Consolidated net profit of Georgian TBC Bank increases
BAKU, Azerbaijan, Feb.21
By Tamilla Mammadova – Trend:
Underlying consolidated net profit for 2019 of Georgian TBC Bank reached 545.1 million lari ($193.5 million), up by 19.8 percent compared to 2018, Trend reports via TBC Bank.
As reported, underlying return of bank's equity was 22.6 percent and underlying return of assets stood at 3.3 percent.
In 2019, Bank's operating income amounted to 1.1 billion lari ($390.5 million), up by 3.7 percent year-on-year, which was supported by increase in net fee and commission income and net interest income.
The net interest margin increased by 1.1 percentage point year-on-year and stood at 5.6 percent in 2019 and 5.3 percent in the fourth quarter of 2019.
The growth in net profit was also strongly supported by decreasing provisions, which was driven by improved performance across all segments and change in the product mix. As a result, cost of risk of bank stood at 0.7 percent in 2019 compared to 1.6 percent in 2018.
"We also updated our guidance on cost of risk for 2020 and expect to be around 1 percent, given the positive effects of the responsible lending regulation on the loan book quality," the bank says.
In terms of balance sheet growth, bank's loan book expanded by 22.1 percent year-on-year or by 17.9 percent on a constant currency basis, mainly supported by growth in the corporate.
Over the same period, deposits increased by 7.5 percent year-on-year or by 2.9 percent on constant currency basis, driven by bank's policy of reducing deposits due to high liquidity as a result of the recent bond issuance.
As a result, as of December 31, 2019, bank's loan book market share stood at 39.5 percent, while our deposit market share stood at 39 percent.
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