Annual Partners' Day 2020
On February 27, 2020 TBC Bank held its annual meeting with partners, which was attended by around 250 business and government representatives, led by the Georgian Prime Minister, Mr. Giorgi Gakharia.
TBC Bank CEO, Vakhtang Butskhrikidze, his deputies, George Tkhelidze and Nika Kurdiani, and TBC Chief Economist Otar Nadaraia presented an overview of the company's achievements and results in 2019 as well as the company's development strategy and future plans for 2020.
Giorgi Gakharia, Prime Minister of Georgia commented:
"TBC is a systemic bank. TBC, just like the entire banking system of Georgia, plays a very important role in the country's macroeconomic stability and in ensuring synergy and effective cooperation among the state, the regulator and the banking system. This is our goal. The government may expect more social responsibility from businesses, including from the banking business. We should be more interested in the development of not only the banking system, but also in the advancement of the entire financial sector. Everything has its own time; however, what is most important is that we have a good, balanced cooperation, and I believe the balance that we have reached recently, particularly between the state and the banking system, will serve as the foundation for the future success of the banking sector in 2020."
Vakhtang Butskhrikidze, CEO of TBC Bank commented:
"The advancement of any business contributes to the growth of the country's economy. We are very proud that the number of businesses we support each year is growing: this is evidenced by the financial results of 2019, which we achieved through the joint efforts of our team. In general, TBC's mission is to make people's lives easier. That is why the products and services that we create for businesses are tailored to their needs and requirements. The ambitious goals set for 2020 and the quality of customer service we offer give me confidence that TBC will achieve exceptional results this year."
George Tkhelidze, deputy CEO of TBC Bank commented:
"2019 was a very strong year for TBC in business segment growth. Corporate lending growth amounted to 46.7% YoY and was well diversified across the large and mid-corporate segments. Lending to most business sectors grew by high double digits and translated into several hundred successful new projects. Our Trade Finance business growth was 39% and we hold a 50% market share. Our market leading positioning has been recognized by Euromoney and Global Finance, as well as by our international financial partners - EBRD, ADB, Commerzbank. The Corporate DCM market grew by 105% to GEL 1.7bn, to which our Investment Banking subsidiary TBC Capital contributed with 64% of transactions originating in 2019."
During the meeting, TBC Bank presented 2019 financial results that showed that TBC is the leading bank in Georgia. In 2019, the Bank's loan portfolio grew by 22.1% and amounted to 39.5% of the banking sector's loan market, while TBC deposits made up 39.0% of the overall deposits market. The loan book growth was mainly driven by an increase in the corporate and micro, small and medium (MSME) business segments. Lending to businesses in the corporate sector increased by 46.7%, while lending to MSMEs increased by 18.1%.
The largest share of borrowing in the corporate sector comes from the energy, real estate, food industry and hotel sectors. The MSME sector is focused on agriculture, hotels and trade.
TBC is also a leader in the retail segment, serving 2.5 million customers. In 2019, the retail loan portfolio grew by 7.5%, largely driven by the growth in mortgage lending. Currently, TBC's market share is 40.0% in retail loans and 37.9% in retail deposits.
The financial resources attracted to the economy by TBC in 2019 amounted up to $500 million. This includes $425 million raised by the bank in the international financial markets through two successful bond offerings.
2019 was also a successful year for TBC in terms of international expansion. TBC Bank has obtained a preliminary license for banking in Uzbekistan, which is a significant step forward in conducting banking operations in the country. TBC plans to obtain the final license and start banking operations in the summer of 2020.
TBC has also actively been developing its payments business. Payme, a leading payment company in Uzbekistan, already serves 1.8 million customers. In 2019, Payme's revenue increased by 84% and reached GEL 8.6 million.
Another development is the planned introduction of TBC's Digital Bank SPACE in the international marketplace.
Over the past year, TBC Bank has won a number of awards from international financial publications. Global Finance named TBC the world's best bank in mobile banking. The Banker, Global Finance, Euromoney and Emeafinance also named TBC the best bank in Georgia.
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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 and is a constituent of FTSE 250 Index.
TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 39.5% of loans and 39.0% of non-banking deposits as at 31 December 2019, according to data published by the National Bank of Georgia.
