20th Feb 2020 09:53
(Alliance News) - TBC Bank Group PLC on Thursday reported a double-digit rise in annual profit as the bank's loan book saw strong growth from a sharp rise in Corporate lending.
For 2019, the Georgian bank recorded GEL585.5 million in pretax profit, about GBP160.6 million, which is 15% higher compared to GEL510.2 million in 2018.
TBC's net interest income rose 3.0% in 2019 to GEL801.5 million from GEL778.0 million the year before.
The lender's operating expenses rose 9.7% in 2019 to GEL450.7 million from GEL411.0 million in 2018, and, as a result, its cost-to-income ratio worsened to 39.9% from 37.8%.
TBC ended 2019 with a gross loan book of GEL12.66 billion, which is 22% higher than the GEL10.37 billion seen at the end of 2018. Net interest margin, however, slipped to 5.6% from 6.9%.
TBC's Retail loan book was up 7.5% year on year. The Corporate loan book grew 47%, while its Micro, Small, & Medium Enterprises loan book was up 18%.
Customer deposits totalled GEL10.05 billion, up 7.5% from the same point the year before at GEL9.35 billion.
At December 31, TBC's CET1 ratio, Basel III, stood at 14.6%, up from 12.8% the year before. The improvement came as the non-performing loans-to-gross loans ratio improved to 2.7% from 3.1% the year before.
Overall, non-performing loans were down 2.7% year on year
Chief Executive Vakhtang Butskhrikidze said: "In 2019, we recorded strong financial results and made significant progress against our strategic priorities, including the development of customer focused ecosystems and international expansion in Uzbekistan.
"This lays a solid foundation for further development of these initiatives and I am very excited about our ambitious plans for 2020. Our leading digital capabilities, outstanding customer experience and advanced data analytical capabilities, coupled with our strong team spirit, make me confident that we are well positioned to achieve sustainable growth and to deliver superior results to our shareholders."
TBC reiterated its medium-term targets of a return on equity above 20%, cost-to-income below 35%, and loan book growth of about 10% to 15%.
Shares in TBC Bank were 5.0% higher in London on Thursday morning at 1,376.00 pence each.
By Paul McGowan; [email protected]
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