Page 9 - bne_newspaper_August_02_2019

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August 2, 2019 www.intellinews.com I Page 9
Georgia’s TBC Bank reports return on equity improved to 22.3% in H1
bne IntelliNews
Georgia’s TBC Bank Group reported said its first- half consolidated net profit increased 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%.
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