19 Feb 2021

TBC Bank Announces Unaudited Preliminary FY and 4Q 2020 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

4Q 2020 P&L Highlights                                                  

  • Profit for the period amounted to GEL 100.7 million (4Q 2019: GEL 160.0 million)
  • Return on average equity (ROE) stood at 13.7% (4Q 2019: 25.2%1)
  • ROE before expected credit loss allowances2 stood at 24.6% (4Q 2019: 25.2%1)
  • Return on average assets (ROA) stood at 8% (4Q 2019: 3.5%1)
  • Cost to income of TBC Bank Group PLC stood at 39.7% (4Q 2019: 41.8%)
  • Standalone cost to income ratio of the Bank3 was 34.1% (4Q 2019: 36.2%)
  • Cost of risk stood at 2.0% (4Q 2019: -0.2%)
  • Net interest margin (NIM) stood at 4.8% (4Q 2019: 5.3%)
  • Basic earnings per share stood at GEL 1.83 (4Q 2019: GEL 2.92)
  • Diluted earnings per share stood at GEL 1.79 (4Q 2019: GEL 2.91)

FY 2020 P&L Highlights

  • Profit for the period amounted to GEL 322.5 million (FY 2019: GEL 540.3 million)
  • Return on average equity (ROE) stood at 11.7% (FY 2019: 22.9%4)
  • ROE before expected credit loss allowances2 stood at 24.7% (FY 2019: 26.8%4)
  • Return on average assets (ROA) stood at 1.6% (FY 2019: 3.2%4)
  • Cost to income of TBC Bank Group PLC stood at 38.4% (FY 2019: 39.9%)
  • Standalone cost to income ratio of the Bank3 was 32.9% (FY 2019: 35.9%)
  • Cost of risk stood at 2.4% (FY 2019: 0.7%)
  • Net interest margin (NIM) stood at 4.7% (FY 2019: 5.6%)
  • Basic earnings per share stood at GEL 5.84 (FY 2019: GEL 9.83)
  • Diluted earnings per share stood at GEL 5.76 (FY 2019: GEL 9.76)

Balance Sheet Highlights as of 31 December 2020

  • Total assets amounted to GEL 22,557.8 million, up by 23.0% YoY
  • Gross loans and advances to customers stood at GEL 15,200.5 million, up by 20.0% YoY or at 8.7% on a constant currency basis
  • Net loans to deposits + IFI5 funding stood at 101.2%, down by 3.6 pp YoY, and Regulatory Net Stable Funding Ratio (NSFR), effective from 30 September 2019, stood at 126.0%
  • NPLs were 4.7%, up by 2.0 pp YoY
  • NPLs coverage ratios stood at 85.6%, or 189.1% with collateral, on 31 December 2020 compared to 91.1% or 194.2% with collateral, as of 31 December 2019
  • Total customer deposits amounted to GEL 12,572.7 million, up by 25.1% YoY or at 13.8% on constant currency basis
  • The Bank’s Basel III CET 1, Tier 1 and Total Capital Adequacy Ratios per NBG methodology stood at 10.4%,0%, and 17.1%, respectively, while minimum eased regulatory requirements amounted to of 7.4%, 9.2%, and 13.7%, respectively

Market Share6

  • Market share by total assets reached 38.2%, remaining the same YoY
  • Market share by total loans was 39.0%, down by 0.5 pp YoY
  • Market share of total deposits reached 37.2%, down by 1.8 pp YoY

4Q 2020 operating highlights

  • The number of affluent customers reached 98.0 thousand as of 31 December 2020, up by 15% YoY
  • 96% of all transactions were conducted through digital channels7 (4Q 2019: 93%)
  • The penetration ratio for internet and mobile banking8 stood at 50% for 4Q 2020 (4Q 2019: 48%)
  • The penetration ratio for mobile banking9 stood at 48% for 4Q 2020 (4Q 2019: 44%)

 

Additional Information Disclosure

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

  • FY and 4Q 2020 Results Report
  • FY and 4Q 2020 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 250 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 39.0% of loans and 37.2% of non-banking deposits as of 31 December 2020, according to data published by the National Bank of Georgia.

 

1 Prior to the change in PPE (property, plant and equipment) accounting policy from the revaluation model to the cost method, both ROE and ROE before expected credit loss allowances stood at 24.7%, while ROA remained unchanged in 4Q 2019.
2 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.
3 For the ratio calculation, all relevant group recurring costs are allocated to the Bank.
4 Prior to the change in PPE (property, plant and equipment) accounting policy from the revaluation model to the cost method, ROE stood at 22.4%, while ROE before expected credit loss allowances stood at 26.3% and ROA remained unchanged in for the FY 2019.
5 International Financial Institutions
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
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.
9 Mobile Banking penetration equals the number of active clients of Mobile Banking divided by the number of total active clients. Data includes Space figures.