Finance

TBC switches to quarterly dividend payment, 1Q25 - GEL1.5

The 1Q 2025 Dividend will be payable in Pounds Sterling to ordinary shareholders of TBC PLC on the register of members at the close of business on the record date of 15 August 2025, pursuant to the following timetable: Ex-Dividend Date: 14 August 2025 Record Date: 15 August 2025 Currency Conversion Date: 15 August 2025 Payment Date: 5 September 2025 The Georgian Lari to Pound Sterling exchange rate that will apply to the final dividend payments on the conversion date of 15 August 2025 will be the average exchange rate of the National Bank of Georgia for the period of 11 August 2025 to and including of 15 August 2025 (5 days average).“I am pleased to announce that the Board has approved the decision to issue quarterly dividends, which will contribute to the regular growth of shareholder value. This step was made possible by the strong operating performance, business predictability and prudent capital management. Accordingly, the Board has declared an interim dividend for 1Q25 in the amount of 1.5 GEL per share,” said Vakhtang Butskhrikidze, CEO of TBC PLC.

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MFOs’ Rating

As of Q1/2025, the market is represented by 30 MFOs, whose total portfolio has decreased by 300 million compared to the same period in 2024. This is only the effect of the exit of 2 MFOs from the market. The former MFO, Crystal, moved to the microbanking market with credit investments of more than 500 million GEL. MBC, whose portfolio was within 120 million GEL, also left the MFO.Lazika Capital, which, unlike the other pawnshops in the TOP-8, is also preparing for microbanking, is represented by a business portfolio.

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₾319 million profit, 23% ROE - TBC PLC publishes 1Q25 results

According to the statement of TBC PLC CEO Vakhtang Butskiridze, they had a significant increase in the issuance of new cards, both in the Georgian and Uzbek markets.“I am pleased to report a strong start to 2025, which is particularly welcome given the uncertain global backdrop. In 1Q 2025, our operating income increased by 25% year-on-year and amounted to GEL 774 million, while our net profit reached GEL 319 million, up 7% year-on-year, delivering above 23% ROE.It was a very active quarter in building out our recent pipeline of new product launches. This included excellent growth in the issuance of our new Georgian daily banking product, TBC Card, with new card issuance almost tripling in the first quarter of 2025 compared to the same period last year. Meanwhile, in Uzbekistan, our Salom Card daily banking product and Osmon credit card have both hit the ground running, with over 275,000 cards issued by the end of the first quarter”, - Butskhrikidze said.According to him, TBC recently extended their SME digital banking offering to include unsecured loans as they look to develop the huge untapped opportunity within the SME sector in Uzbekistan.As we offer new products and improved customer experience, we in turn continue to see strong customer growth, with digital monthly active users (“MAU”) reaching 7.2 million at the Group level, up by 1.6 million, or 28%, year-on-year.As of Butskhrikidze, over one-third of their users engage with TBC’s digital platforms on a daily basis, which is an excellent indicator of user loyalty and engagement.The group will present the results to investors today at 2:00 PM BST.

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GEL Volume Is Up In Circulation

As of May 1, the volume of GEL in circulation is 6.4 billion (01.04.2025 – 6.3 billion; 01.05.2024 -5.7 billion).In March, there was a decrease of several million. In February, according to the NBG's "Monthly Review" (the month reviewed is one month ahead of the month of publication of the document), the volume of reserve money decreased by 47.7 million GEL (0.7%), to 7 billion, and the monetary base decreased by 112 million GEL.The NBG did not carry out transactions through foreign exchange auctions and the BMatch platform.With internal government conversions, the regulator's net sales amounted to 148 million lari. As a result, foreign exchange reserves decreased. The NBG could not fully cover the February deficit in March, but managed to replenish it by 102 million lari. As investment bankers say, the NBG purchased even more on BMatch in April.At the moment, according to the latest "Monthly Review", broad money (M3) decreased by 404.5 million lari in February. This was mainly due to a decrease in foreign currency deposits.

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TBC strengthens its team in Uzbekistan

Shukhratbek Kurbanov, who headed the National Interbank Payment Center (HUMO Payment System Operator), has been appointed as an advisor to the Chairman of the Management Board of TBC Bank in Uzbekistan on the development and servicing of the business segment payments.According to TBC Bank, this is another important step for the company in developing financial services for small and medium-sized businesses (SMEs) in Uzbekistan."We are pleased to welcome Shuhratbek Kurbanov to our team. His appointment is an important milestone in our company's strategy to create comprehensive financial solutions aimed at supporting small and medium-sized businesses in Uzbekistan. Shuhratbek's experience, deep understanding of the market and reputation will serve to develop our online banking services and stimulate entrepreneurship in the country," Nika Kurdiani, CEO TBC Uzbekistan."I am pleased to join the TBC Uzbekistan ecosystem, one of the fastest growing companies in Central Asia. Our mission is to create favorable conditions for the development of small and medium-sized businesses in the country through modern financial solutions, advanced technologies, and coordinated work of a team of professionals”, said Shuhratbek Kurbanov, Advisor to the Chairman of the Board of TBC Bank:The information is disseminated by the TBC Bank Uzbekistan

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Paysera still could not make a profit in Q1/2025

The General Director of the digital bank, Dimitri Kumsishvili, announced that 2024 would end with a profit, but expectations were disappointed, it did not (2024: - 792 GEL).For a newly launched financial institution, losses are a standard fact, because it has more expenses. In addition, it had to pay a fine of 36,000 GEL to the National Bank of Georgia, the regulator fined Paysera Bank with 46,000 GEL for violating money laundering legislation.As of April 1, the digital bank is represented by assets of 19.7 million GEL. Its main activity is transfers, in 20 currencies. The market advantage is low commission. In the direction of Europe it is 7 Euro. The most expensive, 15 Euro equivalent is a Chinese yuan transaction and is available only to legal entities.The lower rate for the Euro is due to its participation in SEPA (Single Euro Payments Area), which gives a competitive advantage.It has loan and deposit products. It is represented only by current accounts (3.4 million GEL).

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NBG Decided To Keep The Monetary Policy Rate Unchanged At 8%

Inflation remains close to the target level of 3%. As of April, annual inflation stood at 3.4%, while core inflation, which excludes the prices of food, energy products, and cigarettes - items characterized by significant price volatility - was 2.3%. This year, inflation dynamics are, on the one hand, driven by the increasing international food prices, which, for now, are partially mitigated by the relatively stable exchange rate of the lari against U.S. dollar driven by the global depreciation of the U.S. dollar. On the other hand, alongside international factors, the increase in food inflation has been partly attributed to the one-off rise in bread prices in the local market starting from March 2025. It is important to note that domestic economic fundamentals continue to support price stability. Specifically, improved production capacity partially offsets the price pressures stemming from strong aggregate demand. At the same time, long-term inflation expectations remain stable, as indicated by both the domestic (excluding the bread price effect) and service inflation measures, which remain close to the target level of 3%.Against the backdrop of global economic uncertainty, risks affecting inflation in both upward and downward directions have emerged. On the one hand, recent global developments highlight signs of economic fragmentation, which amplify stagflationary risks. This, in turn, creates risks for increased imported inflation in Georgia. On the other hand, as previously noted, the global weakening of the U.S. dollar index (DXY) has led to an improvement in the lari’s position relative to the U.S. dollar. This reduces the debt burden of dollar-denominated loans and, consequently, alleviates inflationary pressures through this channel. Meanwhile, in the context of declining global demand and expectations of increased oil supply, international oil prices are falling. This, along with the lari’s stable position against the U.S. dollar, has a disinflationary effect.Economic activity in Georgia remains robust in tandem with maintained price stability. Specifically, in the first quarter of 2025, real GDP growth averaged 9.3%. This is largely driven by structural changes in the economy, as reflected in the sustained strong contribution of productive sectors to GDP growth. At the same time, strong domestic demand also plays a key role in supporting high economic growth. This leaves demand-side price pressure as a noteworthy factor to consider.Considering increased global uncertainty, domestic tendencies and expectations in financial markets, the NBG's central scenario projects that inflation will temporarily exceed the target in 2025, stabilizing around 3% in the medium term. Due to the relatively slow pace of normalization of fundamental economic factors in the economy and strong current economic growth, real GDP growth in the central scenario for 2025 has been revised upwards from 5% to 6.7%, compared to the previous scenario. In the long term, it is expected to stabilize within its potential level of 5%.Given the increasing uncertainty, the Monetary Policy Committee has, on one hand, considered a high-inflation risk scenario, where the realization of fundamental factors would require a higher path for the policy rate compared to the central scenario. The high-inflation scenario is primarily based on the recent increase in uncertainty in international markets, which is fueled by tariff policy and the acceleration of economic fragmentation. The materialization of these risks, in turn, would disrupt supply chains and create a globally high-inflationary environment, which would subsequently have an impact on Georgia.On the other hand, the Monetary Policy Committee considered the low-inflation risk scenario, where the realization of fundamental factors would require a lower trajectory for the monetary policy rate compared to the central scenario. The increased global uncertainty and tariff policies may accelerate the diversification of trade worldwide, resulting in the reallocation of supply chains and regionalization. In this process, Georgia's role as the "Middle Corridor" country will be further strengthened. Moreover, under this scenario, the U.S. dollar will remain globally weakened, and against the backdrop of these tendencies, the appreciated exchange rate of the lari will exert downward pressure on overall inflation through the import inflation channel.Following discussions on all of the above, the Monetary Policy Committee has considered it optimal to maintain a cautious approach toward the further normalization of the policy rate and decided to keep the monetary policy rate unchanged at 8%. Upcoming decisions on the policy rate will depend on the analysis of risks and resulting updated macroeconomic forecast scenarios.The NBG will use all available instruments to maintain price stability. This means keeping the overall price level increase close to the 3% target over the medium term.The next meeting of the Monetary Policy Committee will be held on June 18, 2025.

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Memorandum of Understanding signed between TBC, TBC Capital and ADB

The framework agreement for co-financing is the first to be signed by the Asian Development Bank. This unprecedented financing model will be introduced in other regions only after its implementation in Georgia and Uzbekistan. The MoU will facilitate access to financing in both countries and deepen the partnership between TBC and ADB.Within the framework of the memorandum, in the period 2025-2028, ADB plans to allocate up to 150 million USD in financing for strategically important projects. Also, with the support of TBC and TBC Capital, an additional 150 million USD is envisaged to be attracted. Financing will be implemented through direct loans and bond issuance.

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Lion Finance Group Plans to Pay GEL 5.62 per ordinary share

The Company confirms that the dividend will be put to shareholder approval at the AGM on 16 June 2025. If the final dividend of GEL 5.62 per ordinary share is approved by shareholders at the AGM, the following dividend timetable will apply:Ex-Dividend Date: 3 July 2025Record Date: 4 July 2025Currency Conversion Date: 4 July 2025Payment Date: 18 July 2025The National Bank of Georgia Georgian Lari/Pounds Sterling average exchange rate for the period 30 June to 4 July 2025 will be used as the exchange rate on the Currency Conversion Date.As a reminder, the group paid an interim dividend of GEL 3.38 per share on October 11 of last year.

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TBC Is The Leader By Loan Portfolio – Banks’ Ranking

The high growth rate of foreign currency loans was maintained in March. In March, they increased by 2.1%. Lari loans by 1.4%.By the end of March 2025, the larization ratio of total loans amounted to 56.89%.TOP-8 Banks By Credit Portfolio

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TBC strengthens its team in Uzbekistan

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Popular

MFOs’ Rating

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TBC Is The Leader By Loan Portfolio – Banks’ Ranking

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₾319 million profit, 23% ROE - TBC PLC publishes 1Q25 results

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GDP Growth Made Up 9% In March Y-O-Y

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Paysera still could not make a profit in Q1/2025

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Politics

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Irakli Kobakhidze was elected as the Chairman of the GD political part...

The position of party chairman became vacant following former chair Irakli Garibashvili’s announcement of his withdrawal from politics.The 9th GD Congress has also formally updated the composition of the Political Council for the Georgian Dream party.The Political Council is now comprised of: Bidzina Ivanishvili, Irakli Kobakhidze, Kakha Kaladze, Shalva Papuashvili, Mamuka Mdinaradze, Giorgi Volski, Tea Tsulukiani, Vakhtang Gomelauri, Irakli Chikovani, Maka Bochorishvili, Nikoloz Samkharadze, Mariam Kvrivishvili, Dimitri Samkharadze, Sulkhan Tamazashvili, and Nino Tsilosani.Irakli Kobakhidze had previously held the position of Chairman of the Georgian Dream Party between 2021 and 2024.

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Infrastructure Minister appoints Beka Urushadze as Municipal Developme...

Beka Urushadze has a PhD in economics and information and communications technologies. He has worked as a project manager in different educational institutions and has held managerial positions in commercial organizations such as Urus Group, Vision Fund International and World Vision International.Beka Urushadze worked as an IT advisor in the Penitentiary and Probation Ministry. He replaced Davit Tabidze in the post at the Municipal Development Fund.

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PM appoints new state governors in five regions

By decision of the Prime Minister, the position of State Governor in Mtskheta-Mtianeti was assigned to Aleksandre Zagashvili, in Shida Kartli to Simon Guledani, in Samtskhe-Javakheti to Zaal Gelashvili, in Guria to Giorgi Ghurjumelidze, and in Kvemo Kartli to Levan Kharabadze.According to the governmental administration, Irakli Kobakhidze met with the newly appointed state governors today at the Government House, together with the Minister of Regional Development, Kakha Guledani.The Prime Minister emphasized the special importance of regional development and noted that the establishment of the Ministry of Regional Development as a separate agency also demonstrates the priority of this issue.According to the Head of Government, even more attention will be paid to the effective implementation of projects related to regional development, and in this process, the regions need to have leaders distinguished by experience, professionalism, and integrity.The Prime Minister also drew attention to the need to improve the quality and coordination of projects and wished the newly appointed state representatives success.

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Georgia moves up from 103rd to 114th place in RSF's Media Freedom Inde...

According to the document, the media landscape is diverse and, at the same time, highly politically polarised. Manipulation, hate speech and disinformation are widespread in the media, especially on television, the main source of information. Media owners often control editorial content, as was the case with Rustavi 2, a TV channel that changed its editorial line after its handover to a former owner, and the public broadcaster GPB, which experienced government interference. Regional and community radio stations struggle with funding problems, while the print media’s readership is in decline and that of online news outlets is on the rise.The country is undergoing a new and serious political crisis following widely contested legislative elections in October 2024, which have plunged the country into a repressive environment and international isolation. This environment is conducive to sustained competition for control of television networks. Although Georgian law prohibits political parties from owning media outlets, the big networks generally defend the interests of their owners, who often have close ties to political leaders. The same goes for state-owned media, which are subject to strong interference by the authorities. At the same time, the authorities often refuse to respond to media that criticise them and sometimes resort to censorship, raids, smear campaigns and intimidation.The government still hasn’t fulfilled the European Union’s recommendation on press freedom, a necessary step before starting negotiations on membership. Contrary to previous reforms strengthening pluralism and transparency in the media, the government even adopted a repressive “foreign influence” law that copies the Russian “foreign agents” legislation, which undermines media freedom. The courts sometimes try to attack the confidentiality of sources, even though it is guaranteed by the law on freedom of expression.The underdeveloped advertising market is declining in print and online media, which are largely financed by donors, usually from the West. The worrying economic problems of privately owned media have been accentuated by the “foreign influence” law, which penalises media outlets supported by Western institutions, as well as changes in advertising legislation, distorting competition with the heavily subsidised state-owned media.Georgian society is marked by strong social tensions on certain issues, such as religion, LGBTQ+, rights and Russian influence, impacting journalistic coverage. Influential social figures, such as members of the Orthodox clergy, are wiretapped by the security services, thereby violating the confidentiality of journalists’ sources.Verbal and physical assaults on journalists are frequent, including by senior government officials, especially during electoral campaigns. A sustained and brutal assault on about 50 reporters during homophobic counter-demonstrations in July 2021, in front of impassive security forces, marked an unprecedented setback. The lack of transparency and progress in the investigation speaks to the impunity enjoyed by those who commit crimes against journalists.

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Public Defender echoes investigative actions ongoing in Foundations Ca...

According to Levan Ioseliani, all possible measures must be taken to prevent harm to minors“It should be emphasized that when conducting investigative actions, all possible measures must be taken to prevent harm to minors. For this purpose, the law enforcement agency is obliged to assess the situation in advance and create a safe environment for the minors. And, in case of impossibility of prior consideration, the minor should be promptly removed from the ongoing processes, with the involvement of a family member, relative or trusted person, or if this is not possible, the involvement of a social worker and psychologist should be ensured.The Public Defender will study the above facts and will have all appropriate responses within the scope of his authority,” reads the statement.The police searched the residence of Aleko Tskitishvili, the Executive Director of the Human Rights Centre. Searches were also carried out at the homes of journalist and Nanuka Fund founder Nanuka Zhorzholiani, as well as Mariam Bajelidze, one of the founders of the Sirtskhvilia (Shame) movement.