TBC Bank Group (LON:TBCG) reported record third-quarter 2026 net profit of GEL 404 million, up 10% from a year earlier, as lending growth in Georgia and a wider group net interest margin supported earnings.
The company also declared a quarterly dividend of GEL 1.75 per share and announced a GEL 50 million share buyback and cancellation program. Dividends for the first nine months totaled GEL 5.25 per share, up 5% year over year.
Group return on equity was 23.2%, marking the 15th consecutive quarter above 23%, Chief Financial Officer Guy Stevens said on the earnings call. Georgia remained the main earnings driver, generating 96% of group net profit and a return on equity of 24.8%.
Loan Growth and Margins Support Earnings
Total operating income rose 10% year over year, including a 13% increase in net interest income. Group loans grew 16% on a constant-currency basis, while customer deposits increased 14% to GEL 27.6 billion.
Group net interest margin increased 10 basis points from the previous quarter to 7.4%. Stevens said the improvement came from Uzbekistan, where portfolio growth and active management of deposit and funding costs lifted margins. Georgia’s margin was stable at 6.4%.
Operating expenses rose 13% year over year, partly reflecting preparations for renewed growth in Uzbekistan. The group cost-to-income ratio increased to 38.7%, although Georgia’s ratio improved to 32.7%.
The group’s nonperforming loan ratio was unchanged from the second quarter at 3.3%, while cost of risk fell to 1.3% from 1.6%.
Georgia Remains the Core Business
Chief Executive Officer Vakhtang Butskhrikidze said Georgian net profit rose 17% year over year. The country accounted for 93% of group loans and 82% of operating income.
Georgia’s loan portfolio grew 18% on a constant-currency basis. Retail lending increased 21%, including 36% growth in unsecured consumer loans, while lending to legal entities rose 16%. Customer deposits, excluding Ministry of Finance deposits, increased 15% on the same basis.
Butskhrikidze said the bank had increased its consumer-loan market share by about 1 to 2 percentage points annually over the past two to three years. He forecast a further increase of around 1.5 to 2 percentage points in 2027.
The bank also launched American Express payment acceptance at merchants and online. Butskhrikidze said the partnership could increase its acquiring business by 1% to 2% next year and modestly boost Georgian fee and commission income.
Uzbekistan Lending Returns to Growth
Uzbekistan’s loan book grew 3% during the third quarter as TBC continued to shift away from instant cash loans. The portfolio excluding those loans rose 13% from the previous quarter. Instant cash loans represented 53% of the Uzbekistan portfolio, while business lending accounted for 20%.
Stevens said the overall Uzbekistan portfolio remained almost 11% below its September 2025 level after the recalibration. He expects further growth outside instant cash loans in the fourth quarter, but said it was too early to provide a 2027 loan-growth forecast.
Payme payment volumes rose 54% year over year in U.S. dollar terms, and Uzbekistan monthly active users exceeded 6 million. Across the group, digital monthly active users increased by more than 350,000 during the quarter to over 7.5 million.
Butskhrikidze reiterated the company’s ambition for Uzbekistan to generate at least 20% of group profit by 2030. Stevens said the pace toward that goal would differ from the original plan because of the portfolio recalibration.
Credit Risk and Regulation Remain in Focus
Uzbekistan’s nonperforming loan ratio rose as older loans continued to season and a longer write-off period affected the ratio, Stevens said. Cost of risk improved to 10.8% in the third quarter, below the level management had expected at the previous results call.
Stevens said further restrictions on automatic loan collections are expected to take effect on Jan. 9, 2027. The company is assessing their potential impact and expects to provide a clearer update with its year-end results. Excluding potential effects from the changes, he expects fourth-quarter Uzbekistan cost of risk to remain broadly consistent with the second and third quarters.
Separately, Stevens said Uzbekistan’s central bank no longer intends to implement proposed changes to consumer-loan risk weightings. Requirements to reduce instant cash loans as a share of the Uzbek bank’s balance sheet remain in place, however: the bank must reach 50% by the end of 2026 and 25% by the end of 2027.
Stevens said the company remains on track for its 2026–2028 financial targets. He also expects positive operating jaws in Uzbekistan as growth improves through 2027, after investment in the business weighs on near-term costs.
About TBC Bank Group (LON:TBCG)
TBC Bank Group PLC (“TBC PLC”) is a public limited company registered in England and Wales. TBC PLC is the parent company of JSC TBC Bank (“TBC Bank”) and a group of companies that principally operate in Georgia in the financial sector. TBC Bank, together with its subsidiaries, is a leading universal banking group in Georgia. TBC PLC also offers non-financial services via TNET, the largest digital ecosystem in Georgia. Since 2019, TBC PLC has expanded its operations into Uzbekistan by operating fast growing retail digital financial services in the country.
