TBC Bank
Continued significant improvement of its balance sheet and a surge in profits were more than enough to convince the judges to hand TBC Bank the award for the second year running.
The bank more than doubled its profits (+130%) last year and nearly doubled its ROE to 41% from 24% in the previous year. Its balance sheet was considerably strengthened by a 46% increase in Tier 1 capital. Its cost-to-income ratio fell from 75% in 2001 to 63% in 2002.
Founded in 1992 following the collapse of the Soviet Union, TBC is now Georgia’s largest bank. It has a 25.7% share of the country’s deposits and 18.5% of its total banking assets. It is the only Georgian bank that has obtained a credit rating (from Fitch).
TBC Bank has been improving its technology to provide better customer service. This has led to a 200% increase in the deposit base and a 167% rise in consumer and real estate loans made by the bank.
The bank has become so attractive that Soros Investment Capital, an investment company tied to the billionaire financier George Soros, purchased a 25% stake last year.
Mamuka Khazaradze, chairman of the supervisory board, said: “The history of TBC Bank consists of 11 years of significant accomplishments. These have been achieved through professionalism, loyalty and great efforts by our staff members. The bank is one of the most successful stories in the history of Georgian business. Established 10 years ago, the bank now has about 400 staff members and manages assets of around GEL200m ($94.8m).
“TBC Bank’s excellent performance, which allowed us to win The Banker’s award in 2002 and 2003, is a result of its focus on its target segment and quality of its banking products and services. We believe that the bank’s success story will continue and it will become the first Georgian bank to expand its operations in the markets of other CIS countries.”
