TBC BANK – 25 years of development

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TBC BANK is celebrating its 25 years jubilee. Vakhtang Butskhrikidze, TBC Bank CEO talked to The FINANCIAL about the most significant dates of the bank history.

On December 17, 1992 the joint-stock company TBC Bank was founded.

In May 1993, TBC Bank was granted a license to conduct international transactions.

In June 1996, Coopers & Lybrand conducted the first international audit of the bank.
In August, TACIS and TBC Bank made their first credit agreement.
In December, TBC Bank began funding small and medium-sized businesses. The European Bank for Reconstruction and Development (EBRD) provided its first line of credit to TBC Bank at 3 million USD.

In February 1997, The World Bank provided a 1 million USD line of credit to TBC Bank.
TBC Bank launches first debit card.

In February 1998, the International Finance Corporation (IFC) provided a USD 3 million line of credit to TBC Bank for financing small and medium-sized enterprises.
On March 17, TBC Bank and EBRD signed an agreement on the Letter of Credit Support Project for 2 million USD. The project supported the development of commerce and establishment of new commercial contacts in Georgia.
On April 16, the German Investment and Development Company’s (DEG) provided a 3 million German Frank line of credit to TBC Bank for financing small and medium-sized enterprises.

On August 17 1999, EBRD increased TBC Bank’s Letter of Credit Support Project by USD 2 million and became a guarantor of the Bank for first class banks.
In May TBC Bank co-founded the Microfinance Bank of Georgia (now ProCreditBank).
TBC Bank transferred to International Accounting Standards.

On February 2, 2000, DEG provided its second line of credit for 2 million Euro to TBC Bank.
On May 26, International Finance Corporation (IFC) and German Investment and Development Company (DEG) became the shareholders of TBC Bank, with 10% each.
In September, the Thompson Financial Bankwatch awarded TBC Bank an international rating, making it the first Georgian company to obtain an international rating.

On May 8 2001, TBC Bank co-founded the Georgian Pension and Insurance Holding (GPI Holding), the first insurance company in Georgia to offer its clients pension insurance.
On June 13, the Georgian Times publishing company and GORBI Marketing Research Company named TBC Bank “The Best Georgian company of 2001”.

On September 3, TBC Bank was nominated among the world’s “Best Banks of the Year” by the annual bank rating of the Financial Times Group’s magazine The Banker.

TBC’s financial performance from the 1st quarter of 2002 established the bank as the largest bank in Georgia. At this stage, TBC Bank became the leading bank in terms of assets, as well as liabilities, credit portfolio and some other major financial indicators.

On March 14 2002, TBC Bank’s branch network expanded further into the eastern Georgian region Kakheti by opening the fifth branch in Telavi. Other regional branches included Samtskhe-Javakheti, Kvemo Kartli, Kutaisi and Poti branches.
On June 13, TBC Bank was named as The Best Georgian Company of 2001 at 2001 Georgian Business Rating Ceremony. Whereas TBC Bank’s General Director, Mr. Vakhtang Butskhrikidze, was presented The Best Georgian Businessman of 2001 award. It is also noteworthy that apart from the main award, TBC Bank was presented special category award for The Most Effective Management.
In December, TBC Bank was awarded the Euromarket Forum-2002 prize.
TBC Bank launched new public website.

On May 23 2004, the South-East European Development Fund became a shareholder of JSC TBC Bank, with 25% equity participation.
On September 9, TBC Bank was named one of “the Best Banks of the Year” in the annual ratings of the “Banker” Magazine of the Financial Times Group, for the second time in a row.
On December 5, TBC Bank and IFC signed an agreement on risk insurance worth EUR 2 million and USD 3 million.
On December 19, TBC Bank and EBRD signed an agreement providing a credit line worth 6 million USD. This was the first investment in the Georgian commercial sector since the Rose Revolution in 2003.
TBC Bank established literary award “Saba”.

2004: Since January, the company TBC Leasing, founded by TBC Bank, entered the Georgian market. After a year, TBC Leasing achieved a substantial position on the Georgian leasing market.
In March, the American magazine Global Finance named TBC Bank one of the best banks worldwide operating on the foreign exchange market.
On July 29, TBC Bank opened its 6th regional branch in Batumi, Adjara.
On September 7, results of the Financial Times Group’s annual rating were announced, TBC Bank was named one of “the Best Banks of the Year” for the third time in a row.

TBC Bank’s new headquarters
In January, the International Finance Corporation (IFC) granted TBC Bank a 4 million USD subordinated loan, making TBC Bank the first Georgian commercial bank to receive a subordinated loan from an international financial institution.
On February 26, TBC Bank opened its new Tbilisi Head Office in a unique historical building constructed at the beginning of the 20th century. The Bank spent USD 6 million on renovating the new HQ that is listed among the city’s architectural monuments.
Starting from May 1, TBC Bank increased the maximum term of mortgage loan to 20 years. This was a significant step for the entire Georgian banking sector considering that the previous maximum loan term in Georgia was 10 years.
On July 27, IFC allocated a 3 million USD line of credit line TBC Leasing, an institution founded by TBC Bank. This was the first IFC investment in the Georgian leasing sector.
In September, in the annual bank rating the Financial Times Group named TBC Bank one of the world’s “Best Banks of the Year” for the fourth time.
On September 26, TBC Bank and the European Bank for Reconstruction and Development (EBRD) signed an 10 million USD agreement for financing small and medium business.
In October, the American magazine Global Finance for the fourth time named TBC Bank one of the best banks worldwide operating on foreign exchange market.
On November 7, the international rating agency Fitch Ratings raised TBC Bank’s Long-term Issuer Default Rating (IDR) from “CCC+” to “B-“, while its Short-term IDR improved from “C” to “B”.. In the long-run, the bank’s growth was assessed as “stable”.

In February DEG allocated a 10 million USD subordinated loan to invest in the equity of TBC Bank.
On March 1, EBRD purchased 10% of TBC Leasing’s shares. At the same time it allocated a 3 million USD loan to TBC Leasing. This is the first EBRD investment in the Georgian leasing sector.
In April, American magazine Global Finance, in its regular bank rating “The Best Banks of Developing Markets of the World” rated TBC Bank as “The Best Bank in Georgia”.
On May 1, TBC Bank and IFC reached an agreement on the implementation of a Technical Assistance Project. The goal of the project was to strengthen the position of TBC Bank in the retail sales segment.
In May, CITI Bank provided a 35 million USD unsecured loan to TBC Bank. This was the largest line of credit ever provided by a foreign commercial bank to a Georgian bank.
In July EBRD provided TBC Bank with a credit line worth 15 million USD, which was intended for mortgage lending in Georgia.
On August 28, the international Rating Agency Fitch Ratings revised its Outlook on TBC Bank from Stable to Positive.
In November, the Netherlands Development Financial Company (FMO) and TBC Bank reached the agreement on allocation of a line of credit worth USD 10 million for 5 years term.
In December the international organization Business Initiative Directions granted TBC Bank a Gold Star – an international quality award.
TBC Bank has launched first co-branded cards.

In February TBC Bank bought 20% of shares of one of the leading educational institutions in Georgia, the European School of Management in Tbilisi.
In March TBC Bank was awarded the most authoritative quality standard in the world – Certificate of Conformity with Requirements ISO 9001:2000.
In March, the American magazine Global Finance named TBC Bank in its rating of “The Best Banks of Emerging Markets of the World” and called it “The Best Bank in Georgia”.
In July, International rating agency Fitch Ratings raised the Bank’s Long-term Issuer Default Rating (IDR) by two notches, awarding it a “B+”.
In May, The international agency Moody’s Investors Services gave TBC Bank the following ratings for 2007: appraisal – stable; bank deposits in foreign currency – B3/NP; bank deposits in national currency – Ba1/NP; Bank’s financial stability – D-.
In autumn, TBC Bank expanded its presence in the region by successfully acquiring 75% of shares of Azerbaijan’s SOA Credit.
In December, in cooperation with the international consulting company SENTEO, TBC Bank introduced a completely new type of branch office design to the local market, created in line with modern international standards.

On February 16, TBC Bank initiated an unprecedented large-scale deposit raffle. Over the raffle period 9 depositors won cars and on December 31st, the grand prize – GEL 1,000,000 – was drawn.
In 2008, TBC Bank opened 23 new branches, 3 service centers and installed 80 new ATMs throughout the country.
Over the year, TBC Bank attracted foreign investment totaling to USD 206 million from foreign markets, including the following international financial institutions: DEG, FMO, Merrill Lynch, RoseMount, OTP, Banco Internacional, EBRD, OPIC, CITI Bank.
On August 13, TBC Bank established a charitable organization “TBC Foundation” with an initial donation of GEL 5 million in order to support victims of the 2008 armed conflict. This was the largest social investment by a Georgian company to date.

EBRD, FMO, JP Morgan and Ashmore became the shareholders of TBC Bank.
Despite the crisis, during the year TBC Bank was able to raise 161 million USD from international finance institutions.
TBC Bank was granted the international certificate of quality management systems ISO 9001:2008 for the second time.
Deutsche Bank named TBC Bank “Best Bank” according to the quality of currency transfers and awarded it “The 2008 USD STP Excellence Award ” certificate.
The largest raffle to date “Become a Millionaire” was successfully completed and 7 apartments and 1 million GEL were raffled off.

TBC Bank launched its customer loyalty program SmartClub – the first of its kind on the local market. Due to this initiative with each and every transaction TBC Bank’s devoted clients receive bonuses – SMART POINTS – which they can exchange for gifts at TBC Bank’s partner shops.
International rating agency Fitch Ratings confirmed the rating TBC Bank was awarded in 2009 and once again gave TBC Bank B+ rating, the projection positive. Additionally, Fitch Ratings emphasized and positively evaluated TBC Bank’s high capitalization, level of liquidity, and profitability.
The Banker, magazine of the Financial Times Group named TBC Bank “The Best Bank of the Year in Georgia”.

International Ranking Agency Moody’s upgraded TBC Bank’s long term deposit in foreign currency rating by two notches from B3 to B1 and assigned a “Stable” outlook.
Deutsche Bank named TBC Bank as “The Best Bank” according to High Quality Currency Transfer and awarded it with the “2010 USD STP Excellence Award”.
TBC Bank purchased 80 percent of the assets of Bank Constanta, one of the successful financial institutions operating in micro-finance.
Because of TBC Bank’s high quality currency transfers and the success it had achieved in the international trade finance sector, Commerzebank also named TBC Bank “The Best Bank” and awarded TBC Bank with the “2010 USD STP Excellence Award”.
The UK-based publication Euromoney, one of the largest financial magazines in Europe, named TBC Bank as “The Best Bank in Georgia”.

TBC Bank celebrated its 20th anniversary. Founded in 1992 with an initial capital of USD 500, today TBC Bank is a leading Georgian universal bank, serving up to 1,000,000 customers in its four business segments: corporate, retail, SME and micro (through its subsidiary Bank Constanta).
TBC Bank maintained its leadership in Retail Deposits with a 36.0% market share.
International Ratings Agency Fitch Ratings upgraded TBC Bank’s long-term deposit rating to ‘BB-‘ from ‘B+’ and Viability Rating to ‘BB-‘ from ‘B+’, with a Stable Outlook.
TBC Bank launched the first iPhone Internet banking application in Georgia, followed by the new Android and Smartphone Internet banking applications
TBC Bank was awarded “Best Consumer Internet Bank in Georgia” by Global Finance Magazine and was the first bank in the Caucasus to win a regional award for the “Best Integrated Consumer Bank site in Central and Eastern Europe” by the same publication.
Euromoney, Global Finance, and EMEA Finance Magazines named TBC Bank as the “Best Bank in Georgia, 2012”.
Deutsche Bank and Commerzbank rewarded TBC Bank for USD STP Excellence, and for the first time, Deutsche Bank also recognized TBC for EUR STP Excellence, in 2012.
TBC Bank was named “Best Foreign Exchange Provider in Georgia 2013” by Global Finance Magazine.
TBC Bank raised GEL 135 million in new financing through various equity and debt transactions.

TBC Bank launches the SME Business Support Programme, with support from the IFC and ADB.
TBC Bank was the first Georgian bank to file an ICAAP report according to Pillar II or Basel III requirements.
TBC Bank maintained its market leadership in retail deposits for the seventh consecutive years, with 33.1% market share as at 31 December 2013.
TBC Bank was the first Georgian bank to file the ICAAP report according to Basel III Pillar II requirements.
Further enhancement was made in the Bank’s corporate governance by adding three key committees at the Supervisory Board level: (1) Risks, Ethics, and Compliance Committee, (2) Remuneration Committee and (3) the Corporate Governance and Nomination Committee. In addition, our Audit Committee was updated to reflect international best practices and the Basel requirements.
TBC Bank’s new internet banking platform was recognized with two global awards by the Global Finance Magazine: Best Bill Payment & Presentment in the World and Best Integrated Internet Bank Site in the World. These were the first worldwide recognition for any Georgian bank.
TBC Bank continued to strengthen its multichannel capabilities through introducing the first of its kind Blackberry and iPad banking in the country, following the introduction of mobile banking applications for iPhone/Android and smartphones for the first time in 2012.
TBC Bank launched the SME Business Support Program with support from the International Financial Corporation (IFC) and Asian Development Bank (ADB). TBC Bank is the first and only bank in the Caucasian region to provide non-financial services of this kind to its customers.
TBC Bank introduced innovative branding and marketing initiatives, including the “Three Musketeers” campaign and the “Sensory” marketing project.
TBC Bank raised USD 50 million from ADB meant exclusively for rural SME financing. This was the first such partnership between the two institutions.
2013 also saw an exceptional transaction for the Bank with the first, private and IFI co-funded USD 35 million subordinated syndicated loan facility in the country. Cordiant Capital, a private Canadian investor, and Swedfund, the Swedish development bank, contributed USD 5 and 10 million respectively with FMO, the Dutch development bank, providing USD 20 million in this landmark agreement. This complicated transaction was executed in an especially short amount of time and attracted two new investors to Georgia – the deal was the first in the region for Swedfund and the first in Georgia for Cordinat Capital since 2005.

TBC Bank successfully conducts an IPO, listing GDRs of the Bank on the main market of the LSE.
TBC Bank ownership reached 100% of Bank Constanta.

The merger with Bank Constanta is completed, giving TBC Bank clear leadership in the rapidly growing microfinance segment.

TBC Bank moves to the LSE’s premium segment via listing the shares of TBC PLC and acquires 100% of Bank Republic, making it Georgia’s number one banking group according to most key metrics.
TBC Bank also acquires 100% of Kopenbur, an insurance company that specialises in retail products, to boost its consumer offering.

TBC Bank has successfully completed the merger with Bank Republic on May 8, well ahead of the schedule.
TBC Bank Group plc shares is included as a constituent in the FTSE250 Index from 19 June.








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