A recent amendment to the Georgian tax code will affect TBC Bank Group PLC's deferred tax liability, resulting in an estimated expense on its profit and loss statement and a reduction in equity in the second quarter.

Effective June 12, the tax structure postpones tax relief for financial institutions with respect to reinvested profit from Jan. 1, 2019, to Jan. 1, 2023.

Because of the amendment, the Georgian bank will reverse its 2016 one-off deferred tax gain, resulting in an estimated expense of 14 million Georgian lari to 19 million lari on its profit and loss statement and an estimated reduction in equity of 5 million lari in the second quarter.

As of June 15, US$1 was equivalent to 2.46 Georgian lari.