Terabank Closes 2017 with Outstanding Results

Terabank has published its main financial indicators for the year 2017, demonstrating it was successful for the whole bank, which achieved all important milestones in every business line.

Terabank’s total outstanding loan increased in 2017 by 22% to reach GEL 105.4 million. Growth could be seen in all strategic segments, with Loans to Micro and Small and Medium Businesses (SMEs) up by GEL 76 million (49%), the total amount of retail loans up by GEL 30 million (25%), and the growth of retail deposits reaching GEL 61 million (42%). Terabank’s net profit totaled GEL 16.3 million with the ROE at 16%.

“Despite the high competition surrounding the SME segment, Terabank’s loan portfolio in this direction has increased by almost 50%,” said Thea Lortkipanidze, Terabank’s CEO. “This means that Terabank has firmly established its place as a reliable and trustworthy financial partner for businesses. The increase of retail deposits by 42% is also very important for us as it confirms a high trust in Terabank.”

2017 also proved to be successful for Terabank in terms of international cooperation. The bank attracted long-term credit resources from the Netherlands Development Finance Company (FMO), which allocated GEL 31 million for the purpose of supporting the development of SME businesses and promoting women’s involvement in the business sector in Georgia. Women’s involvement in business constitutes a very important direction for Terabank and it has said it plans to offer new services and products to women, in cooperation with the FMO.

“After the rebranding process, 2017 was the year we introduced our new name and opened new branches for our customers. The year was successful for us in terms of all of our assessment indicators. This confirms once again the fact that our customers were pleased with our changes,” Lortkipanidze added.

Also in 2017, Terabank made an important step forward in terms of remote service development and introduced its customers to a completely updated and user-friendly internet banking platform. Simultaneously, the bank improved its physical presence in regional parts of Georgia by opening two branches in Batumi and one branch in Zugdidi. The new concept for the branches, entitled “Financial Home,” was actively introduced throughout the year and in 2018, all the bank’s branches will be renewed in line with the new concept.

Considering this favorable economic environment, Terabank is said to be expecting more significant and important growth in the current year. Work in the area of business loans is ongoing and deepening the non-credit relationships with bank customers, and the offering of additional services, is also planned. Taking into account modern trends, Terabank says it is focusing on the development of remote channels and the introduction of new technologies.

Eighteen years have passed since Terabank emerged on the Georgian market; however, it has only been operating under the name Terabank since its rebranding in 2016. The main shareholder is H.H. Sheikh Nahayan Mabarak Al Nahayan, who has invested $250 million in Georgia’s banking and hotel industries. As Sheikh Al Nahayan stated at the Tbilisi Belt and Road Forum, there are “all conditions for doing business in Georgia.” He says he intends to double investments over the next two years.