TIDMTBCG
RNS Number : 7363S
TBC Bank Group PLC
18 November 2021
TBC BANK GROUP PLC ("TBC Bank")
3 Q AND 9M 2021 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
Forward-Looking Statements
This document contains forward-looking statements; such
forward-looking statements contain known and unknown risks,
uncertainties and other important factors, which may cause the
actual results, performance or achievements of TBC Bank Group PLC
("the Bank" or "the Group") to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements are
based on numerous assumptions regarding the Bank's present and
future business strategies and the environment in which the Bank
will operate in the future. Important factors that, in the view of
the Bank, could cause actual results to differ materially from
those discussed in the forward-looking statements include, among
others: the achievement of anticipated levels of profitability;
growth, cost and recent acquisitions; the impact of competitive
pricing; the ability to obtain the necessary regulatory approvals
and licenses; the impact of developments in the Georgian economy;
the impact of COVID-19; the political and legal environment;
financial risk management; and the impact of general business and
global economic conditions.
None of the future projections, expectations, estimates or
prospects in this document should be taken as forecasts or
promises, nor should they be taken as implying any indication,
assurance or guarantee that the assumptions on which such future
projections, expectations, estimates or prospects are based are
accurate or exhaustive or, in the case of the assumptions, entirely
covered in the document. These forward-looking statements speak
only as of the date they are made, and, subject to compliance with
applicable law and regulations, the Bank expressly disclaims any
obligation or undertaking to disseminate any updates or revisions
to any forward-looking statements contained in the document to
reflect actual results, changes in assumptions or changes in
factors affecting those statements.
Certain financial information contained in this presentation,
which is prepared on the basis of the Group's accounting policies
applied consistently from year to year, has been extracted from the
Group's unaudited management accounts and financial statements. The
areas in which the management accounts might differ from the
International Financial Reporting Standards and/or U.S. generally
accepted accounting principles could be significant; you should
consult your own professional advisors and/or conduct your own due
diligence for a complete and detailed understanding of such
differences and any implications they might have on the relevant
financial information contained in this presentation. Some
numerical figures included in this report have been subjected to
rounding adjustments. Accordingly, the numerical figures shown as
totals in certain tables might not be an arithmetic aggregation of
the figures that preceded them.
Third Quarter and Nine months of 2021 Unaudited Consolidated
Financial Results Conference Call
TBC Bank Group PLC ("TBC PLC") publishes its unaudited
consolidated financial results for the third quarter and the first
nine months of 2021 on Thursday, 18 November 2021 at 7.00 am GMT
(11.00 am GET), while the results call will be held at 14.00 (GMT)
/ 15.00 (CET) / 9.00 (EST).
Please click the link below to join the webinar:
https://tbc.zoom.us/j/97719750220?pwd=dVlNciswem4vQjZLUW1CWWt2b3lIZz09
Webinar ID: 977 1975 0220
Passcode: 124283
Or, use the following dial-ins:
-- Georgia: +995 3224 73988 or +995 7067 77954 or 800 100 293 (Toll Free)
-- United Kingdom: 0 800 031 5717 (Toll Free) or 0 800 260 5801
(Toll Free) or 0 800 358 2817 (Toll Free) or 0 800 456 1369 (Toll
Free)
-- US: 833 548 0276 (Toll Free) or 833 548 0282 (Toll Free) or
877 853 5257 (Toll Free) or 888 475 4499 (Toll Free)
-- Russia: 8800 100 6938 (Toll Free) or 8800 301 7427 (Toll Free)
Webinar ID 977 1975 0220# , please dial the ID number slowly.
Other international numbers available at: https://tbc.zoom.us/u/aef0FWxaD4
The call will be held in two parts: the first part will comprise
presentations, while during the second part of the call,
participants will have the opportunity to ask questions. All
participants will be muted throughout the webinar.
Webinar Instructions:
For those participants who will be joining through the webinar,
in order to ask questions, please use the "hand icon" that you will
see at the bottom of the screen. The host will unmute those
participants who have raised hands one after another. After the
question is asked, the participant will be muted again.
Call Instructions:
For those participants who will be using the dial in number to
join the webinar, please dial *9 to raise your hand.
Contacts
Zoltan Szalai Anna Romelashvili Investor Relations Department
Director of International Head of Investor Relations
Media and Investor Relations
E-mail: ZSzalai@Tbcbank.com.ge E-mail: IR@tbcbank.com.ge E-mail: IR@tbcbank.com.ge
Tel: +44 (0) 7908 242128 Tel: +(995 32) 227 27 Tel: +(995 32) 227 27
Web: www.tbcbankgroup.com 27 27
Web: www.tbcbankgroup.com Web: www.tbcbankgroup.com
Table of Contents
3Q and 9M 2021 Results Announcement
Key Highlights
Letter from the Chief Executive Officer
Economic Overview
Unaudited Consolidated Financial Results Overview for 3Q
2021
Unaudited Consolidated Financial Results Overview for 9M
2021
Additional Disclosures
1)TBC Bank - Background
2)Subsidiaries of TBC Bank Group PLC
3)TBC Insurance
4)Fast growing digital bank in Uzbekistan
5)Reclassification of certain balance sheet profit and loss
items and changes in methodology
6)Loan book breakdown by stages according IFRS 9
7)Reconciliation of Return on Equity (ROE) with ROE before
expected credit loss allowances
TBC Bank's Unaudited 3Q and 9M 2021 Consolidated Financial
Results
Continued to deliver robust profitability and steady growth
supported by solid capital
Strong progress in exploiting our international growth
potential
European Union Market Abuse Regulation EU 596/2014 requires TBC
Bank Group PLC to disclose that this announcement contains Inside
Information, as defined in that Regulation.
Key Highlights
Economic recovery continued in 3Q - After a record-high rebound
of 29.9% in 2Q 2021, which was driven by pent-up demand and
re-opening of the economy, GDP posted solid, 9.0% YoY real growth
in 3Q 2021. Importantly, the growth has been broad-based, supported
by strong external inflows and increased domestic demand. In the
first nine months of 2021, the economy grew by 11.3% YoY in real
terms, surpassing the 2019 level by 4.8%. For the FY 2021 and 2022,
our GDP growth outlook is 10.5% and 6.0%, respectively.
The group maintained robust profitability... - Our net profit
amounted to GEL 207.1 million (up by 35.8% YoY) and GEL 610.5
million (almost tripled YoY), respectively, in 3Q and 9M 2021. The
growth was driven by increased operating income spread across all
revenue categories, further supported by recoveries in loan
provision charges. As a result, our ROE for 3Q and 9M stood at
24.1% and 25.3%, respectively.
.... backed by solid capital levels, allowing the resumption of
dividend payments- CET1, Tier 1 and Total Capital ratios stood at
13.4%, 15.4% and 19.3%, respectively, comfortably above the prudent
respective minimum regulatory requirements of 11.3%, 13.5% and
17.9%. The strong capital generation over the quarter fully offset
the interim dividend payment of GEL 81.8 million in September
2021.
Our Georgian banking franchise maintained steady growth across
all business segment... - Our loan book increased by 12.6%
year-on-year in constant currency terms, mainly driven by the CIB
and MSME segments, which translated into a 38.4% market share as of
30 September 2021. Over the same period, our deposits increased by
20.0% in constant currency terms. As a result, our market share in
total deposits amounted to 40.1% as of 30 September 2021. We hold
the #1 position in the market in terms of both loan and deposit
market shares.
...while our Uzbek bank continued to expand its operations
having secured strong IFI support - In September, we entered into a
partnership with IFC and the EBRD. Under the terms of the
agreement, by the end of 2021, IFC and the EBRD will, subject to
certain conditions, each invest USD 9.4 million into TBC UZ in
exchange for up to a 20% equity interest each. TBC PLC will retain
60% ownership of TBC UZ.
As of 31 October 2021, the number of registered and active users
of TBC UZ's digital banking app reached around 785,000 and 170,000,
respectively. We already cover 25 regions of the country through
our 33 customer acquisition points and 8 showrooms. At the end of
October 2021, the bank's deposit portfolio amounted to GEL115.0
million, while the loan book stood at GEL 59.8 million.
Further progress towards digitalization - In 3Q, we launched a
fully end-to-end digital consumer loan disbursement process in our
mobile banking, which is expected to accelerate our sales through
remote channels. We have also launched 'open banking' in our mobile
banking for our retail and business customers.
In 3Q, the number of transactions conducted in remote channels
amounted to 37.2 million, up by 24.8% and 6.0% on a YoY and QoQ
basis, respectively. Over the same period, the number of active
digital users increased by 10.7% YoY or 2.3% QoQ and amounted to
704 thousands. Our sales offloading in consumer loans[1] and
deposits[2] stood at 52% and 74%, respectively.
JSC TBC Bank successfully issued $75 million Additional Tier 1
Capital Perpetual Subordinated Notes on 4 November 2021 - The new
issue attracted solid demand from investors across the EU, the UK
and the US, evidencing strong investor appe tite for TBC Bank's
credit story. The AT1 issue will allow TBC Bank to maintain an
efficient capital structure and strong capital base to fund
mid-term growth opportunities.
TBC Bank Group PLC was re-included in the FTSE 250 index from 27
October 2021 on the back of the strong recovery in our share
price.
Letter from the Chief Executive Officer
I am delighted to present another strong set of financial
results for the third quarter 2021, supported by the continued
revival of business activities on the back of a sustained
macroeconomic recovery. The quarter was also marked by a
significant achievement for our Uzbek banking subsidiary, TBC UZ.
After extensive negotiations, we have entered into a partnership
with the International Finance Corporation ("IFC") and the European
Bank for Reconstruction and Development ("EBRD"), whereby IFC and
the EBRD will invest equity into TBC UZ to support its continued
growth. Furthermore, I am pleased that our subsidiary, JSC TBC
Bank, successfully issued additional Tier 1 Capital Perpetual
Subordinated Notes in the amount of US D 75 million. This AT1
issuance will allow us to maintain solid growth while retaining a
prudent and optimal capital structure well above regulatory
requirements .
I am also delighted that our efforts have been reflected in a
strong recovery of our share price, which resulted in our
re-inclusion into the FTSE 250 index from 27 October 2021.
Economic recovery continued into the third quarter
The Georgian economy has continued a firm recovery in the third
quarter of 2021. According to the preliminary estimates of Geostat
[3] , after a record-high rebound of 29.9% in the second quarter,
the economy posted solid, 9.0% year-on-year real growth. In the
first nine months of 2021, real GDP expanded by 11.3% year-on-year,
surpassing the 2019 level by 4.8%. Importantly, this growth was
broad-based, supported by strong external inflows and increased
domestic demand. The exceptional performance in exports, the
continued strong flow of remittances, and a gradual recovery in
tourism, together with record-low interest rates on US$ deposits,
stimulated consumer spending and real estate investments. Banking
sector credit displayed a solid rebound in the third quarter with
15.8% year-on-year growth in FX adjusted terms, which is also
strongly supportive of economic growth. While COVID-19 related
uncertainties pose downside risks to the outlook, real GDP growth
for the year is expected to be above 10.0%.
The Bank continued to deliver strong financial results in the
third quarter
In the third quarter of 2021, our consolidated net profit
amounted to GEL 207.1 million, up by 35.8% year-on-year, while our
return on equity and return on assets stood at 24.1% and 3.6%,
respectively.
The main driver of our profitability was the strong growth in
our net interest income, which resulted in a net interest margin of
5.3%, up by 0.7 pp year-on-year. Our operating income was further
supported by an increase in net fee and commission income, which
grew by 44.5% year-on-year. This growth was driven by increased
business activities combined with various initiatives on the
payments side and strong results generated by our retail affluent
sub-segment.
In the third quarter, we recorded a strong performance on the
asset quality side across all segments. As a result, our cost of
risk stood at -0.1% and had a positive contribution to our net
profits. Over the same period, our operating expenses increased by
16.8% year-on-year, driven by the expansion of our Uzbek bank and
increased business activities. The cost to income for the period
stood at 35.4%, down by 3.1 pp year-on-year.
Our loan book increased by 12.6% year-on-year in constant
currency terms, mainly driven by the CIB and MSME segments, which
translated into a 38.4% market share. Over the same period, our
deposits increased by 20.0% in constant currency terms across the
board. As a result, our market share in total deposits amounted to
40.1% as of 30 September 2021.
As of 30 September 2021, our CET1, Tier 1 and Total Capital
ratios stood at 13.4%, 15.4% and 19.3%, respectively, comfortably
above the respective minimum regulatory requirements of 11.3%,
13.5% and 17.9%. The strong capital generation over the quarter
fully offset the interim dividends payments, in the amount of GEL
81.8 million, in September 2021. We continue to maintain a robust
liquidity position, with net stable funding (NSFR) and liquidity
coverage ratios (LCR) standing at 127% and 116%, respectively, as
of 30 September 2021.
Further progress towards digitalization
I would like to highlight several important business
developments during the quarter. On the retail side, we have
launched a digital consumer loan disbursement process in our mobile
banking, which is expected to accelerate our sales through remote
channels. We have also launched open banking in our mobile banking
for our retail and business customers. Open banking brings together
all clients' accounts from various Georgian banks and allows them
to check their accounts at one place, thus saving a lot of time and
effort. I am pleased that our consistent efforts towards innovation
and digitalization have been recognized internationally with
multiple digital regional awards from Global Finance magazine.
In terms of operating metrics, the number of retail remote
transactions during the third quarter of 2021 increased by 24.8%
year-on-year and by 6.0% quarter-on-quarter. Retail digital users
also demonstrated a growing trend and increased by 10.7%
year-on-year and 2.3% quarter-on-quarter, while mobile and internet
banking penetration ratio amounted to 56%. Over the same period,
the number of digital sales also remained strong. The consumer loan
sales offloading ratio ([4]) amounted to 52%, while the deposit
sales offloading ratio ([5]) continued to remain high at 7 4%.
Securing strong IFI support for our growing Uzbek bank
In September, we entered into a partnership with IFC and the
EBRD, marking another important milestone in our Uzbek expansion.
Under the terms of the agreement, by the end of 2021, IFC and EBRD
will, subject to certain conditions, each invest USD 9.4 million
into TBC UZ in exchange for up to a 20% equity interest each. TBC
PLC will retain 60% ownership of TBC UZ. In addition, IFC and the
EBRD have agreed, subject to certain conditions, to make additional
capital injections of, in aggregate, up to USD 34.3 million in the
period up to 2024. This partnership will allow us to accelerate our
growth in the country and offer a wide range of innovative and
affordable products to the Uzbek population.
This was another successful quarter for our Uzbek bank, which
continued its rapid growth across the board. The number of
registered and active users of our digital banking app reached
785,000 and 170,000, respectively, as of 31 October 2021. We
already cover 25 regions of the country through our 33 customer
acquisition points, while we also operate several showrooms for
customer relationship purposes. As of end of October, our deposit
portfolio growth significantly outpaced the loan book growth and
reached GEL 115.0 million, while the loan book stood at GEL 59.8
million.
Over the same period, our Uzbek payments business Payme
continued its strong growth, as its num ber of registered users
reached 4 million, while the number and volume of transactions
increased by an impressive 47.6% and 58.8% respectively
year-on-year. As a result, its revenue for the third quarter
amounted to GEL 6.7 million, increasing by 54.6% over the same
period.
Outlook
Going forward, we will continue to leverage our strong Georgian
franchise to maintain high profitability levels backed by the solid
capital levels, while harnessing our Uzbek businesses to accelerate
our growth.
To conclude , I would like to re-iterate our medium term
guidance: ROE of above 20%, a cost to income ratio below 35%, a
dividend pay-out ratio of 25-35% and annual loan growth of
10-15%.
Economic Overview
Economic growth
A remarkable 29.9% surge in the second quarter of 2021 confirmed
that, instead of recovery, the economy is experiencing a restart.
Furthermore, despite the hindered tourism rebound in
August-September and slower than expected vaccination rates,
according to Geostat's initial estimates the second quarter was
followed by 9.9% year-on-year expansion in July, 10.3% in August,
and 6.9% in September, amounting to average year-on-year growth of
9.0% in 3Q 2021. It is expected that the Georgian economy will
expand by 10.5% year-on-year, surpassing the
2019 level by 3.6% in 2021.
External sectors
The external sector continued its strong performance in 3Q 2021
with exports growing by 21.9% year-on-year and 15.8% compared with
3Q 2019. Notably, domestic exports lead the recovery with the share
of domestic exports in total exports increasing significantly, from
59.4% in 3Q 2019 to 71.9% in 3Q 2021. Despite the still ongoing
recovery in tourism related imports and re-exports, imports of
goods also went up by 23.8% YoY in 3Q 2021 and by 9.9% when
compared with the same period of 2019. Importantly, the rebound in
the trade in goods was broad based, reflecting the increased
overall external as well as domestic demand.
Remittance inflows have stabilized after a 53.5% YoY surge in
the second quarter, amounting to 10.2% YoY in 3Q 2021 or 28.2%
compared to 3Q 2019. Although part of the rebound compared with
2019 can be attributed to border closures and more cash remittances
being transferred through digital channels, overall growth is still
substantial given that the share of cash inflows is only likely to
be around 10.0%-15.0%, according to the NBG's estimates.
The recovery in tourism inflows has continued its strong
performance, with 1230.6% year-on-year growth in 3Q 2021 on the
back of the low base in 3Q 2020 due to the COVID-19 pandemic,
equaling a 50.2% recovery compared to the same period of 2019.
Notably, the growth is primarily lead by the recovery of high
spending countries. While compared to the previous quarter's
inflows standing at 28.0% of 2Q 2019, the 3Q 2021 numbers are
impressive, the recovery in August-September has somewhat stalled
on the back of another wave of COVID-19 pandemic. Overall, even
taking into account increased risks due to a higher number of
infection cases, TBC Capital's latest projection of tourism inflows
to recover by around 37.5% in 2021 compared to 2019 still looks
reasonable[6].
Fiscal stimulus
The fiscal deficit is expected to remain sizable in 2021 at an
estimated 6.7% of GDP following a deficit of 9.3% of GDP in 2020.
According to the Ministry of Finance, further fiscal consolidation
is expected in the coming years with deficit-to-GDP ratios of 4.4%,
3.0% and 2.7% in 2022, 2023 and 2024, respectively. Importantly,
the major source of deficit financing in 2020-2021 was an external
one, largely compensating for the pandemic related drop in net
inflows.
Credit growth
By the end of 3Q 2021, bank credit growth increased to 15.8%
year-on-year, compared to a 12.6% year-on-year growth by the end of
2Q 2021. In terms of segments, MSME lending growth has increased by
0.4 pp from 1Q 2021 to 2Q 2021 and amounted to 20.1% year-on-year.
Corporate lending also increased from 7.4% at the end of 2Q 2021 to
15.4%. Growth in the retail sector increased by 0.6 pp to 13.2%
year-on-year on the back of stronger non-mortgage credit. As for
housing finance, the year-on-year increase declined from 14.1% to
12.0%, however, on the back of the higher base effect.
Inflation, monetary policy and the exchange rate
After the appreciation of the GEL in the second quarter, the
currency has remained broadly stable, even with the depreciating
TRY, gaining 1.2% value in the third quarter against the greenback.
In contrast to the GEL, inflationary pressures have continued
throughout the third quarter, mainly caused by increasing commodity
and food prices on the international markets, reaching 12.3%
year-on-year in September 2021, up from 9.9% in June 2021. However,
monthly seasonally adjusted inflation in September was already
below the 3% target. As expected, despite higher commodity prices
and the rebound of the economy, the GEL has curbed the price
increase, although with some time lag. To curb the aforementioned
inflationary pressures the NBG increased its main refinancing rate
by 50 bps to 10.0% in August, coupled with 93.7 million USD in FX
interventions, 60 million of which was sold in September.
Going forward
As the growth in the third quarter has solidified our projection
of restart rather than recovery, TBC Capital holds an unchanged
forecast for real GDP growth in 2021 of 10.5%, followed by a
slightly downward, revised 6.0% growth forecast in 2022(2) . The
IMF projects that the Georgian economy will grow by 7.7% in 2021
and by 5.8% in 2022[7], while the World Bank's October release
forecasts 8.0% and 5.5% growth rates in 2021 and 2022,
respectively[8].
Mor e information on the Georgian economy and financial sector
can be found at www.tbccapital.ge .
Unaudited Consolidated Financial Results Overview for 3Q
2021
This statement provides a summary of the unaudited business and
financial trends for 3Q 2021 for TBC Bank Group plc and its
subsidiaries. The quarterly financial information and trends are
unaudited.
TBC Bank Group PLC's financial results has been prepared in
accordance with UK-adopted International Accounting Standard (IAS)
34 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the Financial Conduct Authority
(FCA).
Please note that there might be slight differences in previous
periods' figures due to rounding.
Financial Highlights
Income Statement Highlights
--------------------------------------------------- ---------- ---------- ---------- --------------------
in thousands of GEL 3Q'21 2Q'21 3Q'20 Change Change QoQ
YoY
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Net interest income 259,390 242,767 211,784 22.5% 6.8%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Net fee and commission income 68,631 63,008 47,499 44.5% 8.9%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Other operating non-interest income[9] 43,952 74,512 33,913 29.6% -41.0%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Total credit loss allowance (5,106) 45,291 (14,146) -63.9% NMF
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Operating profit after expected credit losses 366,867 425,578 279,050 31.5% -13.8%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Losses from modifications of financial instrument (104) (104) (1,763) -94.1% 0.0%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Operating expenses (131,695) (134,688) (112,793) 16.8% -2.2%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Profit before tax 235,068 290,786 164,494 42.9% -19.2%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Income tax expense (27,921) (40,394) (11,906) NMF -30.9%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Profit for the period 207,147 250,392 152,588 35.8% -17.3%
--------------------------------------------------- ---------- ---------- ---------- ------- -----------
Balance Sheet and
Capital Highlights
--------------------- --------------------- ------------------- -------------------------------- -------
in thousands of GEL Sep-21 Jun-21 Sep-20 Change YoY Change
QoQ
--------------------- --------------------- ------------------- ------------------- ----------- -------
Total Assets 23,701,241 22,091,541 21,866,972 8.4% 7.3%
Gross Loans 15,963,520 15,274,926 14,590,777 9.4% 4.5%
Customer Deposits 14,338,537 12,870,418 12,343,414 16.2% 11.4%
Total Equity 3,448,193 3,336,825 2,826,387 22.0% 3.3%
CET 1 Capital (Basel
III) 2,565,560 2,382,595 1,738,739 47.6% 7.7%
Tier 1 Capital
(Basel III) 2,955,910 2,837,805 2,211,178 33.7% 4.2%
Total Capital (Basel
III) 3,693,637 3,573,282 2,984,109 23.8% 3.4%
Risk Weighted Assets
(Basel III) 19,143,450 18,275,845 17,478,610 9.5% 4.7%
--------------------- --------------------- ------------------- ------------------- ----------- -------
Key Ratios 3Q'21 2Q'21 3Q'20 Change Change
YoY QoQ
----------------------------------------- ------- ------- ------- --------- --------
ROE 24.1% 31.0% 22.0% 2.1 pp -6.9 pp
Bank's standalone ROE[10] 30.9% 34.7% 23.3% 7.6 pp -3.8 pp
ROA 3.6% 4.4% 2.9% 0.7 pp -0.8 pp
Bank's standalone ROA ([10]) 4.5% 4.7% 2.9% 1.6 pp -0.2 pp
NIM 5.3% 5.0% 4.6% 0.7 pp 0.3 pp
Cost to income 35.4% 35.4% 38.5% -3.1 pp 0.0 pp
Bank's standalone cost to income ([10]) 25.8% 28.6% 33.2% -7.4 pp -2.8 pp
Cost of risk -0.1% -1.3% 0.2% -0.3 pp 1.2 pp
NPL to gross loans 3.1% 3.4% 3.5% -0.4 pp -0.3 pp
NPL provision coverage ratio 94.3% 91.3% 104.6% -10.3 pp 3.0 pp
Total NPL coverage ratio 169.3% 169.6% 180.0% -10.7 pp -0.3 pp
CET 1 CAR (Basel III) 13.4% 13.0% 9.9% 3.5 pp 0.4 pp
Tier 1 CAR (Basel III) 15.4% 15.5% 12.7% 2.7 pp -0.1 pp
Total CAR (Basel III) 19.3% 19.6% 17.1% 2.2 pp -0.3 pp
Leverage (Times) 6.9x 6.6x 7.7x -0.8x 0.3x
----------------------------------------- ------- ------- ------- --------- --------
Net Interest Income
In 3Q 2021, net interest income amounted to GEL 259.4 million,
up by 22.5% YoY and 6.8% on a QoQ basis.
The YoY rise in interest income by GEL 50.4 million, or 11.8%,
was mostly attributable to an increase in interest income from
loans related to a growth in the respective portfolio of GEL
1,372.7 million, or 9.4%, together with an increase in the
respective yield by 0.5 pp due to a rise in the refinance rate. In
addition, the shift of the portfolio composition towards GEL loans
had a positive effect on loan yields.
In 3Q 2021, interest expense increased only by GEL 9.4 million,
or 4.3%, mainly driven by an increase in interest expense from
deposits. This increase was related to a growth in the respective
portfolio of GEL 1,995.1 million, or 16.2% YoY, which was partially
offset by the decrease in the cost of deposits by 0.2 pp. Over the
same period, interest expense from other borrowed funds decreased
by GEL 6.6 million, or 9.8%, on the back of a decline in the
respective portfolio by GEL 777.4 million, or 19.9%, which more
than offset the increase in the respective yield by 0.7 pp that was
driven by the higher refinance rate. In addition, the change in
liability structure towards deposits had a positive effect on our
cost of funding, which dropped by 0.2 pp on a YoY basis.
The increase in interest income on a QoQ basis of GEL 18.1
million, or 3.9%, was mainly driven by an increase in interest
income from loans to customers on the back of an increase in the
loan portfolio by GEL 688.6 million, or 4.5%, and a 0.3 pp increase
in loan effective rates. This increase was mainly attributable to
GEL loan yields, on the back of an increase in the refinance rate ,
as well as a shift of the portfolio composition towards high-yield
GEL loans.
The increase in interest expense of GEL 3.5 million, or 1.6% on
a QoQ basis, was mainly driven by an increase in customer account
by GEL 1,468.1 million or 11.4%, as well as a 0.1 pp increase in
the cost of deposits.
In 3Q 2021, our NIM stood at 5.3%, up by 0.7 pp YoY and 0.3 pp
on a QoQ basis.
In thousands of GEL 3Q'21 2Q'21 3Q'20 Change YoY Change QoQ
------------------------------- ---------- ---------- ---------- ----------- -----------
Interest income 476,636 458,572 426,232 11.8% 3.9%
------------------------------- ---------- ---------- ---------- ----------- -----------
Interest expense (226,991) (223,456) (217,639) 4.3% 1.6%
------------------------------- ---------- ---------- ---------- ----------- -----------
Net gains from currency swaps 9,745 7,651 3,191 NMF 27.4%
------------------------------- ---------- ---------- ---------- ----------- -----------
Net interest income 259,390 242,767 211,784 22.5% 6.8%
------------------------------- ---------- ---------- ---------- ----------- -----------
NIM 5.3% 5.0% 4.6% 0.7 pp 0.3 pp
------------------------------- ---------- ---------- ---------- ----------- -----------
Net fee and commission income
In 3Q 2021, net fee and commission income totaled GEL 68.6
million, up by 44.5% YoY and 8.9% QoQ.
The YoY increase was spread across all categories and was mainly
driven by increased business activities combined with our various
initiatives including: a review of the pricing model of our
merchants together with the acquisition of several large merchants,
the popularization of our subscription model for mass retail
customers, and the fine-tuning of our offerings for affluent
customers. This growth was further supported by our fast growing
Uzbek subsidiary, Payme.
The increase on a QoQ basis was mainly driven by an increase in
structuring fees for loans and guarantees in the corporate segment,
as well as fine-tuning our offerings for affluent customers.
In thousands of GEL 3Q'21 2Q'21 3Q'20 Change YoY Change QoQ
----------------------------------------- ------- ------- ------- ----------- -----------
Net fee and commission income
----------------------------------------- ------- ------- ------- ----------- -----------
Card operations 21,275 22,627 11,318 88.0% -6.0%
Settlement transactions 31,386 28,435 22,535 39.3% 10.4%
Guarantees issued and letters of credit 10,188 9,561 9,624 5.9% 6.6%
Other 5,782 2,385 4,022 43.8% NMF
----------------------------------------- ------- ------- ------- ----------- -----------
Total net fee and commission income 68,631 63,008 47,499 44.5% 8.9%
----------------------------------------- ------- ------- ------- ----------- -----------
Other Non-Interest Income
Total other non-interest income increased by 29.6% YoY and
decreased by 41.0% QoQ and amounted to GEL 44.0 million in 3Q
2021.
The increase on a YoY basis was mainly attributable to business
revival, further supported by net income from foreign currency
operations due to an increase in the scale of FX transactions.
The decrease on a QoQ basis was mainly driven by other operating
income due to an exceptionally high base in the previous quarter
related to the gain from the disposal of one of our investment
properties, in the amount of GEL 26.3 million .
In thousands of GEL 3Q'21 2Q'21 3Q'20 Change YoY Change QoQ
----------------------------------------------------------------- ------- ------- ------- ----------- -----------
Other non-interest income
----------------------------------------------------------------- ------- ------- ------- ----------- -----------
Net income from foreign currency operations 29,114 31,372 22,131 31.6% -7.2%
Net insurance premium earned after claims and acquisition
costs[11] 6,019 5,470 5,941 1.3% 10.0%
Other operating income 8,819 37,670 5,841 51.0% -76.6%
----------------------------------------------------------------- ------- ------- ------- ----------- -----------
Total other non-interest income 43,952 74,512 33,913 29.6% -41.0%
----------------------------------------------------------------- ------- ------- ------- ----------- -----------
Credit Loss Allowance
In 3Q cost of risk amounted to -0.1%, attributable to strong
performance across all segments.
In thousands of GEL 3Q'21 2Q'21 3Q'20 Change Change
YoY QoQ
---------------------------------------------- -------- -------- --------- -------- -------
Recovery of/(charges to) credit loss
allowance for loan to customers 4,389 50,112 (5,884) -174.6% -91.2%
Credit loss allowance for other transactions (9,495) (4,821) (8,262) 14.9% 97.0%
-------- -------- --------- -------- -------
Total credit loss allowance (5,106) 45,291 (14,146) -63.9% NMF
---------------------------------------------- -------- -------- --------- -------- -------
Operating profit after expected credit
losses 366,867 425,578 279,050 31.5% -13.8%
---------------------------------------------- -------- -------- --------- -------- -------
-0.3
Cost of risk -0.1% -1.3% 0.2% pp 1.2 pp
---------------------------------------------- -------- -------- --------- -------- -------
Operating Expenses
In 3Q 2021, our operating expenses expanded by 16.8% YoY and
slightly decreased on a QoQ basis.
The YoY increase was mainly attributable to an expansion of our
Uzbek business, which resulted in an increase in the number of
employees, as well as higher marketing expenses.
Overall, our cost to income ratio improved both on a YoY basis
and amounted to 35.4% .
In thousands of GEL 3Q'21 2Q'21 3Q'20 Change YoY Change QoQ
------------------------------------------- ---------- ---------- ---------- ----------- -----------
Operating expenses
------------------------------------------- ---------- ---------- ---------- ----------- -----------
Staff costs (74,643) (77,757) (62,255) 19.9% -4.0%
Provisions for liabilities and charges (54) (54) (2,059) -97.4% 0.0%
Depreciation and amortization (19,988) (19,337) (17,339) 15.3% 3.4%
Administrative & other operating expenses (37,010) (37,540) (31,140) 18.9% -1.4%
------------------------------------------- ---------- ---------- ---------- ----------- -----------
Total operating expenses (131,695) (134,688) (112,793) 16.8% -2.2%
------------------------------------------- ---------- ---------- ---------- ----------- -----------
Cost to income 35.4% 35.4% 38.5% -3.1 pp 0.0 pp
------------------------------------------- ---------- ---------- ---------- ----------- -----------
Bank's standalone cost to income(*) 25.8% 28.6% 33.2% -7.4 pp -2.8 pp
------------------------------------------- ---------- ---------- ---------- ----------- -----------
* For the ratio calculation all relevant group recurring costs
are allocated to the bank
Net Income
In 3Q, we continued to deliver strong profitability and
generated GEL 207.1 million in net profit. The growth on a YoY
basis was mainly due to increased operating income, spread across
all revenue categories, further supported by recoveries in loan
credit loss allowance expenses. The decline on a QoQ basis was
mostly attributable to an exceptionally high base in the previous
quarter ( mainly due to gain from the disposal of one of our
investment properties and recoveries in credit loss
allowances).
As a result, our ROE and ROA for the third quarter reached 24.1%
and 3.6%, accordingly.
In thousands of GEL 3Q'21 2Q'21 3Q'20 Change YoY Change QoQ
---------------------------------------------------- --------- --------- --------- ----------- -----------
Losses from modifications of financial instruments (104) (104) (1,763) -94.1% 0.0%
---------------------------------------------------- --------- --------- --------- ----------- -----------
Profit before tax 235,068 290,786 164,494 42.9% -19.2%
---------------------------------------------------- --------- --------- --------- ----------- -----------
Income tax expense (27,921) (40,394) (11,906) NMF -30.9%
---------------------------------------------------- --------- --------- --------- ----------- -----------
Profit for the period 207,147 250,392 152,588 35.8% -17.3%
---------------------------------------------------- --------- --------- --------- ----------- -----------
ROE 24.1% 31.0% 22.0% 2.1 pp -6.9 pp
---------------------------------------------------- --------- --------- --------- ----------- -----------
Bank's standalone ROE[12] 30.9% 34.7% 23.3% 7.6 pp -3.8 pp
---------------------------------------------------- --------- --------- --------- ----------- -----------
ROE before expected credit loss allowances 24.6% 26.0% 23.8% 0.8 pp -1.4 pp
---------------------------------------------------- --------- --------- --------- ----------- -----------
ROA 3.6% 4.4% 2.9% 0.7 pp -0.8 pp
---------------------------------------------------- --------- --------- --------- ----------- -----------
Bank's standalone ROA ([12]) 4.5% 4.7% 2.9% 1.6 pp -0.2 pp
---------------------------------------------------- --------- --------- --------- ----------- -----------
Funding and Liquidity
As of 30 September 2021, the total liquidity coverage ratio
(LCR), as defined by the NBG, was 116.5 % , above the 100% limit,
while the LCR in GEL and FC stood at 98.0% and 125.5% respectively,
above the respective limits of 75% and 100%. Over the same period,
NSFR stood at 127.1%, compared to the regulatory limit of 100%.
30-Sep-21 30-Jun-21 Change QoQ
--------------------------------------------------------------- ---------- ---------- -----------
Minimum net stable funding ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Net stable funding ratio as defined by the NBG 127.1% 130.6% -3.5 pp
Net loans to deposits + IFI funding 97.5% 102.8% -5.3 pp
Leverage (Times) 6.9x 6.6x 0.3x
Minimum total liquidity coverage ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Minimum LCR in GEL, as defined by the NBG 75% 75% 0.0 pp
Minimum LCR in FC, as defined by the NBG 100.0% 100.0% 0.0 pp
Total liquidity coverage ratio, as defined by the NBG 116.5% 127.1% -10.6 pp
LCR in GEL, as defined by the NBG 98.0% 122.9% -24.9 pp
LCR in FC, as defined by the NBG 125.5% 129.2% -3.7 pp
--------------------------------------------------------------- ---------- ---------- -----------
Regulatory Capital
As of 30 September 2021, our capital adequacy ratios were
comfortably above the minimum regulatory requirements.
The strong capital generation over the quarter fully offset the
interim dividend payments in the amount of GEL 81.8 million in
September.
On November 4, our subsidiary JSC TBC Bank successfully issued
additional Tier 1 Capital Perpetual Subordinated Notes, in the
amount of US$ 75 million, with a coupon of 8.9%. This AT1 issuance
will allow us to maintain solid growth while keeping a prudent
capital structure well above regulatory requirements.
In thousands of GEL 30-Sep-21 30-Jun-21 Change QoQ
------------------------------- ----------- ----------- -----------
CET 1 Capital 2,565,560 2,382,595 7.7%
Tier 1 Capital 2,955,910 2,837,805 4.2%
Total Capital 3,693,637 3,573,282 3.4%
Total Risk-weighted Exposures 19,143,450 18,275,845 4.7%
------------------------------- ----------- ----------- -----------
Minimum CET 1 ratio 11.3% 11.2%* 0.1 pp
CET 1 Capital adequacy ratio 13.4% 13.0% 0.4 pp
Minimum Tier 1 ratio 13.5% 13.5%* 0.0 pp
Tier 1 Capital adequacy ratio 15.4% 15.5% -0.1 pp
Minimum total capital adequacy ratio 17.9% 17.8%* 0.1 pp
Total Capital adequacy ratio 19.3% 19.6% -0.3 pp
-------------------------------------- ------ ------- --------
* Minimum requirements with restored buffers
Loan Portfolio
As of 30 September 2021, the gross loan portfolio reached GEL
15,963.5 million, up by 4.5% QoQ, or up by 5.7% on a constant
currency basis.
The proportion of gross loans denominated in foreign currency
decreased by 1.4pp QoQ and accounted for 54.9% of total loans,
while on a constant currency basis the proportion of gross loans
denominated in foreign currency decreased by 0.8pp QoQ and stood at
55.5%.
As of 30 September 2021, our market share in total loans stood
at 38.4%, up by 0.3pp QoQ. Our loan market share in legal entities
was 38.6%, up by 0.6pp QoQ, and our loan market share in
individuals stood at 38.2%, down by 0.1pp QoQ.
In thousands of GEL 30-Sep-21 30-Jun-21 Change QoQ
--------------------------------------- ----------- ----------- -----------
Loans and advances to customers
--------------------------------------- ----------- ----------- -----------
Retail 5,950,915 5,719,393 4.0%
Retail loans GEL 3,313,791 3,131,032 5.8%
Retail loans FC 2,637,124 2,588,361 1.9%
CIB 6,136,232 5,851,634 4.9%
CIB loans GEL 1,941,958 1,746,149 11.2%
CIB loans FC 4,194,274 4,105,485 2.2%
MSME 3,876,373 3,703,899 4.7%
MSME loans GEL 1,936,230 1,797,390 7.7%
MSME loans FC 1,940,143 1,906,509 1.8%
--------------------------------------- ----------- ----------- -----------
Total loans and advances to customers 15,963,520 15,274,926 4.5%
--------------------------------------- ----------- ----------- -----------
3Q'21 2Q'21 3Q'20 Change YoY Change QoQ
---------------------------- ------ ------ ------ ----------- -----------
Loan yields 10.5% 10.2% 10.0% 0.5 pp 0.3 pp
Loan yields GEL 15.4% 15.1% 15.3% 0.1 pp 0.3 pp
Loan yields FC 6.6% 6.7% 6.6% 0.0 pp -0.1 pp
Retail Loan Yields 12.0% 11.4% 11.5% 0.5 pp 0.6 pp
Retail loan yields GEL 16.3% 15.9% 16.6% -0.3 pp 0.4 pp
Retail loan yields FC 6.6% 6.4% 6.5% 0.1 pp 0.2 pp
CIB Loan Yields 9.1% 9.0% 8.5% 0.6 pp 0.1 pp
CIB loan yields GEL 14.1% 13.8% 13.3% 0.8 pp 0.3 pp
CIB loan yields FC 6.8% 7.1% 7.0% -0.2 pp -0.3 pp
MSME Loan Yields 10.5% 10.2% 9.9% 0.6 pp 0.3 pp
MSME loan yields GEL 15.0% 15.0% 14.6% 0.4 pp 0.0 pp
MSME loan yields FC 6.0% 6.1% 6.1% -0.1 pp -0.1 pp
---------------------------- ------ ------ ------ ----------- -----------
Loan Portfolio Quality
Total PAR 30 ratio stood at 2.3% and remained broadly stable on
a QoQ basis. The decrease in the retail segment on the back of
mortgage loans was offset by the MSME and CIB segments. The slight
worsening in the CIB segment was due to several borrowers with
overdue payments, which are expected to be repaid during the
following month, while the increase in the MSME segment was driven
by the SME sub-segment.
In 3Q, NPLs improved across all segments, mainly driven by
resumed repayments from restructured retail and MSME.
Our NPLs had a 94% provision coverage as of 30 September 2021
and an additional 75% collateral coverage. Only 15% of NPLs were
unsecured loans with strong provision coverage of 281%.
Par 30 30-Sep-21 30-Jun-21 Change QoQ
------------- ---------- ---------- -----------
Retail 2.7% 3.0% -0.3 pp
CIB 0.5% 0.3% 0.2 pp
MSME 4.6% 3.9% 0.7 pp
------------- ---------- ---------- -----------
Total Loans 2.3% 2.2% 0.1 pp
------------- ---------- ---------- -----------
Non-performing Loans 30-Sep-21 30-Jun-21 Change QoQ
---------------------- ----------- ---------- -----------
Retail 3.6% 4.0% -0.4 pp
CIB 1.5% 1.6% -0.1 pp
MSME 4.7% 5.4% -0.7 pp
---------------------- ----------- ---------- -----------
Total Loans 3.1% 3.4% -0.3 pp
---------------------- ----------- ---------- -----------
NPL Coverage [13] 30-Sep-21 30-Jun-21
------------------- ------------------------------------ ------------------------------------
Provision Coverage Total Coverage Provision Coverage Total Coverage
------------------- ------------------- --------------- ------------------- ---------------
Retail 120.7% 189.3% 118.9% 190.3%
CIB 82.5% 151.2% 82.9% 157.0%
MSME 68.7% 154.5% 63.3% 151.8%
------------------- ------------------- --------------- ------------------- ---------------
Total 94.3% 169.3% 91.3% 169.6%
------------------- ------------------- --------------- ------------------- ---------------
Cost of risk
The recoveries in credit loss allowances were due to a strong
performance across all segments and translated into a - 0.1% cost
of risk for 3Q 2021. In the retail segment, the main driver was
mortgage loans, as well as recoveries in the written-off unsecured
portfolio, while the improvement in the MSME cost of risk was
driven by both the Micro and SME sub-segments. The recoveries in
CIB were due to a strong loan book performance.
Cost of risk Change YoY Change
3Q'21 2Q'21 3Q'20 QoQ
-------------- ------ ------ ------ ----------- -------
Retail -0.2% -0.2% 0.2% -0.4 pp 0.0 pp
CIB -0.2% -2.0% 0.0% -0.2 pp 1.8 pp
MSME 0.1% -1.8% 0.4% -0.3 pp 1.9 pp
-------------- ------ ------ ------ ----------- -------
Total -0.1% -1.3% 0.0% -0.1 pp 1.2 pp
-------------- ------ ------ ------ ----------- -------
Deposit Portfolio
The total deposits portfolio increased by 11.4% QoQ, or 12.5% on
a constant currency basis , and amounted to GEL 14,338.5
million.
This QoQ growth was mainly driven by the CIB segment, which was
focused on attracting GEL deposits in line with our liquidity
needs. The proportion of deposits denominated in a foreign currency
increased by 2.0 pp QoQ and accounted for 63.7% of total deposits,
while on a constant currency basis the proportion of deposits
denominated in foreign currency decreased by 1.6 pp QoQ and stood
at 64.1%.
As of 30 September 2021, our market share in deposits amounted
to 40.1%, up by 2.3 pp QoQ, while our market share in deposits to
legal entities stood at 40.0%, up by 4.3 pp QoQ. Our market share
in deposits to individuals stood at 40.2%, up by 0.6 pp QoQ.
In thousands of GEL 30-Sep-21 30-Jun-21 Change QoQ
-------------------------- ----------- ----------- -----------
Customer Accounts
-------------------------- ----------- ----------- -----------
Retail 5,593,535 5,301,114 5.5%
Retail deposits GEL 1,353,608 1,282,793 5.5%
Retail deposits FC 4,239,927 4,018,321 5.5%
CIB 6,834,386 5,939,188 15.1%
CIB deposits GEL 2,681,148 2,218,972 20.8%
CIB deposits FC 4,153,238 3,720,216 11.6%
MSME 1,433,603 1,384,189 3.6%
MSME deposits GEL 688,598 662,605 3.9%
MSME deposits FC 745,005 721,584 3.2%
-------------------------- ----------- ----------- -----------
Total Customer Accounts* 14,338,537 12,870,418 11.4%
-------------------------- ----------- ----------- -----------
* Total deposit portfolio includes Ministry of Finacne deposits
in the amount of, GEL 246 million and GEL 477 million as of 30 June
2021 and 30 September 2021, respectively.
3Q'21 2Q'21 3Q'20 Change Change
YoY QoQ
------------------------------ ------ ------ ------ -------- --------
Deposit rates 3.5% 3.4% 3.7% -0.2 pp 0.1 pp
Deposit rates GEL 6.9% 6.6% 6.7% 0.2 pp 0.3 pp
Deposit rates FC 1.6% 1.7% 2.0% -0.4 pp -0.1 pp
Retail Deposit Yields 2.3% 2.2% 2.7% -0.4 pp 0.1 pp
Retail deposit rates GEL 4.8% 4.7% 5.5% -0.7 pp 0.1 pp
Retail deposit rates FC 1.5% 1.5% 1.8% -0.3 pp 0.0 pp
CIB Deposit Yields 4.5% 4.0% 4.4% 0.1 pp 0.5 pp
CIB deposit rates GEL 8.5% 8.3% 7.8% 0.7 pp 0.2 pp
CIB deposit rates FC 1.9% 2.1% 2.5% -0.6 pp -0.2 pp
MSME Deposit Yields 0.9% 0.8% 1.0% -0.1 pp 0.1 pp
MSME deposit rates GEL 1.6% 1.4% 1.6% 0.0 pp 0.2 pp
MSME deposit rates FC 0.2% 0.3% 0.4% -0.2 pp -0.1 pp
------------------------------ ------ ------ ------ -------- --------
Segment definition and PL
Business Segments
The segment definitions are as follows:
-- Corporate and Investment Banking (CIB) - a legal entity/group
of affiliated entities with an annual revenue exceeding GEL 12.0
million or which has been granted facilities of more than GEL 5.0
million. Some other business customers may also be assigned to the
CIB segment or transferred to the MSME segment on a discretionary
basis. In addition, CIB includes Wealth Management private banking
services to high-net-worth individuals with a threshold of US$
250,000 on assets under management (AUM), as well as on a
discretionary basis;
-- Retail - non-business individual customers; or individual
customers of the fully digital bank, Space.
-- MSME - business customers who are not included in the CIB segment;
-- Corporate centre and other operations - comprises the
Treasury, other support and back office functions, and non-banking
subsidiaries of the Group.
Business customers are all legal entities or individuals who
have been granted a loan for business purposes.
Income Statement by Segments
3Q'21 Retail MSME CIB Corp. Centre Total
------------------------------------- --------- --------- --------- ------------- ----------
Interest income 176,551 100,263 140,501 59,321 476,636
Interest expense (32,230) (3,244) (72,311) (119,206) (226,991)
Net gains from currency swaps - - - 9,745 9,745
Net transfer pricing (44,594) (41,080) 22,192 63,482 -
Net interest income 99,727 55,939 90,382 13,342 259,390
------------------------------------- --------- --------- --------- ------------- ----------
Fee and commission income 68,712 14,615 31,588 7,775 122,690
Fee and commission expense (18,529) (9,542) (22,971) (3,017) (54,059)
Net fee and commission income 50,183 5,073 8,617 4,758 68,631
------------------------------------- --------- --------- --------- ------------- ----------
Net insurance premium earned
after claims and acquisition
costs - - - 6,019 6,019
Net gains/(losses) from currency
derivatives, foreign currency
operations and translation 10,643 6,867 15,604 (4,012) 29,102
Gains less Losses from Disposal
of Investment Securities Measured
at Fair Value through Other
Comprehensive Income - - 9 3,854 3,863
Other operating income 1,845 264 485 2,204 4,798
Share of profit of associates - - - 170 170
Other operating non-interest
income and insurance profit 12,488 7,131 16,098 8,235 43,952
------------------------------------- --------- --------- --------- ------------- ----------
Recovery of/(charges to) credit
loss allowance for loans to
customers 2,297 (852) 2,944 - 4,389
Recovery of/(charges to) credit
loss allowance for performance
guarantees and credit related
commitments 33 196 (6,926) - (6,697)
Recovery of/(charges to) credit
loss allowance for net investments
in leases - - - 142 142
Credit loss allowance for other
financial assets 17 - 533 (3,587) (3,037)
Recovery of/(charges to) credit
loss allowance for financial
assets measured at fair value
through other comprehensive
income - - 192 232 424
Net impairment of non-financial
assets 125 47 15 (514) (327)
Profit/(loss) before G&A expenses
and income taxes 164,870 67,534 111,855 22,608 366,867
------------------------------------- --------- --------- --------- ------------- ----------
Losses from modifications of
financial instruments (46) - (58) - (104)
------------------------------------- --------- --------- --------- ------------- ----------
Staff costs (33,089) (14,090) (11,570) (15,894) (74,643)
Depreciation and amortization (12,895) (2,921) (1,344) (2,828) (19,988)
Provision for liabilities and
charges - - - (54) (54)
Administrative and other operating
expenses (18,049) (4,924) (4,092) (9,945) (37,010)
Operating expenses (64,033) (21,935) (17,006) (28,721) (131,695)
------------------------------------- --------- --------- --------- ------------- ----------
Profit before tax 100,791 45,599 94,791 (6,113) 235,068
------------------------------------- --------- --------- --------- ------------- ----------
Income tax expense (8,158) (3,713) (7,941) (8,109) (27,921)
------------------------------------- --------- --------- --------- ------------- ----------
Profit 92,633 41,886 86,850 (14,222) 207,147
------------------------------------- --------- --------- --------- ------------- ----------
Consolidated Financial Statements of TBC Bank Group PLC
Consolidated Balance sheet
In thousands of GEL Sep-21 Jun-21
------------------------------------------------------- ----------- ----------------------
Cash and cash equivalents 1,960,441 1,414,414
Due from other banks 64,894 59,314
Mandatory cash balances with National Bank of Georgia 2,095,848 2,117,157
Loans and advances to customers 15,504,311 14,796,968
Investment securities measured at fair value through
other comprehensive income 2,253,510 2,022,385
Bonds carried at amortized cost 1,118 10,069
Net investments in leases 237,557 245,261
Investment properties 32,444 33,407
Current income tax prepayment 4,856 14,966
Deferred income tax asset 9,216 6,747
Other financial assets[14] 383,890 287,761
Other assets 352,191 311,218
Premises and equipment 378,514 371,909
Right of use assets 52,944 51,160
Intangible assets 305,088 284,555
Goodwill 59,964 59,964
Investments in associates 4,455 4,286
TOTAL ASSETS 23,701,241 22,091,541
------------------------------------------------------- ----------- ----------------------
LIABILITIES
Due to credit institutions 3,361,515 3,482,830
Customer accounts 14,338,537 12,870,418
Lease liabilities 53,627 53,755
Other financial liabilities (14) 165,710 124,308
Current income tax liability 16,559 653
Debt Securities in issue 1,507,969 1,445,614
Deferred income tax liability 7,684 18,457
Provisions for liabilities and charges 28,275 21,435
Other liabilities 137,086 101,265
Subordinated debt 636,086 635,981
TOTAL LIABILITIES 20,253,048 18,754,716
------------------------------------------------------- ----------- ----------------------
EQUITY
Share capital 1,682 1,682
Shares held by trust (25,489) (25,489)
Share premium 848,459 848,459
Retained earnings 2,790,447 2,680,951
Group re-organisation reserve (162,167) (162,167)
Share based payment reserve (8,811) (15,348)
Fair value reserve (1,207) 170
Cumulative currency translation reserve (7,065) (5,199)
Net assets attributable to owners 3,435,849 3,323,059
------------------------------------------------------- ----------- ----------------------
Non-controlling interest 12,344 13,766
------------------------------------------------------- ----------- ----------------------
TOTAL EQUITY 3,448,193 3,336,825
------------------------------------------------------- ----------- ----------------------
TOTAL LIABILITIES AND EQUITY 23,701,241 22,091,541
------------------------------------------------------- ----------- ----------------------
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
In thousands of GEL 3Q'21 2Q'21 3Q'20
--------------------------------------------------------------- ------------------------- ------------ ------------
Interest income 476,636 458,572 426,232
Interest expense (226,991) (223,456) (217,639)
Net gains from currency swaps 9,745 7,651 3,191
Net interest income 259,390 242,767 211,784
--------------------------------------------------------------- ------------------------- ------------ ------------
Fee and commission income 122,690 105,045 87,677
Fee and commission expense (54,059) (42,037) (40,178)
Net fee and commission income 68,631 63,008 47,499
--------------------------------------------------------------- ------------------------- ------------ ------------
Net insurance premiums earned 16,818 16,146 14,199
Net insurance claims incurred and agents' commissions (10,799) (10,676) (8,258)
--------------------------------------------------------------- ------------------------- ------------ ------------
Net insurance premium earned after claims and acquisition
costs 6,019 5,470 5,941
--------------------------------------------------------------- ------------------------- ------------ ------------
Net gains/(losses) from currency derivatives, foreign currency
operations and translation 29,102 31,688 22,174
Gains less losses from disposal of investment securities
measured at fair value through other
comprehensive income 3,863 4,653 -
Other operating income 4,798 32,491 5,645
Share of profit of associates 170 210 153
Other operating non-interest income 37,933 69,042 27,972
--------------------------------------------------------------- ------------------------- ------------ ------------
Recovery of/(charges to) credit loss allowance for loans to
customers 4,389 50,112 (5,884)
Recovery of/(charges to) credit loss allowance for net
investments in leases 142 (1,204) (2,661)
Recovery of/(charges to) credit loss allowance for performance
guarantees and credit related
commitments (6,697) 1,284 1,968
Credit loss allowance for other financial assets (3,037) (5,689) (6,481)
Recovery of/(charges to) credit loss allowance for financial
assets measured at fair value
through other comprehensive income 424 1,248 (368)
Net impairment of non-financial assets (327) (460) (720)
Operating profit after expected credit losses 366,867 425,578 279,050
--------------------------------------------------------------- ------------------------- ------------ ------------
Losses from modifications of financial instruments (104) (104) (1,763)
--------------------------------------------------------------- ------------------------- ------------ ------------
Staff costs (74,643) (77,757) (62,255)
Depreciation and amortization (19,988) (19,337) (17,339)
(Provision for)/ recovery of liabilities and charges (54) (54) (2,059)
Administrative and other operating expenses (37,010) (37,540) (31,140)
Operating expenses (131,695) (134,688) (112,793)
--------------------------------------------------------------- ------------------------- ------------ ------------
Profit before tax 235,068 290,786 164,494
--------------------------------------------------------------- ------------------------- ------------ ------------
Income tax expense (27,921) (40,394) (11,906)
------------------------- ------------ ------------
Profit 207,147 250,392 152,588
--------------------------------------------------------------- ------------------------- ------------ ------------
Other comprehensive income:
--------------------------------------------------------------- ------------------------- ------------ ------------
Items that may be reclassified subsequently to profit or loss:
--------------------------------------------------------------- ------------------------- ------------ ------------
Movement in fair value reserve (1,375) (36,758) 9,486
--------------------------------------------------------------- ------------------------- ------------ ------------
Exchange differences on translation to presentation currency (1,866) (5,976) 4,753
--------------------------------------------------------------- ------------------------- ------------ ------------
Other comprehensive income for the period (3,241) (42,734) 14,239
--------------------------------------------------------------- ------------------------- ------------ ------------
Total comprehensive income for the period 203,906 207,658 166,827
--------------------------------------------------------------- ------------------------- ------------ ------------
Profit attributable to:
--------------------------------------------------------------- ------------------------- ------------ ------------
- Shareholders of TBCG 204,892 247,945 150,756
--------------------------------------------------------------- ------------------------- ------------ ------------
- Non-controlling interest 2,255 2,447 1,832
--------------------------------------------------------------- ------------------------- ------------ ------------
Profit 207,147 250,392 152,588
--------------------------------------------------------------- ------------------------- ------------ ------------
Total comprehensive income is attributable to:
--------------------------------------------------------------- ------------------------- ------------ ------------
- Shareholders of TBCG 201,662 205,195 165,002
--------------------------------------------------------------- ------------------------- ------------ ------------
- Non-controlling interest 2,244 2,463 1,825
--------------------------------------------------------------- ------------------------- ------------ ------------
Total comprehensive income for the period 203,906 207,658 166,827
--------------------------------------------------------------- ------------------------- ------------ ------------
Consolidated Statement of Cash Flows
In thousands of GEL 30-Sep-2021 30-Jun-2021
---------------------------------------------------- ---------------------- --------------------
Cash flows from (used in) operating activities
Interest received 1,393,345 906,444
Interest received on currency swaps 22,894 13,149
Interest paid (658,355) (452,751)
Fees and commissions received 284,273 170,658
Fees and commissions paid (133,149) (78,793)
Insurance and reinsurance received 68,437 43,358
Insurance claims paid (26,354) (16,239)
Income received from trading in foreign currencies 58,592 32,659
Other operating income received 53,477 28,880
Staff costs paid (227,775) (134,594)
Administrative and other operating expenses
paid (114,125) (79,430)
Income tax paid (11,893) (4,446)
Cash flows from operating activities before
changes in operating assets and liabilities 709,367 428,895
---------------------------------------------------- ---------------------- --------------------
Net change in operating assets
Due from other banks and mandatory cash balances
with the National Bank of Georgia 57,244 23,326
Loans and advances to customers (1,650,871) (711,980)
Net investments in lease 28,358 24,158
Other financial assets (159,404) (38,835)
Other assets 5,740 14,151
Net change in operating liabilities
Due to credit institutions 91,328 11,940
Customer accounts 2,287,018 667,190
Other financial liabilities (115,735) (137,291)
Other liabilities and provision for liabilities
and charges 23,992 16,659
Net cash flows (used in)/from operating activities 1,277,037 298,213
---------------------------------------------------- ---------------------- --------------------
Cash flows from (used in) investing activities
Acquisition of investment securities measured
at fair value through other comprehensive
income (598,141) (196,871)
Proceeds from redemption at maturity/disposal
of investment securities measured at fair
value through other comprehensive income 929,431 757,583
Proceeds from redemption of bonds carried
at amortised cost 28,351 19,633
Acquisition of premises, equipment and intangible
assets (111,148) (91,993)
Proceeds from disposal of premises, equipment
and intangible assets 13,833 6,334
Proceeds from disposal of investment property 44,464 20,210
Net cash used in investing activities 306,790 514,896
---------------------------------------------------- ---------------------- --------------------
Cash flows from (used in) financing activities
Proceeds from other borrowed funds 1,755,171 1,757,879
Redemption of other borrowed funds (2,914,700) (2,736,476)
Repayment of principal of lease liabilities (8,417) (5,591)
Redemption of subordinated debt (12,562) (12,562)
Proceeds from debt securities in issue 49,346 -
Dividends paid (84,159) (1,741)
Net cash flows from financing activities (1,215,321) (998,491)
---------------------------------------------------- ---------------------- --------------------
Effect of exchange rate changes on cash and
cash equivalents (43,470) (35,609)
---------------------------------------------------- ---------------------- --------------------
Net (decrease)/ increase in cash and cash
equivalents 325,036 (220,991)
---------------------------------------------------- ---------------------- --------------------
Cash and cash equivalents at the beginning
of the year 1,635,404 1,635,405
---------------------------------------------------- ---------------------- --------------------
Cash and cash equivalents at the end of the
year 1,960,440 1,414,414
---------------------------------------------------- ---------------------- --------------------
Key Ratios
Average Balances
The average balances included in this document are calculated as
the average of the relevant monthly balances as of each month-end.
Balances have been extracted from TBC's unaudited and consolidated
management accounts, which were prepared from TBC's accounting
records. These were used by the management for monitoring and
control purposes.
Key Ratios
Ratios (based on monthly averages, where applicable) 3Q'21 2Q'21 3Q'20
------------------------------------------------------ ------- ------- -------
Profitability ratios:
ROE(1) 24.1% 31.0% 22.0%
ROA(2) 3.6% 4.4% 2.9%
ROE before expected credit loss allowances(3) 24.6% 26.0% 23.8%
Cost to income(4) 35.4% 35.4% 38.5%
NIM(5) 5.3% 5.0% 4.6%
Loan yields(6) 10.5% 10.2% 10.0%
Deposit rates(7) 3.5% 3.4% 3.7%
Yields on interest earning assets(8) 9.9% 9.5% 9.4%
Cost of funding(9) 4.7% 4.6% 4.9%
Spread(10) 5.2% 4.9% 4.5%
------------------------------------------------------ ------- ------- -------
Asset quality & portfolio concentration:
Cost of risk(11) -0.1% -1.3% 0.2%
PAR 90 to Gross Loans(12) 1.3% 1.2% 1.3%
NPLs to Gross Loans(13) 3.1% 3.4% 3.5%
NPL provision coverage(14) 94.3% 91.3% 104.6%
Total NPL coverage(15) 169.3% 169.6% 180.0%
Credit loss level to Gross Loans(16) 2.9% 3.1% 3.7%
Related Party Loans to Gross Loans(17) 0.0% 0.1% 0.1%
Top 10 Borrowers to Total Portfolio(18) 7.7% 7.8% 7.9%
Top 20 Borrowers to Total Portfolio(19) 11.4% 11.9% 12.0%
------------------------------------------------------ ------- ------- -------
Capital & liquidity positions:
Net Loans to Deposits plus IFI* Funding(20) 97.5% 102.8% 97.5%
Net Stable Funding Ratio(21) 127.1% 130.6% 127.0%
Liquidity Coverage Ratio(22) 116.5% 127.1% 123.6%
Leverage(23) 6.9x 6.6x 7.7x
CET 1 CAR (Basel III)(24) 13.4% 13.0% 9.9%
Tier 1 CAR (Basel III)(25) 15.4% 15.5% 12.7%
Total 1 CAR (Basel III)(26) 19.3% 19.6% 17.1%
------------------------------------------------------ ------- ------- -------
* International Financial Institutions
Ratio definitions
1. Return on average total equity (ROE) equals net income
attributable to owners divided by the monthly average of total
shareholders' equity attributable to the PLC's equity holders for
the same period; annualised where applicable.
2. Return on average total assets (ROA) equals net income of the
period divided by monthly average total assets for the same period;
annualised where applicable.
3. Return on average total equity (ROE) before expected credit
loss allowances equals net income attributable to owners excluding
all credit loss allowance with respective tax effects, but after
net modification losses divided by the monthly average of total
shareholders' equity attributable to the PLC's equity holders for
the same period.
4. Cost to income ratio equals total operating expenses for the
period divided by the total revenue for the same period. (Revenue
represents the sum of net interest income, net fee and commission
income and other non-interest income).
5. Net interest margin (NIM) is net interest income divided by
monthly average interest-earning assets; annualised where
applicable. Interest-earning assets include investment securities
(excluding CIB shares), net investment in finance lease, net loans,
and amounts due from credit institutions.
6. Loan yields equal interest income on loans and advances to
customers divided by monthly average gross loans and advances to
customers; annualised where applicable.
7. Deposit rates equal interest expense on customer accounts
divided by monthly average total customer deposits; annualised
where applicable.
8. Yields on interest earning assets equal total interest income
divided by monthly average interest earning assets; annualised
where applicable.
9. Cost of funding equals total interest expense divided by
monthly average interest bearing liabilities; annualised where
applicable.
10. Spread equals difference between yields on interest earning
assets (including but not limited to yields on loans, securities
and due from banks) and cost of funding (including but not limited
to cost of deposits, cost on borrowings and due to banks).
11. Cost of risk equals credit loss allowance for loans to
customers divided by monthly average gross loans and advances to
customers; annualised where applicable.
12. PAR 90 to gross loans ratio equals loans for which principal
or interest repayment is overdue for more than 90 days divided by
the gross loan portfolio for the same period.
13. NPLs to gross loans equals loans with 90 days past due on
principal or interest payments, and loans with a well-defined
weakness, regardless of the existence of any past-due amount or of
the number of days past due divided by the gross loan portfolio for
the same period.
14. NPL provision coverage equals total credit loss allowance
for loans to customers divided by the NPL loans.
15. Total NPL coverage equals total credit loss allowance plus
the minimum of collateral amount of the respective NPL loan (after
applying haircuts in the range of 0%-50% for cash, gold, real
estate and PPE) and its gross loan exposure divided by the gross
exposure of total NPL loans.
16. Credit loss level to gross loans equals credit loss
allowance for loans to customers divided by the gross loan
portfolio for the same period.
17. Related party loans to total loans equals related party
loans divided by the gross loan portfolio.
18. Top 10 borrowers to total portfolio equals the total loan
amount of the top 10 borrowers divided by the gross loan
portfolio.
19. Top 20 borrowers to total portfolio equals the total loan
amount of the top 20 borrowers divided by the gross loan
portfolio.
20. Net loans to deposits plus IFI funding ratio equals net
loans divided by total deposits plus borrowings received from
international financial institutions.
21. Net stable funding ratio equals the available amount of
stable funding divided by the required amount of stable funding as
defined by NBG in line with Basel III guidelines. Calculations are
made for TBC Bank stand-alone, based on local standards.
22. Liquidity coverage ratio equals high-quality liquid assets
divided by the total net cash outflow amount as defined by the NBG.
Calculations are made for TBC Bank stand-alone, based on local
standards.
23. Leverage equals total assets to total equity.
24. CET 1 CAR equals CET 1 capital divided by total risk
weighted assets, both calculated in accordance with requirements of
the NBG Basel III standards. Calculations are made for TBC Bank
stand-alone, based on local standards.
25. Tier 1 CAR equals tier I capital divided by total risk
weighted assets, both calculated in accordance with the
requirements of the NBG Basel III standards. Calculations are made
for TBC Bank stand-alone, based on local standards.
26. Total CAR equals total capital divided by total risk
weighted assets, both calculated in accordance with the
requirements of the NBG Basel III standards. Calculations are made
for TBC Bank stand-alone, based on local standards.
Exchange Rates
To calculate the QoQ growth of the Balance Sheet items without
the currency exchange rate effect, we used the USD/GEL exchange
rate of 3.1603 as of 30 June 2021. As of 30 September 2021 the
USD/GEL exchange rate equaled 3.1228. For P&L items growth
calculations without currency effect, we used the average USD/GEL
exchange rate for the following periods: 3Q 2021 of 3.1204, 2Q 2021
of 3.3271, 3Q 2020 of 3.1021.
Unaudited Consolidated Financial Results Overview for 9M
2021
This statement provides a summary of the unaudited business and
financial trends for 9M 2021 for TBC Bank Group plc and its
subsidiaries. The financial information and trends are
unaudited.
TBC Bank Group PLC's financial results has been prepared in
accordance with UK-adopted International Accounting Standard (IAS)
34 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the Financial Conduct Authority
(FCA).
Financial Highlights
Income Statement Highlights
--------------------------------------------------- ------------------------------------------------------------
in thousands of GEL 9M'21 9M'20 Change YoY
---------------------------------------------------- ----------------------- --------------------- -----------
Net interest income 727,288 604,108 20.4%
---------------------------------------------------- ----------------------- --------------------- -----------
Net fee and commission income 176,932 130,568 35.5%
---------------------------------------------------- ----------------------- --------------------- -----------
Other operating non-interest income[15] 159,129 98,818 61.0%
---------------------------------------------------- ----------------------- --------------------- -----------
Total credit loss allowance 22,941 (273,822) NMF
---------------------------------------------------- ----------------------- --------------------- -----------
Operating profit after expected credit losses 1,086,290 559,672 94.1%
---------------------------------------------------- ----------------------- --------------------- -----------
Losses from modifications of financial instrument (1,695) (35,933) NMF
---------------------------------------------------- ----------------------- --------------------- -----------
Operating expenses (388,623) (314,328) 23.6%
---------------------------------------------------- ----------------------- --------------------- -----------
Profit before tax 695,972 209,411 NMF
---------------------------------------------------- ----------------------- --------------------- -----------
Income tax expense/(credit) (85,446) 12,377 NMF
---------------------------------------------------- ----------------------- --------------------- -----------
Profit for the period 610,526 221,788 NMF
---------------------------------------------------- ----------------------- --------------------- -----------
Balance Sheet and Capital Highlights
---------------------- ----------------------------
in thousands of GEL Sep-21 Sep-20 Change
YoY
---------------------------------------- ---------------------- ------------------- -------
Total Assets 23,701,241 21,866,972 8.4%
Gross Loans 15,963,520 14,590,777 9.4%
Customer Deposits 14,338,537 12,343,414 16.2%
Total Equity 3,448,193 2,826,387 22.0%
CET 1 Capital (Basel III) 2,565,560 1,738,739 47.6%
Tier 1 Capital (Basel III) 2,955,910 2,211,178 33.7%
Total Capital (Basel III) 3,693,637 2,984,109 23.8%
Risk Weighted Assets (Basel III) 19,143,450 17,478,610 9.5%
---------------------------------------- ---------------------- ------------------- -------
Key Ratios 9M'21 9M'20 Change YoY
----------------------------------------- ------- ------- -----------
ROE 25.3% 11.0% 14.3 pp
Bank's standalone ROE[16] 32.2% 21.50% 10.7 pp
ROA 3.5% 1.5% 2.0 pp
Bank's standalone ROA ([16]) 4.6% 2.7% 1.9 pp
NIM 5.0% 4.7% 0.3 pp
Cost to income 36.5% 37.7% -1.2 pp
Bank's standalone cost to income ([16]) 28.8% 32.4% -3.7 pp
Cost of risk -0.3% 2.0% -2.3 pp
NPL to gross loans 3.1% 3.5% -0.5 pp
NPL provision coverage ratio 94.3% 104.6% -10.4 pp
Total NPL coverage ratio 169.3% 180.0% -10.7 pp
CET 1 CAR (Basel III) 13.4% 9.9% 3.5 pp
Tier 1 CAR (Basel III) 15.4% 12.7% 2.7 pp
Total CAR (Basel III) 19.3% 17.1% 2.2 pp
Leverage (Times) 6.9x 7.7x -0.8x
----------------------------------------- ------- ------- -----------
Net Interest Income
In 9M 2021, net interest income amounted to GEL 727.3 million,
up by 20.4% YoY, whereby interest income and
interest expense increased by 13.3% and 7.3%, respectively.
The YoY increase in interest income was primarily related to an
increase in interest income from loans, which was driven by an
increase in the gross loan portfolio of GEL 1,372.7 million, or
9.4% and an increase in loan yield of 0.2pp due to a higher
refinance rate, as well as s shift of the portfolio composition
towards GEL loans .
The increase in interest expense was primarily related to an
increase in interest expense from deposits due to an increase in
the respective portfolio of GEL 1,995.1 million, or 16.2%. Over the
same period, the cost of deposits declined by 0.1 pp. In addition,
the change in the liability structure towards deposits had a
positive effect on the cost of funding. As a result, the cost of
funding decreased by 0.4 pp YoY and stood at 4.6% in 9M 2021.
In 9M 2021, our NIM stood at 5.0%, up by 0.3 pp YoY .
In thousands of GEL 9M'21 9M'20 Change YoY
------------------------------- ---------- ---------- -----------
Interest income 1,375,821 1,214,125 13.3%
------------------------------- ---------- ---------- -----------
Interest expense (671,427) (625,730) 7.3%
------------------------------- ---------- ---------- -----------
Net gains from currency swaps 22,894 15,713 45.7%
------------------------------- ---------- ---------- -----------
Net interest income 727,288 604,108 20.4%
------------------------------- ---------- ---------- -----------
NIM 5.0% 4.7% 0.3 pp
------------------------------- ---------- ---------- -----------
Net fee and commission income
In 9M 2021, net fee and commission income totalled GEL 176.9
million, up by 35.5% YoY. The increase was spread across all major
sub-categories and was mainly driven by increased business
activities combined with our various initiatives including: a
review of the pricing model of our merchants together with the
acquisition of several large merchants, the popularization of our
subscription model for mass retail customers, as well as the
fine-tuning of our offerings for affluent customers. This growth
was further supported by our fast growing Uzbek subsidiary,
Payme.
In thousands of GEL 9M'21 9M'20 Change YoY
----------------------------------------- -------- -------- -----------
Net fee and commission income
----------------------------------------- -------- -------- -----------
Card operations 54,226 34,820 55.7%
Settlement transactions 84,388 60,547 39.4%
Guarantees issued and letters of credit 29,151 27,543 5.8%
Other 9,167 7,658 19.7%
----------------------------------------- -------- -------- -----------
Total net fee and commission income 176,932 130,568 35.5%
----------------------------------------- -------- -------- -----------
Other Non-Interest Income
Total other non-interest income increased by 61.0% YoY and
amounted to GEL 159.1 million in 9M 2021. The YoY increase was
driven by growth in net income from foreign currency operations and
growth in other operating income. The former increase was driven by
an increase in the scale of FX transactions, while the later
increase was driven by a gain from the disposal of one of our
investment properties, in the amount of GEL 26.3 million.
In thousands of GEL 9M'21 9M'20 Change YoY
------------------------------------ -------- ------- -----------
Other non-interest income
------------------------------------ -------- ------- -----------
Net income from foreign currency
operations 88,994 69,910 27.3%
Net insurance premium earned after
claims and acquisition costs[17] 15,892 16,222 -2.0%
Other operating income 54,243 12,686 NMF
------------------------------------ -------- ------- -----------
Total other non-interest income 159,129 98,818 61.0%
------------------------------------ -------- ------- -----------
Credit Loss Allowance
Total credit loss allowance in 9M 2021 amounted to GEL 22.9
million. This significant decrease on a year-on-year basis was
driven by recoveries in 2Q and 3Q 2021 across all segments and by a
high base in 9M 2020 due to the creation of COVID-19 related
provisions.
In thousands of GEL 9M'21 9M'20 Change YoY
---------------------------------------- ---------- ---------- -----------
Recovery of/(charges to) credit
loss allowance for loans to customers 36,952 (255,100) NMF
Credit loss allowance for other
transactions (14,011) (18,722) -25.2%
---------- ---------- -----------
Total credit loss allowance 22,941 (273,822) NMF
---------------------------------------- ---------- ---------- -----------
Operating income after credit loss
allowance 1,086,290 559,672 94.1%
---------------------------------------- ---------- ---------- -----------
Cost of risk -0.3% 2.0% -2.3 pp
---------------------------------------- ---------- ---------- -----------
NMF - no meaningful figures
Operating Expenses
In 9M 2021, our total operating expenses expanded by 23.6%
YoY.
The YoY growth in staff costs was mainly attributable to the low
base of share-based payments in 9M 2020, as a result of the
reversal of management's bonuses and an increase in staff bonuses
related to revival of business activities in 9M 2021. Another
driver was the expansion of our Uzbek business, which resulted in
an increase in the number of employees.
The increase in administrative and other operating expenses was
mainly related to our Uzbek business , as well as the revival of
business activities in Georgia.
The cost to income ratio stood at 36.5%, down by 1.2 pp YoY,
while the Bank's standalone cost to income was 28.8%, down by 3.7
pp over the same period.
In thousands of GEL 9M'21 9M'20 Change YoY
------------------------------------------- ---------- ---------- -----------
Operating expenses
------------------------------------------- ---------- ---------- -----------
Staff costs (222,714) (176,261) 26.4%
Provisions for liabilities and charges (63) (1,982) -96.8%
Depreciation and amortization (56,689) (49,554) 14.4%
Administrative & other operating expenses (109,157) (86,531) 26.1%
------------------------------------------- ---------- ---------- -----------
Total operating expenses (388,623) (314,328) 23.6%
------------------------------------------- ---------- ---------- -----------
Cost to income 36.5% 37.7% -1.2 pp
------------------------------------------- ---------- ---------- -----------
Bank's standalone cost to income(*) 28.8% 32.4% -3.7 pp
------------------------------------------- ---------- ---------- -----------
* For the ratio calculation all relevant group recurring costs
are allocated to the bank
NMF - no meaningful figures
Net Income
In 9M 2021, our solid profitability was related to a strong
performance in operating profit across all categories, as well as
recoveries in credit loss allowances across all segments.
As a result, our ROE stood at 25.3%, ROE before expected credit
loss allowances stood at 24.4% and ROA stood at 3.5%.
In thousands of GEL 9M'21 9M'20 Change YoY
-------------------------------------------- --------- --------- -----------
Losses from modifications of financial
instruments (1,695) (35,933) -95.3%
-------------------------------------------- --------- --------- -----------
Profit before tax 695,972 209,411 NMF
-------------------------------------------- --------- --------- -----------
Income tax expense/(credit) (85,446) 12,377 NMF
-------------------------------------------- --------- --------- -----------
Profit for the period 610,526 221,788 NMF
-------------------------------------------- --------- --------- -----------
ROE 25.3% 11.0% 14.3 pp
-------------------------------------------- --------- --------- -----------
Bank's standalone ROE[18] 32.2% 21.5% 10.7 pp
-------------------------------------------- --------- --------- -----------
ROE before expected credit loss allowances 24.4% 23.6% 0.8 pp
-------------------------------------------- --------- --------- -----------
ROA 3.5% 1.5% 2.0 pp
-------------------------------------------- --------- --------- -----------
Bank's standalone ROA ([18]) 4.6% 2.7% 1.9 pp
-------------------------------------------- --------- --------- -----------
Funding and Liquidity
As of 30 September 2021, the total liquidity coverage ratio, as
defined by the NBG, was 116.5 % , above the 100% limit, while the
LCR in GEL and FC stood at 98.0% and 125.5% respectively, above the
respective limits of 75% and 100%.
As of 30 September 2021, NSFR stood at 127.1%, compared to the
regulatory limit of 100%.
30-Sep-21 30-Sep-20 Change YoY
--------------------------------------------------------------- ---------- ---------- -----------
Minimum net stable funding ratio, as defined by the NBG 100% 100% 0.0 pp
Net stable funding ratio as defined by the NBG 127.1% 127.5% 3.1 pp
Net loans to deposits + IFI funding 97.5% 105.3% -7.8 pp
Leverage (Times) 6.9x 7.7x -0.8x
Minimum total liquidity coverage ratio, as defined by the NBG 100.0% 100.0% 0.0 pp
Minimum LCR in GEL, as defined by the NBG 75%* n/a NMF
Minimum LCR in FC, as defined by the NBG 100.0% 100.0% 0.0 pp
Total liquidity coverage ratio, as defined by the NBG 116.5% 124.8% -8.3 pp
LCR in GEL, as defined by the NBG 98.0% 141.0% -43.0 pp
LCR in FC, as defined by the NBG 125.5% 117.3% 8.2 pp
--------------------------------------------------------------- ---------- ---------- -----------
* In May 2021, NBG restored the NBG GEL LCR limit, which was
temporarily removed for one year
Regulatory Capital
On a YoY basis, the Bank's CET1, Tier 1 and Total capital
adequacy ratios increased by 3.5 pp, 2.7 pp and 2.2 pp,
respectively. The increase was mainly driven by strong net income
generation and local currency appreciation, which was partially
offset by an increase in the loan book, and other changes in
capital and RWA.
In thousands of GEL 30-Sep-21 30-Sep-20 Change
YoY
-------------------------------------- ----------- ----------- -------
CET 1 Capital 2,565,560 1,738,739 47.6%
Tier 1 Capital 2,955,910 2,211,178 33.7%
Total Capital 3,693,637 2,984,109 23.8%
Total Risk-weighted Exposures 19,143,450 17,478,610 9.5%
-------------------------------------- ----------- ----------- -------
Minimum CET 1 ratio 11.3% 6.9% 4.4 pp
CET 1 Capital adequacy ratio 13.4% 9.9% 3.5 pp
Minimum Tier 1 ratio 13.5% 8.7% 4.8 pp
Tier 1 Capital adequacy ratio 15.4% 12.7% 2.7 pp
Minimum total capital adequacy ratio 17.9% 13.2% 4.7 pp
Total Capital adequacy ratio 19.3% 17.1% 2.2 pp
-------------------------------------- ----------- ----------- -------
Loan Portfolio
As of 30 September 2021, the gross loan portfolio reached GEL
15,963.5 million, up by 9.4% YoY or up by 12.6% on a constant
currency basis, with CIB and MSME segments showing the highest
growth rates of 16.5% and 15.8% respectively, followed by retail
with 7.0%, on a constant currency basis. The proportion of gross
loans denominated in foreign currency decreased by 6.5 pp YoY and
accounted for 54.9% of total loans, while on a constant currency
basis the proportion of gross loans denominated in foreign currency
was down by 5.2 pp YoY and stood at 56.2%.
As of 30 September 2021, our market share in total loans stood
at 38.4%, down by 0.9 pp YoY, while our loan market share in legal
entities was 38.6%, down by 0.2 pp over the same period, and our
loan market share in individuals stood at 38.2%, down by 1.6 pp
QoQ.
In thousands of GEL 30-Sep-21 30-Sep-20 Change YoY
--------------------------------------- ---------------------------- -------------------- -----------
Loans and advances to customers
--------------------------------------- ---------------------------- -------------------- -----------
Retail 5,950,915 5,696,529 4.5%
Retail loans GEL 3,313,791 2,811,912 17.8%
Retail loans FC 2,637,124 2,884,617 -8.6%
CIB 6,136,232 5,457,119 12.4%
CIB loans GEL 1,941,958 1,308,998 48.4%
CIB loans FC 4,194,274 4,148,121 1.1%
MSME 3,876,373 3,437,129 12.8%
MSME loans GEL 1,936,230 1,506,741 28.5%
MSME loans FC 1,940,143 1,930,388 0.5%
--------------------------------------- ---------------------------- -------------------- -----------
Total loans and advances to customers 15,963,520 14,590,777 9.4%
--------------------------------------- ---------------------------- -------------------- -----------
9M'21 9M'20 Change YoY
---------------------------- ------ ------ -----------
Loan yields 10.2% 10.0% 0.2 pp
Loan yields GEL 15.0% 15.2% -0.2 pp
Loan yields FC 6.6% 6.7% -0.1 pp
Retail Loan Yields 11.5% 11.3% 0.2 pp
Retail loan yields GEL 16.0% 16.4% -0.4 pp
Retail loan yields FC 6.4% 6.4% 0.0 pp
CIB Loan Yields 8.9% 8.7% 0.2 pp
CIB loan yields GEL 13.6% 13.3% 0.3 pp
CIB loan yields FC 7.0% 7.0% 0.0 pp
MSME Loan Yields 10.1% 10.2% -0.1 pp
MSME loan yields GEL 14.8% 15.0% -0.2 pp
MSME loan yields FC 6.0% 6.2% -0.2 pp
---------------------------- ------ ------ -----------
Loan Portfolio Quality
On a YoY basis, total par 30 increased by 0.6 pp. The increase
was mainly driven by the low base in September 2020, which in turn
was caused by the payment holidays offered to Retail and MSME
borrowers affected by the COVID-19 pandemic.
Our NPL ratio improved by 0.4 pp YoY and amounted to 3.1%. The
main driver was the CIB segment on the back of the recoveries of
several borrowers during the previous 12 months due to the improved
portfolio quality.
30-Sep-21 30-Sep-20 Change YoY
Par 30
------------- ---------- ---------- -----------
Retail 2.7% 1.6% 1.1 pp
CIB 0.5% 1.2% -0.7 pp
MSME 4.6% 2.9% 1.7 pp
------------- ---------- ---------- -----------
Total Loans 2.3% 1.7% 0.6 pp
------------- ---------- ---------- -----------
Non-performing Loans 30-Sep-21 30-Sep-20 Change YoY
---------------------- ---------- ---------- -----------
Retail 3.6% 3.4% 0.2 pp
CIB 1.5% 2.6% -1.1 pp
MSME 4.7% 5.2% -0.5 pp
---------------------- ---------- ---------- -----------
Total Loans 3.1% 3.5% -0.4 pp
---------------------- ---------- ---------- -----------
NPL Coverage 30-Sep-21 30-Sep-20
Provision Coverage Total Coverage Provision Coverage Total Coverage
-------------- ------------------- --------------- ------------------- ---------------
Retail 120.7% 189.3% 158.9% 227.9%
CIB 82.5% 151.2% 114.4% 191.8%
MSME 68.7% 154.5% 68.6% 154.5%
-------------- ------------------- --------------- ------------------- ---------------
Total 94.3% 169.3% 104.6% 215.8%
-------------- ------------------- --------------- ------------------- ---------------
Cost of risk
The total cost of risk for 9M 2021 stood at -0.3%, down by 2.8
pp YoY. The recoveries in credit loss allowances were related to
the improved macro outlook on the back of the better than expected
economic performance, as well as repayment from a single large CIB
borrower.
Cost of Risk 9M'21 9M'20 Change YoY
--------------- ------ ------ -----------
Retail 0.2% 4.3% -4.1 pp
CIB -0.8% 0.7% -1.5 pp
MSME -0.3% 2.6% -2.9 pp
--------------- ------ ------ -----------
Total -0.3% 2.5% -2.8 pp
--------------- ------ ------ -----------
Deposit Portfolio
The total deposits portfolio increased by 16.2% YoY across all
segments and amounted to GEL 14,338.5 million, while on a constant
currency basis the total deposit portfolio increased by 20.0% over
the same period. The proportion of deposits denominated in foreign
currency was up by 0.1 pp YoY and accounted for 63.7% of total
deposits, while on a constant currency basis the proportion of
deposits denominated in foreign currency increased by 1.3 pp YoY
and stood at 64.9%.
As of 30 September 2021, our market share in deposits amounted
to 40.1%, up by 1.8 pp YoY, and our market share in deposits to
legal entities stood at 40.0%, up by 1.7 pp over the same period.
Our market share in deposits to individuals stood at 40.2%, up by
1.9 pp QoQ.
In thousands of GEL 30-Sep-21 30-Sep-20 Change YoY
-------------------------- ----------- ----------- -----------
Customer Accounts
-------------------------- ----------- ----------- -----------
Retail 5,593,535 4,705,769 18.9%
Retail deposits GEL 1,353,608 1,158,361 16.9%
Retail deposits FC 4,239,927 3,547,408 19.5%
CIB 6,834,386 5,494,408 24.4%
CIB deposits GEL 2,681,148 1,876,576 42.9%
CIB deposits FC 4,153,238 3,617,832 14.8%
MSME 1,433,603 1,304,952 9.9%
MSME deposits GEL 688,598 604,798 13.9%
MSME deposits FC 745,005 700,154 6.4%
-------------------------- ----------- ----------- -----------
Total Customer Accounts* 14,338,537 12,343,414 16.2%
-------------------------- ----------- ----------- -----------
* Total deposit portfolio includes Ministry of Finance deposits
in the amount of GEL 856 million and GEL 477
million as of 3 0 September 2020 and 30 September 2021, respectively.
9M'21 9M'20 Change
YoY
------------------------------ ------ ------ --------
Deposit rates 3.4% 3.5% -0.1 pp
Deposit rates GEL 6.6% 6.4% 0.2 pp
Deposit rates FC 1.7% 1.9% -0.2 pp
Retail Deposit Yields 2.3% 2.6% -0.3 pp
Retail deposit rates GEL 4.8% 5.4% -0.6 pp
Retail deposit rates FC 1.5% 1.7% -0.2 pp
CIB Deposit Yields 4.2% 4.5% -0.3 pp
CIB deposit rates GEL 8.2% 8.1% 0.1 pp
CIB deposit rates FC 2.1% 2.5% -0.4 pp
MSME Deposit Yields 0.8% 0.9% -0.1 pp
MSME deposit rates GEL 1.5% 1.6% -0.1 pp
MSME deposit rates FC 0.3% 0.3% 0.0 pp
------------------------------ ------ ------ --------
Segment definition and PL
Business Segments
The segment definitions are as follows:
-- Corporate and Investment Banking (CIB) - a legal entity/group
of affiliated entities with an annual revenue exceeding GEL 12.0
million or which has been granted facilities of more than GEL 5.0
million. Some other business customers may also be assigned to the
CIB segment or transferred to the MSME segment on a discretionary
basis. In addition, CIB includes Wealth Management private banking
services to high-net-worth individuals with a threshold of US$
250,000 on assets under management (AUM), as well as on
discretionary basis;
-- Retail - non-business individual customers; or individual
customers of the fully digital bank, Space.
-- MSME - business customers who are not included in the CIB segment;
-- Corporate centre and other operations - comprises the
Treasury, other support and back office functions, and non-banking
subsidiaries of the Group.
Business customers are all legal entities or individuals who
have been granted a loan for business purposes.
Income Statement by Segments
9M'21 Retail MSME CIB Corp. Centre Total
------------------------------------ ---------- ---------- ---------- ------------- ----------
Interest income 501,802 277,497 411,903 184,619 1,375,821
Interest expense (95,617) (8,849) (193,512) (373,449) (671,427)
Net gains from currency swaps 22,894 22,894
Net transfer pricing (118,403) (108,731) 47,057 180,077 -
Net interest income 287,782 159,917 265,448 14,141 727,288
------------------------------------ ---------- ---------- ---------- ------------- ----------
Fee and commission income 171,665 36,836 78,449 21,893 308,843
Fee and commission expense (42,956) (24,177) (57,725) (7,053) (131,911)
Net fee and commission income 128,709 12,659 20,724 14,840 176,932
------------------------------------ ---------- ---------- ---------- ------------- ----------
Net insurance premium earned
after claims and acquisition
costs - - - 15,892 15,892
Net gains/(losses) from currency
derivatives, foreign currency
operations and translation 24,844 18,597 38,180 7,665 89,286
Gains less Losses from Disposal
of Investment Securities Measured
at Fair Value through Other
Comprehensive Income - - 524 10,380 10,904
Other operating income 5,639 707 2,127 33,808 42,281
Share of profit of associates - - - 766 766
Other operating non-interest
income and insurance profit 30,483 19,304 40,831 68,511 159,129
------------------------------------ ---------- ---------- ---------- ------------- ----------
Recovery of/(charges to) credit
loss allowance for loans to
customers (7,860) 8,648 36,164 - 36,952
Recovery of/(charges to) credit
loss allowance for performance
guarantees and credit related
commitments 438 122 (5,327) - (4,767)
Credit loss allowance for net
investments in leases - - - (2,373) (2,373)
Credit loss allowance for other
financial assets (3,292) - (92) (4,979) (8,363)
Recovery of/(charges to) credit
loss allowance for financial
assets measured at fair value
through other comprehensive
income - - 930 1,336 2,266
Net impairment of non-financial
assets 235 68 22 (1,099) (774)
Profit/(loss) before G&A expenses
and income taxes 436,495 200,718 358,700 90,377 1,086,290
------------------------------------ ---------- ---------- ---------- ------------- ----------
Losses from modifications of
financial instruments (688) (93) (914) - (1,695)
------------------------------------ ---------- ---------- ---------- ------------- ----------
Staff costs (100,644) (40,369) (33,710) (47,991) (222,714)
Depreciation and amortization (36,954) (8,330) (3,798) (7,607) (56,689)
Provision for liabilities and
charges - - - (63) (63)
Administrative and other operating
expenses (56,064) (15,073) (11,710) (26,310) (109,157)
Operating expenses (193,662) (63,772) (49,218) (81,971) (388,623)
------------------------------------ ---------- ---------- ---------- ------------- ----------
Profit before tax 242,145 136,853 308,568 8,406 695,972
------------------------------------ ---------- ---------- ---------- ------------- ----------
Income tax expense (23,506) (15,096) (32,787) (14,057) (85,446)
------------------------------------ ---------- ---------- ---------- ------------- ----------
Profit 218,639 121,757 275,781 (5,651) 610,526
------------------------------------ ---------- ---------- ---------- ------------- ----------
Consolidated Financial Statements of TBC Bank Group PLC
Consolidated Balance sheet
In thousands of GEL Sep-21 Sep-20
------------------------------------------------------- ----------- -----------
Cash and cash equivalents 1,960,441 1,454,973
Due from other banks 64,894 39,941
Mandatory cash balances with National Bank of Georgia 2,095,848 2,024,080
Loans and advances to customers 15,504,311 14,055,807
Investment securities measured at fair value through
other comprehensive income 2,253,510 1,346,770
Bonds carried at amortized cost* 1,118 1,322,203
Net investments in leases 237,557 268,430
Investment properties 32,444 83,458
Current income tax prepayment 4,856 58,721
Deferred income tax asset 9,216 602
Other financial assets[19] 383,890 263,979
Other assets 352,191 259,736
Premises and equipment 378,514 359,001
Right of use assets 52,944 59,040
Intangible assets 305,088 207,670
Goodwill 59,964 60,296
Investments in associates 4,455 2,265
TOTAL ASSETS 23,701,241 21,866,972
------------------------------------------------------- ----------- -----------
LIABILITIES
Due to credit institutions 3,361,515 4,127,175
Customer accounts 14,338,537 12,343,414
Lease liabilities 53,627 67,131
Other financial liabilities (14) 165,710 183,376
Current income tax liability 16,559 565
Debt Securities in issue 1,507,969 1,527,318
Deferred income tax liability 7,684 4,370
Provisions for liabilities and charges 28,275 25,417
Other liabilities 137,086 79,171
Subordinated debt 636,086 682,648
TOTAL LIABILITIES 20,253,048 19,040,585
------------------------------------------------------- ----------- -----------
EQUITY
Share capital 1,682 1,682
Shares held by trust (25,489) (34,451)
Share premium 848,459 848,459
Retained earnings 2,790,447 2,180,291
Group re-organisation reserve (162,167) (162,167)
Share based payment reserve (8,811) (25,222)
Fair value reserve (1,207) 7,994
Cumulative currency translation reserve (7,065) (931)
Net assets attributable to owners 3,435,849 2,815,655
------------------------------------------------------- ----------- -----------
Non-controlling interest 12,344 10,732
----------- -----------
TOTAL EQUITY 3,448,193 2,826,387
------------------------------------------------------- ----------- -----------
TOTAL LIABILITIES AND EQUITY 23,701,241 21,866,972
------------------------------------------------------- ----------- -----------
* In 2020, the Group changed its business model in relation to
certain portfolio of bonds carried at amortized cost (Ministry of
Finance Treasury Bills). The respective reclassifications have been
applied prospectively from 1 January 2021, as required by IFRS. As
a result of reclassification, Bonds carried at amortized cost in
the amount of GEL 1,059,946 thousand has been transferred to
Investment securities measured at fair value through other
comprehensive income with the fair value of GEL 1,086,008 thousand.
The difference has been recognized in other comprehensive income as
required by IFRS
Consolidated Statement of Profit or Loss and Other Comprehensive
Income
In thousands of GEL 9M'21 9M'20
------------------------------------------------------------------------------ ------------------------ ------------
Interest income 1,375,821 1,214,125
Interest expense (671,427) (625,730)
Net gains from currency swaps 22,894 15,713
Net interest income 727,288 604,108
------------------------------------------------------------------------------ ------------------------ ------------
Fee and commission income 308,843 226,429
Fee and commission expense (131,911) (95,861)
Net fee and commission income 176,932 130,568
------------------------------------------------------------------------------ ------------------------ ------------
Net insurance premiums earned 47,107 40,817
Net insurance claims incurred and agents' commissions (31,215) (24,595)
------------------------------------------------------------------------------ ------------------------ ------------
Net insurance premium earned after claims and acquisition costs 15,892 16,222
------------------------------------------------------------------------------ ------------------------ ------------
Net gains/(losses) from currency derivatives, foreign currency operations and
translation 89,286 69,933
Gains less losses from disposal of investment securities measured at fair
value through other
comprehensive income 10,904 (1,202)
Other operating income 42,281 13,622
Share of profit of associates 766 243
Other operating non-interest income 143,237 82,596
------------------------------------------------------------------------------ ------------------------ ------------
Recovery of/(charges to) credit loss allowance for loans to customers 36,952 (255,100)
Credit loss allowance for net investments in leases (2,373) (6,939)
Recovery of/(charges to) credit loss allowance for performance guarantees and
credit related
commitments (4,767) 1,171
Credit loss allowance for other financial assets (8,363) (10,703)
Recovery of/(charges to) credit loss allowance for financial assets measured
at fair value
through other comprehensive income 2,266 (906)
Net impairment of non-financial assets (774) (1,345)
Operating profit after expected credit losses 1,086,290 559,672
------------------------------------------------------------------------------ ------------------------ ------------
Losses from modifications of financial instruments (1,695) (35,933)
------------------------------------------------------------------------------ ------------------------ ------------
Staff costs (222,714) (176,261)
Depreciation and amortization (56,689) (49,554)
(Provision for)/ recovery of liabilities and charges (63) (1,982)
Administrative and other operating expenses (109,157) (86,531)
Operating expenses (388,623) (314,328)
------------------------------------------------------------------------------ ------------------------ ------------
Profit before tax 695,972 209,411
------------------------------------------------------------------------------ ------------------------ ------------
Income tax expense/credit (85,446) 12,377
------------------------ ------------
Profit 610,526 221,788
------------------------------------------------------------------------------ ------------------------ ------------
Other comprehensive income:
------------------------------------------------------------------------------ ------------------------ ------------
Items that may be reclassified subsequently to profit or loss:
------------------------------------------------------------------------------ ------------------------ ------------
Movement in fair value reserve (12,361) 14,470
------------------------------------------------------------------------------ ------------------------ ------------
Exchange differences on translation to presentation currency (4,940) 5,918
------------------------------------------------------------------------------ ------------------------ ------------
Other comprehensive income for the period (17,301) 20,388
------------------------------------------------------------------------------ ------------------------ ------------
Total comprehensive income for the period 593,225 242,176
------------------------------------------------------------------------------ ------------------------ ------------
Profit attributable to:
------------------------------------------------------------------------------ ------------------------ ------------
- Shareholders of TBCG 604,061 218,381
------------------------------------------------------------------------------ ------------------------ ------------
- Non-controlling interest 6,465 3,407
------------------------------------------------------------------------------ ------------------------ ------------
Profit 610,526 221,788
------------------------------------------------------------------------------ ------------------------ ------------
Total comprehensive income is attributable to:
------------------------------------------------------------------------------ ------------------------ ------------
- Shareholders of TBCG 586,780 238,795
------------------------------------------------------------------------------ ------------------------ ------------
- Non-controlling interest 6,445 3,381
------------------------------------------------------------------------------ ------------------------ ------------
Total comprehensive income for the period 593,225 242,176
------------------------------------------------------------------------------ ------------------------ ------------
Consolidated Statements of Cash Flows
In thousands of GEL 30-Sep-21 30-Sep-20
----------------------------------------------------------------------- --------------------- ----------------------
Cash flows from/(used in) operating activities
Interest received 1,393,345 969,382
Interest received on currency swaps 22,894 15,713
Interest paid (658,355) (584,266)
Fees and commissions received 284,273 215,013
Fees and commissions paid (133,149) (96,408)
Insurance and reinsurance received 68,437 63,044
Insurance claims paid (26,354) (19,761)
Income received from trading in foreign currencies 58,592 (90,487)
Other operating income received 53,477 13,709
Staff costs paid (227,775) (179,576)
Administrative and other operating expenses paid (114,125) (96,610)
Income tax paid (11,893) (34,797)
Cash flows from operating activities before changes in operating assets
and liabilities 709,367 174,956
Net change in operating assets
Due from other banks and mandatory cash balances with the National Bank
of Georgia 57,244 (1,162,590)
Loans and advances to customers (1,650,871) (512,478)
Net investments in lease 28,358 10,159
Other financial assets (159,404) (149,733)
Other assets 5,740 12,146
Net change in operating liabilities
Due to credit institutions 91,328 102,451
Customer accounts 2,287,018 1,248,989
Other financial liabilities (115,735) 49,203
Other liabilities and provision for liabilities and charges 23,992 3,726
Net cash flows from operating activities 1,277,037 (223,171)
Cash flows from/(used in) investing activities
Acquisition of investment securities measured at fair value through
other comprehensive income (598,141) (535,542)
Proceeds from redemption at maturity/disposal of investment securities
measured at fair value
through other comprehensive income 929,431 223,059
Acquisition of bonds carried at amortised cost - (630,009)
Proceeds from redemption of bonds carried at amortised cost 28,351 333,486
Acquisition of premises, equipment and intangible assets (111,148) (136,184)
Proceeds from disposal of premises, equipment and intangible assets 13,833 36,860
Proceeds from disposal of investment property 44,464 3,162
Acquisition of subsidiaries and associates - 695
Net cash used in investing activities 306,790 (704,473)
Cash flows from/(used in) financing activities
Proceeds from other borrowed funds 1,755,171 1,972,144
Redemption of other borrowed funds (2,914,700) (1,703,260)
Repayment of principal of lease liabilities (8,417) (3,773)
Redemption of subordinated debt (12,562) -
Proceeds from debt securities in issue 49,346 114,030
Redemption of debt securities in issue (2)
Dividends paid (84,159) (1,992)
Net cash flows from financing activities (1,215,321) 377,147
----------------------------------------------------------------------- --------------------- ----------------------
Effect of exchange rate changes on cash and cash equivalents (43,470) 1,001,885
----------------------------------------------------------------------- --------------------- ----------------------
Net increase in cash and cash equivalents 325,036 451,388
----------------------------------------------------------------------- --------------------- ----------------------
Cash and cash equivalents at the beginning of the period 1,635,404 1,003,585
----------------------------------------------------------------------- --------------------- ----------------------
Cash and cash equivalents at the end of the period 1,960,440 1,454,973
----------------------------------------------------------------------- --------------------- ----------------------
Key Ratios
Average Balances
The average balances included in this document are calculated as
the average of the relevant monthly balances as of each month-end.
Balances have been extracted from TBC's unaudited and consolidated
management accounts, which were prepared from TBC's accounting
records. These were used by the management for monitoring and
control purposes.
Key Ratios
Ratios (based on monthly averages, where applicable) 9M'21 9M'20
------------------------------------------------------ ------- -------
Profitability ratios:
ROE(1) 25.3% 11.0%
ROA(2) 3.5% 1.5%
ROE before expected credit loss allowances(3) 24.4% 23.6%
Cost to income(4) 36.5% 37.7%
NIM(5) 5.0% 4.7%
Loan yields(6) 10.2% 10.0%
Deposit rates(7) 3.4% 3.5%
Yields on interest earning assets(8) 9.5% 9.5%
Cost of funding(9) 4.6% 5.0%
Spread(10) 4.9% 4.5%
------------------------------------------------------ ------- -------
Asset quality & portfolio concentration:
Cost of risk(11) -0.3% 2.0%
PAR 90 to Gross Loans(12) 1.3% 1.3%
NPLs to Gross Loans(13) 3.1% 3.5%
NPL provision coverage(14) 94.3% 104.6%
Total NPL coverage(15) 169.3% 180.0%
Credit loss level to Gross Loans(16) 2.9% 3.7%
Related Party Loans to Gross Loans(17) 0.0% 0.1%
Top 10 Borrowers to Total Portfolio(18) 7.7% 7.9%
Top 20 Borrowers to Total Portfolio(19) 11.4% 12.0%
------------------------------------------------------ ------- -------
Capital & liquidity positions:
Net Loans to Deposits plus IFI* Funding(20) 97.5% 97.5%
Net Stable Funding Ratio(21) 127.1% 127.0%
Liquidity Coverage Ratio(22) 116.5% 123.6%
Leverage(23) 6.9x 7.7x
CET 1 CAR (Basel III)(24) 13.4% 9.9%
Tier 1 CAR (Basel III)(25) 15.4% 12.7%
Total 1 CAR (Basel III)(26) 19.3% 17.1%
------------------------------------------------------ ------- -------
* International Financial Institutions
Ratio definitions
1. Return on average total equity (ROE) equals net income
attributable to owners divided by the monthly average of total
shareholders' equity attributable to the PLC's equity holders for
the same period; annualised where applicable.
2. Return on average total assets (ROA) equals net income of the
period divided by monthly average total assets for the same period;
annualised where applicable.
3. Return on average total equity (ROE) before expected credit
loss allowances equals net income attributable to owners excluding
all credit loss allowance with respective tax effects, but after
net modification losses divided by the monthly average of total
shareholders' equity attributable to the PLC's equity holders for
the same period.
4. Cost to income ratio equals total operating expenses for the
period divided by the total revenue for the same period. (Revenue
represents the sum of net interest income, net fee and commission
income and other non-interest income).
5. Net interest margin (NIM) is net interest income divided by
monthly average interest-earning assets; annualised where
applicable. Interest-earning assets include investment securities
(excluding CIB shares), net investment in finance lease, net loans,
and amounts due from credit institutions.
6. Loan yields equal interest income on loans and advances to
customers divided by monthly average gross loans and advances to
customers; annualised where applicable.
7. Deposit rates equal interest expense on customer accounts
divided by monthly average total customer deposits; annualised
where applicable.
8. Yields on interest earning assets equal total interest income
divided by monthly average interest earning assets; annualised
where applicable.
9. Cost of funding equals total interest expense divided by
monthly average interest bearing liabilities; annualised where
applicable.
10. Spread equals difference between yields on interest earning
assets (including but not limited to yields on loans, securities
and due from banks) and cost of funding (including but not limited
to cost of deposits, cost on borrowings and due to banks).
11. Cost of risk equals credit loss allowance for loans to
customers divided by monthly average gross loans and advances to
customers; annualised where applicable.
12. PAR 90 to gross loans ratio equals loans for which principal
or interest repayment is overdue for more than 90 days divided by
the gross loan portfolio for the same period.
13. NPLs to gross loans equals loans with 90 days past due on
principal or interest payments, and loans with a well-defined
weakness, regardless of the existence of any past-due amount or of
the number of days past due divided by the gross loan portfolio for
the same period.
14. NPL provision coverage equals total credit loss allowance
for loans to customers divided by the NPL loans.
15. Total NPL coverage equals total credit loss allowance plus
the minimum of collateral amount of the respective NPL loan (after
applying haircuts in the range of 0%-50% for cash, gold, real
estate and PPE) and its gross loan exposure divided by the gross
exposure of total NPL loans.
16. Credit loss level to gross loans equals credit loss
allowance for loans to customers divided by the gross loan
portfolio for the same period.
17. Related party loans to total loans equals related party
loans divided by the gross loan portfolio.
18. Top 10 borrowers to total portfolio equals the total loan
amount of the top 10 borrowers divided by the gross loan
portfolio.
19. Top 20 borrowers to total portfolio equals the total loan
amount of the top 20 borrowers divided by the gross loan
portfolio.
20. Net loans to deposits plus IFI funding ratio equals net
loans divided by total deposits plus borrowings received from
international financial institutions.
21. Net stable funding ratio equals the available amount of
stable funding divided by the required amount of stable funding as
defined by NBG in line with Basel III guidelines.
22. Liquidity coverage ratio equals high-quality liquid assets
divided by the total net cash outflow amount as defined by the
NBG.
23. Leverage equals total assets to total equity.
24. CET 1 CAR equals CET 1 capital divided by total risk
weighted assets, both calculated in accordance with the
requirements of the NBG Basel III standards. Calculations are made
for TBC Bank stand-alone, based on local standards.
25. Tier 1 CAR equals tier I capital divided by total risk
weighted assets, both calculated in accordance with the
requirements of the NBG Basel III standards. Calculations are made
for TBC Bank stand-alone, based on local standards.
26. Total CAR equals total capital divided by total risk
weighted assets, both calculated in accordance with the
requirements of the NBG Basel III standards. Calculations are made
for TBC Bank stand-alone, based on local standards.
Exchange Rates
To calculate the YoY growth of the Balance Sheet items without
the currency exchange rate effect, we used the USD/GEL exchange
rate of 3.2878 as of 30 September 2020. As of 30 September 2021 the
USD/GEL exchange rate equaled 3.1228. For P&L items growth
calculations without currency effect, we used the average USD/GEL
exchange rate for the following periods: 9M 2021 of 3.2532, 9M 2020
of 3.0557.
Additional Disclosures
1) TBC Bank - Background
TBC Bank is the largest banking group in Georgia, where 99.5% of
its business is concentrated, with a 39.2% market share by total
assets. It offers retail, CIB, and MSME banking nationwide.
These unaudited financial results are presented for TBC Bank
Group PLC ("TBC Bank" or "the Group"), which was incorporated on 26
February 2016 as the ultimate holding company for JSC TBC Bank
Georgia. TBC Bank became the parent company of JSC TBC Bank Georgia
on 10 August 2016, following the Group's restructuring. As this was
a common ownership transaction, the results have been presented as
if the Group existed at the earliest comparative date as allowed
under the International Financial Reporting Standards ("IFRS"), as
adopted by the United Kingdom. TBC PLC is listed on the London
Stock Exchange under the symbol TBCG and is a constituent of the
FTSE 250 index. It is also a member of the FTSE4Good Index Series
and the MSCI United Kingdom Small Cap Index.
TBC Bank Group PLC's financial results has been prepared in
accordance with UK-adopted International Accounting Standard (IAS)
34 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the Financial Conduct Authority
(FCA).
2) Subsidiaries of TBC Bank Group PLC[20]
Ownership Country Year Industry Total Assets
/ voting of incorporation (after elimination)
% as of
30 September
2021
-------------- ----------- ------------------ -------------------- ------------------------
Subsidiary Amount % in
GEL'000 TBC Group
--------------------- -------------- ----------- ------------------ -------------------- ----------- -----------
JSC TBC Bank 97.0% Georgia 1992 Banking 23,033,409 97.00%
United Financial
Corporation
JSC 99.5% Georgia 1997 Card processing 18,308 0.08%
TBC Capital
LLC 100.0% Georgia 1999 Brokerage 4,134 0.02%
TBC Leasing
JSC 100.0% Georgia 2003 Leasing 324,831 1.37%
TBC Kredit Non-banking
LLC 100.0% Azerbaijan 1999 credit institution 17,593 0.07%
TBC Pay LLC 100.0% Georgia 2009 Processing 42,359 0.18%
Real estate
Index LLC 100.0% Georgia 2011 management 1,513 0.01%
TBC Invest
LLC 100.0% Israel 2011 PR and marketing 419 0.00%
JSC TBC Insurance 100.0% Georgia 2014 Insurance 76,129 0.33%
Redmed LLC 100.0% Georgia 2019 E-commerce 1 , 373 0.00%
TBC Ecosystem
Companies 100.0% Georgia 2019 Asset Management 37,435 0.16%
Swoop JSC 100.0% Georgia 2010 Retail Trade 733 0.00%
LLC Online
Tickets 55.0% Georgia 2015 Software Services 3,079 0.01%
TKT UZ 75.00% Uzbekistan 2019 Retail Trade 111 0.00%
E-commerce,
Housing and
My.ge LLC 100.0% Georgia 2008 Auto 24,123 0.10%
LLC Vendoo
(Geo) 100.0% Georgia 2019 Retail Leasing 3,401 0.01%
LLC Mypost 100.0% Georgia 2019 Postal Service 108 0.00%
LLC Billing
Solutions 51.00% Georgia 2019 Software Services 423 0.00%
All property.ge Real estate
LLC 90.0% Georgia 2013 management 4 , 521 0.02%
LLC F Solutions 100.0% Georgia 2019 Software Services 11 0.00%
TBC Connect
LLC 100.0% Georgia 2020 Software Services 3 0.00%
JSC Space 100.0% Georgia 2021 Software Services 29,603 0.12%
TBC Concept 100.0% Georgia 2020 Food Industry 867 0.00%
Artarea.ge LLC 100.0% Georgia 2021 PR and marketing 62 0.00%
Saba 85.0% Georgia 2012 Education 62 0.00%
Art Gallery 100.0% Georgia 2012 PR and marketing 0 0.00%
Space International
JSC 100.0% Georgia 2021 Software Services 32,998 0.14%
TBC Group Support
LLC 100.0% Georgia 2020 Risk Management 1 0.00%
Inspired LLC 51.0% Uzbekistan 2011 Processing 29,761 0.13%
TBC Bank UZ
JSCB 100.0% Uzbekistan 2020 Banking 65,836 0.28%
LLC Vendoo (UZ
Leasing) 100.00% Uzbekistan 2019 Consumer financing 2,638 0.01%
--------------------- -------------- ----------- ------------------
3) TBC Insurance
TBC Insurance, a wholly owned subsidiary of TBC Bank, is one of
the leading players on the Georgian non-health insurance market.
The company was acquired by the Group in October 2016 and has since
grown significantly, becoming the second largest player on the
property and casualty insurance and life insurance (non-health)
market and the largest player in the retail segment, holding 25 . 6
% and 39 . 6 % market shares ([21]) without border motor third
party liability (MTPL) insurance, respectively, in 3 Q 2021.
TBC Insurance serves both individual and legal entities and
provides a broad range of insurance products covering motor,
travel, personal accident, credit life and property, business
property, liability, cargo, agro, and health insurance products.
The company differentiates itself through its advanced digital
channels, which include TBC Bank's award-winning internet and
mobile banking applications, a wide network of self-service
terminals, a web channel, and B-Bot, a Georgian-speaking chat-bot
that is available through Facebook messenger.
In 2019, we entered the health insurance market, with a strategy
to target the premium segment by providing a superior customer
experience coupled with the most innovative approach to products
and services. In 2021, as we have accumulated sufficient market
knowledge and claims statistics, we expanded our value proposition
to the mid-premium segment.
In 3 Q 2021, net profit including the health insurance business
amounted to GEL 3 , 598 thousand. The QoQ 26.4% increase in net
profit , including the health insurance business , was mainly
driven by strong business growth. On a YoY basis, the net profit
increased moderately and was affected by a high base in 3Q 2020,
due to reduced level of claims related to COVID-19.
Information excluding 3Q'21 2Q' 2 1 3Q'20 9M'21 9M'20
health insurance
In thousands of GEL
Gross written premium 26,125 22,831 19,186 70,220 56,329
Net earned premium
([22]) 19,238 18,595 15,821 54,486 47,359
Net profit 3,951 3,512 3,868 10,358 8,960
Net combined ratio 80.2% 81.6% 77.0% 81.7% 80.9%
Information including 3Q'21 2Q' 2 3Q'20 9M'21 9M' 20
health insurance 1
In thousands of GEL
Gross written premium 28,851 26,414 21,557 80,780 63,292
Net earned premium 22,268 21,539 18,015 62,938 52,662
Net profit 3,598 2,846 3,378 8,638 7,742
8 7 . 6
Net combined ratio 85.0% 88.0% 83.0% % 85.6%
Note: IFRS standalone data
4) Fast growing digital bank in Uzbekistan
in thousands Jan'21 Feb'21 Mar'21 Apr'21 May'21 Jun'21 Jul'21 Aug'21 Sep'21 Oct'21
# of total registered users 28 68 98 157 230 302 403 547 667 785
# of downloads 29 71 103 189 284 391 555 747 897 1,040
Loan portfolio* (GEL) 153 413 953 6,144 14,997 25,239 31,797 45,771 52,493 59,805
Deposit portfolio** (GEL) 1,108 2,227 2,839 6,543 11,567 15,543 49,585 81,055 91,979 114,969
# of total cards issued
(cumulative figures) 8 18 31 42 54 66 78 96 117 139
# of other cards attached (cumulative
figures) 4 15 29 49 81 126 187 264 328 443
Total monthly number of transactions 27 87 203 323 407 563 62 6 817 906 1,09 8
* Unsecured consumer loan with the average ticket size of GEL 2,100
** Current and savings accounts
5) Reclassification of certain balance sheet profit and loss items and changes in methodology
In 1Q 2021, we reclassified certain BS and PL items for all
quarters of 2020 and 1Q 2021, as outlined below.
Wealth Management and Space business reclassification
Following structural changes in the Management Board, starting
from January 2021, Deputy CEO George Tkhelidze, head of Corporate
and Investment Banking, assumed responsibility for the Wealth
Management business. As a result, we reclassified all relevant BS
and PL items of the Wealth Management business from Retail Banking
to Corporate and Investment Banking.
Following the demerger of the Space segment into a separate
entity, the management has re-considered the classification of
Space from the MSME to the retail segment. The underlying rationale
was the composition of product base, offered by Space to its
customers. The majority of such products are consumer, fast
consumer and installment loans, which by their nature represent the
retail segment. As a result, the management believes that analyzing
Space as a part of the retail segment would be more meaningful for
users of the financial statements.
The amounts of the Wealth Management and Space loan and deposit
portfolios are given in a table below:
Wealth Management Space
Loan book Deposit portfolio Loan book Deposit portfolio
(million GEL) (million GEL) (million GEL) (million GEL)
September
2021 151.1 2,451.1 31.3 13.7
June 2021 142.8 2,193.7 30.9 13.3
September
202 0 133.1 2,002.3 33.8 8.2
Reclassification of other non-financial assets impairment
In 2021, the Group reclassified the impairment/recovery of
non-financial assets from "Administrative and other operating
expenses" to "Impairment of other non-financial assets". A
significant part of any impairment/recoveries recorded is related
to repossessed assets and investment properties. The management
believes that those type of assets are not actively used in daily
operations, but are primarily targeted for sale in the future.
Considering the nature of those expenses/recovery, such a
presentation is more appropriate and would increase the
understandability and clarity of the Group's financial statements.
The presentation of comparative figures has been adjusted to
conform to the presentation of the current period amounts:
As originally Reclassification As reclassified
presented at
at 30 September 30 September
2020 2020
Impairment of other non-financial
assets - (720) 720
Administrative and other
operating expenses (31,860) 720 (31,140)
Changes in methodology - NPL collaterals coverage
In 1Q 2021, in order to further increase the focus on collateral
coverage, the Bank reviewed its methodology and applied a more
conservative approach: namely, under the updated methodology, the
collateral amount is capped at the respective loan amount. The NPL
coverages for all four quarters of 2020 have been recalculated as
per the updated methodology.
The table below outlines the NPL coverage ratios as of 30
September 2020, calculated as per the previous and the updated
methodologies.
Collateral coverage Total NPL coverage
(provisions plus collateral)
Per previous Per updated Per previous Per updated
methodology methodology methodology methodology
Retail 156% 121% 237% 189%
CIB 75% 83% 225% 151%
MSME 72% 69% 186% 155%
Total 105% 94% 216% 169%
6) Loan book breakdown by stages according IFRS 9
Total (in million GEL)
30-Sep-21 30-Jun-21 30-Sep-2 0
Stage Gross LLP rate* Gross LLP rate* Gross LLP rate*
1 13,557 0.9% 12,709 0.9% 11,814 1.5%
2 1,737 5.7% 1,803 5.6% 2,303 8.2%
3 670 34.9% 763 34.4% 474 34.7%
Total 15,964 2.9% 15,275 3.1% 14,591 3.7%
CIB (in million GEL)
30-Sep-21 30-Jun-21 30-Sep-20
Stage Gross LLP rate* Gross LLP rate* Gross LLP rate*
1 5,285 0.9% 4,899 0.9% 4, 430 1.1%
2 728 0.5% 826 1.0% 866 1.1%
3 124 20.1% 127 18.8% 161 30. 6 %
Total 6,137 1.2% 5,852 1.3% 5, 457 1 . 9 %
MSME (in million GEL)
30-Sep-21 30-Jun-21 30-Sep-20
Stage Gross LLP rate* Gross LLP rate* Gross LLP rate*
1 3,206 0.7% 2,997 0.6% 2,8 08 1. 2 %
2 445 6.6% 458 6.3% 4 79 9.1%
3 225 32.3% 249 31.5% 150 30. 6 %
Total 3,876 3.2% 3,704 3.4% 3,4 37 3. 6 %
Retail (in million GEL)
30-Sep-21 30-Jun-21 30-Sep-20
Stage Gross LLP rate* Gross LLP rate* Gross LLP rate*
1 5,066 1.1% 4,813 1.0% 4, 576 2. 2 %
1 4 . 2
2 564 11.8% 519 12.3% 9 58 %
3 321 42.5% 387 41.4% 16 3 42. 5 %
5, 6 9
Total 5,951 4.4% 5,719 4.8% 7 5. 4 %
* LLP rate is defined as credit loss allowances divided by gross
loans
7) Reconciliation of Return on Equity (ROE) with ROE before expected credit loss allowances
Income Statement Highlights
# in thousands of GEL 3Q'21 2Q'21 3Q'20 9M'21 9M'20
1. Net interest income 259,390 242,767 211,784 727,288 604,108
Net fee and commission
2. income 68,631 63,008 47,499 176,932 130,568
Other operating non-interest
3. income 43,952 74,512 33,913 159,129 98,818
4. Credit loss allowance -5,106 45,291 -14,146 22,941 -273,822
Operating profit after
5. expected credit losses 366,867 425,578 279,050 1,086,290 559,672
Losses from modifications
6. of financial instrument -104 -104 -1,763 -1,695 -35,933
7. Operating expenses -131,695 -134,688 -112,793 -388,623 -314,328
8. Profit before tax 235,068 290,786 164,494 695,972 209,411
9. Income tax expense -27,921 -40,394 -11,906 -85,446 12,377
10. Profit for the period 207,147 250,392 152,588 610,526 221,788
Profit for the period
12. less Non-controlling interest 204,892 247,946 150,755 604,062 218,381
Income tax expense of
13. credit loss allowance -562 4,684 -1,255 2,525 -24,286
Profit before Credit loss
allowances less Non-controlling
interest and respective
tax effect
14. (12 - 4 + 13) 209,436 207,339 163,646 583,646 467,917
# in thousands of GEL 3Q'21 2Q'21 3Q'20 9M'21 9M'20
Average equity attributable
15. to the PLC's equity holders 3,377,931 3,203,351 2,731,868 3,195,731 2,653,246
Return on equity (ROE)
16. (12÷15)* 24.1% 31.0% 22.0% 25.3% 11.0%
Return on equity (ROE)
before expected credit
17. loss allowances (14÷15)* 24.6% 26.0% 23.8% 24.4% 23.6%
*annualised where applicable
[1] Consumer loans offloading ratios equals the number of
consumer loans issued via remote channels divided by total number
of such loans issued;
[2] Deposit offloading ratio equals the number of time and
savings deposits opened via remote channels divided by total number
of such deposits opened.
[3] National Statistics Office of Georgia
[4] Is calculated as the number consumer loans issued via remote
channels divided by total number of such loans issued.
([5]) Is calculated as the number of time and savings deposits
opened through remote channels divided by total number of such
deposits opened.
[6] Macro-Sectoral Overview, September 23, 2021, TBC Capital
[7] World Economic Outlook, October 2021, International Monetary Fund
[8] Europe and Central Asia Economic Update, October 2021, World Bank
[9] Other operating non-interest income includes net insurance
premium earned after claims and acquisition costs.
[10] For the ratio calculation, all relevant group recurring
costs are allocated to the bank.
[11] Net insurance premium earned after claims and acquisition
costs can be reconciled to the standalone net insurance profit (as
shown in Annex 3) as follows: net insurance premium earned after
claims and acquisition costs less credit loss allowance,
administrative expenses and taxes, plus fee and commission income
and net interest income.
[12] For the ratio calculation, all relevant group recurring
costs are allocated to the bank.
[13] In 1Q 2021, we updated the calculation methodology of NPL
collateral coverage; please refer to annex 5 for more details.
[14] Other financial assets and liabilities do not contain
offset amounts of omnibus accounts for TBC Capital (nominee
accounts, where TBC Capital acts as a fiduciary on a client's
behalf).
[15] Other operating non-interest income includes net insurance
premium earned after claims and acquisition costs.
[16] For the ratio calculation, all relevant group recurring
costs are allocated to the bank.
[17] Net insurance premium earned after claims and acquisition
costs can be reconciled to the standalone net insurance profit (as
shown in Annex 3) as follows: net insurance premium earned after
claims and acquisition costs less credit loss allowance,
administrative expenses and taxes, plus fee and commission income
and net interest income.
[18] For the ratio calculation, all relevant group recurring
costs are allocated to the bank.
[19] Other financial assets and liabilities do not contain
offset amounts of omnibus accounts for TBC Capital (nominee
accounts, where TBC Capital acts as a fiduciary on client's
behalf).
[20] TBC Bank Group PLC became the parent company of JSC TBC
Bank on 10 August 2016.
[21] Market shares are based on internal estimates. Source is
Insurance State Supervision Service of Georgia. Total non-health
and retail market share in 3Q 2021 including MTPL stood at 24 . 5 %
and 35 . 4 % respectively.
([22]) Net earned premium equals earned premium minus the
reinsurer's share of earned premium.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTKZMMMVNLGMZM
(END) Dow Jones Newswires
November 18, 2021 02:00 ET (07:00 GMT)
Tbc Bank (LSE:TBCG)
Historical Stock Chart
From Apr 2024 to May 2024
Tbc Bank (LSE:TBCG)
Historical Stock Chart
From May 2023 to May 2024