TBC Bank Group (TBCG) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached GEL 319 million, up 7% year-on-year, with adjusted net profit at GEL 339 million, up 14% year-on-year after excluding a one-off impairment in Uzbekistan.

• Group ROE was 23.2% (24.2% adjusted), in line with medium-term guidance.

• Digital product ramp-up continued, with TBC Card in Georgia and Salom/Osmon Cards in Uzbekistan driving engagement and customer growth; digital monthly active users increased 28% year-on-year to 7.2 million.

• Board approved a quarterly dividend of GEL 1.5 per share for Q1 2025, moving to regular quarterly distributions.

• New HoldCo, TBC Digital, established in Uzbekistan to consolidate operations and unlock synergies.

Financial highlights

• Total operating income grew 25% year-on-year to GEL 774 million, with net interest income up 20% and non-interest income up 38%.

• Cost-to-income ratio remained stable at 37.2%; operating expenses increased 25% year-on-year.

• Gross loans grew 19.1% year-on-year to GEL 27.4 billion; customer deposits rose 13.1% to GEL 22.3 billion.

• NIM remained strong at 6.7% (Group), with loan yields and deposit rates stable.

• Adjusted net profit (excluding Uzbekistan's non-recurring impairment) was GEL 339 million, up 14.4% year-on-year.

Outlook and guidance

• Management remains confident in achieving all 2025 strategic targets, including >23% ROE and GEL 1.5 billion net profit.

• Expectation to maintain NIM in Georgia around mid-5% for the medium term.

• Uzbekistan guidance and long-term profitability targets remain unchanged despite new regulatory changes on loan portfolio composition.

• Continued investment in digital products and SME banking, especially in Uzbekistan, expected to drive further expansion.