TBC Bank shares climbed 3.7% to 1,604p in late morning trading on Friday after the Georgia-focused company announced a 10% climb in the national economy, boosting business.
The firm reported a 235 million GEL profit in Q2, representing a 6% fall year-on-year linked to a high base in 2021 due to provision recoveries and gains from the disposal of an investment property.
TBC Bank confirmed an operating profit rise of 22% to 464 million GEL compared to 380 million GEL and a pre-tax profit slide of 9.7% to 262 million GEL against 290 million GEL.
TBC Bank noted an overall profit for Q2 2022 drop of 6.3% to 234 million GEL from 250 million GEL.
The bank reported a ROE of 24.1% for Q2, with a cost to income ratio remaining stable at 35.3% year-on-year.
The company added its outlook included an ROE of above 20%, a cost to income ration below 35% and an annual loan growth of 10% to 15% in the medium-term.
“Although the challenging geopolitical environment continues to be a matter of concern, the Georgian economy has once again demonstrated its resilience,” said TBC Bank in a statement.
“While the tourism recovery has slowed following the Russian invasion in Ukraine, the negative impact was balance by higher migration to the country.”
“Moreover, despite a surge in oil prices, Georgia’s terms of trade remain stable and remittance inflows are high.”
TBC Bank recommended an interim dividend of 2.5 GEL per share, which is scheduled to be supplemented by a 75 million GEL share buyback programme.
