14th Nov 2019 09:59
(Alliance News) - Georgia-focused lender TBC Bank Group PLC on Thursday said increases in fee & commission income and other operating income offset a decline in net interest income and resulted in a sharp rise in quarterly profit.
The company said its net profit for the three months to September 30 jumped 18% to GEL126.8 million, around GBP33.4 million, from GEL107.4 million in the comparative year-ago period. Pretax profit rose 13% to GEL142.3 million.
Third quarter net interest income fell 6.7% to GEL186.2 million, while fee & commission income surged 20% to GEL47.1 million. Other operating non-interest income increased 19% to GEL46.4 million.
Year-to-date, the company saw 24% rise in net profit GEL380.3 million, while pretax profit increased 12% to GEL408.2 million.
Net interest income for the nine months to September-end increased 2% to GEL573.7 million, while fee & commission income surged 17% to GEL132.4 million. Other operating non-interest income jumped 19% to GEL117.9 million.
The decline in net interest income was primarily due to the pre-payment fee of a subordinated loan, excess liquidity and decreasing yields related to the continued effect of new regulations, TBC said.
Net interest margin for the third quarter fell to 5.0% from 6.9%. Year-to-date margin fell 1.5 percentage point to 5.5%.
TBC's gross loans and advances stood at GEL11.68 billion as at September 30, up 21% year-on-year. Customer deposits increased 13% to GEL9.89 billion.
At September 30, the bank's Basel III CET 1, Tier 1 and capital adequacy ratios stood at 11.9%, 14.7% and 19.4% respectively, while minimum requirements amounted to 9.8%, 11.9% and 16.7% respectively.
TBC has reiterated its medium-term target of return on equity of above 20%, cost to income ratio below 35%, dividend payout ratio of 25% to 35% and loan book growth of 10% to 15%. In the third quarter, the company's return on equity fell to 20.4% from 21.2% and cost to income ratio increased to 39.9% from 37.4%.
TBC shares in London were down 3.7% at 1,340.00 pence each on Thursday morning.
By Tapan Panchal; [email protected]
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