TBC Bank reports rise in first-quarter net profit
By Josh White
Date: Thursday 08 May 2025
(Sharecast News) - Shares in TBC Bank Group were sliding on Thursday morning, even after it reported robust first-quarter results, with net profit rising 7% year-on-year to GEL 319m (£86.82m), supported by strong performance in both Georgia and Uzbekistan.
The FTSE 250 Georgia-based financial firm said that on an adjusted basis, excluding a one-off credit impairment in Uzbekistan, net profit rose 14% to GEL 339m, with return on equity reaching 24.2%.
Total operating income for the quarter increased 25% to GEL 774m, as TBC continued to benefit from a favorable macroeconomic backdrop and successful digital initiatives.
Georgia, where the bank maintained leading positions in both loans and deposits with market shares of 38% and 36.9% respectively, contributed the bulk of earnings.
TBC Georgia posted a 12% rise in net profit to GEL 318m, with continued digital engagement gains - 79% of consumer loans were issued fully online.
Uzbekistan emerged as a key growth engine for the group, with operating income more than doubling to GEL 161m and adjusted net profit surging 129% to GEL 42m.
The digital banking ecosystem, comprising TBC Bank Uzbekistan, Payme, and Payme Nasiya, saw user engagement increase sharply, reaching nearly 20 million unique registered users and 6.1 million monthly active users.
TBC Uzbekistan now accounted for 21% of group operating income and 12% of adjusted profit.
The Uzbekistan unit's loan book grew 122% to GEL 2.2bn, while deposits rose 85% to GEL 1.2bn, underlining the success of its new products including Salom and Osmon cards.
TBC said it had also consolidated its Uzbekistan operations under a new holding company, TBC Digital, aiming to streamline governance and unlock synergies.
Non-interest income rose 38% year-on-year, helping to maintain a stable cost-to-income ratio of 37.2%, despite a 25% rise in operating expenses.
However, asset quality showed modest deterioration, with non-performing loans rising to 2.5% and the cost of risk increasing to 1.4%, driven by a one-time charge in Uzbekistan.
Management said that underlying credit quality remained sound, adding that new verification controls had been implemented.
TBC said it had introduced quarterly dividend payments, starting with GEL 1.50 per share for the first quarter, reflecting confidence in its earnings trajectory and capital strength.
The bank reaffirmed its 2025 targets, including full-year net profit of GEL 1.5bn and ROE above 23%, with Uzbekistan expected to contribute over GEL 200 million in net income.
With strong momentum in both its core and growth markets and a clear focus on digital transformation, TBC Bank said it remained well-positioned to deliver on its strategic ambitions through 2025.
At 1031 BST, shares in TBC Bank Group were down 12.64% at 4,245.7p.
Reporting by Josh White for Sharecast.com.
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