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Sparks Team
17 May 2018 · 3 min read

TBC Bank Group (TBCG); strong results across segments, net profit at GEL 97.5m

Stock down 0.56% to 1,764.00p at 8:24

TBCG released their 1Q 2018 results reporting a small increase in NIM 6.9% vs 6.6% in Q1 2017 and a 17.3% YoY increase in operating income (GEL 238.7m). Total assets were up by 19.7% YoY and loans and advances by 18.4% YoY. ROE and ROA for the period were 21.0% and 3.2% respectively.

Total assets amounted to GEL 12.4bn and total customer deposits were GEL 7.6bn (up 25.4% YoY). The bank’s total capital adequacy ratio (CAR) stood at 17.7% against the minimum requirement of 15%.

Segmentally, the limits of corporate customers have been increased from GEL 8m to 12m and non-mortgage loans provided to certain individual business customers have been moved from retail to MSME segment resulting in transfer of GEL 236m from retail to MSME. The retail banking segment contributed to 36.3% of TBC’s total net income, the corporate banking segment contributed to 26.9% and MSME segment contributed 18.3%.

TBCG reiterated their medium-term targets of ROE above 20%, cost to income ratio below 40%, dividend pay-out ratio of 25-35% and loan book growth at 15%, reflecting confidence in company’s customer centric approach to garner market share.

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