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1. Company Snapshot

1.a. Company Description

TBC Bank Group PLC, through its subsidiaries, provides banking, leasing, brokerage, and card processing services to corporate and individual customers in Georgia, Azerbaijan, and Uzbekistan.The company operates through Retail; Corporate; and Micro, Small and Medium Enterprises segments.It offers various current/settlement accounts, and term deposits; mortgage, consumer, retail, and corporate loans, as well as loans for micro, small, and medium enterprises; credit cards, credit lines, letters of credit, and guarantees; and money transfer and currency exchange services.


The company also provides motor, life and personal accident, property, health, and other insurance products; investment, brokerage, and corporate finance solutions; and card processing, leasing, PR and marketing, real estate management, asset management, food and beverage, risk monitoring, education, computer and software, e-commerce, and postal services, as well as internet and mobile banking services.The company operates through a network of 147 branches; 1,600 automated teller machines; 26,000 active merchant terminals; and 4,200 self-service terminals.TBC Bank Group PLC was founded in 1992 and is based in Tbilisi, Georgia.

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1.b. Last Insights on TBCG

TBC Bank Group PLC faces challenges from a turbulent UK market, impacted by weak trade data from China. Despite a 6% increase in net profit and strong digital expansion, the bank navigates inflation and regulatory shifts in Uzbekistan. High insider ownership and robust earnings growth may be overshadowed by global economic uncertainties. The company's recent earnings release showed record profits, but concerns over weak trade data and regulatory shifts may weigh on investor sentiment. Regulatory shifts, particularly in Uzbekistan, may pose risks to the bank's growth trajectory.

1.c. Company Highlights

2. TBC Bank's Strong Q3 Earnings: A Closer Look

TBC Bank reported a net profit of GEL 368 million in Q3, up 6% year-on-year, with a return on equity of 24.4%. Revenue growth was 7% year-on-year, driven by a 24% growth in net interest income. The bank's EPS came in at 1.77, in line with estimates. The bank's revenue growth was driven by its expanding digital ecosystem, with registered users totaling almost 22 million, up 28% year-on-year.

Publication Date: Nov -30

📋 Highlights
  • Net Profit Growth: TBC's Q3 net profit reached GEL 368 million, a 6% year-on-year increase with a 24.4% return on equity.
  • Revenue Drivers: Revenue grew 7% YoY, led by 24% net interest income growth, though non-interest income slowed due to higher card fees and loyalty program investments.
  • Digital Expansion: Registered users hit 22 million (+28% YoY), with Uzbekistan's loan book surging over 90% YoY and digital banking ranking top 10 in retail banking.
  • SME Lending Shift: SME loans now 15% of total loan book, with plans to pivot from unsecured consumer loans (79% micro-loans) to secured SME lending amid regulatory risk weight challenges.
  • Insurance Launch: In-house captive insurance (TVC) launched in Q1-Q2 2025, targeting existing customers in Uzbekistan's large and growing market.

Financial Performance

The bank's non-interest income grew by 6% on a quarter-on-quarter basis, but slowed down due to increased card network fees and investments in TBC card, cash backs, and loyalty programs. As CFO Giorgi Megrelishvili noted, "our top line growth has been very strong, driven by net interest income growth, while non-interest income growth slowed down due to increased card network fees and investments in TBC card, cash backs, and loyalty programs."

Valuation

With a Price-to-Tangible Book Value (P/TBV) of 0.4, the bank's valuation appears reasonable. The Dividend Yield stands at 5.87%, indicating an attractive return for investors. Additionally, the bank's Return on Equity (ROE) is 24.01%, demonstrating its ability to generate strong returns for shareholders.

Growth Prospects

TBC Bank is expanding its presence in Uzbekistan, with its loan book growing by over 90% year-on-year. The bank is also diversifying its revenue streams, with the launch of new products such as business lending and digital insurance. However, the proposed risk weights on unsecured consumer loans in Uzbekistan may impact the bank's capital ratios.

Regulatory Environment

The regulator in Uzbekistan is promoting SME lending and introducing new risk weights on unsecured consumer loans. TBC Bank is responding by ramping up its SME lending business, which now accounts for around 15% of its total loan book in Uzbekistan. The bank expects to see a reduction in its capital adequacy ratio in the short term but anticipates it will recover as the risk weights run off.

3. NewsRoom

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TBC Bank Group PLC (TBCCF) Q3 2025 Earnings Call Highlights: Record Profits and Robust Growth ...

Nov -13

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Oct -10

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UK Stock Market: 3 Companies Estimated To Be Undervalued In September 2025

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Sep -16

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TBC Bank Group Second Quarter 2025 Earnings: EPS: GEL6.14 (vs GEL5.94 in 2Q 2024)

Aug -10

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UK's Value Stock Estimates For August 2025

Aug -07

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.30%)

6. Segments

Retail

Expected Growth: 10%

TBC Bank's Retail segment growth is driven by increasing consumer lending, particularly in mortgage and credit card products, as well as growing deposits and transactional volumes. Strong digitalization efforts, expansion of branch network, and strategic partnerships also contribute to the growth. Additionally, Georgia's economic growth and increasing consumer spending power support the segment's 10% growth.

Corporate Banking

Expected Growth: 12%

TBC Bank Group PLC's 12% growth in Corporate Banking is driven by increasing demand for trade finance and cash management services, expansion into new markets, and strategic partnerships with large corporates. Additionally, the bank's digital transformation efforts, improved risk management, and competitive pricing strategies have contributed to its growth momentum.

Micro, Small and Medium Enterprises

Expected Growth: 9%

TBC Bank Group PLC's 9% growth in Micro, Small and Medium Enterprises (MSMEs) is driven by increased access to credit, government initiatives, and a growing entrepreneurial spirit. Additionally, digitalization, e-commerce adoption, and a favorable business environment have contributed to the segment's growth.

Uzbekistan Operations

Expected Growth: 8%

Uzbekistan operations of TBC Bank Group PLC achieved 8% growth driven by increasing demand for digital banking services, strategic partnerships with local businesses, and government initiatives to promote financial inclusion. Additionally, the bank's focus on SME lending and expansion into rural areas contributed to the growth.

Corporate Centre and Other Operations

Expected Growth: 11%

TBC Bank Group PLC's Corporate Centre and Other Operations segment growth of 11% is driven by effective cost management, optimization of operational expenses, and strategic investments in digital transformation. Additionally, the segment benefits from a strong risk management framework, efficient capital allocation, and a favorable macroeconomic environment in Georgia, contributing to its robust growth.

Other Operations and Eliminations

Expected Growth: 7%

TBC Bank Group PLC's Other Operations and Eliminations segment growth of 7% is driven by increased treasury income, higher gains on sale of investments, and improved cost management. Additionally, the segment benefits from a favorable macroeconomic environment, with a growing Georgian economy and a stable currency. These factors contribute to the segment's robust growth, supporting the bank's overall profitability.

7. Detailed Products

Retail Banking

Provides personal banking services to individuals, including current and savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

Offers customized banking solutions to corporate clients, including cash management, trade finance, and lending services.

Micro, Small and Medium-Sized Enterprises (MSME) Banking

Provides specialized banking services to MSMEs, including business loans, overdrafts, and cash management solutions.

Card Products

Issues and acquires various types of cards, including debit, credit, and prepaid cards, for individuals and businesses.

Digital Banking

Offers online and mobile banking services, enabling customers to manage their accounts, make payments, and access financial services remotely.

Trade Finance

Provides import and export financing, letter of credit, and other trade-related services to facilitate international trade.

Treasury Services

Offers cash management, foreign exchange, and investment services to help clients manage their treasury functions.

8. TBC Bank Group PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for TBC Bank Group PLC is moderate due to the presence of alternative banking services and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers is low due to the bank's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the bank's dependence on technology providers and other third-party vendors.

Threat Of New Entrants

The threat of new entrants is high due to the increasing trend of fintech companies and digital banking platforms.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the banking industry and the presence of established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.61%
Debt Cost 9.38%
Equity Weight 49.39%
Equity Cost 9.38%
WACC 9.38%
Leverage 102.48%

11. Quality Control: TBC Bank Group PLC passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.35$

Current Price

40.35$

Potential

-0.00%

Expected Cash-Flows