18th Aug 2020 10:29
(Alliance News) - TBC Bank Group PLC on Tuesday posted a first-half profit fall and reported a sharp rise in its credit loss provisions.
Pretax profit in the six months to June fell 83% year-on-year to GEL44.9 million, about GBP11.1 million, from GEL265.9 million.
TBC's credit loss allowance surged to GEL259.1 million from GEL66.5 million.
Net interest income was down 1.6% to GEL392.3 million from GEL398.6 million a year earlier.
The lender's operating expenses fell 4.6% year-on-year to GEL202.2 million in the first half, though its cost to income ratio worsened to 37.4% from 38.9%.
Gross loans at the end of June stood at GEL13.64 billion, a 22% rise from GEL11.14 billion a year earlier.
TBC's CET1 ratio, Basel III, improved to 12.7%, from 12.4% in the year prior, though at the end of December, it stood at 14.6%.
"Given the uncertainties associated with the Covid-19 pandemic, our focus in the short-term will be maintaining prudent capital and liquidity positions and, proactively managing asset quality and cost optimization. At the same time, we will concentrate our efforts on supporting existing customers to withstand the negative impacts of Covid-19 rather than the acquisition of new clients," TBC Bank said.
Shares in the company were 1.0% higher at 885.00 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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