|
-4.6%
|
Credit loss allowance for other
transactions
|
(6,839)
|
(3,564)
|
(6,052)
|
13.0%
|
91.9%
|
Total credit loss allowance
|
(47,479)
|
(46,159)
|
(33,054)
|
43.6%
|
2.9%
|
Operating income after expected credit losses and
non-financial asset impairment losses
|
591,797
|
569,060
|
571,178
|
3.6%
|
4.0%
|
|
|
|
|
|
|
Cost of risk
|
0.8%
|
0.9%
|
0.6%
|
0.2 pp
|
-0.1 pp
|
Operating Expenses
In 4Q 2023, our operating expenses
rose by 26.9% and 16.7% on a YoY and QoQ basis,
respectively. The YoY increase was mainly
driven by overall business growth, while the QoQ increase was
related to the seasonally high costs in the fourth quarter of
2023.
In
thousands of GEL
Operating expenses
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Staff costs
|
(139,766)
|
(121,056)
|
(103,764)
|
34.7%
|
15.5%
|
Allowance of provision for
liabilities and charges
|
-
|
(34)
|
(140)
|
NMF
|
NMF
|
Depreciation and
amortisation
|
(28,741)
|
(29,286)
|
(27,181)
|
5.7%
|
-1.9%
|
Administrative and other operating
expenses
|
(85,993)
|
(67,711)
|
(69,410)
|
23.9%
|
27.0%
|
Total operating expenses
|
(254,500)
|
(218,087)
|
(200,495)
|
26.9%
|
16.7%
|
|
|
|
|
|
|
Cost to income
|
39.8%
|
35.4%
|
33.2%
|
6.6 pp
|
4.4 pp
|
Georgian financial services' cost to
income
|
35.4%
|
31.5%
|
29.7%
|
5.7 pp
|
3.9 pp
|
For the definition of the Georgian financial services, please
refer to appendix 4.
Profit
Our profit increased by 30.2% and
decreased by 3.0% on a YoY and QoQ basis, respectively, and
amounted to GEL 291.4 million. During the quarter, our Uzbek
operations contributed GEL 20.4 million or 7% of the Group's
profit.
Income tax expense decreased on a
YoY basis, driven by the one-off tax charge in 4Q 2022, due to
changes in the Georgian taxation model.
As a result, in 4Q 2023 our ROE
stood at 25.2%, while our ROA reached 3.7%.
In thousands of GEL
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Profit before tax
|
337,297
|
350,973
|
370,683
|
-9.0%
|
-3.9%
|
Income tax expense
|
(45,856)
|
(50,485)
|
(146,909)
|
-68.8%
|
-9.2%
|
Profit for the period
|
291,441
|
300,488
|
223,774
|
30.2%
|
-3.0%
|
|
|
|
|
|
|
ROE
|
25.2%
|
27.6%
|
22.3%
|
2.9 pp
|
-2.4 pp
|
Georgian financial services' ROE
|
24.7%
|
26.4%
|
21.0%
|
3.7 pp
|
-1.7 pp
|
ROA
|
3.7%
|
4.1%
|
3.1%
|
0.6 pp
|
-0.4 pp
|
Georgian financial services' ROA
|
3.8%
|
4.2%
|
3.3%
|
0.5 pp
|
-0.4 pp
|
Funding and Liquidity
As of 31 December 2023, the total
liquidity coverage ratio (LCR), as defined by the NBG, was 115.3%,
above the 100% limit, while the LCR in GEL
and foreign currency (FC) stood at 109.8% and 120.1%, 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
119.9%, compared to the regulatory limit of 100%.
|
Dec'23
|
Sep'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
|
119.9%
|
124.1%
|
-4.2 pp
|
|
|
|
|
Net loans to deposits + IFI
funding
|
96.1%
|
96.9%
|
-0.8 pp
|
Leverage (Times)
|
6.8x
|
6.7x
|
0.1x
|
|
|
|
|
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
|
115.3%
|
114.1%
|
1.2 pp
|
LCR in GEL, as defined by the
NBG
|
109.8%
|
105.7%
|
4.1 pp
|
LCR in FC, as defined by the
NBG
|
120.1%
|
121.0%
|
-0.9 pp
|
Regulatory Capital for Georgian Bank
As of 31 December 2023, our
capital ratios remained at a strong level and as a result, our
CET1, Tier 1 and Total Capital ratios stood at 17.4%, 19.6% and
22.1%, respectively, above the minimum regulatory requirements by
3.1 pp, 3.0 pp and 2.3 pp, accordingly.
The QoQ decreases in all CET1,
Tier 1 and Total capital adequacy ratios were largely driven by
high portfolio growth and annual operational RWA growth.
In
thousands of GEL
|
Dec'23
|
Sep'23
|
Change QoQ
|
CET 1 Capital
|
4,235,033
|
3,966,901
|
6.8%
|
Tier 1 Capital
|
4,772,913
|
4,502,561
|
6.0%
|
Total Capital
|
5,374,301
|
5,058,696
|
6.2%
|
Total Risk-weighted
Assets
|
24,336,690
|
22,668,335
|
7.4%
|
|
|
|
|
Minimum CET 1 ratio
|
14.3%
|
14.4%
|
-0.1 pp
|
CET 1 Capital adequacy
ratio
|
17.4%
|
17.5%
|
-0.1 pp
|
|
|
|
|
Minimum Tier 1 ratio
|
16.6%
|
16.8%
|
-0.2 pp
|
Tier 1 Capital adequacy
ratio
|
19.6%
|
19.9%
|
-0.3 pp
|
|
|
|
|
Minimum total capital adequacy ratio
|
19.8%
|
19.9%
|
-0.1 pp
|
Total Capital adequacy
ratio
|
22.1%
|
22.3%
|
-0.2 pp
|
Loan Portfolio
As of 31 December 2023, the gross
loan portfolio reached GEL 22,073.7 million, up by 8.4% QoQ, or by
7.4% on a constant currency basis.
In 4Q 2023, our Georgian financial
services loan portfolio increased by 7.8% on a QoQ basis and
reached GEL 21,257.7 million, with 6.8% growth on a constant
currency basis. Over the same period, our Uzbek portfolio increased
by 26.1% and stood at GEL 796.9 million, which translated into
growth of 27.3% on a constant currency basis.
In
thousands of GEL
Gross loans and advances to customers
|
Dec'23
|
Sep'23
|
Change QoQ
|
Georgian financial services (Georgia FS)*
|
21,257,692
|
19,715,795
|
7.8%
|
Retail Georgia
|
7,513,229
|
7,131,727
|
5.3%
|
GEL
|
5,000,607
|
4,716,516
|
6.0%
|
FC
|
2,512,622
|
2,415,211
|
4.0%
|
CIB Georgia
|
8,283,723
|
7,385,494
|
12.2%
|
GEL
|
3,061,811
|
2,598,832
|
17.8%
|
FC
|
5,221,912
|
4,786,662
|
9.1%
|
MSME Georgia
|
5,480,822
|
5,203,680
|
5.3%
|
GEL
|
2,868,942
|
2,747,953
|
4.4%
|
FC
|
2,611,880
|
2,455,727
|
6.4%
|
Uzbekistan
|
796,930
|
632,013
|
26.1%
|
UZS
|
796,930
|
632,013
|
26.1%
|
Total gross loans and advances to
customers**
|
22,073,679
|
20,365,135
|
8.4%
|
* Georgian FS includes sub-segment eliminations
** Total gross
loans and advances to
customers include Azerbaijan loan
portfolio
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Loan yields
|
12.7%
|
12.6%
|
12.1%
|
0.6 pp
|
0.1 pp
|
GEL
|
14.6%
|
14.8%
|
15.1%
|
-0.5 pp
|
-0.2 pp
|
FC
|
8.7%
|
8.6%
|
7.7%
|
1.0 pp
|
0.1 pp
|
UZS
|
41.7%
|
41.9%
|
42.6%
|
-0.9 pp
|
-0.2 pp
|
Georgia FS
|
11.7%
|
11.7%
|
11.6%
|
0.1 pp
|
0.0 pp
|
GEL
|
14.6%
|
14.8%
|
15.1%
|
-0.5 pp
|
-0.2 pp
|
FC
|
8.7%
|
8.5%
|
7.7%
|
1.0 pp
|
0.2 pp
|
Uzbekistan
|
41.7%
|
41.9%
|
42.6%
|
-0.9 pp
|
-0.2 pp
|
UZS
|
41.7%
|
41.9%
|
42.6%
|
-0.9 pp
|
-0.2 pp
|
Total loan yields*
|
12.7%
|
12.6%
|
12.1%
|
0.6 pp
|
0.1 pp
|
*
Total loans yields include Azerbaijan
Loan Portfolio Quality
Our PAR 90 to gross loans ratios
improved for both our Georgian and Uzbekistan in 4Q 2023. The
decrease in PAR ratio was mainly driven by an overall improvement
in portfolio quality. Over the same period, our NPL ratio remained
stable.
PAR
90
|
Dec'23
|
Sep'23
|
Change QoQ
|
Georgia FS*
|
1.1%
|
1.2%
|
-0.1 pp
|
Retail Georgia
|
0.8%
|
0.9%
|
-0.1 pp
|
CIB Georgia
|
0.7%
|
0.5%
|
0.2 pp
|
MSME Georgia
|
2.2%
|
2.5%
|
-0.3 pp
|
Uzbekistan
|
1.9%
|
2.1%
|
-0.2 pp
|
Total PAR 90**
|
1.1%
|
1.2%
|
-0.1 pp
|
* Georgian FS includes sub-segment
eliminations
** Total PAR 90 includes
Azerbaijan
In
thousands of GEL Non-performing Loans
(NPL)
|
Dec'23
|
Sep'23
|
Change QoQ
|
Georgia FS*
|
425,061
|
399,230
|
6.5%
|
Retail Georgia
|
127,102
|
129,162
|
-1.6%
|
CIB Georgia
|
114,130
|
94,940
|
20.2%
|
MSME Georgia
|
183,829
|
175,128
|
5.0%
|
Uzbekistan
|
15,006
|
13,584
|
10.5%
|
Total non-performing loans**
|
440,750
|
413,520
|
6.6%
|
* Georgian FS includes sub-segment
eliminations
** Total non-performing
loans include Azerbaijan NPLs
NPL
to gross loans
|
Dec'23
|
Sep'23
|
Change QoQ
|
Georgia FS*
|
2.0%
|
2.0%
|
0.0 pp
|
Retail Georgia
|
1.7%
|
1.8%
|
-0.1 pp
|
CIB Georgia
|
1.4%
|
1.3%
|
0.1 pp
|
MSME Georgia
|
3.4%
|
3.4%
|
0.0 pp
|
Uzbekistan
|
1.9%
|
2.1%
|
-0.2 pp
|
Total NPL to gross loans**
|
2.0%
|
2.0%
|
0.0 pp
|
* Georgian FS includes sub-segment
eliminations
** Total NPL to gross loans
include Azerbaijan NPLs
|
Dec'23
|
Sep'23
|
NPL
Coverage
|
Provision
Coverage
|
Total
Coverage***
|
Provision
Coverage
|
Total
Coverage***
|
Georgia FS*
|
73.4%
|
142.2%
|
82.5%
|
148.6%
|
Retail Georgia
|
120.4%
|
179.5%
|
136.0%
|
189.2%
|
CIB Georgia
|
46.9%
|
110.6%
|
52.0%
|
111.4%
|
MSME Georgia
|
57.5%
|
136.0%
|
59.5%
|
138.8%
|
Uzbekistan
|
222.3%
|
222.3%
|
199.9%
|
199.9%
|
Total NPL coverage**
|
79.8%
|
146.3%
|
87.6%
|
151.6%
|
* Georgian FS includes
sub-segment eliminations
** 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 4Q 2023 our cost of risk (CoR) remained within the expected
range and stood at 0.8%.
In 4Q 2023, due to strong asset
quality dynamics, the CoR for our Georgia FS remained broadly
stable on both a YoY and QoQ basis and amounted to 0.6%. Over the
same period, CoR for our Uzbek business decreased by 2.7 pp and 2.4
pp on YoY and QoQ basis, respectively and amounted to 4.9%. The
decrease in Uzbekistan was mainly driven by improved portfolio quality.
Cost of risk (CoR)
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Georgia FS*
|
0.6%
|
0.7%
|
0.5%
|
0.1 pp
|
-0.1 pp
|
Retail Georgia
|
0.1%
|
1.1%
|
0.5%
|
-0.4 pp
|
-1.0 pp
|
CIB Georgia
|
0.3%
|
0.0%
|
0.1%
|
0.2 pp
|
0.3 pp
|
MSME Georgia
|
1.8%
|
0.9%
|
0.9%
|
0.9 pp
|
0.9 pp
|
Uzbekistan
|
4.9%
|
7.3%
|
7.6%
|
-2.7 pp
|
-2.4 pp
|
Total cost of risk**
|
0.8%
|
0.9%
|
0.6%
|
0.2 pp
|
-0.1 pp
|
* Georgian FS includes sub-segment
eliminations
** Total cost of risk
includes Azerbaijan CoR
Deposit Portfolio
As of the end of December 2023,
the total deposit portfolio amounted to GEL 20,375.5 million, up by
8.8% QoQ or by 8.2% on a constant currency basis.
In 4Q 2023, the Georgian financial
services deposit portfolio increased by 8.7% on a QoQ basis and
reached GEL 19,900.3 million, up by 8.1% on a constant currency
basis. Over the same period, our Uzbek deposit portfolio increased
by 12.8% and stood at GEL 581.5 million, which translated into
growth of 13.9% on a constant currency basis.
In
thousands of GEL
Customer accounts
|
Dec'23
|
Sep'23
|
Change QoQ
|
Georgia FS*
|
19,900,342
|
18,300,484
|
8.7%
|
Retail Georgia
|
7,469,587
|
7,097,710
|
5.2%
|
GEL
|
2,532,317
|
2,224,730
|
13.8%
|
FC
|
4,937,270
|
4,872,980
|
1.3%
|
CIB Georgia
|
10,200,321
|
8,973,868
|
13.7%
|
GEL
|
6,105,284
|
5,015,787
|
21.7%
|
FC
|
4,095,037
|
3,958,081
|
3.5%
|
MSME Georgia
|
1,900,459
|
1,733,864
|
9.6%
|
GEL
|
1,052,675
|
943,887
|
11.5%
|
FC
|
847,784
|
789,977
|
7.3%
|
MOF
|
515,079
|
611,017
|
-15.7%
|
GEL
|
515,079
|
611,017
|
-15.7%
|
Uzbekistan
|
581,483
|
515,586
|
12.8%
|
FC
|
1,864
|
1,640
|
13.7%
|
UZS
|
579,619
|
513,946
|
12.8%
|
Total customer accounts**
|
20,375,498
|
18,722,415
|
8.8%
|
* Georgian FS includes
sub-segment eliminations
** Total customer accounts
are adjusted for eliminations
|
4Q'23
|
3Q'23
|
4Q'22
|
Change YoY
|
Change QoQ
|
Deposit rates
|
5.1%
|
4.9%
|
4.3%
|
0.8 pp
|
0.2 pp
|
GEL
|
8.1%
|
8.2%
|
7.9%
|
0.2 pp
|
-0.1 pp
|
FC
|
1.1%
|
0.9%
|
0.8%
|
0.3 pp
|
0.2 pp
|
UZS
|
25.0%
|
24.4%
|
26.9%
|
-1.9 pp
|
0.6 pp
|
Georgian financial services
|
4.5%
|
4.4%
|
3.9%
|
0.6 pp
|
0.1 pp
|
GEL
|
8.1%
|
8.2%
|
7.9%
|
0.2 pp
|
-0.1 pp
|
FC
|
1.1%
|
0.9%
|
0.8%
|
0.3 pp
|
0.2 pp
|
Uzbek business
|
24.9%
|
24.4%
|
26.9%
|
-2.0 pp
|
0.5 pp
|
FC
|
3.8%
|
4.1%
|
0.0%
|
3.8 pp
|
-0.3 pp
|
UZS
|
25.0%
|
24.4%
|
26.9%
|
-1.9 pp
|
0.6 pp
|
Total deposit rates*
|
5.1%
|
4.9%
|
4.3%
|
0.8 pp
|
0.2 pp
|
* Total deposits rates include MOF deposits
Preliminary Unaudited Consolidated Financial
Results Overview for FY 2023
This statement provides a summary of the business and
financial trends for FY 2023
for TBC Bank
Group plc and its subsidiaries. The financial information and
trends are unaudited.
Total assets and total liabilities for 31-Dec-2022 were
restated due to replacement of IFRS 4 with IFRS 17. For more
details, please refer to appendix 8.
Please also note that there might be slight differences in
previous periods' figures due to rounding.
Net Interest Income
In FY 2023, net interest income
amounted to GEL 1,635.8 million, up by 26.8% on a YoY
basis.
The YoY rise in interest income by
GEL 617.2 million, or 26.5%, was mostly attributable to an increase
in interest income from loans related to a GEL 3,868.7 million, or
21.3%, increase in the respective portfolio, as well as a 1.0 pp
rise in the respective yield.
YoY interest expense increased by
GEL 271.5 million, or 26.1%, mainly related to an increase in the
deposit portfolio of GEL 2,339.0 million, or 13.0%, and a 1.1 pp
growth in deposit cost.
In FY 2023, our NIM stood at 6.7%,
up by 0.7 pp on a YoY basis.
In
thousands of GEL
|
FY'23
|
FY'22
|
Change YoY
|
Interest income
|
2,948,056
|
2,330,838
|
26.5%
|
Interest expense*
|
(1,312,258)
|
(1,040,786)
|
26.1%
|
Net
interest income
|
1,635,798
|
1,290,052
|
26.8%
|
|
|
|
|
NIM
|
6.7%
|
6.0%
|
0.7 pp
|
* Interest expense includes net interest gains from currency
swaps
Non-Interest Income
Total non-interest income amounted
to GEL 737.7 million in FY 2023, decreasing by 5.5% YoY, primarily
due to a normalisation of FX revenues, offset by significant growth
in fee and commission income.
In 2023 our net fee and commission
income increased by 27.8% on a YoY basis, related to increased
payments transactions in both Georgia and Uzbekistan. Our Uzbek
business contributed 18% of the Group's net fee and commission
income.
In thousands of GEL
Non-interest income
|
FY'23
|
FY'22
|
Change YoY
|
Net fee and commission
income
|
412,325
|
322,666
|
27.8%
|
Net gains from currency derivatives,
foreign currency operations and translation
|
256,924
|
398,866
|
-35.6%
|
Net insurance income
|
31,290
|
29,203
|
7.1%
|
Other operating income
|
37,163
|
29,977
|
24.0%
|
Total non-interest income
|
737,702
|
780,712
|
-5.5%
|
Credit Loss Allowance
Credit loss allowance for loans in
FY 2023 amounted to GEL 162.7 million, which translated into 0.8%
cost of risk. The increase in credit loss allowance for loans was
mainly driven by strong loan book growth as well as normalisation
of CoR.
In
thousands of GEL
|
FY'23
|
FY'22
|
Change YoY
|
Credit loss allowance for loans to
customers
|
(162,659)
|
(118,943)
|
36.8%
|
Credit loss allowance for other
transactions
|
(18,081)
|
(13,957)
|
29.5%
|
Total credit loss allowance
|
(180,740)
|
(132,900)
|
36.0%
|
Operating income after expected credit and non-financial
asset impairment losses
|
2,192,760
|
1,937,864
|
13.2%
|
|
|
|
|
Cost of risk
|
0.8%
|
0.7%
|
0.1 pp
|
Operating Expenses
In FY 2023, our operating expenses
rose by 24.2% on a YoY basis. This growth
was mainly driven by overall business growth, both in Georgia and
Uzbekistan.
In
thousands of GEL
Operating expenses
|
FY'23
|
FY'22
|
Change YoY
|
Staff costs
|
(472,972)
|
(374,816)
|
26.2%
|
Allowance of provision for
liabilities and charges
|
(155)
|
(2,200)
|
-93.0%
|
Depreciation and
amortisation
|
(115,975)
|
(101,197)
|
14.6%
|
Administrative and other operating
expenses
|
(269,825)
|
(213,107)
|
26.6%
|
Total operating expenses
|
(858,927)
|
(691,320)
|
24.2%
|
|
|
|
|
Cost to income
|
36.2%
|
33.4%
|
2.8 pp
|
Georgian financial services' cost to income
|
31.9%
|
28.9%
|
3.0 pp
|
Profit
In FY 2023, we delivered strong
profitability and generated GEL 1,140.0 million in profit,
up by 13.6% YoY, driven
by strong core revenue growth and asset quality trends. Our Uzbek
operations contributed GEL 59.3 million or 5% of the Group's 2023
profit.
The
YoY decrease in income tax expense is mainly driven by
a one-off tax charge in
2022, due to changes in the Georgian taxation model.
As a result, our ROE and ROA for
full year 2023 were 26.5% and 3.9%, respectively.
In
thousands of GEL
|
FY'23
|
FY'22
|
Change YoY
|
Profit before tax
|
1,333,833
|
1,246,544
|
7.0%
|
Income tax expense
|
(193,858)
|
(243,205)
|
-20.3%
|
Profit for the period
|
1,139,975
|
1,003,339
|
13.6%
|
|
|
|
|
ROE
|
26.5%
|
27.0%
|
-0.5 pp
|
Georgian financial services' ROE
|
25.5%
|
26.0%
|
-0.5 pp
|
ROA
|
3.9%
|
3.8%
|
0.1 pp
|
Georgian financial services' ROA
|
4.0%
|
4.1%
|
-0.1 pp
|
Loan Portfolio
As of 31 December 2023, the gross
loan portfolio reached GEL 22,073.7 million, up by 21.3% YoY or
21.2% on a constant currency basis.
By the end of December 2023, the
Georgian financial services' loan portfolio increased by 19.2% on a
YoY basis and reached GEL 21,257.7 million, with 18.6% growth on a
constant currency basis. Over the same period, our Uzbek loan
portfolio more than doubled, reaching GEL 796.9 million.
In
thousands of GEL
Gross loans and advances to customers
|
Dec'23
|
Dec'22
|
Change YoY
|
Georgian financial services (Georgia FS)*
|
21,257,692
|
17,839,697
|
19.2%
|
Retail Georgia
|
7,513,229
|
6,753,242
|
11.3%
|
GEL
|
5,000,607
|
4,374,224
|
14.3%
|
FC
|
2,512,622
|
2,379,018
|
5.6%
|
CIB Georgia
|
8,283,723
|
6,301,961
|
31.4%
|
GEL
|
3,061,811
|
2,455,229
|
24.7%
|
FC
|
5,221,912
|
3,846,732
|
35.7%
|
MSME Georgia
|
5,480,822
|
4,803,986
|
14.1%
|
GEL
|
2,868,942
|
2,627,760
|
9.2%
|
FC
|
2,611,880
|
2,176,226
|
20.0%
|
Uzbekistan
|
796,930
|
347,695
|
NMF
|
UZS
|
796,930
|
347,695
|
NMF
|
Total gross loans and advances to
customers**
|
22,073,679
|
18,204,971
|
21.3%
|
* Georgian FS includes sub-segment eliminations
** Total gross
loans and advances to
customers include Azerbaijan loan
portfolio
|
FY'23
|
FY'22
|
Change YoY
|
Loan yields
|
12.6%
|
11.6%
|
1.0 pp
|
GEL
|
14.9%
|
15.5%
|
-0.6 pp
|
FC
|
8.5%
|
7.0%
|
1.5 pp
|
UZS
|
42.3%
|
42.7%
|
-0.4 pp
|
Georgia FS
|
11.8%
|
11.2%
|
0.6 pp
|
GEL
|
14.9%
|
15.5%
|
-0.6 pp
|
FC
|
8.5%
|
7.0%
|
1.5 pp
|
Uzbekistan
|
42.3%
|
42.7%
|
-0.4 pp
|
UZS
|
42.3%
|
42.7%
|
-0.4 pp
|
Total loan yields*
|
12.6%
|
11.6%
|
1.0 pp
|
*
Total loans yields include Azerbaijan
Loan Portfolio Quality
As of 31 December 2023, our asset
quality metrics remained strong with NPL to gross loans at 2.0%,
driven by strong portfolio performance in both Georgia and
Uzbekistan. Over the same period our PAR 90 remained broadly stable
for both Georgia and Uzbekistan.
Par
90
|
Dec'23
|
Dec'22
|
Change YoY
|
Georgia FS*
|
1.1%
|
1.2%
|
-0.1 pp
|
Retail Georgia
|
0.8%
|
1.2%
|
-0.4 pp
|
CIB Georgia
|
0.7%
|
0.4%
|
0.3 pp
|
MSME Georgia
|
2.2%
|
2.2%
|
0.0 pp
|
Uzbekistan
|
1.9%
|
2.0%
|
-0.1 pp
|
Total PAR 90**
|
1.1%
|
1.2%
|
-0.1 pp
|
* Georgian FS includes sub-segment
eliminations
** Total PAR 90 includes
Azerbaijan
In
thousands of GEL Non-performing Loans
(NPL)
|
Dec'23
|
Dec'22
|
Change YoY
|
Georgia FS*
|
425,061
|
388,585
|
9.4%
|
Retail Georgia
|
127,102
|
146,167
|
-13.0%
|
CIB Georgia
|
114,130
|
80,307
|
42.1%
|
MSME Georgia
|
183,829
|
162,111
|
13.4%
|
Uzbekistan
|
15,006
|
6,794
|
120.9%
|
Total non-performing loans**
|
440,750
|
397,444
|
10.9%
|
* Georgian FS includes sub-segment
eliminations
** Total non-performing
loans include Azerbaijan NPLs
NPL
to gross loans
|
Dec'23
|
Dec'22
|
Change YoY
|
Georgia FS*
|
2.0%
|
2.2%
|
-0.2 pp
|
Retail Georgia
|
1.7%
|
2.2%
|
-0.5 pp
|
CIB Georgia
|
1.4%
|
1.3%
|
0.1 pp
|
MSME Georgia
|
3.4%
|
3.4%
|
0.0 pp
|
Uzbekistan
|
1.9%
|
2.0%
|
-0.1 pp
|
Total NPL to gross loans**
|
2.0%
|
2.2%
|
-0.2 pp
|
* Georgian FS includes sub-segment
eliminations
** Total NPL to gross loans
include Azerbaijan NPLs
|
Dec'23
|
Dec'22
|
NPL
Coverage
|
Provision Coverage
|
Total
Coverage***
|
Provision Coverage
|
Total
Coverage***
|
Georgia FS*
|
73.4%
|
142.2%
|
91.0%
|
153.2%
|
Retail Georgia
|
120.4%
|
179.5%
|
146.6%
|
190.3%
|
CIB Georgia
|
46.9%
|
110.6%
|
57.9%
|
119.9%
|
MSME Georgia
|
57.5%
|
136.0%
|
57.3%
|
136.2%
|
Uzbekistan
|
222.3%
|
222.3%
|
184.0%
|
184.0%
|
Total NPL coverage**
|
79.8%
|
146.3%
|
93.7%
|
155.6%
|
* Georgian FS includes
sub-segment eliminations
** Total NPL coverage
include Azerbaijan loans coverage
*** Total NPL coverage
ratio includes provision and collateral coverage
Cost of Risk
In FY 2023, our cost of risk (CoR)
was within the expected range at 0.8%.
The CoR for our Georgian financial
services remained stable YoY and stood at 0.7%, while CoR for our
Uzbek business amounted to 6.0%, down by 0.8 pp on YoY basis,
driven by improved portfolio quality.
Cost of risk (CoR)
|
FY'23
|
FY'22
|
Change YoY
|
Georgia FS*
|
0.7%
|
0.6%
|
0.1 pp
|
Retail Georgia
|
0.8%
|
1.4%
|
-0.6 pp
|
CIB Georgia
|
0.1%
|
0.0%
|
0.1 pp
|
MSME Georgia
|
1.4%
|
0.5%
|
0.9 pp
|
Uzbekistan
|
6.0%
|
6.8%
|
-0.8 pp
|
Total cost of risk**
|
0.8%
|
0.7%
|
0.1 pp
|
* Georgian FS includes sub-segment
eliminations
** Total cost of risk
includes Azerbaijan CoR
Deposit Portfolio
The total deposit portfolio
amounted to GEL 20,375.5 million as of end 2023, increasing by
13.0% YoY or 13.2% on a constant currency basis.
As of 31 December 2023, the
Georgian financial services' portfolio increased by 11.8% on a YoY
basis to GEL 19,900.3 million, with 11.7% growth on a constant
currency basis. Over the same period, our Uzbek portfolio almost
doubled and stood at GEL 581.5 million.
In
thousands of GEL
Customer accounts
|
Dec'23
|
Dec'22
|
Change YoY
|
Georgia FS*
|
19,900,342
|
17,799,899
|
11.8%
|
Retail Georgia
|
7,469,587
|
6,536,649
|
14.3%
|
GEL
|
2,532,317
|
1,905,377
|
32.9%
|
FC
|
4,937,270
|
4,631,272
|
6.6%
|
CIB Georgia
|
10,200,321
|
9,249,232
|
10.3%
|
GEL
|
6,105,284
|
5,136,442
|
18.9%
|
FC
|
4,095,037
|
4,112,790
|
-0.4%
|
MSME Georgia
|
1,900,459
|
1,761,342
|
7.9%
|
GEL
|
1,052,675
|
908,024
|
15.9%
|
FC
|
847,784
|
853,318
|
-0.6%
|
MOF
|
515,079
|
412,442
|
24.9%
|
GEL
|
515,079
|
412,442
|
24.9%
|
Uzbekistan
|
581,483
|
330,976
|
75.7%
|
FC
|
1,864
|
1,160
|
60.7%
|
UZS
|
579,619
|
329,816
|
75.7%
|
Total customer accounts**
|
20,375,498
|
18,036,533
|
13.0%
|
* Georgian FS includes
sub-segment eliminations
** Total customer accounts
are adjusted for eliminations
|
FY'23
|
FY'22
|
Change YoY
|
Deposit rates
|
5.0%
|
3.9%
|
1.1 pp
|
GEL
|
8.3%
|
7.7%
|
0.6 pp
|
FC
|
0.9%
|
0.9%
|
0.0 pp
|
UZS
|
24.9%
|
24.1%
|
0.8 pp
|
Georgian financial services
|
4.5%
|
3.6%
|
0.9 pp
|
GEL
|
8.4%
|
7.7%
|
0.7 pp
|
FC
|
0.9%
|
0.9%
|
0.0 pp
|
Uzbek business
|
24.9%
|
24.1%
|
0.8 pp
|
FC
|
4.2%
|
0.0%
|
4.2 pp
|
UZS
|
24.9%
|
24.1%
|
0.8 pp
|
Total deposit rates*
|
5.0%
|
3.9%
|
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 39.3% of customer loans and 40.1% of
customer deposits as of 31 December 2023, according to data
published by the National Bank of Georgia on the analytical tool
Tableau.
2)
Consolidated Financial Statements and Key Ratios 4Q
2023
Consolidated Statement of Financial
Position
In
thousands of GEL
|
Dec'23
|
Sep'23
|
ASSETS
|
|
|
Cash and cash equivalents
|
3,764,087
|
2,648,469
|
Due from other banks
|
47,941
|
38,954
|
Mandatory cash balances with
National Bank of Georgia and the Central Bank of
Uzbekistan
|
1,577,074
|
1,904,010
|
Loans and advances to
customers
|
21,722,107
|
20,003,021
|
Investment securities measured at
fair value through other comprehensive income
|
3,475,461
|
3,071,046
|
Bonds carried at amortised
cost
|
73,963
|
65,289
|
Finance lease receivables
|
400,411
|
364,077
|
Investment properties
|
15,235
|
20,629
|
Investments in associates
|
4,204
|
3,940
|
Current income tax
prepayment
|
435
|
16,062
|
Deferred income tax asset
|
7,400
|
10,721
|
Other financial assets
|
280,268
|
259,771
|
Other assets
|
431,477
|
449,322
|
Premises and equipment
|
513,340
|
481,867
|
Right of use assets
|
120,077
|
116,262
|
Intangible assets
|
471,383
|
442,989
|
Goodwill
|
59,964
|
59,964
|
TOTAL ASSETS
|
32,964,827
|
29,956,393
|
LIABILITIES
|
|
|
Due to credit
institutions
|
4,395,182
|
3,330,925
|
Customer accounts
|
20,375,498
|
18,722,415
|
Other financial
liabilities
|
358,522
|
515,000
|
Current income tax
liability
|
67,945
|
17,958
|
Deferred income tax
liability
|
50,957
|
109,854
|
Debt Securities in issue
|
1,426,174
|
1,432,393
|
Provision for liabilities and
charges
|
21,060
|
20,384
|
Other liabilities
|
123,218
|
93,184
|
Lease liabilities
|
91,879
|
88,893
|
Subordinated debt
|
868,730
|
788,116
|
Redemption liability
|
365,480
|
363,871
|
TOTAL LIABILITIES
|
28,144,645
|
25,482,993
|
EQUITY
|
|
|
Share capital
|
1,690
|
1,682
|
Shares held by trust
|
(75,609)
|
(75,470)
|
Share premium
|
295,605
|
272,930
|
Retained earnings
|
4,433,496
|
4,145,795
|
Merger reserve
|
402,862
|
402,862
|
Share based payment
reserve
|
23,677
|
12,672
|
Fair value reserve for investment
securities measured at fair value through other comprehensive
income
|
12,345
|
10,855
|
Cumulative currency translation
reserve
|
(44,824)
|
(42,759)
|
Other reserve
|
(365,513)
|
(363,869)
|
Equity attributable to owners of the parent
|
4,683,729
|
4,364,698
|
Non-controlling interest
|
136,453
|
108,702
|
TOTAL EQUITY
|
4,820,182
|
4,473,400
|
TOTAL LIABILITIES AND EQUITY
|
32,964,827
|
29,956,393
|
Consolidated Income Statement and Other Comprehensive
Income
In
thousands of GEL
|
4Q'23
|
3Q'23
|
4Q'22
|
Interest income
|
810,428
|
753,658
|
644,981
|
Interest expense
|
(368,693)
|
(325,724)
|
(287,535)
|
Net
interest income
|
441,735
|
427,934
|
357,446
|
Fee and commission income
|
192,341
|
170,479
|
166,042
|
Fee and commission
expense
|
(82,242)
|
(66,327)
|
(70,710)
|
Net
fee and commission income
|
110,099
|
104,152
|
95,332
|
Insurance contract
revenue
|
33,665
|
35,056
|
29,852
|
Reinsurance service
result
|
1,161
|
(3,245)
|
(2,564)
|
Insurance service claims and
expenses incurred
|
(25,736)
|
(22,013)
|
(19,070)
|
Net
insurance income
|
9,090
|
9,798
|
8,218
|
Net gains from currency derivatives,
foreign currency operations and translation
|
68,228
|
66,968
|
138,777
|
Net gains from disposal of
investment securities measured at fair value through other
comprehensive income
|
8
|
1,553
|
926
|
Other operating income
|
10,372
|
4,443
|
3,388
|
Share of profit of
associates
|
(256)
|
371
|
145
|
Other operating non-interest income
|
78,352
|
73,335
|
143,236
|
Credit loss allowance for loans to
customers
|
(40,640)
|
(42,595)
|
(27,002)
|
Credit loss recovery/(allowance) for
finance lease receivable
|
1,129
|
(3,035)
|
558
|
Credit loss (allowance)/recovery for
performance guarantees and credit related commitments
|
(612)
|
644
|
(1,217)
|
Credit loss allowance for other
financial assets
|
(4,890)
|
(963)
|
(4,416)
|
Credit loss allowance for financial
assets measured at fair value through other comprehensive
income
|
(407)
|
(497)
|
(521)
|
Net (impairment)/recovery of
non-financial assets
|
(2,059)
|
287
|
(456)
|
Operating income after expected credit and non-financial
asset impairment losses
|
591,797
|
569,060
|
571,178
|
Staff costs
|
(139,766)
|
(121,056)
|
(103,764)
|
Depreciation and
amortisation
|
(28,741)
|
(29,286)
|
(27,181)
|
Allowance of provision for
liabilities and charges
|
-
|
(34)
|
(140)
|
Administrative and other operating
expenses
|
(85,993)
|
(67,711)
|
(69,410)
|
Operating expenses
|
(254,500)
|
(218,087)
|
(200,495)
|
Profit before tax
|
337,297
|
350,973
|
370,683
|
Income tax expense
|
(45,856)
|
(50,485)
|
(146,909)
|
Profit for the period
|
291,441
|
300,488
|
223,774
|
Other comprehensive income, net of tax:
|
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
Movement in fair value reserve, net
of tax
|
1,491
|
(5,607)
|
12,147
|
Exchange differences on translation
to presentation currency
|
(2,065)
|
(5,955)
|
(17,919)
|
Net other movements
|
(33)
|
-
|
-
|
Other comprehensive expense for the period, net of
tax
|
(607)
|
(11,562)
|
(5,772)
|
Total comprehensive income for the period
|
290,834
|
288,926
|
218,002
|
Profit attributable to:
|
|
|
|
- Shareholders of
TBCG
|
287,699
|
299,022
|
217,756
|
- Non-controlling
interest
|
3,742
|
1,466
|
6,018
|
Profit for the period
|
291,441
|
300,488
|
223,774
|
Total comprehensive income is attributable
to:
|
|
|
|
- Shareholders of
TBCG
|
287,092
|
287,460
|
211,984
|
- Non-controlling
interest
|
3,742
|
1,466
|
6,018
|
Total comprehensive income for
the period
|
290,834
|
288,926
|
218,002
|
* Interest expense includes net interest gains from currency
swaps
Key Ratios 4Q'23
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)
|
4Q'23
|
3Q'23
|
4Q'22
|
|
|
|
|
Profitability ratios:
|
|
|
|
ROE1
|
25.2%
|
27.6%
|
22.3%
|
ROA2
|
3.7%
|
4.1%
|
3.1%
|
Cost to
income3
|
39.8%
|
35.4%
|
33.2%
|
NIM4
|
6.7%
|
6.9%
|
6.3%
|
Loan yields5
|
12.7%
|
12.6%
|
12.1%
|
Deposit rates6
|
5.1%
|
4.9%
|
4.3%
|
Cost of
funding7
|
5.7%
|
5.4%
|
5.0%
|
|
|
|
|
Asset quality & portfolio
concentration:
|
|
|
|
Cost of risk9
|
0.8%
|
0.9%
|
0.6%
|
PAR 90 to Gross
Loans9
|
1.1%
|
1.2%
|
1.2%
|
NPLs to Gross
Loans10
|
2.0%
|
2.0%
|
2.2%
|
NPL provision
coverage11
|
79.8%
|
87.6%
|
93.7%
|
Total NPL
coverage12
|
146.3%
|
151.6%
|
155.6%
|
Credit loss level to Gross
Loans13
|
1.6%
|
1.8%
|
2.0%
|
Related Party Loans to Gross
Loans14
|
0.1%
|
0.1%
|
0.1%
|
Top 10 Borrowers to Total
Portfolio15
|
6.1%
|
6.0%
|
5.3%
|
Top 20 Borrowers to Total
Portfolio16
|
9.1%
|
8.9%
|
8.3%
|
|
|
|
|
Capital & liquidity positions:
|
|
|
|
Net Loans to Deposits plus IFI
Funding17
|
96.1%
|
96.9%
|
88.5%
|
Net Stable Funding
Ratio18
|
119.9%
|
124.1%
|
n/a
|
Liquidity Coverage
Ratio19
|
115.3%
|
114.1%
|
n/a
|
Leverage20
|
6.8x
|
6.7x
|
7.3x
|
CET 1 CAR (Basel
III)21
|
17.4%
|
17.5%
|
n/a
|
Tier 1 CAR (Basel
III)22
|
19.6%
|
19.9%
|
n/a
|
Total 1 CAR (Basel
III)23
|
22.1%
|
22.3%
|
n/a
|
For the ratio definitions and
exchange rates, please refer to appendix 12.
3)
Consolidated Financial Statements and Key Ratios FY
2023
Consolidated Statement of Financial
Position
In
thousands of GEL
|
Dec'23
|
Dec'22
|
ASSETS
|
|
|
Cash and cash equivalents
|
3,764,087
|
3,860,813
|
Due from other banks
|
47,941
|
41,854
|
Mandatory cash balances with
National Bank of Georgia and the Central Bank of
Uzbekistan
|
1,577,074
|
2,049,985
|
Loans and advances to
customers
|
21,722,107
|
17,832,606
|
Investment securities measured at
fair value through other comprehensive income
|
3,475,461
|
2,885,088
|
Bonds carried at amortised
cost
|
73,963
|
37,392
|
Repurchase receivables
|
-
|
267,495
|
Finance lease receivables
|
400,411
|
312,334
|
Investment properties
|
15,235
|
22,154
|
Investments in associates
|
4,204
|
3,721
|
Current income tax
prepayment
|
435
|
430
|
Deferred income tax asset
|
7,400
|
16,705
|
Other financial assets
|
280,268
|
235,963
|
Other assets
|
431,477
|
422,928
|
Premises and equipment
|
513,340
|
442,886
|
Right of use assets
|
120,077
|
112,625
|
Intangible assets
|
471,383
|
383,198
|
Goodwill
|
59,964
|
59,964
|
TOTAL ASSETS
|
32,964,827
|
28,988,141
|
LIABILITIES
|
|
|
Due to credit
institutions
|
4,395,182
|
3,940,660
|
Customer accounts
|
20,375,498
|
18,036,533
|
Other financial
liabilities
|
358,522
|
294,546
|
Current income tax
liability
|
67,945
|
1,647
|
Deferred income tax
liability
|
50,957
|
112,877
|
Debt Securities in issue
|
1,426,174
|
1,361,573
|
Provision for liabilities and
charges
|
21,060
|
19,908
|
Other liabilities
|
123,218
|
101,736
|
Lease liabilities
|
91,879
|
84,770
|
Subordinated debt
|
868,730
|
590,148
|
Redemption liability
|
365,480
|
477,329
|
TOTAL LIABILITIES
|
28,144,645
|
25,021,727
|
EQUITY
|
|
|
Share capital
|
1,690
|
1,681
|
Shares held by trust
|
(75,609)
|
(7,900)
|
Treasury shares
|
-
|
(25,541)
|
Share premium
|
295,605
|
269,938
|
Retained earnings
|
4,433,496
|
3,745,191
|
Merger reserve
|
402,862
|
402,862
|
Share based payment
reserve
|
23,677
|
1,090
|
Fair value reserve for investment
securities measured at fair value through other comprehensive
income
|
12,345
|
5,467
|
Cumulative currency translation
reserve
|
(44,824)
|
(35,858)
|
Other reserves
|
(365,513)
|
(477,329)
|
Equity attributable to owners of the parent
|
4,683,729
|
3,879,601
|
Non-controlling interest
|
136,453
|
86,813
|
TOTAL EQUITY
|
4,820,182
|
3,966,414
|
TOTAL LIABILITIES AND EQUITY
|
32,964,827
|
28,988,141
|
Consolidated Income Statement and Other Comprehensive
Income
In
thousands of GEL
|
FY'23
|
FY'22
|
Interest income
|
2,948,056
|
2,330,838
|
Interest expense*
|
(1,312,258)
|
(1,040,786)
|
Net
interest income
|
1,635,798
|
1,290,052
|
Fee and commission income
|
676,350
|
543,099
|
Fee and commission
expense
|
(264,025)
|
(220,433)
|
Net
fee and commission income
|
412,325
|
322,666
|
Insurance contract
revenue
|
129,798
|
111,597
|
Reinsurance service
result
|
(6,470)
|
(7,783)
|
Insurance service claims and
expenses incurred
|
(92,038)
|
(74,611)
|
Net
insurance income
|
31,290
|
29,203
|
Net gains from currency derivatives,
foreign currency operations and translation
|
256,924
|
398,866
|
Net gains from disposal of
investment securities measured at fair value through other
comprehensive income
|
5,880
|
5,811
|
Other operating income
|
30,626
|
23,814
|
Share of profit of
associates
|
657
|
352
|
Other operating non-interest income
|
294,087
|
428,843
|
Credit loss allowance for loans to
customers
|
(162,659)
|
(118,943)
|
Credit loss allowance for finance
lease receivable
|
(4,038)
|
(720)
|
Credit loss allowance for
performance guarantees and credit related commitments
|
(904)
|
(2,721)
|
Credit loss allowance for other
financial assets
|
(9,943)
|
(10,155)
|
Credit loss (allowance)/recovery for
financial assets measured at fair value through other comprehensive
income
|
(1,066)
|
862
|
Net impairment of non-financial
assets
|
(2,130)
|
(1,223)
|
Operating income after expected credit and non-financial
asset impairment losses
|
2,192,760
|
1,937,864
|
Staff costs
|
(472,972)
|
(374,816)
|
Depreciation and
amortisation
|
(115,975)
|
(101,197)
|
Allowance of provision for
liabilities and charges
|
(155)
|
(2,200)
|
Administrative and other operating
expenses
|
(269,825)
|
(213,107)
|
Operating expenses
|
(858,927)
|
(691,320)
|
Profit before tax
|
1,333,833
|
1,246,544
|
Income tax expense
|
(193,858)
|
(243,205)
|
Profit for the period
|
1,139,975
|
1,003,339
|
Other comprehensive income, net of tax:
|
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
Movement in fair value reserve, net
of tax
|
6,878
|
16,329
|
Exchange differences on translation
to presentation currency
|
(8,966)
|
(26,355)
|
Net other movements
|
(33)
|
-
|
Other comprehensive expense for the period, net of
tax
|
(2,121)
|
(10,026)
|
Total comprehensive income for the period
|
1,137,854
|
993,313
|
Profit attributable to:
|
|
|
- Shareholders of
TBCG
|
1,124,180
|
995,206
|
- Non-controlling
interest
|
15,795
|
8,133
|
Profit for the period
|
1,139,975
|
1,003,339
|
Total comprehensive income is attributable
to:
|
|
|
- Shareholders of
TBCG
|
1,122,059
|
985,180
|
- Non-controlling
interest
|
15,795
|
8,133
|
Total comprehensive income for
the period
|
1,137,854
|
993,313
|
* Interest expense includes net interest gains from currency
swaps
Key Ratios FY'23
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)
|
FY'23
|
FY'22
|
|
|
|
Profitability ratios:
|
|
|
ROE1
|
26.5%
|
27.0%
|
ROA2
|
3.9%
|
3.8%
|
Cost to
income3
|
36.2%
|
33.4%
|
NIM4
|
6.7%
|
6.0%
|
Loan yields5
|
12.6%
|
11.6%
|
Deposit rates6
|
5.0%
|
3.9%
|
Cost of
funding7
|
5.6%
|
4.9%
|
|
|
|
Asset quality & portfolio
concentration:
|
|
|
Cost of risk9
|
0.8%
|
0.7%
|
PAR 90 to Gross
Loans9
|
1.1%
|
1.2%
|
NPLs to Gross
Loans10
|
2.0%
|
2.2%
|
NPL provision
coverage11
|
79.8%
|
93.7%
|
Total NPL
coverage12
|
146.3%
|
155.6%
|
Credit loss level to Gross
Loans13
|
1.6%
|
2.0%
|
Related Party Loans to Gross
Loans14
|
0.1%
|
0.1%
|
Top 10 Borrowers to Total
Portfolio15
|
6.1%
|
5.3%
|
Top 20 Borrowers to Total
Portfolio16
|
9.1%
|
8.3%
|
|
|
|
Capital & liquidity positions:
|
|
|
Net Loans to Deposits plus IFI
Funding17
|
96.1%
|
88.5%
|
Net Stable Funding
Ratio18
|
119.9%
|
n/a
|
Liquidity Coverage
Ratio19
|
115.3%
|
n/a
|
Leverage20
|
6.8x
|
7.3x
|
CET 1 CAR (Basel
III)21
|
17.4%
|
n/a
|
Tier 1 CAR (Basel
III)22
|
19.6%
|
n/a
|
Total 1 CAR (Basel
III)23
|
22.1%
|
n/a
|
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 subsidiary. The Georgia financial service
segment consists 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
Dec'23
In thousands of GEL
|
Georgia
FS
|
Uzbekistan*
|
Payme
|
TBC UZ
|
Other**
|
Group
|
ASSETS
|
|
|
|
|
|
|
Cash and cash equivalents
|
3,687,618
|
81,171
|
1,544
|
79,735
|
(4,702)
|
3,764,087
|
Due from other banks
|
47,867
|
1,344
|
6,929
|
1,344
|
(1,270)
|
47,941
|
Mandatory cash balances with
National Bank of Georgia and the Central Bank of
Uzbekistan
|
1,572,506
|
4,568
|
-
|
4,568
|
-
|
1,577,074
|
Loans and advances to
customers
|
20,945,584
|
763,575
|
-
|
763,575
|
12,948
|
21,722,107
|
Investment securities measured at
fair value through other comprehensive income
|
3,475,461
|
-
|
-
|
-
|
-
|
3,475,461
|
Bonds carried at amortised
cost
|
12,271
|
61,692
|
-
|
61,692
|
-
|
73,963
|
Finance lease receivables
|
363,303
|
29,616
|
-
|
29,616
|
7,492
|
400,411
|
Investment properties
|
15,235
|
-
|
-
|
-
|
-
|
15,235
|
Investments in associates
|
18,817
|
-
|
-
|
-
|
(14,613)
|
4,204
|
Current income tax
prepayment
|
16
|
-
|
-
|
-
|
419
|
435
|
Deferred income tax asset
|
-
|
7,005
|
-
|
7,005
|
395
|
7,400
|
Other financial assets
|
286,431
|
11,930
|
5,411
|
7,573
|
(18,093)
|
280,268
|
Other assets
|
411,050
|
16,454
|
5,127
|
11,327
|
3,973
|
431,477
|
Premises and equipment
|
491,943
|
15,741
|
5,860
|
9,881
|
5,656
|
513,340
|
Right of use assets
|
112,613
|
5,576
|
1,315
|
4,261
|
1,888
|
120,077
|
Intangible assets
|
359,476
|
31,335
|
5,648
|
25,687
|
80,572
|
471,383
|
Goodwill
|
28,197
|
1,912
|
-
|
1,912
|
29,855
|
59,964
|
TOTAL ASSETS
|
31,828,388
|
1,031,919
|
31,834
|
1,008,176
|
104,520
|
32,964,827
|
LIABILITIES
|
|
|
|
|
|
|
Due to credit
institutions
|
4,337,726
|
105,293
|
-
|
105,293
|
(47,837)
|
4,395,182
|
Customer accounts
|
19,900,341
|
581,483
|
-
|
588,520
|
(106,326)
|
20,375,498
|
Other financial
liabilities
|
328,285
|
21,617
|
1,824
|
19,793
|
8,620
|
358,522
|
Current income tax
liability
|
67,800
|
-
|
-
|
-
|
145
|
67,945
|
Deferred income tax
liability
|
50,932
|
-
|
-
|
-
|
25
|
50,957
|
Debt Securities in issue
|
1,257,347
|
-
|
-
|
-
|
168,827
|
1,426,174
|
Provision for liabilities and
charges
|
21,060
|
-
|
-
|
-
|
-
|
21,060
|
Other liabilities
|
101,907
|
8,726
|
2,190
|
7,590
|
12,585
|
123,218
|
Lease liabilities
|
83,891
|
6,491
|
1,491
|
5,000
|
1,497
|
91,879
|
Subordinated debt
|
868,730
|
-
|
-
|
-
|
-
|
868,730
|
Redemption liability
|
-
|
-
|
-
|
-
|
365,480
|
365,480
|
TOTAL LIABILITIES
|
27,018,019
|
723,610
|
5,505
|
726,196
|
403,016
|
28,144,645
|
EQUITY
|
|
|
|
|
|
|
Share capital
|
29,148
|
330,622
|
1,254
|
329,368
|
(358,080)
|
1,690
|
Shares held by trust
|
-
|
-
|
-
|
-
|
(75,609)
|
(75,609)
|
Share premium
|
521,190
|
35,723
|
-
|
35,723
|
(261,308)
|
295,605
|
Retained earnings
|
4,324,043
|
(22,146)
|
30,077
|
(52,223)
|
131,599
|
4,433,496
|
Merger reserve
|
-
|
67
|
67
|
-
|
402,795
|
402,862
|
Share based payment
reserve
|
(76,554)
|
-
|
-
|
-
|
100,231
|
23,677
|
Fair value reserve for investment
securities measured at fair value through other comprehensive
income
|
12,345
|
-
|
-
|
-
|
-
|
12,345
|
Cumulative currency translation
reserve
|
-
|
(35,924)
|
(5,069)
|
(30,855)
|
(8,900)
|
(44,824)
|
Other reserves
|
-
|
(33)
|
-
|
(33)
|
(365,480)
|
(365,513)
|
Equity attributable to owners of
the parent
|
4,810,172
|
308,309
|
26,329
|
281,980
|
(434,752)
|
4,683,729
|
Non-controlling interest
|
197
|
-
|
-
|
-
|
136,256
|
136,453
|
TOTAL EQUITY
|
4,810,369
|
308,309
|
26,329
|
281,980
|
(298,496)
|
4,820,182
|
TOTAL LIABILITIES AND
EQUITY
|
31,828,388
|
1,031,919
|
31,834
|
1,008,176
|
104,520
|
32,964,827
|
*
Includes intra-group eliminations
**
Includes Azerbaijan, TNET, other subsidiaries and intra-group
eliminations
Consolidated Income Statement and Other Comprehensive Income
4Q'23
In
thousands of GEL
|
Georgia FS
|
Uzbekistan**
|
Payme
|
TBC UZ
|
Other
***
|
Group
|
Interest income
|
726,956
|
81,460
|
200
|
81,454
|
2,012
|
810,428
|
Interest expense*
|
(331,535)
|
(37,905)
|
(87)
|
(38,012)
|
747
|
(368,693)
|
Net
interest income
|
395,421
|
43,555
|
113
|
43,442
|
2,759
|
441,735
|
Fee and commission income
|
160,918
|
30,768
|
21,300
|
21,276
|
655
|
192,341
|
Fee and commission
expense
|
(72,030)
|
(10,100)
|
(2,051)
|
(19,779)
|
(112)
|
(82,242)
|
Net
fee and commission income
|
88,888
|
20,668
|
19,249
|
1,497
|
543
|
110,099
|
Net insurance income
|
8,858
|
-
|
-
|
-
|
232
|
9,090
|
Net gains/(losses) from currency
derivatives, foreign currency operations and translation
|
71,186
|
(330)
|
(9)
|
(321)
|
(2,628)
|
68,228
|
Net gains from disposal of
investment securities measured at fair value through other
comprehensive income
|
8
|
-
|
-
|
-
|
-
|
8
|
Other operating income
|
8,398
|
1,160
|
1,095
|
65
|
814
|
10,372
|
Share of loss of
associates
|
(256)
|
-
|
-
|
-
|
-
|
(256)
|
Other operating non-interest income
|
88,194
|
830
|
1,086
|
(256)
|
(1,582)
|
87,442
|
Credit loss (allowance)/recovery for
loans to customers
|
(32,107)
|
(8,703)
|
-
|
(8,703)
|
170
|
(40,640)
|
Credit loss recovery/(allowance) for
finance lease receivable
|
1,551
|
(546)
|
-
|
(546)
|
124
|
1,129
|
Credit loss allowance for
performance guarantees and credit related commitments
|
(611)
|
-
|
-
|
-
|
(1)
|
(612)
|
Credit loss (allowance)/recovery for
other financial assets
|
(4,694)
|
(196)
|
(115)
|
(81)
|
-
|
(4,890)
|
Credit loss allowance for financial
assets measured at fair value through other comprehensive
income
|
(339)
|
(68)
|
-
|
(68)
|
-
|
(407)
|
Net (recovery)/allowance of
non-financial assets
|
(2,360)
|
-
|
-
|
-
|
301
|
(2,059)
|
Operating income after expected credit and non-financial
asset impairment losses
|
533,943
|
55,540
|
20,333
|
35,285
|
2,314
|
591,797
|
Staff costs
|
(115,887)
|
(11,215)
|
(2,645)
|
(8,570)
|
(12,664)
|
(139,766)
|
Depreciation and
amortisation
|
(27,109)
|
(2,489)
|
(379)
|
(2,110)
|
857
|
(28,741)
|
Administrative and other operating
expenses
|
(59,497)
|
(18,476)
|
(5,256)
|
(13,298)
|
(8,020)
|
(85,993)
|
Operating expenses
|
(202,493)
|
(32,180)
|
(8,280)
|
(23,978)
|
(19,827)
|
(254,500)
|
Profit before tax
|
331,450
|
23,360
|
12,053
|
11,307
|
(17,513)
|
337,297
|
Income tax expense
|
(42,835)
|
(2,927)
|
(30)
|
(2,897)
|
(94)
|
(45,856)
|
Profit for the period
|
288,615
|
20,433
|
12,023
|
8,410
|
(17,607)
|
291,441
|
Profit attributable to:
|
|
|
|
|
|
|
- Shareholders of
TBCG
|
288,614
|
20,433
|
12,023
|
8,410
|
(21,348)
|
287,699
|
- Non-controlling
interest
|
1
|
-
|
-
|
-
|
3,741
|
3,742
|
Profit for the period
|
288,615
|
20,433
|
12,023
|
8,410
|
(17,607)
|
291,441
|
* 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
FY'23
In
thousands of GEL
|
Georgia FS
|
Uzbekistan**
|
Payme
|
TBC UZ
|
Other
***
|
Group
|
Interest income
|
2,687,756
|
253,264
|
288
|
253,258
|
7,036
|
2,948,056
|
Interest expense*
|
(1,189,267)
|
(120,650)
|
(337)
|
(120,596)
|
(2,341)
|
(1,312,258)
|
Net
interest income
|
1,498,489
|
132,614
|
(49)
|
132,662
|
4,695
|
1,635,798
|
Fee and commission income
|
571,311
|
101,241
|
76,631
|
60,596
|
3,798
|
676,350
|
Fee and commission
expense
|
(236,621)
|
(27,112)
|
(6,958)
|
(56,043)
|
(292)
|
(264,025)
|
Net
fee and commission income
|
334,690
|
74,129
|
69,673
|
4,553
|
3,506
|
412,325
|
Net insurance income
|
31,557
|
-
|
-
|
-
|
(267)
|
31,290
|
Net gains from currency derivatives,
foreign currency operations and translation
|
273,443
|
(191)
|
-
|
(191)
|
(16,328)
|
256,924
|
Net gains from disposal of
investment securities measured at fair value through other
comprehensive income
|
5,880
|
-
|
-
|
-
|
-
|
5,880
|
Other operating income
|
22,804
|
1,228
|
1,096
|
132
|
6,594
|
30,626
|
Share of profit of
associates
|
657
|
-
|
-
|
-
|
-
|
657
|
Other operating non-interest income
|
334,341
|
1,037
|
1,096
|
(59)
|
(10,001)
|
325,377
|
Credit loss (allowance)/recovery for
loans to customers
|
(131,532)
|
(32,279)
|
-
|
(32,279)
|
1,152
|
(162,659)
|
Credit loss (allowance)/recovery for
finance lease receivable
|
(2,167)
|
(2,042)
|
-
|
(2,042)
|
171
|
(4,038)
|
Credit loss allowance for
performance guarantees and credit related commitments
|
(903)
|
-
|
-
|
-
|
(1)
|
(904)
|
Credit loss allowance for other
financial assets
|
(9,390)
|
(553)
|
(381)
|
(172)
|
-
|
(9,943)
|
Credit loss allowance for financial
assets measured at fair value through other comprehensive
income
|
(998)
|
(68)
|
-
|
(68)
|
-
|
(1,066)
|
Net impairment of non-financial
assets
|
(2,140)
|
-
|
-
|
-
|
10
|
(2,130)
|
Operating income after expected credit and non-financial
asset impairment losses
|
2,020,390
|
172,838
|
70,339
|
102,595
|
(468)
|
2,192,760
|
Staff costs
|
(395,003)
|
(39,562)
|
(9,918)
|
(29,644)
|
(38,407)
|
(472,972)
|
Depreciation and
amortisation
|
(102,479)
|
(8,974)
|
(1,161)
|
(7,813)
|
(4,522)
|
(115,975)
|
Allowance of provision for
liabilities and charges
|
(155)
|
-
|
-
|
-
|
-
|
(155)
|
Administrative and other operating
expenses
|
(194,844)
|
(59,230)
|
(14,377)
|
(44,949)
|
(15,751)
|
(269,825)
|
Operating expenses
|
(692,481)
|
(107,766)
|
(25,456)
|
(82,406)
|
(58,680)
|
(858,927)
|
Profit before tax
|
1,327,909
|
65,072
|
44,883
|
20,189
|
(59,148)
|
1,333,833
|
Income tax expense
|
(187,968)
|
(5,743)
|
(43)
|
(5,700)
|
(147)
|
(193,858)
|
Profit for the period
|
1,139,941
|
59,329
|
44,840
|
14,489
|
(59,295)
|
1,139,975
|
Profit attributable to:
|
|
|
|
|
|
|
- Shareholders of
TBCG
|
1,139,908
|
59,329
|
44,840
|
14,489
|
(75,057)
|
1,124,180
|
- Non-controlling
interest
|
33
|
-
|
-
|
-
|
15,762
|
15,795
|
Profit for the period
|
1,139,941
|
59,329
|
44,840
|
14,489
|
(59,295)
|
1,139,975
|
* 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
4Q'23
|
Georgia FS
|
Uzbekistan
|
Group
|
Profitability ratios:
|
|
|
|
ROE1
|
24.7%
|
29.7%
|
25.2%
|
ROA2
|
3.8%
|
8.7%
|
3.7%
|
Cost to
income3
|
35.4%
|
49.5%
|
39.8%
|
NIM4
|
6.2%
|
22.6%
|
6.7%
|
Loan yields5
|
11.7%
|
41.7%
|
12.7%
|
Deposit rates6
|
4.5%
|
24.9%
|
5.1%
|
Cost of
funding7
|
5.3%
|
24.0%
|
5.7%
|
|
|
|
|
Asset quality & portfolio
concentration:
|
|
|
|
Cost of risk8
|
0.6%
|
4.9%
|
0.8%
|
PAR 90 to Gross
Loans9
|
1.1%
|
1.9%
|
1.1%
|
NPLs to Gross
Loans10
|
2.0%
|
1.9%
|
2.0%
|
NPL provision
coverage11
|
73.4%
|
222.3%
|
79.8%
|
Total NPL
coverage12
|
142.2%
|
222.3%
|
146.3%
|
FY'23
|
Georgia FS
|
Uzbekistan
|
Group
|
Profitability ratios:
|
|
|
|
ROE1
|
25.5%
|
26.0%
|
26.50%
|
ROA2
|
4.0%
|
7.9%
|
3.9%
|
Cost to
income3
|
31.9%
|
51.9%
|
36.2%
|
NIM4
|
6.3%
|
22.4%
|
6.7%
|
Loan yields5
|
11.8%
|
42.3%
|
12.6%
|
Deposit rates6
|
4.5%
|
24.9%
|
5.0%
|
Cost of
funding7
|
5.2%
|
24.2%
|
5.6%
|
|
|
|
|
Asset quality & portfolio
concentration:
|
|
|
|
Cost of risk8
|
0.7%
|
6.0%
|
0.8%
|
PAR 90 to Gross
Loans9
|
1.1%
|
1.9%
|
1.1%
|
NPLs to Gross
Loans10
|
2.0%
|
1.9%
|
2.0%
|
NPL provision
coverage11
|
73.4%
|
222.3%
|
79.8%
|
Total NPL
coverage12
|
142.2%
|
222.3%
|
146.3%
|
For the ratio definitions and
exchange rates, please refer to appendix 12.
6) Market
shares[8] in Georgia
Market shares
|
Dec'23
|
Sep'23
|
Dec'22
|
Change YoY
|
Change QoQ
|
Total loans
|
39.3%
|
39.1%
|
39.5%
|
-0.2 pp
|
0.2 pp
|
Individual loans
|
38.1%
|
38.0%
|
38.3%
|
-0.2 pp
|
0.1 pp
|
Legal entities loans
|
40.7%
|
40.5%
|
40.9%
|
-0.2 pp
|
0.2 pp
|
Total deposits
|
40.1%
|
37.5%
|
40.3%
|
-0.2 pp
|
2.6 pp
|
Individual deposits
|
36.0%
|
36.6%
|
38.1%
|
-2.1 pp
|
-0.6 pp
|
Legal entities deposits
|
44.9%
|
38.5%
|
42.9%
|
2.0
pp
|
6.4
pp
|
7) Subsidiaries of TBC
Bank Group PLC[9]
|
Ownership /
voting
|
Country
|
Year of
incorporation
|
Industry
|
|
|
Subsidiary
|
% as of
31-Dec 2023
|
|
|
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
|
Payment Processing
|
|
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
|
Ecosystem
|
|
Index
LLC
|
100.0%
|
Georgia
|
2009
|
Ecosystem
|
|
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
|
Customer experience servicing
|
|
Space JSC
|
100.0%
|
Georgia
|
2021
|
Software Services
|
|
Space International
JSC
|
100.0%
|
Georgia
|
2021
|
Digital banking platform
|
|
TBC
Group Support LLC
|
100.0%
|
Georgia
|
2020
|
Group risk and knowledge centre
|
|
Inspired LLC (Payme)*
|
100.0%
|
Uzbekistan
|
2011
|
Payment Processing
|
|
TBC
Bank JSC UZ
|
60.2%
|
Uzbekistan
|
2020
|
Banking
|
|
TBC Fin Service
LLC
|
100.0%
|
Uzbekistan
|
2019
|
Retail Leasing
|
|
TBC International Holdings
Limited**
|
100.0%
|
Georgia
|
2023
|
Financial services
|
|
Tpay
LLC
|
100.0%
|
Georgia
|
2023
|
Financial services
|
|
*
In May 2023 TBC Bank Group PLC finalized acquisition of remaining
49% interest in Inspired LLC
** TBC International Holdings Limited and Tpay LLC were
established in 2023.
8) Replacement
of IFRS 4 with IFRS 17
The adoption of IFRS 17 has
affected the financial reporting processes and procedures of the
Group, as applications of the core principles outlined above has
required additional information to be gathered and processed, as
well as additional judgements to be made by the management. To
ensure the smooth and timely adoption of IFRS 17, the Group
launched a separate implementation project. After the transition to
IFRS 17, the Group used a premium allocation approach for its
insurance subsidiary for the following insurance contracts: motor
insurance, border MTPL, property insurance, agro (crop) insurance,
health-related insurance liability and other insurance with product
classification of insurance contract and measurement model of
premium allocation approach.
The Group has applied this approach
retrospectively to all of its portfolios of insurance
contracts.
9) Legal and
regulatory matters
When determining the level of
provision to be set up with regards to such matters, or the amount
(not subject to provisioning) to be disclosed in the financial
statements, the management seeks both internal and external
professional advice. The management believes that the provision
recorded in these 4Q and full year 2023 results report is adequate
and the amount (not subject to provisioning) need not be disclosed
as it will not have a material adverse effect on the financial
condition or the results of future operations of the
Group.
10) Loan Book Breakdown by Stages
According IFRS 9
In
millions of GEL Total
loans*
|
Dec'23
|
Sep'23
|
Dec'22
|
Stage
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
1
|
20,337
|
105
|
18,674
|
98
|
16,395
|
107
|
2
|
1,320
|
88
|
1,305
|
102
|
1,413
|
99
|
3
|
417
|
159
|
386
|
162
|
397
|
166
|
Total
|
22,074
|
352
|
20,365
|
362
|
18,205
|
372
|
|
|
|
|
|
|
|
Georgia FS Retail
|
Dec'23
|
Sep'23
|
Dec'22
|
Stage
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
1
|
6,853
|
45
|
6,438
|
46
|
5,987
|
56
|
2
|
553
|
44
|
584
|
61
|
625
|
71
|
3
|
107
|
64
|
110
|
68
|
141
|
87
|
Total
|
7,513
|
153
|
7,132
|
175
|
6,753
|
214
|
|
|
|
|
|
|
|
Georgia FS CIB
|
Dec'23
|
Sep'23
|
Dec'22
|
Stage
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
1
|
7,760
|
19
|
6,960
|
18
|
5,761
|
19
|
2
|
410
|
2
|
330
|
1
|
458
|
1
|
3
|
114
|
33
|
95
|
31
|
83
|
26
|
Total
|
8,284
|
54
|
7,385
|
50
|
6,302
|
46
|
|
|
|
|
|
|
|
Georgia FS MSME
|
Dec'23
|
Sep'23
|
Dec'22
|
Stage
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
1
|
4,981
|
24
|
4,680
|
23
|
4,324
|
24
|
2
|
321
|
31
|
358
|
31
|
318
|
24
|
3
|
179
|
50
|
166
|
51
|
162
|
45
|
Total
|
5,481
|
105
|
5,204
|
105
|
4,804
|
93
|
|
|
|
|
|
|
|
Uzbekistan
|
Dec'23
|
Sep'23
|
Dec'22
|
Stage
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
Gross
loans
|
Loan loss
provisions
|
1
|
755
|
17
|
593
|
10
|
329
|
6
|
2
|
26
|
6
|
25
|
6
|
11
|
2
|
3
|
16
|
10
|
14
|
11
|
8
|
5
|
Total
|
797
|
33
|
632
|
27
|
348
|
13
|
*
Total loans include Azerbaijan loan portfolio and intra-group
eliminations
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.
|
Monthly active customers
|
For Georgian business, an individual
user who has at least one active product as of the reporting date
or performed at least one transaction during the past month. For
Uzbek business, an individual user who logged into the digital
application at least once during the month.
|
NBG
|
National Bank of Georgia.
|
12) Ratio Definitions and
Exchange Rates
Ratio definitions
1. Return on average total equity
(ROE) equals 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 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.
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.
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.
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.
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.
Exchange Rates
To calculate the QoQ growth of the
Balance Sheet items without the currency exchange rate effect, we
used the US$/GEL exchange rate of 2.6783 as of 30 September 2023.
To calculate the YoY growth without the currency exchange rate
effect, we used the US$/GEL exchange rate of 2.7020 as of 31
December 2022. As of 31 December 2023, the US$/GEL exchange rate
equalled 2.6894. For P&L items growth calculations without the
currency effect, we used the average US$/GEL exchange rate for the
following periods: 4Q 2023 of 2.6943, 3Q 2023 of 2.6215, 4Q 2022 of
2.7339, FY 2023 of 2.6280, FY 2022 of 2.9156.