Inspection Report relating to Past Matters
TBC Bank Group PLC ("TBC PLC") confirms that its subsidiary TBC Bank JSC ("TBC Bank") has been subject to an inspection by its regulator, the National Bank of Georgia (the "NBG"), relating to certain transactions which took place in 2007 and 2008.
The inspection alleges that these transactions between TBC Bank and certain entities (which, in NBG's opinion, were related to the Chairman and Deputy Chairman) were not in technical compliance with the relevant Georgian law relating to the regulation of conflicts of interest. The relevant transactions, which took place several years before the initial public offering in 2014, were already the subject of an inspection by the NBG in 2008, which did not result in any action being taken at the time.
NBG has issued a fine of about GEL 1 m and, at this stage, it is unclear whether NBG will seek to impose additional sanctions. TBC has already challenged this fine in the courts in Georgia and the court has issued an injunction suspending payment of the fine. It is noted that the Georgian Office of Public Prosecution has also launched an investigation into the same matter. TBC Bank refutes the allegations relating to these historic transactions and intends to vigorously defend its position.
It is not currently expected that these matters will result in any material consequences for the group.
A further announcement will be made in due course.
For further enquiries, please contact:
Director of International Media and Investor Relations Head of Investor Relations
Zoltan Szalai Anna Romelashvili
[email protected] [email protected]
About TBC Bank Group PLC ("TBC PLC")
TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG.
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 38.4% of loans and 40.3% of non-banking deposits as at 30 September 2018, according to data published by the National Bank of Georgia.
