TBC Bank Group (LSE: TBCG) looks like one of the most interesting growth stories on the London market right now. The FTSE 100 is up 45% since May 2021, but TBC has risen 310% over five years – almost seven times faster!
So why does a bank with that kind of growth still fly under the radar?
What makes TBC stand out?
I think the first thing to notice is the pace of growth. TBC currently boasts the strongest revenue growth of all 16 banks on the FTSE 350, with revenue up 16.17% year on year.
Its latest results also showed Q1 2026 profit of £101.1m, up 15% year on year, with return on equity (ROE) at 23.4%. That’s a strong mix for any bank, never mind one in the FTSE 250.
Here’s a quick snapshot of its core numbers:
- Market-cap: $12.57bn
- Dividend yield: 6.56%
- ROE: 23.73%
- Net margin: 36.14%
- Assets: £12.57bn
- Debt: £2.85bn
Those are solid figures, and the dividend looks well covered by earnings. But the story’s not just about the numbers on the page, is it?
Why’s the market cautious?
TBC’s based in Georgia, and that matters. The company warns that developments in Georgia, Uzbekistan, the Russia-Ukraine war, and the wider political and legal environment can all affect results.
That’s a real risk, because investors generally dislike uncertainty, especially when it comes from a volatile region.
Competition’s another issue. Lion Finance (previously Bank of Georgia) is larger and more profitable, but doesn’t offer the same income appeal. So while TBC appears to prioritise shareholders, Lion’s focused on scale and profitability.
Which matters more depends on the kind of investor you are.
A simple way to think about it
For a novice investor, I would frame TBC like this:
- A high-growth bank with a high dividend yield.
- Profitability’s strong, with ROE above 23%.
- The balance sheet’s sizable, but the region adds risk.
- It offers both income and growth appeal (albeit with volatility risk).
Encouragingly, Vakhtang Butskhrikidze, TBC’s chief executive, said in the latest results:
“I am pleased to report a strong start to the year for TBC Group as we continue to generate sustainably high profitability and robust growth.”
That’s a confident message – although markets tend to care just as much about risk as they do about confidence, don’t they?
What should investors do?
In my opinion, TBC looks like one of the most promising up-and-coming banks on the London Stock Exchange. But its geographical location makes it a high-risk/high-reward investment.
Naturally, it doesn’t have the ‘safety’ offered by highly-established names such as Lloyds of HSBC. The ‘Big Four’ banks are understandably favourites among major investment trusts — often considered foundational holdings in UK portfolios.
But their massive size makes their shares prices harder to move, limiting growth potential. That’s where a mid-cap like TBC shines.
For income seekers, the yield’s attractive. For growth investors, the share price momentum’s hard to ignore. That’s why I find it a compelling stock to consider, although only as a sattelite position in a much broader, diversified portfolio.
And it’s just one of several similarly attractive stocks I’ve covered recently, each with their own unique appeal.
