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TBC Bank Group (LON: TBCG), the regional bank, saw its shares rise 7.3% in early trading today, to 5,119.54p at 8.29am London time. The move came as the bank reported record third-quarter earnings. The stock has traded between 4,636p and 5,127.5p so far, and the gain follows a rise of more than 5% on Wednesday.
The shares sit 5.5% below their 52-week high and 47.4% above their 52-week low, and are up 32.2% since the start of the year. Turnover is light at 0.31 times the 20-day average, with the session still young.
How unusual this is
Today’s gain is the second-largest daily rise in the past 126 sessions, about six months.
The shares also rose by more than 5% on Wednesday, so today’s gain is the second move of that size in three sessions. Today’s range of 4,636p to 5,127.5p puts the 5,119.54p quote at 8.29am London time about 8p below the session high.
What the bank reported
In its third-quarter and nine-month results statement, TBC said net profit for the quarter was a record GEL 404 million, up 10% year on year. Return on equity (ROE) was 23.2%, against 24.4% a year earlier.
Total operating income rose 10% to GEL 961 million, net interest income rose 13%, and net interest margin was 7.4%, up 0.1 percentage points on the quarter. Gross loans grew 16% at constant currency to GEL 32.5 billion, and customer deposits, excluding Ministry of Finance deposits, rose 14% at constant currency to GEL 27.6 billion.
Non-performing loans were flat on the quarter at 3.3% of gross loans, against 2.7% a year earlier, while cost of risk fell 0.3 points to 1.3%. Georgia drove the result, with net profit up 17% to GEL 406 million. Uzbekistan was weaker: profit was GEL 16 million, down 61% year on year, with non-performing loans at 11.8% of loans, up 1.2 points on the quarter.
The bank declared a quarterly dividend of GEL 1.75 per share and a new GEL 50 million share buyback and cancellation programme. Chief executive Vakhtang Butskhrikidze said in the statement: “the Group delivered a strong third quarter, with record earnings of GEL 404 million”. The bank said it is well positioned to deliver its 2026-28 targets, including loan growth of 15% or more a year and ROE of 23% or more.