29th Jul 2019 09:53
(Alliance News) - Georgia-based TBC Bank Group PLC said on Monday profit rose in the first half of 2019 following an increase in net income interest.
For the six months to the end of June, the company's pretax profit rose by 11% to GEL265.9 million from GEL239.5 million a year before. This is the equivalent of a rise to GBP73.6 million from GBP66.3 million.
On an underlying basis, which excludes one-off costs, pretax profit rose 13% to GEL258.3 million from GEL217.4 million last year.
There was a 6.6% rise in net interest income to GEL387.4 million from GEL363.6 million.
The net interest income rise was offset somewhat at the profit line by a 16% year-on-year rise in operating costs to GEL211.9 million from GEL183.0 million.
Return on equity on a reported basis rose to 22.3% from 21.2% a year before, and return on assets increased to 3.3% from 3.1%. TBC Bank reiterated its medium-term target of achieving a return on equity above 20%.
It also affirmed its aim of a cost-to-income ratio below 35%. At the end of the first half, cost to income stood at 39%.
Last week, former TBC chair Mamuka Khazaradze and deputy chair Badri Japaridze stepped down after the Georgian prosecutor charged the duo over illicit transactions made in 2007 and 2008. The company appointed senior independent director Nikoloz Enukidze as its new chair.
Shares in TBC Bank were up 4.7% at 1,300.00 pence each in London on Monday morning.
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TBC Bank Group