TBC Bank (TBCCF) Q2 2026 Earnings Report

The call presents a predominantly positive operating and financial performance: strong profitability, robust loan and deposit growth led by Georgia, improving margins, solid capital and dividend increases, digital and payments momentum, and strategic expansion in Uzbekistan (OLX). However, meaningful challenges remain concentrated in Uzbekistan—elevated NPLs, higher near‑term cost of risk (expected to peak in Q3), portfolio contraction and regulatory uncertainty—plus a group‑level decline in digital MAU. On balance the company demonstrates resilient core earnings and clear plans to address Uzbekistan stresses, so positives outweigh the negatives.

Management guided that Uzbekistan will face near-term asset-quality headwinds with cost of risk likely rising to the low‑mid teens in Q3 before a more positive trajectory in Q4, while Georgia’s macro outlook is favorable (real GDP outlook ~7.4%, H1 real GDP +7.9%, inflation ~5.8% expected to remain) and Uzbekistan’s H1 GDP +8.5% with inflation ~6.4% stable; group financial targets remain intact (ROE target 23%+, achieved 23.6% in Q2 and 23.5% H1, 14 consecutive quarters >23%), and the board declared a Q2 dividend of GEL 1.75/share (H1 total GEL 3.5/share, +8% YoY). Key Q2/H1 metrics underpinning guidance include Q2 net profit GEL 386m (+12% YoY) and H1 net profit GEL 751m (+13% YoY); total operating income +10% YoY, net interest income +13% YoY (Georgia NII +19% YoY), group NIM ~7.1%; gross loans +12% YoY (Georgia +14%), customer deposits +15% YoY; group cost/income ~38.3%, group cost of risk 1.6% in Q2 (1.5% H1), group NPLs 3.3% (up 0.3ppt) with Uzbekistan NPL coverage ~114%; digital MAU 7.2m (‑6% YoY) with DAU/MAU ~50% and Georgia adding ~50k digital MAU in Q2; Uzbekistan payment volume H1 GEL 3.2bn (+54% YoY), Salom cards >1.2m, Osmon cards >210k.