Traders searching for financial institution shares to purchase may wish to look previous the FTSE 100 and see what the FTSE 250 has to supply. Over the previous 5 years, TBC Financial institution (LSE:TBCG) has delivered returns above these of Lloyds, Barclays and different blue-chip banking shares.
TBC — which presents providers in Georgia and Uzbekistan — has soared 291% in worth over the interval. Lloyds, by comparability, has seen its share worth improve 171%, whereas Barclays has printed a 209% improve. Even fellow rising markets specialist HSBC has risen a extra modest (if nonetheless very respectable) 204%.
TBC’s share worth rose to the highest of the FTSE 250 leaderboard too after releasing good buying and selling numbers for 2025. At £44.85 per share, it was final 4% increased on Friday (20 February).
The query is, can the Georgian financial institution proceed its beautiful ascent?
Picture supply: Getty Pictures
Robust numbers
A mix of fast financial development and low product penetration is supercharging income at TBC, as at this time’s replace once more confirmed. Internet curiosity earnings leapt 23.3% in 2025, when gross loans elevated 12.8% and buyer deposits leapt 12.3%.
Elsewhere, month-to-month lively clients rose 7% over the 12 months to 7.9m. This was helped by the financial institution’s ongoing funding in digital banking and synthetic intelligence (AI) instruments.
This glorious efficiency pushed TBC’s pre-tax income 8.4% increased in 2025. And encouragingly for 2026, buying and selling picked up momentum in direction of the top of final 12 months. Its mortgage e book rose 6% quarter-on-quarter throughout This autumn, driving pre-tax revenue 12.3% increased from Q3 (and 21.7% from the identical 2024 quarter).
Development story continues
Metropolis analysts count on TBC’s earnings to maintain on rising — development of 10% and 14% are predicted for 2026 and 2027, respectively.
This implies the corporate trades on a ahead price-to-earnings (P/E) ratio of 5.4 instances. And its price-to-earnings development (PEG) ratio is 0.6, nicely beneath the worth watermark of 1.
To place that into perspective, Lloyds shares commerce on a ahead P/E ratio of 10.4 instances. And whereas additionally an trade chief, the Black Horse Financial institution has a lot weaker development potential than TBC, given the extreme competitors it faces and the mature market wherein it operates.
At these costs, I believe the FTSE 250 firm is price a really shut look.
A no brainer purchase?
So is the inventory an apparent purchase for traders? I wouldn’t essentially say that. TBC operates in a politically delicate a part of the world, and future authorities coverage may have important implications for earnings. Georgia stays in a long-running tug of struggle between politicians searching for nearer alignment with Russia and people favouring the EU.
Nonetheless, my view is that this menace’s greater than baked into the financial institution’s rock-bottom valuation. If it continues to pump out spectacular buying and selling numbers, I believe a budget score may assist TBC take pleasure in extra beautiful share worth positive factors. It’s a prime inventory to think about, for my part.
