TBC Bank Group Q4 Earnings Call Highlights

TBC Bank Group (LON:TBCG) reported what absorption described arsenic a grounds 4th fourth to adjacent retired 2025, with full-year nett net exceeding GEL 1.4 billion, up 9% year-over-year, and instrumentality connected equity (ROE) of 24.2%. In the last quarter, the radical delivered astir GEL 390 cardinal successful nett net (GEL 387 cardinal cited by the CFO), up 16% year-over-year, with ROE reaching 24.9%.

Group CEO Vakhtang Butskhrikidze said the 4th was “excellent” for the halfway Georgian franchise, with nett net up 15% year-over-year and ROE of 25.7%, supported by “robust indebtedness maturation and nett involvement borderline and debased outgo of hazard and beardown outgo controls.” Results successful Uzbekistan were “more mixed,” helium said, arsenic regulatory changes led to a flimsy contraction successful lending during the quarter, weighing connected gross and earnings.

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Reflecting what the institution called a coagulated superior position, the committee declared a last dividend of GEL 3.87 per share. That brings the full dividend for 2025 to GEL 8.87 per share, a 10% summation year-over-year, according to management.

Group CFO Giorgi Megrelishvili added that the full-year dividend implies a payout ratio of 35%. He besides noted the institution completed a GEL 75 cardinal buyback, and said that, unneurotic with the dividend, the radical returned 40% of superior backmost to shareholders.

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Megrelishvili said fourth-quarter top-line gross roseate 15% year-over-year, driven chiefly by a 23% summation successful nett involvement income. Non-interest income was level successful the quarter, which helium attributed chiefly to unusually precocious foreign-exchange revenues successful the prior-year quarter. For the afloat year, helium said apical enactment grew 20% year-over-year, supported by some nett involvement income and interest and committee income.

Net involvement borderline (NIM) remained astatine 7% successful the 4th quarter, “broadly stable” versus the erstwhile quarter, according to the CFO. He said Georgian NIM stood astatine 6% and “held its ground,” portion full-year radical NIM accrued by 30 ground points, chiefly owed to a higher stock of TBC Uzbekistan successful the portfolio.

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On costs, the CFO pointed to what helium described arsenic contained operating disbursal growth. He said fourth-quarter operating expenses accrued 10% year-over-year and roseate 18% for the afloat year, translating into a little cost-to-income ratio. The full-year cost-to-income ratio finished astatine 37.5%, down 40 ground points.