TBC Bank Group PLC - 3Q and 9M 2024 Results Report

RNS Number : 0438L

TBC Bank Group PLC

06 November 2024

TBC BANK GROUP PLC ("TBC Bank")

3Q AND 9M 2024 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

Forward-looking statements

This document contains forward-looking statements; such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause the actual results, performance or achievements of TBC Bank Group PLC ("the Bank" or "the Group") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Bank's present and future business strategies and the environment in which the Bank will operate in the future. Important factors that, in the view of the Bank, could cause actual results to differ materially from those discussed in the forward-looking statements include, among others: the achievement of anticipated levels of profitability; growth, cost and recent acquisitions; the impact of competitive pricing; the ability to obtain the necessary regulatory approvals and licenses; the impact of developments in the Georgian and Uzbek economies; the impact of Russia-Ukraine war; the political and legal environment; financial risk management; and the impact of general business and global economic conditions.

None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises, nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the document. These forward-looking statements speak only as of the date they are made, and, subject to compliance with applicable law and regulations, the Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the document to reflect actual results, changes in assumptions or changes in factors affecting those statements.

Certain financial information contained in this management report, which is prepared on the basis of the Group's accounting policies applied consistently from year to year, has been extracted from the Group's unaudited management accounts and financial statements. The areas in which the management accounts might differ from the International Financial Reporting Standards and/or generally accepted U.S. accounting principles could be significant; you should consult your own professional advisors and/or conduct your own due diligence for a complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this report have been subjected to rounding adjustments. Accordingly, the numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.

3Q and 9M 2024 consolidated financial results conference call details

TBC Bank Group PLC ("TBC PLC") has published its unaudited consolidated financial results for the 3Q and 9M 2024 on Wednesday, 6 November 2024 at 7.00 AM GMT. The management team will host a conference call at 2.00 PM GMT.

To participate in the conference call live video webinar, please register using the following link:

https://www.netroadshow.com/events/login?show=64f95a9a&confId=72527

You will receive access details via email.

Contacts

Andrew Keeley

Director of Investor Relations

E-mail: AKeeley@tbcbank.com.ge

Tel: +44 (0) 7791 569834

Web: www.tbcbankgroup.com

Anna Romelashvili

Head of Investor Relations

E-mail: ARomelashvili@tbcbank.com.ge

Tel: +(995) 577 205 290

Web: www.tbcbankgroup.com

Investor Relations Department

E-mail: IR@tbcbank.com.ge

Tel: +(995 32) 227 27 27

Web: www.tbcbankgroup.com

Table of contents

3Q and 9M 2024 unaudited consolidated financial results announcement

Interim management report

Financial highlights

Operational highlights

Letter from the Chief Executive Officer

Economic overview

Progress towards our mid-term strategy targets

Unaudited consolidated financial results overview for 3Q 2024

Unaudited consolidated financial results overview for 9M 2024

Additional information

1) Financial disclosures by business lines

2) Glossary

3) Ratio definitions and exchange rates

3Q and 9M 2024 unaudited consolidated financial results

3Q 2024 profit of GEL 347 million, up by 16% YoY, with ROE at 26.6%.

9M 2024 profit of GEL 973 million, up by 15% YoY, with ROE at 26.2%.

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

Income statement

In thousands of GEL	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
Net interest income	492,561	458,111	427,934	15.1%	7.5%	1,393,516	1,194,063	16.7%
Net fee and commission income	144,797	123,398	104,152	39.0%	17.3%	372,498	302,226	23.3%
Other non-interest income	116,296	96,922	83,133	39.9%	20.0%	284,051	237,935	19.4%
Total operating income	753,654	678,431	615,219	22.5%	11.1%	2,050,065	1,734,224	18.2%
Total credit loss allowance	(55,275)	(31,565)	(46,159)	19.7%	75.1%	(131,971)	(133,261)	-1.0%
Operating expenses	(280,208)	(256,577)	(218,087)	28.5%	9.2%	(766,456)	(604,427)	26.8%
Profit before tax	418,171	390,289	350,973	19.1%	7.1%	1,151,638	996,536	15.6%
Income tax expense	(70,908)	(60,991)	(50,485)	40.5%	16.3%	(178,606)	(148,002)	20.7%
Profit for the period	347,263	329,298	300,488	15.6%	5.5%	973,032	848,534	14.7%

Balance sheet

In thousands of GEL	Sep'24	Jun'24	Sep'23	Change YoY	Change QoQ
Total assets	37,972,326	35,780,415	29,956,393	26.8%	6.1%
Gross loans	24,778,623	24,128,807	20,365,135	21.7%	2.7%
Customer deposits	22,548,107	21,464,578	18,722,415	20.4%	5.0%
Total equity	5,427,772	5,079,760	4,473,400	21.3%	6.9%
Number of ordinary shares	56,022,807	55,361,967	55,140,216	1.6%	1.2%

Key ratios

	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
ROE	26.6%	27.1%	27.6%	-1.0 pp	-0.5 pp	26.2%	27.0%	-0.8 pp
ROA	3.7%	3.8%	4.1%	-0.4 pp	-0.1 pp	3.7%	4.0%	-0.3 pp
NIM	6.4%	6.4%	6.9%	-0.5 pp	0.0 pp	6.4%	6.7%	-0.3 pp
Cost to income	37.2%	37.8%	35.4%	1.8 pp	-0.6 pp	37.4%	34.9%	2.5 pp
Cost of risk	0.8%	0.5%	0.9%	-0.1 pp	0.3 pp	0.7%	0.9%	-0.2 pp
NPL to gross loans	2.1%	2.0%	2.0%	0.1 pp	0.1 pp	2.1%	2.0%	0.1 pp
NPL provision coverage ratio	72.4%	75.5%	87.6%	-15.2 pp	-3.1 pp	72.4%	87.6%	-15.2 pp
Total NPL coverage ratio	140.9%	141.9%	151.6%	-10.7 pp	-1.0 pp	140.9%	151.6%	-10.7 pp
Leverage (x)	7.0x	7.0x	6.7x	0.3x	0x	7.0x	6.7x	0.3x
EPS (GEL)	6.17	5.94	5.54	11.4%	3.9%	17.50	15.44	13.3%
Diluted EPS (GEL)	6.14	5.91	5.45	12.7%	3.9%	17.42	15.22	14.5%
BVPS (GEL)	94.88	90.32	80.81	17.4%	5.0%	94.88	80.81	17.4%
Georgia
CET 1 CAR	16.6%	16.8%	17.5%	-0.9 pp	-0.2 pp	16.6%	17.5%	-0.9 pp
Tier 1 CAR	20.4%	22.3%	19.9%	0.5 pp	-1.9 pp	20.4%	19.9%	0.5 pp
Total CAR	23.9%	25.9%	22.3%	1.6 pp	-2.0 pp	23.9%	22.3%	1.6 pp
Uzbekistan
CET 1 CAR	16.4%	12.6%	14.7%	1.7 pp	3.8 pp	16.4%	14.7%	1.7 pp
Tier 1 CAR	16.4%	12.6%	14.7%	1.7 pp	3.8 pp	16.4%	14.7%	1.7 pp
Total CAR	19.6%	16.4%	15.3%	4.3 pp	3.2 pp	19.6%	15.3%	4.3 pp

Operational highlights

Customer base

In thousands	Sep'24	Jun'24	Sep'23	Change YoY	Change QoQ
Total unique registered users	20,306	19,051	15,254	33%	7%
Georgia	3,418	3,360	3,221	6%	2%
Uzbekistan	16,888	15,691	12,033	40%	8%
Total monthly active customers	6,563	6,378	5,220	26%	3%
Georgia	1,671	1,633	1,575	6%	2%
Uzbekistan	4,892	4,745	3,645	34%	3%
Total digital monthly active users (digital MAU)	5,892	5,695	4,519	30%	3%
Georgia	1,000	950	874	14%	5%
Uzbekistan	4,892	4,745	3,645	34%	3%
Total digital daily active users (digital DAU)	1,948	1,884	1,436	36%	3%
Georgia	456	441	384	19%	3%
Uzbekistan	1,492	1,443	1,052	42%	3%
Digital DAU/MAU	33%	33%	32%	1 pp	0 pp
Georgia	46%	46%	44%	2 pp	0 pp
Uzbekistan	30%	30%	29%	1 pp	0 pp

Uzbekistan - key highlights

In thousands of GEL	Sep'24	Jun'24	Sep'23	Change YoY	Change QoQ
Gross loans and advances to customers	1,256,150	1,122,400	632,013	98.8%	11.9%
Customer accounts	855,689	721,632	515,586	66.0%	18.6%

In thousands of GEL	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
Total operating income	111,373	91,081	54,354	104.9%	22.3%	276,499	142,727	93.7%
Profit for the period	31,595	23,779	13,684	130.9%	32.9%	73,811	38,896	89.8%
ROE	28.2%	27.8%	23.4%	4.8 pp	0.4 pp	26.6%	24.6%	2 pp

Letter from the Chief Executive Officer[1]

I am delighted to announce another very strong quarter for TBC in 3Q 2024. We recorded a net profit of GEL 347 million, up 16% year-on-year, with a return on equity of 26.6%. Notably, the contribution from our digital banking ecosystem in Uzbekistan continues to grow, now representing 15% of the Group's total operating income and 9% of profit. At the same time, our digital monthly active users ("MAU") reached 5.9 million at the Group level, up by 30% year-on-year.

Across the board income growth drives strong performance in 3Q 2024

In 3Q 2024, our total operating income grew by a very healthy 23% year-on-year, reaching GEL 754 million. This growth was broad-based, led in particular by net interest income increasing by 15% year-on-year and a strong contribution from net fee and commission income, which rose by 39% year-on-year. At the same time, I am pleased to report that our NIM dynamics appear to have turned the corner, with Group NIM stabilising at 6.4%.

Strong growth in Georgia, rapid expansion in Uzbekistan

In 3Q 2024, our Georgian financial services segment continued to demonstrate very good growth, with our loan book increasing by 17% year-on-year on a constant currency basis. Over the same period, our deposits grew by 18% on a constant currency basis. As a result, our business in Georgia delivered a net profit of GEL 338 million, up 13% year-on-year, while maintaining a return on equity of 26.5%. Additionally, our capital position remains solid, with CET1, Tier 1, and Total Capital ratios standing at 16.6%, 20.4%, and 23.9%, respectively, all well above the minimum regulatory requirements.

Meanwhile, our digital banking ecosystem in Uzbekistan maintained its rapid expansion, with the loan book nearly doubling year-on-year to reach GEL 1.3 billion (USD 460 million), capturing almost 15% share of the microloan market^{^[2]}, and accounting for 44% of the Group's unsecured consumer loans. Retail deposits also saw significant growth, increasing by 66% to GEL 856 million (USD 314 million), contributing 10% of the Group's total retail deposits and 3.5% share of the Uzbekistan retail deposit market. This strong performance translated into GEL 111 million (USD 41 million) in total operating income and GEL 32 million (USD 12 million) in net profit, up by 105% and 131% year-on-year, respectively, with the return on equity for our Uzbek operations reaching an excellent 28.2%.

New flagship daily banking product launched in Uzbekistan

We continue to leverage our Group's deep technological expertise and extensive experience in building best-in-class banking and financial services. I would like to highlight the recent launch of Salom Card, our new flagship daily banking product in Uzbekistan. We believe it will set a new benchmark for daily banking services in the country, offering a range of benefits previously unavailable on the market and an easy-to-use, fully digital interface through the TBC mobile app. We are also in the process of rolling out credit cards and transactional MSME banking, both of which will be fully launched by the end of this year. In addition, we have signed long-term strategic partnerships with Visa and Mastercard in Uzbekistan that will enable us to introduce their cards and additional payments solutions for our customers in order to further improve their online payments and money transfer capabilities.

Vakhtang Butskhrikidze

CEO, TBC Bank Group PLC

Economic overview

Georgia

Economic growth stronger than expected

The Georgian economy continued to surge in the third quarter of 2024, with real GDP expanding by a robust 11.1% year-on-year. This follows impressive growth rates of 7.5% in 2023 and 9.1% in the first half of 2024. Tourism has been a key catalyst for this economic acceleration. Tourist revenues experienced a significant increase compared to the same period last year. Also, based on BOP rather than instant money transfers methodology, remittances were higher judging from the second quarter data.

Net inflows into Georgia also increased strongly in the third quarter, primarily due to a strengthened trade balance. Total goods exports denominated in U.S. dollars rose by 25.6% year-over-year in the third quarter of 2024, with domestic exports increasing by 9.4%. Imports grew at a slower pace of 3.6%. Foreign direct investment (FDI) also saw a positive trend, increasing by 10.3% year-on-year in the second quarter of 2024 with reinvested FDI accounted for a substantial portion of this inflow during the first half of the year.

Fiscal consolidation continues

The government remains committed to fiscal consolidation, aiming to reduce both the budget deficit and public debt relative to GDP in the medium term. Following a seasonal surplus in the second quarter, the government recorded a deficit of 2.7% of GDP in the third quarter. As a result, the cumulative budget deficit for the first nine months of 2024 stands at 0.6% of GDP. The government's full-year target of 2.5% remains in place, aligning with the deficit level reached in 2023.

Credit growth remains strong

Bank credit growth, another key driver of the strong economy, has continued to accelerate. Year-over-year credit growth rose from 17.7% in June 2024 to 18.7% in September 2024, when adjusted for exchange rate. Given the low and stable inflation, real credit growth also remained robust at 18.0%. Lending to legal entities remains higher, increasing by 21.1% year-over-year, while lending to individuals grew by 16.6% in the third quarter of 2024. The gradual dedollarization of bank lending continued, with the share of foreign currency loans declining slightly to 43.5% at the end of September 2024, down from 44.4% at the end of June 2024.

GEL impacted by inflows and sentiment

The GEL experienced slight depreciation in May and June 2024. To address excessive volatility, the NBG intervened by selling approximately USD 220 million in the foreign exchange market during these months. Strong foreign currency inflows helped the GEL recover to 2.7 GEL per USD by mid-July and enabled the NBG to increase foreign exchange reserves, thereby strengthening monetary buffers. More recently, renewed market uncertainty caused the GEL to depreciate slightly, reaching 2.72 in October, prompting the NBG to conduct additional foreign exchange interventions.

The CPI inflation remains below the NBG's 3% target, standing at 0.6% year-over-year in Septemeber, with underlying inflation also not showing signs of inflationary pressures. Therefore, the NBG's decision to maintain the monetary policy rate (MPR) at 8% in the third quarter was primarily driven by higher uncertainties also internationally and still tight monetary policy stance in the US.

Uzbekistan

Continued strong economic performance

Uzbekistan's economy continues to expand significantly, with real GDP growth reaching 6.9% in the third quarter of 2024, following a 6.4% increase in the second quarter. In terms of external trade, exports of goods rose by 24.9% year-on-year in the third quarter, while imports declined by 3.9%. Retail credit growth remained strong but slowed slightly, driven by a cooling in non-mortgage lending. Despite this moderation, retail credit growth still stood at a robust 22.0% year-on-year at the end of September. Mortgage credit expanded by 18.1%, while non-mortgage credit grew by 28.6% during the same period.

Annual inflation in Uzbekistan remained nearly unchanged, decreasing slightly from 10.6% in June to 10.5% in September 2024. This stability was primarily influenced by other economic factors, as utility tariffs had already been increased in June. The Central Bank of Uzbekistan lowered its monetary policy rate to 13.5% in July, influenced by the slower depreciation of the UZS, decelerating credit growth and promising outlook for underlying inflation. By the end of September 2024, the UZS was valued at 12,731 against the US Dollar, down about 3% YTD.

Upgrading economic growth forecasts

Given the strong start to 2024 and even stronger third quarter, we recently upgraded our forecast for real GDP growth in Georgia to 9.4% (from 7.4% at the time of our 2Q 2024 results), while our projection for Uzbekistan now stands at 6.5%.

More information on the Georgian economy and financial sector can be found at www.tbccapital.ge.

Progress towards our mid-term strategy targets

In 2023, TBC outlined a new set of medium-term Group and Uzbekistan business targets for 2023-2025. During 2024, we have made good progress towards meeting these targets, including maintaining ROE consistently above 23% and remaining on track to hit GEL1.5 billion Group net profit in 2025, including GEL 200+ million in Uzbekistan.

As part of our strategic review, we determined that growth in TNET GMV to GEL 500 million is no longer a core strategic financial target for the Group and we will discontinue providing specific guidance on this point given the following:

· Solidifying TNET's classifieds market leadership: TNET remains the leading online platform in Georgia for classifieds, ticketing and discounted coupons, with >50% market share and c1.6 million customers. We intend to focus on and strengthen our dominant position in these areas and add new complementary services.

· Reconfiguration of eCommerce strategy: Competitive dynamics within the eCommerce market have changed materially. In response, we have decided to focus on a model led by our market-leading C2C marketplace, with third parties providing all the services, including merchandise, distribution and logistics.

· Leveraging TBC's financial expertise: We will leverage TBC's financial know-how to embed best-in-class payments and credit products within our TNET ecosystem. We aim to grow this business profitably.

Meanwhile, we reiterate that we are fully on track to meet all of our other mid-term targets, as outlined in the tables below alongside the progress towards these as of 9M 2024:

For the Group

Target for 2025	Actual performance 9M 2024
7 million digital monthly active users	5.9 million
GEL 1.5 billion profit (15%+ CAGR)	GEL 973 million, +15% YoY
23%+ ROE	26.2%
25-35% dividend pay-out ratio	The interim dividend for 2024 is GEL 2.55 per share; GEL 50 million buyback (in 2024)

For Uzbekistan

Target for 2025	Actual performance 9M 2024
5 million+ digital monthly active users	4.9 million
80%+ loan book CAGR	+99% YoY
GEL 200 million+ profit	GEL 74 million, +90% YoY

Unaudited consolidated financial results overview for 3Q 2024

This statement provides a summary of the business and financial trends for 3Q 2024 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.

Please note that there might be slight differences in previous periods' figures due to rounding.

Consolidated income statement and other comprehensive income

In thousands of GEL	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ
Interest income	958,194	878,549	753,658	27.1%	9.1%
Interest expense	(465,633)	(420,438)	(325,724)	43.0%	10.7%
Net interest income	492,561	458,111	427,934	15.1%	7.5%
Fee and commission income	218,596	200,874	170,479	28.2%	8.8%
Fee and commission expense	(73,799)	(77,476)	(66,327)	11.3%	-4.7%
Net fee and commission income	144,797	123,398	104,152	39.0%	17.3%
Net insurance income	11,389	9,100	9,798	16.2%	25.2%
Net gains from currency derivatives, foreign currency operations and translation	101,326	85,647	66,968	51.3%	18.3%
Other operating income	3,295	2,029	5,996	-45.0%	62.4%
Share of profit of associates	286	146	371	-22.9%	95.9%
Other operating non-interest income	116,296	96,922	83,133	39.9%	20.0%
Credit loss allowance for loans to customers	(47,223)	(27,665)	(42,595)	10.9%	70.7%
Credit loss allowance for other financial items and net impairment for non-financial assets	(8,052)	(3,900)	(3,564)	NMF	NMF
Operating income after expected credit losses	698,379	646,866	569,060	22.7%	8.0%
Staff costs	(149,257)	(135,653)	(121,056)	23.3%	10.0%
Depreciation and amortisation	(37,488)	(35,614)	(29,286)	28.0%	5.3%
Administrative and other operating expenses	(93,463)	(85,310)	(67,745)	38.0%	9.6%
Operating expenses	(280,208)	(256,577)	(218,087)	28.5%	9.2%
Profit before tax	418,171	390,289	350,973	19.1%	7.1%
Income tax expense	(70,908)	(60,991)	(50,485)	40.5%	16.3%
Profit for the period	347,263	329,298	300,488	15.6%	5.5%
Profit attributable to:
- Shareholders of TBCG	339,893	324,595	299,022	13.7%	4.7%
- Non-controlling interest	7,370	4,703	1,466	NMF	56.7%
Other comprehensive income:
Other comprehensive income/(expense) for the period	48,410	(41,840)	(11,562)	NMF	NMF
Total comprehensive income for the period	395,673	287,458	288,926	36.9%	37.6%

Consolidated balance sheet

In thousands of GEL	Sep'24	Jun'24	Change QoQ
ASSETS
Cash and cash equivalents	5,108,157	3,688,366	38.5%
Due from other banks	23,347	20,742	12.6%
Mandatory cash balances with the NBG and the CBU	1,991,538	1,511,508	31.8%
Loans and advances to customers	24,393,183	23,757,851	2.7%
Investment securities measured at fair value through other comprehensive income	3,443,089	4,110,036	-16.2%
Bonds carried at amortised cost	154,036	103,070	49.4%
Finance lease receivables	521,782	468,395	11.4%
Investment properties	14,235	14,506	-1.9%
Investments in associates	4,297	3,871	11.0%
Current income tax prepayment	84,140	1,704	NMF
Deferred income tax asset	920	990	-7.1%
Other financial assets	296,002	306,561	-3.4%
Other assets	1,322,559	1,203,426	9.9%
Intangible assets	555,078	529,425	4.8%
Goodwill	59,963	59,964	0.0%
TOTAL ASSETS	37,972,326	35,780,415	6.1%
LIABILITIES
Due to credit institutions	5,922,371	4,846,332	22.2%
Customer accounts	22,548,107	21,464,578	5.0%
Other financial liabilities	577,196	683,382	-15.5%
Current income tax liability	27,727	4,350	NMF
Deferred income tax liability	57,934	52,882	9.6%
Debt Securities in issue	1,621,985	1,849,800	-12.3%
Other liabilities	237,480	226,562	4.8%
Subordinated debt	1,133,742	1,152,841	-1.7%
Redemption liability	418,012	419,928	-0.5%
TOTAL LIABILITIES	32,544,554	30,700,655	6.0%
EQUITY
Share capital	1,713	1,689	1.4%
Shares held by trust	(66,982)	(66,982)	0.0%
Share premium	345,913	292,734	18.2%
Retained earnings	4,995,298	4,796,051	4.2%
Other reserves	(42,996)	(101,634)	-57.7%
Equity attributable to owners of the parent	5,232,946	4,921,858	6.3%
Non-controlling interest	194,826	157,902	23.4%
TOTAL EQUITY	5,427,772	5,079,760	6.9%
TOTAL LIABILITIES AND EQUITY	37,972,326	35,780,415	6.1%

Ratios

Ratios (based on monthly averages, where applicable)	3Q'24	2Q'24	3Q'23
Profitability ratios:
ROE¹	26.6%	27.1%	27.6%
ROA²	3.7%	3.8%	4.1%
Cost to income³	37.2%	37.8%	35.4%
NIM⁴	6.4%	6.4%	6.9%
Loan yields⁵	12.9%	12.6%	12.6%
Deposit rates⁶	5.4%	5.2%	4.9%
Cost of funding7	6.1%	6.0%	5.4%
Asset quality & portfolio concentration:
Cost of risk⁹	0.8%	0.5%	0.9%
PAR 90 to gross loans⁹	1.4%	1.4%	1.2%
NPLs to gross loans¹⁰	2.1%	2.0%	2.0%
NPL provision coverage¹¹	72.4%	75.5%	87.6%
Total NPL coverage¹²	140.9%	141.9%	151.6%
Credit loss level to gross loans¹³	1.6%	1.5%	1.8%
Related party loans to gross loans¹⁴	0.1%	0.1%	0.1%
Top 10 borrowers to total portfolio¹⁵	5.9%	5.9%	6.0%
Top 20 borrowers to total portfolio¹⁶	8.7%	8.7%	8.9%
Capital & liquidity positions:
Net loans to deposits plus IFI funding¹⁷	96.9%	100.0%	96.9%
Leverage (x)¹⁸	7.0x	7.0x	6.7x
Georgia
Net stable funding ratio¹⁹	123.1%	118.2%	124.1%
Liquidity coverage ratio²⁰	121.1%	118.1%	114.1%
CET 1 CAR²¹	16.6%	16.8%	17.5%
Tier 1 CAR²²	20.4%	22.3%	19.9%
Total 1 CAR²³	23.9%	25.9%	22.3%
Uzbekistan
CET 1 CAR²⁴	16.4%	12.6%	14.7%
Tier 1 CAR²⁵	16.4%	12.6%	14.7%
Total 1 CAR²⁶	19.6%	16.4%	15.3%

Funding and liquidity in Georgia

	Sep'24	Jun'24	Change QoQ
Minimum net stable funding ratio, as defined by the NBG	100.0%	100.0%	0.0 pp
Net stable funding ratio as defined by the NBG	123.1%	118.2%	4.9 pp

Minimum total liquidity coverage ratio, as defined by the NBG	100.0%	100.0%	0.0 pp
Minimum LCR in GEL, as defined by the NBG	75%	75.0%	0.0 pp
Minimum LCR in FC, as defined by the NBG	100.0%	100.0%	0.0 pp

Total liquidity coverage ratio, as defined by the NBG	121.1%	118.1%	3.0 pp
LCR in GEL, as defined by the NBG	85.9%	100.0%	-14.1 pp
LCR in FC, as defined by the NBG	141.3%	129.5%	11.8 pp

Regulatory capital

In Georgia, the slight decline in CET1 ratio in 3Q 2024 was related to the pending dividend payment and increased loan portfolio, largely offset by strong income generation. Over the same period, the decrease in Tier1 and Total capital adequacy ratios was mainly driven by the repayment of USD 125 million AT1 bonds in July.

Georgia

In thousands of GEL	Sep'24	Jun'24	Change QoQ
CET 1 capital	4,540,404	4,344,472	4.5%
Tier 1 capital	5,564,042	5,749,522	-3.2%
Total capital	6,533,759	6,671,739	-2.1%
Total risk-weighted assets	27,314,351	25,791,645	5.9%

Minimum CET 1 ratio	14.5%	14.6%	-0.1 pp
CET 1 capital adequacy ratio	16.6%	16.8%	-0.2 pp

Minimum Tier 1 ratio	16.8%	16.9%	-0.1 pp
Tier 1 capital adequacy ratio	20.4%	22.3%	-1.9 pp

Minimum total capital adequacy ratio	19.8%	20.0%	-0.2 pp
Total capital adequacy ratio	23.9%	25.9%	-2.0 pp

Uzbekistan

The QoQ increase in TBC UZ's capital adequacy ratios is driven by capital injection in July 2024 (in amount of USD 26.5 million) which makes a total of USD 38.2 million YTD.

	Sep'24	Jun'24	Change QoQ
Minimum CET 1 ratio	8.0%	8.0%	0.0 pp
CET 1 capital adequacy ratio	16.4%	12.6%	3.8 pp

Minimum Tier 1 ratio	10.0%	10.0%	0.0 pp
Tier 1 capital adequacy ratio	16.4%	12.6%	3.8 pp

Minimum total capital adequacy ratio	13.0%	13.0%	0.0 pp
Total capital adequacy ratio	19.6%	16.4%	3.2 pp

Loan portfolio

As of 30 September 2024, the gross loan portfolio reached GEL 24,778.6 million, up by 2.7% QoQ, or up by 3.5% QoQ on a constant currency basis.

In 3Q 2024, our Georgian financial services loan portfolio increased by 2.3% on a QoQ basis and reached GEL 23,501.9 million, with 2.9% QoQ growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 11.9% QoQ or 16.7% on a constant currency basis.

In thousands of GEL Gross loans and advances to customers	Sep'24	Jun'24	Change QoQ
Georgian financial services (Georgia FS)*	23,501,949	22,983,036	2.3%
Retail Georgia	8,391,309	8,137,555	3.1%
CIB Georgia	9,243,424	9,082,113	1.8%
MSME Georgia	5,882,230	5,778,382	1.8%
Uzbekistan	1,256,150	1,122,400	11.9%
Total gross loans and advances to customers**	24,778,623	24,128,807	2.7%

* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan portfolio

	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ
Loan yields	12.9%	12.6%	12.6%	0.3 pp	0.3 pp
GEL	13.8%	13.7%	14.8%	-1.0 pp	0.1 pp
FC	8.7%	8.5%	8.6%	0.1 pp	0.2 pp
UZS	44.7%	44.2%	41.9%	2.8 pp	0.5 pp
Georgia FS	11.3%	11.1%	11.7%	-0.4 pp	0.2 pp
GEL	13.8%	13.7%	14.8%	-1.0 pp	0.1 pp
FC	8.6%	8.5%	8.5%	0.1 pp	0.1 pp
Uzbekistan	44.7%	44.2%	41.9%	2.8 pp	0.5 pp
UZS	44.7%	44.2%	41.9%	2.8 pp	0.5 pp
Total loan yields*	12.9%	12.6%	12.6%	0.3 pp	0.3 pp

* Total loans yields include Azerbaijan

Loan portfolio quality

PAR 90	Sep'24	Jun'24	Change QoQ
Georgia FS*	1.3%	1.3%	0.0 pp
Retail Georgia	0.8%	0.7%	0.1 pp
CIB Georgia	1.0%	0.9%	0.1 pp
MSME Georgia	2.7%	2.9%	-0.2 pp
Uzbekistan	2.8%	2.5%	0.3 pp
Total PAR 90**	1.4%	1.4%	0.0 pp

* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan

In thousands of GEL Non-performing Loans (NPL)	Sep'24	Jun'24	Change QoQ
Georgia FS*	496,166	462,500	7.3%
Retail Georgia	111,411	112,924	-1.3%
CIB Georgia	161,856	137,804	17.5%
MSME Georgia	222,899	211,772	5.3%
Uzbekistan	35,163	27,699	26.9%
Total non-performing loans**	532,353	491,068	8.4%

* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs

NPL to gross loans	Sep'24	Jun'24	Change QoQ
Georgia FS*	2.1%	2.0%	0.1 pp
Retail Georgia	1.3%	1.4%	-0.1 pp
CIB Georgia	1.8%	1.5%	0.3 pp
MSME Georgia	3.8%	3.7%	0.1 pp
Uzbekistan	2.8%	2.5%	0.3 pp
Total NPL to gross loans**	2.1%	2.0%	0.1 pp

* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs

	Sep'24		Jun'24
NPL Coverage	Provision Coverage	Total Coverage***	Provision Coverage	Total Coverage***
Georgia FS*	64.4%	137.8%	68.2%	138.4%
Retail Georgia	144.3%	206.0%	133.1%	195.6%
CIB Georgia	32.2%	105.8%	44.1%	108.8%
MSME Georgia	47.9%	127.0%	49.2%	127.2%
Uzbekistan	180.4%	180.4%	192.8%	192.8%
Total NPL coverage**	72.4%	140.9%	75.5%	141.9%

* Georgian FS includes sub-segment eliminations
** Total NPL coverage include Azerbaijan loans coverage
*** Total NPL coverage ratio includes provision and collateral coverage

The QoQ increase in CoR was mainly driven by the GFS low base in 2Q 2024 related to the one-off recovery in the amount of GEL 9.3 million.

Cost of risk (CoR)	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ
Georgia FS*	0.5%	0.3%	0.7%	-0.2 pp	0.2 pp
Retail Georgia	1.1%	0.4%	1.1%	0.0 pp	0.7 pp
CIB Georgia	0.1%	-0.1%	0.0%	0.1 pp	0.2 pp
MSME Georgia	0.3%	0.5%	0.9%	-0.6 pp	-0.2 pp
Uzbekistan	5.7%	5.5%	7.3%	-1.6 pp	0.2 pp
Total cost of risk**	0.8%	0.5%	0.9%	-0.1 pp	0.3 pp

* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR

Deposit portfolio

As of 30 September 2024, deposit portfolio reached GEL 22,548.1 million, up by 5.0% QoQ, or up by 6.2% QoQ on a constant currency basis.

In 3Q 2024, our Georgia FS deposit portfolio increased by 4.9% on a QoQ basis and reached GEL 21,892.7 million, with 6.0% QoQ growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 18.6% QoQ or 23.6% on a constant currency basis.

In thousands of GEL Customer accounts	Sep'24	Jun'24	Change QoQ
Georgia FS*	21,892,684	20,867,540	4.9%
Retail Georgia	8,102,782	7,830,406	3.5%
CIB Georgia	11,211,555	10,417,043	7.6%
MSME Georgia	1,998,253	1,960,795	1.9%
MOF	711,745	765,096	-7.0%
Uzbekistan	855,689	721,632	18.6%
Total customer accounts**	22,548,107	21,464,578	5.0%

* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations

	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ
Deposit rates	5.4%	5.2%	4.9%	0.5 pp	0.2 pp
GEL	7.7%	7.6%	8.2%	-0.5 pp	0.1 pp
FC	1.4%	1.3%	0.9%	0.5 pp	0.1 pp
UZS	24.7%	24.8%	24.4%	0.3 pp	-0.1 pp
Georgian financial services	4.7%	4.6%	4.4%	0.3 pp	0.1 pp
GEL	7.7%	7.6%	8.2%	-0.5 pp	0.1 pp
FC	1.4%	1.3%	0.9%	0.5 pp	0.1 pp
Uzbek business	24.6%	24.8%	24.4%	0.2 pp	-0.2 pp
UZS	24.7%	24.8%	24.4%	0.3 pp	-0.1 pp
FC	4.7%	2.3%	4.1%	0.6 pp	2.4 pp
Total deposit rates*	5.4%	5.2%	4.9%	0.5 pp	0.2 pp

* Total deposits rates include MOF deposits

Unaudited consolidated financial results overview for 9M 2024

This statement provides a summary of the business and financial trends for 9M 2024 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.

Please note that there might be slight differences in previous periods' figures due to rounding.

Consolidated income statement and other comprehensive income

In thousands of GEL	9M'24	9M'23	Change YoY
Interest income	2,677,097	2,137,628	25.2%
Interest expense	(1,283,581)	(943,565)	36.0%
Net interest income	1,393,516	1,194,063	16.7%
Fee and commission income	598,958	484,009	23.7%
Fee and commission expense	(226,460)	(181,783)	24.6%
Net fee and commission income	372,498	302,226	23.3%
Net insurance income	28,292	22,200	27.4%
Net gains from currency derivatives, foreign currency operations and translation	248,442	188,696	31.7%
Other operating income	6,926	26,126	-73.5%
Share of profit of associates	391	913	-57.2%
Other operating non-interest income	284,051	237,935	19.4%
Credit loss allowance for loans to customers	(118,788)	(122,019)	-2.6%
Credit loss allowance for other financial items and net impairment for non-financial assets	(13,183)	(11,242)	17.3%
Operating income after expected credit and non-financial asset impairment losses	1,918,094	1,600,963	19.8%
Staff costs	(411,473)	(333,206)	23.5%
Depreciation and amortisation	(107,210)	(87,234)	22.9%
Administrative and other operating expenses	(247,773)	(183,987)	34.7%
Operating expenses	(766,456)	(604,427)	26.8%
Profit before tax	1,151,638	996,536	15.6%
Income tax expense	(178,606)	(148,002)	20.7%
Profit for the period	973,032	848,534	14.7%
Profit attributable to:
- Shareholders of TBCG	957,293	836,481	14.4%
- Non-controlling interest	15,739	12,053	30.6%
Other comprehensive income:
Other comprehensive income/(expense) for the period	14,246	(1,514)	NMF
Total comprehensive income for the period	987,278	847,020	16.6%

Consolidated balance sheet

In thousands of GEL	Sep'24	Sep'23	Change YoY
ASSETS
Cash and cash equivalents	5,108,157	2,648,469	92.9%
Due from other banks	23,347	38,954	-40.1%
Mandatory cash balances with NBG and the CBU	1,991,538	1,904,010	4.6%
Loans and advances to customers	24,393,183	20,003,021	21.9%
Investment securities measured at fair value through other comprehensive income	3,443,089	3,071,046	12.1%
Bonds carried at amortised cost	154,036	65,289	NMF
Finance lease receivables	521,782	364,077	43.3%
Investment properties	14,235	20,629	-31.0%
Investments in associates	4,297	3,940	9.1%
Current income tax prepayment	84,140	16,062	NMF
Deferred income tax asset	920	10,721	-91.4%
Other financial assets	296,002	259,771	13.9%
Other assets	1,322,559	1,047,451	26.3%
Intangible assets	555,078	442,989	25.3%
Goodwill	59,963	59,964	0.0%
TOTAL ASSETS	37,972,326	29,956,393	26.8%
LIABILITIES
Due to credit institutions	5,922,371	3,330,925	77.8%
Customer accounts	22,548,107	18,722,415	20.4%
Other financial liabilities	577,196	515,000	12.1%
Current income tax liability	27,727	17,958	54.4%
Deferred income tax liability	57,934	109,854	-47.3%
Debt Securities in issue	1,621,985	1,432,393	13.2%
Other liabilities	237,480	202,461	17.3%
Subordinated debt	1,133,742	788,116	43.9%
Redemption liability	418,012	363,871	14.9%
TOTAL LIABILITIES	32,544,554	25,482,993	27.7%
EQUITY
Share capital	1,713	1,682	1.8%
Shares held by trust	(66,982)	(75,470)	-11.2%
Share premium	345,913	272,930	26.7%
Retained earnings	4,995,298	4,145,795	20.5%
Other reserves	(42,996)	19,761	NMF
Equity attributable to owners of the parent	5,232,946	4,364,698	19.9%
Non-controlling interest	194,826	108,702	79.2%
TOTAL EQUITY	5,427,772	4,473,400	21.3%
TOTAL LIABILITIES AND EQUITY	37,972,326	29,956,393	26.8%

Ratios

Ratios (based on monthly averages, where applicable)	9M'24	9M'23
Profitability ratios:
ROE¹	26.2%	27.0%
ROA²	3.7%	4.0%
Cost to income³	37.4%	34.9%
NIM⁴	6.4%	6.7%
Loan yields⁵	12.8%	12.6%
Deposit rates⁶	5.3%	4.9%
Cost of funding⁷	6.0%	5.5%
Asset quality & portfolio concentration:
Cost of risk⁹	0.7%	0.9%
PAR 90 to gross loans⁹	1.4%	1.2%
NPLs to gross loans¹⁰	2.1%	2.0%
NPL provision coverage¹¹	72.4%	87.6%
Total NPL coverage¹²	140.9%	151.6%
Credit loss level to gross loans¹³	1.6%	1.8%
Related party loans to gross loans¹⁴	0.1%	0.1%
Top 10 borrowers to total portfolio¹⁵	5.9%	6.0%
Top 20 borrowers to total portfolio¹⁶	8.7%	8.9%
Capital & liquidity positions:
Net loans to deposits plus IFI funding¹⁷	96.9%	96.9%
Leverage (x)¹⁸	7.0x	6.7x
Georgia
Net stable funding ratio¹⁹	123.1%	124.1%
Liquidity coverage ratio²⁰	121.1%	114.1%
CET 1 CAR²¹	16.6%	17.5%
Tier 1 CAR²²	20.4%	19.9%
Total 1 CAR²³	23.9%	22.3%
Uzbekistan
CET 1 CAR²⁴	16.4%	14.7%
Tier 1 CAR²⁵	16.4%	14.7%
Total 1 CAR²⁶	19.6%	15.3%

Funding and liquidity in Georgia

	Sep'24	Sep'23	Change YoY
Minimum net stable funding ratio, as defined by the NBG	100.0%	100.0%	0.0 pp
Net stable funding ratio as defined by the NBG	123.1%	124.1%	-1.0 pp

Minimum total liquidity coverage ratio, as defined by the NBG	100.0%	100.0%	0.0 pp
Minimum LCR in GEL, as defined by the NBG	75%	75.0%	0.0 pp
Minimum LCR in FC, as defined by the NBG	100.0%	100.0%	0.0 pp

Total liquidity coverage ratio, as defined by the NBG	121.1%	114.1%	7.0 pp
LCR in GEL, as defined by the NBG	85.9%	105.7%	-19.8 pp
LCR in FC, as defined by the NBG	141.3%	121.0%	20.3 pp

Regulatory capital
The YoY increase in Tier 1 and total capital adequacy ratios was mainly due to the issuance of USD 300 million AT1 capital notes, which was partially offset by the repayment of USD 125 million AT1 notes.

Georgia

In thousands of GEL	Sep'24	Sep'23	Change YoY
CET 1 capital	4,540,404	3,966,901	14.5%
Tier 1 capital	5,564,042	4,502,561	23.6%
Total capital	6,533,759	5,058,696	29.2%
Total risk-weighted assets	27,314,351	22,668,335	20.5%

Minimum CET 1 ratio	14.5%	14.4%	0.1 pp
CET 1 capital adequacy ratio	16.6%	17.5%	-0.9 pp

Minimum Tier 1 ratio	16.8%	16.8%	0.0 pp
Tier 1 capital adequacy ratio	20.4%	19.9%	0.5 pp

Minimum total capital adequacy ratio	19.8%	19.9%	-0.1 pp
Total capital adequacy ratio	23.9%	22.3%	1.6 pp

Uzbekistan

The YoY increase of capital adequacy ratios was driven by capital injections and the new payment-to-income (PTI) based method for calculating RWAs, adopted by CBU starting from 1^st of July 2024.

	Sep'24	Sep'23	Change YoY
Minimum CET 1 ratio	8.0%	8.0%	0.0 pp
CET 1 capital adequacy ratio	16.4%	14.7%	1.7 pp

Minimum Tier 1 ratio	10.0%	10.0%	0.0 pp
Tier 1 capital adequacy ratio	16.4%	14.7%	1.7 pp

Minimum total capital adequacy ratio	13.0%	13.0%	0.0 pp
Total capital adequacy ratio	19.6%	15.3%	4.3 pp

Loan portfolio

As of 30 September 2024, the gross loan portfolio reached GEL 24,778.6 million, up by 21.7% YoY, or up by 19.8% YoY on a constant currency basis.

In 9M 2024, our Georgia FS loan portfolio increased by 19.2% on a YoY and reached GEL 23,501.9 million, with 17.1% YoY growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 98.8% or 103.9% on a constant currency basis.

In thousands of GEL Gross loans and advances to customers	Sep'24	Sep'23	Change YoY
Georgian financial services (Georgia FS)*	23,501,949	19,715,795	19.2%
Retail Georgia	8,391,309	7,131,727	17.7%
CIB Georgia	9,243,424	7,385,494	25.2%
MSME Georgia	5,882,230	5,203,680	13.0%
Uzbekistan	1,256,150	632,013	98.8%
Total gross loans and advances to customers**	24,778,623	20,365,135	21.7%

* Georgian FS includes sub-segment eliminations
** Total gross loans and advances to customers include Azerbaijan loan portfolio

	9M'24	9M'23	Change YoY
Loan yields	12.8%	12.6%	0.2 pp
GEL	13.9%	15.0%	-1.1 pp
FC	8.6%	8.4%	0.2 pp
UZS	44.2%	42.6%	1.6 pp
Georgia FS	11.3%	11.8%	-0.5 pp
GEL	13.9%	15.0%	-1.1 pp
FC	8.6%	8.4%	0.2 pp
Uzbekistan	44.2%	42.6%	1.6 pp
UZS	44.2%	42.6%	1.6 pp
Total loan yields*	12.8%	12.6%	0.2 pp

* Total loans yields include Azerbaijan

Loan portfolio quality

PAR 90	Sep'24	Sep'23	Change YoY
Georgia FS*	1.3%	1.2%	0.1 pp
Retail Georgia	0.8%	0.9%	-0.1 pp
CIB Georgia	1.0%	0.5%	0.5 pp
MSME Georgia	2.7%	2.5%	0.2 pp
Uzbekistan	2.8%	2.1%	0.7 pp
Total PAR 90**	1.4%	1.2%	0.2 pp

* Georgian FS includes sub-segment eliminations
** Total PAR 90 includes Azerbaijan

In thousands of GEL Non-performing Loans (NPL)	Sep'24	Sep'23	Change YoY
Georgia FS*	496,166	399,230	24.3%
Retail Georgia	111,411	129,162	-13.7%
CIB Georgia	161,856	94,940	70.5%
MSME Georgia	222,899	175,128	27.3%
Uzbekistan	35,163	13,584	158.9%
Total non-performing loans**	532,353	413,520	28.7%

* Georgian FS includes sub-segment eliminations
** Total non-performing loans include Azerbaijan NPLs

NPL to gross loans	Sep'24	Sep'23	Change YoY
Georgia FS*	2.1%	2.0%	0.1 pp
Retail Georgia	1.3%	1.8%	-0.5 pp
CIB Georgia	1.8%	1.3%	0.5 pp
MSME Georgia	3.8%	3.4%	0.4 pp
Uzbekistan	2.8%	2.1%	0.7 pp
Total NPL to gross loans**	2.1%	2.0%	0.1 pp

* Georgian FS includes sub-segment eliminations
** Total NPL to gross loans include Azerbaijan NPLs

	Sep'24		Sep'23
NPL Coverage	Provision Coverage	Total Coverage***	Provision Coverage	Total Coverage***
Georgia FS*	64.4%	137.8%	82.5%	148.6%
Retail Georgia	144.3%	206.0%	136.0%	189.2%
CIB Georgia	32.2%	105.8%	52.0%	111.4%
MSME Georgia	47.9%	127.0%	59.5%	138.8%
Uzbekistan	180.4%	180.4%	199.9%	199.9%
Total NPL coverage**	72.4%	140.9%	87.6%	151.6%

* Georgian FS includes sub-segment eliminations
** Total NPL coverage include Azerbaijan loans coverage
*** Total NPL coverage ratio includes provision and collateral coverage

Cost of risk (CoR)	9M'24	9M'23	Change YoY
Georgia FS*	0.5%	0.7%	-0.2 pp
Retail Georgia	0.9%	1.0%	-0.1 pp
CIB Georgia	0.1%	0.0%	0.1 pp
MSME Georgia	0.5%	1.3%	-0.8 pp
Uzbekistan	5.6%	6.6%	-1.0 pp
Total cost of risk**	0.7%	0.9%	-0.2 pp

* Georgian FS includes sub-segment eliminations
** Total cost of risk includes Azerbaijan CoR

Deposit portfolio

As of 30 September 2024, deposit portfolio reached GEL 22,548.1 million, up by 20.4% YoY, or up by 18.9% YoY on a constant currency basis.

In 9M 2024, our Georgia FS deposit portfolio increased by 19.6% on a YoY and reached GEL 21,892.7 million, with 17.9% YoY growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 66.0% YoY or 70.2% on a constant currency basis.

In thousands of GEL Customer accounts	Sep'24	Sep'23	Change YoY
Georgia FS*	21,892,684	18,300,484	19.6%
Retail Georgia	8,102,782	7,097,710	14.2%
CIB Georgia	11,211,555	8,973,867	24.9%
MSME Georgia	1,998,253	1,733,865	15.2%
MOF	711,745	611,017	16.5%
Uzbekistan	855,689	515,586	66.0%
Total customer accounts**	22,548,107	18,722,415	20.4%

* Georgian FS includes sub-segment eliminations
** Total customer accounts are adjusted for eliminations

	9M'24	9M'23	Change YoY
Deposit rates	5.3%	4.9%	0.4 pp
GEL	7.8%	8.4%	-0.6 pp
FC	1.3%	0.8%	0.5 pp
UZS	25.0%	24.9%	0.1 pp
Georgian financial services	4.7%	4.5%	0.2 pp
GEL	7.8%	8.5%	-0.7 pp
FC	1.3%	0.8%	0.5 pp
Uzbek business	24.9%	24.8%	0.1 pp
UZS	25.0%	24.9%	0.1 pp
FC	3.7%	4.4%	-0.7 pp
Total deposit rates*	5.3%	4.9%	0.4 pp

* Total deposits rates include MOF deposits

Additional information

1) Financial disclosures by business lines

Business line definitions

The operating segments are defined as follows:

· Georgian financial services (GFS) - include JSC TBC Bank with its Georgian subsidiaries and JSC TBC Insurance with its subsidiary. The Georgia financial service segment consists of three major business sub-segments, while the treasury, leasing and insurance businesses are combined into the corporate and other sub-segments:

o Corporate and investment banking (CIB) - a legal entity/group of affiliated entities with an annual revenue exceeding GEL 20 million or which has been granted facilities of more than GEL 7.5 million. Some other business customers may also be assigned to the CIB segment or transferred to the micro, small and medium enterprises segment on a discretionary basis. In addition, CIB includes Wealth Management private banking services to high-net-worth individuals with a threshold of USD 250,000 on assets under management (AUM), as well as on discretionary basis;

o Retail - non-business individual customers;

o Micro, small and medium enterprises (MSME) - business customers who are not included in the CIB sub-segment.

· Uzbekistan - TBC Bank Uzbekistan with respective subsidiaries and Payme (Inspired LLC).

· Other - includes non-material or non-financial subsidiaries of the group and intra-group eliminations.

Georgian financial services

Profit and loss statement

In thousands of GEL	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
Interest income	807,571	752,671	683,275	18.2%	7.3%	2,297,075	1,960,800	17.1%
Interest expense	(399,020)	(364,481)	(292,486)	36.4%	9.5%	(1,114,666)	(857,732)	30.0%
Net interest income	408,551	388,190	390,789	4.5%	5.2%	1,182,409	1,103,068	7.2%
Fee and commission income	176,655	164,483	144,172	22.5%	7.4%	489,630	410,393	19.3%
Fee and commission expense	(64,217)	(66,562)	(59,771)	7.4%	-3.5%	(198,028)	(164,591)	20.3%
Net fee and commission income	112,438	97,921	84,401	33.2%	14.8%	291,602	245,802	18.6%
Net insurance income	11,567	9,290	9,939	16.4%	24.5%	28,833	22,699	27.0%
Net gains from currency derivatives, foreign currency operations and translation	102,426	88,170	68,938	48.6%	16.2%	255,225	202,257	26.2%
Other operating income	3,098	1,917	4,045	-23.4%	61.6%	6,567	20,278	-67.6%
Share of profit of associates	286	146	371	-22.9%	95.9%	391	913	-57.2%
Other operating non-interest income	117,377	99,523	83,293	40.9%	17.9%	291,016	246,147	18.2%
Credit loss allowance for loans to customers	(30,275)	(14,103)	(32,173)	-5.9%	NMF	(81,203)	(99,425)	-18.3%
Credit loss allowance for other financial items and net impairment for non-financial assets	(2,039)	(2,792)	(3,269)	-37.6%	-27.0%	(5,421)	(9,145)	-40.7%
Operating income after expected credit and non-financial asset impairment losses	606,052	568,739	523,041	15.9%	6.6%	1,678,403	1,486,447	12.9%
Staff costs	(114,972)	(105,855)	(101,647)	13.1%	8.6%	(322,067)	(279,116)	15.4%
Depreciation and amortisation	(31,369)	(30,013)	(25,077)	25.1%	4.5%	(90,647)	(75,370)	20.3%
Administrative and other operating expenses	(57,145)	(51,998)	(49,090)	16.4%	9.9%	(153,907)	(135,502)	13.6%
Operating expenses	(203,486)	(187,866)	(175,814)	15.7%	8.3%	(566,621)	(489,988)	15.6%
Profit before tax	402,566	380,873	347,227	15.9%	5.7%	1,111,782	996,459	11.6%
Income tax expense	(64,776)	(57,166)	(49,175)	31.7%	13.3%	(165,646)	(145,133)	14.1%
Profit for the period	337,790	323,707	298,052	13.3%	4.4%	946,136	851,326	11.1%

Balance sheet highlights

In thousands of GEL	30-Sep-24	30-Jun-24	30-Sep-23	Change YoY	Change QoQ
Cash & NBG mandatory reserves	7,021,266	5,000,618	4,494,578	56.2%	40.4%
Due from other banks	23,315	20,708	38,923	-40.1%	12.6%
Loans and advances to customers	23,182,234	22,667,567	19,386,577	19.6%	2.3%
Investment securities measured at fair value through OCI	3,443,089	4,110,036	3,071,046	12.1%	-16.2%
Intangible assets and Goodwill	415,793	406,942	371,909	11.8%	2.2%
Other assets	2,012,795	1,877,077	1,665,400	20.9%	7.2%
TOTAL ASSETS	36,098,492	34,082,948	29,028,433	24.4%	5.9%
Due to credit institutions	5,733,053	4,675,711	3,278,155	74.9%	22.6%
Customer accounts	21,892,684	20,867,540	18,300,484	19.6%	4.9%
Subordinated debt and debt securities in issue	2,458,892	2,682,703	2,052,334	19.8%	-8.3%
Other liabilities	818,976	902,091	884,208	-7.4%	-9.2%
TOTAL LIABILITIES	30,903,605	29,128,045	24,515,181	26.1%	6.1%
Equity attributable to shareholders	5,194,653	4,954,687	4,513,055	15.1%	4.8%
Non-controlling interest	234	216	197	18.8%	8.3%
TOTAL EQUITY	5,194,887	4,954,903	4,513,252	15.1%	4.8%
TOTAL LIABILITIES AND EQUITY	36,098,492	34,082,948	29,028,433	24.4%	5.9%

Key ratios

Georgian financial services	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
Profitability ratios:
ROE¹	26.5%	26.9%	26.4%	0.1 pp	-0.4 pp	25.8%	25.9%	-0.1 pp
ROA²	3.8%	3.9%	4.2%	-0.4 pp	-0.1 pp	3.8%	4.1%	-0.3 pp
Cost to income³	31.9%	32.1%	31.5%	0.4 pp	-0.2 pp	32.1%	30.7%	1.4 pp
NIM⁴	5.6%	5.6%	6.5%	-0.9 pp	0.0 pp	5.7%	6.4%	-0.7 pp
Loan yields⁵	11.3%	11.1%	11.7%	-0.4 pp	0.2 pp	11.3%	11.8%	-0.5 pp
Deposit rates⁶	4.7%	4.6%	4.4%	0.3 pp	0.1 pp	4.7%	4.5%	0.2 pp
Cost of funding⁷	5.4%	5.4%	5.0%	0.4 pp	0.0 pp	5.4%	5.1%	0.3 pp
Asset quality & portfolio concentration:
Cost of risk⁸	0.5%	0.3%	0.7%	-0.2 pp	0.2 pp	0.5%	0.7%	-0.2 pp
PAR 90 to gross loans⁹	1.3%	1.3%	1.2%	0.1 pp	0.0 pp	1.3%	1.2%	0.1 pp
NPLs to gross loans¹⁰	2.1%	2.0%	2.0%	0.1 pp	0.1 pp	2.1%	2.0%	0.1 pp
NPL provision coverage¹¹	64.4%	68.2%	82.5%	-18.1 pp	-3.8 pp	64.4%	82.5%	-18.1 pp
Total NPL coverage¹²	137.8%	138.4%	148.6%	-10.8 pp	-0.6 pp	137.8%	148.6%	-10.8 pp

For the ratio definitions and exchange rates, please refer to appendix 3.

Uzbekistan business

Profit and loss statement

In thousands of GEL	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
Interest income	148,879	123,740	68,549	NMF	20.3%	373,943	171,804	NMF
Interest expense	(65,329)	(56,729)	(32,379)	NMF	15.2%	(169,086)	(82,745)	NMF
Net interest income	83,550	67,011	36,170	NMF	24.7%	204,857	89,059	NMF
Fee and commission income	38,740	34,861	24,632	57.3%	11.1%	101,674	70,473	44.3%
Fee and commission expense	(11,089)	(10,771)	(6,540)	69.6%	3.0%	(29,759)	(17,012)	74.9%
Net fee and commission income	27,651	24,090	18,092	52.8%	14.8%	71,915	53,461	34.5%
Net gains from currency derivatives, foreign currency operations and translation	169	(30)	56	NMF	NMF	(287)	139	NMF
Other operating income	3	10	36	-91.7%	-70.0%	14	68	-79.4%
Other operating non-interest income/(expense)	172	(20)	92	87.0%	NMF	(273)	207	NMF
Credit loss allowance for loans to customers	(16,857)	(14,050)	(10,694)	57.6%	20.0%	(42,660)	(23,576)	80.9%
Credit loss allowance for other financial items and net impairment for non-financial assets	(2,078)	(1,029)	(552)	NMF	NMF	(3,630)	(1,853)	95.9%
Operating income after expected credit and non-financial asset impairment losses	92,438	76,002	43,108	NMF	21.6%	230,209	117,298	96.3%
Staff costs	(19,510)	(15,028)	(10,047)	94.2%	29.8%	(47,512)	(28,347)	67.6%
Depreciation and amortisation	(3,350)	(3,153)	(2,255)	48.6%	6.2%	(9,262)	(6,485)	42.8%
Administrative and other operating expenses	(31,929)	(30,181)	(15,929)	NMF	5.8%	(86,745)	(40,754)	NMF
Operating expenses	(54,789)	(48,362)	(28,231)	94.1%	13.3%	(143,519)	(75,586)	89.9%
Profit before tax	37,649	27,640	14,877	NMF	36.2%	86,690	41,712	NMF
Income tax expense	(6,054)	(3,861)	(1,193)	NMF	56.8%	(12,879)	(2,816)	NMF
Profit for the period	31,595	23,779	13,684	NMF	32.9%	73,811	38,896	89.8%

Balance sheet highlights

In thousands of GEL	30-Sep-24	30-Jun-24	30-Sep-23	Change YoY	Change QoQ
Cash & CBU mandatory reserves	86,464	207,848	51,872	66.7%	-58.4%
Loans and advances to customers	1,192,707	1,068,992	604,856	97.2%	11.6%
Intangible assets and Goodwill	58,999	60,633	29,554	99.6%	-2.7%
Other assets	380,050	228,993	137,961	NMF	66.0%
TOTAL ASSETS	1,718,220	1,566,466	824,243	NMF	9.7%
Due to credit institutions	303,967	331,137	46,504	NMF	-8.2%
Customer accounts	855,689	721,632	515,586	66.0%	18.6%
Subordinated debt and debt securities in issue	-	46,869	-	NMF	NMF
Other liabilities	82,781	78,852	28,201	NMF	5.0%
TOTAL LIABILITIES	1,242,437	1,178,490	590,291	NMF	5.4%
Equity attributable to shareholders	475,783	387,976	233,952	NMF	22.6%
TOTQL EQUITY	475,783	387,976	233,952	NMF	22.6%
TOTAL LIABILITIES AND EQUITY	1,718,220	1,566,466	824,243	NMF	9.7%

Key ratios

Uzbekistan business	3Q'24	2Q'24	3Q'23	Change YoY	Change QoQ	9M'24	9M'23	Change YoY
Profitability ratios:
ROE¹	28.2%	27.8%	23.4%	4.8 pp	0.4 pp	26.6%	24.6%	2.0 pp
ROA²	7.8%	6.9%	6.8%	1.0 pp	0.9 pp	7.2%	7.5%	-0.3 pp
Cost to income³	49.2%	53.1%	51.9%	-2.7 pp	-3.9 pp	51.9%	53.0%	-1.1 pp
NIM⁴	25.0%	24.4%	20.9%	4.1 pp	0.6 pp	24.5%	20.4%	4.1 pp
Loan yields⁵	44.7%	44.2%	41.9%	2.8 pp	0.5 pp	44.2%	42.6%	1.6 pp
Deposit rates⁶	24.6%	24.8%	24.4%	0.2 pp	-0.2 pp	24.9%	24.8%	0.1 pp
Cost of funding⁷	23.5%	23.1%	24.0%	-0.5 pp	0.4 pp	23.8%	24.4%	-0.6 pp
Asset quality & portfolio concentration:
Cost of risk⁸	5.7%	5.5%	7.3%	-1.6 pp	0.2 pp	5.6%	6.6%	-1.0 pp
PAR 90 to gross loans⁹	2.8%	2.5%	2.1%	0.7 pp	0.3 pp	2.8%	2.1%	0.7 pp
NPLs to gross loans¹⁰	2.8%	2.5%	2.1%	0.7 pp	0.3 pp	2.8%	2.1%	0.7 pp
NPL provision coverage¹¹	180.4%	192.8%	199.9%	-19.5 pp	-12.4 pp	180.4%	199.9%	-19.5 pp
Total NPL coverage¹²	180.4%	192.8%	199.9%	-19.5 pp	-12.4 pp	180.4%	199.9%	-19.5 pp

For the ratio definitions and exchange rates, please refer to appendix 3.

2) Glossary

Terminology	Definition
BVPS	Book value per share
CBU	Central Bank of Uzbekistan
Consumer loans	Unsecured loans to individuals
Digital daily active users (Digital DAU)	The number of retail digital users, who logged into our digital channels at least once per day
Digital monthly active users (Digital MAU)	The number of retail digital users, who logged into our digital channels at least once a month
EPS	Earnings per share
Monthly active customers (MAC)	For Georgian business, an individual user who has at least one active product as of the reporting date or performed at least one transaction during the past month. For Uzbek business, an individual user who logged into the digital application at least once during the month
NBG	National Bank of Georgia

3) Ratio definitions and exchange rates

Ratio definitions

1. Return on average total equity (ROE) equals profit attributable to owners divided by the monthly average of total shareholders' equity attributable to the PLC's equity holders for the same period; annualised where applicable.

2. Return on average total assets (ROA) equals profit of the period divided by monthly average total assets for the same period; annualised where applicable.

3. Cost to income ratio equals total operating expenses for the period divided by the total revenue for the same period. (Revenue represents the sum of net interest income, net fee and commission income and other non-interest income).

4. Net interest margin (NIM) is net interest income divided by monthly average interest-earning assets; annualised where applicable. Interest-earning assets include investment securities (excluding CIB shares), net investment in finance lease, net loans, and amounts due from credit institutions.

5. Loan yields equal interest income on loans and advances to customers divided by monthly average gross loans and advances to customers; annualised where applicable.

6. Deposit rates equal interest expense on customer accounts divided by monthly average total customer deposits; annualised where applicable.

7. Cost of funding equals sum of the total interest expense and net interest gains on currency swaps (entered for funding management purposes), divided by monthly average interest-bearing liabilities; annualised where applicable.

8. Cost of risk equals credit loss allowance for loans to customers divided by monthly average gross loans and advances to customers; annualised where applicable.

9. PAR 90 to gross loans ratio equals loans for which principal or interest repayment is overdue for more than 90 days divided by the gross loan portfolio for the same period.

10. NPLs to gross loans equals loans with 90 days past due on principal or interest payments, and loans with a well-defined weakness, regardless of the existence of any past-due amount or of the number of days past due divided by the gross loan portfolio for the same period.

11. NPL provision coverage equals total credit loss allowance for loans to customers divided by the NPL loans.

12. Total NPL coverage equals total credit loss allowance plus the minimum of collateral amount of the respective NPL loan (after applying haircuts in the range of 0%-50% for cash, gold, real estate and PPE) and its gross loan exposure divided by the gross exposure of total NPL loans.

13. Credit loss level to gross loans equals credit loss allowance for loans to customers divided by the gross loan portfolio for the same period.

14. Related party loans to total loans equals related party loans divided by the gross loan portfolio.

15. Top 10 borrowers to total portfolio equals the total loan amount of the top 10 borrowers divided by the gross loan portfolio.

16. Top 20 borrowers to total portfolio equals the total loan amount of the top 20 borrowers divided by the gross loan portfolio.

17. Net loans to deposits plus IFI funding ratio equals net loans divided by total deposits plus borrowings received from international financial institutions.

18. Leverage equals total assets to total equity.

19. Net stable funding ratio equals the available amount of stable funding divided by the required amount of stable funding as defined by NBG in line with Basel III guidelines. Calculations are made for TBC Bank standalone.

20. Liquidity coverage ratio equals high-quality liquid assets divided by the total net cash outflow amount as defined by the NBG. Calculations are made for TBC Bank standalone.

21. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both calculated in accordance with requirements of the NBG Basel III standards. Calculations are made for TBC Bank standalone.

22. Tier 1 CAR equals tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG Basel III standards. Calculations are made for TBC Bank standalone.

23. Total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG Basel III standards. Calculations are made for TBC Bank standalone.

24. CET 1 CAR equals CET 1 capital divided by total risk weighted assets, both calculated in accordance with requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.

25. Tier 1 CAR equals tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.

26. Total CAR equals total capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBU in national accounting standards. Calculations are made for TBC UZ Bank standalone.

Exchange rates

To calculate the QoQ growth of the balance sheet items without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.8101 as of 30 June 2024. To calculate the YoY growth without the currency exchange rate effect, we used the USD/GEL exchange rate of 2.6783 as of 30 September 2023. As of 30 September 2024, the USD/GEL exchange rate equalled 2.7297. For P&L items growth calculations without the currency effect, we used the average USD/GEL exchange rate for the following periods: 2Q 2024 of 2.7396 and 3Q 2023 of 2.6215. As of 3Q 2024, the USD/GEL exchange rate equalled 2.7137, 9M 2024 of 2.7082, 9M 2023 of 2.6056.

[1] Note: For better presentation purposes, certain financial numbers are rounded to the nearest whole number.

[2] Based on data published by the CBU, as of 1 October 2024.

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