Georgian TBC Bank Group plans expansion in Uzbek banking sector

Finance Materials 20 May 2020 15:43 (UTC +04:00)
Georgian TBC Bank Group plans expansion in Uzbek banking sector

BAKU, Azerbaijan, May 20

By Ilkin Seyfaddini - Trend:

Georgian TBC Bank Group plans to increase the loan portfolio of TBC Uzbekistan by the end of 2022 to $700 million, Trend reports with reference to the bank's report on the 1Q2020 results.

“In the first quarter of 2020 the revenue of Payme (leading payment service provider in Uzbekistan), 51 percent of which TBC acquired for $5.5 million in April 2019, increased by 47 percent (compared to the same period of 2019). EBITDA (earnings before expenses) increased by 21 percent,” the message said.

In response to the impact of the COVID-19 pandemic and quarantine, the bank revised its business model, shifting its focus to lighter assets and more cost effective operations.

At this stage, the bank offers current and savings accounts; cash loans, wage-backed loans and car loans; cards, mobile applications and operational capabilities, including P2P transactions, money transfers and utility payments; consumer finance operations at points of sale; and close cooperation with Payme.

Key financial forecasts in Uzbekistan remain unchanged despite the pandemic crisis: losses are expected to range from $6 million to $8 million in the first year, to reach a break-even point in the second year and to make a profit in the third year, the report said.

Earlier, Georgian TBC Bank obtained a license in Uzbekistan and said it will start operating in Tashkent in June.

The bank had said that by the end of the year TBC Uzbekistan will open 20 branches across the country, but due to quarantine measures plans have changed: three branches will be opened in Tashkent, and the following year the expansion will shift to the regions.

Georgian TBC Bank was founded in 1992. Online banking from TBC has been awarded as one of the best in Central and Eastern Europe for several years in a row (2012-2015).

In June 2014, the London Stock Exchange invited TBC Bank to participate in trading with its Global Depositary Receipts (GDR). The bank received $239 million for its IPO (initial public offering) with a market value of $640 million. This IPO was the largest public offering from Georgia.


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