18th Aug 2021 09:36
(Alliance News) - TBC Bank Group PLC on Wednesday reported record high profit in the first half of the year, as foreign exchange transactions increased and the bank focused on asset quality.
The Tbilisi, Georgia-based bank booked pretax profit of GEL460.9 million, about GBP107.5 million, for the six months ended June 30, multiplied from GEL44.9 million a year prior.
Its second quarter pretax profit doubled to GEL290.8 million from GEL138.9 million year-on-year. In the first quarter, it was GEL170.1 million.
Net interest income in the first half was GEL467.9 million, up 19% from GEL392.3 million in the same period last year.
Second quarter net interest income was GEL242.8 million, up 32% year-on-year and 7.8% from the first quarter.
The bank's common equity tier one ratio on June 30 was 13% compared to 10% a year before.
In the six months, TBC disposed of an investment property for GEL26.3 million and benefited from increased foreign exchange transactions.
The bank cited "exceptional performance in exports, the continued strong flow of remittances and a gradual recovery in tourism, record-low interest rates on US dollar deposits stimulated consumer spending and real estate investments" as drivers in its profit hike.
It also reported its Uzbek business has performed ahead of expectations, prompting plans for expansion.
TBC declared an interim dividend of GEL1.5 per share and guided for a payout ratio of 25% to 35% earnings.
"The Georgian economy has rebounded at a speed that exceeded even the most optimistic expectations," said Chief Executive Vakhtang Butskhrikidze.
"​​Bank credit displayed a solid rebound in the second quarter with 12.6% year-on-year growth in FX adjusted terms, which is also strongly supportive to the outlook. While Covid-19 and election related uncertainties pose downside risks to the outlook, real GDP growth for the year is likely to be above 10.0%, even under conservative assumptions."
Shares in TBC were up 0.2% at 1,342.00 pence in London on Wednesday.
By Josie O'Brien; [email protected]
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