Georgian banking sector overview

Transcription

1 TBC Bank April 2016

2 Georgian banking sector overview Banking sector landscape Loan to GDP and deposits to GDP 2015 Top-10 largest banks by total assets in Georgia, as at 31 December 2015 (GEL mn)* ,416 5,153 6,714 Market share by total assets as at 31 December 2015 (%) Top 4 domestically-controlled banks* (72%) Strategic investor-controlled banks** (19%) Other banks (9%) Deposits / GDP (%) Loans / GDP (%) 4,620 Source: Company information, NBG (*) Includes TBC (with Constanta), BoGeorgia, Liberty Bank and Cartu Bank; (**) Includes ProCredit Bank, VTB, PrivatBank, BTA, Bank Republic, Halyk Bank and International Bank of Azerbaijan Source: EIU Estimates Equity to assets ,637 1,588 1,224 1,207 1,200 1, BOG TBC Republic Liberty Bank VTB Procredit Cartu BasisBank KOR Standard Pasha Bank Domestic Domestic Foreign Domestic Foreign Foreign Domestic Foreign Foreign Foreign Total assets (GEL mn) Total loans (gross, GEL mn) Market share by total assets (%) ** Market share by total loans (gross, %) ** Equity / assets (%) Source: NBG (*) As at 31 December 2015, under NBG standard disclosure (**) As at 31 December 2015, under NBG standard disclosure Source: EIU Estimates 1.Ukraine data as of 1 Dec 2015; 2. Kazakhstan data as of 1 Dec 2015; 3. Poland data as of 30 Nov 2015; 4.Russia data as of 31 Oct 2015; 5. Bulgaria data as of 30 Sep

3 TBC Bank at a glance Key facts Financial highlights (consolidated figures)* Market position: A leader in the Georgian banking market #1 bank by retail deposits and top 2 bank across other key segments Awarded "Best Bank in Georgia" for 12 of the last 14 years* (22 awards in total) Customer base: Strong operations across all the major market segments in Georgia More than 1.6 million customers in retail, SME, micro-finance and corporate segments Distribution: c.5,300 employees across the entire distribution network 135 branches (including TBC Kredit branches) 358 ATMs (over 500 including partner banks) 8,800 POS terminals (8,490 contactless) & 2,395 Cash-in terminals Operations: banking in Georgia and Non-banking subsidiaries in Georgia in brokerage and leasing segments, card processing and cash-in terminal services Subsidiaries in Azerbaijan (TBC Kredit) and Israel (TBC Invest) Key figures* (31 Dec 2015) Key ratios (31 Dec 2015) Ratings GEL mn USD mn Total assets 6,935 2,896 Customer loans (gross) 4,639 1,937 Customer deposits 4,178 1,745 Shareholders' equity 1, ROE 20.1% Cost-income ratio 43.9% NPL ratio** 4.8% (affirmed on 28 May 2015) (affirmed on 2 October 2015) (*) Exchange rate used: USD/GEL as at 31 December 2015, (**) per updated methodology Other 3.5% Middle Management 0.4% Top Management 3.3% Net L/D+IFI funds ratio 95% Tier 1 ratio (BIS) 25% BB- / Stable (FC Long Term IDR) B (FC Short Term IDR) B1 / Stable (Bank Deposits Fgn Curr) Ba3 (Bank Deposits Dom Curr) Current shareholding structure (Dec 2015) Founders 22.2% LSE Listed 70.6% EBRD 12.4% IFC 6.2% FMO 4.4% Institutional and retail Investors 47.6% Note: Market position, number of customers as at 31 December 2015, distribution network related figures as at 31 December 2015; (*) The Banker Awards (2002, 2003, 2004, 2005, 2010, 2011, 2014), Euromoney (2011, 2012, 2014,2015), Global Finance magazine (2004, 2006, 2007, 2012, 2013, 2014, 2015), EMEA Finance (2011,2012,2013,2014). 3

4 How we are different 1 Business model focused on core banking activities in Georgia 4 Best in class multichannel platform TBC remains focused on pure banking model in Georgia TBC s banking/lending activities account for 99.5% of total assets and 99.9% of total assets are concentrated in Georgia Franchise focus (total assets) FY 2015 Banking/lending activities (99.5%) Other activites* (0.5%) Cash-in Terminals 2,395 Branches 135 IB&MB c.213,000 active users MB c.109,000 active users ATMs Source: Company IFRS reports, (*) For TBC non-banking / non-lending activities include MALI LLC Real Estate Management Fund, TBC Invest, TBC Broker, TBC Pay, UFC and BSSC Strongest brand POS Terminals 8,800 TBC distribution platform Call-Centre c. 200 TBC has been named Best bank in Georgia : 8 times 7 times 4 times 4 times Highest number of such awards of any bank in Georgia 3 Highest customer experience 4.1. Most innovative branches CSAT* (Customer Satisfaction Score) and NPS (Net Promoter Score) studies show that the Bank has the highest scores in banking industry in this area The Bank continues to leverage from the highest customer experience and continuously benchmarks its score to international and local banks CSAT score: 81.2% In 2014, TBC Bank hired Allan International for further developing the bank branch design concept, and two new concept branches have been already opened in December 2015 In 2015 the Bank renovated its VIP service area offering a whole new experience to its VIP customers (*) Source: ACT research; CSAT score conducted in December 2015 TBC The Best Private Bank in Georgia 2014, 2015 The Banker and The Personal Wealth Management Magazine 4

5 Strong track record of growth and profitability Consistent track-record both in terms of business volumes as well as profitability Robust business volume growth rates Maintaining high margins while controlling asset quality Total assets, total gross loans and total deposits (GEL mn) Net interest margin (as % of average interest earning assets) Net Loans/ Deposits + IFIs (%) ,935 Cost of risk (%) 1.0% 1.3% 1.6% 1.7% 3,900 2,537 2,487 4,451 2,959 2,887 5,423 3,706 3,322 4,639 4, Total assets Gross Loans Customer deposits (CAGR* 21.2%) (CAGR* 22.3%) (CAGR* 18.9%) (*) CAGR over the period December December and growing exposure to retail segment Gross loans to and deposits of retail segment (GEL mn) Proportion of total loan / deposit portfolio (%) Net income (GEL mn) High profitability levels ,398 1,208 1,611 1,667 1,977 2,020 2, Retail Loans Retail Deposits Source: Consolidated IFRS figures. ROE (%). ROA (%) 5

6 Upcoming Premium Listing transaction and Mid-term vision Following the successful completion of the largest off-index international IPO from EMEA region on the LSE and the largest Georgian IPO from the country, TBC Bank currently seeks the Premium Listing. The Bank appointed Barclays Bank PLC as its Financial Advisor for the Premium Listing process, which is planned to be completed in the second half of Mid-term vision Mission We create new opportunities for the success of people and businesses Competitive strengths Strong brand Superior customer experience Innovative multi-channel facilities Highly professional workforce Current performance Mid-term targets Loan book growth (gross) % p.a. c.20% p.a. Mid-term performance aspirations ROE % 20% Cost income ratio % < 40% Equity Tier I capital ratio 4 (Basel II/III) 12.8% c.10.5% Dividend payout ratio 5 25% 25% (1) 12-month growth as of YE 2015, on TBC consolidated IFRS basis (2) TBC consolidated IFRS basis (YE 2015) (3) Cost income ratio calculated as ratio of operating expenses to operating income (excl. loan impairment expense); TBC consolidated IFRS basis (YE 2015) (4) Based on the relevant Basel II/III methodology prevailing at current time; subject to capital targets and dividend payouts (YE 2015) (5) Dividends under "Current performance" shows TBC Bank payout ratio in 2015 based on 2014 performance; under "Mid-term targets" on TBC consolidated IFRS basis; dividend target was approved on shareholder meeting in May