TBC Bank to miss full-year profit targets, but outlook still strong

(Sharecast News) - Shares in TBC Bank tanked on Thursday after the Georgia and Uzbekistan-focused banking group said it expects profits to be slightly below targets this year. While reporting solid income, profit and customer deposit growth over the third quarter, the firm's near-term outlook disappointed.

"The year has [...] clearly had its challenges, with the previously flagged headwinds in 1H, while in 2H, we have pivoted our business from microloans to SME lending more quickly than previously anticipated in line with the changing regulatory agenda," said chief executive Vakhtang Butskhrikidze.

As a result, the company said that net profits will be "slightly below" the GEL1.5bn (£420m) target range.

Nevertheless, TBC hailed a "very consistent and strong operating performance" during the third quarter, with net profits rising 6.1% to a quarterly record of GEL368m.

Total operating income was 16.8% higher than last year at GEL880.2m, helped by a 24.2% surge in net interest income to GEL611.5m.

Customer deposits were 5.7% higher over the three-month period at GEL24.6bn, representing 12.8% growth over last year, while gross loans totalled GEL28.7bn, up 13.4% year-on-year. Total monthly active customers across both regions increased 14% to 7.46m.

Despite the disappointing 2025 guidance update, Butskhrikidze painted a positive outlook: "As a group, we are well-positioned for the future. We have an excellent and reliable Georgian franchise, while in Uzbekistan we have a flexible and resilient business model that enables us to adapt quickly to the evolving environment.

"We remain highly positive on the long-term growth opportunities in both markets."

The stock was down 4.7% at 4,095p by 0954 GMT.