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TBC Shares Rise on Strong Results and Board Restructuring Announcements

5c705b49aa0dd
BM.GE
23.02.19 00:07
719

On February 22, the value of TBC Bank Group’s Shares has risen by 4.11% on London Stock Exchange. This follows yesterday’s 9.5% increase which was the biggest one-day gain on TBC shares since the IPO in 2016. Currently the price of one share is at £14.70.

TBC Bank Group PLC on Thursday reported a sharp rise in annual profit, driven by a rise in income. For 2018, the FTSE 250-listed Georgian bank reported a 29% increase in pretax profit to GEL510.2 million, about GBP147 million, from GEL394.7, about GBP113 million. net profit amounted to GEL 454.9 million, 23% increase from 2017. 

Bank has issued an official statement, that founders of TBC Badri Japaridze and Mamuka Khazaradze are stepping down from their positions at TBC Bank. TBC also announced an update to the National Bank of Georgia's inspection into TBC, saying it has withdrawn its appeal, will revise its supervisory board and pay a GEL1.1 million fine. 

For more than a month the value of TBC’s stocks were decreasing due to the ongoing investigation and money laundering accusations for TBC founders Mamuka Khazaradze and Badri Japaridze. 

The National Bank of Georgia was conducting an inspection of TBC Bank JSC over "certain transactions" in 2007 and 2008. With the regulator claiming these transactions, which the regulator believes are related to the chairman and deputy chairman of TBC, did not comply with relevant Georgian law concerning conflicts of interest. 

TBC appealed the decision but has since decided to withdraw the appeal. 

TBC said: "Since TBC Bank takes into account the possible damage to the country's investment image and respects the role of the National Bank, as a qualified regulator, and despite the fact that the decisions of the National Bank was appealed in the court, JSC TBC Bank would like to announce that it will implement a restructuring of its supervisory board whereby the founding shareholders will not be represented at the supervisory Board of JSC TBC Bank." 

The lender said its chair and deputy chair will remain in their positions on the board of TBC, which is a 100% shareholder of JSC TBC Bank. 

The National Bank of Georgia welcomed the decision from Khazaradze and Japaridze saying it will have a "positive effect on the transparency of TBC and will increase investor confidence, which will ultimately have a positive effect on the development of TBC and the country's financial sector".