TBC Bank focuses on annually expanding its loan book by, approximately, 15-20 percent.
Impressively, the bank purchased businesses from the Societe Generale, the JSC Progress Bank and Georgian insurance firm Kopenbur. Moreover, it bought the JSC Bank Republic from SocGen and the European Bank for Reconstruction and Development (EBRD) for $141 million. However, despite all of the bank’s business purchases, it still holds adequate funds to extend its loan book. These purchases allowed TBC Bank to become Georgia’s most prosperous banks. In fact, during the beginning six months of the year 2016, the bank’s loan book expanded by 11.4 percent.
These business purchases allowed TBC Bank to become Georgia’s most prosperous banks. In fact, during the initial six months of the year 2016, the bank’s loan book expanded by 11.4 percent.
Various shareholders own the bank. 55 percent of TBC Bank is held by institutional investors and 22 percent is shared between the founders of the Georgian bank. The remaining 13 percent is owned by the EBRD.
Vakhtang Butskhrikidze, TBC’s chief executive claimed that there is no plan to issue shares or allow for capital injections.
The takeover of the two largest banks in Georgia, TBC Bank and the Bank of Georgia, has reduced the competition in the industry. The two banks hold a combined 60 percent of the banking sector.
“Taking into consideration that the Georgian economy is expected to grow faster in 2017-18 than this year, we have a substantial potential for growth,” Butskhrikidze said.
Moreover, the Georgian government predicts a 3 percent growth in 2016 and an increased 4 percent in 2017. This is in comparison to the 2.8 percent growth in 2015.
Additionally, the International Monetary Fund (IMF) anticipates a 3.4 percent growth in 2016 and a 5.2 percent in 2017.