TBC Bank Reports Fourth-Quarter Results

TBC Bank has announced a slight decline in its fourth-quarter pretax profit due to increased costs, but overall, the bank's performance for the year has improved. The bank has also decided to raise its dividend payout.

Fourth-Quarter Performance

In the last three months of 2023, TBC Bank's pretax profit decreased to 337.3 million Georgian lari ($125.95 million) from GEL370.7 million in the same quarter of the previous year. The decline can be attributed to a 27% rise in operating expenses, driven by the bank's overall growth in business.

Yearly Profit Growth

For the entire year, TBC Bank's pretax profit increased by 7%, reaching GEL1.33 billion.

Interest Income and Loan Portfolio

TBC Bank witnessed a significant surge in net interest income during the fourth quarter, which rose by 24% to GEL441.7 million. This boost was supported by a 40 basis point increase in the net interest margin, reaching 6.7%. Additionally, interest income from loans showed an upward trend, and the loan portfolio experienced a 21% jump.

Fee and Commission Income

The net fee and commission income also showed positive growth, increasing by 16% year-on-year to GEL110.1 million.

Economic Outlook for Georgia

TBC Bank commented on the current economic situation in Georgia, stating that although economic activity in the country moderated from the double-digit growth seen in the past two years, it remained strong in 2023 with a growth rate of 7.5%. The bank expects further normalization in the coming years, with Georgia's real GDP projected to increase by 5.6% in 2024 and 5.4% in 2025.

Dividend Payout

To reward its shareholders, TBC Bank has declared a final dividend of GEL4.67, leading to a full-year payout of GEL7.22. This represents a notable 32% increase compared to the previous year.

TBC Bank continues to make strides in its financial performance and remains optimistic about the future.