In This Article:
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Net Profit: GEL350 million, 16% year-on-year growth.
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Return on Equity (ROE): 26.6%.
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Gross Loan Portfolio Growth: 20% year-on-year.
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Total Operating Income: GEL754 million, 23% year-on-year growth.
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Net Interest Income Growth: 15% year-on-year.
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Net Fee and Commission Income Growth: 49% year-on-year.
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Net Interest Margin (NIM): Group NIM at 6.4%; Georgian NIM at 5.6%; Uzbek NIM at 25%.
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Operating Expenses (OpEx): Up by 29% year-on-year.
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Cost-to-Income Ratio: 37.2% for Q3.
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Non-Performing Loans (NPLs): Stable at 2.1%.
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Cost of Risk: 80 basis points; Georgia at 50 basis points; Uzbekistan at 5.7%.
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Customer Funding Growth: 90% year-on-year on a constant currency basis.
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Uzbekistan Total Operating Income: USD 41 million in Q3, more than doubling year-on-year.
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Uzbekistan Net Profit: USD 12 million in Q3, more than doubling year-on-year.
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Uzbekistan Return on Equity (ROE): 28% plus.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TBC Bank Group PLC (FRA:LR6) reported a record net profit of GEL347 million for the third quarter, with a return on equity exceeding 26%.
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The company's digital customer base is approaching 6 million monthly active users, indicating strong digital growth.
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The Georgian economy remains robust, with a revised GDP growth forecast of 9.4% for 2024, supporting TBC's business environment.
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TBC's Uzbekistan operations are performing exceptionally well, with a net profit of $12 million and total operating income of $41 million in Q3, both more than doubling year-on-year.
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The company maintains a strong capital position, with capital ratios comfortably above the minimum regulatory requirements in both Georgia and Uzbekistan.
Negative Points
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There is a noted margin pressure, although net interest income was up by 15% year-on-year.
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Operating expenses increased by 29% year-on-year, primarily due to scaling up operations in Uzbekistan.
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The cost of risk in Uzbekistan is relatively high at 5.7%, reflecting the unsecured consumer loan business model.
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The company has discontinued providing specific guidance on TNET GMV growth, indicating a shift in strategic focus.
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There is a potential need for additional funding for the Uzbekistan operations to support ambitious growth targets.
Q & A Highlights
Q: Can you comment on the lending growth outlook for Georgia and Uzbekistan, especially after the Georgian elections and the strong macroeconomic environment? A: Lending growth has been strong, driven by Georgia's exceptional macro performance. We expect continued strong growth in Q4, likely above 15% year-on-year, and similar growth into 2025. In Uzbekistan, cost growth is high due to scaling up, but revenue growth is outpacing costs. We plan to surpass our GEL1 billion target, with profitability and ROE as key focuses. - Giorgi Megrelishvili, CFO