TBC profit growth aided by solid Georgian economy

Georgian retail lender TBC Bank Group reported a surge in full-year underlying profits on Thursday after lending was supported by a solid economic backdrop across the region.

TBC posted an underlying consolidated 2019 net profit of GEL 545.1m (£149.6m) - a 19.8% improvement year-on-year, while the group's underlying return on equity for the year came to 22.6% and underlying return on assets stood at 3.3%.

The FTSE 250-listed bank's operating income improved 3.7% year-on-year, driven by increased net fee and commission income. Net interest income was also higher, mostly due to the re-classification of net gains on currency exchanges.

However, net interest margins, seen as a primary indicator of a bank's financial strength, slipped to 5.6% from 6.9%.

TBC, which saw its loan book expand 22.1% to GEL 12.66bn (£3.47bn) credited the 5.2% year-on-year expansion in the economy of Georgia for its loan book growth and solid earnings.

The bank's medium-term loan book growth targets were reiterated at around 10-15%.

Chief executive Vakhtang Butskhrikidze said: "In 2019, we recorded strong financial results and made significant progress against our strategic priorities, including the development of customer-focused ecosystems and international expansion in Uzbekistan.

"This lays a solid foundation for further development of these initiatives and I am very excited about our ambitious plans for 2020."

As of 0850 GMT, TBC shares had climbed 5.95% to 1,388p.