TBC Bank Group PLC ("TBC Bank") Announces 1H and 2Q 2017 Consolidated Results

TBC Bank Group PLC ("TBC PLC") Announces 1H and 2Q 2017 Consolidated Results: Underlying^[1] Net Profit for 1H 2017 up by 45.6% YoY to GEL 184.4 million
Underlying1 Net Profit for 2Q 2017 up by 37.2% YoY to GEL 86.3 million

The European Union Market Abuse Regulation EU 596/2014 requires TBC Bank Group PLC to disclose that this announcement contains Inside Information, as defined in that Regulation

Financial Highlights

2Q 2017 P&L Highlights                                                            

• Underlying1 net profit amounted to GEL 86.3 million (2Q 2016: GEL62.9 million; 1Q 2017: GEL 98.1 million)
• Reported net profit amounted to GEL 79.9 million (2Q 2016: GEL 80.5 million; 1Q 2017: GEL 96.6 million)
• Underlying¹ return on equity (ROE) amounted to 20.4% (2Q 2016: 19.9%; 1Q 2017: 24.6%)
• Reported return on equity (ROE) amounted to 18.9% (2Q 2016: 25.5%; 1Q 2017: 24.2%)
• Underlying¹ return on asset (ROA) amounted to 3.2% (2Q 2016:3.8%; 1Q 2017:3.7%)
• Reported return on asset (ROA) amounted to 3.0% (2Q 2016:4.9%; 1Q 2017: 3.7%)
• Total operating income for the period was up by 32.9% YoY (up by 9.1% YoY to GEL 170.1 million without the Bank Republic estimated contribution) and by 1.8% QoQ to GEL 207.1 million
• Underlying¹ cost to income ratio stood at 41.2% (2Q 2016: 41.7%; 1Q 2017: 39.8%)
• Reported cost to income was 44.9% (2Q 2016: 45.1%; 1Q 2017: 40.8%)
• Cost of risk on loans stood at 1.3% and increased by 0.2 pp YoY. QoQ cost of risk remained stable at constant currency rate
• Net interest margin (NIM) stood at 6.8% in 2Q 2017, down by 1.1 pp YoY and up by 0.2 pp QoQ
• Risk adjusted net interest margin (NIM) stood at 5.3% in 2Q 2017(2Q 2016: 6.7%; 1Q 2017: 5.1%)

       
1H 2017 P&L Highlights                                                             

• Underlying¹ net profit was up by 45.6% YoY to GEL 184.4 million, delivering ROE without one-offs of 22.5% (1H 2016: 20.4%)
• Reported net profit was up by 26.7% YoY to GEL176.4 million, delivering ROE of 21.5% (1H 2016: 22.5%)
• Underlying¹ ROA was 3.5% (1H 2016: 3.8%)
• Reported ROA was 3.3% (1H 2016: 4.2%)
• Total operating income for the period was up by 36.4% YoY to GEL 410.6 million (up by 11.4% YoY to GEL 335.3 million without the Bank Republic estimated contribution effect)
• Underlying¹ cost to income ratio stood at 40.5% (1H 2016: 41.0%) 
• Reported cost to income stood at 42.8% (1H 2016: 44.7%)
• Cost of risk on loans stood at 1.1% unchanged from 1H 2016
• Net interest margin (NIM) stood at 6.7% (1H 2016: 7.8%)
• Risk adjusted net interest margin (NIM) stood at 5.3% (1H 2016: 6.5%)

Balance Sheet Highlights as at 30 June 2017

• Total assets reached GEL 11,280.8 million as of 30 June 2017, up by 66.6% YoY and 8.9% QoQ
• Gross loans and advances to customers stood at GEL 7,386.4 million as of 30 June 2017, up by 56.8% YoY (up by 30.8% YoY to 6,160.4 million without the Bank Republic estimated contribution effect) and up by 3.7% QoQ
• Net loans to deposits + IFI funding stood at 90.6% and Net Stable Funding Ratio (NSFR) stood at 129%
• NPLs stood at 3.4%, down by 1.3 pp YoY and stable QoQ
• NPLs coverage stood at 84.3%, (at 219.3% with collateral) (31 March 2017: 84.6%; 30 June 2016: 85.6%)
• Total customer deposits stood at GEL 6,666.4 million as of 30 June 2017, up by 56.1% YoY (up by 43.3% YoY to 6,116.9 million without the Bank Republic estimated contribution) and up by 9.8% QoQ
• Regulatory tier I and total capital adequacy ratios stood at 10.8% and 14.6% respectively

Additional Information Disclosure

The following materials in connection with TBC PLC's financial results are disclosed on our Investor Relations website on http://tbcbankgroup.com/ under Results Announcement section:

• 1H and 2Q 2017 Results Report
• 1H and 2Q 2017 Results Call Presentation

For further enquiries, please contact:
Head of Investor Relations
Anna Romelashvili 
ir@tbcbank.com.ge

About TBC Bank Group PLC ("TBC PLC")

TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG.

TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 38.0% of loans and 39.8% of non-banking deposits as at 30 June 2017, according to the data published by the National Bank of Georgia.