TBC Bank profit falls 38% in fourth quarter

TBC Bank's fourth-quarter profit fell 38% as the Georgian lender's bad debt charge surged during the Covid-19 crisis.

Pretax profit for the three months to the end of December fell to GEL 109.7m (£24m) from GEL 177.3m a year earlier. The FTSE 250 group's credit loss charge was GEL 79.4m compared with a GEL 224m writeback a year earlier.

Annual profit dropped 46% to GEL 319.1m as the credit loss charge rose to GEL 351.8m from GEL 92m. Operating income rose 2.4% to GEL 1.56bn. TBC paid no dividend for the year.

Georgia's economy shrank 6.1% in 2020 as Covid-19 lockdowns and pressures hit business activity. Tourism from abroad dropped close to zero, exports fell 12% and imports fell 16%.

Chief Executive Vakhtang Butskhrikidze said: "In 2020, our provision charges increased significantly to cover the potential impact of the Covid-19 pandemic on our borrowers. 2020 was a transformational year, significantly changing the way people lead their daily lives and interact with each other. We did our best to embrace the change and turn challenges into new opportunities."

Georgia's biggest lender said its number of affluent customers increased 15% to 98,000 in 2020 and 96% of transactions were through digital channels, up from 93% a year earlier.

TBC shares fell 1.7% to £11.98.8p at 08:29 GMT.