Page 32 - GEORptAug19

project and the state,” Khazaradze said on July 24, after he was officially charged with money laundering.
The two bankers said that the money laundering charges were absurd and damaged prospects for attracting investment to the country.
Khazaradze represents TBC in the Anaklia Development Consortium (ADC). ADC faces problems in raising $600mn from international financial institutions for first-phase financing. It has accused the government of actions that have hindered the process. Bidzina Ivanishvili, the billionaire head of ruling party Georgian Dream and an ex-PM of Georgia , is often accused of wanting to take over the project .
“Ivanishvili does not want to see foreign investors. He does not want competition. It's very dangerous for the country. Only Bidzina Ivanishvili's friends come here,” Fadi Asli, chairman of the International Chamber of Commerce (ICC) in Georgia said to journalists.
Tbilisi-based TBC Bank dominates the banking industry in Georgia with main competitor Bank of Georgia. It has named senior independent director Nikoloz Enukidze as its new chairman.
8.1.1 Earnings
Earnings at Georgia’s TBC Bank up 37% y/y in Q1
Georgia’s biggest retail lender and Bank of Georgia’s main rival TBC Bank Group reported an increase in its first-half consolidated net profit by 26.8% y/y to GEL253mn ($93.8mn at the period’s average exchange rate). In USD, profit was up 15.6% y/y.
Despite recent board changes, the bank continues to operate in its usual manner capitalising on its leading market share, strong capital and liquidity positions and operational excellency for the benefit of shareholders, said newly appointed president of the bank Nikoloz Enukidze, who last week replaced Mamuka Khazaradze who stepped down to concentrate on fighting prosecutors’ money laundering accusations related to alleged fraud perpetrated in 2007-2008.
The bank’s results, particularly the balance sheet elements but also the profit and loss elements, were subject to a significant nominal weakening of the local currency: the USD strengthened by 17% y/y if calculated for the end of June and by 9.7% if calculated for the H1 average. In real terms, the weakening was smaller given inflation of around 4% y/y—but it remained a significant factor in judging profitability and dynamics.
The bank’s assets also increased, by 26.8% y/y to GEL17.28bn at the end of June. In US dollars, they rose by only 15.6% y/y to $6.02bn.
Reported return on equity (ROE) improved slightly to 22.3% for H1 from 21.2% in the same period last year, compared to the bank’s target of keeping the ratio above 20%.
FTSE-250-listed TBC, which serves retail, corporate and small and medium-sized enterprise customers across the country. After becoming Georgia’s biggest retail lender following its purchase of JSC Bank Republic a few years ago, TBC now has roughly 2.4mm customers and around 7,300 employees.
32 GEORGIA Country Report August 2019 www.intellinews.com