TBC Bank upbeat on solid first-half results

Georgia-based TBC Bank reported robust second-quarter and first-half results on Friday, with significant year-on-year growth in profits and returns on equity (ROE).

The FTSE 250 company said its second-quarter net profit reached GEL 329m (£95.64m), a 12% increase compared to the same period last year, with a return on equity of 27.1%.

For the first half, net profit totaled GEL 626m, marking a 14% rise, and its return on equity stood at 26.0%.

Total operating income for the first half grew 16% year-on-year to GEL 678m, driven by a 15% increase in net interest income and a 17% rise in net fee and commission income.

Despite a 25.9% increase in operating expenses, TBC Bank's profit before tax for the half-year grew by 13.6%, reaching GEL 733.47m.

The bank's digital banking ecosystem in Uzbekistan contributed to its overall success.

It said Uzbekistan operations accounted for 7% of the group's net profit and delivered a 25.7% return on equity in the first half.

The digital banking platform's monthly active users (MAUs) surged by 33% year-on-year to 5.7 million, with significant growth in daily active users as well.

In Georgia, TBC Bank's core market, the loan portfolio expanded by 19% year-on-year in constant currency terms, with net profit rising by 9% and a return on equity of 26.9%.

The bank also maintained strong capital positions, with CET1, tier one, and total capital ratios significantly exceeding regulatory requirements.

TBC declared an interim dividend of GEL 2.55 per share, payable in November.

At 0823 BST, shares in TBC Bank Group were up 1.79% at 2,83.89p.

Reporting by Josh White for Sharecast.com.