Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

TBC Bank posts robust annual profit on loan growth

Published 20/02/2020, 07:38
Updated 20/02/2020, 07:41
© Reuters.  TBC Bank posts robust annual profit on loan growth

© Reuters. TBC Bank posts robust annual profit on loan growth

(Reuters) - Georgia's largest retail lender TBC Bank Group (L:TBCG) posted a 20% surge in annual underlying profit on Thursday as a strong economy supported lending.

The upbeat results cap a tough year for TBC, whose chairman Mamuka Khazaradze and deputy Badri Japaridze stepped down from the board after prosecutors charged them with money laundering.

The FTSE 250-listed bank said underlying profit climbed to 545.1 million lari (£150 million) for the year ended Dec. 31, from 454.9 million lari ($161.89 million) a year earlier.

The economy of Georgia, a former Soviet republic, expanded 5.2% in 2019 with food processing and transport among sectors showing the fastest growth, preliminary data showed in January.

The country's economic strength has historically aided TBC and its main rival Bank of Georgia (L:BGEO) in booking solid earnings through loan book growth.

Tbilisi-based TBC, which was started nearly a quarter century ago with just $500 in capital, said its loan book expanded by 22.1% to reach 12.66 billion lari.

The company also stood by its medium-term targets that include a loan book growth of around 10-15%.

However, TBC's net interest margin - the main indicator of a bank's financial strength - slipped to 5.6% from 6.9%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.