Page 38 - GEORptOct20

procedures.
The limit on the loan servicing ratio (payment-to-income, or PTI) will be cancelled. The PTI ratio will remain different for foreign currency loans, with the aim of protecting the borrower and fluctuations of the foreign exchange rate of the financial system from risks.
Mortgage maturity limits will increase: the maximum maturity for mortgages in the national currency, the lari, will increase from 15 to 20 years.
If an individual receives income from abroad, the loan-to-value (LTV) ratio (a financial term used by lenders to express the ratio of a loan to the value of an asset purchased) for buying an apartment will be expanded from 60% to 70%. Corporate governance requirements will be introduced for commercial banks and microfinance organisations.
8.1.5 ​Bank news
Profit at Georgia based TBC Bank GEL69.2mn in first half
Profit at Georgia-based TBC Bank amounted to Georgian lari (GEL) 69.2mn ($22.6mn) in the first half (1H 2019: GEL253.5mn) and GEL126.2mn in the second quarter (2Q 2019: GEL120.2mn).
Return on average assets (ROA) stood at 0.7% in the first half (1H 2019: 3.3%) and 2.6% in the second quarter (2Q 2019: 3.0%).
Other first-half profit and loss parameters were:
○ Return on average equity (ROE) stood at 5.2% (1H 2019: 22.8%)
○ Cost to income of TBC Bank Group PLC stood at 37.4% (1H 2019:
38.9%)
○ Standalone cost to income ratio of the Bank was 31.9% (1H 2019:
35.7%)
○ Cost of risk stood at 2.1% (1H 2019: 1.3%)
○ Net interest margin (NIM) stood at 4.7% (1H 2019: 6.0%)
Other second-quarter profit and loss parameters were:
o Return on average equity (ROE) stood at 19.5% (2Q 2019: 21.1%1)
o Cost to income of TBC Bank Group PLC stood at 38.5% (2Q 2019: 40.2%) o Standalone cost to income ratio of the Bank was 32.3%2 (2Q 2019: 35.2%) o Cost of risk stood at 0.0%3 (2Q 2019: 1.1%)
o Net interest margin (NIM) stood at 4.3% (2Q 2019: 5.8%)
Balance sheet highlights as of 30 June 2020 were given as:
o Total assets amounted to GEL 19,813.4 million, up by 15.0% YoY
o Gross loans and advances to customers stood at GEL 13,635.4 million, up by 22.4% YoY or at 18.1% on a constant currency basis
o Net loans to deposits + IFI6 funding stood at 105.3%, up by 13.9 pp YoY, and Regulatory Net Stable Funding Ratio (NSFR), effective from 30 September 2019, stood at 127.5%
o NPLs were 2.9%, down by 0.2 pp YoY
o NPLs coverage ratios stood at 134.7%, or 246.7% with collateral, on 30 June 2020 compared to 97.9% or 206.0% with collateral, as of 30 June 2019 o Total customer deposits amounted to GEL 10,420.3 million, up by 5.5% YoY or at 1.4% on constant currency basis
o The Bank’s Basel III CET 1, Tier 1 and Total Capital Adequacy Ratios per NBG methodology stood at 10.0% 12.7% and 17.2% respectively, while
38​ GEORGIA Country Report ​October 2020 ​ ​www.intellinews.com