12th Aug 2022 08:55
(Alliance News) - TBC Bank Group PLC on Friday reported a strong rise in income in the second quarter, as the bank's expanded loan book benefited from improved interest margins.
Shares in the Tbilisi, Georgia-headquartered lender were 2.9% higher in London on Friday morning at 1,590.40 pence each.
"After our remarkable financial results in the first quarter of 2022, we continued to deliver a strong performance in the second quarter as well," Chief Executive Vakhtang Butskhrikidze said.
In the three months to June 30, the bank reported pretax profit of GEL262.6 million, about USD97.2 million, falling from GEL290.8 million the year prior.
Keeping a lid on TBC's quarterly profit was a jump in credit loss allowances, which rose to GEL37.9 million from GEL13.7 million.
Operating income rose 22% to GEL464.1 million from GEL380.3 million, as net interest income increased 25% to GEL303.6 million from GEL242.8 million and net fee & commission income rose 20% to GEL75.6 million from GEL63.0 million.
The lender's net interest margin improved to 5.8% from 5.6%.
Its gross loan book ended the quarter at GEL17.53 billion, rising from GEL17.32 billion three months earlier and up from GEL15.27 billion at the same point a year earlier.
The CET1 capital ratio stood at 15.0% at June 30, up from 14.6% at the start of the second quarter and from 13.0% a year prior.
"Although the challenging geopolitical environment continues to be a matter of concern, the Georgian economy has once again demonstrated its resilience. While the tourism recovery has slowed following the Russian invasion in Ukraine, the negative impact was balance by higher migration to the country," the bank explained.
TBC declared an interim dividend of GEL2.5, rising from GEL1.5 a year before.
In the first half of 2022, pretax profit rose to GEL510.7 million from GEL460.9 million, as operating income increased to GEL876.9 million from GEL691.4 million.
TBC added: "Our strong financial and operating results for the first half of 2022 fill me with confidence that we are on the right track to achieve our growth and profitability targets."
By Paul McGowan; [email protected]
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