- Full-Year Net Profit: TBC Group reported GEL 1.4 billion net profit for 2025, a 9% increase year-on-year, with a 24.2% return on equity.
- Q4 Record Performance: The fourth quarter delivered GEL 390 million net profit, up 16% YoY, with a 24.9% return on equity, driven by strong net interest income growth.
- Georgian Franchise Strength: Georgia’s net profit rose 15% YoY to GEL 1.4 billion, with a 25.7% ROE, supported by 7% net interest margin and 1 million TBC daily banking cards issued.
- Uzbekistan Growth: Despite regulatory headwinds, Uzbekistan achieved 45% loan growth YoY and 67% revenue growth, with 6 million monthly active users and 600,000 Payme Plus subscribers.
- Dividend Increase: The final dividend was GEL 3.87 per share, raising the total 2025 dividend to GEL 8.87, a 10% YoY increase, reflecting strong capital management and profitability.
Segment Performance
The Georgian franchise was the main driver of growth, with a 15% year-on-year increase in net profit, driven by robust loan growth and net interest margin. In contrast, the Uzbekistan business faced challenges due to regulatory changes, which led to a contraction in lending and impacted revenues. However, the team made significant progress in scaling up the business, with 45% loan growth, 67% revenue growth, and 6 million monthly active users.
Valuation and Dividend Yield
With a Price-to-Tangible Book Value (P/TBV) of approximately 0.46, the stock appears to be reasonably valued. The dividend yield stands at 6.09%, indicating an attractive return for income-seeking investors. The return on equity (ROE) of 24.01% is impressive, reflecting the company's ability to generate profits from shareholders' equity.
Outlook and Growth Prospects
Management expects the loan book to grow by 20% or more in 2026, driven by the launch of secured loans in the next couple of quarters. The reduction in dependence on migrant deposits is expected to improve liquidity. The company's internal target for GDP growth is 5%, but it may be revised upwards. The regulator's agenda to tighten regulations in Uzbekistan may impact the company's operations, but TBC Group is adapting by launching new products.
Strategic Directions
The company is expected to discuss its strategic goals and directions on its Strategy Day next week. The cash loan business in Georgia has seen 36% year-on-year growth, and the company aims to reduce the micro loan share in Uzbekistan from 70% to below 50% by the end of the year. These developments are expected to drive profitability and growth in the coming years.