Bank of Georgia Group (BGEO)

Sector:

Banking

Index:

FTSE Small Cap

1,546.00p
   
  • Change Today:
    -30.00p
  • 52 Week High: 1,670.00p
  • 52 Week Low: 951.00p
  • Currency: UK Pounds
  • Shares Issued: 49.14m
  • Volume: 66,538
  • Market Cap: £759.66m
  • RiskGrade: 206
  • Beta: 0.01

Second quarter strength underpins Bank of Georgia's first half

By Josh White

Date: Tuesday 17 Aug 2021

LONDON (ShareCast) - (Sharecast News) - Bank of Georgia reported "outstanding" quarterly performance in its half-year results on Tuesday, which it put down to the rebound in economic activity.
The London-listed company said it generated "strong" operating income before cost of risk of GEL 208.9m (£49.03m) in the second quarter - up 55.2% year-on-year - and GEL 405.3m in the first half - up 33.6%.

It described profitability as "robust", with return on average equity coming in at 29.4% in the second quarter and 25.6% for the six month period ended 30 June.

The company's net interest margin stood flat year-on-year at 4.6% in the first half, while net fee and commission income rose 45.0% over the prior year, on the back strong fee and commission income generation in settlement operations following a "significant" rebound in economic activity during the second quarter, and an increase in fees generated from guarantees and letters of credit issued by the corporate and investment banking business.

Its loan book was up 17.4% year-on-year at period end, with growth on a constant-currency basis coming in at 13.7%.

Client deposits and notes were ahead 20.4%, or 17.4% at constant exchange rates, with that growth reflecting a "consistent stability" in deposit balances of both the bank's individual and business customers, the board said.

The cost of credit risk ratio was 0.1% in the first half, improving from 3.5% a year earlier and swinging to a small net gain in the second quarter.

Bank of Georgia said it was in a "strong" capital adequacy position, having confirmed to the National Bank of Georgia that it was no longer using, or expected to use, any of the Pillar 2 or conservation buffers that were waived last year.

As a result, there was no longer any regulatory restriction on the company making any capital distributions.

The bank said its capital adequacy ratios continued to be "robust", and "comfortably above" the minimum regulatory requirements.

As at 30 June, its Basel III Common Equity Tier 1, Tier 1 and total capital adequacy ratios stood at 12.5%, 14.4% and 19.1%, respectively, all well above the minimum required levels of 11.1%, 13.4% and 17.7%.

At the end of the first half, after successfully deploying some excess liquidity during the second quarter, the company said its liquidity coverage ratio was 124.5%, and its net stable funding ratio 136.8%, still "comfortably above" the 100% minimum required level.

The firm said it was continuing to maintain excess liquidity at that level, primarily for risk mitigation purposes on the back of the ongoing Covid-19 pandemic pressures.

"Considering Georgia's recent strong economic recovery, we have revised our expectations for full year 2021 economic growth upwards to 8.6%," said chief executive officer Archil Gachechiladze.

"Challenges remain, however, including political uncertainty, high inflation, which we believe is temporary, and the epidemiological situation, which we hope will improve as the vaccination rate picks up given the government's plan to vaccinate around 60% of the adult population by the end of year."

Gachechiladze said the bank did not expect further broad lockdown measures.

"Given the improving operating environment, the strength of our franchise and the capabilities we have put in place, we expect to maintain our recent business momentum going forward."

At 0825 BST, shares in Bank of Georgia Group were up 0.13% at 1,526p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BGEO Market Data

Currency UK Pounds
Share Price 1,546.00p
Change Today -30.00p
% Change -1.90 %
52 Week High 1,670.00p
52 Week Low 951.00p
Volume 66,538
Shares Issued 49.14m
Market Cap £759.66m
Beta 0.01
RiskGrade 206

BGEO Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
99.23% above the market average99.23% above the market average99.23% above the market average99.23% above the market average99.23% above the market average
76.47% above the sector average76.47% above the sector average76.47% above the sector average76.47% above the sector average76.47% above the sector average
Price Trend
39.31% above the market average39.31% above the market average39.31% above the market average39.31% above the market average39.31% above the market average
22.22% below the sector average22.22% below the sector average22.22% below the sector average22.22% below the sector average22.22% below the sector average
Income
79.29% above the market average79.29% above the market average79.29% above the market average79.29% above the market average79.29% above the market average
71.43% above the sector average71.43% above the sector average71.43% above the sector average71.43% above the sector average71.43% above the sector average
Growth
83.98% below the market average83.98% below the market average83.98% below the market average83.98% below the market average83.98% below the market average
66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average

What The Brokers Say

Strong Buy 8
Buy 0
Neutral 1
Sell 0
Strong Sell 0
Total 9
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BGEO Dividends

  Latest Previous
  Interim Final
Ex-Div 21-Oct-21 30-May-19
Paid 05-Nov-21 28-Jun-19
Amount 34.00p 72.16p

Trades for 18-Jan-2022

Time Volume / Share Price
16:35 4,971 @ 1,546.00p
16:29 2 @ 1,540.00p
16:29 2 @ 1,540.00p
16:29 1 @ 1,540.00p
16:29 3 @ 1,540.00p

BGEO Key Personnel

CEO Archil Gachechiladze

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