- Georgian lender TBC Bank posted a steep fall in first-half profit after it increased its credit loss allowance amid the Covid-19 crisis.

Pre-tax profit for the six months through June amounted to GEL 44.9m, down 83% from GEL 265.9m on-year. In the second quarter, pre-tax profit rose 7.2% to GEL 138.9m.

Over the first half, net interest income fell 1.6%, while net fee and commission income fell 2.7%.

Gross loans jumped 22%, while customer deposits rose 5.5%.

TBC Bank said not declare an interim dividend.

'Given the uncertainties associated with the Covid-19 pandemic, our focus in the short-term will be maintaining prudent capital and liquidity positions and, proactively managing asset quality and cost optimization,' chief executive Vakhtang Butskhrikidze said.

'At the same time, we will concentrate our efforts on supporting existing customers to withstand the negative impacts of Covid-19 rather than the acquisition of new clients.'

'In the medium term (3 to 5 years), we remain committed to our guidance: ROE of above 20%, a cost to income ratio below 35%, a dividend payout ratio of 25-35% and loan book growth of around 10-15%.'

At 9:39am: [LON:TBCG] Tbc Bank Group PLC share price was +12p at 888p

Story provided by