BAKU, Azerbaijan, August 27. TBC Group posted
net profit of GEL 751 million ($281 million) in the first half of
2026, up 13% year-on-year, while return on equity (ROE) remained
above 23%.


This was reflected in the press release by the TBC Group.


In the second quarter of 2026 alone, the group's net profit
reached GEL 386 million ($145 million), increasing by 11.5%
compared to the same period a year earlier. Total operating income
in Q2 2026 rose 9.9% year-on-year to GEL 917 million ($344
million), supported by a 12.8% increase in net interest income. Net
interest margin (NIM) remained stable at 7.1% year-on-year and
improved by 0.1 percentage points compared with the previous
quarter. The cost-to-income ratio improved to 38.3% in Q2, down
from 40.2% in Q1.


Gross loans increased 9.9% year-on-year to GEL 31.3 billion
($11.7 billion) as of the end of June, while customer deposits grew
13.5% to GEL 26.5 billion ($9.9 billion). Total assets reached GEL
44.3 billion ($16.6 billion). The group's non-performing loan (NPL)
ratio stood at 3.3%, compared with 2.5% a year earlier. NPL
provision coverage decreased from 78.2% to 66.2%, while total NPL
coverage, including collateral, declined from 142.4% to 119.8%.


TBC Group said the increase in cost of risk to 1.6% in the
second quarter was mainly linked to the seasoning of the Uzbekistan
loan portfolio, changes in loan book dynamics and write-off
adjustments. The group added that its loan portfolio in Uzbekistan
has stabilised.


Earnings per share (EPS) in Q2 reached GEL 6.94 ($2.60), up
13.2% year-on-year, while book value per share increased 17.8% to
GEL 121.46 ($45.49). The group confirmed that it remains on track
to meet its 2026–2028 strategic targets, including annual loan
growth of more than 15%, ROE above 23%, and an annual payout ratio
of 25–45%.







Trend's analysis
reveals that the 13% increase in net profit against 9.9% growth in
operating income points to continued cost discipline as one of the
key drivers of earnings performance. Operating expenses increased
11.9% year-on-year, remaining slightly below income growth, while
the quarterly improvement in the cost-to-income ratio from 40.2% to
38.3% indicates further efficiency gains.


At 7.1%, TBC's net interest margin remains high by regional
standards, supported by the lending environment in Georgia and
relatively stable funding costs. Maintaining this margin will
remain an important factor supporting earnings resilience as the
group continues expanding its business.


Asset quality trends will remain an important factor to monitor.
Trend's calculations
based on TBC Group data show that the NPL ratio increased by 0.8
percentage points year-on-year, from 2.5% to 3.3%, while NPL
provision coverage declined from 78.2% to 66.2%. The total NPL
coverage ratio, including collateral, decreased from 142.4% to
119.8%, although it remains above 100%.


The changes largely reflect developments in Uzbekistan, where
TBC has been scaling its digital banking operations, while the
group has indicated that its Uzbek loan portfolio has stabilised.
As the group continues to expand lending, maintaining asset quality
and effective provisioning practices will remain important for
future portfolio performance.


Trend's
calculations also show that current loan growth of 9.9% remains
below TBC Group's medium-term target of 15%+ annual growth, meaning
that lending activity would need to accelerate in the second half
of 2026 to reach the stated objective. Georgia remains the group's
main earnings contributor, accounting for approximately 95% of
profits, while Uzbekistan represents the group's key digital growth
market. At the same time, Georgian household lending dynamics
continue to be monitored by the National Bank of Georgia as part of
broader macroprudential supervision, making balanced credit
expansion an important consideration for the banking sector.