TBC Bank Group (TBCG) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly and 1H 2024 earnings, with Q2 net profit up 12% YoY to GEL 329-333 million and ROE at 27.1%; digital monthly active users reached 5.7 million, up 33% YoY, with strong growth in Georgia and Uzbekistan.

• Uzbekistan contributed 7% of group profit, 44% of consumer loans, and posted 25.7%-27.8% ROE in Q2 2024.

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

Financial highlights

• Q2 2024 net profit reached GEL 329-333 million (+12% YoY); 1H 2024 net profit was GEL 626 million (+14% YoY).

• Total operating income for Q2 2024 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 loans increased 24.6%-25% YoY to GEL 24.1 billion; deposits up 13% YoY to GEL 21.5 billion.

• Cost-to-income ratio stood at 37.8% in Q2 2024.

• NIM remained strong at 6.4% in Q2 2024.

Outlook and guidance

• 2024 GDP growth forecast for Georgia revised up to 7.4%; Uzbekistan to 6.1%.

• Group targets for 2023-2025: 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.

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