TBC Bank shares fall as group posts annual results

TBC Bank shares fell sharply today after the group posted its latest set of annual results. 

The bank, which is based in Georgia and listed in London, saw its shares fall 7.44 per cent or 187.40p to 2,332.60p in early trading, having surged over 66 per cent in the last year. 

The group said that despite a one-off tax charge of GEL113million, or £35.51million, its net profit increased by 24 per cent year-on-year to GEL1billion, with a return on equity of 27 per cent.

Updates: TBC Bank shares fell sharply today after the group posted its annual results

The FTSE 250-listed lenders said, excluding the one-off tax charge, its underlying net profit would have been GEL1.12billion.

Operating income grew by 43 per cent to GEL2.07billion amidrobust net interest income, net fee and commission income, and a hefty contribution from foreign exchange operations.

The bank’s net interest margin for the year came in at 6 per cent, marking an increase of 0.9 percentage points compared to 2021.

Including TBC UZ Bank, the operating income of the lender’s Uzbek operations amounted to GEL97million, while net profit reached GEL8million for the year. 

TBC said it saw strong growth in Georgia, with its loan book rising 16 per cent year-on-year in constant currency terms.

Boss Vakhtang Butskhrikidze, said: ‘Our strategy for the next year is to continue to build on our leading position in the Georgian financial services sector, combined with our dominant position in digital ecosystem, allowing us to generate steady growth and solid profitability, as well as further pursue our international ambitions through our Uzbek subsidiaries, by leveraging our superior customer experience, strong data analytics and best-in-class digital solutions.’

Analysts at Peel Hunt, said: ‘TBC’s shares have risen by >80 per cent over the past year, yet the scale of upgrades has meant that it continues to trade at depressed valuation multiples: the PE for 2023 is <5x and the dividend yield is >8 per cent.

‘We believe that the shares are due a re-rating given the momentum in the business and reiterate our Buy recommendation.’

In December, TBC Bank said its subsidiary, JSC TBC, had signed a $100million loan agreement with Asian Infrastructure Investment Bank, marking AIIB’s first ever transaction with a commercial bank in Georgia.

The bank said the entire facility is available for disbursement in two currencies, including Georgian Lari, thereby improving access to increasing demand for local currency funding.

The facility is designated to finance the business activities of local entrepreneurs, primarily working capital needs and medium-term investments of borrowers, ‘promoting their sustainable economic development.’

This post first appeared on Dailymail.co.uk