TBC Bank Group (TBCG) Q3 2024 earnings summary

Executive summary

• Net profit for 3Q 2024 reached GEL 347 million, up 16% year-over-year, with ROE at 26.6% and digital MAU at 5.9 million, up 30% YoY.

• Strong growth in Georgia with 17% YoY loan growth and market leadership; Uzbekistan operations delivered 99% YoY loan growth and doubled net profit.

• Uzbekistan business now contributes 9% of group earnings and 15% of operating income, continuing to scale rapidly.

• Consistent profitability over the decade as a public company, with c22% average ROE and 25% net profit CAGR.

• No impact from recent Georgian elections on the operating environment or economic outlook.

Financial highlights

• Group net profit increased 16% YoY to GEL 347 million in 3Q 2024; 9M 2024 net profit was GEL 973 million, up 15% YoY.

• Total operating income grew 23% YoY to GEL 754 million in 3Q 2024, driven by 15% YoY growth in net interest income and 39% YoY growth in net fee and commission income.

• Gross loans reached GEL 24.8 billion (+22% YoY); deposits at GEL 22.5 billion (+20% YoY); total assets at GEL 37.97 billion (+26.8% YoY).

• Cost-to-income ratio at 37.2% for 3Q 2024; operating expenses up 29% YoY, mainly due to Uzbekistan expansion.

• NPLs stable at 2.1%; cost of risk at 0.8% in 3Q 2024; NPL provision coverage at 72.4%.

Outlook and guidance

• On track to meet 2025 targets: GEL 1.5 billion group profit, 23%+ ROE, 7 million digital MAU, and 25-35% dividend payout ratio.

• Uzbekistan targets: 5 million+ digital MAU, 80%+ loan book CAGR, GEL 200 million+ profit by 2025.

• Upgraded 2024 GDP growth forecasts: Georgia to 9.4%, Uzbekistan to 6.5%; 2025 Georgia GDP growth projected at 5.5%.

• Group cost of risk in Georgia expected to remain below 1% in coming quarters; Uzbekistan normalized at 7-8%.

• Confident in meeting all 2025 strategic targets.