GEORGIA - Country General Overview

Transcription

1 Presentation 2011

2 GEORGIA - Country General Overview High economic growth for the past five years; Stable currency and strong fiscal performance; Low level of dependence on a single source of energy supply ; Consistently increasing consumer spending and low levels of consumer indebtedness; Significant government spending on infrastructure; No currency or capital control since the mid-1990s; Simplified tax code; Simplified customs code; Extensive deregulation and liberalization; #1 reformer named by the World Bank (Doing Business Report 2007); Ranked 11 th out of 183 countries in Ease of Doing Business in 2010 (Doing Business Report 2010); Ranked the world s 26 th freest economy and 14 th out of 43 countries in the European region. (Heritage Foundation s 2010 index of Economic Freedom) ; Consistent growth of foreign investor activity. Key Economic Indicators F GDP, $m 7, ,172 12,801 10,767 8,237* Nominal GDP per capita, $ 1,763 2,315 2,921 2,455 1,857* Real GDP growth rate, % 9.4% 12.4% 2.3% -3.8% 6.5% Annual average inflation rate, % 8.8% 11.0% 5.5% 3.0% 11.2% Registered unemployment, % 13.6% 13.3% 16.5% 16.9% * As of Q3 10 Source: Ministry of Economic Development, Ministry of Finance, Department for Statistics of Georgia, National Bank of Georgia. Country Ratings Fitch Ratings Long Term Issuer Default Rating B+ Short Term Issuer Default Rating B Local Currency Long Term Issuer Default Rating B+ Country Ceiling BB- S&P Ratings Domestic & Foreign Rating B+ T&C Assessment BB Moody s Ratings LT Issuer Rating (Foreign) & (Domestic) Ba3 Senior Unsecured (Foreign) Ba3 2

3 Banking Sector - Regulation National Bank of Georgia (NBG), central bank, ensures stability and soundness of the Banking system. Its method of regulating and monitoring commercial banks is very strict and conservative. Table below shows major ratios that commercial banks are required to comply with. Ratio Requirements TBC Bank YE 10 Primary Capital Ratio- Tier 1 8% 12.20% Total Capital Ratio- Tier 2 12% 17.61% Average Liquidity Ratio 30% 32.77% Single Related Party 5% 2.82% All Related Parties 25% 10.22% Open FX Position Limit 20% 3.98% 3

4 Georgia Armenia Latvia Turkey Moldova Russia Ukraine Lithuania Hungary Bulgaria Romania Belarus Serbia Croatia Estonia Banking Sector Loans / GDP Deposits / GDP Total Banking System Loans - GEL m 40% 35% 30% 25% 20% 15% 10% 5% 15% 11% 19% 15% 27% 31% 19% 19% 28% 22% 31% 24% 33% 26% 36% 29% 12,000 10,500 9,000 7,500 6,000 4,500 3,000 1,500 79% 55% 1,730 2,681 71% 4,589 5,993 5,185 5,957 15% 31% -13% 10,029 8,462 7,100 19% 19% 19% 100% 80% 60% 40% 20% 0% 0% 0 20% E2010 E 2011 E Total Banking loans/gdp Total Banking Depozits/GDP Loans Growth rate Source: NBG historical data. Internal analysis using similar ratios of CEE countries Deposits / GDP By Countries (Benchmark) Source: National bank of Georgia historical data Total Banking System Deposits - GEL m 80% 70% 60% 50% 40% 30% 20% 10% 0% 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, % 7,835 6,611 5,590 4,727 3,215 3,568 3,950 11% 11% 20% 18% 18% 19% % 50% 40% 30% 20% 10% 0% Deposits growth rate Source: National bank of Georgia Source: National bank of Georgia historical data 4

5 TBC Bank Banker s Award Financial times years: , 2010! Global Finance years: Awards Quick Facts: Established in 1992; Second-largest bank in Georgia in terms of assets, loans, deposits, and equity; Largest retail deposits among Georgian banks; 45 branches throughout Georgia; More than 2,000 employees; Majority of shares (55%) held by International Financial Institutions; Audited by PricewaterhouseCoopers; former audit companies were Deloitte and Ernst & Young. Financial Highlights Deutsche Bank's STP Excellence Years: EBRD Most Active Issuing Bank under TFP Service quality recognitions: In USD and thousands Total Assets 1,269,255 1,024,821 1,169,697 1,071,199 Gross Loans 840, , , ,954 Total Liabilities 1,068, ,030 1,022, ,725 Customer Deposits 764, , , ,059 Shareholder's Equity 200, , , ,474 Based on National Bank of Georgia s Standards ROA 2.2% 0.1% -3.2% 2.1% ROE 13.0% 0.4% -20.4% 11.2% Cost to Income 67.7% 98.1% 330.7% 59.5% Basel capital adequacy 27.4% 37.0% 18.9% 25.8% Ratings Fitch ratings Moody s Investor Service B+/B Ba3/NP (LC) & B1/NP (FC) 5

6 TBC Bank - Ownership Shareholder s Structure 20.08% Georgian Shareholders EBRD - European Bank for Reconstruction and Development 20.08% 11.48% 3.28% 5.00% 5.00% IFC - International Financial Corporation DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbh FMO - Netherlands Development Finance Company JPMorgan Chase Bank 35.08% Ashmore Cayman SPC Mamuka Khazaradze Badri Japaridze Members of the Board: Eric Rajendra Mike Hesketh Steffen Suhany Emile Groot David Khazaradze Supervisory Board Chairman of the Supervisory Board Vice Chairman of the Supervisory Board IFC - International Financial Corporation EBRD - European Bank for reconstruction and Development DEG - German Investment Corporation FMO - Netherlands Development Finance Company Georgian Entrepreneur Subsidiaries TBC Bank has a number wholly owned subsidiaries in its portfolio: TBC Leasing - Leasing company ; United Financial Corporation - Card processing centre; TBC Broker Brokerage company; TBC Kredit Microfinance organization in Azerbaijan; TBC Pay Retail payment collection system; TBC Invest - Marketing and promotional company in Israel. 6

7 TBC Bank vs Market (Peer Group) Retail Loans Corporate Loans Total Loans 60.5% 55.9% 57.7% 19.2% 19.8% 20.1% 23.9% 29.0% 26.5% 22.7% 25.0% 25.6% 23.7% 21.6% 24.6% Retail Deposits 53.8% Corporate Deposits 53.3% Total Deposits 53.6% 27.9% 27.0% 31.4% 32.2% 20.7% 19.8% 17.6% 18.4% 24.2% 23.6% 24.9% 25.0% Peer Group: Bank of Georgia Bank Republic VTB Bank Procredit Bank 7

8 TBC Bank vs Market (Peer Group) 151.0% 168.8% Loans to Deposits 113.9% 109.9% 120.6% 68.8% Loans to Total Assets 72.9% 64.9% 66.2% 60.3% Peer Group: Bank of Georgia Bank Republic VTB Bank Procredit Bank Retail Loans to Total Loans Retail Deposits to Total Deposits 26.1% 35.2% 37.3% 37.5% 40.4% 55.7% 59.7% 67.0% 62.0% 48.5% 8

9 TBC Bank - Products We offer various products in order to satisfy your financial needs. Current Account Access to the funds whenever you wish and benefit from interest accrual Available Currencies - USD/EUR/GBP Interest up to 4.00% per annum. Interest is accrued at the end of each month Term Deposit Available Currencies - USD/EUR/GBP/NIS Interest up to 9.00% per annum. Interest is accrued at the end of each month. Savings Account - My Safe Access to the funds whenever you wish and benefit from interest accrual. Available Currencies - USD/EUR/GBP Interest up to 6.00% per annum. Interest is accrued at the end of each month on minimal deposit balance maintained throughout the month. For more clarification see the example: At the beginning of the month you deposited USD 800,000, But throughout the month USD 250,000 of withdrawal took place, maintaining USD 550,000 balance. Though the deposit was increased the same month, the interest will be calculated based on USD 550,000, which is minimal balance maintained throughout the month. 9

10 TBC Bank - Products GOLD VISA / Master Card Status Card (Gold) VISA / Master Card Platinum - VISA Card Cards Depending on the type of card you choose, up to 5.00% Interest accrual is considered. Internet Banking Internet Banking is a modern remote account managing system based on a leading technologies. Internet banking enables clients to: Place electronic orders for wire transfers in GEL and foreign currency; Send cash collection orders and text messages to the Bank Receive information regarding active account balances; Print account statements in desired layout; Access current and past transaction details; Store bank accounts details; etc. More detailed information regarding the fees, rates and terms are available in the Term sheets. Please note that accrued interest in not subject to taxation under Georgian law. 10

11 Contact Information Your Personal Banker is ready to assist you with all transactions and issues For more information regarding products and terms please contact TBC INVEST. Doron Shevel Director Migdal Moshe aviv 40 th floor 7 Jabonitsky street, Ramat Gan, Shaly Pichadze Director Migdal Moshe aviv 40 th floor 7 Jabonitsky street, Ramat Gan, Doron@tbcinvest.co.il Tel: + (972) Cell: + (972) Shaly@tbcinvest.co.il Tel: + (972) Cell: + (972) For more information about JSC TBC Bank you can contact Giorgi Kekelidze Project Manager Wealth Management Division 7 Marjanishvili st. Tbilisi, Georgia Gkekelidze@tbcbank.com.ge Tel: +(995 32) Fax: +(995 32)