Tbc Bank Group Plc · LSE:TBCG
Tbc Bank — H1 2023 Earnings Presentation
75 slides from Tbc Bank's earnings presentation, 2023
Slide 1: Q2 and 1H 2023 Results Call Presentation
Q2 AND 1H 2023 RESULTS CALL PRESENTATION 2023 1
Slide 2: Q2 AND 1H 2023 RESULTS CALL PRESENTATION
Q2 AND 1H 2023 RESULTS CALL PRESENTATION 2
Slide 3: LSE premium listed company and FTSE250 constituent
LSE premium listed company and FTSE250 constituent 5% 25.7% GEL c.170 mln Share in Group ROE for Georgian Annualised GMV net profit financial services 3.5 mln 1.6 mln 4.2 mln MAU MAU # of transactions Q2 AND 1H 2023 RESULTS CALL PRESENTATION 3
Slide 4: Key highlights
High profitability Robust growth in Uzbek fintechs Strong digital backed by solid core Georgian delivering footprint across capital banking profitable growth the Group operations 28.1% +14% +26% GEL 527 mln 4.3 mln ROE YoY loan YoY deposit +2.9x YoY +43% YoY growth1 growth 1 Gross loan book Digital M
Slide 5: Net profit, ROE, gross loans and cost to income
Net profit (GEL mln) ROE +25% +2.4pp 28.1% 293.1 234.6 25.7% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Gross loans (GEL bln) Cost to income +11% / +16%1 -0.6pp 35.3% 34.7% 17.5 19.4 30-Jun-22 30-Jun-23 Q2 2022 Q2 2023 Source: IFRS Group Data (1) Growth rate at constant currency 5
Slide 6: Growth momentum still strong with real GDP at 7.4%
$ € £ Growth momentum Total FX inflows Central bank reserves Inflation down to 0.3% still strong with real remained well are at record high and in July. Expected rate GDP at 7.4% diversified and grew by public debt to GDP cuts in 2H 2023 will 30% decreased to 40% support credit growth Q2 AND 1H 2023
Slide 7: Real GDP growth and external inflows
Real GDP Growth Share of countries in Exports, Tourism, Remittances and FDI 10.5 10.1 Russia, 17% 7.7 7.4 EU*, 24% 7.2 5.0 Turkey, 7% % Last 12M Armenia, 7% 2019 2020 2021 2022 Q1 2023 Q2 2023 2023 Forecast Other, 23% USA, 6% Israel, 4% -6.8 TBC Capital estimates based on assumptions of share of mig
Slide 8: Inflation, monetary policy, reserves and public debt
Annual Inflation and monetary policy rate (%) NBG’s reserves, FX interventions (mln USD) and Public debt to GDP (% of GDP) 16 6000 70 14 60 5,067 4,902 12 5000 50 50 10.25 40 4,272 41 40 9.5 3,911 10 4000 30 3,506 8 3000 2,696 10 2,239 6 2000 1,779 1,808 -10 1,614 4 1,058 2 1000 565 -30 0.3 0.5 72 0
Slide 9: Business update
CONTENTS Business Q? and 1H 2023 update Financial Results | Appendices
Slide 10: Group retail monthly active users and digital users
1 Group retail monthly active users (mln) Group digital users (mln)1 35% 34% 37% 32% 33% +38% +40% / +43% 5.1 5.1 4.4 3.9 1.5 1.6 3.7 1.5 1.4 1.4 4.4 4.3 3.8 3.0 3.2 3.6 3.5 2.5 2.9 1.4 1.4 1.4 2.3 1.0 1.1 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 DAU MAU DAU/MAU Uzbekist
Slide 11: Retail, CIB and MSME market shares and growth
RETAIL CIB 1 38.3% 37.9% 39.5% 42.4% Loan market share1 Deposit market share1 Loan market share1 Deposit market share1 +11% +33% +14% +24% YoYloan growth2 YoYdeposit growth2 YoY loan growth2 YoYdeposit growth2 GEL 18.8 bln Gross loans +14% YoY2 MSME 1 77% +25% +22% 68% Of newly registered legal YoYl
Slide 12: Payments business net revenue
Net revenue from payments business (mln GEL) Payments business net revenue by transaction types +39% Card operations Bill payments GEL 71 mln P2P transfers 71 60 60 61 B2B transfers 51 Other Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 key operating highlights 0.9mln +18% YoY 31k +12% YoY 67% +0.1pp Y
Slide 13: TNET marketplace market shares
LIFESTYLE HOUSING 85% 51% E-COMMERCE AUTO 69% Market shares1 82% (1) Source: Similarweb market shares are calculated based on number of unique visitors as of 30 June 2023 Q2 AND 1H 2023 RESULTS CALL PRESENTATION 13
Slide 14: TNET GMV growth and breakdown
GMV1 growth (GEL mln) GMV breakdown 2025 target GMV GEL 500 mln 15% 16% 15% 15% 12% 2% +89% 2% Lifestyle 6% Housing GEL 53 mln 73% E-commerce Q2 2023 Ads, data & leads 53 16% Auto 28 29 32 30 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Gross profit/GMV Q2 key operating highlights 5K # loan disbursed 4.2
Slide 15: Uzbekistan – two high-growth fintechs
UZBEKISTAN – TWO HIGH-GROWTH FINTECHS Mobile-only bank powered by our digital banking Leading digital payments solution for individuals and small platform Space International businesses TBC UZ Retail mobile app Business web app CAR LOANS P2P SAVING PRODUCTS PAYMENTS QR PAYMENT ACCEPTANCE GENERAL PUR
Slide 16: Uzbekistan – Payme volumes up over 40% YoY
UZBEKISTAN – PAYME VOLUMES UP OVER 40% YOY Number of users (mln) Financials (GEL mln) 6.7 7.4 8.2 9.0 9.9 +45% / +43% +40% / +45% 17.6 16.8 16.5 12.0 12.0 3.1 12.8 2.9 11.6 2.5 2.0 2.1 7.5 10.3 7.1 0.7 0.7 0.9 0.9 1.0 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 MAU DAU
Slide 17: Uzbekistan – TBC UZ bank continues fast and profitable growth
UZBEKISTAN – TBC UZ BANK CONTINUES FAST AND PROFITABLE GROWTH Number of users (mln) Financials (GEL mln) +67% / +100% +4.2x 31.5 23.6 3.0 16.7 18.5 2.7 2.4 2.1 1.8 7.5 1.1 2.2 0.4 0.4 0.5 0.6 (1.1) 0.3 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 # of total registered u
Slide 18: Q2 and 1H 2023 Financial Results
Q2 and 1H 2023 Financial Results 18
Slide 19: Net profit and ROE
Net profit (mln GEL) ROE 25.4% 25.7% 25.1% 23.7% 27.8% +25% +2.4pp +20% +15% +0.8pp +2.9pp 548.0 28.1% 458.5 293.1 26.7% 255.0 234.6 25.9% 25.7% 25.2% 1H 2022 1H 2023 Q2 2022 Q1 2023 Q2 2023 1H 2022 1H 2023 Q2 2022 Q1 2023 Q2 2023 ROE for Georgian financial services • Group net profit was up 25% YoY
Slide 20: Total revenue and non-interest income
Total revenue (mln GEL) Non-interest income (mln GEL) +26% +17% +28% +10% +24% +13% 1,119.0 187.4 877.0 586.7 352.9 352.9 160.5 165.4 20.7 532.2 33.1 284.7 12.4 464.1 18.4 284.7 187.4 165.4 28.8 61.1 121.7 60.6 160.5 66.5 114.4 766.1 592.3 366.8 399.3 105.6 303.6 198.1 92.4 141.5 75.6 1H 2022 1H 202
Slide 21: NIM, cost of funds and yields
NIM Cost of fund, cost of deposit, loan and asset yields +1.0pp +0.9pp +0.4pp 12.6% 12.4% 12.8% 11.0% 11.2% 12.0% 11.8% 12.2% 10.3% 10.5% 6.8% 5.5% 5.4% 5.6% 4.8% 4.8% 6.6% 6.4% 4.9% 4.9% 4.9% 5.7% 5.8% 3.7% 3.7% 1H 2022 1H 2023 Q2 2022 Q1 2023 Q2 2023 1H 2022 1H 2023 Q2 2022 Q1 2023 Q2 2023 Total f
Slide 22: Operating expenses and cost to income
Total operating expenses (mln GEL) Cost to income 30.5% 30.3% 30.3% 30.4% 30.2% +24% -0.6pp +23% +11% -1.4pp +0.4pp 203.6 386.3 182.8 29.6 57.9 163.6 28.4 314.6 24.3 47.3 65.3 116.3 51.0 49.0 90.8 35.9% 34.5% 35.3% 34.3% 34.7% 212.1 103.4 108.7 90.3 176.5 1H 2022 1H 2023 Q2 2022 Q1 2023 Q2 2023 1H 2
Slide 23: NPLs and cost of risk
NPLs Cost of Risk 168% 100% 155% 93% 154% 89% 0.6% 1.1% 0.9% -0.2pp -0.1pp 1.1% 0.9% 0.9% 0.6% 0.6% 2.3% 2.2% 2.1% 30-Jun-22 31-Mar-23 30-Jun-23 1H 2022 1H 2023 Q2 2022 Q1 2023 Q2 2023 NPLs/Gross loans Total NPL coverage1 Provision coverage Cumulative CoR YTD • NPL ratio slightly improved both QoQ a
Slide 24: Loan and deposit portfolio breakdown
Gross loan portfolio breakdown (bln GEL) Deposit portfolio breakdown (bln GEL) 39.1 39.1 38.8 40.7 39.3 40.1 +9%/+14%1 +18%/+26%1 +5%/+4%1 +9%/+9%1 18.6 18.8 15.7 17.0 17.3 17.9 1.0 0.6 4.9 0.7 1.6 4.4 4.7 1.6 1.6 8.3 9.0 6.4 6.5 7.0 7.7 5.7 6.5 7.0 6.5 6.7 6.9 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-2
Slide 25: Capital adequacy ratios
Capital Adequacy Ratios as of 30 June 2023 CET 1 CAR 3.9pp 3.9pp 3.2pp +0.6pp 23.1% 20.7% 18.3% 17.7% 18.3% 17.2% 19.9% 16.8% 14.3% 14.4% 14.4% 14.3% 14.4% CET1 Tier1 Total 31-Mar-23 30-Jun-23 Min. requirements Above min. requirements by CET1 CAR CET1 proforma Min. requirements • As of 30 June 2023,
Slide 26: Uzbekistan P&L and balance sheet highlights
Financial highlights Uzbekistan P&L and balance sheet highlights1 Q2 2023 Q2 2023 TBC UZ Total GEL mln Operating income 22.1% 20.1% 31.5 16.8 48.3 ROE NIM Total provision charges (8.2) (0.1) (8.3) Operating expenses (19.7) (6.4) (26.1) 6.6% 2.2% Profit before tax 3.5 10.3 13.8 Cost of risk NPLs Inco
Slide 27: Favorable macro environment in both Georgia and Uzbekistan
Well-capitalized, Favorable macro Continued strong highly liquid and environment in both growth and high profitable Georgian Georgia and Uzbekistan profitability operations Uzbek fintech TNET posting high operations delivering GMV growth, driven by fast and profitable lifestyle growth Q2 AND 1H 2023
Slide 28: Targets versus actual performance 1H 2023
TBC Group Uzbekistan Target Actual performance 1H 2023 Target Actual performance 1H 2023 7 mln 4.3 mln1 5 mln + 3.5 mln Digital monthly active users (Digital MAU) 1 Digital monthly active users (Digital MAU) GEL 1.5 bln, 15%+ CAGR 20% YoY 80% + +2.9x YoY Net profit Loan CAGR 23% + 26.7% GEL 200+ mln
Slide 29: Appendices
CONTENTS Appendices Georgia and Uzbekistan macro Q? and 1H 2023 Financial Results Business update
Slide 30: Georgia overview, GDP composition and ratings
Overview 2023 Q1 GDP Composition Trade (14%) Real estate activities (12%) 2017 2022 Change 11% 14% Manufacturing (9%) Total population (mln) 3.7 3.7 -1% 4% Public administration and defence (8%) 4% Construction (6%) GDP, $ bln 16.2 24.6 51% 4% 12% Transportation and storage (6%) Education (6%) 5% GD
Slide 31: Georgia trade, FDI, tourism and remittance flows
Export and Import of Goods, FDI, Tourism and Remittance Exports, Tourism, Remittances and FDI Inflows, mln USD flows, $ mln and CA % of GDP 20000 0 5000 Export Tourism Remittances FDI 4500 15000 -2 IT Service Export Inflow 4000 -3.2 Inflow w/o Russia 10000 -4.0 -4 3500 -5.6 3000 5000 -5.8 -6 -6.8 25
Slide 32: Reserves, NBG interventions, fiscal and public debt
Gross international reserves and NBG interventions, mln USD Fiscal and Public debt/GDP, % 6,000 450 70 10 9.3 5,067 9 5,000 60 300 8 50 7 4,000 150 6.1 6 40 3,000 5 30 0 4 2,000 3.1 3 20 -150 2.1 2 1.9 1,000 10 1.3 1.1 1.0 1 0.8 0.7 0.5 0 -300 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 33: Macro forecasts
2021 2022 2023 2024 2025 GDP Growth, YoY, % 10.5 10.1 7.2 4.8 5.3 Inflation (EOP), YoY, % 13.9 9.8 0.5 3.5 3.0 Monetary Policy Rate (EOP), % 10.5 11.0 9.5 8.0 7.75 CA Balance, % of GDP -10.4 -4.0 -4.2 -4.8 -4.5 Budget Balance, % of GDP -6.3 -2.5 -2.8 -2.5 -2.3 Government Debt, % of GDP 49.4 38.5 37.
Slide 34: Credit to GDP, loan and deposit growth
Credit (at current exchange rate), % of GDP Loan and Deposit Growth (FX Adjusted, YoY) 35 35 29 30 30 26 25 25 24 19 20 20 14 15 15 17 10 10 5 5 0 0 Jun-20 Jun-22 Jun-23 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-20 Jun-21 Dec-21 Dec-22 Mar-22 Sep-16 Mar-20 Sep-14 Mar-21 Jun-14 Jun-15 Sep-15 Sep-
Slide 35: Top largest banks by loans in Georgia
Top 10 largest banks by loans in Georgia, as of 30 June 2023 (GEL mln) 38.8 37.2 5.7 4.6 3.9 2.4 2.5 1.6 1.3 0.7 18,388 17,612 2,676 2,178 1,870 1,181 1,129 750 636 338 TBC BOG Liberty Basis Credo Tera Procredit Cartu Halyk Pasha Domestic Domestic Domestic Foreign Foreign Foreign Foreign Foreign For
Slide 36: Uzbekistan overview and GDP composition
Overview 2023 1H GDP Composition Manufacturing (21%) 2017 2022 Change 2% 8% Agriculture, forestry and fishing (12%) Total population (mln) 32.1 35.3 10% Public administration and defense (10%) 2% 3% 21% Trade (7%) GDP, $ bln 62.1 80.4 30% 4% Real estate activities (7%) GDP per capita, $ (PPP) 6898 9
Slide 37: Inflation and currency
10 15 5 0 20 25 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Source: UZStat, CRU, Bruegel, TBC Capital Dec-15 May-16 Oct-16 Mar-17 MPR (EOP) Aug-17 Jan-18 Jun-18 Nov-18 Apr-19 INFLATION AND CURRENCY Sep-19 Feb-20 CPI Annual Inflation Jul-20 CPI Annual Inflation and Monetary Policy Rate, % Dec-20
Slide 38: Uzbekistan banking sector
UZBEKISTAN BANKING SECTOR Total Credit (at current exchange rate, trillion UZS) and Credit Total loans to GDP, % to GDP, % 500 50 83.0 44 62.4 400 40 39.2 35.6 27.0 29.2 25.7 26.2 300 30 7.6 6.1 200 20 4.7 4.9 5.2 5.3 4.4 4.5 100 10 2020 2021 2022 2023 Q2 2020 2021 2022 2023 Q2 0 0 2013 2014 2015 20
Slide 39: External inflows
EXTERNAL INFLOWS Export by countries, % of total export Export and Import of Goods, FDI, Tourism and Remittance flows, $ mln and CA % of GDP 100 50000 4 90 40000 2.6 2.4 80 2 1.8 1.8 30000 1.0 70 0.2 20000 0 60 -0.8 10000 50 -2 40 0 30 -10000 -4 -5.0 20 -20000 -5.6 -6 10 -30000 -6.8 -7.0 -7.3 0 2012
Slide 40: Central bank and fiscal buffers
CENTRAL BANK AND FISCAL BUFFERS International Reserves and Public Debt, % of GDP Sovereign Eurobond Spreads over 10Y US Treasury Yield (pp, as of 2-Aug) 7 70 3 2.2 2.0 2 6 60 1.9 1.1 1 5 50 0.7 0 -0.3 4 10Y US treasury, 4.08 40 -0.3 -1 3 Uzbekistan 2029, 30 2.787 -2 Georgia 2026, 2.62 2 20 -3 -3.3 1
Slide 41: Uzbekistan banks general information
1 As of 1 July 2023 Conventional/digital only Digital Conventional Conventional Conventional Conventional Digital Conventional Conventional Conventional Digital General information State/Private Private Private Private State Private Private State Private Private Private Foreign- Local/Foreign Foreig
Slide 42: Uzbekistan payment providers feature comparison
information State/Private Private Private State Private State General Local/Foreign Foreign Local Local Local Local # of Registered Customers (mln) 9.9 11.0* > 4.0* > 2.5* > 1.5* P2P transfers ✓ ✓ ✓ ✓ ✓ Services and bill payments ✓ ✓ ✓ ✓ ✓ Local merchant acquiring ✓ ✓ ✓ ✓ ✓ QR payments (offline & on
Slide 43: Appendices: Loan portfolio quality
CONTENTS Appendices Loan portfolio quality Q? and 1H 2023 Financial Results Business update
Slide 44: NPLs and cost of risk by segments
NPLs Cost of risk by segments 2.3% 2.3% 2.2% 2.2% 2.1% 0.9% 1.0% 0.6% 1.1% 0.6% Retail Georgia 2.4% 2.0% 0.5% 1.4% 0.5% 3.8% 3.5% CIB Georgia 3.4% 3.4% 3.3% -0.1% 0.0% 0.1% -0.1% 0.2% 2.9% 2.3% 2.2% 2.2% MSME Georgia 2.1% 2.1% 2.3% 0.9% 0.9% 2.1% 0.1% 0.5% 2.0% 2.0% 1.8% 1.4% 1.4% 1.4% 1.3% 1.3% Uzb
Slide 45: Loan book collateral and LTVs
76% of the loan book is secured by cash, gold and real estate LTVs by segments as of 30 June 2023 as of 30 June 2023 1% 3% 4% Cash Cover 20% Gold Inventory 54% 48% 50% 43% Real Estate Unsecured 72% MSME Georgia Retail Georgia CIB Georgia Total • LTV of mortgage loans stood at 38.4% as of 30 June 202
Slide 46: Gross loans and LLP ratio
Total: gross loans (mln) & LLP ratio1 Georgia: gross loans (mln) & LLP ratio1 LLP Ratio LLP Ratio LLP Ratio 2.0% 19,361 1.8% LLP Ratio LLP Ratio 2.3% 18,321 LLP Ratio 18,816 17,535 17,897 1.8% 395 40.3% 17,334 1.9% 445 390 41.8% 2.3% 40.7% 1,279 1,461 379 380 39.2% 1,610 7.1% 7.8% 437 39.9% 40.6% 7.
Slide 47: Share of foreign currency loans
of which exposures 30 June 2023 share of foreign with largely mitigated currency loans currency risk Retail 34% 28% Non-mortgage 10% 44% Mortgage 48% 26% CIB 66% 55% MSME 46% 10% Total 49% 37% • The Bank actively manages risks arising from foreign currency denominated loans through risk appetite fra
Slide 48: Appendices: Capital and liquidity
CONTENTS Appendices Capital and liquidity Q? and 1H 2023 Financial Results Business update
Slide 49: Capital requirements
Jun-23 Mar-24 Dec-24 Per IFRS Per IFRS Per IFRS CET 1 14.4% 15.4% 15.4% • From March 2023, Pillar 2 Requirements have been fully phased-in • Since March 2023, countercyclical capital buffer increased from 0% to 1%. The increased requirement will be in force from March 2024 Tier 1 16.8% 17.8% 17.8% T
Slide 50: Liability structure and liquidity ratios
Liability structure Liquidity ratios 1 as of 30 June 2023 93% 261% 91% 252% Total liabilities 3% GEL 24.5 bln 10% 6% 136% Customer Deposits 131% 130% 125% 4% Other Liabilities Debt Securities in Issue 100% 100% Due to Credit Institutions Subordinated Debt 77% 31-Mar-23 30-Jun-23 NSFR NBG LCR Net loa
Slide 51: Risk weighted assets and loan RWA density
Risk Weighted Assets Loan RWA density +1% +0.2pp 21,219 21,453 74% 74% 74% 20,767 Dec-22 Mar-23 Jun-23 Dec-22 Mar-23 Jun-23 Q2 AND 1H 2023 RESULTS CALL PRESENTATION 51
Slide 52: Appendices: ESG
CONTENTS Business Q2 and 1H 2023 Appendices update Financial Results ESG
Slide 53: ESG ratings: MSCI, ISS and FTSE4Good
As of April 2023, TBC Bank Group holds a rating of “AA” (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment MSCI Disclaimer statement The use by TBC Bank Group PLC of any MSCI ESG research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names
Slide 54: Main ESG priorities for 2023
Main priorities for 2023 Targets and current levels Sustainable loan portfolio 1 Focus on sustainable financing, services and products GEL 785 GEL 1 mln bln Target for 2023 2 Ensure employee diversity, equality and inclusion In Q2 2023 Measure the Group’s direct performance Share of women in middle
Slide 55: Appendices: Financial and operational performance details
CONTENTS Appendices Financial and operational performance details Q? and 1H 2023 Financial Results Business update
Slide 56: Total dividend and share buyback
Total dividend and share buyback (GEL mln) 25% 25% 25% 25% 30% 35% 348 50 200 298 138 109 89 75 No dividends were paid due to COVID-19 2016 2017 2018 2019 2020 2021 2022 1H 2023 Total dividend paid for the year Share buyback Dividend payout ratio Dividend payout ratio incl. buyback 2023 capital dist
Slide 57: ROE, ROA, net profit and loan book
Return on equity (ROE) Return on assets (ROA) 21.2% average ROE 3.2% average ROA 27.0% 3.9% 3.8% 24.9% 3.3% 3.4% 3.4% 22.4% 22.0% 22.9% 3.1% 3.2% 3.2% 20.1% 20.9% 18.4% 11.7% 1.6% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 Net profit (GEL mln) Loan book
Slide 58: Gross loan portfolio breakdown
Gross loan portfolio breakdown (GEL bln) Retail Georgia banking gross loans (GEL bln) 39.1 39.1 38.8 38.5 38.4 38.3 +9%/+14%1 +6%/+11%1 +5%/+4%1 +3%/+2%1 17.9 18.8 17.3 4.4 4.7 4.9 6.9 6.5 6.7 6.4 6.5 7.0 4.2 4.4 4.1 6.5 6.7 6.9 2.4 2.5 2.5 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 31-Mar-23 30-Jun-23
Slide 59: Deposit portfolio breakdown
Deposit portfolio breakdown (GEL bln) Retail Georgia banking deposits (GEL bln) 40.7 39.3 40.1 39.2 37.7 37.9 +18%/+26%1 +23%/+33%1 +9%/+9%1 +8%/+7%1 18.6 15.7 17.0 0.6 1.0 0.7 1.6 1.6 7.0 1.6 6.5 8.3 9.0 5.7 7.7 2.4 2.5 2.0 5.7 6.5 7.0 3.7 4.1 4.5 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 31-Mar-23 3
Slide 60: Assets and liabilities structure
Assets Structure (GEL bln) Liabilities Structure (GEL bln) 120 % 120 % 26.0 27.1 28.9 22.2 22.9 24.5 100 % 8% 10% 100 % 11% 10% 16% 11% 3% 3% 7% 11% 10% 3% 8% 80% 7% 6% 80% 60% 60% 76% 77% 71% 66% 66% 66% 40% 40% 20% 20% 8% 8% 8% 10% 10% 10% 0% 0% 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 31-Mar-23 30
Slide 61: Gross loans and deposits by currency
Gross Loans Deposits 1% 2% 3% 2% 3% 3% 9% 9% 9% 21% 20% 20% 42% 39% 30% 27% 28% 50% 48% 51% 49% 46% 48% 39% 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 31-Mar-23 30-Jun-23 GEL USD EUR Other GEL USD EUR Other Q2 AND 1H 2023 RESULTS CALL PRESENTATION 61 Source: IFRS Group Data
Slide 62: Loan yields and deposit costs
Loan yields Deposit costs 42.4% 44.2% 42.6% 43.6% 43.0% 26.9% 25.3% 24.9% 23.0% 23.6% 12.4% 12.8% 11.9% 12.1% 11.2% 4.9% 4.9% 12.0% 4.3% 11.5% 11.6% 11.7% 3.9% 10.9% 3.7% 4.5% 4.5% 3.9% 3.5% 3.6% Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Total Loan Yield Georgian Loan Yield Uzbekis
Slide 63: Debt repayments by years
Debt securities, subordinated and senior loans’ principal amount repayments by years (USD mln)1 400.2 16.5 1.8 75.0 286.8 45.1 16.1 161.5 154.0 65.4 52.6 124.1 6.7 29.5 55.4 61.5 - 40.5 12.0 8.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Senior Loans Sub Loans Debt Securities (1) Due to
Slide 64: Retail transactions offloading
Georgia TBC Group Good progress in sales offloading Good progress in sales offloading 73% 80% 82% 71% 77% 69% 64% 65% 71% 70% 79% 78% 76% 60% 58% 70% 49% 50% 48% 47% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 consumer loans deposits consumer loans deposits Retail
Slide 65: Sensitivity analysis
Sensitivity analysis The share of selected FC denominated P/L Items, Q2 2023 FC % of respective totals 10% Currency Depreciation Interest income 37% Effect* Interest expense 26% Regulatory CAR would decrease by: For Total capital would decrease by Net interest income 45% -0.57% For Tier 1 would decr
Slide 66: Appendices: Corporate governance
CONTENTS Appendices Corporate governance Business Q? and 1H 2023 update Financial Results
Slide 67: Board of Directors
BOARD OF DIRECTORS The experienced and diverse independent Board is well placed to drive forward the Group’s ambitious strategy Arne Berggren Tsira Kemularia, CDir Per Anders Fasth Chairman Senior independent Non-Executive Director Independent Non-Executive Director Joined TBC in 2019 Joined TBC in
Slide 68: Corporate governance structure
Shareholders (Annual General Meeting) External Auditor • The Board of Directors oversees the execution of the Remuneration Committee Group’s strategy and operates via its 6 committees covering all major business needs, including technology & ESG committees Audit Committee • The Board consists of 8 N
Slide 69: Appendices: Key ratios, Uzbek financials and glossary
CONTENTS Appendices Key ratios, Uzbek financials and glossary Q? and 1H 2023 Financial Results Business update
Slide 70: TBC Group P&L
Change Change Change Q2 2023 Q1 2023 Q2 2022 1H 2023 1H 2022 YoY QoQ YoY P&L TBC Group (GEL mln) Net interest income 399 367 304 31% 9% 766 592 29% Net fee and commission income 106 92 76 39% 15% 198 142 39% Other operating non-interest income 82 73 85 -4% 12% 155 143 8% Operating profit 587 532 465
Slide 71: Key ratios
Average balances included in this document are calculated as the average of the relevant monthly balances as of each month-end. Balances have been extracted from TBC's unaudited and consolidated management accounts prepared from TBC's accounting records and used by the Management for monitoring and
Slide 72: Key ratios: Georgian financial services and Uzbekistan
Average balances included in this document are calculated as the average of the relevant monthly balances as of each month-end. Balances have been extracted from TBC's unaudited and consolidated management accounts prepared from TBC's accounting records and used by the Management for monitoring and
Slide 73: Ratio definitions
1. Return on average total equity (ROE) equals net profit attributable to owners divided by the monthly average of total shareholders’ equity attributable to the PLC’s equity holders for the same period; annualised where applicable. 2. Return on average total assets (ROA) equals net profit of the pe
Slide 74: Terminology definition
Terminology Definition Georgian financial services includes JSC TBC Bank with its Georgian subsidiaries and JSC TBC Insurance, with Georgian Financial Services (Georgia FS) its subsidiaries. Uzbekistan includes: Uzbekistan (UZ) - The leading payment service provider, Payme (legal name - Inspired LLC
Slide 75: Contact Investor Relations
CONTACT INVESTOR RELATIONS Andrew Keeley Anna Romelashvili Investor Relations Director of Investor Relations and International Media Head of Investor Relations Department E-mail: AKeeley@Tbcbank.com.ge Tel: +44 (0) 7791 569834 E-mail: IR@tbcbank.com.ge E-mail: IR@tbcbank.com.ge Web: www.tbcbankgroup