(Including details from statement, quota, background)
February 19 (Reuters) – Georgia ‘s largest banking group TBC Bank on Friday reversed a decline in annual base profit due to lower interest rates and limited borrowing growth in the fourth quarter from the COVID-19 pandemic.
The 250 FTSE-listed bank, which reiterated its medium-term targets, said underlying profit fell to 322.5 million lari ($ 97.96 million) for the 12 months ended December 31, from 540.3 million lari a year earlier.
According to lenders worldwide, TBC had invested 225 million lari in preparations for loans that could go bad as a result of the global health crisis while aiming for strengthen its digital capabilities.
TBC’s net interest margin, the main measure of bank profit, fell to 4.7% for the period from 5.6%.
Its total loan portfolio reached 15.20 billion lari by 2020-end, a 3% increase on a stable cash basis but a lower growth rate compared to the previous year.
“The limited growth was related to the second wave of pandemic restrictions in 4Q,” the company said.
The bank confirmed its medium-term targets for average payback yields above 20%, a payout ratio of 25-35% and loan book growth of around 10-15%.
$ 1 = 3.2921 laris Reporting by Priyanshi Mandhan in Bengaluru; Edited by Sriraj Kalluvila and Vinay Dwivedi