Q2 2024 TBC Bank Group PLC Earnings Call Transcript
Key Points
- TBC Bank Group PLC (FRA:LR6) reported a record quarter of earnings with a return on equity of 27%, showcasing strong profitability.
- The digital consumer base continues to grow, with 5.7 million digital monthly active users, indicating successful digital engagement.
- Loan growth remains robust in both Georgia and Uzbekistan, with Uzbekistan now accounting for 7% of the Group's earnings.
- The Georgian economy is performing well, with a revised GDP growth forecast of 7.4% for 2024, driven by tourism and remittances.
- The Uzbek business is expanding rapidly, with a loan book that more than doubled year-on-year and a strong market share in micro loans.
- The net interest margin (NIM) in Georgia decreased by 10 basis points quarter-on-quarter, indicating margin pressure.
- Operating expenses grew by 26% year-on-year, driven by investments in technology and the expansion in Uzbekistan.
- The Uzbek digital lifestyle ecosystem, TNET, saw a slight decline in GMV year-on-year due to strong prior year comparisons.
- There are concerns about political volatility in Georgia, which could impact economic stability and cost of risk.
- High deposit rates in Uzbekistan, around 25-27%, indicate a challenging funding environment despite strong loan yields.
Hello, all, and welcome to the TBC Second Quarter and First Half 2024 Results Conference Call. My name is Harry, and I will be your operator. (Operator Instructions)
I would now like to turn the call over to Andrew Keeley, Director of Investor Relations. Please go ahead when you're ready.
Thanks very much, Harry, and welcome, everybody, to our second quarter results call. Thank you very much for joining. As usual, I'm joined on today's call by our CEO Vakhtang Butskhrikidze; and our CFO, Giorgi Megrelishvili. We'll start with a presentation, and then we'll move on to Q&A.
And with that, I'll hand over to Vakhtang. Thank you.
Thank you, Andrew. Dear all, thank you for joining our second quarter and half year financial results conference call. I am pleased to announce that the second quarter has been another very
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