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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's recent performance was driven by a record fourth quarter in 2025, with net profit reaching nearly GEL 390 million. The full-year net profit exceeded GEL 1.4 billion, up 9% year-over-year, and return on equity (ROE) stood at 24.2%. This achievement reflects the bank's resilience in a challenging environment. According to recent earnings calls, management expressed confidence in the company's growth trajectory. With a strong financial position, TBC Bank Group is well-positioned to navigate uncertain times, as noted by investors seeking growth stocks with high insider ownership.

1.c. Company Highlights

2. TBC Group's Strong 2025 Results Driven by Georgian Franchise

TBC Group reported a robust financial performance for 2025, with a net profit of GEL 1.4 billion, up 9% year-on-year, and a return on equity of 24.2%. The company's revenue growth was driven by its core Georgian franchise, which saw a 15% year-on-year increase in net profit. The group's earnings per share (EPS) for the year were GEL 3.57, slightly below analyst estimates of GEL 3.79. The net interest margin (NIM) remained solid at 7%, supported by a 6% NIM in Georgia. The cost-to-income ratio decreased to 37.5%, indicating efficient cost management.

Publication Date: Feb -24

📋 Highlights
  • 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.

3. NewsRoom

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TBC Bank Group Investor Day: Targets 15%+ Loan Growth, 23%+ ROE and Teases Uzbekistan IPO Option

Feb -24

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TBC Bank Group PLC (TBCCF) Q4 2025 Earnings Call Highlights: Record Profits and Strategic Shifts

Feb -24

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TBC Bank Group Q4 Earnings Call Highlights

Feb -20

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Dec -09

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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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Sep -19

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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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A-Score: 6.6/10

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Quality: 6.7

Yield: 8.1

Momentum: 8.0

Volatility: 3.3

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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

44.4$

Current Price

44.4$

Potential

-0.00%

Expected Cash-Flows