TBC Bank (LSE:TBCG) Group PLC, which is headquartered in Georgia, said it maintained strong growth in the first half despite a “challenging geopolitical environment.”
Net profit was 235mln Georgian Lari (GEL) (£71.8mln) in the second quarter to 30 June 2022, up 5% on the first quarter of the year, which according to a statement was driven by strong income generation.
However, the figure was down 6% year-on-year, reflecting a high base a year ago when profits were boosted by provision recoveries of 50.1mln GEL and gains of 26.2mln GEL from a property disposal, the bank noted.
The quarter-on-quarter rise came despite tourism recovery from Covid having slowed in Georgia, although the negative impact of this was offset by a higher migration to the country.
The UK-listed bank added that “despite a surge in oil prices, Georgia’s terms of trade remain stable and remittance inflows are high”.
Additionally, the bank said it expects the Georgian economy to grow by 10% this year, going in the opposite direction of UK GDP.
TBC said it remains a market leader in Georgia in terms of loans and deposits, with the loan book at end-June showing 23% growth compared with the same point in 2021 in constant currency terms.
The bank added that it also continues to grow its business in Uzbekistan.
In terms of outlook, the chief executive Vakhtang Butskhrikidze re-iterated the bank's medium-term targets, which include an above 20% return on equity, a cost to income ratio below 35%, a dividend pay-out ratio of 25%-35% and annual loan growth of between 10% and 15%.