TBC Bank Group Regulatory News (TBCG)

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Further update on COVID-19

Key points:

· Operations successfully adapted to new operating environment

· Georgian economy expected to contract in 2020

· Additional loan loss provisions of 3.0-3.3% of loan book agreed with NBG as of 31 March 2020 (in accordance with local standards)

· Resulting capital adequacy ratios remain well above minimum requirements

· Q1 2020 IFRS consolidated financial results due in mid-May 2020

The measures implemented by TBC Bank Group Plc ("TBC PLC") in the last three weeks have allowed the bank to alter its day-to-day operations in order to adapt to the current unprecedented operating environment, while maintaining the health, safety and well-being of our staff and customers as the number one priority. Today, 95% of our head office and back office staff (including those in our call center) are working from home and our market-leading digital banking platform allows our customers to continue with almost all of their banking transactions from the safety of their own homes.

The global and thus Georgian economic environment is difficult and uncertain. Our economists' latest analysis forecasts the Georgian economy to contract in 2020, which will have a negative impact on many businesses and individuals in the country. Therefore, in close co-ordination with the National Bank of Georgia ("NBG"), we have decided to create an extra loan loss provision buffer to prepare for the potential impact of the COVID-19 pandemic on the Georgian economy. As of 31 March 2020, TBC Bank decided to book additional provisions in accordance with local standards, at 3.0-3.3% of the loan book and resulting in an estimated up to 2.44% decrease in the CET1 capital adequacy ratio.

NBG is implementing countercyclical measures to support financial stability of the banking system and to ensure provision of financial support to sectors of the economy affected by the current turmoil.

In relation to capital adequacy requirements:

− Postponing the phasing in of additional capital requirements planned in March 2020, with an 0.44 pp effect on TBC's CET 1

− Allowing banks to use the conservation buffer (currently at 2.5pp on CET1) and 2/3 of CICR buffer resulted in the release of 1.0-2.0% of capital across our CET1, Tier 1 and Total CAR

− Leaving open the possibility of releasing all pillar 2 buffers (remaining 1/3 CICR, HHI and Net Grape buffers) in the range of 1.0-4.0% of capital across our CET1, Tier 1 and Total CAR

In relation to liquidity requirements, if necessary:

− Decreasing LCR limits

− Decreasing FX mandatory reserve requirements

− Updating criteria for security or repo pledging to support GEL liquidity

As a result of the provision made and also the significant depreciation of the Georgian Lari during the course of March 2020, TBC Bank's CET1, Tier 1 and Total CAR as at 31 March 2020 are estimated at 8.7%, 11.5% and 16.1%, respectively. The final numbers will be published on 30 April 2020. These ratios remain well above the NBG's revised estimated minimum requirements of 7.0%, 8.8% and 13.4%, respectively, which allow for the utilisation of the full conservation buffer and 2/3 of the currency induced credit risk buffer.

Our estimated liquidity coverage ratio of 109% and net stable funding ratio of 125% also remain above the minimum requirements as of 31 March 2020. Only in the last week, TBC Bank has attracted USD 133 million in new borrowings from international financial organisations which has further increased our liquidity.

We are currently in the process of preparing our IFRS financial statements for the first quarter of 2020 and expect to publish them in mid May 2020, in line with previous years. Loan loss provisions are calculated in our IFRS financial statements differently from the methodology used by the NBG. Based on information available to us today, the provision to be set aside as of 31 March 2020 in our IFRS financial statements for the first quarter 2020 is expected to be approximately 2.0% of the loan book.

We are focusing on optimising our cost structure, re-arranging many processes and prioritising expenses, and are targeting TBC Bank's cost to income ratio for the full year ending 31 December 2020 to be broadly that achieved during 2019.

For further enquiries, please contact: Director of International Media and Investor RelationsZoltan Szalai

Or

Head of Investor Relations

Anna Romelashvili

ir@tbcbank.com.ge

About TBC Bank Group PLC ("TBC PLC")

TBC PLC is a public limited company registered in England and Wales that was incorporated in February 2016. TBC PLC became the parent company of JSC TBC Bank ("TBC Bank") on 10 August 2016. TBC PLC is listed on the London Stock Exchange under the symbol TBCG and is a constituent of FTSE 250 Index.

TBC Bank, together with its subsidiaries, is the leading universal banking group in Georgia, with a total market share of 39.5% of loans and 39.0% of non-banking deposits as of 31 December 2019, according to data published by the National Bank of Georgia.

LEI number: 213800T6NS9N2WQ3B328

This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of TBC PLC is Zoltan Szalai.

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