TBC Bank Group (TBCG) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly and half-year earnings, with Q2 2024 net profit up 12% YoY to GEL 329–333 million and 1H 2024 profit at GEL 626 million (+14% YoY); ROE at 27.1% in Q2 2024, driven by strong digital engagement and market leadership in Georgia and Uzbekistan.

• Digital monthly active users reached 5.7 million (+33% YoY), and the active customer base grew to nearly 6 million.

• Uzbekistan contributed 7% of group profit and 13% of total operating income, with rapid expansion in digital financial services and 25.7–27.8% ROE.

• Maintained market leadership in Georgia with over 39% share in loans and deposits.

• Interim dividend of GEL 2.55 per share declared, payable in November 2024.

Financial highlights

• Net profit increased by 12% YoY to GEL 329–333 million in Q2 2024; 1H 2024 net profit up 14% YoY to GEL 626 million.

• Total operating income rose 16% YoY to GEL 678–680 million, driven by 15% growth in net interest income and 17% in net fee and commission income.

• Gross loan portfolio grew by 21–25% YoY (constant currency), reaching GEL 24.1 billion; deposits up 13% YoY to GEL 21.5 billion.

• Cost-to-income ratio stood at 37.8% in Q2 2024, reflecting ongoing investments.

• NIM remained strong at 6.4% in Q2 2024.

Outlook and guidance

• Revised 2024 real GDP growth forecast for Georgia to 7.4% (from 6.4%) and Uzbekistan to 6.1% (from 5.6%), reflecting strong macroeconomic fundamentals.

• Group targets for 2023–2025 include 7 million digital MAU, GEL 1.5 billion net profit (15%+ CAGR), and 23%+ ROE.

• Uzbekistan targets 5 million+ digital MAU, 80%+ loan CAGR, and GEL 200+ million net profit.

• Expect loan growth to remain strong, with full-year growth anticipated at 15%+.

• Cost of risk in Georgia expected to remain below 1% in the near term, with a medium-term normalized level around 1%.