TBC Bank Group Regulatory News (TBCG)

TBC BANK GROUP PLC ("TBC Bank")

4Q AND FY 2023 PRELIMINARY UNAUDITED

CONSOLIDATED FINANCIAL RESULTS

Forward-Looking Statements

This document contains forward-looking statements; such forward-looking statements contain known and unknown risks, uncertainties and other important factors, which may cause the actual results, performance or achievements of TBC Bank Group PLC ("the Bank" or "the Group") to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on numerous assumptions regarding the Bank's present and future business strategies and the environment in which the Bank will operate in the future. Important factors that, in the view of the Bank, could cause actual results to differ materially from those discussed in the forward-looking statements include, among others: the achievement of anticipated levels of profitability; growth, cost and recent acquisitions; the impact of competitive pricing; the ability to obtain the necessary regulatory approvals and licenses; the impact of developments in the Georgian and Uzbek economies; the impact of COVID-19; the political and legal environment; financial risk management; and the impact of general business and global economic conditions.

None of the future projections, expectations, estimates or prospects in this document should be taken as forecasts or promises, nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects are based are accurate or exhaustive or, in the case of the assumptions, entirely covered in the document. These forward-looking statements speak only as of the date they are made, and, subject to compliance with applicable law and regulations, the Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in the document to reflect actual results, changes in assumptions or changes in factors affecting those statements.

Certain financial information contained in this presentation, which is prepared on the basis of the Group's accounting policies applied consistently from year to year, has been extracted from the Group's unaudited management accounts and financial statements. The areas in which the management accounts might differ from the International Financial Reporting Standards and/or generally accepted U.S. accounting principles could be significant; you should consult your own professional advisors and/or conduct your own due diligence for a complete and detailed understanding of such differences and any implications they might have on the relevant financial information contained in this presentation. Some numerical figures included in this report have been subjected to rounding adjustments. Accordingly, the numerical figures shown as totals in certain tables might not be an arithmetic aggregation of the figures that preceded them.

4Q and FY 2023 Consolidated Financial Results Conference Call Details

TBC Bank Group PLC ("TBC PLC") will publish its preliminary unaudited consolidated financial results for the fourth quarter and full year 2023 on Friday, 16 February 2024 at 7.00 AM GMT. On the same day, the management team will host a conference call at 2.00 PM GMT.

To participate in the conference call live video webinar, please register using the following link:

https://www.netroadshow.com/events/login?show=cbfcd3a8&confId=60444

You will receive access details via email.

Contacts

Table of Contents

4Q and FY 2023 Preliminary Unaudited Consolidated Financial Results Announcement

Interim Management Report

Financial Highlights

Operational Highlights

Letter from the Chief Executive Officer

Economic Overview

Unaudited Consolidated Financial Results Overview for 4Q 2023

Preliminary Unaudited Consolidated Financial Results Overview for FY 2023

Additional Disclosures

1) TBC Bank - Background

2) Consolidated Financial Statements and Key Ratios 4Q 2023

3) Consolidated Financial Statements and Key Ratios FY 2023

4) Business Line Definition

5) Financial Disclosures by Business Lines

6) Market shares in Georgia

7) Subsidiaries of TBC Bank Group PLC

8) Replacement of IFRS 4 with IFRS 17

9) Legal and regulatory matters

10)Loan Book Breakdown by Stages According IFRS 9

11)Glossary

12)Ratio Definitions and Exchange Rates

4Q and FY 2023 Preliminary Unaudited Consolidated Financial Results

4Q 2023 profit of GEL 291 million, up by 30% YoY, with ROE at 25.2%.

FY 2023 profit of GEL 1,140 million, up by 14% YoY, with ROE at 26.5%.

European Union Market Abuse Regulation EU 596/2014 requires TBC Bank Group PLC to disclose that this announcement contains Inside Information, as defined in that Regulation.

The financial information contained in this document does not constitute statutory accounts for the years ended 31 December 2023 and 31 December 2022 within the meaning of section 435 of the Companies Act 2006 (the Act), but is derived from those accounts. The statutory accounts for the year ended 31 December 2023 will be published on the Group's website and will be delivered to the Registrar of Companies in accordance with section 441 of the Act. The auditor's report on those accounts is expected to be unqualified. The statutory accounts for the year ended 31 December 2022 have been filed with the Registrar of Companies, and the auditors' report on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not include a statement under sections 498(2) or 498(3) of the Act.

Financial Highlights

Income statement

Balance sheet

Key Ratios

Georgia FS refers to Georgian financial services.

For the ratio definitions please refer to appendix 12.

Operational Highlights

Customer base

Digital customers

Uzbekistan - key highlights

TNET - digital lifestyle platform in Georgia

Letter from the Chief Executive Officer[1]

I am delighted to report that the fourth quarter of 2023 marked another successful quarter for TBC, rounding off what has been an excellent full-year performance. In 4Q, our profit of GEL 291 million was up 30% year-on-year, with 25.2% ROE (or down by 14% year-on-year adjusted for the one-off tax charge in 4Q 2022). For FY 2023, our profit reached a record GEL 1,140 million, a 14% year-on-year increase (or 2% year-on-year on an adjusted basis), with a corresponding ROE of 26.5%.

As a result, I am very pleased to report that the Board has recommended a final dividend per share of GEL 4.67, which brings the full year dividend per share to GEL 7.22, an increase of 32% year-on-year. This represents a dividend payout ratio for 2023 of 35%, up from 30% in 2022. This dividend reflects that as a business we strive to invest in new value accretive growth opportunities whilst also returning capital to our shareholders.

While the geopolitical backdrop has remained difficult, the final quarter brought some very positive news for Georgia, with the EU's decision in mid-December to grant candidate status. Much work remains to be done, but this represents a massive step for Georgia in its long-term aim of closer integration with the EU. All Georgians can be rightly proud to have achieved this recognition.

Economic growth remains robust

On the economic front, 2023 was a year of normalisation in Georgia, with real GDP growth of 7.5% on the back of still strong net FX inflows. The GEL has stabilised and is now more aligned with its long-term trend, while inflation is already undershooting the NBG's target, enabling a gradual easing cycle towards a neutral monetary policy stance. Importantly, substantial international reserves and fiscal buffers have been accumulated, strengthening the economic foundations in case of any unwanted shocks.

Economic activity was also strong in Uzbekistan with 6.5% real GDP growth in the fourth quarter and 6.0% in 2023. Moreover, inflation has slowed to 8.8%, down from 12.3% a year ago. As inflation declines, this may prove supportive for UZS exchange rate dynamics going forward.

Strong financial and operating performance continued in 4Q 2023

Turning to our operating performance, the final quarter saw a continuation of the strong revenue trends we have seen throughout the year. In 4Q 2023, our operating income reached GEL 639 million, up 6% year-on-year, despite the abnormally high FX revenues we received in 4Q 2022. Net interest income rose by 24% year-on-year, supported by net interest margin increasing by 40 bps year-on-year to 6.7% in 4Q 2023. Additionally, net fee and commission income increased by 16% year-on-year. Our costs rose by 27% year-on-year in 4Q 2023 primarily due to robust growth of the business in the final quarter and performance-related remuneration in recognition of the year's strong operating performance.

Our customer base continues to increase, with our digital MAU reaching 5.2 million at the Group level by end 2023, up by 1.4 million customers in the past 12 months. Our DAU/MAU ratio stood at 33% as more of our customers engage with us on a daily basis, while the Georgian business digital DAU/MAU ratio stood at 46%.

Credit growth remains robust. Our Group's gross loan book increased by 21% year-on-year as of 31 December 2023 on a constant currency basis, while our asset quality remained healthy in 4Q 2023, translating into 0.8% cost of risk, up by 20bps year-on-year, with the share of NPLs just 2.0%. On the funding side, our Group's customer deposits increased by 13% year-on-year on a constant currency basis.

Our financial strength in terms of liquidity and capital positions remains very strong. As of 31 December 2023, our CET1, Tier 1 and Total Capital ratios for the Georgian bank stood at 17.4%, 19.6% and 22.1%, respectively, and remained comfortably above the minimum regulatory requirements by 3.1 pp, 3.0 pp and 2.3 pp, respectively. At the same time, we continue to operate with a high liquidity buffer, with our net stable funding (NSFR)2 and liquidity coverage (LCR)2 ratios standing at 120% and 115%, respectively.

Above 25% ROE in Georgia in 2023 combined with dynamic growth in Uzbekistan

As for the core elements of our business, Georgia continues to deliver excellent profitability, with 24.7% ROE in 4Q 2023 and 25.5% for FY 2023. On the balance sheet side, gross loans increased by 19% year-on-year on a constant currency basis.

I am also pleased to announce that our digital financial services businesses in Uzbekistan delivered another quarter of dynamic growth and improving profitability. Profit in 4Q 2023 amounted to GEL 20 million, while the profit for the full year totalled GEL 59 million, or 5% of the Group's total profit, with 26.0% ROE. As of the end of 2023, TBC UZ's retail loans amounted to GEL 797 million, up by 129% year-on-year, giving us an unsecured consumer / micro loan market share[2] of 14%, and accounting for 10% of the Group's total retail loans. At the same time, retail deposits reached GEL 581 million, up by 76% year-on-year, accounting for 3.0% retail deposit market share2.

In 2023, our digital lifestyle ecosystem, TNET, continued to deliver good growth, with GEL 164 million gross merchandise value (GMV) for the full year, up by 59% year-on-year, driven by strong progress in the lifestyle and e-commerce verticals.

Finally, I would like to express my gratitude to all our shareholders for their ongoing support as we work towards achieving our strategic goals in the coming years. We have much to be proud of for our achievements in 2023, but we are already working hard to make 2024 an even more successful year for TBC and its stakeholders.

Economic Overview

Georgia

Economic growth remains robust

Even as growth normalises, Georgia's economic activity remained strong in 4Q 2023 with 6.8% real GDP growth YoY bringing the full year 2023 growth to 7.5%.

External sector - normalisation of inflows

The negative impact of lower international commodity prices on both exports and imports noticeably affected external sector activity in 4Q and full year 2023. Specifically, exports and imports denominated in US dollars decreased by -0.3% and -2.7% YoY in 4Q which caused their growth for the full year to moderate to 9.1% and 14.0%, respectively. Importantly, these commodity price dynamics particularly affected domestic commodity exports, while re-exports performed strongly. At the same time, the notable increase of the share of IT services in Georgian exports continued, with a major driver being the arrival of migrants in 2022.

Given the high base effect caused by elevated immigration in 2022, tourism inflows decreased by 12.6% YoY in 4Q 2023 as migrants are gradually being counted as residents by the NBG and hence being excluded from the tourism sector, while growth for the full year was 17.3%. At the same time, the share of conventional tourism in total inflows has increased recently as spending excluding visitors from Russia, Belarus and Ukraine increased by 38.2% YoY. Therefore, while the migration peak has likely passed, conventional tourism inflows have at least had a balancing impact. Also, despite decreasing notably in 4Q, remittances also maintained a positive momentum throughout the year after adjustment for Russia, increasing by 27.9%[3] YoY. A high base effect combined with a significant decline in debt instruments and lower reinvestments drove a 22.3% annual reduction in FDIs to Georgia in 9M 2023. Neverthless, taking the record high level in 2022 into account, foreign direct investments in 2023 also appear solid. 

Fiscal consolidation under way

It is important to highlight that the strong recent economic growth is not a result of fiscal stimulus. In fact, fiscal consolidation is under way. After hitting 9.2% of GDP in 2020 and a lower, but still large, level of 6.0% in 2021, the budget deficit[4] stood at 3.0% in 2022 and 2.8% in 2023.

Credit growth has accelerated

As of December 2023, bank credit increased by 17.0% YoY, against 14.8% growth at the end of 3Q 2023 and 12.1% in December 2022, at constant exchange rates[5]. At the same time, as inflation remained stably low, the YoY growth in real credit increased from 14.1% in September to 16.5% in December 2023.

Low inflation enables monetary policy easing

As a result of a broadly stable GEL and sustained disinflationary pass-through from international markets, CPI inflation stabilised well below the NBG target of 3%, standing at 0.4% YoY in December. Domestic and service inflation measures also normalised around the target. Due to low inflation, the NBG delivered the year's fourth rate cut of 50 basis points in December, reducing the monetary policy rate (MPR) to 9.5% (and it has since been cut by a further 50 bps to 9.0% in January 2024).

Despite low inflation, a reduced MPR and seasonal depreciation expectations, improved net inflows alongside NBG interventions helped the GEL to remain stable relative to the USD throughout the fourth quarter, after some volatility during the previous quarters, driven by the normalisation of foreign currency inflows. Throughout the year, NBG purchased USD 1,449 million and sold USD 169 million. The USD/GEL stood at 2.69 at the end of December, almost unchanged from 2.68 USD in September 2023 and 2.7 USD at the end of December 2022.

Uzbekistan

Uzbekistan also demonstrated robust economic activity with 6.5%[6] growth in the fourth quarter and 6.0% for the full year 2023. External trade was strong as exports of goods increased by 28.7% and imports by 33.3% YoY in 4Q, and by 25.4% and 26.3%6 for the full year 2023, respectively. Retail loan growth was 47.2% YoY in 2023, with mortgage credit expanding by 25.2% and non-mortgage by 66.0%[7]. Annual inflation decreased slightly from 9.2% in September to 8.8% in December, with a more pronounced deceleration evident when compared to 12.3% in December 20227. The CBU kept its monetary policy rate unchanged at 14.0% in the fourth quarter, delivering only one, 100 basis point rate cut throughout 2023 in March. The UZS stood at 12,339 relative to the USD at the end of December 20237, depreciating by 10% compared to December 2022, while the REER (real effective exchange rate) remained broadly stable.

Economic outlook remains supportive

After two successive years of double-digit growth in Georgia, economic activity moderated somewhat but remained strong in 2023 at 7.5%. Further normalisation is expected with Georgia's real GDP increasing by 5.6% in 2024 and 5.4% in 2025, according to TBC Capital projections, while the baseline for Uzbekistan stands at around 5.5% for the next couple of years.

More information on the Georgian economy and financial sector can be found at www.tbccapital.ge.

Unaudited Consolidated Financial Results Overview for 4Q 2023

This statement provides a summary of the business and financial trends for 4Q 2023 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.

Total assets and total liabilities for 31-Dec-2022 were restated due to replacement of IFRS 4 with IFRS 17. For more details, please refer to appendix 8.

Please note that there might be slight differences in previous periods' figures due to rounding.

Net Interest Income

In 4Q 2023, net interest income amounted to GEL 441.7 million, up by 23.6% and 3.2% on a YoY and QoQ basis, respectively.

The YoY rise in interest income of GEL 165.4 million, or 25.7%, was mostly attributable to an increase in interest income from loans related to a rise in the respective yield by 0.6 pp, as well as an increase in the loan portfolio of GEL 3,868.7 million, or 21.3%.

The QoQ increase in interest income of GEL 56.8 million, or 7.5%, was mainly related to an increase in interest income from loans on the back of growth in the loan portfolio of GEL 1,708.5 million, or 8.4%, as well as slight growth in loan yields by 0.1 pp.

Interest expense increased by GEL 81.2 million, or 28.2%, on a YoY basis, mainly related to an increase in the deposit portfolio of GEL 2,339.0 million, or 13.0%, and a 0.8 pp growth in deposit costs.

On a QoQ basis, interest expense increased by GEL 43.0 million, or 13.2%, primarily driven by an increase in the deposit portfolio of GEL 1,653.1 million, or 8.8%, and a 0.2 pp growth in deposit rates.

In 4Q 2023, our NIM stood at 6.7%, up by 0.4 pp and down by 0.2 pp on a YoY and QoQ basis, respectively.

* Interest expense includes net interest gains from currency swaps

Non-Interest Income

In 4Q 2023, our net fee and commission income increased by 15.5% YoY and increased by 5.7% on a QoQ basis. The YoY increase was mainly related to increased payments transactions. In 4Q 2023, our Uzbek business contributed 19% to the Group's net fee & commission income.

In 4Q 2023, net gains from currency operations were down by 50.8% on a YoY basis, due to abnormally high FX revenues in 4Q 2022, while they increased by 1.9% on a QoQ basis.

Credit Loss Allowance

Credit loss allowance for loans in 4Q 2023 amounted to GEL 40.6 million, while cost of risk stood at 0.8%. The increase in credit loss allowance for loans was mainly driven by strong loan book growth as well as normalisation of CoR.

Operating Expenses

In 4Q 2023, our operating expenses rose by 26.9% and 16.7% on a YoY and QoQ basis, respectively. The YoY increase was mainly driven by overall business growth, while the QoQ increase was related to the seasonally high costs in the fourth quarter of 2023.

For the definition of the Georgian financial services, please refer to appendix 4.

Profit

Our profit increased by 30.2% and decreased by 3.0% on a YoY and QoQ basis, respectively, and amounted to GEL 291.4 million. During the quarter, our Uzbek operations contributed GEL 20.4 million or 7% of the Group's profit.

Income tax expense decreased on a YoY basis, driven by the one-off tax charge in 4Q 2022, due to changes in the Georgian taxation model.

As a result, in 4Q 2023 our ROE stood at 25.2%, while our ROA reached 3.7%.

Funding and Liquidity

As of 31 December 2023, the total liquidity coverage ratio (LCR), as defined by the NBG, was 115.3%, above the 100% limit, while the LCR in GEL and foreign currency (FC) stood at 109.8% and 120.1%, accordingly, above the respective limits of 75% and 100%.

Over the same period, the net stable funding ratio (NSFR), as defined by the NBG, stood at 119.9%, compared to the regulatory limit of 100%.

Regulatory Capital for Georgian Bank

As of 31 December 2023, our capital ratios remained at a strong level and as a result, our CET1, Tier 1 and Total Capital ratios stood at 17.4%, 19.6% and 22.1%, respectively, above the minimum regulatory requirements by 3.1 pp, 3.0 pp and 2.3 pp, accordingly.

The QoQ decreases in all CET1, Tier 1 and Total capital adequacy ratios were largely driven by high portfolio growth and annual operational RWA growth.

Loan Portfolio

As of 31 December 2023, the gross loan portfolio reached GEL 22,073.7 million, up by 8.4% QoQ, or by 7.4% on a constant currency basis.

In 4Q 2023, our Georgian financial services loan portfolio increased by 7.8% on a QoQ basis and reached GEL 21,257.7 million, with 6.8% growth on a constant currency basis. Over the same period, our Uzbek portfolio increased by 26.1% and stood at GEL 796.9 million, which translated into growth of 27.3% on a constant currency basis.

* Georgian FS includes sub-segment eliminations** Total gross loans and advances to customers include Azerbaijan loan portfolio

* Total loans yields include Azerbaijan

Loan Portfolio Quality

Our PAR 90 to gross loans ratios improved for both our Georgian and Uzbekistan in 4Q 2023. The decrease in PAR ratio was mainly driven by an overall improvement in portfolio quality. Over the same period, our NPL ratio remained stable.

* Georgian FS includes sub-segment eliminations ** Total PAR 90 includes Azerbaijan

* Georgian FS includes sub-segment eliminations ** Total non-performing loans include Azerbaijan NPLs

* Georgian FS includes sub-segment eliminations ** Total NPL to gross loans include Azerbaijan NPLs

* Georgian FS includes sub-segment eliminations ** Total NPL coverage include Azerbaijan loans coverage ** Total NPL coverage ratio includes provision and collateral coverage

Cost of Risk

Given strong asset quality trends, in 4Q 2023 our cost of risk (CoR) remained within the expected range and stood at 0.8%.

In 4Q 2023, due to strong asset quality dynamics, the CoR for our Georgia FS remained broadly stable on both a YoY and QoQ basis and amounted to 0.6%. Over the same period, CoR for our Uzbek business decreased by 2.7 pp and 2.4 pp on YoY and QoQ basis, respectively and amounted to 4.9%. The decrease in Uzbekistan was mainly driven by improved portfolio quality.

* Georgian FS includes sub-segment eliminations ** Total cost of risk includes Azerbaijan CoR

Deposit Portfolio

As of the end of December 2023, the total deposit portfolio amounted to GEL 20,375.5 million, up by 8.8% QoQ or by 8.2% on a constant currency basis.

In 4Q 2023, the Georgian financial services deposit portfolio increased by 8.7% on a QoQ basis and reached GEL 19,900.3 million, up by 8.1% on a constant currency basis. Over the same period, our Uzbek deposit portfolio increased by 12.8% and stood at GEL 581.5 million, which translated into growth of 13.9% on a constant currency basis.

* Georgian FS includes sub-segment eliminations ** Total customer accounts are adjusted for eliminations

* Total deposits rates include MOF deposits

Preliminary Unaudited Consolidated Financial Results Overview for FY 2023

This statement provides a summary of the business and financial trends for FY 2023 for TBC Bank Group plc and its subsidiaries. The financial information and trends are unaudited.

Total assets and total liabilities for 31-Dec-2022 were restated due to replacement of IFRS 4 with IFRS 17. For more details, please refer to appendix 8.

Please also note that there might be slight differences in previous periods' figures due to rounding.

Net Interest Income

In FY 2023, net interest income amounted to GEL 1,635.8 million, up by 26.8% on a YoY basis.

The YoY rise in interest income by GEL 617.2 million, or 26.5%, was mostly attributable to an increase in interest income from loans related to a GEL 3,868.7 million, or 21.3%, increase in the respective portfolio, as well as a 1.0 pp rise in the respective yield.

YoY interest expense increased by GEL 271.5 million, or 26.1%, mainly related to an increase in the deposit portfolio of GEL 2,339.0 million, or 13.0%, and a 1.1 pp growth in deposit cost.

In FY 2023, our NIM stood at 6.7%, up by 0.7 pp on a YoY basis.

* Interest expense includes net interest gains from currency swaps

Non-Interest Income

Total non-interest income amounted to GEL 737.7 million in FY 2023, decreasing by 5.5% YoY, primarily due to a normalisation of FX revenues, offset by significant growth in fee and commission income.

In 2023 our net fee and commission income increased by 27.8% on a YoY basis, related to increased payments transactions in both Georgia and Uzbekistan. Our Uzbek business contributed 18% of the Group's net fee and commission income.

Credit Loss Allowance

Credit loss allowance for loans in FY 2023 amounted to GEL 162.7 million, which translated into 0.8% cost of risk. The increase in credit loss allowance for loans was mainly driven by strong loan book growth as well as normalisation of CoR.

Operating Expenses

In FY 2023, our operating expenses rose by 24.2% on a YoY basis. This growth was mainly driven by overall business growth, both in Georgia and Uzbekistan.

Profit

In FY 2023, we delivered strong profitability and generated GEL 1,140.0 million in profit, up by 13.6% YoY, driven by strong core revenue growth and asset quality trends. Our Uzbek operations contributed GEL 59.3 million or 5% of the Group's 2023 profit.

 The YoY decrease in income tax expense is mainly driven by a one-off tax charge in 2022, due to changes in the Georgian taxation model.

As a result, our ROE and ROA for full year 2023 were 26.5% and 3.9%, respectively.

Loan Portfolio

As of 31 December 2023, the gross loan portfolio reached GEL 22,073.7 million, up by 21.3% YoY or 21.2% on a constant currency basis.

By the end of December 2023, the Georgian financial services' loan portfolio increased by 19.2% on a YoY basis and reached GEL 21,257.7 million, with 18.6% growth on a constant currency basis. Over the same period, our Uzbek loan portfolio more than doubled, reaching GEL 796.9 million.

* Georgian FS includes sub-segment eliminations** Total gross loans and advances to customers include Azerbaijan loan portfolio

* Total loans yields include Azerbaijan

Loan Portfolio Quality

As of 31 December 2023, our asset quality metrics remained strong with NPL to gross loans at 2.0%, driven by strong portfolio performance in both Georgia and Uzbekistan. Over the same period our PAR 90 remained broadly stable for both Georgia and Uzbekistan.

* Georgian FS includes sub-segment eliminations ** Total PAR 90 includes Azerbaijan

* Georgian FS includes sub-segment eliminations ** Total non-performing loans include Azerbaijan NPLs

* Georgian FS includes sub-segment eliminations ** Total NPL to gross loans include Azerbaijan NPLs

* Georgian FS includes sub-segment eliminations ** Total NPL coverage include Azerbaijan loans coverage *** Total NPL coverage ratio includes provision and collateral coverage

Cost of Risk

In FY 2023, our cost of risk (CoR) was within the expected range at 0.8%.

The CoR for our Georgian financial services remained stable YoY and stood at 0.7%, while CoR for our Uzbek business amounted to 6.0%, down by 0.8 pp on YoY basis, driven by improved portfolio quality.

* Georgian FS includes sub-segment eliminations ** Total cost of risk includes Azerbaijan CoR

Deposit Portfolio

The total deposit portfolio amounted to GEL 20,375.5 million as of end 2023, increasing by 13.0% YoY or 13.2% on a constant currency basis.

As of 31 December 2023, the Georgian financial services' portfolio increased by 11.8% on a YoY basis to GEL 19,900.3 million, with 11.7% growth on a constant currency basis. Over the same period, our Uzbek portfolio almost doubled and stood at GEL 581.5 million.

* Georgian FS includes sub-segment eliminations ** Total customer accounts are adjusted for eliminations