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For the second quarter of 2024, TBC Bank Group PLC (LSE:TBCG) reported a net profit of GEL 329 million, reflecting a 12% increase compared to the same period in the previous year. The return on equity (ROE) for this quarter was 27.1%. This result continues the positive trend observed in the first quarter of 2024, marking a record high for quarterly net profit.
First Half 2024 Financial Highlights
In the first half of 2024, the company achieved a net profit of GEL 626 million, which represents a 14% rise year-on-year. The ROE for the first half stood at 26.0%. The digital banking sector in Uzbekistan contributed 7% to the Group’s net profit, with an ROE of 25.7%. Additionally, the Group saw a significant increase in digital engagement, with digital monthly active users reaching 5.7 million, a 33% increase from the previous year, and a growth of nearly half a million daily active users over the same period.
Operating Income Growth
The total operating income for the second quarter of 2024 increased by 16% year-on-year, reaching GEL 678 million. This growth was driven by a 15% rise in net interest income and a 17% increase in net fee and commission income. The Group’s net interest margin was recorded at 6.4%.
Performance in Georgia
In Georgia, financial services exhibited continued growth in the second quarter of 2024. The loan book expanded by 19% year-on-year on a constant currency basis, with net profit rising by 9% year-on-year and an ROE of 26.9%. Deposits also grew by 9% year-on-year on a constant currency basis. Capital ratios remained strong, with CET1, Tier 1, and Total Capital ratios at 16.8%, 22.3%, and 25.9%, respectively, significantly exceeding regulatory requirements. This strong capital position was bolstered by the issuance of USD 300 million AT1 capital notes in April 2024.
Digital Banking in Uzbekistan
The digital banking operations in Uzbekistan achieved notable results in the second quarter of 2024. The segment generated GEL 91 million in total operating income and GEL 24 million in net profit, marking increases of 89% and 90% year-on-year, respectively. This segment contributed 13% of total operating income and 7% of net profit to the Group. The ROE for the Uzbek operations was 27.8%. TBC UZ’s retail loans reached GEL 1.1 billion, up by 113% year-on-year, and its retail deposits amounted to GEL 722 million, up by 58% year-on-year.
Investment in Uzbekistan Operations
To support the growth of the Uzbekistan business, an additional USD 23 million was invested into TBC UZ capital. The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) also invested USD 7.6 million each. These investments are intended to support further development of core lending products in the second half of 2024 and beyond.
Interim Dividend Declared
Looking ahead, the company remains optimistic about maintaining strong financial performance and expanding its leadership in Georgia and Uzbekistan. An interim dividend of GEL 2.55 per share has been declared, with payment scheduled for November 2024.
