LONDON (ShareCast) - (Sharecast News) - Georgia-focussed TBC Bank Group released a strong set of 2022 financial results on Wednesday, reporting that despite a one-off tax charge of GEL 113m (£35.51m), its net profit rose 24% year-on-year to GEL 1bn, with a return on equity of 27.0%.
The FTSE 250 company said that excluding the one-off tax charge, the bank's underlying net profit and ROE would have been GEL 1.12bn and 29.9%, respectively.

It recorded strong income generation, with its operating income growing by 43% to GEL 2.07bn due to robust net interest income, net fee and commission income, and a substantial contribution from foreign exchange operations.

The bank's net interest margin (NIM) for the full year amounted to 6.0%, an increase of 0.9 percentage points compared to 2021.

Additionally, its cost-to-income ratio for the full year improved by 4.2 percentage points to 33.4%, due to efficient cost management.

TBC Bank described strong asset quality, with its cost of risk for the full year starting to normalise and standing at 0.7%.

The bank's NPL-to-gross loans stood at 2.2%, while its NPL provision and total coverage ratios stood at 94% and 156%, respectively.

Its Uzbek operations generated positive returns, with Payme generating GEL 51m and GEL 33m in operating income and net profit, respectively, with 77% and 85% year-on-year growth.

Including TBC UZ Bank, the operating income of the bank's Uzbek operations amounted to GEL 97m, while net profit reached GEL 8m for the full year.

At year-end on 31 December, TBC Bank's CET1, Tier 1, and Total Capital ratios stood at a respective 15.5%, 18.0% and 21.0%, and remained comfortably above the minimum regulatory requirements.

Additionally, its net stable funding and liquidity coverage ratios stood at 135% and 147%, also above the regulatory minimum of 100%.

TBC said it saw strong growth in Georgia, with its loan book increasing by 16% year-on-year in constant currency terms, which translated into a 39.5% market share, up by 0.7 percentage points.

The bank's deposit base increased by 31% in constant currency terms, and its market share in total deposits amounted to 40.3% at year-end, which was down 0.1 percentage points.

TBC's retail loans and deposits in Uzbekistan also experienced fast expansion, with TBC UZ Bank's retail loans and deposits amounting to GEL 348m and GEL 331m, compared to GEL 93m and GEL 208m a year ago.

As a result, its retail and deposit market shares reached 2.2% and 1.5% at the end of 2022.

"Our strategy for the next year is to continue to build on our leading position in the Georgian financial services sector, combined with our dominant position in digital ecosystem, allowing us to generate steady growth and solid profitability, as well as further pursue our international ambitions through our Uzbek subsidiaries, by leveraging our superior customer experience, strong data analytics and best-in-class digital solutions," said chief executive officer Vakhtang Butskhrikidze.

At 0907 GMT, shares in TBC Bank Group were down 7.34% at 2,335p.

Reporting by Josh White for Sharecast.com.

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