TBC BANK GROUP PLC ("TBC Bank")

4Q AND FY 2024 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" or "TBCG") 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.

 

4Q and FY 2024 consolidated financial results conference call details

 

TBC Bank Group PLC ("TBC PLC") has published its preliminary unaudited consolidated financial results for the 4Q and FY 2024 on Wednesday, 12 February 2025 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=9b450464&confId=76359

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

 

4Q and FY 2024 preliminary unaudited consolidated financial results announcement

 

Interim management report

Financial highlights. 5

Operational highlights. 6

Letter from the Chief Executive Officer. 7

Economic overview.. 8

Progress towards our mid-term strategy targets. 8

Unaudited consolidated financial results overview for 4Q 2024. 9

Preliminary unaudited consolidated financial results overview for FY 2024. 15

Additional information. 21

1)          Financial disclosures by business lines. 21

2)          Glossary. 24

3)          Ratio definitions and exchange rates. 24

 

4Q and FY 2024 preliminary unaudited consolidated financial results

4Q 2024 net profit of GEL 335 million, up by 15% YoY, with ROE at 24.1%.

FY 2024 net profit of GEL 1.3 billion, up by 15% YoY, with ROE at 25.6%.

 

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 2024 and 31 December 2023 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 2024 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 2023 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'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
Net interest income	507,691	492,561	441,735	14.9%	3.1%	1,901,207	1,635,798	16.2%
Net fee and commission income	147,928	144,797	110,099	34.4%	2.2%	520,426	412,325	26.2%
Other non-interest income	128,038	116,296	87,442	46.4%	10.1%	412,089	325,377	26.6%
Total operating income	783,657	753,654	639,276	22.6%	4.0%	2,833,722	2,373,500	19.4%
Total credit loss allowance	(74,790)	(55,275)	(47,479)	57.5%	35.3%	(206,761)	(180,740)	14.4%
Operating expenses	(306,620)	(280,208)	(254,500)	20.5%	9.4%	(1,073,076)	(858,927)	24.9%
Non-recurring impairment loss due to write-down of the asset held for sale	(9,800)	-	-	NMF	NMF	(9,800)	-	NMF
Net profit before tax	392,447	418,171	337,297	16.4%	-6.2%	1,544,085	1,333,833	15.8%
Income tax expense	(57,848)	(70,908)	(45,856)	26.2%	-18.4%	(236,454)	(193,858)	22.0%
Net profit	334,599	347,263	291,441	14.8%	-3.6%	1,307,631	1,139,975	14.7%
Adjusted net profit[1]	344,399	347,263	291,441	18.2%	-0.8%	1,317,431	1,139,975	15.6%

 

Balance sheet

In thousands of GEL	Dec'24	Sep'24	Dec'23	Change YoY	Change QoQ
Total assets	40,160,466	37,972,326	32,964,827	21.8%	5.8%
Gross loans	26,721,683	25,315,760	22,484,958	18.8%	5.6%
Customer deposits	22,863,833	22,548,107	20,375,498	12.2%	1.4%
Total equity	5,739,009	5,427,772	4,820,182	19.1%	5.7%
Number of ordinary shares	56,287,900	56,022,807	55,393,664	1.6%	0.5%

Key ratios

	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
ROE	24.1%	26.6%	25.2%	-1.1 pp	-2.5 pp	25.6%	26.5%	-0.9 pp
Adjusted ROE1	24.8%	26.6%	25.2%	-0.4 pp	-1.8 pp	25.8%	26.5%	-0.7 pp
ROA	3.3%	3.7%	3.7%	-0.4 pp	-0.4 pp	3.6%	3.9%	-0.3 pp
NIM	6.7%	6.4%	6.7%	0.0 pp	0.3 pp	6.7%	6.7%	0.0 pp
Cost to income	39.1%	37.2%	39.8%	-0.7 pp	1.9 pp	37.9%	36.2%	1.7 pp
Cost of risk	1.0%	0.8%	0.7%	0.3 pp	0.2 pp	0.8%	0.8%	0.0 pp
NPL to gross loans	2.2%	2.2%	2.0%	0.2 pp	0.0 pp	2.2%	2.0%	0.2 pp
NPL provision coverage ratio	71.8%	72.3%	79.6%	-7.8 pp	-0.5 pp	71.8%	79.6%	-7.8 pp
Total NPL coverage ratio	143.9%	141.6%	147.7%	-3.8 pp	2.3 pp	143.9%	147.7%	-3.8 pp
Leverage (x)	7.0x	7.0x	6.8x	0.2x	0x	7.0x	6.8x	0.2x
EPS (GEL)	5.91	6.17	5.31	11.3%	-4.2%	23.41	20.74	12.9%
Diluted EPS (GEL)	5.87	6.14	5.26	11.6%	-4.4%	23.27	20.58	13.1%
BVPS (GEL)	100.25	94.88	86.32	16.1%	5.7%	100.25	86.32	16.1%
Georgia
CET 1 CAR	16.8%	16.6%	17.4%	-0.6 pp	0.2 pp	16.8%	17.4%	-0.6 pp
Tier 1 CAR	20.4%	20.4%	19.6%	0.8 pp	0.0 pp	20.4%	19.6%	0.8 pp
Total CAR	23.8%	23.9%	22.1%	1.7 pp	-0.1 pp	23.8%	22.1%	1.7 pp
Uzbekistan
CET 1 CAR	21.9%	16.4%	15.4%	6.5 pp	5.5 pp	21.9%	15.4%	6.5 pp
Tier 1 CAR	21.9%	16.4%	15.4%	6.5 pp	5.5 pp	21.9%	15.4%	6.5 pp
Total CAR	23.2%	19.6%	16.3%	6.9 pp	3.6 pp	23.2%	16.3%	6.9 pp

Operational highlights

Customer base

In thousands	Dec'24	Sep'24	Dec'23	Change YoY	Change QoQ
Total unique registered users	21,814	20,486	16,710	31%	6%
Georgia	3,463	3,418	3,275	6%	1%
Uzbekistan	18,351	17,068	13,435	37%	8%
Total monthly active customers	7,619	6,563	5,890	29%	16%
Georgia	1,701	1,671	1,604	6%	2%
Uzbekistan	5,918	4,892	4,286	38%	21%
Total digital monthly active users (digital MAU)	6,968	5,892	5,207	34%	18%
Georgia	1,050	1,000	921	14%	5%
Uzbekistan	5,918	4,892	4,286	38%	21%
Total digital daily active users (digital DAU)	2,444	1,948	1,718	42%	25%
Georgia	494	456	421	17%	8%
Uzbekistan	1,950	1,492	1,297	50%	31%
Digital DAU/MAU	35%	33%	33%	2 pp	2 pp
Georgia	47%	46%	46%	1 pp	0 pp
Uzbekistan	33%	30%	30%	3 pp	3 pp

Unique registered users of Uzbekistan have been reclassified

Uzbekistan - key highlights

In thousands of GEL	Dec'24	Sep'24	Dec'23	Change YoY	Change QoQ
Gross loans and advances to customers	1,758,028	1,373,506	828,710	112.1%	28.0%
Customer accounts	1,055,758	855,689	581,483	81.6%	23.4%

 

In thousands of GEL	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
Total operating income	137,397	111,373	65,053	111.2%	23.4%	413,896	207,780	99.2%
Net profit	36,513	31,595	20,433	78.7%	15.6%	110,324	59,329	86.0%
ROE	27.7%	28.2%	29.7%	-2.0 pp	-0.5 pp	26.9%	26.0%	0.9 pp

 

 

Letter from the Chief Executive Officer^[2]

 

I am delighted to report that TBC achieved another set of strong results in the fourth quarter of 2024, rounding off an excellent year. In 4Q 2024, net profit reached GEL 335 million[3], up 15% year-on-year, with 24.1% ROE[4]. For the full year 2024, our net profit amounted to a record GEL 1,308 million³, up by 15% year-on-year, with 25.6% ROE⁴. This marks our third consecutive year of 25%+ ROE and means that we have posted above 20% ROE for nine of the past 10 years (with the Covid-impacted 2020 the only exception), which is testament to our consistent and strong delivery for shareholders over the long-term.

 

Among the highlights for 2024, I would like to point to the excellent achievements of our digital banking ecosystem in Uzbekistan. Over the past year, TBC Uzbekistan has scaled up, with its total users increasing by 37% to over 18 million and its loan book more than doubling. The foundations for future growth have been laid through investments in key infrastructure, AI initiatives, world-class talent and a suite of new core products. These include Salom Card, our flagship daily banking product, Osmon Card, our first revolving credit card, and TBC Business, Uzbekistan's first fully digital SME banking service. Finally, in January 2025, we launched Payme Plus, a monthly subscription service delivered through Payme, offering a bundle of value-added financial and lifestyle products. Many of the pieces are now in place for TBC Uzbekistan to contribute greatly both to the further development of the Uzbekistan banking sector and to our Group overall.

 

Final dividend of GEL 5.55 per share declared, FY 2024 DPS up 12% YoY

In light of our strong results, I am delighted to announce that the Board has recommended a final dividend per share of GEL 5.55 (subject to AGM approval), which brings the full year dividend per share to GEL 8.10, an increase of 12% year-on-year. Together with a GEL 50 million buyback, this brings total capital returns to shareholders for 2024 to GEL 499 million, or 39% of net profit (2023: 35%). The combination of excellent and consistent profitability, dynamic digital growth in Uzbekistan and high capital returns to shareholders that I have outlined, highlights the unique strength of the TBC Group.      

Operating income up 23% YoY in 4Q 2024

Turning to the final quarter in more detail, in 4Q 2024, our total operating income reached a record high level of GEL 784 million, up by 23% year-on-year. The growth was driven by a 15% year-on-year increase in net interest income, along with an excellent contribution from net fee and commission income, which rose by 34% year-on-year, driven by our payments business in Georgia and excellent growth in Uzbekistan.

Robust growth momentum in Georgia alongside fast-paced expansion in Uzbekistan

In 4Q 2024, our Georgian financial services continued to perform well, with net profit increasing by 13% year-on-year and ROE standing at 24.6%. For the full year 2024, our loan book increased by 14.2% year-on-year and deposits grew by 8.1%, both on a constant currency basis. At the same time, our capital position in Georgia remains very solid, with CET1, Tier 1, and Total Capital ratios standing at 16.8%, 20.4%, and 23.8%, respectively, well above the minimum regulatory requirements.

During 4Q 2024, our digital banking ecosystem in Uzbekistan maintained its fast-paced and profitable expansion. For the full year 2024, our loan book more than doubled to GEL 1.8 billion (USD 626 million), capturing 16.4% share of the unsecured consumer loan market^[5] and accounting for half of the Group's unsecured consumer loans. On the funding side, we successfully diversified our funding mix, with 82% year-on-year growth in retail deposits complemented by USD 105 million of new wholesale funding, as well as our debut local currency bond issuance, and USD 75 million capital injections by shareholders. In 4Q 2024, TBC Uzbekistan's operating income increased by 111% year-on-year, reaching GEL 137 million (USD 50 million). Over the same period, its net profit increased by 79% and amounted to GEL 37 million (USD 13 million), while ROE stood at an excellent 27.7%. As a result, TBC Uzbekistan contributed 18% to the Group's total operating income and accounted for 11% of its net profit. 

Our customer base continues to grow, with digital monthly active users ("MAU") hitting 7.0 million at the Group level, up by 1.8 million or 34% year-on-year. We are also encouraged to see that more than one third of our users are active across our digital platforms on a daily basis.

 

2025 strategic targets well on track

As a team, we achieved a great deal in 2024, but as always there remains much to do, and we look forward to 2025 being another year of further scaling up our business in Uzbekistan and continuing to deliver strong and profitable growth in Georgia. I am confident we are fully on track to meet the mid-term targets we have set for 2025.

 

Vakhtang Butskhrikidze

CEO, TBC Bank Group PLC

Economic overview

Georgia

Economic growth remains resilient

Georgia's real GDP increased by 8.4% year-on-year in the fourth quarter of 2024, bringing full-year 2024 growth to a robust 9.5%. This follows impressive growth rates of 7.8% in 2023 and 9.8% in the first nine months of 2024. Consumption, tourism, and strong real credit growth contributed the most to this year's performance, whilst foreign direct investments (FDI) declined and growth in remittances and migration-related inflows moderated slightly.

Estimated net inflows into Georgia declined Q-o-Q in the fourth quarter, primarily due to increased imports. Total goods exports denominated in U.S. dollars rose by 19.3% year-on -year in the fourth quarter with domestic exports surging by 26.4%, while full year exports increased by 7.8%. Imports grew by 16.2% year-on-year in the fourth quarter and 8.1% in the full 2024. FDI fell in the third quarter, decreasing by 55.2% year-on-year due to a fall in equity investments, while reinvested FDI remained a substantial portion of this inflow during the first nine months of the year. At the same time, as of 3Q 2024, the underlying current account deficit, when measured without reinvestments, remained close to historical lows at -0.3% in seasonally adjusted terms, while the total deficit stood at -0.9%, again adjusted for seasonality.

Fiscal consolidation continues

The government remains committed to fiscal consolidation, aiming to reduce the budget deficit and public debt relative to GDP. The cumulative budget deficit in 2024 stood at 2.3% of GDP.

Credit growth moderates but remains strong

Bank credit growth has moderated slightly with year-on-year growth decreasing from 18.7% in September 2024 to 17.0% in December, at constant exchange rates. Given the low inflation, real credit growth also remained robust at 14.9%. Relative moderation in growth rates was evident in both segments, as retail credit increased by 16.3% year-on-year as of December, while the growth of lending to legal entities stood at 17.8%, compared to 16.7% and 21.3% in September, respectively. The gradual dedollarization of bank lending accelerated in the 4Q due to increased demand for GEL loans, with the share of foreign currency loans declining from 43.4% at the end of September 2024 to 42.7% at the end of December, at constant exchange rates.

GEL impacted by inflows and sentiment

Strong inflows supported GEL stability throughout the year, however, worsened sentiments due to heightened political tensions negatively affected the national currency. Among other drivers, weakening expectations on the market drove deposit conversions to FC, putting pressure on the GEL exchange rate. This prompted the NBG to intervene heavily, selling around USD 917 mln throughout the year from its foreign currency reserves to avoid a significant GEL depreciation, with most of the selling occuring in September and October. However, the NBG switched back to the buying side in November-December, purchasing around USD 153 mln from the market. Meanwhile, the national currency depreciated to 2.8 GEL per USD in the fourth quarter, compared to 2.72 at the end of September and 2.69 at the end of 2023.

Annual CPI inflation remained well below the NBG's 3% target throughout the year and stood at 1.9% as of December 2024, with some acceleration deriving from both the base effect and higher prices in the fourth quarter. Consequently, the NBG decided to maintain the monetary policy rate (MPR) at 8% in the fourth quarter, having cut it from 9.5% in the first half of the year.

Uzbekistan

Continued strong economic performance

Uzbekistan's economic growth moderated only marginally from 6.5% in the third quarter and remained strong at 6.3% year-on-year in the fourth quarter, with full year growth coming out at a robust 6.5%. In terms of external trade, lower gold exports weakened the full-year growth to 2.6%, while exports excluding gold increased by 10.6% YoY. Decreasing vehicle imports also lowered the import of goods, with full-year imports declined by 0.9% in 2024. Retail credit growth continued to slow down in the fourth quarter, driven by cooling growth in both mortgage and non-mortgage loans, though it still remained robust at 19.5% YoY at the end of December, with mortgage credit expanding by 16.4% and non-mortgage credit by 21.4%.

Annual inflation in Uzbekistan stood at 9.8% in December, a slight moderation from 10.5% in September, though still an increase compared to 8.8% at the end of 2023. The CBU has kept its monetary policy rate at 13.5%, with only one 0.5 pp cut over the year. By the end of December 2024, the UZS was valued at 12,920 against USD, thus continuing to depreciate following a brief stabilization mid year. Overall, the UZS only lost around 4.7% of its value against the USD in 2024, compared to 9.9% in 2023.

Economic growth forecasts

The World Bank and IMF project Georgia's economic growth in 2025 at 6.0%, while Fitch expects 5.3%. The respective real GDP growth forecasts for Uzbekistan by the World Bank, IMF and ADB stand at 5.8%, 5.7% and 6.2%. As for TBC Capital projections for 2025, in the case of Georgia, our expectation is now moderately lower than our previous estimate of around 5.5%, while our forecast for Uzbekistan is in line with the above estimates.

More information on the Georgian economy and financial sector can be found at www.tbccapital.ge.

Unaudited consolidated financial results overview for 4Q 2024

This statement provides a summary of the business and financial trends for 4Q 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	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ
Interest income	1,017,423	958,194	810,428	25.5%	6.2%
Interest expense	(509,732)	(465,633)	(368,693)	38.3%	9.5%
Net interest income	507,691	492,561	441,735	14.9%	3.1%
Fee and commission income	243,328	218,596	192,341	26.5%	11.3%
Fee and commission expense	(95,400)	(73,799)	(82,242)	16.0%	29.3%
Net fee and commission income	147,928	144,797	110,099	34.4%	2.2%
Net insurance income	6,979	11,389	9,090	-23.2%	-38.7%
Net gains from currency derivatives, foreign currency operations and translation	111,069	101,326	68,228	62.8%	9.6%
Other operating income	9,807	3,295	10,380	-5.5%	NMF
Share of profit of associates	183	286	(256)	NMF	-36.0%
Other operating non-interest income	128,038	116,296	87,442	46.4%	10.1%
Credit loss allowance for loans to customers	(58,078)	(47,223)	(40,640)	42.9%	23.0%
Credit loss allowance for other financial items and net impairment for non-financial assets	(16,712)	(8,052)	(6,839)	NMF	NMF
Operating income after expected credit losses	708,867	698,379	591,797	19.8%	1.5%
Staff costs	(158,988)	(149,257)	(139,766)	13.8%	6.5%
Depreciation and amortisation	(38,079)	(37,488)	(28,741)	32.5%	1.6%
Administrative and other operating expenses	(109,553)	(93,463)	(85,993)	27.4%	17.2%
Operating expenses	(306,620)	(280,208)	(254,500)	20.5%	9.4%
Non-recurring impairment loss due to write-down of the asset held for sale	(9,800)	-	-	NMF	NMF
Net profit before tax	392,447	418,171	337,297	16.4%	-6.2%
Income tax expense	(57,848)	(70,908)	(45,856)	26.2%	-18.4%
Net profit	334,599	347,263	291,441	14.8%	-3.6%
Adjusted net profit*	344,399	347,263	291,441	18.2%	-0.8%
Net profit attributable to:
- Shareholders of TBCG	326,758	339,893	287,699	13.6%	-3.9%
- Non-controlling interest	7,841	7,370	3,742	NMF	6.4%
Other comprehensive income, net of tax:
Other comprehensive income/(expense) for the period	3,533	48,410	(607)	NMF	-92.7%
Total comprehensive income for the period	338,132	395,673	290,834	16.3%	-14.5%

* Excludes GEL 9.8 million non-recurring impairment loss due to write-down of the asset held for sale (TBC Kredit, our wholly owned subsidiary in Azerbaijan)

 

Consolidated balance sheet

In thousands of GEL	Dec'24	Sep'24	Change QoQ
ASSETS
Cash and cash equivalents	3,047,401	5,108,157	-40.3%
Due from other banks	45,498	23,347	94.9%
Mandatory cash balances with the NBG and the CBU	2,576,731	1,991,538	29.4%
Loans and advances to customers	25,683,798	24,393,183	5.3%
Investment securities	5,538,476	3,597,125	54.0%
Repurchase receivables	140,058	-	NMF
Finance lease receivables	612,320	521,782	17.4%
Investment properties	9,752	14,235	-31.5%
Current income tax prepayment	60,422	84,140	-28.2%
Deferred income tax asset	3,150	920	NMF
Other financial assets	436,574	296,002	47.5%
Other assets	1,357,255	1,326,855	2.3%
Intangible assets	589,067	555,078	6.1%
Goodwill	59,964	59,964	0.0%
TOTAL ASSETS	40,160,466	37,972,326	5.8%
LIABILITIES
Due to credit institutions	7,630,850	5,922,371	28.8%
Customer accounts	22,863,833	22,548,107	1.4%
Other financial liabilities	476,143	577,196	-17.5%
Current income tax liability	1,227	27,727	-95.6%
Deferred income tax liability	50,220	57,934	-13.3%
Debt Securities in issue*	1,510,183	1,621,985	-6.9%
Other liabilities	267,099	237,480	12.5%
Subordinated debt	1,148,374	1,133,742	1.3%
Redemption liability	473,528	418,012	13.3%
TOTAL LIABILITIES	34,421,457	32,544,554	5.8%
EQUITY
Share capital	1,722	1,713	0.5%
Shares held by trust	(66,982)	(66,982)	0.0%
Share premium	411,088	345,913	18.8%
Retained earnings	5,286,738	4,995,298	5.8%
Other reserves	(77,066)	(42,996)	79.2%
Equity attributable to owners of the parent	5,555,500	5,232,946	6.2%
Non-controlling interest	183,509	194,826	-5.8%
TOTAL EQUITY	5,739,009	5,427,772	5.7%
TOTAL LIABILITIES AND EQUITY	40,160,466	37,972,326	5.8%

* Debt securities in issue includes Additional Tier 1 capital subordinated notes

Ratios

Ratios (based on monthly averages, where applicable)	4Q'24	3Q'24	4Q'23
Profitability ratios:
ROE1	24.1%	26.6%	25.2%
Adjusted ROE*	24.8%	26.6%	25.2%
ROA2	3.3%	3.7%	3.7%
Cost to income3	39.1%	37.2%	39.8%
NIM4	6.7%	6.4%	6.7%
Loan yields5	13.5%	13.2%	12.9%
Deposit rates6	5.4%	5.4%	5.1%
Cost of funding7	6.3%	6.1%	5.7%
Asset quality & portfolio concentration:
Cost of risk9	1.0%	0.8%	0.7%
PAR 90 to gross loans9	1.4%	1.5%	1.2%
NPLs to gross loans10	2.2%	2.2%	2.0%
NPL provision coverage11	71.8%	72.3%	79.6%
Total NPL coverage12	143.9%	141.6%	147.7%
Credit loss level to gross loans13	1.6%	1.6%	1.6%
Related party loans to gross loans14	0.1%	0.1%	0.1%
Top 10 borrowers to total portfolio15	5.8%	5.8%	6.0%
Top 20 borrowers to total portfolio16	8.5%	8.5%	9.0%
Capital & liquidity positions:
Net loans to deposits plus IFI funding17	102.2%	99.7%	97.9%
Leverage (x)18	7.0x	7.0x	6.8x
Georgia
Net stable funding ratio19	123.9%	123.1%	119.9%
Liquidity coverage ratio20	125.5%	121.1%	115.3%
CET 1 CAR21	16.8%	16.6%	17.4%
Tier 1 CAR22	20.4%	20.4%	19.6%
Total 1 CAR23	23.8%	23.9%	22.1%
Uzbekistan
CET 1 CAR24	21.9%	16.4%	15.4%
Tier 1 CAR25	21.9%	16.4%	15.4%
Total 1 CAR26	23.2%	19.6%	16.3%

* Excludes GEL 9.8 million non-recurring impairment loss due to write-down of the asset held for sale (TBC Kredit, our wholly owned subsidiary in Azerbaijan)

Funding and liquidity in Georgia

Total liquidity coverage ratio (LCR) increased by 4.4pp on QoQ basis, mainly driven by the increase in local currency LCR caused by additional funds received from the financial institutions. The effect was partially offset by increased loan portfolio growth in foreign currency (FC).

	Dec'24	Sep'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	123.9%	123.1%	0.8 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	125.5%	121.1%	4.4 pp
LCR in GEL, as defined by the NBG	127.7%	85.9%	41.8 pp
LCR in FC, as defined by the NBG	124.7%	141.3%	-16.6 pp

Regulatory capital

Georgia

In thousands of GEL	Dec'24	Sep'24	Change QoQ
CET 1 capital	4,843,167	4,540,404	6.7%
Tier 1 capital	5,895,717	5,564,042	6.0%
Total capital	6,861,963	6,533,759	5.0%
Total risk-weighted assets	28,842,828	27,314,351	5.6%
Minimum CET 1 ratio	14.4%	14.5%	-0.1 pp
CET 1 capital adequacy ratio	16.8%	16.6%	0.2 pp
Minimum Tier 1 ratio	16.7%	16.8%	-0.1 pp
Tier 1 capital adequacy ratio	20.4%	20.4%	0.0 pp
Minimum total capital adequacy ratio	19.7%	19.8%	-0.1 pp
Total capital adequacy ratio	23.8%	23.9%	-0.1 pp

 

Uzbekistan

 

The QoQ increase in TBC UZ's capital adequacy ratios was mainly driven by a capital injection in December 2024 (in the amount of USD 36.8 million) which makes a total of USD 75.0 million during 2024.

 

	Dec'24	Sep'24	Change QoQ
Minimum CET 1 ratio	8.0%	8.0%	0.0 pp
CET 1 capital adequacy ratio	21.9%	16.4%	5.5 pp
Minimum Tier 1 ratio	10.0%	10.0%	0.0 pp
Tier 1 capital adequacy ratio	21.9%	16.4%	5.5 pp
Minimum total capital adequacy ratio	13.0%	13.0%	0.0 pp
Total capital adequacy ratio	23.2%	19.6%	3.6 pp

Loan portfolio

As of 31 December 2024, the gross loan portfolio reached GEL 26,721.7 million, up by 5.6% QoQ, or up by 5.3% QoQ on a constant currency basis.

By the end of December 2024, our Georgia FS loan portfolio increased by 4.3% on a QoQ basis and reached GEL 24,941.5 million, with 4.1% QoQ growth on a constant currency basis. Over the same period, our Uzbekistan portfolio increased by 28.0% QoQ or 26.1% on a constant currency basis.

In thousands of GEL Gross loans and advances to customers	Dec'24	Sep'24	Change QoQ
Georgian financial services (Georgia FS)*	24,941,464	23,915,282	4.3%
Retail Georgia	8,710,516	8,391,309	3.8%
CIB Georgia	9,863,777	9,243,424	6.7%
MSME Georgia	5,943,479	5,882,230	1.0%
Uzbekistan	1,758,028	1,373,506	28.0%
Total gross loans and advances to customers**	26,721,683	25,315,760	5.6%

Gross loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

* Georgia FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan

	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ
Loan yields	13.5%	13.2%	12.9%	0.6 pp	0.3 pp
GEL	14.1%	14.0%	14.6%	-0.5 pp	0.1 pp
FC	8.6%	9.0%	9.1%	-0.5 pp	-0.4 pp
UZS	44.6%	44.4%	41.7%	2.9 pp	0.2 pp
Georgia FS	11.5%	11.5%	11.9%	-0.4 pp	0.0 pp
GEL	14.1%	14.0%	14.6%	-0.5 pp	0.1 pp
FC	8.6%	8.9%	9.1%	-0.5 pp	-0.3 pp
Uzbekistan	44.6%	44.4%	41.7%	2.9 pp	0.2 pp
UZS	44.6%	44.4%	41.7%	2.9 pp	0.2 pp
Total loan yields*	13.5%	13.2%	12.9%	0.6 pp	0.3 pp

Loan yields include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

* Total loan yields include Azerbaijan

Loan portfolio quality

PAR 90	Dec'24	Sep'24	Change QoQ
Georgia FS*	1.4%	1.4%	0.0 pp
Retail Georgia	0.7%	0.8%	-0.1 pp
CIB Georgia	0.9%	1.0%	-0.1 pp
MSME Georgia	2.9%	2.7%	0.2 pp
Uzbekistan	2.0%	2.7%	-0.7 pp
Total PAR 90**	1.4%	1.5%	-0.1 pp

PAR 90 include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

* Georgia FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan

In thousands of GEL Non-performing loans (NPL)	Dec'24	Sep'24	Change QoQ
Georgia FS*	554,935	514,964	7.8%
Retail Georgia	118,834	111,411	6.7%
CIB Georgia	156,632	161,856	-3.2%
MSME Georgia	263,460	222,899	18.2%
Uzbekistan	35,690	37,721	-5.4%
Total non-performing loans**	592,554	554,148	6.9%

Non-performing loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan

NPL to gross loans	Dec'24	Sep'24	Change QoQ
Georgia FS*	2.2%	2.2%	0.0 pp
Retail Georgia	1.4%	1.3%	0.1 pp
CIB Georgia	1.6%	1.8%	-0.2 pp
MSME Georgia	4.4%	3.8%	0.6 pp
Uzbekistan	2.0%	2.7%	-0.7 pp
Total NPL to gross loans**	2.2%	2.2%	0.0 pp

Non-performing loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan

	Dec'24		Sep'24
NPL coverage	Provision coverage	Total coverage	Provision coverage	Total coverage
Georgia FS*	61.0%	138.0%	63.7%	138.0%
Retail Georgia	138.1%	201.1%	144.3%	206.0%
CIB Georgia	34.4%	106.0%	32.2%	105.8%
MSME Georgia	42.2%	126.3%	47.9%	127.0%
Uzbekistan	229.5%	229.5%	181.5%	181.5%
Total NPL coverage**	71.8%	143.9%	72.3%	141.6%

Non-performing loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total NPL coverage includes Azerbaijan

Cost of risk (CoR)	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ
Georgia FS*	0.6%	0.5%	0.6%	0.0 pp	0.1 pp
Retail Georgia	1.0%	1.1%	0.1%	0.9 pp	-0.1 pp
CIB Georgia	0.1%	0.1%	0.3%	-0.2 pp	0.0 pp
MSME Georgia	0.6%	0.3%	1.8%	-1.2 pp	0.3 pp
Uzbekistan	7.7%	5.8%	5.0%	2.7 pp	1.9 pp
Total cost of risk**	1.0%	0.8%	0.7%	0.3 pp	0.2 pp

Cost of risk include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan

Deposit portfolio

As of 31 December 2024, the deposit portfolio reached GEL 22,863.8 million, up by 1.4% QoQ, or up by 0.5% QoQ on a constant currency basis.

By the end of December 2024, our Georgia FS deposit portfolio remained the same on QoQ basis and reached GEL 21,890.5 million, with decrease of 0.8% QoQ on a constant currency basis. Meanwhile, our Uzbekistan deposit portfolio increased by 23.4% QoQ, or up by 21.5% on a constant currency basis.

In thousands of GEL Customer accounts	Dec'24	Sep'24	Change QoQ
Georgia FS*	21,890,518	21,892,684	0.0%
Retail Georgia	8,478,788	8,102,782	4.6%
CIB Georgia	11,308,306	11,211,555	0.9%
MSME Georgia	2,043,554	1,998,253	2.3%
MOF	214,426	711,745	-69.9%
Uzbekistan	1,055,758	855,689	23.4%
Total customer accounts**	22,863,833	22,548,107	1.4%

*Georgia FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations

	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ
Deposit rates	5.4%	5.4%	5.1%	0.3 pp	0.0 pp
GEL	7.7%	7.7%	8.1%	-0.4 pp	0.0 pp
FC	1.6%	1.4%	1.1%	0.5 pp	0.2 pp
UZS	25.1%	24.7%	25.0%	0.1 pp	0.4 pp
Georgia FS	4.6%	4.7%	4.5%	0.1 pp	-0.1 pp
GEL	7.7%	7.7%	8.1%	-0.4 pp	0.0 pp
FC	1.6%	1.4%	1.1%	0.5 pp	0.2 pp
Uzbekistan	24.9%	24.6%	24.9%	0.0 pp	0.3 pp
UZS	25.1%	24.7%	25.0%	0.1 pp	0.4 pp
FC	3.8%	4.7%	3.8%	0.0 pp	-0.9 pp
Total deposit rates*	5.4%	5.4%	5.1%	0.3 pp	0.0 pp

* Total deposits rates include MOF deposits

Preliminary unaudited consolidated financial results overview for FY 2024

This statement provides a summary of the business and financial trends for FY 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	FY'24	FY'23	Change YoY
Interest income	3,694,520	2,948,056	25.3%
Interest expense	(1,793,313)	(1,312,258)	36.7%
Net interest income	1,901,207	1,635,798	16.2%
Fee and commission income	842,286	676,350	24.5%
Fee and commission expense	(321,860)	(264,025)	21.9%
Net fee and commission income	520,426	412,325	26.2%
Net insurance income	35,271	31,290	12.7%
Net gains from currency derivatives, foreign currency operations and translation	359,511	256,924	39.9%
Other operating income	16,733	36,506	-54.2%
Share of profit of associates	574	657	-12.6%
Other operating non-interest income	412,089	325,377	26.6%
Credit loss allowance for loans to customers	(176,866)	(162,659)	8.7%
Credit loss allowance for other financial items and net impairment for non-financial assets	(29,895)	(18,081)	NMF
Operating income after expected credit and non-financial asset impairment losses	2,626,961	2,192,760	19.8%
Staff costs	(570,461)	(472,972)	20.6%
Depreciation and amortisation	(145,289)	(115,975)	25.3%
Administrative and other operating expenses	(357,326)	(269,980)	32.4%
Operating expenses	(1,073,076)	(858,927)	24.9%
Non-recurring impairment loss due to write-down of the asset held for sale	(9,800)	-	NMF
Net profit before tax	1,544,085	1,333,833	15.8%
Income tax expense	(236,454)	(193,858)	22.0%
Net profit	1,307,631	1,139,975	14.7%
Adjusted net profit*	1,317,431	1,139,975	15.6%
Net profit attributable to:
- Shareholders of TBCG	1,284,051	1,124,180	14.2%
- Non-controlling interest	23,580	15,795	49.3%
Other comprehensive income, net of tax:
Other comprehensive income/(expense) for the period	17,779	(2,121)	NMF
Total comprehensive income for the period	1,325,410	1,137,854	16.5%

* Excludes GEL 9.8 million non-recurring impairment loss due to write-down of the asset held for sale (TBC Kredit, our wholly owned subsidiary in Azerbaijan)

 

Consolidated balance sheet

In thousands of GEL	Dec'24	Dec'23	Change YoY
ASSETS
Cash and cash equivalents	3,047,401	3,764,087	-19.0%
Due from other banks	45,498	47,941	-5.1%
Mandatory cash balances with NBG and the CBU	2,576,731	1,577,074	63.4%
Loans and advances to customers	25,683,798	21,722,107	18.2%
Investment securities	5,538,476	3,549,424	56.0%
Repurchase receivables	140,058	-	NMF
Finance lease receivables	612,320	400,411	52.9%
Investment properties	9,752	15,235	-36.0%
Current income tax prepayment	60,422	435	NMF
Deferred income tax asset	3,150	7,400	-57.4%
Other financial assets	436,574	280,268	55.8%
Other assets	1,357,255	1,069,098	27.0%
Intangible assets	589,067	471,383	25.0%
Goodwill	59,964	59,964	0.0%
TOTAL ASSETS	40,160,466	32,964,827	21.8%
LIABILITIES
Due to credit institutions	7,630,850	4,395,182	73.6%
Customer accounts	22,863,833	20,375,498	12.2%
Other financial liabilities	476,143	358,522	32.8%
Current income tax liability	1,227	67,945	-98.2%
Deferred income tax liability	50,220	50,957	-1.4%
Debt Securities in issue*	1,510,183	1,426,174	5.9%
Other liabilities	267,099	236,157	13.1%
Subordinated debt	1,148,374	868,730	32.2%
Redemption liability	473,528	365,480	29.6%
TOTAL LIABILITIES	34,421,457	28,144,645	5.8%
EQUITY
Share capital	1,722	1,690	1.9%
Shares held by trust	(66,982)	(75,609)	-11.4%
Share premium	411,088	295,605	39.1%
Retained earnings	5,286,738	4,433,496	19.2%
Other reserves	(77,066)	28,547	NMF
Equity attributable to owners of the parent	5,555,500	4,683,729	18.6%
Non-controlling interest	183,509	136,453	34.5%
TOTAL EQUITY	5,739,009	4,820,182	19.1%
TOTAL LIABILITIES AND EQUITY	40,160,466	32,964,827	21.8%

* Debt securities in issue includes Additional tier 1 capital subordinated notes

 

Ratios

Ratios (based on monthly averages, where applicable)	FY'24	FY'23
Profitability ratios:
ROE1	25.6%	26.5%
Adjusted ROE*	25.8%	26.5%
ROA2	3.6%	3.9%
Cost to income3	37.9%	36.2%
NIM4	6.7%	6.7%
Loan yields5	13.1%	12.9%
Deposit rates6	5.4%	5.0%
Cost of funding7	6.1%	5.6%
Asset quality & portfolio concentration:
Cost of risk9	0.8%	0.8%
PAR 90 to gross loans9	1.4%	1.2%
NPLs to gross loans10	2.2%	2.0%
NPL provision coverage11	71.8%	79.6%
Total NPL coverage12	143.9%	147.7%
Credit loss level to gross loans13	1.6%	1.6%
Related party loans to gross loans14	0.1%	0.1%
Top 10 borrowers to total portfolio15	5.8%	6.0%
Top 20 borrowers to total portfolio16	8.5%	9.0%
Capital & liquidity positions:
Net loans to deposits plus IFI funding17	102.2%	97.9%
Leverage (x)18	7.0x	6.8x
Georgia
Net stable funding ratio19	123.9%	119.9%
Liquidity coverage ratio20	125.5%	115.3%
CET 1 CAR21	16.8%	17.4%
Tier 1 CAR22	20.4%	19.6%
Total 1 CAR23	23.8%	22.1%
Uzbekistan
CET 1 CAR24	21.9%	15.4%
Tier 1 CAR25	21.9%	15.4%
Total 1 CAR26	23.2%	16.3%

* Excludes GEL 9.8 million non-recurring impairment loss due to write-down of the asset held for sale (TBC Kredit, our wholly owned subsidiary in Azerbaijan)

 

Funding and liquidity in Georgia

	Dec'24	Dec'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	123.9%	119.9%	4.0 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	125.5%	115.3%	10.2 pp
LCR in GEL, as defined by the NBG	127.7%	109.8%	17.9 pp
LCR in FC, as defined by the NBG	124.7%	120.1%	4.6 pp

Regulatory capital
The YoY increase in Tier 1 and total capital 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. The increase in CET 1 capital was due to profit generation, which was partially offset by dividend distribution during 2024.

Georgia

In thousands of GEL	Dec'24	Dec'23	Change YoY
CET 1 capital	4,843,167	4,235,033	14.4%
Tier 1 capital	5,895,717	4,772,913	23.5%
Total capital	6,861,963	5,374,301	27.7%
Total risk-weighted assets	28,842,828	24,336,690	18.5%
Minimum CET 1 ratio	14.4%	14.3%	0.1 pp
CET 1 capital adequacy ratio	16.8%	17.4%	-0.6 pp
Minimum Tier 1 ratio	16.7%	16.6%	0.1 pp
Tier 1 capital adequacy ratio	20.4%	19.6%	0.8 pp
Minimum total capital adequacy ratio	19.7%	19.8%	-0.1 pp
Total capital adequacy ratio	23.8%	22.1%	1.7 pp

 

Uzbekistan

The YoY increase of capital adequacy ratios was driven by capital injections and the revised payment-to-income (PTI) based methodology for calculating RWAs, adopted by CBU starting from 1^st of July 2024.

 

	Dec'24	Dec'23	Change YoY
Minimum CET 1 ratio	8.0%	8.0%	0.0 pp
CET 1 capital adequacy ratio	21.9%	15.4%	6.5 pp
Minimum Tier 1 ratio	10.0%	10.0%	0.0 pp
Tier 1 capital adequacy ratio	21.9%	15.4%	6.5 pp
Minimum total capital adequacy ratio	13.0%	13.0%	0.0 pp
Total capital adequacy ratio	23.2%	16.3%	6.9 pp

Loan portfolio

As of 31 December 2024, the gross loan portfolio reached GEL 26,721.7 million, up by 18.8% YoY, or up by 17.7% YoY on a constant currency basis.

By the end of 2024, our Georgia FS loan portfolio increased by 15.3% on a YoY and reached GEL 24,941.5 million, with 14.2% YoY growth on a constant currency basis. Over the same period, our Uzbekistan loan portfolio increased by 112.1%, or 112.3% on a constant currency basis.

In thousands of GEL Gross loans and advances to customers	Dec'24	Dec'23	Change YoY
Georgian financial services (Georgia FS)*	24,941,464	21,628,695	15.3%
Retail Georgia	8,710,516	7,513,229	15.9%
CIB Georgia	9,863,777	8,283,723	19.1%
MSME Georgia	5,943,479	5,480,822	8.4%
Uzbekistan	1,758,028	828,710	112.1%
Total gross loans and advances to customers**	26,721,683	22,484,958	18.8%

Gross loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan

	FY'24	FY'23	Change YoY
Loan yields	13.1%	12.9%	0.2 pp
GEL	14.0%	15.1%	-1.1 pp
FC	8.9%	8.7%	0.2 pp
UZS	44.1%	42.4%	1.7 pp
Georgia FS	11.5%	12.0%	-0.5 pp
GEL	14.0%	15.1%	-1.1 pp
FC	8.8%	8.7%	0.1 pp
Uzbekistan	44.1%	42.4%	1.7 pp
UZS	44.1%	42.4%	1.7 pp
Total loan yields*	13.1%	12.9%	0.2 pp

Loan yields include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

\* Total loans yields include Azerbaijan

Loan portfolio quality

PAR 90	Dec'24	Dec'23	Change YoY
Georgia FS*	1.4%	1.1%	0.3 pp
Retail Georgia	0.7%	0.8%	-0.1 pp
CIB Georgia	0.9%	0.7%	0.2 pp
MSME Georgia	2.9%	2.2%	0.7 pp
Uzbekistan	2.0%	2.0%	0.0 pp
Total PAR 90**	1.4%	1.2%	0.2 pp

PAR 90 include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan

In thousands of GEL Non-performing loans (NPL)	Dec'24	Dec'23	Change YoY
Georgia FS*	554,935	437,979	26.7%
Retail Georgia	118,834	127,102	-6.5%
CIB Georgia	156,632	114,130	37.2%
MSME Georgia	263,460	183,829	43.3%
Uzbekistan	35,690	16,693	113.8%
Total non-performing loans**	592,554	455,516	30.1%

Non-performing loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan

NPL to gross loans	Dec'24	Dec'23	Change YoY
Georgia FS*	2.2%	2.0%	0.2 pp
Retail Georgia	1.4%	1.7%	-0.3 pp
CIB Georgia	1.6%	1.4%	0.2 pp
MSME Georgia	4.4%	3.4%	1.0 pp
Uzbekistan	2.0%	2.0%	0.0 pp
Total NPL to gross loans**	2.2%	2.0%	0.2 pp

Non-performing loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan

	Dec'24		Dec'23
NPL coverage	Provision coverage	Total coverage	Provision coverage	Total coverage
Georgia FS*	61.0%	138.0%	73.0%	143.7%
Retail Georgia	138.1%	201.1%	120.4%	179.5%
CIB Georgia	34.4%	106.0%	46.9%	110.6%
MSME Georgia	42.2%	126.3%	57.5%	136.0%
Uzbekistan	229.5%	229.5%	212.8%	212.8%
Total NPL coverage**	71.8%	143.9%	79.6%	147.7%

Non-performing loans include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

* Georgia FS includes sub-segment eliminations
** Total NPL coverage includes Azerbaijan

Cost of risk (CoR)	FY'24	FY'23	Change YoY
Georgia FS*	0.5%	0.7%	-0.2 pp
Retail Georgia	0.9%	0.8%	0.1 pp
CIB Georgia	0.1%	0.1%	0.0 pp
MSME Georgia	0.5%	1.4%	-0.9 pp
Uzbekistan	6.3%	6.1%	0.2 pp
Total cost of risk**	0.8%	0.8%	0.0 pp

Cost of risk include finance lease receivables only on Georgia FS, Uzbekistan and Group levels.

*Georgia FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan

Deposit portfolio

As of 31 December 2024, the deposit portfolio reached GEL 22,863.8 million, up by 12.2% YoY, or up by 10.4% YoY on a constant currency basis.

By the end of 2024, our Georgia FS deposit portfolio increased by 10.0% on a YoY and reached GEL 21,890.5 million, with 8.1% YoY growth on a constant currency basis. Over the same period, our Uzbekistan deposit portfolio increased by 81.6% YoY, or 81.7% on a constant currency basis.

In thousands of GEL Customer accounts	Dec'24	Dec'23	Change YoY
Georgia FS*	21,890,518	19,900,342	10.0%
Retail Georgia	8,478,788	7,469,587	13.5%
CIB Georgia	11,308,306	10,200,321	10.9%
MSME Georgia	2,043,554	1,900,459	7.5%
MOF	214,426	515,079	-58.4%
Uzbekistan	1,055,758	581,483	81.6%
Total customer accounts**	22,863,833	20,375,498	12.2%

* Georgia FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations

	FY'24	FY'23	Change YoY
Deposit rates	5.4%	5.0%	0.4 pp
GEL	7.8%	8.3%	-0.5 pp
FC	1.4%	0.9%	0.5 pp
UZS	25.0%	24.9%	0.1 pp
Georgia FS	4.7%	4.5%	0.2 pp
GEL	7.8%	8.4%	-0.6 pp
FC	1.4%	0.9%	0.5 pp
Uzbekistan	24.8%	24.9%	-0.1 pp
UZS	25.0%	24.9%	0.1 pp
FC	3.8%	4.2%	-0.4 pp
Total deposit rates*	5.4%	5.0%	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 (Georgia FS) - 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 (including wholly owned subsidiary in Azerbaijan, TBC Kredit) or non-financial subsidiaries of the Group, and intra-group eliminations.

Georgia FS

Profit and loss statement

In thousands of GEL	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
Interest income	835,493	807,571	726,956	14.9%	3.5%	3,132,568	2,687,756	16.5%
Interest expense	(426,090)	(399,020)	(331,535)	28.5%	6.8%	(1,540,756)	(1,189,267)	29.6%
Net interest income	409,403	408,551	395,421	3.5%	0.2%	1,591,812	1,498,489	6.2%
Fee and commission income	187,390	176,655	160,918	16.5%	6.1%	677,020	571,311	18.5%
Fee and commission expense	(80,737)	(64,217)	(72,030)	12.1%	25.7%	(278,765)	(236,621)	17.8%
Net fee and commission income	106,653	112,438	88,888	20.0%	-5.1%	398,255	334,690	19.0%
Net insurance income	7,153	11,567	8,858	-19.2%	-38.2%	35,986	31,557	14.0%
Net gains from currency derivatives, foreign currency operations and translation	112,642	102,426	71,186	58.2%	10.0%	367,867	273,443	34.5%
Other operating income	9,915	3,098	8,406	18.0%	NMF	16,482	28,684	-42.5%
Share of profit of associates	183	286	(256)	NMF	-36.0%	574	657	-12.6%
Other operating non-interest income	129,893	117,377	88,194	47.3%	10.7%	420,909	334,341	25.9%
Credit loss allowance for loans to customers	(32,984)	(30,275)	(32,107)	2.7%	8.9%	(114,187)	(131,532)	-13.2%
Credit loss allowance for other financial items and net impairment for non-financial assets	(8,564)	(2,039)	(6,453)	32.7%	NMF	(13,985)	(15,598)	-10.3%
Operating income after expected credit and non-financial asset impairment losses	604,401	606,052	533,943	13.2%	-0.3%	2,282,804	2,020,390	13.0%
Staff costs	(123,928)	(114,972)	(115,887)	6.9%	7.8%	(445,995)	(395,003)	12.9%
Depreciation and amortisation	(31,109)	(31,369)	(27,109)	14.8%	-0.8%	(121,756)	(102,479)	18.8%
Administrative and other operating expenses	(66,041)	(57,145)	(59,497)	11.0%	15.6%	(219,948)	(194,999)	12.8%
Operating expenses	(221,078)	(203,486)	(202,493)	9.2%	8.6%	(787,699)	(692,481)	13.8%
Net profit before tax	383,323	402,566	331,450	15.7%	-4.8%	1,495,105	1,327,909	12.6%
Income tax expense	(57,049)	(64,776)	(42,835)	33.2%	-11.9%	(222,695)	(187,968)	18.5%
Net profit	326,274	337,790	288,615	13.0%	-3.4%	1,272,410	1,139,941	11.6%

Balance sheet highlights

In thousands of GEL	31-Dec-24	30-Sep-24	31-Dec-23	Change YoY	Change QoQ
Cash & NBG mandatory reserves	5,398,958	7,021,266	5,260,124	2.6%	-23.1%
Due from other banks	45,471	23,315	47,867	-5.0%	95.0%
Loans and advances to customers	24,173,554	23,182,234	20,945,584	15.4%	4.3%
Investment securities measured at fair value through OCI	5,504,681	3,443,089	3,475,461	58.4%	59.9%
Intangible assets and Goodwill	430,362	415,793	387,673	11.0%	3.5%
Other assets	2,196,623	2,012,795	1,711,679	28.3%	9.1%
TOTAL ASSETS	37,749,649	36,098,492	31,828,388	18.6%	4.6%
Due to credit institutions	7,314,032	5,733,053	4,337,726	68.6%	27.6%
Customer accounts	21,890,518	21,892,684	19,900,342	10.0%	0.0%
Subordinated debt and debt securities in issue	2,319,634	2,458,892	2,126,077	9.1%	-5.7%
Other liabilities	696,607	818,976	653,874	6.5%	-14.9%
TOTAL LIABILITIES	32,220,791	30,903,605	27,018,019	19.3%	4.3%
Equity attributable to shareholders	5,528,606	5,194,653	4,810,172	14.9%	6.4%
Non-controlling interest	252	234	197	27.9%	7.7%
TOTAL EQUITY	5,528,858	5,194,887	4,810,369	14.9%	6.4%
TOTAL LIABILITIES AND EQUITY	37,749,649	36,098,492	31,828,388	18.6%	4.6%

Key ratios

Georgian financial services	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
Profitability ratios:
ROE1	24.6%	26.5%	24.7%	-0.1 pp	-1.9 pp	25.4%	25.5%	-0.1 pp
ROA2	3.6%	3.8%	3.8%	-0.2 pp	-0.2 pp	3.7%	4.0%	-0.3 pp
Cost to income3	34.2%	31.9%	35.4%	-1.2 pp	2.3 pp	32.7%	31.9%	0.8 pp
NIM4	5.7%	5.6%	6.2%	-0.5 pp	0.1 pp	5.8%	6.3%	-0.5 pp
Loan yields5	11.5%	11.5%	11.9%	-0.4 pp	0.0 pp	11.5%	12.0%	-0.5 pp
Deposit rates6	4.6%	4.7%	4.5%	0.1 pp	-0.1 pp	4.7%	4.5%	0.2 pp
Cost of funding7	5.5%	5.4%	5.3%	0.2 pp	0.1 pp	5.4%	5.2%	0.2 pp
Asset quality & portfolio concentration:
Cost of risk8	0.6%	0.5%	0.6%	0.0 pp	0.1 pp	0.5%	0.7%	-0.2 pp
PAR 90 to gross loans9	1.4%	1.4%	1.1%	0.3 pp	0.0 pp	1.4%	1.1%	0.3 pp
NPLs to gross loans10	2.2%	2.2%	2.0%	0.2 pp	0.0 pp	2.2%	2.0%	0.2 pp
NPL provision coverage11	61.0%	63.7%	73.0%	-12.0 pp	-2.7 pp	61.0%	73.0%	-12.0 pp
Total NPL coverage12	138.0%	138.0%	143.7%	-5.7 pp	0.0 pp	138.0%	143.7%	-5.7 pp

For the ratio definitions and exchange rates, please refer to appendix 3.

Uzbekistan

Profit and loss statement

In thousands of GEL	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
Interest income	180,545	148,879	81,460	NMF	21.3%	554,488	253,264	NMF
Interest expense	(82,548)	(65,329)	(37,905)	NMF	26.4%	(251,634)	(120,650)	NMF
Net interest income	97,997	83,550	43,555	NMF	17.3%	302,854	132,614	NMF
Fee and commission income	54,843	38,740	30,768	78.2%	41.6%	156,517	101,241	54.6%
Fee and commission expense	(15,286)	(11,089)	(10,100)	51.3%	37.8%	(45,045)	(27,112)	66.1%
Net fee and commission income	39,557	27,651	20,668	91.4%	43.1%	111,472	74,129	50.4%
Net gains from currency derivatives, foreign currency operations and translation	(214)	169	(330)	-35.2%	NMF	(501)	(191)	NMF
Other operating income	57	3	1,160	-95.1%	NMF	71	1,228	-94.2%
Other operating non-interest income/(expense)	(157)	172	830	NMF	NMF	(430)	1,037	NMF
Credit loss allowance for loans to customers	(24,696)	(16,857)	(8,703)	NMF	46.5%	(67,356)	(32,279)	NMF
Credit loss allowance for other financial items and net impairment for non-financial assets	(6,145)	(2,078)	(810)	NMF	NMF	(9,775)	(2,663)	NMF
Operating income after expected credit and non-financial asset impairment losses	106,556	92,438	55,540	91.9%	15.3%	336,765	172,838	94.8%
Staff costs	(20,423)	(19,510)	(11,215)	82.1%	4.7%	(67,935)	(39,562)	71.7%
Depreciation and amortisation	(4,113)	(3,350)	(2,489)	65.2%	22.8%	(13,375)	(8,974)	49.0%
Administrative and other operating expenses	(40,286)	(31,929)	(18,476)	NMF	26.2%	(127,031)	(59,230)	NMF
Operating expenses	(64,822)	(54,789)	(32,180)	NMF	18.3%	(208,341)	(107,766)	93.3%
Net profit before tax	41,734	37,649	23,360	78.7%	10.9%	128,424	65,072	97.4%
Income tax expense	(5,221)	(6,054)	(2,927)	78.4%	-13.8%	(18,100)	(5,743)	NMF
Net profit	36,513	31,595	20,433	78.7%	15.6%	110,324	59,329	86.0%

Balance sheet highlights

In thousands of GEL	31-Dec-24	30-Sep-24	31-Dec-23	Change YoY	Change QoQ
Cash & CBU mandatory reserves	228,435	86,464	85,739	NMF	NMF
Due from other banks	-	-	1,344	NMF	NMF
Loans and advances to customers	1,496,454	1,192,707	763,575	96.0%	25.5%
Intangible assets and Goodwill	75,075	58,999	33,247	NMF	27.2%
Other assets	469,284	380,050	148,014	NMF	23.5%
TOTAL ASSETS	2,269,248	1,718,220	1,031,919	NMF	32.1%
Due to credit institutions	474,444	303,967	105,293	NMF	56.1%
Customer accounts	1,055,758	855,689	581,483	81.6%	23.4%
Other liabilities	115,455	82,781	36,834	NMF	39.5%
TOTAL LIABILITIES	1,645,657	1,242,437	723,610	NMF	32.5%
Equity attributable to shareholders	623,591	475,783	308,309	NMF	31.1%
TOTAL EQUITY	623,591	475,783	308,309	NMF	31.1%
TOTAL LIABILITIES AND EQUITY	2,269,248	1,718,220	1,031,919	NMF	32.1%

Key ratios

Uzbekistan	4Q'24	3Q'24	4Q'23	Change YoY	Change QoQ	FY'24	FY'23	Change YoY
Profitability ratios:
ROE1	27.7%	28.2%	29.7%	-2.0 pp	-0.5 pp	26.9%	26.0%	0.9 pp
ROA2	7.4%	7.8%	8.7%	-1.3 pp	-0.4 pp	7.2%	7.9%	-0.7 pp
Cost to income3	47.2%	49.2%	49.5%	-2.3 pp	-2.0 pp	50.3%	51.9%	-1.6 pp
NIM4	24.2%	25.0%	22.6%	1.6 pp	-0.8 pp	24.4%	22.4%	2.0 pp
Loan yields5	44.6%	44.4%	41.7%	2.9 pp	0.2 pp	44.1%	42.4%	1.7 pp
Deposit rates6	24.9%	24.6%	24.9%	0.0 pp	0.3 pp	24.8%	24.9%	-0.1 pp
Cost of funding7	23.8%	23.5%	24.0%	-0.2 pp	0.3 pp	23.6%	24.2%	-0.6 pp
Asset quality & portfolio concentration:
Cost of risk8	7.7%	5.8%	5.0%	2.7 pp	1.9 pp	6.3%	6.1%	0.2 pp
PAR 90 to gross loans9	2.0%	2.7%	2.0%	0.0 pp	-0.7 pp	2.0%	2.0%	0.0 pp
NPLs to gross loans10	2.0%	2.7%	2.0%	0.0 pp	-0.7 pp	2.0%	2.0%	0.0 pp
NPL provision coverage11	229.5%	181.5%	212.8%	16.7 pp	48.0 pp	229.5%	212.8%	16.7 pp
Total NPL coverage12	229.5%	181.5%	212.8%	16.7 pp	48.0 pp	229.5%	212.8%	16.7 pp

For the ratio definitions and exchange rates, please refer to appendix 3.

2)   Glossary

Terminology	Definition
ADB	Asian Development Bank
AGM	Annual general meeting
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 (Digital MAU)	The number of retail digital users who logged into our digital channels at least once a month
EPS	Earnings per share
FC	Foreign currency
Gross/net loans	Includes gross/net loans and advances to customers and gross/net finance lease receivables
IMF	International Monetary Fund
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 Uzbekistan business, an individual user who logged into the digital application at least once during the month
NBG	National Bank of Georgia
NMF	No Meaningful Figure

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 gross loans divided by monthly average gross loans; 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; 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 loans 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 loans 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 loans (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 loans for the same period.

14. Related party loans to total loans equals related party loans divided by the gross loans.

15. Top 10 borrowers to total portfolio equals the total loan amount of the top 10 borrowers divided by the gross loans.

16. Top 20 borrowers to total portfolio equals the total loan amount of the top 20 borrowers divided by the gross loans.

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 2.7297 as of 30 September 2024. To calculate the YoY growth without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.6894 as of 31 December 2023. As of 31 December 2024, the USD/GEL exchange rate equalled 2.8068. For P&L items growth calculations without the currency effect, we used the average USD/GEL exchange rate for the following periods: 3Q 2024 of 2.7137 and 4Q 2023 of 2.6943. As of 4Q 2024, the USD/GEL exchange rate equalled 2.7582, FY 2024 of 2.7208, FY 2023 of 2.6280.