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Georgia-focused lender TBC Bank (LON:TBCG) has successfully boosted its profits during the 1st half of the year by dramatically cutting costs as it positioned itself to benefit from a recovery in Azerbaijan. Management said that the second quarter of 2018 had been very successful and that they would consider launching their digital bank in new markets in the future.
Chief Executive Officer Vakhtang Butskhrikidze commented that: “Our strong performance in the second quarter 2018 was driven by strong growth in operating income. Net interest margin improved to 7.1%, up by 0.3 percentage points year-on-year and 0.2 percentage points quarter-on-quarter. The increase was driven by a rise in yields on local currency loans both on a year-on-year and quarter-on-quarter basis resulting from our increased focus on loan yield management. In addition, the cost of funding decreased by 0.1 percentage points year-on-year, driven by a decrease in the cost of foreign currency deposits, which more than offset the increase of the Libor rate“.
Shares in TBC Bank rose by 2.62% to 1,644p (as of 13:40 BST).