20th Aug 2018 08:05
LONDON (Alliance News) - Georgia-based TBC Bank Group PLC on Monday reiterated majority of its medium term financial targets as it reported a jump in first half profit due to increased lending activity.
For the six months to the end of June, the company's pretax profit rose 25% to GEL239.5 million from GEL191.4 million for the same period the year before. At current exchanges rates, this is equivalent to GBP73.5 million and GBP58.7 million, respectively.
First half net interest income rose to GEL363.6 million from GEL292.1 million in the prior year period. Return on equity on a reported basis slipped to 21.2% from 21.5% year-on-year, while return on assets fell slightly to 3.1% from 3.3%.
On an underlying basis, return on equity without one-offs rose to 23.0% from 22.5% but return on assets slipped to 3.4% from 3.5%.
As at the end of June, retail loans stood at GEL4.20 billion, up 13% year-on-year from GEL3.70 billion, corporate loans rose by 26% to GEL2.58 billion, and micro, small and medium enterprise loans grew to GEL2.12 billion, up 30% from GEL1.62 billion.
"I am pleased to present another set of strong financial results for the second quarter 2018, driven by the successful execution of our strategy and the continued strong performance of the Georgian economy," said Chief Executive Officer Vakhtang Butskhrikidze.
TBC Bank said it has upgraded its medium term cost to income target to below 35% from below 40%, and reiterated its other medium term targets: return on equity of above 20%, dividend pay-out ratio of 25% to 35% and loan book growth of 15%.
Shares in TBC Bank opened 2.5% higher at 1,642.72 pence each on Monday.
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