18 May 2021

TBC Bank Announces 1Q 2021 Consolidated Financial Results

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.

 Financial Highlights

1Q 2021 P&L Highlights   

  • Profit for the period amounted to GEL 153.0 million (1Q 2020: GEL -57.0 million)
  • Return on average equity (ROE) stood at 20.3% (1Q 2020: -8.8%)
  • ROE before expected credit loss allowances[1] stood at 22.6% (1Q 2020: 29.2%[2])
  • Return on average assets (ROA) stood at 2.7% (1Q 2020: -1.2%)
  • Cost to income of TBC Bank Group PLC stood at 39.3% (1Q 2020: 36.7%)
  • Standalone cost to income ratio[3] of the Bank was 33.1% (1Q 2020: 31.8%)
  • Cost of risk stood at 0.5% (1Q 2020: 2.6%)
  • Net interest margin (NIM) stood at 4.7% (1Q 2020: 5.1%)
  • Basic earnings per share stood at GEL 2.78 (1Q 2020: NA)
  • Diluted earnings per share stood at GEL 2.72 (1Q 2020: NA)

 Balance Sheet Highlights as of 31 March 2021

  • Total assets amounted to GEL 23,617.0 million, up by 18.2% YoY
  • Gross loans and advances to customers stood at GEL 15,332.2 million, up by 10.1% YoY or at 6.1% on a constant currency basis
  • Net loans to deposits + IFI[4] funding stood at 92.2%, down by 9.6 pp YoY, and Regulatory Net Stable Funding Ratio (NSFR), stood at 131.4%
  • NPLs were 4.8%, up by 1.9 pp YoY
  • NPL provision coverage and total coverage ratios stood at 81.0%, or 154.4%, respectively on 31 March 2021 compared to 133.8% or 206.4%, as of 31 March 2020[5]
  • Total customer deposits amounted to GEL 14,239.8 million, up by 27.0% YoY or 23.1% on constant currency basis
  • The Bank’s Basel III CET 1, Tier 1 and Total Capital Adequacy Ratios per NBG methodology stood at 10.9%, 13.5%, and 17.6%, respectively, while minimum eased regulatory requirements amounted to of 7.8%, 9.7%, and 13.7%, respectively.

 Market Shares as of March 2021[6]

  • Market share by total assets reached 39.0%, up by 0.6 pp YoY (#1 position)
  • Market share by total loans was 38.5%, down by 0.9 pp YoY (#1 position)
  • Market share of total deposits reached 39.8%, remained the same YoY (#1 position)

Digital Highlights for 1Q 2021

  • Retail digital active users increased by 16.4% YoY and amounted to 718,000
  • Average daily active users in March increased by 16.6 % YoY and stood at 281,000
  • Daily active users (DAU) divided by monthly active users (MAU) stood at 46.0% in March 2021 (March 2020: 40.6%)
  • 95% of all transactions were conducted through digital channels[7] (1Q 2020: 94%)
  • The penetration ratio for internet and mobile banking[8] stood at 53% for 1Q 2021 (1Q 2020: 48%)

Additional Information Disclosure
The following materials in connection with TBC PLC's financial results are disclosed on our Investor Relations website on http://tbcbankgroup.com/ under Results Announcement section:

  • 1Q 2021 Results Report
  • 1Q 2021 Results Call Presentation

For further enquiries, please contact:
Director of International Media and Investor Relations
Zoltan Szalai
ir@tbcbank.com.ge

Or

Head of Investor Relations
Anna Romelashvili
ir@tbcbank.com.ge

About TBC Bank Group PLC (“TBC PLC”)
TBC Bank Group PLC ("TBC PLC") is a public limited company registered in England and Wales. TBC PLC is the parent company of JSC TBC Bank ("TBC Bank") and a group of companies that principally operate in Georgia in the financial sector and other closely related fields. TBC PLC also recently expanded its operations in Uzbekistan. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of the FTSE Small Cap Index. It is also a member of the FTSE4Good Index Series and the MSCI United Kingdom Small Cap Index.

TBC Bank, together with its subsidiaries, is a leading universal banking group in Georgia, with a total market share of 38.5% of loans and 39.8% of non-banking deposits as of 31 March 2021, according to data published by the National Bank of Georgia.

 

[1] Return on average total equity (ROE) before expected credit loss allowances equals net income attributable to owners excluding all credit loss allowance, 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.
[2] Prior to the change in PPE (property, plant and equipment) accounting policy from the revaluation model to the cost method, both ROE before expected credit loss allowances stood at 28.7% in 1Q 2020.
[3] For the ratio calculation, all relevant group recurring costs are allocated to the Bank.
[4] International Financial Institutions
[5] In 1Q 2021, we updated the calculation methodology of NPL collateral coverage
[6] Market share figures are based on data from the National Bank of Georgia (NBG). The NBG includes interbank loans for calculating market share in loans.
[7] Including Space transactions
[8] Internet and Mobile Banking penetration equals the number of active clients of Internet or Mobile Banking divided by the total number of active clients. Data includes Space figures.