WOOD Flash – TBC Bank: 2Q24 results and conference call

TBC has reported GEL 329m in net income for 2Q24 (up 12% yoy), broadly in line with the GEL 314m consensus and our GEL 321m estimate. In terms of the core lines, we see no major deviations from the consensus or our estimates, with the provisions being an exception, as the COR in Georgia was as low as 30bpts, on the back of a sizable recovery (16bpts benefit) and a positive macro outlook (the bank has revised its 2024E Georgia GDP growth expectations from 6.4% to 7.4%). TBC also announced a GEL 2.55/share dividend (a 2.6% yield on the current share price), payable in November. Although we do not know the details, management also discussed a regulatory change in Uzbekistan that bases the RWA on unsecured loans on PTIs, rather than interest rates. In our view, such a change could reduce the capital intensity at TBC UZ and boost its earnings power in the medium term. We rate TBC a BUY, with a GBP 38.0/share PT. The bank is trading at 1.1x P/TBV and 4.4x P/E on our 2024E estimates.