TBC BANK GROUP PLC ("TBC Bank")
3Q AND 9M 2024 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 Russia-Ukraine war; 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 management report, 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.
3Q and 9M 2024 consolidated financial results conference call details
TBC Bank Group PLC ("TBC PLC") has published its unaudited consolidated financial results for the 3Q and 9M 2024 on Wednesday, 6 November 2024 at 7.00 AM GMT. 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=64f95a9a&confId=72527
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: ARomelashvili@tbcbank.com.ge Tel: +(995) 577 205 290 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
3Q and 9M 2024 unaudited consolidated financial results announcement
Interim management report
Letter from the Chief Executive Officer
Progress towards our mid-term strategy targets
Unaudited consolidated financial results overview for 3Q 2024
Unaudited consolidated financial results overview for 9M 2024
1) Financial disclosures by business lines
2) Glossary
3) Ratio definitions and exchange rates
3Q and 9M 2024 unaudited consolidated financial results
3Q 2024 profit of GEL 347 million, up by 16% YoY, with ROE at 26.6%.
9M 2024 profit of GEL 973 million, up by 15% YoY, with ROE at 26.2%.
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.
Financial highlights
Income statement
| In thousands of GEL | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| Net interest income | 492,561 | 458,111 | 427,934 | 15.1% | 7.5% | 1,393,516 | 1,194,063 | 16.7% |
| Net fee and commission income | 144,797 | 123,398 | 104,152 | 39.0% | 17.3% | 372,498 | 302,226 | 23.3% |
| Other non-interest income | 116,296 | 96,922 | 83,133 | 39.9% | 20.0% | 284,051 | 237,935 | 19.4% |
| Total operating income | 753,654 | 678,431 | 615,219 | 22.5% | 11.1% | 2,050,065 | 1,734,224 | 18.2% |
| Total credit loss allowance | (55,275) | (31,565) | (46,159) | 19.7% | 75.1% | (131,971) | (133,261) | -1.0% |
| Operating expenses | (280,208) | (256,577) | (218,087) | 28.5% | 9.2% | (766,456) | (604,427) | 26.8% |
| Profit before tax | 418,171 | 390,289 | 350,973 | 19.1% | 7.1% | 1,151,638 | 996,536 | 15.6% |
| Income tax expense | (70,908) | (60,991) | (50,485) | 40.5% | 16.3% | (178,606) | (148,002) | 20.7% |
| Profit for the period | 347,263 | 329,298 | 300,488 | 15.6% | 5.5% | 973,032 | 848,534 | 14.7% |
Balance sheet
| In thousands of GEL | Sep'24 | Jun'24 | Sep'23 | Change YoY | Change QoQ |
| Total assets | 37,972,326 | 35,780,415 | 29,956,393 | 26.8% | 6.1% |
| Gross loans | 24,778,623 | 24,128,807 | 20,365,135 | 21.7% | 2.7% |
| Customer deposits | 22,548,107 | 21,464,578 | 18,722,415 | 20.4% | 5.0% |
| Total equity | 5,427,772 | 5,079,760 | 4,473,400 | 21.3% | 6.9% |
| Number of ordinary shares | 56,022,807 | 55,361,967 | 55,140,216 | 1.6% | 1.2% |
Key ratios
|
| 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| ROE | 26.6% | 27.1% | 27.6% | -1.0 pp | -0.5 pp | 26.2% | 27.0% | -0.8 pp |
| ROA | 3.7% | 3.8% | 4.1% | -0.4 pp | -0.1 pp | 3.7% | 4.0% | -0.3 pp |
| NIM | 6.4% | 6.4% | 6.9% | -0.5 pp | 0.0 pp | 6.4% | 6.7% | -0.3 pp |
| Cost to income | 37.2% | 37.8% | 35.4% | 1.8 pp | -0.6 pp | 37.4% | 34.9% | 2.5 pp |
| Cost of risk | 0.8% | 0.5% | 0.9% | -0.1 pp | 0.3 pp | 0.7% | 0.9% | -0.2 pp |
| NPL to gross loans | 2.1% | 2.0% | 2.0% | 0.1 pp | 0.1 pp | 2.1% | 2.0% | 0.1 pp |
| NPL provision coverage ratio | 72.4% | 75.5% | 87.6% | -15.2 pp | -3.1 pp | 72.4% | 87.6% | -15.2 pp |
| Total NPL coverage ratio | 140.9% | 141.9% | 151.6% | -10.7 pp | -1.0 pp | 140.9% | 151.6% | -10.7 pp |
| Leverage (x) | 7.0x | 7.0x | 6.7x | 0.3x | 0x | 7.0x | 6.7x | 0.3x |
| EPS (GEL) | 6.17 | 5.94 | 5.54 | 11.4% | 3.9% | 17.50 | 15.44 | 13.3% |
| Diluted EPS (GEL) | 6.14 | 5.91 | 5.45 | 12.7% | 3.9% | 17.42 | 15.22 | 14.5% |
| BVPS (GEL) | 94.88 | 90.32 | 80.81 | 17.4% | 5.0% | 94.88 | 80.81 | 17.4% |
| Georgia | | | |
|
|
|
|
|
| CET 1 CAR | 16.6% | 16.8% | 17.5% | -0.9 pp | -0.2 pp | 16.6% | 17.5% | -0.9 pp |
| Tier 1 CAR | 20.4% | 22.3% | 19.9% | 0.5 pp | -1.9 pp | 20.4% | 19.9% | 0.5 pp |
| Total CAR | 23.9% | 25.9% | 22.3% | 1.6 pp | -2.0 pp | 23.9% | 22.3% | 1.6 pp |
| Uzbekistan | | | |
|
|
|
|
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| CET 1 CAR | 16.4% | 12.6% | 14.7% | 1.7 pp | 3.8 pp | 16.4% | 14.7% | 1.7 pp |
| Tier 1 CAR | 16.4% | 12.6% | 14.7% | 1.7 pp | 3.8 pp | 16.4% | 14.7% | 1.7 pp |
| Total CAR | 19.6% | 16.4% | 15.3% | 4.3 pp | 3.2 pp | 19.6% | 15.3% | 4.3 pp |
Operational highlights
Customer base
| In thousands | Sep'24 | Jun'24 | Sep'23 | Change YoY | Change QoQ |
| Total unique registered users | 20,306 | 19,051 | 15,254 | 33% | 7% |
| Georgia | 3,418 | 3,360 | 3,221 | 6% | 2% |
| Uzbekistan | 16,888 | 15,691 | 12,033 | 40% | 8% |
| Total monthly active customers | 6,563 | 6,378 | 5,220 | 26% | 3% |
| Georgia | 1,671 | 1,633 | 1,575 | 6% | 2% |
| Uzbekistan | 4,892 | 4,745 | 3,645 | 34% | 3% |
| Total digital monthly active users (digital MAU) | 5,892 | 5,695 | 4,519 | 30% | 3% |
| Georgia | 1,000 | 950 | 874 | 14% | 5% |
| Uzbekistan | 4,892 | 4,745 | 3,645 | 34% | 3% |
| Total digital daily active users (digital DAU) | 1,948 | 1,884 | 1,436 | 36% | 3% |
| Georgia | 456 | 441 | 384 | 19% | 3% |
| Uzbekistan | 1,492 | 1,443 | 1,052 | 42% | 3% |
| Digital DAU/MAU | 33% | 33% | 32% | 1 pp | 0 pp |
| Georgia | 46% | 46% | 44% | 2 pp | 0 pp |
| Uzbekistan | 30% | 30% | 29% | 1 pp | 0 pp |
Uzbekistan - key highlights
| In thousands of GEL | Sep'24 | Jun'24 | Sep'23 | Change YoY | Change QoQ |
| Gross loans and advances to customers | 1,256,150 | 1,122,400 | 632,013 | 98.8% | 11.9% |
| Customer accounts | 855,689 | 721,632 | 515,586 | 66.0% | 18.6% |
| In thousands of GEL | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| Total operating income | 111,373 | 91,081 | 54,354 | 104.9% | 22.3% | 276,499 | 142,727 | 93.7% |
| Profit for the period | 31,595 | 23,779 | 13,684 | 130.9% | 32.9% | 73,811 | 38,896 | 89.8% |
| ROE | 28.2% | 27.8% | 23.4% | 4.8 pp | 0.4 pp | 26.6% | 24.6% | 2 pp |
Letter from the Chief Executive Officer[1]
I am delighted to announce another very strong quarter for TBC in 3Q 2024. We recorded a net profit of GEL 347 million, up 16% year-on-year, with a return on equity of 26.6%. Notably, the contribution from our digital banking ecosystem in Uzbekistan continues to grow, now representing 15% of the Group's total operating income and 9% of profit. At the same time, our digital monthly active users ("MAU") reached 5.9 million at the Group level, up by 30% year-on-year.
Across the board income growth drives strong performance in 3Q 2024
In 3Q 2024, our total operating income grew by a very healthy 23% year-on-year, reaching GEL 754 million. This growth was broad-based, led in particular by net interest income increasing by 15% year-on-year and a strong contribution from net fee and commission income, which rose by 39% year-on-year. At the same time, I am pleased to report that our NIM dynamics appear to have turned the corner, with Group NIM stabilising at 6.4%.
Strong growth in Georgia, rapid expansion in Uzbekistan
In 3Q 2024, our Georgian financial services segment continued to demonstrate very good growth, with our loan book increasing by 17% year-on-year on a constant currency basis. Over the same period, our deposits grew by 18% on a constant currency basis. As a result, our business in Georgia delivered a net profit of GEL 338 million, up 13% year-on-year, while maintaining a return on equity of 26.5%. Additionally, our capital position remains solid, with CET1, Tier 1, and Total Capital ratios standing at 16.6%, 20.4%, and 23.9%, respectively, all well above the minimum regulatory requirements.
Meanwhile, our digital banking ecosystem in Uzbekistan maintained its rapid expansion, with the loan book nearly doubling year-on-year to reach GEL 1.3 billion (USD 460 million), capturing almost 15% share of the microloan market[2], and accounting for 44% of the Group's unsecured consumer loans. Retail deposits also saw significant growth, increasing by 66% to GEL 856 million (USD 314 million), contributing 10% of the Group's total retail deposits and 3.5% share of the Uzbekistan retail deposit market. This strong performance translated into GEL 111 million (USD 41 million) in total operating income and GEL 32 million (USD 12 million) in net profit, up by 105% and 131% year-on-year, respectively, with the return on equity for our Uzbek operations reaching an excellent 28.2%.
New flagship daily banking product launched in Uzbekistan
We continue to leverage our Group's deep technological expertise and extensive experience in building best-in-class banking and financial services. I would like to highlight the recent launch of Salom Card, our new flagship daily banking product in Uzbekistan. We believe it will set a new benchmark for daily banking services in the country, offering a range of benefits previously unavailable on the market and an easy-to-use, fully digital interface through the TBC mobile app. We are also in the process of rolling out credit cards and transactional MSME banking, both of which will be fully launched by the end of this year. In addition, we have signed long-term strategic partnerships with Visa and Mastercard in Uzbekistan that will enable us to introduce their cards and additional payments solutions for our customers in order to further improve their online payments and money transfer capabilities.
Vakhtang Butskhrikidze
CEO, TBC Bank Group PLC
Economic overview
Georgia
Economic growth stronger than expected
The Georgian economy continued to surge in the third quarter of 2024, with real GDP expanding by a robust 11.1% year-on-year. This follows impressive growth rates of 7.5% in 2023 and 9.1% in the first half of 2024. Tourism has been a key catalyst for this economic acceleration. Tourist revenues experienced a significant increase compared to the same period last year. Also, based on BOP rather than instant money transfers methodology, remittances were higher judging from the second quarter data.
Net inflows into Georgia also increased strongly in the third quarter, primarily due to a strengthened trade balance. Total goods exports denominated in U.S. dollars rose by 25.6% year-over-year in the third quarter of 2024, with domestic exports increasing by 9.4%. Imports grew at a slower pace of 3.6%. Foreign direct investment (FDI) also saw a positive trend, increasing by 10.3% year-on-year in the second quarter of 2024 with reinvested FDI accounted for a substantial portion of this inflow during the first half of the year.
Fiscal consolidation continues
The government remains committed to fiscal consolidation, aiming to reduce both the budget deficit and public debt relative to GDP in the medium term. Following a seasonal surplus in the second quarter, the government recorded a deficit of 2.7% of GDP in the third quarter. As a result, the cumulative budget deficit for the first nine months of 2024 stands at 0.6% of GDP. The government's full-year target of 2.5% remains in place, aligning with the deficit level reached in 2023.
Credit growth remains strong
Bank credit growth, another key driver of the strong economy, has continued to accelerate. Year-over-year credit growth rose from 17.7% in June 2024 to 18.7% in September 2024, when adjusted for exchange rate. Given the low and stable inflation, real credit growth also remained robust at 18.0%. Lending to legal entities remains higher, increasing by 21.1% year-over-year, while lending to individuals grew by 16.6% in the third quarter of 2024. The gradual dedollarization of bank lending continued, with the share of foreign currency loans declining slightly to 43.5% at the end of September 2024, down from 44.4% at the end of June 2024.
GEL impacted by inflows and sentiment
The GEL experienced slight depreciation in May and June 2024. To address excessive volatility, the NBG intervened by selling approximately USD 220 million in the foreign exchange market during these months. Strong foreign currency inflows helped the GEL recover to 2.7 GEL per USD by mid-July and enabled the NBG to increase foreign exchange reserves, thereby strengthening monetary buffers. More recently, renewed market uncertainty caused the GEL to depreciate slightly, reaching 2.72 in October, prompting the NBG to conduct additional foreign exchange interventions.
The CPI inflation remains below the NBG's 3% target, standing at 0.6% year-over-year in Septemeber, with underlying inflation also not showing signs of inflationary pressures. Therefore, the NBG's decision to maintain the monetary policy rate (MPR) at 8% in the third quarter was primarily driven by higher uncertainties also internationally and still tight monetary policy stance in the US.
Uzbekistan
Continued strong economic performance
Uzbekistan's economy continues to expand significantly, with real GDP growth reaching 6.9% in the third quarter of 2024, following a 6.4% increase in the second quarter. In terms of external trade, exports of goods rose by 24.9% year-on-year in the third quarter, while imports declined by 3.9%. Retail credit growth remained strong but slowed slightly, driven by a cooling in non-mortgage lending. Despite this moderation, retail credit growth still stood at a robust 22.0% year-on-year at the end of September. Mortgage credit expanded by 18.1%, while non-mortgage credit grew by 28.6% during the same period.
Annual inflation in Uzbekistan remained nearly unchanged, decreasing slightly from 10.6% in June to 10.5% in September 2024. This stability was primarily influenced by other economic factors, as utility tariffs had already been increased in June. The Central Bank of Uzbekistan lowered its monetary policy rate to 13.5% in July, influenced by the slower depreciation of the UZS, decelerating credit growth and promising outlook for underlying inflation. By the end of September 2024, the UZS was valued at 12,731 against the US Dollar, down about 3% YTD.
Upgrading economic growth forecasts
Given the strong start to 2024 and even stronger third quarter, we recently upgraded our forecast for real GDP growth in Georgia to 9.4% (from 7.4% at the time of our 2Q 2024 results), while our projection for Uzbekistan now stands at 6.5%.
More information on the Georgian economy and financial sector can be found at www.tbccapital.ge.
Progress towards our mid-term strategy targets
In 2023, TBC outlined a new set of medium-term Group and Uzbekistan business targets for 2023-2025. During 2024, we have made good progress towards meeting these targets, including maintaining ROE consistently above 23% and remaining on track to hit GEL1.5 billion Group net profit in 2025, including GEL 200+ million in Uzbekistan.
As part of our strategic review, we determined that growth in TNET GMV to GEL 500 million is no longer a core strategic financial target for the Group and we will discontinue providing specific guidance on this point given the following:
· Solidifying TNET's classifieds market leadership: TNET remains the leading online platform in Georgia for classifieds, ticketing and discounted coupons, with >50% market share and c1.6 million customers. We intend to focus on and strengthen our dominant position in these areas and add new complementary services.
· Reconfiguration of eCommerce strategy: Competitive dynamics within the eCommerce market have changed materially. In response, we have decided to focus on a model led by our market-leading C2C marketplace, with third parties providing all the services, including merchandise, distribution and logistics.
· Leveraging TBC's financial expertise: We will leverage TBC's financial know-how to embed best-in-class payments and credit products within our TNET ecosystem. We aim to grow this business profitably.
Meanwhile, we reiterate that we are fully on track to meet all of our other mid-term targets, as outlined in the tables below alongside the progress towards these as of 9M 2024:
For the Group
| Target for 2025 | Actual performance 9M 2024 |
| 7 million digital monthly active users | 5.9 million |
| GEL 1.5 billion profit (15%+ CAGR) | GEL 973 million, +15% YoY |
| 23%+ ROE | 26.2% |
| 25-35% dividend pay-out ratio | The interim dividend for 2024 is GEL 2.55 per share; GEL 50 million buyback (in 2024) |
For Uzbekistan
| Target for 2025 | Actual performance 9M 2024 |
| 5 million+ digital monthly active users | 4.9 million |
| 80%+ loan book CAGR | +99% YoY |
| GEL 200 million+ profit | GEL 74 million, +90% YoY |
Unaudited consolidated financial results overview for 3Q 2024
This statement provides a summary of the business and financial trends for 3Q 2024 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.
Please note that there might be slight differences in previous periods' figures due to rounding.
Consolidated income statement and other comprehensive income
| In thousands of GEL | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ |
| Interest income | 958,194 | 878,549 | 753,658 | 27.1% | 9.1% |
| Interest expense | (465,633) | (420,438) | (325,724) | 43.0% | 10.7% |
| Net interest income | 492,561 | 458,111 | 427,934 | 15.1% | 7.5% |
| Fee and commission income | 218,596 | 200,874 | 170,479 | 28.2% | 8.8% |
| Fee and commission expense | (73,799) | (77,476) | (66,327) | 11.3% | -4.7% |
| Net fee and commission income | 144,797 | 123,398 | 104,152 | 39.0% | 17.3% |
| Net insurance income | 11,389 | 9,100 | 9,798 | 16.2% | 25.2% |
| Net gains from currency derivatives, foreign currency operations and translation | 101,326 | 85,647 | 66,968 | 51.3% | 18.3% |
| Other operating income | 3,295 | 2,029 | 5,996 | -45.0% | 62.4% |
| Share of profit of associates | 286 | 146 | 371 | -22.9% | 95.9% |
| Other operating non-interest income | 116,296 | 96,922 | 83,133 | 39.9% | 20.0% |
| Credit loss allowance for loans to customers | (47,223) | (27,665) | (42,595) | 10.9% | 70.7% |
| Credit loss allowance for other financial items and net impairment for non-financial assets | (8,052) | (3,900) | (3,564) | NMF | NMF |
| Operating income after expected credit losses | 698,379 | 646,866 | 569,060 | 22.7% | 8.0% |
| Staff costs | (149,257) | (135,653) | (121,056) | 23.3% | 10.0% |
| Depreciation and amortisation | (37,488) | (35,614) | (29,286) | 28.0% | 5.3% |
| Administrative and other operating expenses | (93,463) | (85,310) | (67,745) | 38.0% | 9.6% |
| Operating expenses | (280,208) | (256,577) | (218,087) | 28.5% | 9.2% |
| Profit before tax | 418,171 | 390,289 | 350,973 | 19.1% | 7.1% |
| Income tax expense | (70,908) | (60,991) | (50,485) | 40.5% | 16.3% |
| Profit for the period | 347,263 | 329,298 | 300,488 | 15.6% | 5.5% |
| Profit attributable to: | | | |
|
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| - Shareholders of TBCG | 339,893 | 324,595 | 299,022 | 13.7% | 4.7% |
| - Non-controlling interest | 7,370 | 4,703 | 1,466 | NMF | 56.7% |
| Other comprehensive income: | |
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| Other comprehensive income/(expense) for the period | 48,410 | (41,840) | (11,562) | NMF | NMF |
| Total comprehensive income for the period | 395,673 | 287,458 | 288,926 | 36.9% | 37.6% |
Consolidated balance sheet
| In thousands of GEL | Sep'24 | Jun'24 | Change QoQ |
| ASSETS | | | |
| Cash and cash equivalents | 5,108,157 | 3,688,366 | 38.5% |
| Due from other banks | 23,347 | 20,742 | 12.6% |
| Mandatory cash balances with the NBG and the CBU | 1,991,538 | 1,511,508 | 31.8% |
| Loans and advances to customers | 24,393,183 | 23,757,851 | 2.7% |
| Investment securities measured at fair value through other comprehensive income | 3,443,089 | 4,110,036 | -16.2% |
| Bonds carried at amortised cost | 154,036 | 103,070 | 49.4% |
| Finance lease receivables | 521,782 | 468,395 | 11.4% |
| Investment properties | 14,235 | 14,506 | -1.9% |
| Investments in associates | 4,297 | 3,871 | 11.0% |
| Current income tax prepayment | 84,140 | 1,704 | NMF |
| Deferred income tax asset | 920 | 990 | -7.1% |
| Other financial assets | 296,002 | 306,561 | -3.4% |
| Other assets | 1,322,559 | 1,203,426 | 9.9% |
| Intangible assets | 555,078 | 529,425 | 4.8% |
| Goodwill | 59,963 | 59,964 | 0.0% |
| TOTAL ASSETS | 37,972,326 | 35,780,415 | 6.1% |
| LIABILITIES |
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|
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| Due to credit institutions | 5,922,371 | 4,846,332 | 22.2% |
| Customer accounts | 22,548,107 | 21,464,578 | 5.0% |
| Other financial liabilities | 577,196 | 683,382 | -15.5% |
| Current income tax liability | 27,727 | 4,350 | NMF |
| Deferred income tax liability | 57,934 | 52,882 | 9.6% |
| Debt Securities in issue | 1,621,985 | 1,849,800 | -12.3% |
| Other liabilities | 237,480 | 226,562 | 4.8% |
| Subordinated debt | 1,133,742 | 1,152,841 | -1.7% |
| Redemption liability | 418,012 | 419,928 | -0.5% |
| TOTAL LIABILITIES | 32,544,554 | 30,700,655 | 6.0% |
| EQUITY |
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|
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| Share capital | 1,713 | 1,689 | 1.4% |
| Shares held by trust | (66,982) | (66,982) | 0.0% |
| Share premium | 345,913 | 292,734 | 18.2% |
| Retained earnings | 4,995,298 | 4,796,051 | 4.2% |
| Other reserves | (42,996) | (101,634) | -57.7% |
| Equity attributable to owners of the parent | 5,232,946 | 4,921,858 | 6.3% |
| Non-controlling interest | 194,826 | 157,902 | 23.4% |
| TOTAL EQUITY | 5,427,772 | 5,079,760 | 6.9% |
| TOTAL LIABILITIES AND EQUITY | 37,972,326 | 35,780,415 | 6.1% |
Ratios
| Ratios (based on monthly averages, where applicable) | 3Q'24 | 2Q'24 | 3Q'23 |
| Profitability ratios: | | | |
| ROE1 | 26.6% | 27.1% | 27.6% |
| ROA2 | 3.7% | 3.8% | 4.1% |
| Cost to income3 | 37.2% | 37.8% | 35.4% |
| NIM4 | 6.4% | 6.4% | 6.9% |
| Loan yields5 | 12.9% | 12.6% | 12.6% |
| Deposit rates6 | 5.4% | 5.2% | 4.9% |
| Cost of funding7 | 6.1% | 6.0% | 5.4% |
| Asset quality & portfolio concentration: | | | |
| Cost of risk9 | 0.8% | 0.5% | 0.9% |
| PAR 90 to gross loans9 | 1.4% | 1.4% | 1.2% |
| NPLs to gross loans10 | 2.1% | 2.0% | 2.0% |
| NPL provision coverage11 | 72.4% | 75.5% | 87.6% |
| Total NPL coverage12 | 140.9% | 141.9% | 151.6% |
| Credit loss level to gross loans13 | 1.6% | 1.5% | 1.8% |
| Related party loans to gross loans14 | 0.1% | 0.1% | 0.1% |
| Top 10 borrowers to total portfolio15 | 5.9% | 5.9% | 6.0% |
| Top 20 borrowers to total portfolio16 | 8.7% | 8.7% | 8.9% |
| Capital & liquidity positions: | | | |
| Net loans to deposits plus IFI funding17 | 96.9% | 100.0% | 96.9% |
| Leverage (x)18 | 7.0x | 7.0x | 6.7x |
| Georgia | | | |
| Net stable funding ratio19 | 123.1% | 118.2% | 124.1% |
| Liquidity coverage ratio20 | 121.1% | 118.1% | 114.1% |
| CET 1 CAR21 | 16.6% | 16.8% | 17.5% |
| Tier 1 CAR22 | 20.4% | 22.3% | 19.9% |
| Total 1 CAR23 | 23.9% | 25.9% | 22.3% |
| Uzbekistan | | | |
| CET 1 CAR24 | 16.4% | 12.6% | 14.7% |
| Tier 1 CAR25 | 16.4% | 12.6% | 14.7% |
| Total 1 CAR26 | 19.6% | 16.4% | 15.3% |
Funding and liquidity in Georgia
|
| Sep'24 | Jun'24 | 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 | 123.1% | 118.2% | 4.9 pp |
|
| | | |
| 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 | 121.1% | 118.1% | 3.0 pp |
| LCR in GEL, as defined by the NBG | 85.9% | 100.0% | -14.1 pp |
| LCR in FC, as defined by the NBG | 141.3% | 129.5% | 11.8 pp |
Regulatory capital
In Georgia, the slight decline in CET1 ratio in 3Q 2024 was related to the pending dividend payment and increased loan portfolio, largely offset by strong income generation. Over the same period, the decrease in Tier1 and Total capital adequacy ratios was mainly driven by the repayment of USD 125 million AT1 bonds in July.
Georgia
| In thousands of GEL | Sep'24 | Jun'24 | Change QoQ |
| CET 1 capital | 4,540,404 | 4,344,472 | 4.5% |
| Tier 1 capital | 5,564,042 | 5,749,522 | -3.2% |
| Total capital | 6,533,759 | 6,671,739 | -2.1% |
| Total risk-weighted assets | 27,314,351 | 25,791,645 | 5.9% |
|
| | | |
| Minimum CET 1 ratio | 14.5% | 14.6% | -0.1 pp |
| CET 1 capital adequacy ratio | 16.6% | 16.8% | -0.2 pp |
|
| | | |
| Minimum Tier 1 ratio | 16.8% | 16.9% | -0.1 pp |
| Tier 1 capital adequacy ratio | 20.4% | 22.3% | -1.9 pp |
|
| | | |
| Minimum total capital adequacy ratio | 19.8% | 20.0% | -0.2 pp |
| Total capital adequacy ratio | 23.9% | 25.9% | -2.0 pp |
Uzbekistan
The QoQ increase in TBC UZ's capital adequacy ratios is driven by capital injection in July 2024 (in amount of USD 26.5 million) which makes a total of USD 38.2 million YTD.
|
| Sep'24 | Jun'24 | Change QoQ |
| Minimum CET 1 ratio | 8.0% | 8.0% | 0.0 pp |
| CET 1 capital adequacy ratio | 16.4% | 12.6% | 3.8 pp |
|
| | | |
| Minimum Tier 1 ratio | 10.0% | 10.0% | 0.0 pp |
| Tier 1 capital adequacy ratio | 16.4% | 12.6% | 3.8 pp |
|
| | | |
| Minimum total capital adequacy ratio | 13.0% | 13.0% | 0.0 pp |
| Total capital adequacy ratio | 19.6% | 16.4% | 3.2 pp |
Loan portfolio
As of 30 September 2024, the gross loan portfolio reached GEL 24,778.6 million, up by 2.7% QoQ, or up by 3.5% QoQ on a constant currency basis.
In 3Q 2024, our Georgian financial services loan portfolio increased by 2.3% on a QoQ basis and reached GEL 23,501.9 million, with 2.9% QoQ growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 11.9% QoQ or 16.7% on a constant currency basis.
| In thousands of GEL Gross loans and advances to customers | Sep'24 | Jun'24 | Change QoQ |
| Georgian financial services (Georgia FS)* | 23,501,949 | 22,983,036 | 2.3% |
| Retail Georgia | 8,391,309 | 8,137,555 | 3.1% |
| CIB Georgia | 9,243,424 | 9,082,113 | 1.8% |
| MSME Georgia | 5,882,230 | 5,778,382 | 1.8% |
| Uzbekistan | 1,256,150 | 1,122,400 | 11.9% |
| Total gross loans and advances to customers** | 24,778,623 | 24,128,807 | 2.7% |
* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan portfolio
| | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ |
| Loan yields | 12.9% | 12.6% | 12.6% | 0.3 pp | 0.3 pp |
| GEL | 13.8% | 13.7% | 14.8% | -1.0 pp | 0.1 pp |
| FC | 8.7% | 8.5% | 8.6% | 0.1 pp | 0.2 pp |
| UZS | 44.7% | 44.2% | 41.9% | 2.8 pp | 0.5 pp |
| Georgia FS | 11.3% | 11.1% | 11.7% | -0.4 pp | 0.2 pp |
| GEL | 13.8% | 13.7% | 14.8% | -1.0 pp | 0.1 pp |
| FC | 8.6% | 8.5% | 8.5% | 0.1 pp | 0.1 pp |
| Uzbekistan | 44.7% | 44.2% | 41.9% | 2.8 pp | 0.5 pp |
| UZS | 44.7% | 44.2% | 41.9% | 2.8 pp | 0.5 pp |
| Total loan yields* | 12.9% | 12.6% | 12.6% | 0.3 pp | 0.3 pp |
* Total loans yields include Azerbaijan
Loan portfolio quality
| PAR 90 | Sep'24 | Jun'24 | Change QoQ |
| Georgia FS* | 1.3% | 1.3% | 0.0 pp |
| Retail Georgia | 0.8% | 0.7% | 0.1 pp |
| CIB Georgia | 1.0% | 0.9% | 0.1 pp |
| MSME Georgia | 2.7% | 2.9% | -0.2 pp |
| Uzbekistan | 2.8% | 2.5% | 0.3 pp |
| Total PAR 90** | 1.4% | 1.4% | 0.0 pp |
* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan
| In thousands of GEL | Sep'24 | Jun'24 | Change QoQ |
| Georgia FS* | 496,166 | 462,500 | 7.3% |
| Retail Georgia | 111,411 | 112,924 | -1.3% |
| CIB Georgia | 161,856 | 137,804 | 17.5% |
| MSME Georgia | 222,899 | 211,772 | 5.3% |
| Uzbekistan | 35,163 | 27,699 | 26.9% |
| Total non-performing loans** | 532,353 | 491,068 | 8.4% |
* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs
| NPL to gross loans | Sep'24 | Jun'24 | Change QoQ |
| Georgia FS* | 2.1% | 2.0% | 0.1 pp |
| Retail Georgia | 1.3% | 1.4% | -0.1 pp |
| CIB Georgia | 1.8% | 1.5% | 0.3 pp |
| MSME Georgia | 3.8% | 3.7% | 0.1 pp |
| Uzbekistan | 2.8% | 2.5% | 0.3 pp |
| Total NPL to gross loans** | 2.1% | 2.0% | 0.1 pp |
* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs
|
| Sep'24 | Jun'24 | ||
| NPL Coverage | Provision Coverage | Total Coverage*** | Provision Coverage | Total Coverage*** |
| Georgia FS* | 64.4% | 137.8% | 68.2% | 138.4% |
| Retail Georgia | 144.3% | 206.0% | 133.1% | 195.6% |
| CIB Georgia | 32.2% | 105.8% | 44.1% | 108.8% |
| MSME Georgia | 47.9% | 127.0% | 49.2% | 127.2% |
| Uzbekistan | 180.4% | 180.4% | 192.8% | 192.8% |
| Total NPL coverage** | 72.4% | 140.9% | 75.5% | 141.9% |
* Georgian FS includes sub-segment eliminations
** Total NPL coverage include Azerbaijan loans coverage
*** Total NPL coverage ratio includes provision and collateral coverage
The QoQ increase in CoR was mainly driven by the GFS low base in 2Q 2024 related to the one-off recovery in the amount of GEL 9.3 million.
| Cost of risk (CoR) | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ |
| Georgia FS* | 0.5% | 0.3% | 0.7% | -0.2 pp | 0.2 pp |
| Retail Georgia | 1.1% | 0.4% | 1.1% | 0.0 pp | 0.7 pp |
| CIB Georgia | 0.1% | -0.1% | 0.0% | 0.1 pp | 0.2 pp |
| MSME Georgia | 0.3% | 0.5% | 0.9% | -0.6 pp | -0.2 pp |
| Uzbekistan | 5.7% | 5.5% | 7.3% | -1.6 pp | 0.2 pp |
| Total cost of risk** | 0.8% | 0.5% | 0.9% | -0.1 pp | 0.3 pp |
* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR
Deposit portfolio
As of 30 September 2024, deposit portfolio reached GEL 22,548.1 million, up by 5.0% QoQ, or up by 6.2% QoQ on a constant currency basis.
In 3Q 2024, our Georgia FS deposit portfolio increased by 4.9% on a QoQ basis and reached GEL 21,892.7 million, with 6.0% QoQ growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 18.6% QoQ or 23.6% on a constant currency basis.
| In thousands of GEL Customer accounts | Sep'24 | Jun'24 | Change QoQ |
| Georgia FS* | 21,892,684 | 20,867,540 | 4.9% |
| Retail Georgia | 8,102,782 | 7,830,406 | 3.5% |
| CIB Georgia | 11,211,555 | 10,417,043 | 7.6% |
| MSME Georgia | 1,998,253 | 1,960,795 | 1.9% |
| MOF | 711,745 | 765,096 | -7.0% |
| Uzbekistan | 855,689 | 721,632 | 18.6% |
| Total customer accounts** | 22,548,107 | 21,464,578 | 5.0% |
* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations
|
| 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ |
| Deposit rates | 5.4% | 5.2% | 4.9% | 0.5 pp | 0.2 pp |
| GEL | 7.7% | 7.6% | 8.2% | -0.5 pp | 0.1 pp |
| FC | 1.4% | 1.3% | 0.9% | 0.5 pp | 0.1 pp |
| UZS | 24.7% | 24.8% | 24.4% | 0.3 pp | -0.1 pp |
| Georgian financial services | 4.7% | 4.6% | 4.4% | 0.3 pp | 0.1 pp |
| GEL | 7.7% | 7.6% | 8.2% | -0.5 pp | 0.1 pp |
| FC | 1.4% | 1.3% | 0.9% | 0.5 pp | 0.1 pp |
| Uzbek business | 24.6% | 24.8% | 24.4% | 0.2 pp | -0.2 pp |
| UZS | 24.7% | 24.8% | 24.4% | 0.3 pp | -0.1 pp |
| FC | 4.7% | 2.3% | 4.1% | 0.6 pp | 2.4 pp |
| Total deposit rates* | 5.4% | 5.2% | 4.9% | 0.5 pp | 0.2 pp |
* Total deposits rates include MOF deposits
Unaudited consolidated financial results overview for 9M 2024
This statement provides a summary of the business and financial trends for 9M 2024 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.
Please note that there might be slight differences in previous periods' figures due to rounding.
Consolidated income statement and other comprehensive income
| In thousands of GEL | 9M'24 | 9M'23 | Change YoY |
| Interest income | 2,677,097 | 2,137,628 | 25.2% |
| Interest expense | (1,283,581) | (943,565) | 36.0% |
| Net interest income | 1,393,516 | 1,194,063 | 16.7% |
| Fee and commission income | 598,958 | 484,009 | 23.7% |
| Fee and commission expense | (226,460) | (181,783) | 24.6% |
| Net fee and commission income | 372,498 | 302,226 | 23.3% |
| Net insurance income | 28,292 | 22,200 | 27.4% |
| Net gains from currency derivatives, foreign currency operations and translation | 248,442 | 188,696 | 31.7% |
| Other operating income | 6,926 | 26,126 | -73.5% |
| Share of profit of associates | 391 | 913 | -57.2% |
| Other operating non-interest income | 284,051 | 237,935 | 19.4% |
| Credit loss allowance for loans to customers | (118,788) | (122,019) | -2.6% |
| Credit loss allowance for other financial items and net impairment for non-financial assets | (13,183) | (11,242) | 17.3% |
| Operating income after expected credit and non-financial asset impairment losses | 1,918,094 | 1,600,963 | 19.8% |
| Staff costs | (411,473) | (333,206) | 23.5% |
| Depreciation and amortisation | (107,210) | (87,234) | 22.9% |
| Administrative and other operating expenses | (247,773) | (183,987) | 34.7% |
| Operating expenses | (766,456) | (604,427) | 26.8% |
| Profit before tax | 1,151,638 | 996,536 | 15.6% |
| Income tax expense | (178,606) | (148,002) | 20.7% |
| Profit for the period | 973,032 | 848,534 | 14.7% |
| Profit attributable to: | | |
|
| - Shareholders of TBCG | 957,293 | 836,481 | 14.4% |
| - Non-controlling interest | 15,739 | 12,053 | 30.6% |
| Other comprehensive income: | |
|
|
| Other comprehensive income/(expense) for the period | 14,246 | (1,514) | NMF |
| Total comprehensive income for the period | 987,278 | 847,020 | 16.6% |
Consolidated balance sheet
| In thousands of GEL | Sep'24 | Sep'23 | Change YoY |
| ASSETS | | | |
| Cash and cash equivalents | 5,108,157 | 2,648,469 | 92.9% |
| Due from other banks | 23,347 | 38,954 | -40.1% |
| Mandatory cash balances with NBG and the CBU | 1,991,538 | 1,904,010 | 4.6% |
| Loans and advances to customers | 24,393,183 | 20,003,021 | 21.9% |
| Investment securities measured at fair value through other comprehensive income | 3,443,089 | 3,071,046 | 12.1% |
| Bonds carried at amortised cost | 154,036 | 65,289 | NMF |
| Finance lease receivables | 521,782 | 364,077 | 43.3% |
| Investment properties | 14,235 | 20,629 | -31.0% |
| Investments in associates | 4,297 | 3,940 | 9.1% |
| Current income tax prepayment | 84,140 | 16,062 | NMF |
| Deferred income tax asset | 920 | 10,721 | -91.4% |
| Other financial assets | 296,002 | 259,771 | 13.9% |
| Other assets | 1,322,559 | 1,047,451 | 26.3% |
| Intangible assets | 555,078 | 442,989 | 25.3% |
| Goodwill | 59,963 | 59,964 | 0.0% |
| TOTAL ASSETS | 37,972,326 | 29,956,393 | 26.8% |
| LIABILITIES |
|
|
|
| Due to credit institutions | 5,922,371 | 3,330,925 | 77.8% |
| Customer accounts | 22,548,107 | 18,722,415 | 20.4% |
| Other financial liabilities | 577,196 | 515,000 | 12.1% |
| Current income tax liability | 27,727 | 17,958 | 54.4% |
| Deferred income tax liability | 57,934 | 109,854 | -47.3% |
| Debt Securities in issue | 1,621,985 | 1,432,393 | 13.2% |
| Other liabilities | 237,480 | 202,461 | 17.3% |
| Subordinated debt | 1,133,742 | 788,116 | 43.9% |
| Redemption liability | 418,012 | 363,871 | 14.9% |
| TOTAL LIABILITIES | 32,544,554 | 25,482,993 | 27.7% |
| EQUITY |
|
|
|
| Share capital | 1,713 | 1,682 | 1.8% |
| Shares held by trust | (66,982) | (75,470) | -11.2% |
| Share premium | 345,913 | 272,930 | 26.7% |
| Retained earnings | 4,995,298 | 4,145,795 | 20.5% |
| Other reserves | (42,996) | 19,761 | NMF |
| Equity attributable to owners of the parent | 5,232,946 | 4,364,698 | 19.9% |
| Non-controlling interest | 194,826 | 108,702 | 79.2% |
| TOTAL EQUITY | 5,427,772 | 4,473,400 | 21.3% |
| TOTAL LIABILITIES AND EQUITY | 37,972,326 | 29,956,393 | 26.8% |
Ratios
| Ratios (based on monthly averages, where applicable) | 9M'24 | 9M'23 |
| Profitability ratios: | | |
| ROE1 | 26.2% | 27.0% |
| ROA2 | 3.7% | 4.0% |
| Cost to income3 | 37.4% | 34.9% |
| NIM4 | 6.4% | 6.7% |
| Loan yields5 | 12.8% | 12.6% |
| Deposit rates6 | 5.3% | 4.9% |
| Cost of funding7 | 6.0% | 5.5% |
| Asset quality & portfolio concentration: | | |
| Cost of risk9 | 0.7% | 0.9% |
| PAR 90 to gross loans9 | 1.4% | 1.2% |
| NPLs to gross loans10 | 2.1% | 2.0% |
| NPL provision coverage11 | 72.4% | 87.6% |
| Total NPL coverage12 | 140.9% | 151.6% |
| Credit loss level to gross loans13 | 1.6% | 1.8% |
| Related party loans to gross loans14 | 0.1% | 0.1% |
| Top 10 borrowers to total portfolio15 | 5.9% | 6.0% |
| Top 20 borrowers to total portfolio16 | 8.7% | 8.9% |
| Capital & liquidity positions: | | |
| Net loans to deposits plus IFI funding17 | 96.9% | 96.9% |
| Leverage (x)18 | 7.0x | 6.7x |
| Georgia | | |
| Net stable funding ratio19 | 123.1% | 124.1% |
| Liquidity coverage ratio20 | 121.1% | 114.1% |
| CET 1 CAR21 | 16.6% | 17.5% |
| Tier 1 CAR22 | 20.4% | 19.9% |
| Total 1 CAR23 | 23.9% | 22.3% |
| Uzbekistan | | |
| CET 1 CAR24 | 16.4% | 14.7% |
| Tier 1 CAR25 | 16.4% | 14.7% |
| Total 1 CAR26 | 19.6% | 15.3% |
Funding and liquidity in Georgia
|
| Sep'24 | Sep'23 | Change YoY |
| 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 | 123.1% | 124.1% | -1.0 pp |
|
| | | |
| 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 | 121.1% | 114.1% | 7.0 pp |
| LCR in GEL, as defined by the NBG | 85.9% | 105.7% | -19.8 pp |
| LCR in FC, as defined by the NBG | 141.3% | 121.0% | 20.3 pp |
Regulatory capital
The YoY increase in Tier 1 and total capital adequacy ratios was mainly due to the issuance of USD 300 million AT1 capital notes, which was partially offset by the repayment of USD 125 million AT1 notes.
Georgia
| In thousands of GEL | Sep'24 | Sep'23 | Change YoY |
| CET 1 capital | 4,540,404 | 3,966,901 | 14.5% |
| Tier 1 capital | 5,564,042 | 4,502,561 | 23.6% |
| Total capital | 6,533,759 | 5,058,696 | 29.2% |
| Total risk-weighted assets | 27,314,351 | 22,668,335 | 20.5% |
|
| | | |
| Minimum CET 1 ratio | 14.5% | 14.4% | 0.1 pp |
| CET 1 capital adequacy ratio | 16.6% | 17.5% | -0.9 pp |
|
| | | |
| Minimum Tier 1 ratio | 16.8% | 16.8% | 0.0 pp |
| Tier 1 capital adequacy ratio | 20.4% | 19.9% | 0.5 pp |
|
| | | |
| Minimum total capital adequacy ratio | 19.8% | 19.9% | -0.1 pp |
| Total capital adequacy ratio | 23.9% | 22.3% | 1.6 pp |
Uzbekistan
The YoY increase of capital adequacy ratios was driven by capital injections and the new payment-to-income (PTI) based method for calculating RWAs, adopted by CBU starting from 1st of July 2024.
|
| Sep'24 | Sep'23 | Change YoY |
| Minimum CET 1 ratio | 8.0% | 8.0% | 0.0 pp |
| CET 1 capital adequacy ratio | 16.4% | 14.7% | 1.7 pp |
|
| | | |
| Minimum Tier 1 ratio | 10.0% | 10.0% | 0.0 pp |
| Tier 1 capital adequacy ratio | 16.4% | 14.7% | 1.7 pp |
|
| | | |
| Minimum total capital adequacy ratio | 13.0% | 13.0% | 0.0 pp |
| Total capital adequacy ratio | 19.6% | 15.3% | 4.3 pp |
Loan portfolio
As of 30 September 2024, the gross loan portfolio reached GEL 24,778.6 million, up by 21.7% YoY, or up by 19.8% YoY on a constant currency basis.
In 9M 2024, our Georgia FS loan portfolio increased by 19.2% on a YoY and reached GEL 23,501.9 million, with 17.1% YoY growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 98.8% or 103.9% on a constant currency basis.
| In thousands of GEL Gross loans and advances to customers | Sep'24 | Sep'23 | Change YoY |
| Georgian financial services (Georgia FS)* | 23,501,949 | 19,715,795 | 19.2% |
| Retail Georgia | 8,391,309 | 7,131,727 | 17.7% |
| CIB Georgia | 9,243,424 | 7,385,494 | 25.2% |
| MSME Georgia | 5,882,230 | 5,203,680 | 13.0% |
| Uzbekistan | 1,256,150 | 632,013 | 98.8% |
| Total gross loans and advances to customers** | 24,778,623 | 20,365,135 | 21.7% |
* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan portfolio
| | 9M'24 | 9M'23 | Change YoY |
| Loan yields | 12.8% | 12.6% | 0.2 pp |
| GEL | 13.9% | 15.0% | -1.1 pp |
| FC | 8.6% | 8.4% | 0.2 pp |
| UZS | 44.2% | 42.6% | 1.6 pp |
| Georgia FS | 11.3% | 11.8% | -0.5 pp |
| GEL | 13.9% | 15.0% | -1.1 pp |
| FC | 8.6% | 8.4% | 0.2 pp |
| Uzbekistan | 44.2% | 42.6% | 1.6 pp |
| UZS | 44.2% | 42.6% | 1.6 pp |
| Total loan yields* | 12.8% | 12.6% | 0.2 pp |
* Total loans yields include Azerbaijan
Loan portfolio quality
| PAR 90 | Sep'24 | Sep'23 | Change YoY |
| Georgia FS* | 1.3% | 1.2% | 0.1 pp |
| Retail Georgia | 0.8% | 0.9% | -0.1 pp |
| CIB Georgia | 1.0% | 0.5% | 0.5 pp |
| MSME Georgia | 2.7% | 2.5% | 0.2 pp |
| Uzbekistan | 2.8% | 2.1% | 0.7 pp |
| Total PAR 90** | 1.4% | 1.2% | 0.2 pp |
* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan
| In thousands of GEL | Sep'24 | Sep'23 | Change YoY |
| Georgia FS* | 496,166 | 399,230 | 24.3% |
| Retail Georgia | 111,411 | 129,162 | -13.7% |
| CIB Georgia | 161,856 | 94,940 | 70.5% |
| MSME Georgia | 222,899 | 175,128 | 27.3% |
| Uzbekistan | 35,163 | 13,584 | 158.9% |
| Total non-performing loans** | 532,353 | 413,520 | 28.7% |
* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs
| NPL to gross loans | Sep'24 | Sep'23 | Change YoY |
| Georgia FS* | 2.1% | 2.0% | 0.1 pp |
| Retail Georgia | 1.3% | 1.8% | -0.5 pp |
| CIB Georgia | 1.8% | 1.3% | 0.5 pp |
| MSME Georgia | 3.8% | 3.4% | 0.4 pp |
| Uzbekistan | 2.8% | 2.1% | 0.7 pp |
| Total NPL to gross loans** | 2.1% | 2.0% | 0.1 pp |
* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs
|
| Sep'24 | Sep'23 | ||
| NPL Coverage | Provision Coverage | Total Coverage*** | Provision Coverage | Total Coverage*** |
| Georgia FS* | 64.4% | 137.8% | 82.5% | 148.6% |
| Retail Georgia | 144.3% | 206.0% | 136.0% | 189.2% |
| CIB Georgia | 32.2% | 105.8% | 52.0% | 111.4% |
| MSME Georgia | 47.9% | 127.0% | 59.5% | 138.8% |
| Uzbekistan | 180.4% | 180.4% | 199.9% | 199.9% |
| Total NPL coverage** | 72.4% | 140.9% | 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 (CoR) | 9M'24 | 9M'23 | Change YoY |
| Georgia FS* | 0.5% | 0.7% | -0.2 pp |
| Retail Georgia | 0.9% | 1.0% | -0.1 pp |
| CIB Georgia | 0.1% | 0.0% | 0.1 pp |
| MSME Georgia | 0.5% | 1.3% | -0.8 pp |
| Uzbekistan | 5.6% | 6.6% | -1.0 pp |
| Total cost of risk** | 0.7% | 0.9% | -0.2 pp |
* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR
Deposit portfolio
As of 30 September 2024, deposit portfolio reached GEL 22,548.1 million, up by 20.4% YoY, or up by 18.9% YoY on a constant currency basis.
In 9M 2024, our Georgia FS deposit portfolio increased by 19.6% on a YoY and reached GEL 21,892.7 million, with 17.9% YoY growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 66.0% YoY or 70.2% on a constant currency basis.
| In thousands of GEL Customer accounts | Sep'24 | Sep'23 | Change YoY |
| Georgia FS* | 21,892,684 | 18,300,484 | 19.6% |
| Retail Georgia | 8,102,782 | 7,097,710 | 14.2% |
| CIB Georgia | 11,211,555 | 8,973,867 | 24.9% |
| MSME Georgia | 1,998,253 | 1,733,865 | 15.2% |
| MOF | 711,745 | 611,017 | 16.5% |
| Uzbekistan | 855,689 | 515,586 | 66.0% |
| Total customer accounts** | 22,548,107 | 18,722,415 | 20.4% |
* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations
|
| 9M'24 | 9M'23 | Change YoY |
| Deposit rates | 5.3% | 4.9% | 0.4 pp |
| GEL | 7.8% | 8.4% | -0.6 pp |
| FC | 1.3% | 0.8% | 0.5 pp |
| UZS | 25.0% | 24.9% | 0.1 pp |
| Georgian financial services | 4.7% | 4.5% | 0.2 pp |
| GEL | 7.8% | 8.5% | -0.7 pp |
| FC | 1.3% | 0.8% | 0.5 pp |
| Uzbek business | 24.9% | 24.8% | 0.1 pp |
| UZS | 25.0% | 24.9% | 0.1 pp |
| FC | 3.7% | 4.4% | -0.7 pp |
| Total deposit rates* | 5.3% | 4.9% | 0.4 pp |
* Total deposits rates include MOF deposits
Additional information
1) Financial disclosures by business lines
Business line definitions
The operating segments are defined as follows:
· Georgian financial services (GFS) - 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:
o Corporate and investment banking (CIB) - a legal entity/group of affiliated entities with an annual revenue exceeding GEL 20 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 segment or transferred to the micro, small and medium enterprises segment on a discretionary basis. In addition, CIB includes Wealth Management private banking services to high-net-worth individuals with a threshold of USD 250,000 on assets under management (AUM), as well as on discretionary basis;
o Retail - non-business individual customers;
o 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.
Georgian financial services
Profit and loss statement
| In thousands of GEL | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| Interest income | 807,571 | 752,671 | 683,275 | 18.2% | 7.3% | 2,297,075 | 1,960,800 | 17.1% |
| Interest expense | (399,020) | (364,481) | (292,486) | 36.4% | 9.5% | (1,114,666) | (857,732) | 30.0% |
| Net interest income | 408,551 | 388,190 | 390,789 | 4.5% | 5.2% | 1,182,409 | 1,103,068 | 7.2% |
| Fee and commission income | 176,655 | 164,483 | 144,172 | 22.5% | 7.4% | 489,630 | 410,393 | 19.3% |
| Fee and commission expense | (64,217) | (66,562) | (59,771) | 7.4% | -3.5% | (198,028) | (164,591) | 20.3% |
| Net fee and commission income | 112,438 | 97,921 | 84,401 | 33.2% | 14.8% | 291,602 | 245,802 | 18.6% |
| Net insurance income | 11,567 | 9,290 | 9,939 | 16.4% | 24.5% | 28,833 | 22,699 | 27.0% |
| Net gains from currency derivatives, foreign currency operations and translation | 102,426 | 88,170 | 68,938 | 48.6% | 16.2% | 255,225 | 202,257 | 26.2% |
| Other operating income | 3,098 | 1,917 | 4,045 | -23.4% | 61.6% | 6,567 | 20,278 | -67.6% |
| Share of profit of associates | 286 | 146 | 371 | -22.9% | 95.9% | 391 | 913 | -57.2% |
| Other operating non-interest income | 117,377 | 99,523 | 83,293 | 40.9% | 17.9% | 291,016 | 246,147 | 18.2% |
| Credit loss allowance for loans to customers | (30,275) | (14,103) | (32,173) | -5.9% | NMF | (81,203) | (99,425) | -18.3% |
| Credit loss allowance for other financial items and net impairment for non-financial assets | (2,039) | (2,792) | (3,269) | -37.6% | -27.0% | (5,421) | (9,145) | -40.7% |
| Operating income after expected credit and non-financial asset impairment losses | 606,052 | 568,739 | 523,041 | 15.9% | 6.6% | 1,678,403 | 1,486,447 | 12.9% |
| Staff costs | (114,972) | (105,855) | (101,647) | 13.1% | 8.6% | (322,067) | (279,116) | 15.4% |
| Depreciation and amortisation | (31,369) | (30,013) | (25,077) | 25.1% | 4.5% | (90,647) | (75,370) | 20.3% |
| Administrative and other operating expenses | (57,145) | (51,998) | (49,090) | 16.4% | 9.9% | (153,907) | (135,502) | 13.6% |
| Operating expenses | (203,486) | (187,866) | (175,814) | 15.7% | 8.3% | (566,621) | (489,988) | 15.6% |
| Profit before tax | 402,566 | 380,873 | 347,227 | 15.9% | 5.7% | 1,111,782 | 996,459 | 11.6% |
| Income tax expense | (64,776) | (57,166) | (49,175) | 31.7% | 13.3% | (165,646) | (145,133) | 14.1% |
| Profit for the period | 337,790 | 323,707 | 298,052 | 13.3% | 4.4% | 946,136 | 851,326 | 11.1% |
Balance sheet highlights
| In thousands of GEL | 30-Sep-24 | 30-Jun-24 | 30-Sep-23 | Change YoY | Change QoQ |
| Cash & NBG mandatory reserves | 7,021,266 | 5,000,618 | 4,494,578 | 56.2% | 40.4% |
| Due from other banks | 23,315 | 20,708 | 38,923 | -40.1% | 12.6% |
| Loans and advances to customers | 23,182,234 | 22,667,567 | 19,386,577 | 19.6% | 2.3% |
| Investment securities measured at fair value through OCI | 3,443,089 | 4,110,036 | 3,071,046 | 12.1% | -16.2% |
| Intangible assets and Goodwill | 415,793 | 406,942 | 371,909 | 11.8% | 2.2% |
| Other assets | 2,012,795 | 1,877,077 | 1,665,400 | 20.9% | 7.2% |
| TOTAL ASSETS | 36,098,492 | 34,082,948 | 29,028,433 | 24.4% | 5.9% |
| Due to credit institutions | 5,733,053 | 4,675,711 | 3,278,155 | 74.9% | 22.6% |
| Customer accounts | 21,892,684 | 20,867,540 | 18,300,484 | 19.6% | 4.9% |
| Subordinated debt and debt securities in issue | 2,458,892 | 2,682,703 | 2,052,334 | 19.8% | -8.3% |
| Other liabilities | 818,976 | 902,091 | 884,208 | -7.4% | -9.2% |
| TOTAL LIABILITIES | 30,903,605 | 29,128,045 | 24,515,181 | 26.1% | 6.1% |
| Equity attributable to shareholders | 5,194,653 | 4,954,687 | 4,513,055 | 15.1% | 4.8% |
| Non-controlling interest | 234 | 216 | 197 | 18.8% | 8.3% |
| TOTAL EQUITY | 5,194,887 | 4,954,903 | 4,513,252 | 15.1% | 4.8% |
| TOTAL LIABILITIES AND EQUITY | 36,098,492 | 34,082,948 | 29,028,433 | 24.4% | 5.9% |
Key ratios
| Georgian financial services | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| Profitability ratios: | | | | | |
|
|
|
| ROE1 | 26.5% | 26.9% | 26.4% | 0.1 pp | -0.4 pp | 25.8% | 25.9% | -0.1 pp |
| ROA2 | 3.8% | 3.9% | 4.2% | -0.4 pp | -0.1 pp | 3.8% | 4.1% | -0.3 pp |
| Cost to income3 | 31.9% | 32.1% | 31.5% | 0.4 pp | -0.2 pp | 32.1% | 30.7% | 1.4 pp |
| NIM4 | 5.6% | 5.6% | 6.5% | -0.9 pp | 0.0 pp | 5.7% | 6.4% | -0.7 pp |
| Loan yields5 | 11.3% | 11.1% | 11.7% | -0.4 pp | 0.2 pp | 11.3% | 11.8% | -0.5 pp |
| Deposit rates6 | 4.7% | 4.6% | 4.4% | 0.3 pp | 0.1 pp | 4.7% | 4.5% | 0.2 pp |
| Cost of funding7 | 5.4% | 5.4% | 5.0% | 0.4 pp | 0.0 pp | 5.4% | 5.1% | 0.3 pp |
| Asset quality & portfolio concentration: |
|
|
|
|
|
|
|
|
| Cost of risk8 | 0.5% | 0.3% | 0.7% | -0.2 pp | 0.2 pp | 0.5% | 0.7% | -0.2 pp |
| PAR 90 to gross loans9 | 1.3% | 1.3% | 1.2% | 0.1 pp | 0.0 pp | 1.3% | 1.2% | 0.1 pp |
| NPLs to gross loans10 | 2.1% | 2.0% | 2.0% | 0.1 pp | 0.1 pp | 2.1% | 2.0% | 0.1 pp |
| NPL provision coverage11 | 64.4% | 68.2% | 82.5% | -18.1 pp | -3.8 pp | 64.4% | 82.5% | -18.1 pp |
| Total NPL coverage12 | 137.8% | 138.4% | 148.6% | -10.8 pp | -0.6 pp | 137.8% | 148.6% | -10.8 pp |
For the ratio definitions and exchange rates, please refer to appendix 3.
Uzbekistan business
Profit and loss statement
| In thousands of GEL | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| Interest income | 148,879 | 123,740 | 68,549 | NMF | 20.3% | 373,943 | 171,804 | NMF |
| Interest expense | (65,329) | (56,729) | (32,379) | NMF | 15.2% | (169,086) | (82,745) | NMF |
| Net interest income | 83,550 | 67,011 | 36,170 | NMF | 24.7% | 204,857 | 89,059 | NMF |
| Fee and commission income | 38,740 | 34,861 | 24,632 | 57.3% | 11.1% | 101,674 | 70,473 | 44.3% |
| Fee and commission expense | (11,089) | (10,771) | (6,540) | 69.6% | 3.0% | (29,759) | (17,012) | 74.9% |
| Net fee and commission income | 27,651 | 24,090 | 18,092 | 52.8% | 14.8% | 71,915 | 53,461 | 34.5% |
| Net gains from currency derivatives, foreign currency operations and translation | 169 | (30) | 56 | NMF | NMF | (287) | 139 | NMF |
| Other operating income | 3 | 10 | 36 | -91.7% | -70.0% | 14 | 68 | -79.4% |
| Other operating non-interest income/(expense) | 172 | (20) | 92 | 87.0% | NMF | (273) | 207 | NMF |
| Credit loss allowance for loans to customers | (16,857) | (14,050) | (10,694) | 57.6% | 20.0% | (42,660) | (23,576) | 80.9% |
| Credit loss allowance for other financial items and net impairment for non-financial assets | (2,078) | (1,029) | (552) | NMF | NMF | (3,630) | (1,853) | 95.9% |
| Operating income after expected credit and non-financial asset impairment losses | 92,438 | 76,002 | 43,108 | NMF | 21.6% | 230,209 | 117,298 | 96.3% |
| Staff costs | (19,510) | (15,028) | (10,047) | 94.2% | 29.8% | (47,512) | (28,347) | 67.6% |
| Depreciation and amortisation | (3,350) | (3,153) | (2,255) | 48.6% | 6.2% | (9,262) | (6,485) | 42.8% |
| Administrative and other operating expenses | (31,929) | (30,181) | (15,929) | NMF | 5.8% | (86,745) | (40,754) | NMF |
| Operating expenses | (54,789) | (48,362) | (28,231) | 94.1% | 13.3% | (143,519) | (75,586) | 89.9% |
| Profit before tax | 37,649 | 27,640 | 14,877 | NMF | 36.2% | 86,690 | 41,712 | NMF |
| Income tax expense | (6,054) | (3,861) | (1,193) | NMF | 56.8% | (12,879) | (2,816) | NMF |
| Profit for the period | 31,595 | 23,779 | 13,684 | NMF | 32.9% | 73,811 | 38,896 | 89.8% |
Balance sheet highlights
| In thousands of GEL | 30-Sep-24 | 30-Jun-24 | 30-Sep-23 | Change YoY | Change QoQ |
| Cash & CBU mandatory reserves | 86,464 | 207,848 | 51,872 | 66.7% | -58.4% |
| Loans and advances to customers | 1,192,707 | 1,068,992 | 604,856 | 97.2% | 11.6% |
| Intangible assets and Goodwill | 58,999 | 60,633 | 29,554 | 99.6% | -2.7% |
| Other assets | 380,050 | 228,993 | 137,961 | NMF | 66.0% |
| TOTAL ASSETS | 1,718,220 | 1,566,466 | 824,243 | NMF | 9.7% |
| Due to credit institutions | 303,967 | 331,137 | 46,504 | NMF | -8.2% |
| Customer accounts | 855,689 | 721,632 | 515,586 | 66.0% | 18.6% |
| Subordinated debt and debt securities in issue | - | 46,869 | - | NMF | NMF |
| Other liabilities | 82,781 | 78,852 | 28,201 | NMF | 5.0% |
| TOTAL LIABILITIES | 1,242,437 | 1,178,490 | 590,291 | NMF | 5.4% |
| Equity attributable to shareholders | 475,783 | 387,976 | 233,952 | NMF | 22.6% |
| TOTQL EQUITY | 475,783 | 387,976 | 233,952 | NMF | 22.6% |
| TOTAL LIABILITIES AND EQUITY | 1,718,220 | 1,566,466 | 824,243 | NMF | 9.7% |
Key ratios
| Uzbekistan business | 3Q'24 | 2Q'24 | 3Q'23 | Change YoY | Change QoQ | 9M'24 | 9M'23 | Change YoY |
| Profitability ratios: | | | | | |
|
|
|
| ROE1 | 28.2% | 27.8% | 23.4% | 4.8 pp | 0.4 pp | 26.6% | 24.6% | 2.0 pp |
| ROA2 | 7.8% | 6.9% | 6.8% | 1.0 pp | 0.9 pp | 7.2% | 7.5% | -0.3 pp |
| Cost to income3 | 49.2% | 53.1% | 51.9% | -2.7 pp | -3.9 pp | 51.9% | 53.0% | -1.1 pp |
| NIM4 | 25.0% | 24.4% | 20.9% | 4.1 pp | 0.6 pp | 24.5% | 20.4% | 4.1 pp |
| Loan yields5 | 44.7% | 44.2% | 41.9% | 2.8 pp | 0.5 pp | 44.2% | 42.6% | 1.6 pp |
| Deposit rates6 | 24.6% | 24.8% | 24.4% | 0.2 pp | -0.2 pp | 24.9% | 24.8% | 0.1 pp |
| Cost of funding7 | 23.5% | 23.1% | 24.0% | -0.5 pp | 0.4 pp | 23.8% | 24.4% | -0.6 pp |
| Asset quality & portfolio concentration: |
|
|
|
|
|
|
|
|
| Cost of risk8 | 5.7% | 5.5% | 7.3% | -1.6 pp | 0.2 pp | 5.6% | 6.6% | -1.0 pp |
| PAR 90 to gross loans9 | 2.8% | 2.5% | 2.1% | 0.7 pp | 0.3 pp | 2.8% | 2.1% | 0.7 pp |
| NPLs to gross loans10 | 2.8% | 2.5% | 2.1% | 0.7 pp | 0.3 pp | 2.8% | 2.1% | 0.7 pp |
| NPL provision coverage11 | 180.4% | 192.8% | 199.9% | -19.5 pp | -12.4 pp | 180.4% | 199.9% | -19.5 pp |
| Total NPL coverage12 | 180.4% | 192.8% | 199.9% | -19.5 pp | -12.4 pp | 180.4% | 199.9% | -19.5 pp |
For the ratio definitions and exchange rates, please refer to appendix 3.
2) Glossary
| Terminology | Definition |
| BVPS | Book value per share |
| CBU | Central Bank of Uzbekistan |
| Consumer loans | Unsecured loans to individuals |
| 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 | The number of retail digital users, who logged into our digital channels at least once a month |
| EPS | Earnings per share |
| Monthly active customers (MAC) | 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 |
3) 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. Leverage equals total assets to total equity.
19. 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.
20. 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.
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.
24. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both calculated in accordance with requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.
25. Tier 1 CAR equals tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.
26. Total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.
Exchange rates
To calculate the QoQ growth of the balance sheet items without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.8101 as of 30 June 2024. To calculate the YoY growth without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.6783 as of 30 September 2023. As of 30 September 2024, the USD/GEL exchange rate equalled 2.7297. For P&L items growth calculations without the currency effect, we used the average USD/GEL exchange rate for the following periods: 2Q 2024 of 2.7396 and 3Q 2023 of 2.6215. As of 3Q 2024, the USD/GEL exchange rate equalled 2.7137, 9M 2024 of 2.7082, 9M 2023 of 2.6056.
[1] Note: For better presentation purposes, certain financial numbers are rounded to the nearest whole number.
[2] Based on data published by the CBU, as of 1 October 2024.
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