In This Article:
Release Date: February 12, 2025
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 (TBCCF) reported a strong net profit of 335 million lari for Q4 2024, marking a 15% year-on-year increase.
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The company maintained a high return on equity of 24.1% in the final quarter, supported by solid loan growth.
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The Uzbekistan business experienced rapid expansion, with record earnings and a significant increase in the loan book.
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The board recommended a final dividend of 5.55 lari per share, bringing the total dividend for the year to 8.10 lari, a 2% increase from the previous year.
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Digital engagement in Georgia improved, with digital monthly active users surpassing 1 million, indicating successful digital transformation efforts.
Negative Points
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Economic growth in Georgia is expected to slow down, with TBC Bank's in-house team forecasting GDP growth below the levels predicted by international organizations.
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Inflation in Uzbekistan remains high at 9.8%, which could pose challenges for the business environment.
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The cost-to-income ratio increased to 37.9% in 2024, reflecting higher operational expenses.
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There was a noted increase in dollarization during the election period in Georgia, which could impact financial stability.
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The company anticipates a lower percentage increase in lending growth in Uzbekistan for 2025 due to a higher starting point.
Q & A Highlights
Q: Can you explain the surge in digital monthly active users in Uzbekistan and how this might trend in 2025? A: Unidentified_3 (CEO): The growth in digital monthly active users in Uzbekistan was driven by the introduction of new products, including a new debit card, credit card, and MSME product. Additionally, the payment business and seasonal factors contributed to this increase. We expect continued growth in 2025 as we expand our offerings.
Q: What are your expectations for lending growth in Uzbekistan for 2025? A: Unidentified_4 (CFO): We have guided for a 15% CAGR for loans, translating to a target of 1 billion euros in loans. We are confident in achieving this, supported by strong economic fundamentals and our strategic initiatives.
Q: Can you elaborate on the trends in deposit dollarization and any expectations for the future? A: Unidentified_4 (CFO): We observed an increase in dollarization during the election period, primarily driven by large corporate customers. This trend has stabilized, and we expect a reversal as corporates need to pay salaries and taxes in local currency.
Q: What are your expectations for the Georgian lari's trajectory in 2025? A: Unidentified_4 (CFO): The lari has remained stable despite recent events, with only minor devaluation. We do not expect significant movements, anticipating it to remain around the 2.82-2.85 level.