TBILISI

TBC Bank, Georgia’s biggest bank by assets, said net profit increased to 153 million lari ($49.4 million) in the first quarter as restrictions to curb the spread of COVID-19 started to be eased.

Net profit in creased from 57 million lari in the same period last year, the bank said. TBC Bank is one of the two biggest commercial banks in Georgia and is listed on the London Stock Exchange.

Georgia’s banking sector started to show its first signs of recovery since some COVID-related restrictions were first eased at the beginning of this year.  Commercial banks in Georgia reported a total net profit of 584 million lari in January-April compared to a loss of 667 million lari in the same period last year, when the banking sector was first hit by strict restrictions imposed to stop the spread of COVID-19.

Georgia has 15 commercial banks, including 14 with foreign capital. TBC Bank is one of the two biggest commercial banks in Georgia and is listed on the London Stock Exchange.

TBC Bank’s total assets rose 18.2 percent year-on-year to 23.6 million lari in January to March. Total gross loans and advances to customers rose 10.1 percent to 15.3 million lari. Total customer deposits rose 27 percent to 14.2 million lari.

Georgia’s central bank said that total income rose to 1.827 billion lari in January to April compared to 1.552 billion lari in the same period last year. Expenses dropped to 1.186 billion lari, from 2.331 billion lari.

And the recovery in the banking sector keeps gathering pace. By May 1, banks’ total assets had risen to 58.668 million lari, from 49.118 million lari a year ago. Total liabilities rose to 52.264 million lari from 44.063 million lari. Capital increased to 6.404 million lari from 5.055 million lari.

In March, Fitch Ratings revised the outlook on TBC Bank to “stable” from “negative”, while affirming its long-term Issuer Default Ratings (IDRs). The agency said that the revision of the outlook to “stable” reflected “reduced pressure on the bank’s credit profile from the pandemic and contraction of the Georgian economy.”

Fitch said that the funding and liquidity profile of TBC had been stable as the bank was largely funded by customer deposits (66 percent of liabilities) and there had been no material outflows at times of market turbulence in 2020.

The agency added that it expected that TBC’s pre-impairment profit was sufficient to absorb any additional credit losses from the pandemic without jeopardising its financial profile.