The FINANCIAL -- Last year has passed with consistent and stable growth for the Bank.
Today it is one of the leading banks in Georgia, with USD 370 million in
capital and USD 2.5 billion in assets. Meanwhile, 2013 will be the year
of technological development for TBC Bank .
“2013 should be a year of innovation in the development of banking technology, with high standards of remote service. Time-saving is a main concern of both individuals and businesses these days. It is a challenge faced by today’s world and one that we can see clearly. Much attention will be paid to supporting our partner companies. I think that this will prove to be a very valuable contribution to the success of their businesses,” Vakhtang Butkhrikidze, CEO of TBC Bank , the leading Georgian bank, told The FINANCIAL.
Regional development, improvement of banking services and increased efficiency of services are another challenge for TBC Bank . “I am sure that our objectives are both sufficiently ambitious and realistic at the same time,” Butskhrikidze said.
“Last year was an anniversary as well as a landmark year for TBC Bank . We celebrated the 20th anniversary of the Bank and also embarked upon the start of a new decade. Twenty years is a significant amount of time for a Georgia-based company, particularly because private business in the country has itself only existed for twenty years. We are particularly proud that these past 20 years, which have been very difficult at times and full of political and economic crises, have passed with consistent and stable growth for the Bank.
Twenty years on from its establishment, we are very proud that our company has always served a mission - to create new opportunities for people and businesses, contributing to the country’s further economic development and growth.
Last year we significantly expanded business operations. We improved our position in the market even further. At the same time, we made our company’s anniversary year a memorable one for our whole community.
According to the data from 2012, the Bank’s net profit amounted to GEL 97.8 million last year. Total assets increased by 18.4%, resulting in growth of its market share by 25.8%. Total loan volume increased by 17% and deposits by 24.4%. As a result we reached 26.2% in our share of the credit market and 31.5% of the deposits market. We strengthened our position on the retail deposit market in particular, and with over 35% became the leading bank.
At the end of 2012 total capital of TBC Group (including Bank Constanta) had increased by 28% amounting to GEL 604 million. The main supporting factors of this growth were the growth of capital by GEL 25 million and increase of Tier 2 Capital (secondary capital) by GEL 25 million by the Bank’s shareholders.
Q. Which were your most popular loans in 2012?
A. Consumer loans were the most popular of our retail loans by share and number. As for mortgage loans, their share out of the total retail loan portfolio is 43%. The remaining 57% covers all other types of loans: consumer loans, credit cards and other types of loan products.
The loan portfolio issued for the corporate sector amounted to GEL 1,142 million at year-end 2012 which is GEL 138 million (or 12%) higher than the corresponding figure of 2011. This rate of growth has continued in 2013. The Bank predicts that in 2013 crediting of the corporate sector will increase. TBC Bank also plans to discover new opportunities in the health, agriculture, food, energy and service sectors.
Q. By what percentage do you plan to reduce credit interest rates during 2013?
A. The trend of decreasing interest rates on loans started two to three years ago. Accordingly, it is expected that given the natural state of competition in banking this trend will continue. I would like to reiterate the fact that a decrease in interest rates will not happen suddenly. It is a slow process. Therefore we should not expect a drastic reduction in interest rates. It will happen steadily, step by step.
Q. Which of your credit products is a priority?
A. Our mortgage as well as consumer loans are prioritized on the individual loans market. It is also very important that this year we have introduced new credit product mortgage loans in GEL with the lowest interest rate starting from 10.5%. This is one of the best mortgage loans available on the market.
The mortgage loan in GEL is a joint product of TBC Bank and NBG. This is what causes the low interest rate accompanying it. Specifically, the interest rate is determined by the sum of the rate of refinancing of the central bank and TBC Bank . The National Bank’s refinancing rate is determined on a monthly basis. Accordingly, the interest rate on our mortgage loan may be reduced or slightly increased. Either way it will remain the lowest on the market.
This loan is comfortable with the fact that consumers are no longer dependent on unfavourable currency rate fluctuations. They pay the loan in the same currency in which they earn income and most importantly, enjoy the lowest interest rate of from 10.5%.
Q. What share of your clients use internet banking?
A. Last year was especially successful in terms of our offering a variety of different products and services. I would single out in particular the introduction of ultramodern internet and mobile banking. For the first time in Georgia, TBC Bank offered internet banking applications for iPhone, Android and other smartphones. Last year this project won international recognition. Global Finance Magazine named TBC Bank the bank with the best internet and mobile banking in Central and Eastern Europe. TBC is the only bank in Georgia to have been awarded this nomination and received regional recognition.
According to the data of 31 March, 2013, approximately 40% of active individual users use internet banking.
Q. How has the popularity of internet banking been increasing on a yearly basis?
A. Demand for remote services increases daily as saving time becomes more and more important. The launch of our new internet banking in 2012 was a giant leap for registered users.
The number of registered users for TBC Bank ’s internet banking increased by more than 40,000 during one year (from February 2012 to February 2013). As a result, the share of the Bank’s individual clients registered with the Bank’s internet service has reached 37% (27% as of February 2012); the number of active internet users quadrupled.