TBC Bank is a market leader in retail loans and retail deposits as at 31 December 2016.The retail segment represents 56.8% of the total deposit portfolio and 51.1% of the total loan portfolio, making it the Group’s largest segment in terms of both deposits and loans. We offer a full range of products to our retail customers, account and deposit products through our cutting-edge multichannel platform and a comprehensive distribution network, with special products and services offered to affluent and high net worth clients. We serve c.1.7 million retail customers.
By 31 December 2016, the Group’s retail loan portfolio reached GEL 3,763 million with the market share for individuals at 44.2% (32.9% without Bank Republic). At the same time, our market share in deposits of individuals stood at 40.8% (37.2% without Bank Republic).
Corporate Banking is a traditionally strong area of the Bank representing 28.0% of TBC’s total loan portfolio and 27.8% of the total deposits portfolio. We serve c.2,500 corporate clients in Georgia, offering diverse lending, card and deposit products (including syndicated lending), foreign exchange operations, hedging, trade and project finance products (including factoring), escrow services, cash collection, insurance packages (through GPI Holding, a partner insurance company), leasing (through TBC Leasing) and brokerage and research services (through its brokerage and corporate advisory arm, TBC Capital).
As at 31 December 2016, market shares for legal entity loans and deposits stood at 33.6% (29.4% without Bank Republic) and 34.2 (28.0% without Bank Republic), respectively.
SME banking accounted for 11.7% and 13.8% of TBC’s total loans and total deposits portfolios, respectively. TBC offers a diverse range of products and services to its SME segment customers, including trade finance, project finance, asset finance and working capital loans. We serve approximately 90,000 clients. TBC Bank remains the only bank to offer important education and value-added services to SME businesses through its Business Support Program.
TBC Bank completed the merger with Bank Constanta in January 2015. The micro banking segment is the smallest but the fastest growing segment of the Group, accounting for 9.2% and 1.6% of total loans and total deposits, respectively. This segment offers various types of loan and deposit products tailored to client needs. As at 31 December, we served approximately 447,000 micro banking customers in Georgia.
NBG market share figure for the Corporate segment includes TBC Bank’s Corporate and SME banking segments.
Last updated on 24 February 2017.
Total Group Assets
Total Group Net Income
IFRS Reporting Standards
As at 31 December 2016
Note: Net income proportions are calculated for TBC Bank and its profit generating subsidiaries
In addition to its core banking business that TBC conducts within its retail, corporate, SME and micro segments through TBC Bank, Bank Republic and TBC Kredit, TBC conducts supplementary operations through its other subsidiaries. These operations represented 1.5% of our total assets and 3.2% of our consolidated net income for the 31 December 2016.
Our newly acquired subsidiary, Bank Republic, is a large financial institution that has been historically well managed and financially strong. It has consistently maintained a return on equity of over 18% since 2013 and the figure reached 23% in 2016. The acquisition’s price to book value multiple, based on the 2016 year-end book value, was around 1.2 times. The acquisition creates opportunities for synergies and reinforces our commitment to offering our clients superior products and services and generating maximum value for all shareholders and other stakeholders. The increased scale of our operations following the acquisition is also expected to provide significant opportunities for cross-selling our products and services. The full merger is set for completion in Q3 2017.
Key transaction highlights:
TBC Bank offers leasing services in Georgia through its majority-owned subsidiary, TBC Leasing. These include finance leasing, leaseback, residual lease, and service leases. Leasing arrangements are primarily entered into with customers in the construction, medical, agriculture, transportation and service sectors.
TBC Leasing is the market leader with 69% market share of the Georgian leasing financial services market by Q4 2016. TBC Leasing's diversified customer base provides significant cross-selling opportunities and growth potential.
During 2015, TBC Bank enhanced the function and scope of its brokerage subsidiary and rebranded the Company into TBC Capital. The Company now represents an advisory arm of TBC Bank offering corporate advisory, research and brokerage solutions in Georgia. TBC Capital is committed to playing an active role in the development of capital markets in Georgia. TBC Capital supports both institutional and strategic investors in exploring investment opportunities in Georgia while at the same time giving access to additional forms of financing to domestic companies. During 2014 and 2015, TBC Capital participated in the landmark bond issuances of EBRD and ADB – the first and the largest such issuances by any IFI in Georgia, respectively - as well as the most recent issuance by BSTDB.
TBC Capital was also strengthened by leading professionals in the field. The company appointed two new Managing Directors with significant international experience in asset management and international capital markets, trading and derivatives from Jefferies Asset Management in the UK and Silverhorn Investment Advisors, Lehman Brothers, Nomura, and JP Morgan in Hong Kong.
Although the vast majority of TBC’s operations (representing 99.6% of our assets) are conducted in Georgia, TBC Bank also operates in Azerbaijan and Israel through its subsidiaries – TBC Kredit and TBC Invest. TBC Kredit is a non-banking credit organization focused on SME and retail customers, offering SME and retail loans, consumer loans and mortgages.
TBC currently holds a 75% equity interest in TBC Kredit. With headquarters in Baku, TBC Kredit operates six additional branches throughout Azerbaijan. TBC Kredit has extensive experience in dealing with MSME finance, consumer and mortgage loans. As of 31st December 2016, TBC Kredit had a total loan portfolio of USD 17,6 million. SME lending accounted for 49% of TBC Kredit’s loan portfolio, while consumer and mortgage loans accounted for 33% and 18%, respectively.
TBC Group comprises five more companies operating in related industries in order to support TBC’s main activities:
• JSC United Financial Corporation and TBC Pay LLC process card payments and supply payment collection services to providers of self-service machines and POS, WAP and Windows terminals.
• JSC Real Estate Management Fund and Mali LLC, which manage property we have repossessed for future sale.
• Banking Systems Service Company (BSSC) LLC provides technical services and software support for electronic banking systems (such as POS and cash machines).
Last updated on 24 February 2017.