- TBC Bank reported net profit for the first quarter of 2018 rose to GEL 97.5m from GEL 96.6m, the same period a year ago as net interest margin rose to 6.9% from 6.6%.

The firm reported total assets of GEL 12,401.0m for the quarter, up by 19.7%, compared to the same period a year ago, while total operating income was GEL 238.7, up 17.3% year-on-year.

Return on equity fell to 21.0% from 24.2%, while risk adjusted net interest margin stood at 5.2%, up from 5.1% the prior period.

'We were successful in increasing higher yield, higher risk loan share of our portfolio, which will continue to support our net interest margin in the future, however will have a negative impact on cost of risk,' the firm said.

The firm said it expected net interest margin in the medium to short term around 6.6% with a 0.4% margin of error and cost of risk to be in the range of 1.4-2.0%.

Cost to income fell to 38.1% from 40.8%, while NPLs fell 0.3% to 3.1% compared to the prior period.

Gross loans and advances to customers grew 18.4% GEL 8,432.9m for the quarter, while total customer deposits grew 25.4% to GEL 7,610.8m.

The firm reiterated its medium-term targets of return on equity of above 20%, cost to income ratio below 40%, dividend pay-out ratio of 25-35% and loan book growth at around 15%.

At 10:04am: [LON:TBCG] TBC Bank Group Plc share price was -15p at 1759p

Story provided by