TBC Bank Group (TBCG) Q4 2023 earnings summary

Executive summary

• FY23 net profit was GEL 1,140.0m, up 13.6% reported and 2% adjusted for the prior-year one-off tax charge; ROE was 26.5%.

• Core Georgian banking growth and expanding Uzbekistan fintech operations supported revenue, lending and digital engagement.

Financial highlights

• FY23 total revenue rose 15% to GEL 2.374bn; net interest income increased 26.8% to GEL 1,635.8m and net fee and commission income rose 27.8% to GEL 412m.

• FY23 operating profit was GEL 1.334bn, up 7%; operating expenses rose 24.2% to GEL 858.9m, reflecting investment and higher remuneration.

• Q4 net profit was GEL 291.4m, up 30.2% YoY; excluding the prior-year tax charge and unusually high FX revenue, it was down 14%.

• At Dec-23, assets were GEL 33.0bn, gross loans GEL 22.1bn and customer deposits GEL 20.4bn; loans grew 21.3% and deposits 13.0% YoY at constant currency.

• Q4 net interest income rose 23.6% YoY to GEL 441.7m; net fee and commission income increased 15.5% to GEL 110.1m.

Outlook and guidance

• 2023–2025 targets: net profit of GEL 1.5bn with 15%+ CAGR, ROE above 23%, digital MAU of 7m, TNET GMV above GEL 500m and a 25–35% dividend payout ratio.

• Uzbekistan targets included 5m+ digital MAU, 80%+ loan CAGR and net profit above GEL 200m; FY23 actuals were 4.3m MAU and GEL 59m net profit.

• TBC Capital projected Georgia GDP growth of 5.6% in 2024 and 5.4% in 2025; the Uzbekistan baseline was ~5.5% for the next couple of years.

• Georgia 2024 projections included 4.1% year-end inflation and an 8.5% policy rate; monetary easing was expected to continue.