Company Announcements

1st Quarter Results

Source: RNS
RNS Number : 8894Y
Bank of Georgia Group PLC
14 May 2019
 

 

 

 

 

Bank of Georgia

Group PLC

1st quarter 2019 results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of authorised official of issuer responsible for making notification:

Natia Kalandarishvili, Head of Investor Relations and Funding

 

 

www.bankofgeorgiagroup.com

 

 

ABOUT BANK OF GEORGIA GROUP PLC

The Group: Bank of Georgia Group PLC ("Bank of Georgia Group" or the "Group" - LSE: BGEO LN) is a UK incorporated holding company, the new parent company of BGEO Group PLC. The Group combined a Banking Business and an Investment Business prior to the Group demerger on 29 May 2018, which resulted in the Investment Business's separation from the Group effective from 29 May 2018.

 

The Group comprises: a) retail banking and payment services and b) corporate investment banking and wealth management operations in Georgia, and c) banking operations in Belarus ("BNB"). JSC Bank of Georgia ("Bank of Georgia", "BOG" or the "Bank"), the leading universal bank in Georgia, is the core entity of the Group. The Group targets to benefit from superior growth of the Georgian economy through both its retail banking and corporate investment banking services and aims to deliver on its strategy, which is based on at least 20% ROAE and 15-20% growth of its loan book.

 

 

1Q19 RESULTS AND CONFERENCE CALL DETAILS

 

Bank of Georgia Group PLC announces the Group's first quarter 2019 consolidated results. Unless otherwise noted, numbers in this announcement are for 1Q19 and comparisons are with 1Q18. The results are based on International Financial Reporting Standards ("IFRS") as adopted by the European Union, are unaudited and derived from management accounts. This results announcement is also available on the Group's website at www.bankofgeorgiagroup.com.

An investor/analyst conference call, organised by the Bank of Georgia Group, will be held on, 14 May 2019, at 14:00 UK / 15:00 CET / 09:00 U.S Eastern Time. The duration of the call will be 60 minutes and will consist of a 15-minute update and a 45-minute Q&A session.

 

Dial-in numbers:

 

Pass code for replays/Conference ID: 3266299

International Dial-in: +44 (0) 2071 928000

UK: 08445718892

US: 16315107495

Austria: 019286559

Belgium: 024009874

Czech Republic: 228881424

Denmark: 32728042

Finland: 0942450806

France: 0176700794

Germany: 06924437351

Hungary: 0614088064

Ireland: 014319615

Italy: 0687502026

Luxembourg: 27860515

Netherlands: 0207143545

Norway: 23960264

Spain: 914146280

Sweden: 0850692180

Switzerland: 0315800059

30-Day replay:

 

Pass code for replays / Conference ID: 3266299

International Dial in: +44 (0) 3333009785

UK National Dial In: 08717000471

UK Local Dial In: 08445718951

USA Free Call Dial In: 1 (866) 331-1332

 

 

 

 

 

 

 

 

 

CONTENTS

 

 

4

1Q19 results highlights

 

 

6

Chief Executive Officer's statement

 

 

8

Discussion of results

 

 

12

Discussion of segment results

12

Retail Banking

16

Corporate Investment Banking

 

 

19

Selected financial and operating information

 

 

23

Glossary

 

 

24

Company information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FORWARD LOOKING STATEMENTS

 

This announcement contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Bank of Georgia Group PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are beyond our control, include, among other things: currency fluctuations, including depreciation of the Georgian Lari, and macroeconomic risk; regional tensions and instability; loan portfolio quality; regulatory risk; liquidity risk; operational risk, cyber security, information systems and financial crime risk; and other key factors that indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and reports of the Group, including the 'Principal Risks and Uncertainties' included in Bank of Georgia Group PLC's Annual Report and Accounts 2018. No part of this document constitutes, or shall be taken to constitute, an invitation or inducement to invest in Bank of Georgia Group PLC or any other entity within the Group, and must not be relied upon in any way in connection with any investment decision. Bank of Georgia Group PLC and other entities within the Group undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this document should be construed as a profit forecast.

HIGHLIGHTS1

Strong profitability and balance sheet growth, supported by outstanding capital and liquidity positions

GEL thousands, except per share information

Change

Banking Business  Income Statement Highlights2

 

 

 

 

 

182,941

180,249

1.5%

187,438

-2.4%

42,180

34,511

22.2%

41,344

2.0%

30,025

14,253

110.7%

53,358

-43.7%

3,568

5,744

-37.9%

(9,073)

NMF

Operating income 

258,714

234,757

10.2%

273,067

-5.3%

Operating expenses 

(91,927)

(87,379)

5.2%

(100,857)

-8.9%

188

318

-40.9%

318

-40.9%

Operating profit before cost of risk 

166,975

147,696

13.1%

172,528

-3.2%

(42,652)

(33,813)

26.1%

(40,778)

4.6%

Net operating profit before non-recurring items and income tax

124,323

113,883

9.2%

131,750

-5.6%

(1,575)

(2,948)

-46.6%

(2,185)

-27.9%

Profit before income tax expense and one-off termination costs

122,748

110,935

10.6%

129,565

-5.3%

(10,536)

(9,283)

13.5%

(10,888)

-3.2%

Profit adjusted for one-off termination costs

112,212

101,652

10.4%

118,677

-5.4%

(10, 240)

-

NMF

(3,861)

NMF

Profit

101,972

101,652

0.3%

114,816

-11.2%

 

 

 

GEL thousands, except per share information

Change

Banking Business  Balance Sheet Highlights

 

 

 

 

 

4,502,390

4,514,326

-0.3%

4,540,032

-0.8%

     Cash and cash equivalents

1,162,168

1,754,920

-33.8%

1,215,799

-4.4%

     Amounts due from credit institutions

1,391,630

955,175

45.7%

1,305,216

6.6%

     Investment securities

1,948,592

1,804,231

8.0%

2,019,017

-3.5%

9,570,691

7,819,773

22.4%

9,397,747

1.8%

349,728

324,810

7.7%

344,059

1.6%

Total assets

15,054,570

13,194,528

14.1%

14,798,303

1.7%

8,393,861

7,296,110

15.0%

8,133,853

3.2%

2,463,408

2,642,427

-6.8%

2,994,879

-17.7%

     Borrowings from DFI

1,309,976

1,191,605

9.9%

1,302,679

0.6%

     Short-term loans from NBG

585,797

729,244

-19.7%

1,118,957

-47.6%

     Loans and deposits from commercial banks

567,635

721,578

-21.3%

573,243

-1.0%

2,045,428

1,569,404

30.3%

1,730,414

18.2%

Total liabilities

13,135,789

11,597,058

13.3%

13,000,030

1.0%

Total equity

1,918,781

1,597,470

20.1%

1,798,273

6.7%

 

 

 

Banking Business  Key Ratios

 

 

 

 

 

 

 

 

3.1%

3.2%

 

3.3%

 

24.5%

26.2%

 

27.0%

 

5.8%

7.0%

 

6.0%

 

12.2%

13.9%

 

12.8%

 

4.8%

4.8%

 

5.0%

 

35.5%

37.2%

 

36.9%

 

3.3%

3.5%

 

3.3%

 

92.2%

101.2%

 

90.5%

 

132.6%

143.2%

 

129.9%

 

1.7%

1.8%

 

1.1%

 

12.7%

12.4%

 

12.2%

 

17.1%

17.3%

 

16.6%

 

 

 

 

 

 

 

 

 

 

 

 

1 On 29 May 2018, the demerger of Bank of Georgia Group PLC's Investment Business to Georgia Capital PLC became effective. The results of operations of the Investment Business prior to demerger, as well as the gain recorded by the Group as a result of the Investment Business distribution are classified under the "discontinued operations". The Group, Banking Business and Discontinued Operations detailed financials, including inter-business eliminations are provided on pages 19 and 20

2 The income statement adjusted profit excludes GEL 10.2mln in 1Q19 (4Q18: GEL 3.9mln) one-off employee costs (net of income tax) related to former CEO and executive management termination benefits. The amount is comprised of GEL 4.0mln (gross of income tax) excluded from non-recurring items (4Q18: GEL 4.4mln) and GEL 7.8mln (gross of income tax) excluded from salaries and other employee benefits. 1Q19 and 4Q18 ROAE and ROAA have been adjusted accordingly. Full IFRS income statement is presented on page 19. Management believes that one-off employee termination costs do not relate to underlying performance of the Group, and hence, adjusted results provide the best representation of the Group's performance

3 Throughout this announcement, the gross loans to customers and respective allowance for impairment are presented net of expected credit loss (ECL) on contractually accrued interest income. These do not have an effect on the net loans to customers balance. Management believes that netted-off balances provide the best representation of the Group's loan portfolio position

4 1Q19 cost/income ratio adjusted for GEL 7.8mln one-off employee costs (gross of income tax) related to termination benefits of the former executive management
 

KEY RESULTS HIGHLIGHTS

§ Strong quarterly performance. Profit adjusted for one-off termination costs of the former CEO and executive management totalled GEL 112.2mln in 1Q19, with profitability remaining high at 24.5%5 ROAE

§ Solid Asset quality. NPLs to gross loans ratio was 3.3% at 31 March 2019, while the NPL coverage ratio was 92.2% and the NPL coverage ratio adjusted for discounted value of collateral increased to 132.6%. The cost of credit risk ratio stood at 1.7% in 1Q19, down 10bps y-o-y and up 60bps q-o-q. The q-o-q increase reflected normal seasonality, as well as recent regulatory changes on unsecured consumer lending

§ Loan book growth was 22.4% y-o-y and 1.8% q-o-q at 31 March 2019. Growth on a constant-currency basis was 14.7% y-o-y and 1.5% q-o-q. Retail Banking loan book share in the total loan portfolio was 70.0% at 31 March 2019 (69.5% at 31 March 2018 and 69.8% at 31 December 2018)

§ Strong capital position. Basel III Tier 1 and Total Capital Adequacy ratios stood at 12.7% and 17.1%, respectively, as of 31 March 2019, both above the minimum required level of 11.6% and 16.1%, respectively. Common Equity Tier 1 (CET1) ratio stood at 12.7%, compared to a 9.6% minimum requirement at 31 March 2019 and already above the estimated fully-loaded Basel III CET1 requirement for 2021

§ In 1Q19, JSC Bank of Georgia issued an inaugural US$100 million 11.125% Additional Tier 1 Capital Perpetual Subordinated Notes. Regulatory approval on the classification of these securities as Additional Tier 1 instruments was received in April 2019, therefore, the AT1 instruments were not reflected in the capital ratios reported as of 31 March 2019. This issuance has added approximately 230 basis points to the Bank's Tier 1 capital ratio, which is also now above the estimated fully-loaded Basel III Tier 1 capital requirement for 2021

§ Retail Banking ("RB") continued to deliver solid growth. RB's operating income reached GEL 178.8mln in 1Q19, up 5.8% y-o-y and down 5.1% q-o-q. The Retail Banking net loan book reached GEL 6,389.6mln at 31 March 2019, up 23.2% y-o-y and up 2.0% q-o-q. The growth was predominantly driven by mortgage and micro and SME lending. At the same time, the RB client deposits increased to GEL 4,520.5mln at 31 March 2019, up 36.8% y-o-y and 4.2% q-o-q

§ Corporate Investment Banking ("CIB") demonstrated strong growth in 1Q19, generating solid net interest income and net fee and commission income during the period, coupled with operating efficiencies and improved asset quality. CIB's net loan book reached GEL 2,652.8mln at 31 March 2019, up 19.4% y-o-y and up 1.3% q-o-q. The growth on a constant-currency basis was 9.2% y-o-y and 0.8% q-o-q. The top 10 CIB client concentration was 9.1% at the end of 1Q19 (10.3% at 31 March 2018 and 9.8% at 31 December 2018)

§ Assets Under Management ("AUM") within the Group's Investment Management business, increased to GEL 2,371.0mln in 1Q19, up 29.1% y-o-y and up 4.4% q-o-q, reflecting an increase in client assets and bond issuances at Galt & Taggart, our brokerage subsidiary

§ De-dollarisation of the loan book and client deposits. Loan book in local currency accounted for 39.3% of the total book at 31 March 2019 (41.2% a year ago and 38.3% in the previous quarter). Client deposits in local currency represented 32.9% of the total deposit portfolio at 31 March 2019 (33.8% a year ago and 32.5% in previous quarter)

§ Remote channels. We have actively continued the further development of our digital strategy:

§ The Bank continued introducing new features to both our mobile banking application and our internet bank and introducing dedicated digital spaces in our branches to increase client penetration and incentivise offloading client activity to digital channels. As a result, the number of active internet and mobile banking users in 1Q19 reached 277,960 (up 16.5% y-o-y) and 382,152 (up 84.2% y-o-y), respectively. Both the number and volume of transactions through our mobile and internet banking continued to expand in 1Q19. In total, c.82% of daily banking transactions were executed through remote channels during first quarter of 2019

§ In 1Q19, the Bank released a brand new business internet banking platform (Business iBank) for MSME and corporate clients, which comes with many features designed to make its use an intuitive and smooth experience. We focused our efforts on making the Business iBank even more useful for business transactions, accounting, payments, money transfers, administration, which should further incentivise offloading client activity to digital channels

§ In 1Q19, the Group launched a cutting-edge full-service real estate digital platform that is unique in doing business in the Georgian real estate market. The platform offers a single space for the more convenient, timely and efficient interaction and information exchange to all stakeholders involved in buying, selling, renting, developing real estate in Georgia. We believe it is the most up-to-date, comprehensive and reliable offering in the Georgian real estate market and is the first platform to be fully integrated with the Bank to provide its users a "one-click" live credit limit appraisal and mortgage application experience. The Group aims to boost its mortgage portfolio by gaining access to and serving a new clientèle, and simultaneously offering value-added services to real estate developers and agencies

 

5 1Q19 ROAE adjusted for GEL 10.2mln one-off employee costs (net of income tax) related to termination benefits of the former CEO and executive management

CHIEF EXECUTIVE OFFICER'S STATEMENT

 

 

In the first quarter of 2019, the Group delivered another period of good balance sheet and fee income growth, in the seasonally quiet first quarter of the year, combined with continued superior profitability. In addition, we have continued to build our fully integrated digital capacity; we improved our already strong capital position with the issuance of US$100 million Additional Tier 1 capital, and announced the strengthening of our executive management team. At the same time, the Bank has adopted a significant tranche of local regulatory changes and the Georgian economy has continued to achieve strong macro-economic growth. 

Net profit for the quarter totalled GEL 102.0 million, despite the impact of GEL 10.2 million of one-off employee costs (net of income tax) related to termination benefits of former CEO and executive management members. Adjusting for these costs, net profit increased by 10.4% y-o-y to GEL 112.2 million, and the return on average equity was 24.5%. During the quarter, the Group delivered operating income of GEL 258.7 million, up 10.2% year-on-year, reflecting both customer lending growth and particularly strong levels of fee and commission income. Customer lending increased 22.4% over the last twelve months, and by 1.8% during the quarter, and we continue to expect c.15% customer lending growth for 2019.

During the quarter we actively continued the further development of our fully integrated digital strategy, an important focus for us as we seek to digitise our full banking platforms:

§ Introducing new features to both our mobile banking application and our internet bank and introducing dedicated digital spaces in our branches. As a result, the number of active internet and mobile banking users in 1Q19 reached 277,960 (up 16.5% y-o-y) and 382,152 (up 84.2% y-o-y), respectively;

§ Releasing a brand new business internet banking platform (Business iBank) for our MSME and corporate clients; and

§ Launching a cutting-edge full-service real estate digital platform that is unique in doing business in the Georgian real estate market. This is the first platform to be fully integrated with the Bank to provide users with a "one-click" live credit limit appraisal and mortgage application experience.

From a macro-economic perspective, the economy continued to perform well, with Georgia's real GDP growth at 4.7% in 1Q19. External pressures continued to ease as goods exports, remittances and tourism all posted increases while imports declined. In the first three months of the year, inflation remained close to the National Bank of Georgia's 3% target, and at 3.7% in March 2019. With subdued inflation expectations, the NBG cut the policy rate to 6.5% in 1Q19. Continued growth in external inflows enabled the NBG to purchase US$186 million in 1Q19. This lifted international reserves to US$3.5 billion as of 31 March 2019. Despite these FX purchases, the Georgian Lari remained relatively stable against US$ throughout the quarter. Notably, Georgia's macro fundamentals remain strong with its track record of resilience to negative external developments. This was acknowledged by a one-notch sovereign credit rating upgrade from Fitch Ratings in February 2019 and an improved rating outlook from S&P in April 2019. Georgia's economic resilience continues to be underpinned by its diversified economic base and external economic linkages, as well as prudent economic policy-making and a healthy banking sector.

Whilst individual product loan yields have remained broadly stable, our increasing focus on lending in the mortgage segment and to finer margin corporate and SME clients, has led to a negative mix effect on the net interest margin, which reduced by 20 basis points quarter-on-quarter to 5.8% at the Group level, and by 30 basis points in the Retail Bank. This shift in product mix, which we expect to continue at a slower rate during 2019, improves asset quality and, particularly in the case of the mortgage portfolio, reduces the risk-asset and capital intensity of our lending growth. Costs remain well controlled and, adjusting for impact of the one-off employee termination costs, the Group delivered positive operating leverage of 5.0 percentage points y-o-y, and improved its cost/income ratio to 35.5%. 

Asset quality continues to be extremely robust, reflecting our good lending discipline and the ongoing strength of the economy. The annualised cost of risk ratio in the quarter was 1.7%, broadly reflecting a very strong performance in CIB (annualised cost of risk of 0.1%), which offset the impact of first quarter seasonality and the new regulatory changes in the Retail Bank (annualised cost of risk of 2.4%), as we have reduced our Express lending portfolio significantly. This process has now been largely completed, and we expect the Retail Bank cost of risk to return to more normal levels over the next few quarters. The NPLs to gross loans ratio was stable at 3.3% during the quarter, 20 basis points lower than a year ago and flat q-o-q. Provisions coverage ratios improved during the quarter, and we continue to expect asset quality and credit metrics to remain strong over the medium-term.

The Retail Bank continues to deliver strong franchise growth. Customer lending increased 2.0% during the traditionally quietest quarter of the year, and 23.2% over the last 12 months, at a time when we have been integrating significant regulatory changes to income verification procedures, and payment-to-income and loan-to-value ratios targeted to refocus retail lending towards the high quality secured mortgage portfolio and MSME lending. MSME lending in the quarter was particularly strong, supported by the strength of the Georgian economy, growing by 4.7% in the quarter. Going forward, the Retail Bank's clear focus will be on capturing the significant growth opportunities in the mortgage and MSME portfolios. The overall impact of the regulatory changes has been the reduction of the net interest margin of the Retail Bank and, temporarily while the higher margin Express loan portfolio has been substantially run down, increase in the retail cost of credit risk ratio. Importantly however, the capital efficiency of this portfolio shift remains strong and the Retail Bank continues to deliver a very strong return on equity - 25.3% in the first quarter. 

The Retail Bank now has almost 2.5 million customers, an increase of more than 4% over the last 12 months. Our fully transformed, user-friendly, multi-feature mobile banking application, mBank, continues to see significant growth in the number of digital transaction, growing 21.6% over the last three months alone. In addition, we have now comfortably exceeded our targeted 40,000 Solo clients by the end of 2018, with over 47,000 clients now benefiting from Solo's concierge-style banking proposition.

Corporate Investment Banking (CIB) performed particularly strongly during the quarter. Customer lending in CIB grew 1.3% quarter-on-quarter, while the net interest margin increased by 20 basis points to 3.4%. This strong performance in CIB was driven by a 31.5% y-o-y (17.5% q-o-q) growth in net fees and commission, and an increase of 26.8% in operating income y-o-y, that led to 52.3% y-o-y growth in profit (adjusted for one-off employee costs related to termination benefits of former CEO and executive management).

The Group's capital and funding position remains strong, and our issuance of US$100 million Additional Tier 1 capital in March 2019 has improved the efficiency of our capital structure, introduced a natural hedge against dollarisation in the economy and built in significant headroom over the fully-loaded Basel III capital requirements for 2021 that are currently being introduced. This Additional Tier 1 capital received regulatory approval in April 2019 and will therefore add approximately 230 basis points to our Tier 1 capital ratio with immediate effect. During April 2019, we took the opportunity to repay US$65 million of Tier 2 capital, and this will substantially reduce the carry-cost of the new Additional Tier 1 capital issuance. In addition, we continue to generate high levels of internal capital as a result of both the Group's high return on equity, and the improved risk asset intensity of our current and expected lending growth.

Over the last 12 months, the banking sector in Georgia has been in a significant transition period following the implementation of a number of regulatory changes, particularly affecting lending guidelines in the retail banking sector. Following the introduction, in January 2019, of the increase in the GEL 100,000 limit, to GEL 200,000, below which lending must be issued to individuals in GEL, we are not aware of any further significant new regulatory changes over the foreseeable future. Looking forward, we expect that banks will see a shift towards lending to corporates and the MSME sector, and in the mortgage sector, improving the overall quality of banking balance sheets, and driving further progress in the dedollarisation of the banking sector. This is expected to support increased capital efficiency, and continuing strong profitability for Bank of Georgia.

Having taken over as Chief Executive of the Bank during the quarter, I have been impressed by the strength of the Bank's customer franchise, and undisputed brand strength. We have considerably strengthened the executive management team and I look forward to working with the whole management team and colleagues to ensure we capture the many opportunities available in the Georgian financial services sector to develop more digital, efficient and modern financial services throughout Georgia.

 

 

Archil Gachechiladze,

CEO, Bank of Georgia Group PLC

13 May 2019

 

DISCUSSION OF RESULTS

 

The Group's business is primarily comprised of three segments. (1) Retail Banking operations in Georgia principally provides consumer loans, mortgage loans, overdrafts, credit cards and other credit facilities, funds transfer and settlement services, and handling customers' deposits for both individuals as well as legal entities. Retail Banking targets the emerging retail, mass retail and mass affluent segments, together with small and medium enterprises and micro businesses. (2) Corporate Investment Banking comprises Corporate Banking and Investment Management operations in Georgia. Corporate Banking principally provides loans and other credit facilities, funds transfers and settlement services, trade finance services, documentary operations support and handles saving and term deposits for corporate and institutional customers. The Investment Management business principally provides private banking services to high net worth clients. (3) BNB, comprising JSC Belarusky Narodny Bank, principally provides retail and corporate banking services to clients in Belarus.

 

OPERATING INCOME

GEL thousands, unless otherwise noted

Change

Change

 

 

 

 

 

 

 

 

334,735

313,679

6.7%

345,760

-3.2%

 

(151,794)

(133,430)

13.8%

(158,322)

-4.1%

 

Net interest income 

182,941

180,249

1.5%

187,438

-2.4%

 

62,531

51,213

22.1%

62,350

0.3%

 

(20,351)

(16,702)

21.8%

(21,006)

-3.1%

 

Net fee and commission income 

42,180

34,511

22.2%

41,344

2.0%

 

30,025

14,253

110.7%

53,358

-43.7%

 

3,568

5,744

-37.9%

(9,073)

NMF

 

Operating income 

258,714

234,757

10.2%

273,067

-5.3%

 

 

 

 

 

 

 

 

Net interest margin

5.8%

7.0%

 

6.0%

 

 

Average interest earning assets

12,752,388

10,434,536

22.2%

12,496,355

2.0%

 

Average interest bearing liabilities

12,717,669

11,230,932

13.2%

12,562,852

1.2%

 

Average net loans and finance lease receivables, currency blended

9,453,255

7,769,959

21.7%

9,095,309

3.9%

 

     Average net loans and finance lease receivables, GEL

3,656,912

3,091,398

18.3%

3,529,999

3.6%

 

     Average net loans and finance lease receivables, FC

5,796,343

4,678,561

23.9%

5,565,310

4.2%

 

Average client deposits and notes, currency blended

8,278,823

7,038,125

17.6%

7,946,145

4.2%

 

    Average client deposits and notes, GEL

2,718,201

2,315,919

17.4%

2,654,640

2.4%

 

    Average client deposits and notes, FC

5,560,622

4,722,206

17.8%

5,291,505

5.1%

 

Average liquid assets, currency blended

4,405,239

4,306,271

2.3%

4,481,396

-1.7%

 

    Average liquid assets, GEL

2,066,605

1,804,602

14.5%

2,142,122

-3.5%

 

    Average liquid assets, FC

2,338,634

2,501,669

-6.5%

2,339,274

0.0%

 

Liquid assets yield, currency blended

3.8%

3.6%

 

3.8%

 

 

    Liquid assets yield, GEL

6.8%

7.0%

 

6.8%

 

 

    Liquid assets yield, FC

1.1%

1.2%

 

1.0%

 

 

Loan yield, currency blended

12.2%

13.9%

 

12.8%

 

 

    Loan yield, GEL

18.4%

21.0%

 

19.7%

 

 

    Loan yield, FC

8.3%

9.1%

 

8.3%

 

 

Cost of funds, currency blended

4.8%

4.8%

 

5.0%

 

 

    Cost of funds, GEL

7.0%

7.0%

 

7.2%

 

 

    Cost of funds, FC

3.6%

3.6%

 

3.7%

 

 

Cost / income6

35.5%

37.2%

 

36.9%

 

 

 

6 1Q19 cost/income ratio adjusted for GEL 7.8mln one-off employee costs (gross of income tax) related to termination benefits of the former executive management

Performance highlights

§ Solid operating income of GEL 258.7mln in 1Q19 (up 10.2% y-o-y). Y-o-y operating income growth in 1Q19 was primarily driven by an impressive 22.2% growth in net fee and commission income and 1.5% increase in net interest income. Net foreign currency gains (up 110.7% y-o-y) also contributed to y-o-y growth in operating income during the first quarter 2019, although they were 43.7% lower than in the fourth quarter of 2018, which benefited from a high level of currency volatility

§ Our NIM was 5.8% in 1Q19. During first quarter 2019, NIM was down 120bps y-o-y due to the 170bps y-o-y decrease in loan yield, largely reflecting our shift towards a higher quality, finer margin product mix on the back of tighter regulatory conditions for unsecured consumer lending, while cost of funds remained flat at 4.8%. On a q-o-q basis, loan yield decreased by 60bps, while cost of funds reduced by 20bps, resulting in 20bps q-o-q decline in 1Q19 NIM

§ Loan yield. Currency blended loan yield was 12.2% in 1Q19 (down 170bps y-o-y and down 60bps q-o-q). The y-o-y and q-o-q decline in loan yields during the first quarter of 2019 was attributable to a decrease in both local and foreign currency loan yields, which primarily reflects the change in product mix in our loan portfolio

§ Liquid assets yield. Both local currency and foreign currency denominated liquid assets yields decreased y-o-y in 1Q19. However, the currency blended liquid assets yield increased to 3.8% in 1Q19 (up 20bps y-o-y and flat q-o-q), primarily reflecting an increase in the portion of higher yielding local currency liquid assets in the total liquid assets portfolio

§ Cost of funds. Cost of funds stood at 4.8% in 1Q19 (flat y-o-y and down 20bps q-o-q). Y-o-y cost of funds remained stable on the back of a 10bps decline in the cost of client deposits and notes (which represent 65.1% of total interest-bearing liabilities), offsetting the 70bps increase in the cost of amounts due to credit institutions, primarily driven by increased local currency denominated borrowings from Development Finance Institutions (DFIs), and 10bps increase in cost of debt securities issued. On a q-o-q basis, decrease in cost of funds was due to lower costs of both client deposits and notes (down 10bps) and cost of amounts due to credit institutions (down 30bps, primarily on the back of decrease in Libor and NBG monetary policy rates), while cost of debt securities issued remained flat

§ Net fee and commission income. The first quarter of 2019 was exceptionally strong in terms of net fee and commission income generation. Net fee and commission income reached GEL 42.2mln in 1Q19 (up 22.2% y-o-y and up 2.0% q-o-q). Y-o-y growth was mainly driven by the strong performance in our settlement operations supported by the success of our Retail Banking franchise and a strong increase in fees and commission income from guarantees and letters of credit issued by Corporate Investment Banking business

§ Net foreign currency gain. In line with the increase of client-driven flows, as well as robust interest from foreign financial institutions in local currency, the net foreign currency gain was up 110.7% y-o-y, although they were 43.7% lower than in the fourth quarter of 2018, which primarily benefited from a high level of currency volatility

§ Net other income. Net other income in 1Q19 largely reflects net gains from investment securities recorded during the quarter, partially offset by net losses from derivative financial instruments (interest rate swap hedges)

NET OPERATING PROFIT BEFORE NON-RECURRING ITEMS; COST OF RISK; PROFIT FOR THE PERIOD

 

GEL thousands, unless otherwise noted 7

1Q19

1Q18

Change

y-o-y

4Q18

Change

q-o-q

 

 

 

 

 

 

(52,418)

(49,453)

6.0%

(58,331)

-10.1%

(22,741)

(25,633)

-11.3%

(30,010)

-24.2%

(15,688)

(11,522)

36.2%

(11,365)

38.0%

(1,080)

(771)

40.1%

(1,151)

-6.2%

Operating expenses 

(91,927)

(87,379)

5.2%

(100,857)

-8.9%

188

318

-40.9%

318

-40.9%

Operating profit before cost of risk 

166,975

147,696

13.1%

172,528

-3.2%

(40,117)

(36,676)

9.4%

(25,783)

55.6%

(446)

13

NMF

514

NMF

(2,089)

2,850

NMF

(15,509)

-86.5%

Cost of risk 

(42,652)

(33,813)

26.1%

(40,778)

4.6%

Net operating profit before non-recurring items and income tax

124,323

113,883

9.2%

131,750

-5.6%

(1,575)

(2,948)

-46.6%

(2,185)

-27.9%

Profit before income tax and one-off termination costs 

122,748

110,935

10.6%

129,565

-5.3%

(10,536)

(9,283)

13.5%

(10,888)

-3.2%

Profit adjusted for one-off termination costs

112,212

101,652

10.4%

118,677

-5.4%

(10,240)

-

NMF

(3,861)

NMF

Profit

101,972

101,652

0.3%

114,816

-11.2%

             

 

§ Operating expenses adjusted for one-off employee costs related to termination benefits of former executive management members (acceleration of share-based compensation) were GEL 91.9mln in 1Q19 (up 5.2% y-o-y and down 8.9% q-o-q), driving the positive operating leverage of 5.0% y-o-y and 3.6% q-o-q

§ The decline in administrative expenses and increase in depreciation and amortisation expenses is primarily driven by adoption of a new standard IFRS 16, Leases replacing IAS 17, Leases effective 1 January 2019. As a result of the adoption of the standard the Group recorded on its balance sheet assets related to the right to use the rented properties together with corresponding liabilities for respective payments under the lease contracts. There was no material impact on overall operating expenses in 1Q19

§ Cost of credit risk ratio. The cost of credit risk ratio was 1.7% in 1Q19, down 10bps y-o-y and up 60bps q-o-q. RB's cost of credit risk ratio was 2.4% in 1Q19, up 20bps y-o-y and up 70bps q-o-q, while CIB's cost of credit risk ratio was 0.1%, down 120bps y-o-y and up 30bps q-o-q. The y-o-y and q-o-q increase in RB's cost of credit risk ratio reflected tighter conditions on unsecured consumer lending, which primarily affected the quality of high-yielding express and micro express loans as expected in the short-term. The q-o-q increase was also due to seasonal factors

 

 

 

7 The adjusted profit in the table excludes GEL 10.2mln in 1Q19 (4Q18: GEL 3.9mln) one-off employee costs (net of income tax) related to the former CEO and executive management termination benefits. The amount is comprised of GEL 4.0mln (gross of income tax) excluded from non-recurring items (4Q18: GEL 4.4mln) and GEL 7.8mln (gross of income tax) excluded from salaries and other employee benefits
 

§ Quality of our loan book remained strong in 1Q19 as evidenced by the following closely monitored metrics:

GEL thousands, unless otherwise noted

Mar-19

Mar-18

Dec-18

 

 

 

 

 

 

Non-performing loans

 

 

 

 

 

326,127

   279,754

16.6%

318,356

2.4%

3.3%

3.5%

 

3.3%

 

NPLs to gross loans, RB

2.2%

1.9%

 

2.1%

 

NPLs to gross loans, CIB

5.7%

5.3%

 

5.6%

 

92.2%

101.2%

 

90.5%

 

132.6%

143.2%

 

129.9%

 

 

 

 

 

 

 

Past due dates

 

 

 

 

 

1.3%

1.2%

 

1.1%

 

1.1%

0.8%

 

0.7%

 

§ BNB - the Group's banking subsidiary in Belarus - continues to remain strongly capitalised, with capital adequacy ratios well above the requirements of the National Bank of the Republic of Belarus ("NBRB"). At 31 March 2019, total capital adequacy ratio was 15.5%, above the 10% minimum requirement, while Tier I capital adequacy ratio was 9.6%, above NBRB's 6% minimum requirement. ROAE was 12.1% in 1Q19 (12.3% in 1Q18 and 19.5% in 4Q18). For detailed financial results of BNB, please see page 21

§ Net non-recurring items. Net non-recurring expenses adjusted for one-off employee costs related to the termination benefits of former CEO (acceleration of share-based compensation) amounted to GEL 1.6mln in 1Q19 (GEL 2.9mln in 1Q18 and GEL 2.2mln in 4Q18). These largely reflect legal fees

§ Overall, profit adjusted for one-off employee costs related to termination benefits of the former CEO and executive management members (acceleration of share-based compensation) totalled GEL 112.2mln in 1Q19 (up 10.4% y-o-y and down 5.4% q-o-q), while ROAE8 was 24.5% in 1Q19 (26.2% in 1Q18 and 27.0% in 4Q18)

8 1Q19 ROAE adjusted for GEL 10.2mln (4Q18: GEL 3.9mln) one-off employee costs (net of income tax) related to termination benefits of the former CEO and executive management

BALANCE SHEET HIGHLIGHTS

GEL thousands, unless otherwise noted 

Mar-19

Mar-18

Dec-18

 

 

 

 

 

 

4,502,390

4,514,326

-0.3%

4,540,032

-0.8%

Liquid assets, GEL

2,005,142

1,740,858

15.2%

2,283,812

-12.2%

Liquid assets, FC

2,497,248

2,773,468

-10.0%

2,256,220

10.7%

9,570,691

7,819,773

22.4%

9,397,747

1.8%

Net loans and finance lease receivables, GEL

3,758,320

3,222,735

16.6%

3,597,826

4.5%

Net loans and finance lease receivables, FC

5,812,371

4,597,038

26.4%

5,799,921

0.2%

8,393,861

7,296,110

15.0%

8,133,853

3.2%

2,463,408

2,642,427

-6.8%

2,994,879

-17.7%

Borrowings from DFIs

1,309,976

1,191,605

9.9%

1,302,679

0.6%

Short-term loans from central banks

585,797

729,244

-19.7%

1,118,957

-47.6%

Loans and deposits from commercial banks

567,635

721,578

-21.3%

573,243

-1.0%

2,045,428

1,569,404

30.3%

1,730,414

18.2%

Liquidity and CAR ratios

 

 

 

 

 

Net loans / client deposits and notes

114.0%

107.2%

 

115.5%

 

Net loans / client deposits and notes + DFIs

98.6%

92.1%

 

99.6%

 

Liquid assets / total assets

29.9%

34.2%

 

30.7%

 

Liquid assets / total liabilities

34.3%

38.9%

 

34.9%

 

NBG liquidity ratio

36.7%

36.5%

 

31.9%

 

NBG liquidity coverage ratio

133.1%

135.2%

 

120.1%

 

NBG (Basel III) Tier I capital adequacy ratio

12.7%

12.4%

 

12.2%

 

NBG (Basel III) Total capital adequacy ratio

17.1%

17.3%

 

16.6%

 

Our balance sheet remains highly liquid (NBG liquidity coverage ratio of 133.1%) and strongly capitalised (NBG Basel III Tier I capital adequacy ratio of 12.7%) with a well-diversified funding base (client deposits and notes to total liabilities of 63.9%).

§ Liquidity. Liquid assets stood at GEL 4,502.4mln at 31 March 2019, largely flat both y-o-y and q-o-q. The notable increase over the year was in obligatory reserves with NBG, combined with excess liquidity deployed with the credit institutions, NBG and Ministry of Finance. Increase in obligatory reserves with NBG was primarily driven by the changes in minimum reserve requirements mandated by NBG since September 2018, whereby the foreign currency funds raised by local banks now carry up to 25% reserve requirement depending on maturity. As announced by the NBG on 13 March 2019, the reserve requirements on foreign currency funds will increase up to 30% depending on maturity by the end of May 2019. The NBG Liquidity coverage ratio was 133.1% at 31 March 2019 (135.2% at 31 March 2018 and 120.1% at 31 December 2018), well above the 100% minimum requirement level

§ Loan book. Our net loan book and finance lease receivables reached GEL 9,570.7mln at 31 March 2019, up 22.4% y-o-y and up 1.8% q-o-q. As of 31 March 2019, the retail book represented 70.0% of the total loan portfolio (69.5% at 31 March 2018 and 69.8% at 31 December 2018). Both local and foreign currency portfolios experienced strong y-o-y growth of 16.6% and 26.4%, respectively. Furthermore, local currency denominated loan portfolio was up 4.5% q-o-q. The local currency loan portfolio growth was partially driven by the Government's de-dollarisation initiatives and our goal to increase the share of local currency loans in our portfolio

§ Dollarisation of our loan book and client deposits. The retail client loan book in foreign currency accounted for 48.6% of the total RB loan book at 31 March 2019 (46.2% at 31 March 2018 and 50.3% at 31 December 2018), while retail client foreign currency deposits comprised 69.4% of total RB deposits at 31 March 2019 (71.0% at 31 March 2018 and 69.7% at 31 December 2018). At 31 March 2019, 83.0% of CIB's loan book was denominated in foreign currency (80.7% at 31 March 2018 and 82.3% at 31 December 2018), while 60.2% of CIB deposits were denominated in foreign currency (60.2% at 31 March 2018 and 61.2% at 31 December 2018). De-dollarisation of loans and deposits is expected to pick-up the pace in 2019 as a result of the recent NBG-mandated increase of local currency loan threshold from GEL 100,000 to GEL 200,000 and increased mandatory reserve requirements on funds attracted in foreign currency introduced by NBG in March 2019

§ Net loans to customer funds and DFI ratio. Our Net loans to customer funds and DFI ratio, which is closely monitored by management, remained strong at 98.6% (up from 92.1% at 31 March 2018 and down from 99.6% at 31 December 2018)

§ Diversified funding base. Debt securities issued grew by 30.3% y-o-y and by 18.2% q-o-q. The y-o-y and q-o-q increase was primarily driven by the issuance of US$ 100 million Additional Tier 1 capital notes in March 2019 (see details below)

§ Capital Adequacy requirements. Basel III Tier 1 and Total capital adequacy ratios stood at 12.7% and 17.1%, respectively, as of 31 March 2019 compared to a minimum required level of 11.6% and 16.1%, respectively. At the same time Common Equity Tier 1 (CET1) ratio stood at 12.7% compared to a 9.6% minimum requirement at 31 March 2019. In March 2019, the Bank issued inaugural US$ 100 million 11.125% Additional Tier 1 capital perpetual subordinated notes callable after 5.25 years and on every subsequent interest payment date, subject to prior consent of the National Bank of Georgia at an issue price of 100.00% (the "Notes"). The Notes are listed on the Irish Stock Exchange and rated B- (Fitch). The issuance was the first international offering of Additional Tier 1 Capital Notes from Georgia and the South Caucasus region. Basel III regulations recently introduced in Georgia now enable this type of capital optimisation and this US Dollar issue provides the Bank with an opportunity to diversify its capital structure from a foreign currency perspective and provide a natural hedge against dollarisation in the economy. The Bank received regulatory approval on the classification of the Notes as Additional Tier 1 instruments in April 2019, therefore, it has not been reflected in the capital ratios reported as of 31 March 2019. This issuance added approximately 230 basis points to the Bank's Tier 1 capital ratio. That said, CET1 and Tier 1 capital adequacy ratios are already above the estimated fully-loaded requirements for 2021

 

 

DISCUSSION OF SEGMENT RESULTS

 

RETAIL BANKING (RB)

 

Retail Banking provides consumer loans, mortgage loans, overdrafts, credit card facilities and other credit facilities as well as funds transfer and settlement services and the handling of customer deposits for both individuals and legal entities (SME and micro businesses only). RB is represented by the following four sub-segments: (1) the emerging retail segment (through our Express brand), (2) retail mass market segment; (3) SME and micro businesses - "MSME" (through our Bank of Georgia brand), and (4) the mass affluent segment (through our Solo brand).

 

GEL thousands, unless otherwise noted

1Q19

1Q18

Change

y-o-y

4Q18

q-o-q

 

 

 

 

 

 

INCOME STATEMENT HIGHLIGHTS9

 

 

 

 

 

130,987

135,454

-3.3%

136,895

-4.3%

32,435

26,141

24.1%

32,915

-1.5%

13,240

4,349

NMF

24,047

-44.9%

2,168

3,102

-30.1%

(5,421)

NMF

Operating income

178,830

169,046

5.8%

188,436

-5.1%

(33,874)

(32,112)

5.5%

(37,052)

-8.6%

(15,796)

(19,541)

-19.2%

(21,620)

-26.9%

(13,287)

(9,902)

34.2%

(9,857)

34.8%

(536)

(503)

6.6%

(638)

-16.0%

Operating expenses 

(63,493)

(62,058)

2.3%

(69,167)

-8.2%

188

318

-40.9%

318

-40.9%

Operating profit before cost of risk

115,525

107,306

7.7%

119,587

-3.4%

(39,386)

(28,453)

38.4%

(37,488)

5.1%

Net operating profit before non-recurring items and income tax 

76,139

78,853

-3.4%

82,099

-7.3%

(276)

(1,976)

-86.0%

(778)

-64.5%

Profit before income tax and one-off termination costs 

75,863

76,877

-1.3%

81,321

-6.7%

(6,101)

(6,060)

0.7%

(6,155)

-0.9%

Profit adjusted for one-off termination costs

69,762

70,817

-1.5%

75,166

-7.2%

(7,075)

-

NMF

(2,939)

140.7%

Profit

62,687

70,817

-11.5%

72,227

-13.2%

 

 

 

 

 

 

BALANCE SHEET HIGHLIGHTS

 

 

 

 

 

6,389,631

5,184,596

23.2%

6,267,071

2.0%

Net loans, GEL

3,286,042

2,790,705

17.7%

3,117,454

5.4%

Net loans, FC

3,103,589

2,393,891

29.6%

3,149,617

-1.5%

4,520,521

3,304,319

36.8%

4,338,712

4.2%

Client deposits, GEL

1,385,451

959,084

44.5%

1,314,902

5.4%

Client deposits, FC

3,135,070

2,345,235

33.7%

3,023,810

3.7%

of which:

 

 

 

 

 

2,593,744

1,838,699

41.1%

2,430,311

6.7%

Time deposits, GEL

637,522

412,140

54.7%

566,490

12.5%

Time deposits, FC

1,956,222

1,426,559

37.1%

1,863,821

5.0%

1,926,777

1,465,620

31.5%

1,908,401

1.0%

Current accounts and demand deposits, GEL

747,929

546,944

36.7%

748,412

-0.1%

Current accounts and demand deposits, FC

1,178,848

918,676

28.3%

1,159,989

1.6%

 

 

 

 

 

 

KEY RATIOS

 

 

 

 

 

ROAE9

25.3%

31.8%

 

28.4%

 

Net interest margin, currency blended

6.4%

8.2%

 

6.7%

 

Cost of credit risk

2.4%

2.2%

 

1.7%

 

Cost of funds, currency blended

5.6%

5.8%

 

5.7%

 

Loan yield, currency blended

13.6%

15.8%

 

14.2%

 

Loan yield, GEL

19.3%

22.4%

 

20.7%

 

Loan yield, FC

7.7%

8.4%

 

7.4%

 

Cost of deposits, currency blended

3.0%

2.8%

 

2.9%

 

Cost of deposits, GEL

5.2%

4.8%

 

5.0%

 

Cost of deposits, FC

2.1%

2.1%

 

2.1%

 

Cost of time deposits, currency blended

4.3%

4.3%

 

4.2%

 

Cost of time deposits, GEL

8.8%

8.9%

 

8.7%

 

Cost of time deposits, FC

2.9%

3.0%

 

2.9%

 

Current accounts and demand deposits, currency blended

1.3%

1.0%

 

1.2%

 

Current accounts and demand deposits, GEL

2.2%

1.7%

 

2.1%

 

Current accounts and demand deposits, FC

0.7%

0.6%

 

0.7%

 

Cost / income ratio10

 

 

35.5%

36.7%

 

36.7%

 

 

 

9 The income statement adjusted profit excludes GEL 7.1mln in 1Q19 (4Q18: GEL 2.9mln) one-off employee costs (net of income tax) related to the former CEO and executive management termination benefits. The amount is comprised of GEL 2.9mln (gross of income tax) excluded from non-recurring items (4Q18: GEL 3.3mln) and GEL 5.2mln (gross of income tax) excluded from salaries and other employee benefits. The 1Q19 and 4Q18 ROAE has been adjusted accordingly

10 1Q19 cost/income ratio adjusted for GEL 5.2mln one-off employee costs (gross of income tax) related to termination benefits of the former executive management

Performance highlights

§ Retail Banking delivered solid quarterly results in each of its major segments, in the seasonally quiet quarter, and generated operating income of GEL 178.8mln in 1Q19 (up 5.8% y-o-y and down 5.1% q-o-q)

§ RB's net interest income was down 3.3% y-o-y and down 4.3% q-o-q in 1Q19 largely as a result of the regulations introduced by the National Bank of Georgia on consumer lending in 2018. Net interest income still benefits from the growth of the local currency loan portfolio, which generated 11.6ppts higher yield than the foreign currency loan portfolio in 1Q19

§ The Retail Banking net loan book reached GEL 6,389.6mln in 1Q19, up 23.2% y-o-y and up 2.0% q-o-q. On a constant currency basis our retail loan book increased by 17.1% y-o-y and by 1.7% q-o-q in 1Q19. Our local currency denominated loan book increased by 17.7% y-o-y and by 5.4% q-o-q, while the foreign currency denominated loan book grew by 29.6% y-o-y and but decreased by 1.5% q-o-q. As a result, the local currency denominated loan book accounted for 51.4% of the total Retail Banking loan book at 31 March 2019 (53.8% at 31 March 2018 and 49.7% at 31 December 2018)

§ The loan portfolio composition reflects the shift towards a higher quality, finer margin product mix on the back of tighter lending conditions for unsecured consumer lending. The y-o-y loan book growth reflected continued strong loan origination levels in MSME segment. The slow-down in loan originations in mortgage segment is primarily on the back of regulation on consumer lending effective 1 January 2019. The q-o-q decline in mortgage and consumer loan originations also reflected the seasonal factors:

Retail Banking loan book by products

GEL million, unless otherwise noted

Change

Loan originations

 

 

 

 

 

306.5

364.2

-15.8%

326.0

-6.0%

209.5

303.3

-30.9%

466.4

-55.1%

287.0

283.6

1.2%

263.6

8.9%

214.5

130.8

64.0%

186.1

15.3%

14.5

50.1

-71.1%

14.4

0.4%

 

 

 

 

 

 

Outstanding balance

 

 

 

 

 

1,381.5

1,293.5

6.8%

1,379.7

0.1%

2,578.5

1,771.5

45.6%

2,539.3

1.5%

1,310.8

1,098.2

19.4%

1,246.3

5.2%

795.8

604.2

31.7%

758.7

4.9%

44.4

120.2

-63.1%

58.6

-24.2%

§ Retail Banking client deposits increased to GEL 4,520.5mln, up 36.8% y-o-y and up 4.2% q-o-q. The dollarisation level of our deposits decreased to 69.4% at 31 March 2019 from 71.0% at 31 March 2018 and from 69.7% at 31 December 2018. The cost of foreign currency denominated deposits stood at 2.1%, flat both y-o-y and q-o-q. The cost of local currency denominated deposits increased by 40bps y-o-y and by 20bps q-o-q in 1Q19. The spread between the cost of RB's client deposits in GEL and foreign currency widened to 3.1ppts during 1Q19 (GEL: 5.2%; FC: 2.1%) compared to 2.7ppts in 1Q18 (GEL: 4.8%; FC: 2.1%) and 2.9ppts in 4Q18 (GEL: 5.0%; FC: 2.1%)

§ Retail Banking NIM was 6.4% in 1Q19 (down 180bps y-o-y and down 30bps q-o-q). The decline in NIM was attributable to lower loan yields (down 220bps y-o-y and down 60bps q-o-q), mainly driven by the change in the Retail Banking loan portfolio product mix, with the lower yield-lower risk products share increasing in total RB loan portfolio.  Meanwhile, the cost of funds decreased by 20bps y-o-y and by 10bps q-o-q in 1Q19

§ Strong growth in Retail Banking net fee and commission income. Exceptionally strong 24.1% y-o-y growth in net fee and commission income was driven by an increase in settlement operations and the strong underlying growth in our Solo and MSME segments

§ RB's cost of credit risk ratio was 2.4% in 1Q19 (up from 2.2% in 1Q18 and from 1.7% in 4Q18). The y-o-y and q-o-q increase in cost of credit risk ratio reflected tighter conditions on unsecured consumer lending, which primarily affected the quality of high-yielding express and micro express loans as expected in the short-term. The q-o-q increase in cost of credit risk ratio is also due to seasonal factors

 

 

§ Our Retail Banking business continued to deliver solid growth as we further develop our strategy towards continuous digitalisation, as demonstrated by the following performance indicators:

Retail Banking performance indicators

Volume information in GEL thousands

Change

Retail Banking customers

 

 

 

 

 

39,845

63,621

-37.4%

54,975

-27.5%

2,454,678

2,356,294

4.2%

2,440,754

0.6%

Cards

 

 

 

 

 

176,085

246,138

-28.5%

243,843

-27.8%

2,139,239

2,246,396

-4.8%

2,177,273

-1.7%

Express Pay terminals

 

 

 

 

 

3,152

2,825

11.6%

3,115

1.2%

26,751,138

25,835,081

3.5%

27,924,360

-4.2%

1,765,536

1,496,169

18.0%

1,848,746

-4.5%

POS terminals

 

 

 

 

 

12,766

9,300

37.3%

10,009

27.5%

5,902

5,112

15.5%

5,575

5.9%

17,684

12,571

40.7%

16,870

4.8%

16,529,540

13,206,872

25.2%

16,932,793

-2.4%

488,198

395,099

23.6%

537,668

-9.2%

Internet banking

 

 

 

 

 

277,960

238,618

16.5%

295,226

-5.8%

1,421,135

1,487,062

-4.4%

1,541,779

-7.8%

490,457

427,014

14.9%

620,273

-20.9%

Mobile banking

 

 

 

 

 

382,152

207,485

84.2%

333,698

14.5%

6,697,926

2,817,807

137.7%

5,506,212

21.6%

790,201

317,381

149.0%

697,296

13.3%

-     Growth in the client base was due to the increased offering of cost-effective remote channels. The increase to 2,454,678 customers in 1Q19 (up 4.2% y-o-y and up 0.6% q-o-q) reflects sustained growth in our client base over recent periods and was one of the drivers of the increase in our Retail Banking net fee and commission income

-     The number of outstanding cards decreased by 4.8% y-o-y and by 1.7% q-o-q in 1Q19 primarily due to Express cards which have been declining in line with the recently introduced regulations on consumer lending. Excluding the Express cards, total number of cards outstanding at 31 March 2019 increased by 22.8% y-o-y and 4.0% q-o-q. Loyalty programme Plus+ cards, launched in July 2017 as part of RB's client-centric approach, almost doubled y-o-y. We had 651,009 active Plus+ cards outstanding as at 31 March 2019, up 9.9% q-o-q

-     The utilisation of Express Pay terminals continued to grow in 1Q19 y-o-y. The volume and the number of transactions increased by 18.0% and by 3.5% y-o-y, respectively. The fees charged to clients for transactions executed through express pay terminals amounted to GEL 5.7mln in 1Q19 (up 8.8% y-o-y and up 0.2% q-o-q)

-     Digital penetration growth. For our mobile banking application, mbank, the number of transactions (up 137.7% y-o-y and up 21.6% q-o-q) and the volume of transactions (up 149.0% y-o-y and up 13.3% q-o-q) continue to show outstanding growth. Since its launch on 29 May 2017, 765,177 downloads have been made by the Bank's customers. During the same period approximately 26.0 million online transactions were performed using the application

-     Significant growth in loans issued and deposits opened through Internet and Mobile Bank. In 2017, we started actively offering loans and deposit products to our customers through the Internet Bank. In 1Q19, 5,654 loans were issued with a total value of GEL 8.7mln, and 3,420 deposits were opened with a total value of GEL 8.8mln through Internet Bank. Starting from 2018, our customers have been able to apply for a loan via mBank as well. In 1Q19, 9,900 loans were issued with a total value of GEL 11.0mln using the mobile banking application. Moreover, in 3Q18 a new feature was added to mBank and our customers can now open a deposit via our mobile platform. During first quarter 2019, 8,199 (5,124 in 4Q18) deposit accounts were opened with a total deposited amount of GEL 5.7mln (GEL 3.1mln in 4Q18). As a result, the c.82% of total daily banking transactions were executed through digital channels during 1Q19

§ Solo, our premium banking brand, continues its strong growth and investment in its lifestyle brand. We have now 12 Solo lounges, of which 9 are located in Tbilisi, the capital of Georgia, and 3 in major regional cities of Georgia. The number of Solo clients reached 47,057 at 31 March 2019 (35,803 at 31 March 2018 and 44,292 at 31 December 2018), up 468.2% since its re-launch in April 2015. Solo is targeting growth through increasing our engagement with existing clients and maximising profit per client and product per client measures. In 1Q19, the product to client ratio for the Solo segment was 5.4, compared to 2.1 for our retail franchise. While Solo clients currently represent 1.9% of our total retail client base, they contributed 28.7% to our retail loan book, 38.7% to our retail deposits, 17.9% and 21.4% to our net retail interest income and to our net retail fee and commission income in 1Q19, respectively. The fee and commission income from the Solo segment reached GEL 5.8mln in 1Q19 (GEL 4.5mln in 1Q18 and GEL 5.6mln in 4Q18). Solo Club, launched in 2Q17, a membership group within Solo which offers exclusive access to Solo products and offers ahead of other Solo clients at a higher fee, continued to increase its client base. At 31 March 2019, Solo Club had 4,446 members, up 55.9% y-o-y and up 16.2% q-o-q

§ MSME banking delivered strong growth. The number of MSME segment clients reached 207,833 at 31 March 2019, up 19.2% y-o-y and up 6.5% q-o-q. MSME's loan portfolio reached GEL 2,281.1mln at 31 March 2019 (up 26.2% y-o-y and up 4.8% q-o-q) and client deposits and notes increased to GEL 682.1mln (up 36.9% y-o-y and up 2.7% q-o-q). The MSME segment generated operating income of GEL 45.5mln in 1Q19 (up 27.1% y-o-y and down 8.0% q-o-q)

§ In 4Q18, the Bank introduced a new payment method, QR PAY to the local small business market. QR PAY has been designed by the Bank as an alternative payment mechanism to the traditional point of sale terminal for small Georgian businesses that previously relied on cash transactions as a means for their customers to settle payments. QR PAY is a significant advantage for small businesses with low turnover. For customers who use Bank of Georgia's mobile bank and a debit or credit card, settling payments with QR PAY application is simple, safe and user-friendly. Currently, there are already up to 2,000 small businesses connected to QR PAY, with the number and the volume of transactions via QR PAY having increased around 8 and 4 times, respectively, since its launch. With QR PAY the Bank has now taken a step further and aims to make digital transactions even more widespread among both our retail and business clients

§ Retail Banking profit adjusted for one-off employee costs related to termination benefits of the former CEO and executive management members (acceleration of share-based compensation) was GEL 69.8mln in 1Q19 (down 1.5% y-o-y and down 7.2% q-o-q). Retail Banking continued to deliver a strong ROAE13 of 25.3% in 1Q19 (31.8% in 1Q18 and 28.4% in 4Q18) 

 

11 Includes 2,650 POS terminals operating in public transportation network in 1Q19 and 4Q18

12 The users that log-in in internet and mobile bank at least once in three months

13 1Q19 ROAE adjusted for GEL 7.1mln (4Q18: GEL 2.9mln) one-off employee costs (net of income tax) related to termination benefits of the former CEO and executive management
 

CORPORATE INVESTMENT BANKING (CIB)

 

CIB provides (1) loans and other credit facilities to Georgia's large corporate clients and other legal entities, excluding SME and micro businesses; (2) services such as fund transfers and settlements services, currency conversion operations, trade finance services and documentary operations as well as handling savings and term deposits; (3) finance lease facilities through the Bank's leasing operations arm, the Georgian Leasing Company; (4) brokerage services through Galt & Taggart; and (5) Wealth Management private banking services to high-net-worth individuals and offers investment management products internationally through representative offices in London, Budapest, Istanbul, Tel Aviv and Limassol.

 

GEL thousands, unless otherwise noted

Change

INCOME STATEMENT HIGHLIGHTS14

 

 

 

 

 

Net interest income 

45,679

38,232

19.5%

43,696

4.5%

Net fee and commission income 

8,151

6,198

31.5%

6,939

17.5%

Net foreign currency gain

13,104

6,644

97.2%

23,984

-45.4%

Net other income / (expense)

1,386

2,797

-50.4%

(3,451)

NMF

Operating income 

68,320

53,871

26.8%

71,168

-4.0%

Salaries and other employee benefits

(12,439)

(12,595)

-1.2%

(14,645)

-15.1%

Administrative expenses

(4,027)

(3,459)

16.4%

(4,921)

-18.2%

Depreciation and amortisation

(1,701)

(1,309)

29.9%

(1,122)

51.6%

Other operating expenses 

(203)

(143)

42.0%

(347)

-41.5%

Operating expenses 

(18,370)

(17,506)

4.9%

(21,035)

-12.7%

Operating profit before cost of risk

49,950

36,365

37.4%

50,133

-0.4%

Cost of risk 

(1,824)

(4,643)

-60.7%

(3,407)

-46.5%

Net operating profit before non-recurring items and income tax 

48,126

31,722

51.7%

46,726

3.0%

Net non-recurring items 

(72)

(272)

-73.5%

(619)

-88.4%

Profit before income tax and one-off termination costs 

48,054

31,450

52.8%

46,107

4.2%

Income tax expense

(3,864)

(2,444)

58.1%

(3,571)

8.2%

Profit adjusted for one-off termination costs

44,190

29,006

52.3%

42,536

3.9%

One-off termination costs of former CEO and executive management (after tax)

(3,165)

-

NMF

(922)

NMF

Profit

41,025

29,006

41.4%

41,614

-1.4%

 

 

 

 

 

 

BALANCE SHEET HIGHLIGHTS

 

 

 

 

 

Net loans and finance lease receivables, currency blended

2,652,838

2,221,225

19.4%

2,618,489

1.3%

Net loans and finance lease receivables, GEL

451,360

428,556

5.3%

464,397

-2.8%

Net loans and finance lease receivables, FC

2,201,478

1,792,669

22.8%

2,154,092

2.2%

Client deposits, currency blended

3,531,840

3,661,710

-3.5%

3,473,054

1.7%

Client deposits, GEL

1,405,892

1,457,437

-3.5%

1,347,754

4.3%

Client deposits, FC

2,125,948

2,204,273

-3.6%

2,125,300

0.0%

Time deposits, currency blended

1,325,345

1,351,490

-1.9%

1,337,112

-0.9%

Time deposits, GEL

506,023

569,850

-11.2%

491,622

2.9%

Time deposits, FC

819,322

781,640

4.8%

845,490

-3.1%

Current accounts and demand deposits, currency blended

2,206,495

2,310,220

-4.5%

2,135,942

3.3%

Current accounts and demand deposits, GEL

899,869

887,587

1.4%

856,132

5.1%

Current accounts and demand deposits, FC

1,306,626

1,422,633

-8.2%

1,279,810

2.1%

Letters of credit and guarantees, standalone*

1,037,779

605,778

71.3%

1,035,630

0.2%

Assets under management

2,371,002

1,835,873

29.1%

2,271,543

4.4%

  

 

 

 

 

 

RATIOS

 

 

 

 

 

ROAE14

27.1%

19.8%

 

28.5%

 

Net interest margin, currency blended

3.4%

3.2%

 

3.2%

 

Cost of credit risk

0.1%

1.3%

 

-0.2%

 

Cost of funds, currency blended

4.1%

4.4%

 

4.6%

 

Loan yield, currency blended

9.1%

9.9%

 

9.8%

 

Loan yield, GEL

11.5%

12.8%

 

12.8%

 

Loan yield, FC

8.6%

9.4%

 

9.2%

 

Cost of deposits, currency blended

3.6%

3.9%

 

4.0%

 

Cost of deposits, GEL

5.9%

6.1%

 

6.2%

 

Cost of deposits, FC

2.1%

2.5%

 

2.3%

 

Cost of time deposits, currency blended

5.6%

5.7%

 

5.9%

 

Cost of time deposits, GEL

7.5%

7.6%

 

7.8%

 

Cost of time deposits, FC

4.3%

4.6%

 

4.4%

 

Current accounts and demand deposits, currency blended

2.3%

2.7%

 

2.3%

 

Current accounts and demand deposits, GEL

4.8%

5.2%

 

4.9%

 

Current accounts and demand deposits, FC

0.7%

1.2%

 

0.6%

 

Cost / income ratio15

26.9%

32.5%

 

29.6%

 

Concentration of top ten clients

9.1%

10.3%

 

9.8%

 

 

*Off-balance sheet item

 

 

 

 

14 The income statement adjusted profit excludes GEL 3.2mln in 1Q19 (4Q18: GEL 0.9mln) one-off employee costs (net-off income tax) related to the former CEO and executive management termination benefits. The amount is comprised of GEL 1.1mln (gross of income tax) excluded from non-recurring items (4Q18: GEL 1.1mln) and GEL 2.7mln (gross of income tax) excluded from salaries and other employee benefits. The 1Q19 and 4Q18 ROAE has been adjusted accordingly

15 1Q19 cost/income ratio adjusted for GEL 2.7mln one-off employee costs (gross of income tax) related to termination benefits of the former executive management

Performance highlights

§ Corporate Investment Banking delivered strong quarterly results. CIB continued further growth during the first quarter of 2019 and generated strong net interest income and net fee and commission income during the period, coupled with operating efficiencies and improved asset quality

§ CIB's net interest income increased by 19.5% y-o-y and by 4.5% q-o-q in 1Q19. CIB NIM reached 3.4% in 1Q19, up 20bps y-o-y and q-o-q. In 1Q19, the y-o-y and q-o-q increase in NIM was primarily driven by lower cost of funds (down 30bps y-o-y and down 50bps q-o-q, standing at 4.1% at 31 March 2019), on the back of a decline in interest rates on both local and foreign currency deposits. The y-o-y and q-o-q decrease in cost of funds was slightly offset by decrease in currency blended loan yields, which were down 80bps y-o-y and down 70bps q-o-q in 1Q19, driven by the decline in both local and foreign currency loan yields

§ CIB's net fee and commission income reached GEL 8.2mln in 1Q19, up 31.5% y-o-y and up 17.5% q-o-q. The outstanding y-o-y and q-o-q increase in net fee and commission income was largely driven by higher fees from guarantees and letters of credit issued and higher placement and advisory fees during the first quarter of 2019. CIB's net fee and commission income represented 11.9% of total CIB's operating income in 1Q19 as compared to 11.5% in 1Q18 and 9.8% in 4Q18

§ CIB's loan book and de-dollarisation. CIB loan portfolio reached GEL 2,652.8mln as of 31 March 2019, up 19.4% y-o-y and up 1.3% q-o-q. On a constant currency basis, CIB loan book was up 9.2% y-o-y and up 0.8% q-o-q. The concentration of the top 10 CIB clients further decreased to 9.1% at 31 March 2019 (10.3% at 31 March 2018 and 9.8% at 31 December 2018). Foreign currency denominated loans represented 83.0% of CIB's loan portfolio as at 31 March 2019, compared to 80.7% a year ago and 82.3% at 31 December 2018. The increase in foreign currency denominated loans in 1Q19 y-o-y was partially due to local currency depreciation in the first quarter 2019. At 31 March 2019, 59.2% of CIB loan portfolio was US Dollar denominated, with 40.4% of total CIB loans issued to US Dollar income borrowers and 18.8% to non-US Dollar income borrowers

§ As at 31 March 2019, dollarisation of our CIB deposits remained flat y-o-y at 60.2% and decreased from 61.2% as at 31 December 2018. A y-o-y decrease in foreign currency denominated deposits was in line with the decreasing trend in the interest rates on foreign currency deposits (down 40bps y-o-y and down 20bps q-o-q in 1Q19). Despite the decline in interest rates on local currency deposits, the cost of deposits in local currency still remained well above the cost of foreign currency deposits

§ Net other income. Net other income in 1Q19 was largely composed of net gains from investment securities recorded during the quarter, partially offset by net losses from derivative financial instruments (interest rate swap hedges)

§ Cost of credit risk. CIB's cost of credit risk ratio improved significantly y-o-y and stood at 0.1% in 1Q19 (compared to a cost of 1.3% in 1Q18 and net credit of 0.2% in 4Q18), primarily driven by the improved quality of the CIB loan portfolio. At the same time, CIB's NPL coverage ratio was 89.4% at 31 March 2019 (87.7% as at 31 March 2018 and 90.3% at 31 December 2018)

§ As a result, CIB's profit adjusted for one-off employee costs related to termination benefits of the former CEO and executive management members (acceleration of share-based compensation) was GEL 44.2mln in 1Q19, up 52.3% y-o-y and up 3.9% q-o-q. CIB ROAE16 reached 27.1% in 1Q19, compared to 19.8% a year ago and 28.5% in 4Q18

 

Performance highlights of wealth management operations

§ The Investment Management's AUM increased to GEL 2,371.0mln in 1Q19, up 29.1% y-o-y and up 4.4% q-o-q. This includes a) deposits of Wealth Management franchise clients, b) assets held at Bank of Georgia Custody, c) Galt & Taggart brokerage client assets, and d) Global certificates of deposit held by Wealth Management clients. The y-o-y and q-o-q increase in AUM mostly reflected increase in client assets and bond issuance activity at Galt & Taggart

§ Wealth Management deposits reached GEL 1,242.5mln in 1Q19, up 17.5% y-o-y and down 2.0% q-o-q, growing at a compound annual growth rate (CAGR) of 12.1% over the last five-year period. The cost of deposits stood at 3.1% in 1Q19, down 40bps y-o-y and down 10bps q-o-q

§ We served 1,535 wealth management clients from 76 countries as of 31 March 2019, compared to 1,438 clients as of 31 March 2018 and 1,528 clients as of 31 December 2018

§ In January 2019, Bank of Georgia opened a brand new office in the centre of Tbilisi, dedicated to serving its wealth management clients. The office resides in a historic 19th century building, which originally used to house the First Credit Society of Georgia and is considered to be the first residence of a local banking institution. The design concept was derived from the integration of Georgian culture with western values, while the artistic expression of the building has been left intact. The new office coincides with a creation of a new brand identity of the Bank's wealth management business and is in line with its strategy to become the regional hub for private banking

§ Galt & Taggart, which brings under one brand corporate advisory, debt and equity capital markets research and brokerage services, continues to develop local capital markets in Georgia

§ During 1Q19 Galt & Taggart acted as a:

-   lead manager of JSC Microfinance Organisation Crystal's GEL 15mln local public bond issuance due in 2021, in February 2019

-   co-manager of Bank of Georgia's inaugural US$ 100mln international Additional Tier 1 bond issuance, in March 2019

-   lead manager of JSC Microfinance Organisation Swiss Capital's GEL 10mln local public bond issuance due in 2021, in March 2019

-   lead manager for European Bank for Reconstruction and Development (EBRD), facilitating GEL 90mln local private bond issuance due in 2023, in March 2019

-   lead manager for Nederlandse Financierings - Maatschappij Voor Ontwikkelingslanden N.V. (FMO), facilitating GEL 26mln local private bond issuance due in 2024, in March 2019

§ In February 2019, Global Finance Magazine named Galt & Taggart Best Investment Bank in Georgia for the fifth consecutive year

§ In February 2019, Galt & Taggart together with JSC Bank of Georgia organised a conference under "G&T Industry Series" to discuss the findings of Galt & Taggart's research on Georgia's energy sector with an emphasis on ongoing reforms and their impact on the sector development. The conference gathered together all stakeholders including high level representatives from the Government, private sector and IFIs

 

 

16 1Q19 ROAE adjusted for GEL 3.2mln (4Q18: GEL 0.9mln) one-off employee costs (net of income tax) related to termination benefits of the former CEO and executive management

 

SELECTED FINANCIAL INFORMATION

 

INCOME STATEMENT

 

Banking Business

 

Discontinued Operations

 

Eliminations

GEL thousands, unless otherwise noted

1Q19

1Q18

Change

y-o-y

4Q18

Change

q-o-q

 

1Q19

1Q18

Change

y-o-y

4Q18

Change

q-o-q

 

1Q19

1Q18

Change

y-o-y

4Q18

Change

q-o-q

 

1Q19

1Q18

4Q18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income 

334,735

311,275

7.5%

345,760

-3.2%

 

334,735

313,679

6.7%

345,760

-3.2%

 

-

-

-

-

-

 

-

(2,404)

-

Interest expense 

(151,794)

(130,035)

16.7%

(158,322)

-4.1%

 

(151,794)

(133,430)

13.8%

(158,322)

-4.1%

 

-

-

-

-

-

 

-

3,395

-

Net interest income 

182,941

181,240

0.9%

187,438

-2.4%

 

182,941

180,249

1.5%

187,438

-2.4%

 

-

-

-

-

-

 

-

991

-

Fee and commission income 

62,531

50,673

23.4%

62,350

0.3%

 

62,531

51,213

22.1%

62,350

0.3%

 

-

-

-

-

-

 

-

(540)

-

Fee and commission expense 

(20,351)

(16,488)

23.4%

(21,006)

-3.1%

 

(20,351)

(16,702)

21.8%

(21,006)

-3.1%

 

-

-

-

-

-

 

-

214

-

Net fee and commission income 

42,180

34,185

23.4%

41,344

2.0%

 

42,180

34,511

22.2%

41,344

2.0%

 

-

-

-

-

-

 

-

(326)

-

Net foreign currency gain

30,025

13,151

128.3%

53,358

-43.7%

 

30,025

14,253

110.7%

53,358

-43.7%

 

-

-

-

-

-

 

-

(1,102)

-

Net other income / (expense)

3,568

5,518

-35.3%

(9,073)

NMF

 

3,568

5,744

-37.9%

(9,073)

NMF

 

-

-

-

-

-

 

-

(226)

-

Operating income 

258,714

234,094

10.5%

273,067

-5.3%

 

258,714

234,757

10.2%

273,067

-5.3%

 

-

-

-

-

-

 

-

(663)

-

Salaries and other employee benefits (excluding one-offs)

(52,418)

(48,818)

7.4%

(58,331)

-10.1%

 

(52,418)

(49,453)

6.0%

(58,331)

-10.1%

 

-

-

-

-

-

 

-

635

-

One-off termination costs of former executive management (1)

(7,842)

-

NMF

-

NMF

 

(7,842)

-

NMF

-

NMF

 

-

-

-

-

-

 

-

-

-

Salaries and other employee benefits

(60,260)

(48,818)

23.4%

(58,331)

3.3%

 

(60,260)

(49,453)

21.9%

(58,331)

3.3%

 

-

-

-

-

-

 

-

635

-

Administrative expenses

(22,741)

(25,168)

-9.6%

(30,010)

-24.2%

 

(22,741)

(25,633)

-11.3%

(30,010)

-24.2%

 

-

-

-

-

-

 

-

465

-

Depreciation and amortisation

(15,688)

(11,522)

36.2%

(11,365)

38.0%

 

(15,688)

(11,522)

36.2%

(11,365)

38.0%

 

-

-

-

-

-

 

-

-

-

Other operating expenses 

(1,080)

(771)

40.1%

(1,151)

-6.2%

 

(1,080)

(771)

40.1%

(1,151)

-6.2%

 

-

-

-

-

-

 

-

-

-

Operating expenses 

(99,769)

(86,279)

15.6%

(100,857)

-1.1%

 

(99,769)

(87,379)

14.2%

(100,857)

-1.1%

 

-

-

-

-

-

 

-

1,100

-

Profit from associates

188

318

-40.9%

318

-40.9%

 

188

318

-40.9%

318

-40.9%

 

-

-

-

-

-

 

-

-

-

Operating profit before cost of risk 

159,133

148,133

7.4%

172,528

-7.8%

 

159,133

147,696

7.7%

172,528

-7.8%

 

-

-

-

-

-

 

-

437

-

Expected credit loss / impairment charge on loans to customers

(40,117)

(36,676)

9.4%

(25,783)

55.6%

 

(40,117)

(36,676)

9.4%

(25,783)

55.6%

 

-

-

-

-

-

 

-

-

-

Expected credit loss / impairment charge on finance lease receivables

(446)

13

NMF

514

NMF

 

(446)

13

NMF

514

NMF

 

-

-

-

-

-

 

-

-

-

Other expected credit loss / impairment charge on other assets and provisions

(2,089)

2,850

NMF

(15,509)

-86.5%

 

(2,089)

2,850

NMF

(15,509)

-86.5%

 

-

-

-

-

-

 

-

-

-

Cost of risk 

(42,652)

(33,813)

26.1%

(40,778)

4.6%

 

(42,652)

(33,813)

26.1%

(40,778)

4.6%

 

-

-

-

-

-

 

-

-

-

Net operating profit before non-recurring items and income tax

116,481

114,320

1.9%

131,750

-11.6%

 

116,481

113,883

2.3%

131,750

-11.6%

 

-

-

-

-

-

 

-

437

-

Net non-recurring items  (excluding one-offs)

(1,575)

(2,948)

-46.6%

(2,185)

-27.9%

 

(1,575)

(2,948)

-46.6%

(2,185)

-27.9%

 

-

-

-

-

-

 

-

-

-

One-off termination costs of former CEO (2)

(3,985)

-

NMF

(4,401)

-9.5%

 

(3,985)

-

NMF

(4,401)

-9.5%

 

-

-

-

-

-

 

-

-

-

Net non-recurring items 

(5,560)

(2,948)

88.6%

(6,586)

-15.6%

 

(5,560)

(2,948)

88.6%

(6,586)

-15.6%

 

-

-

-

-

-

 

-

-

-

Profit before income tax 

110,921

111,372

-0.4%

125,164

-11.4%

 

110,921

110,935

0.0%

125,164

-11.4%

 

-

-

-

-

-

 

-

437

-

Income tax expense (excluding one-offs)

(10,536)

(9,283)

13.5%

(10,888)

-3.2%

 

(10,536)

(9,283)

13.5%

(10,888)

-3.2%

 

-

-

-

-

-

 

-

-

-

Income tax benefit related to one-off  termination costs (3)

1,587

-

NMF

540

NMF

 

1,587

-

NMF

540

NMF

 

-

-

-

-

-

 

-

-

-

Income tax expense

(8,949)

(9,283)

-3.6%

(10,348)

-13.5%

 

(8,949)

(9,283)

-3.6%

(10,348)

-13.5%

 

-

-

-

-

-

 

-

-

-

Profit from continuing operations

101,972

102,089

-0.1%

114,816

-11.2%

 

101,972

101,652

0.3%

114,816

-11.2%

 

-

-

-

-

-

 

-

437

-

Profit from discontinued operations

-

28,938

NMF

-

-

 

-

-

-

-

-

 

-

29,375

NMF

-

-

 

-

(437)

-

Profit

101,972

131,027

-22.2%

114,816

-11.2%

 

101,972

101,652

0.3%

114,816

-11.2%

 

-

29,375

NMF

-

-

 

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

One-off termination costs (1)+(2)+(3)

(10,240)

-

NMF

(3,861)

NMF

 

(10,240)

-

NMF

(3,861)

NMF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- shareholders of the Group

101,512

118,420

-14.3%

114,240

-11.1%

 

101,512

101,252

0.3%

114,240

-11.1%

 

-

17,168

NMF

-

-

 

-

-

-

- non-controlling interests

460

12,607

-96.4%

576

-20.1%

 

460

400

15.0%

576

-20.1%

 

-

12,207

NMF

-

-

 

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit from continuing operations attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- shareholders of the Group

101,512

101,689

-0.2%

114,240

-11.1%

 

101,512

101,252

0.3%

114,240

-11.1%

 

-

-

-

-

-

 

-

437

-

- non-controlling interests

460

400

15.0%

576

-20.1%

 

460

400

15.0%

576

-20.1%

 

-

-

-

-

-

 

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit from discontinued operations attributable to:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- shareholders of the Group

-

16,731

NMF

-

-

 

-

-

-

-

-

 

-

17,168

NMF

-

-

 

-

(437)

-

- non-controlling interests

-

12,207

NMF

-

-

 

-

-

-

-

-

 

-

12,207

NMF

-

-

 

-

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic)

2.12

3.15

-32.7%

2.40

-11.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- earnings per share from continuing operations

2.12

2.71

-21.8%

2.40

-11.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- earnings per share from discontinued operations

-

0.44

NMF

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (diluted)

2.11

3.04

-30.6%

2.40

-12.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- earnings per share from continuing operations

2.11

2.61

-19.2%

2.40

-12.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- earnings per share from discontinued operations

-

0.43

NMF

-

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

Bank of Georgia Group Consolidated

 

Banking Business

 

Discontinued Operations

 

Eliminations

GEL thousands, unless otherwise noted

Mar-19

Mar-18

Change

y-o-y

Dec-18

Change

q-o-q

 

Mar-19

Mar-18

Change

y-o-y

Dec-18

Change

q-o-q

 

Mar-19

Mar-18

Change

y-o-y

Dec-18

Change

q-o-q

 

Mar-19

Mar-18

Dec-18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

1,162,168

1,754,920

-33.8%

1,215,799

-4.4%

 

1,162,168

1,754,920

-33.8%

1,215,799

-4.4%

 

-

-

-

-

-

 

-

-

-

Amounts due from credit institutions

1,391,630

941,804

47.8%

1,305,216

6.6%

 

1,391,630

955,175

45.7%

1,305,216

6.6%

 

-

-

-

-

-

 

-

(13,371)

-

Investment securities

1,948,592

1,748,728

11.4%

2,019,017

-3.5%

 

1,948,592

1,804,231

8.0%

2,019,017

-3.5%

 

-

-

-

-

-

 

-

(55,503)

-

Loans to customers and finance lease receivables

9,570,691

7,755,233

23.4%

9,397,747

1.8%

 

9,570,691

7,819,773

22.4%

9,397,747

1.8%

 

-

-

-

-

-

 

-

(64,540)

-

Accounts receivable and other loans

3,134

3,453

-9.2%

2,849

10.0%

 

3,134

6,537

-52.1%

2,849

10.0%

 

-

-

-

-

-

 

-

(3,084)

-

Prepayments

31,621

79,600

-60.3%

44,294

-28.6%

 

31,621

79,600

-60.3%

44,294

-28.6%

 

-

-

-

-

-

 

-

-

-

Inventories

11,756

10,371

13.4%

13,292

-11.6%

 

11,756

10,371

13.4%

13,292

-11.6%

 

-

-

-

-

-

 

-

-

-

Right-of-use assets

91,248

-

NMF

-

NMF

 

91,248

-

NMF

-

NMF

 

-

-

-

-

-

 

-

-

-

Investment property

169,328

218,142

-22.4%

151,446

11.8%

 

169,328

218,142

-22.4%

151,446

11.8%

 

-

-

-

-

-

 

-

-

-

Property and equipment

349,728

324,810

7.7%

344,059

1.6%

 

349,728

324,810

7.7%

344,059

1.6%

 

-

-

-

-

-

 

-

-

-

Goodwill

33,352

33,351

0.0%

33,351

0.0%

 

33,352

33,351

0.0%

33,351

0.0%

 

-

-

-

-

-

 

-

-

-

Intangible assets

87,005

57,139

52.3%

83,366

4.4%

 

87,005

57,139

52.3%

83,366

4.4%

 

-

-

-

-

-

 

-

-

-

Income tax assets

19,446

13,189

47.4%

19,451

0.0%

 

19,446

13,189

47.4%

19,451

0.0%

 

-

-

-

-

-

 

-

-

-

Other assets

144,343

113,824

26.8%

126,008

14.6%

 

144,343

117,290

23.1%

126,008

14.6%

 

-

-

-

-

-

 

-

(3,466)

-

Assets held for sale

40,528

-

NMF

42,408

-4.4%

 

40,528

-

NMF

42,408

-4.4%

 

-

-

-

-

-

 

-

-

-

Assets of disposal group held for distribution

-

2,447,592

NMF

-

-

 

-

-

-

-

-

 

-

3,841,004

NMF

-

-

 

-

(1,393,412)

-

Total assets

15,054,570

15,502,156

-2.9%

14,798,303

1.7%

 

15,054,570

13,194,528

14.1%

14,798,303

1.7%

 

-

3,841,004

NMF

-

-

 

-

(1,533,376)

-

Client deposits and notes

8,393,861

6,762,071

24.1%

8,133,853

3.2%

 

8,393,861

7,296,110

15.0%

8,133,853

3.2%

 

-

-

-

-

-

 

-

(534,039)

-

Amounts due to credit institutions

2,463,408

2,521,291

-2.3%

2,994,879

-17.7%

 

2,463,408

2,642,427

-6.8%

2,994,879

-17.7%

 

-

-

-

-

-

 

-

(121,136)

-

Debt securities issued

2,045,428

1,524,600

34.2%

1,730,414

18.2%

 

2,045,428

1,569,404

30.3%

1,730,414

18.2%

 

-

-

-

-

-

 

-

(44,804)

-

Lease liabilities

78,364

-

NMF

-

NFM

 

78,364

-

NMF

-

NMF

 

-

-

-

-

-

 

-

-

-

Accruals and deferred income

48,449

27,478

76.3%

47,063

2.9%

 

48,449

27,478

76.3%

47,063

2.9%

 

-

-

-

-

-

 

-

-

-

Income tax liabilities

37,396

19,763

89.2%

28,855

29.6%

 

37,396

19,763

89.2%

28,855

29.6%

 

-

-

-

-

-

 

-

-

-

Other liabilities

68,883

41,073

67.7%

64,966

6.0%

 

68,883

41,876

64.5%

64,966

6.0%

 

-

-

-

-

-

 

-

(803)

-

Liabilities of  disposal group held for distribution

-

1,837,869

NMF

-

-

 

-

-

-

-

-

 

-

1,964,463

NMF

-

-

 

-

(126,594)

-

Total liabilities

13,135,789

12,734,145

3.2%

13,000,030

1.0%

 

13,135,789

11,597,058

13.3%

13,000,030

1.0%

 

-

1,964,463

NMF

-

-

 

-

(827,376)

-

Share capital

1,618

1,151

40.6%

1,618

0.0%

 

1,618

1,151

40.6%

1,618

0.0%

 

-

-

-

-

-

 

-

-

-

Additional paid-in capital

495,452

64,530

NMF

480,555

3.1%

 

495,452

-

NMF

480,555

3.1%

 

-

64,530

NMF

-

-

 

-

-

-

Treasury shares

(42)

(57)

-26.3%

(51)

-17.6%

 

(42)

(57)

-26.3%

(51)

-17.6%

 

-

-

-

-

-

 

-

-

-

Other reserves

36,474

101,967

-64.2%

30,515

19.5%

 

36,474

(117,684)

NMF

30,515

19.5%

 

-

797,564

NMF

-

-

 

-

(577,913)

-

Retained earnings

1,376,834

2,273,536

-39.4%

1,277,732

7.8%

 

1,376,834

1,706,937

-19.3%

1,277,732

7.8%

 

-

694,686

NMF

-

-

 

-

(128,087)

-

Reserves of disposal group held for distribution

-

15,828

NMF

-

-

 

-

-

-

-

-

 

-

15,828

NMF

-

-

 

-

-

-

Total equity attributable to shareholders of the Group

1,910,336

2,456,955

-22.2%

1,790,369

6.7%

 

1,910,336

1,590,347

20.1%

1,790,369

6.7%

 

-

1,572,608

NMF

-

-

 

-

(706,000)

-

Non-controlling interests

8,445

311,056

-97.3%

7,904

6.8%

 

8,445

7,123

18.6%

7,904

6.8%

 

-

303,933

NMF

-

-

 

-

-

-

Total equity

1,918,781

2,768,011

-30.7%

1,798,273

6.7%

 

1,918,781

1,597,470

20.1%

1,798,273

6.7%

 

-

1,876,541

NMF

-

-

 

-

(706,000)

-

Total liabilities and equity

15,054,570

15,502,156

-2.9%

14,798,303

1.7%

 

15,054,570

13,194,528

14.1%

14,798,303

1.7%

 

-

3,841,004

NMF

-

-

 

-

(1,533,376)

-

Book value per share17

39.88

65.64

-39.2%

37.59

6.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17 The y-o-y decline in Book value per share as at 31 March 2019 is driven by the demerger of Investment Business to Georgia Capital PLC on 29 May 2018 and the issuance and allotment of additional 9,784,716 Bank of Georgia Group shares (equivalent to 19.9% of Bank of Georgia Group's issued ordinary share capital) to Georgia Capital

 

 

BELARUSKY NARODNY BANK (BNB)

 

INCOME STATEMENT, HIGHLIGHTS

1Q19

1Q18

Change

y-o-y

4Q18

Change

q-o-q

GEL thousands, unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

 Net interest income 

6,585

6,544

0.6%

6,471

1.8%

 Net fee and commission income 

1,812

2,277

-20.4%

1,356

33.6%

 Net foreign currency gain

3,955

3,277

20.7%

5,261

-24.8%

 Net other income

147

117

25.6%

332

-55.7%

 Operating income

12,499

12,215

2.3%

13,420

-6.9%

 Operating expenses 

(7,847)

(7,721)

1.6%

(8,785)

-10.7%

 Operating profit before cost of risk

4,652

4,494

3.5%

4,635

0.4%

 Cost of risk 

(1,442)

(717)

101.1%

670

NMF

 Net non-recurring items 

(50)

(700)

-92.9%

(8)

NMF

 Profit before income tax 

3,160

3,077

2.7%

5,297

-40.3%

 Income tax expense

(571)

(779)

-26.7%

(1,162)

-50.9%

 Profit

2,589

2,298

12.7%

4,135

-37.4%

 

 

BALANCE SHEET, HIGHLIGHTS

Mar-19

Mar-18

Change

y-o-y

Dec-18

Change

q-o-q

GEL thousands, unless otherwise stated

 

 

 

 

 

 

 

 

 

 

 

79,497

77,403

2.7%

110,340

-28.0%

20,556

10,387

97.9%

19,664

4.5%

116,082

40,819

NMF

67,734

71.4%

451,665

377,680

19.6%

432,657

4.4%

Other assets

54,001

37,731

43.1%

50,155

7.7%

Total assets

721,801

544,020

32.7%

680,550

6.1%

425,563

288,337

47.6%

389,001

9.4%

144,314

144,208

0.1%

162,823

-11.4%

53,846

30,726

75.2%

38,163

41.1%

9,477

7,331

29.3%

5,300

78.8%

Total liabilities

633,200

470,602

34.6%

595,287

6.4%

Total equity

88,601

73,418

20.7%

85,263

3.9%

Total liabilities and equity

721,801

544,020

32.7%

680,550

6.1%

 

 

 

 

BANKING BUSINESS KEY RATIOS

1Q19

1Q18

4Q18

Profitability

 

 

 

ROAA, annualised18

3.1%

3.2%

3.3%

ROAA, annualised (unadjusted)

2.8%

3.2%

3.2%

ROAE, annualised18

24.5%

26.2%

27.0%

18

25.3%

31.8%

28.4%

18

27.1%

19.8%

28.5%

ROAE, annualised (unadjusted)

22.2%

26.2%

26.2%

Net interest margin, annualised

5.8%

7.0%

6.0%

6.4%

8.2%

6.7%

3.4%

3.2%

3.2%

Loan yield, annualised

12.2%

13.9%

12.8%

13.6%

15.8%

14.2%

9.1%

9.9%

9.8%

Liquid assets yield, annualised

3.8%

3.6%

3.8%

Cost of funds, annualised

4.8%

4.8%

5.0%

Cost of client deposits and notes, annualised

3.3%

3.4%

3.4%

3.0%

2.8%

2.9%

3.6%

3.9%

4.0%

Cost of amounts due to credit institutions, annualised

7.6%

6.9%

7.9%

Cost of debt securities issued

7.8%

7.7%

7.8%

Operating leverage, y-o-y19

5.0%

-3.6%

3.8%

Operating leverage, q-o-q19

3.6%

2.6%

-2.3%

Efficiency

 

 

 

Cost / Income19

35.5%

37.2%

36.9%

19

35.5%

36.7%

36.7%

19

26.9%

32.5%

29.6%

Cost / Income (unadjusted)

38.6%

37.2%

36.9%

Liquidity

 

 

 

NBG liquidity ratio (minimum requirement 30%)

36.7%

36.5%

31.9%

NBG liquidity coverage ratio (minimum requirement 100%)

133.1%

135.2%

120.1%

Liquid assets to total liabilities

34.3%

38.9%

34.9%

Net loans to client deposits and notes

114.0%

107.2%

115.5%

Net loans to client deposits and notes + DFIs

98.6%

92.1%

99.6%

Leverage (times)

6.8

7.3

7.2

Asset quality:

 

 

 

NPLs (in GEL)

326,127

279,754

318,356

NPLs to gross loans to clients

3.3%

3.5%

3.3%

NPL coverage ratio

92.2%

101.2%

90.5%

NPL coverage ratio, adjusted for discounted value of collateral

132.6%

143.2%

129.9%

Cost of credit risk, annualised

1.7%

1.8%

1.1%

2.4%

2.2%

1.7%

0.1%

1.3%

-0.2%

Capital adequacy:

 

 

 

NBG (Basel III) Tier I capital adequacy ratio

12.7%

12.4%

12.2%

Minimum regulatory requirement

11.6%

10.2%

11.4%

NBG (Basel III) Total capital adequacy ratio

17.1%

17.3%

16.6%

Minimum regulatory requirement

16.1%

14.4%

15.9%

 

 

 

 

Selected operating data:

 

 

 

Total assets per FTE

2,017

1,858

1,995

Number of active branches, of which:

276

282

276

 - Express branches (including Metro)

166

156

165

 - Bank of Georgia branches

98

114

99

 

12

12

12

Number of ATMs

886

842

876

Number of cards outstanding, of which:

2,139,239

2,246,396

2,177,273

 - Debit cards

1,627,070

1,597,662

1,630,235

 - Credit cards

512,169

648,734

547,038

Number of POS terminals20

17,684

12,571

16,870

 

FX Rates:

 

 

 

GEL/US$ exchange rate (period-end)

2.6914

2.4144

2.6766

GEL/GBP exchange rate (period-end)

3.5147

3.3932

3.3955

 

 

 

 

Mar-19

Mar-18

Dec-18

Full time employees (FTE), of which:

7,465

7,102

7,416

 - Full time employees, BOG standalone

5,886

5,505

5,828

 - Full time employees, BNB

644

708

669

 - Full time employees, BB other

935

889

919

 

 

 

Shares outstanding

Mar-19

Mar-18

Dec-18

47,899,817

37,431,257

47,626,147

1,269,611

1,953,455

1,543,281

49,169,428

39,384,712

49,169,428

 

 

 

 

 

 

 

 

18 1Q19 and 4Q18 ratios adjusted for one-off employee costs related to termination benefits of the former CEO and executive management

19 1Q19 results adjusted for one-off employee costs related to termination benefits of the former executive management

20 Includes 2,650 POS terminals operating in public transportation network in 1Q19 and 4Q18

GLOSSARY

 

§ Alternative performance measures (APMs) In this announcement the management uses various APMs, which they believe provide additional useful information for understanding the financial performance of the Group. These APMs are not defined by International Financial Reporting Standards, and also may not be directly comparable with other companies who use similar measures. We believe that these APMs provide the best representation of our financial performance as these measures are used by management to evaluate the Group's operating performance and make day-to-day operating decisions;

§ Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities;

§ Cost of credit risk Expected loss/ impairment charge for loans to customers and finance lease receivables for the period divided by monthly average gross loans to customers and finance lease receivables over the same period;

§ Cost to income ratio Operating expenses divided by operating income;

§ Interest bearing liabilities Amounts due to credit institutions, client deposits and notes, and debt securities issued;

§ Interest earning assets (excluding cash) Amounts due from credit institutions, investment securities (but excluding corporate shares) and net loans to customers and finance lease receivables;

§ Leverage (times) Total liabilities divided by total equity;

§ Liquid assets Cash and cash equivalents, amounts due from credit institutions and investment securities;

§ Liquidity coverage ratio (LCR) High quality liquid assets (as defined by NBG) divided by net cash outflows over the next 30 days (as defined by NBG);

§ Loan yield Interest income from loans to customers and finance lease receivables divided by monthly average gross loans to customers and finance lease receivables;

§ NBG liquidity ratio Daily average liquid assets (as defined by NBG) during the month divided by daily average liabilities (as defined by NBG) during the month;

§ NBG (Basel III) Tier I capital adequacy ratio Tier I capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions;

§ NBG (Basel III) Total capital adequacy ratio Total regulatory capital divided by total risk weighted assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions;

§ Net interest margin (NIM) Net interest income of the period divided by monthly average interest earning assets excluding cash for the same period;

§ Non-performing loans (NPLs) The principal and interest on loans overdue for more than 90 days and any additional potential losses estimated by management;

§ NPL coverage ratio Allowance for expected credit loss/impairment loss of loans and finance lease receivables divided by NPLs;

§ NPL coverage ratio adjusted for discounted value of collateral Allowance for expected credit loss/impairment loss of loans and finance lease receivables divided by NPLs (discounted value of collateral is added back to allowance for expected credit loss/impairment loss);

§ Operating leverage Percentage change in operating income less percentage change in operating expenses;

§ Return on average total assets (ROAA) Profit for the period divided by monthly average total assets for the same period;

§ Return on average total equity (ROAE) Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders of the Group for the same period;

§ NMF Not meaningful

 

 

 

 

 

 

COMPANY INFORMATION

 

Bank of Georgia Group PLC

 

Registered Address

84 Brook Street

London W1K 5EH

United Kingdom

www.bankofgeorgiagroup.com 

Registered under number 10917019 in England and Wales

 

Secretary

Link Company Matters Limited

65 Gresham Street

London EC2V 7NQ

United Kingdom

 

Stock Listing

London Stock Exchange PLC's Main Market for listed securities

Ticker: "BGEO.LN"

 

Contact Information

Bank of Georgia Group PLC Investor Relations

Telephone: +44(0) 203 178 4052; +995 322 444444 (9282)

E-mail: ir@bog.ge

 

Auditors

Ernst & Young LLP

25 Churchill Place

Canary Wharf

London E14 5EY

United Kingdom

 

Registrar

Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol BS13 8AE

United Kingdom

 

Please note that Investor Centre is a free, secure online service run by our Registrar, Computershare,

giving you convenient access to information on your shareholdings. 

Investor Centre Web Address - www.investorcentre.co.uk.

Investor Centre Shareholder Helpline - +44 (0)370 873 5866

 

Share price information

Shareholders can access both the latest and historical prices via the website

www.bankofgeorgiagroup.com 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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