TBC Bank’s Earnings Call Highlights Growth and Challenges

TBC Bank ((GB:TBCG)) has held its Q3 earnings call. Read on for the main highlights of the call.

TBC Bank’s recent earnings call painted a picture of robust financial health and growth, particularly in Georgia and Uzbekistan. The call underscored significant achievements in digital engagement and dividend declarations. However, it also highlighted some challenges, such as regulatory hurdles and inflationary pressures that could pose headwinds in the near future.

Record Quarterly Earnings and Strong Performance

The bank reported a net profit of GEL 368 million for the third quarter, marking a 6% increase compared to the previous year. The return on equity was an impressive 24.4%, with revenue growth of 7% year-on-year, showcasing the bank’s strong financial footing.

Georgia’s Economic Growth and Banking Performance

Georgia’s economy demonstrated resilience with a real GDP growth of 6.5% in Q3. TBC Bank’s loan book in Georgia expanded by 9%, and the net interest margin reached 6%, reflecting the bank’s solid performance in the region.

Uzbekistan’s Growth and Digital Expansion

In Uzbekistan, TBC Bank achieved a net profit of GEL 41 million, a 30% increase year-on-year. The bank’s loan book nearly doubled, and its digital ecosystem saw a significant boost, with registered users increasing by 28% to reach 22 million.

Dividend Declaration

The Board of TBC Bank declared a quarterly dividend of GEL 1.75 per share, bringing the total dividends for the first nine months of 2025 to GEL 5, reflecting the bank’s commitment to returning value to its shareholders.

Digital Engagement Growth in Georgia

Digital engagement in Georgia saw substantial growth, with digital monthly users reaching 1.2 million, accounting for two-thirds of active customers. The daily active users to monthly active users ratio stood at 46%.

Regulatory Challenges in Uzbekistan

TBC Bank faced regulatory changes in Uzbekistan, including new risk weights on unsecured consumer loans and a shift from micro loans to SME lending. These changes impacted the bank’s net profit guidance.

Fraud and Asset Quality Issues in Uzbekistan

The bank encountered a $9 million fraud incident and increased cost of risk due to testing new segments in Uzbekistan, highlighting challenges in maintaining asset quality.

Georgia’s Inflation Pressure

Inflation in Georgia rose to 4.8% in September, exceeding the National Bank of Georgia’s target of 3%, posing potential challenges for economic stability.

Muted Loan Growth in Georgia

Loan growth in Georgia was muted due to large one-off repayments in the corporate sector, which affected the overall loan growth figures.

Forward-Looking Guidance

Despite the challenges, TBC Bank remains optimistic about its long-term growth prospects in Georgia and Uzbekistan. The bank plans strategic shifts towards SME lending in Uzbekistan and maintains a strong capital position. The robust financial performance and digital engagement growth are expected to continue driving the bank’s success.

In conclusion, TBC Bank’s earnings call reflected a positive sentiment with strong financial results and growth in digital engagement. While regulatory challenges and inflationary pressures present hurdles, the bank’s strategic focus and robust performance indicate a promising outlook.