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Contents
CEO
statement
Macroeconomic developments: Georgia
Macroeconomic developments: Armenia
Delivering
on our strategic priorities in 1Q24
1Q24
Consolidated Results
Segment
Results
Georgia
Financial Services (GFS)
Armenian
Financial Services (AFS)
Ameriabank:
standalone financial information (not included in consolidated
results)
Other
Businesses
Consolidated
financial information
Additional
non-financial information
Glossary
Bank of
Georgia Group PLC profile
Further
information
Earnings
call on 29 May 2024, 14:00 BST
1Q24
Results
Forward-looking statements
Bank of Georgia Group PLC continues to deliver on its
strategic priorities and posts 1Q24 adjusted profit of GEL
369.1
1Q24 adjusted profit was up 22.5% y-o-y to GEL 369.1 million,
with adjusted return on average equity standing at
27.7%
· The
acquisition of Ameriabank completed as of end of March 2024, with
the balance sheet consolidated at 31 March 2024. A bargain
purchase negative goodwill of GEL
685.9m arising from the acquisition has
been recognised in the period. No income statement was consolidated
in these financial results due to the closing date of the
acquisition being 31 March 2024.
· Net
interest income strong, up 17.7% y-o-y to GEL 437.8 million, with
net interest margin (NIM) at 6.4%.
· Adjusted operating income before cost of risk up 14.1% y-o-y
to GEL 456.0 million.
· Cost
of credit risk ratio down to 0.3% as portfolio quality was strong
across all business sub-segments in Georgian Financial Services
(GFS).
· Few
highlights on Georgian Financial Services: 1) Increase of 166,000
monthly active retail customers during the past twelve months to
1.8 million individuals; 2) Retail Digital MAU up 19.7% y-o-y to
1.4 million in March 2024; 3) customer deposits y-o-y growth of
19.3% and net loan y-o-y growth of 22.6%.
CEO statement
We started this year on a strong
footing, with favourable macro conditions and continued growth
momentum in Georgia and with the acquisition of Ameriabank, which
completed successfully at the end of March 2024. You are now seeing
the Group's balance sheet in its new shape, with assets close to
US$ 16 billion at the end of March, comprising two leading,
top-of-mind universal banks in Georgia and Armenia. Our book value
per share increased to GEL 135.96 (up 38.0% y-o-y and up 18.6%
q-o-q), and we delivered strong bottom-line growth and high
profitability in the first quarter.
In Georgia, the economy maintained
its positive dynamics during the first quarter, with an estimated
7.8% y-o-y real GDP growth, delivered with low inflation.
Unfortunately, uncertainty has increased recently as we have seen
political turmoil during the last few weeks. I have mentioned
previously that the majority of the Georgian population aspires to
EU membership. Some volatility in the economic and geo-political
environment, while not helpful, is likely to be our backdrop until
the upcoming parliamentary elections in October 2024. We monitor
the situation as it unfolds. The Georgian economy has shown
resilience during prior periods of political uncertainty and
tensions and we hope this continues. Solid international reserves
and ample fiscal space support the resilience of the economy
against possible shocks. Tourism may be negatively affected this
summer, but at the moment, we do not project a major negative
impact on the economy and currently expect a 6.0% y-o-y real GDP
growth for the full year.
Our banking business in Georgia
maintains strong capital and liquidity positions, and we continue
to make progress on our strategic priorities, increasing
digitalisation, growing payments, and maintaining high customer
satisfaction. In Georgian Financial Services, loan growth was
robust at 22.6% y-o-y in the first quarter of 2024 (20.0% on a
constant currency basis), with the loan book quality at very
healthy levels. Customer deposit growth was also strong at 19.3%
y-o-y during the first quarter (16.2% y-o-y on a constant currency
basis). In April 2024, Bank of Georgia issued $300 million 9.5%
Additional Tier 1 capital notes, and few days ago issued a notice
regarding the full redemption of the 2019 $100 million 11.125%
Additional Tier 1 capital notes at the upcoming first call date.
The recent issuance with a reduced coupon rate, in an environment
with a significantly higher risk-free rate, highlights increased
investor trust and confidence in Bank of Georgia's financial
strength.
In Armenia, we see strong momentum
both in the economy and at Ameriabank. Real GDP growth was 9.2%
y-o-y in 1Q24, and
the expected y-o-y real GDP growth in Armenia this year is 6.0%,
according to the IMF. The strong growth outlook is supported by
sound and prudent macroeconomic management. Ameriabank has
continued to deliver strong performance during the first quarter,
growing the loan book by around 30% y-o-y and delivering high
profitability with ROE at 25%. We are now focused on working with
the team in Armenia to start unlocking further growth
opportunities.
As a result of the Group's strong
capital position, the Board has recommended a final dividend for
2023 of GEL 4.94 per share, which is subject to shareholder
approval at the upcoming Annual General Meeting in June. In
addition, we are continuing our share buyback and cancellation
programme which, at 24 May 2024, had c. GEL 53 million outstanding
to be completed. Overall, the Group remains well-positioned to
deliver strong growth and high profitability in its key
geographies. Following the acquisition of Ameriabank, we increased
the Group's medium-term target for annual loan book growth to
c.15%. We maintain our profitability target of a 20%+ ROE, and
capital distribution policy of 30-50% of annual profits via
dividends and share buyback and cancellation. The teams across the
Group are committed to driving strong results and success going
forward.
Macroeconomic developments: Georgia
Strong economic growth
The Georgian economy continued to
grow strongly in 1Q24, with an estimated 7.8% y-o-y real GDP
expansion. Manufacturing, information and communication, and
services sectors were the primary contributors to growth. Amid
slowing external sector inflows from last year's high base,
consumption and investment activities have become the main drivers
of growth. Improving labour market conditions, increasing real
wages, and reducing local currency interest rates have supported
the continued strong economic performance. The economic activity is
expected to remain robust, with real GDP growth forecasted at 6.0%
in 2024, and 5.5% in 2025. Sustained geopolitical instability in
the region, tight global financial conditions, and pre-election
local political tensions pose downside risks. However, increased
fiscal space and replenished international reserves cushion the
economy from possible shocks.
Resilient external sector
External merchandise trade continued
to contract y-o-y in 1Q24, with exports and imports decreasing by
9.3% and 3.5%, respectively. The decline was due to slowing
re-exports from last year's high base and the continued fall in
commodity prices, while exports of domestically originated goods
continued to grow. As the adjustment in total import volumes was
larger than that in exports, the trade deficit decreased in 1Q24.
Decreasing export proceeds were partially offset by resilient
tourism revenues and solid increases in other service exports,
including IT and transportation services. In 1Q24, tourism revenues
increased modestly by 1.5% y-o-y due to last year's high base,
while the number of tourist visits exceeded the 2019 level for the
first time since the COVID pandemic. Remittances remained solid
despite a continued contraction from last year's high levels. The
decline in migrant-related inflows was partially offset by steadily
increasing money transfers from the US and EU countries leading to
a 35.8% y-o-y decrease in total transfers in 1Q24. Overall,
external sector inflows are expected to remain sound on the back of
resilient and diversified income sources.
Healthy bank lending
Bank lending remained robust in
1Q24, increasing by 17.4% y-o-y on a constant currency basis,
following the 17.1% y-o-y growth in the previous quarter. Credit
growth was driven by local currency lending, leading to a continued
decline in loan dollarisation to 44.8% at the end of March 2024
(-0.4 ppts q-o-q). The growth in legal entity lending has continued
to be higher than in household loans since mid-2023, indicating a
more productive allocation of funds with favourable effects on
medium-term economic growth prospects. The quality of the banking
sector's credit portfolio remained sound, with the non-performing
loans ratio, according to the IMF, at 1.6% at the end of March
2024.
Strong fiscal discipline
The Government of Georgia remains
committed to fiscal consolidation. In 2023, the fiscal deficit was
reduced to 2.4% of GDP (-0.6 ppts year-on-year), which was below
the budgeted level of 2.8% due to overperformance in tax revenues.
The public debt stood at 39.0% of GDP (-0.2 ppts year-on-year). In
2024, the Government plans to maintain the fiscal deficit at 2.5%
of GDP and further reduce the public debt to 38.0% of GDP. The plan
is underpinned by demonstrated fiscal discipline.
Low
inflation and declining local currency interest
rates
Inflation remained low due to
continued easing of domestic price pressures despite a moderate
pick-up in import prices in 1Q24. Headline CPI was up 1.5% y-o-y in
April 2024, a slight increase from 0.4% registered in December
2023. Inflation is expected to remain close to the central bank's
3% target in 2024. However, upside risks to inflation exist,
considering persistent geopolitical tensions and the recent
weakening of GEL. Steady improvements in the inflation outlook
enabled the National Bank of Georgia (NBG) to cut its policy rate
by a total of 1.50 ppts to 8.0% since January 2024, on top of the
1.50 ppts reduction in 2023.
Stable GEL
GEL remained stable in the first
four months of 2024, backed by sustained external sector inflows
and strong economic performance. In mid-May, the local currency
weakened amid domestic political tensions. The NBG intervened by
selling US$ 60m to calm the market. As a result, GEL recovered
somewhat and registered a 2.9% depreciation against the US dollar
year-to-date as at 27 May 2024. In the medium term, resilient
external sector inflows and healthy macroeconomic fundamentals are
expected to support the local currency.
Macroeconomic developments: Armenia
Robust economic growth
After a solid 8.7% real GDP growth
in 2023, the Armenian economy maintained strong momentum in 1Q24,
delivering 9.2% growth y-o-y. Economic activity was driven by
manufacturing, trade, and construction sectors. The IMF projects a
robust, 6.0% real GDP growth in Armenia in 2024, fuelled by
consumption and public capital expenditure. Geopolitical tensions
and growth prospects in the trading partners pose downside risks to
the outlook, while stronger-than-expected exports create upside
opportunities. Fiscal and monetary policies remain prudent and
contribute to the resilience of the Armenian economy.
The
booming external sector and strong dram
Exports of goods soared in the first
three months of 2024, up 171.9% y-o-y due to a 14-fold rise in
exports of gold and jewellery. In the same period, money transfers
declined by 23.2% y-o-y, driven by falling inflows from Russia. The
marked improvement in trade balance and overall solid inflows
contributed to the strengthening of the dram by 3.9% versus the US
dollar in the first four months of 2024.
Low
inflation and easing monetary policy
During the first four months of
2024, inflation remained in the negative territory due to
decreasing food prices, strong dram, and delayed effects of
previously tight monetary policy. Headline CPI was down 0.7% y-o-y
in April 2024, close to the 0.6% y-o-y deflation in December 2023.
The Central Bank of Armenia (CBA) gradually eased monetary policy,
cutting the refinancing rate by 1 ppt in the first four months of
2024 after a cumulative 1.5 ppts reduction in 2023.
Sound banking sector
The banking sector in Armenia
remains sound, with strong capital and liquidity buffers, high
profitability, and decent asset quality. According to the CBA, bank
lending growth was 17.4% y-o-y on a constant currency basis in
1Q24, after a 21.2% y-o-y growth in the previous quarter. Lending
growth was driven by local currency loans, contributing to the
decreasing dollarisation level (33.9% at the end of March 2024,
-1.7 ppts q-o-q).
Delivering on our strategic priorities in
1Q24
Non-financial data in this section is presented for Bank of
Georgia standalone, unless otherwise noted.
The main bank
Being the main bank in customers' daily lives by leveraging
the digital and payments ecosystems.
In the first quarter of 2024, Bank
of Georgia continued to attract new retail customers, further
develop its retail financial superapp (BOG APP) and other digital
channels, and grow the payments business. As a result:
Monthly active customers (Retail)
|
Digital MAU (Retail)
|
Payment MAU (Retail)
|
Share of products sold through retail digital
channels
|
Monthly active customers (Legal entities)
|
Payments acquiring market share
|
1.8
million
|
1.4
million
|
1.3
million
|
56.5% (1Q24)
|
100K
|
55.5% (Mar-24)
|
+9.9% y-o-y
|
+19.7% y-o-y
|
+18.5% y-o-y
|
44.1% (1Q23)
|
+20.2% y-o-y
|
51.9% (Mar-23)
|
+1.5% q-o-q
|
+3.5% q-o-q
|
+ 2.7% q-o-q
|
70.3% (4Q23)
|
+2.5% q-o-q
|
54.9% (Dec-23)
|
· The
share of Digital MAU in monthly active retail customers increased
to 76.5% as of March 2024, up from 70.3% as of March 2023 and 75.0% as of
December 2023, highlighting the extensive adoption of our
market-leading financial superapp and internet banking
platform.
· Product sales in digital in the prior quarter were boosted by
a gamification campaign, which helped increase awareness of the
functionalities of BOG APP among our customers and supported
digital sales.
· The
growth in legal entities was predominantly driven by small
businesses.
· The
volume of payment transactions in Bank of Georgia's in-store/online
POS terminals was up 33.7% y-o-y and down 10.2% q-o-q in the first
quarter of 2024 to GEL 4.0bn.
Excellent customer
experience
Anticipating customer needs and wants and
providing relevant products and services.
Bank of Georgia's Net Promoter Score
(NPS) stood at a high level of 61 in 1Q24 (58 in 1Q23 and 59 in
4Q23).
Profitable
growth
Growing the balance sheet profitably and focusing on segments
with high growth potential.
Georgian Financial Services loan
book grew 22.6% y-o-y and 3.2% q-o-q, amounting to GEL 20,159.5
million as of 31 March 2024. Growth on a constant currency basis
was 20.0% y-o-y and 3.5% q-o-q.
Consolidated loan book was GEL
27,698.8 as of 31 March 2024, up 63.0% y-o-y and up 36.9% q-o-q as
a result of the first-time consolidation of Ameriabank's balance
sheet as of end of March 2024.
Our
key targets are for the medium term are:
· c.15%
annual growth of the Group's loan book (the target was revised up
from c.10% following the acquisition of Ameriabank in March
2024)
· 20%+
return on average equity
· 30-50%
annual capital distribution ratio (dividends and share buyback and
cancellation programme)
1Q24 Consolidated Results
GEL thousands
|
1Q24
|
1Q23
|
Change
y-o-y
|
4Q23
|
Change
q-o-q
|
INCOME STATEMENT HIGHLIGHTS
|
|
|
|
|
|
Net interest income
|
437,820
|
371,900
|
17.7%
|
427,661
|
2.4%
|
Net fee and commission
income
|
107,802
|
112,301
|
-4.0%
|
114,066
|
-5.5%
|
Net foreign currency gain
|
90,540
|
70,652
|
28.1%
|
97,251
|
-6.9%
|
Net other income
|
7,793
|
8,656
|
-10.0%
|
18,260
|
-57.3%
|
Operating income
|
643,955
|
563,509
|
14.3%
|
657,238
|
-2.0%
|
Operating expenses
|
(188,038)
|
(164,169)
|
14.5%
|
(225,205)
|
-16.5%
|
Profit from associates
|
98
|
218
|
-55.0%
|
254
|
-61.4%
|
Operating income before cost of risk
|
456,015
|
399,558
|
14.1%
|
432,287
|
5.5%
|
Cost of risk
|
(22,999)
|
(48,298)
|
-52.4%
|
(27,810)
|
-17.3%
|
Net
operating income before non-recurring items
|
433,016
|
351,260
|
23.3%
|
404,477
|
7.1%
|
Net non-recurring
items
|
-
|
(60)
|
-100.0%
|
-
|
-
|
Profit before income tax expense and one-off
items
|
433,016
|
351,200
|
23.3%
|
404,477
|
7.1%
|
Income tax expense
|
(63,949)
|
(49,871)
|
28.2%
|
(75,891)
|
-15.7%
|
Profit adjusted for one-off items
|
369,067
|
301,329
|
22.5%
|
328,586
|
12.3%
|
One-off items[1]
|
668,786
|
-
|
-
|
1,524
|
NMF
|
Profit
|
1,037,853
|
301,329
|
244.4%
|
330,110
|
214.4%
|
|
|
|
|
|
|
Basic earnings per share
|
23.53
|
6.55
|
259.2%
|
7.53
|
212.5%
|
Diluted earnings per share
|
23.23
|
6.44
|
260.7%
|
7.31
|
217.8%
|
GEL thousands
|
Mar-24
|
Mar-23
|
Change
y-o-y
|
Dec-23
|
Change
q-o-q
|
BALANCE SHEET HIGHLIGHTS
|
|
|
|
|
|
Liquid assets
|
12,754,830
|
9,413,665
|
35.5%
|
9,984,238
|
27.7%
|
Cash and cash equivalents
|
3,154,044
|
2,661,659
|
18.5%
|
3,101,824
|
1.7%
|
Amounts due from credit
institutions
|
2,382,079
|
2,180,151
|
9.3%
|
1,752,657
|
35.9%
|
Investment securities
|
7,305,770
|
4,571,855
|
59.8%
|
5,129,757
|
42.4%
|
Loans to customers and finance lease
receivables[2]
|
27,698,817
|
16,992,844
|
63.0%
|
20,232,721
|
36.9%
|
Property and equipment
|
517,156
|
405,838
|
27.4%
|
436,955
|
18.4%
|
All remaining assets
|
1,474,751
|
890,735
|
65.6%
|
1,103,644
|
33.6%
|
Total assets
|
42,445,554
|
27,703,082
|
53.2%
|
31,757,558
|
33.7%
|
Client deposits and notes
|
28,330,513
|
18,309,528
|
54.7%
|
20,522,739
|
38.0%
|
Amounts owed to credit
institutions
|
5,626,533
|
3,805,154
|
47.9%
|
5,156,009
|
9.1%
|
Borrowings from DFIs
|
2,163,086
|
1,692,346
|
27.8%
|
2,124,264
|
1.8%
|
Short-term loans from central
banks
|
1,425,921
|
1,270,718
|
12.2%
|
2,101,653
|
-32.2%
|
Loans and deposits from commercial
banks
|
2,037,526
|
842,090
|
142.0%
|
930,092
|
119.1%
|
Debt securities issued
|
1,330,631
|
607,910
|
118.9%
|
421,359
|
NMF
|
All remaining liabilities
|
1,125,439
|
487,106
|
131.0%
|
637,615
|
76.5%
|
Total liabilities
|
36,413,116
|
23,209,698
|
56.9%
|
26,737,722
|
36.2%
|
Total equity
|
6,032,438
|
4,493,384
|
34.3%
|
5,019,836
|
20.2%
|
Book value per share
|
135.96
|
98.51
|
38.0%
|
114.62
|
18.6%
|
|
|
|
|
|
KEY
RATIOS
|
1Q24
|
1Q23
|
4Q23
|
|
ROAA[3]
|
4.7%
|
4.4%
|
4.2%
|
|
ROAE[4]
|
27.7%
|
27.9%
|
26.7%
|
|
Net interest margin[5]
|
6.4%
|
6.4%
|
6.3%
|
|
Loan yield6
|
12.4%
|
12.5%
|
12.4%
|
|
Liquid assets
yield6
|
5.3%
|
4.3%
|
5.0%
|
|
Cost of funds6
|
5.0%
|
4.5%
|
4.9%
|
|
Cost of client deposits and
notes6
|
4.2%
|
3.6%
|
4.2%
|
|
Cost of amounts owed to credit
institutions6
|
8.5%
|
8.3%
|
7.7%
|
|
Cost of debt securities
issued6
|
9.3%
|
7.2%
|
9.3%
|
|
Cost:income ratio
|
29.2%
|
29.1%
|
34.3%
|
|
NPLs to gross loans
|
1.9%
|
2.4%
|
2.3%
|
|
NPL coverage ratio[6]
|
72.3%
|
72.8%
|
69.2%
|
|
NPL coverage ratio adjusted for the
discounted value of collateral7
|
127.9%
|
128.7%
|
117.6%
|
|
Cost of credit risk
ratio6
|
0.3%
|
1.0%
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest
income
· Interest income
in 1Q24 was up 21.5% y-o-y and up 2.8% q-o-q to
GEL 765.8m. The y-o-y and q-o-q increase in interest income was
mostly attributable to higher interest income from loans driven by
strong loan portfolio growth.
· Interest
expense in 1Q24 was up 27.0% y-o-y
and up 3.4% q-o-q to GEL 328.0m. The y-o-y increase in interest
expense in 1Q24 was mainly driven by increased expense on the
deposit portfolio driven by growth coupled with a higher cost of
funds (up 50 bps y-o-y).
· Net interest
margin was 6.4% in 1Q24 (flat y-o-y
and up 10 bps q-o-q).
Net
non-interest income
·
Net fee and
commission income was GEL 107.8m in
1Q24 (down 4.0% y-o-y and down 5.5% q-o-q). The y-o-y decrease was
due to a significant (GEL 27m) income from advisory services booked
in 1Q23, while the q-o-q decrease is mainly attributable to normal
seasonality.
· Net foreign currency (FX)
gain amounted to GEL 90.5m in 1Q24
(up 28.1% y-o-y and down 6.9% q-o-q).
· Net other
income amounted to GEL 7.8m in 1Q24
(down 10.0% y-o-y and down 57.3% q-o-q).
Overall, the Group generated
operating income of GEL 644.0m in
1Q24 (up 14.3% y-o-y and down 2.0% q-o-q). The y-o-y
increase in 1Q24 was mainly driven by strong net interest income
generation and increased net foreign currency gain, partly offset
by lower net fee and commission income.
Operating expenses and efficiency
· Operating expenses amounted to GEL 188.0m in 1Q24 (up 14.5%
y-o-y and down 16.5% q-o-q). The y-o-y rise in operating expenses
in 1Q24 was primarily related to overall business growth and
ongoing investments in strategic areas. The q-o-q decrease was
mainly attributable to seasonal impacts.
· The Group's cost to income ratio was
29.2% in 1Q24 (29.1% in 1Q23 and 34.3% in 4Q23).
Cost of risk
·
The cost of credit risk ratio was 0.3% in 1Q24
(1.0% in 1Q23 and 0.4% in 4Q23). All sub-segments of GFS performed
strongly, see page 11.
One-off items
·
As a result of the acquisition of Ameriabank, the
one-off gain on bargain purchase (the difference between the fair
value of identifiable net assets of Ameriabank acquired and total
purchase consideration) amounted to GEL 685.9m, and
acquisition-related costs amounted to GEL 17.1m, resulting in the
total one-off of GEL 668.8m.
Profitability
· The
Group's profit (adjusted for one-off items) was GEL 369.1m in 1Q24
(up 22.5% y-o-y and up 12.3% q-o-q).
· Return
on average equity (adjusted for one-off items) was 27.7% in 1Q24
(27.9% in 1Q23 and 26.7% in 4Q23).
Loan book
· Net
loans and finance lease receivables amounted to GEL 27,698.8m at 31
March 2024, up 63.0% y-o-y and up 36.9% q-o-q in nominal terms. The
significant increase is attributable to the Ameriabank acquisition,
as well as the 22.6% growth in the GFS' balance sheet.
· The
NPLs to gross loans ratio reduced to 1.9% as at 31 March 2024 (down
50 bps y-o-y and down 40 bps q-o-q). The decrease was mainly driven
by Ameriabank acquisition. Additionally, a decrease was recorded in
GFS to 2.1% as at 31 March 2024 (down 30 bps y-o-y and down 10 bps
q-o-q).
·
The Group-level and the Armenian Financial
Services ('AFS') NPL coverage ratios in the table below have been
adjusted to include the NPLs and respective ECL of standalone
Ameriabank. The adjusted NPL coverage ratios have been broadly
stable. The unadjusted NPL coverage ratio stood at 59.3% as at 31
March 2024 on the consolidated level as Ameriabank's loan book was
consolidated at fair value, which implies including pre-acquisition
ECL in initial gross balance of the loan portfolio recognised at
consolidation, thus impacting the NPL coverage ratio.
GEL thousands, unless otherwise
noted
|
Mar-24
|
Mar-23
|
Change
y-o-y
|
Dec-23
|
Change
q-o-q
|
NON-PERFORMING LOANS
|
|
|
|
|
|
NPLs (in GEL thousands)
|
537,929
|
423,181
|
27.1%
|
467,656
|
15.0%
|
NPLs to gross loans
|
1.9%
|
2.4%
|
|
2.3%
|
|
NPLs to gross loans,
GFS
|
2.1%
|
2.4%
|
|
2.2%
|
|
NPLs to gross loans,
AFS
|
1.1%
|
-
|
|
-
|
|
NPL coverage
ratio[7]
|
72.3%
|
72.8%
|
|
69.2%
|
|
NPL coverage
ratio, GFS
|
68.2%
|
70.5%
|
|
68.7%
|
|
NPL coverage
ratio, AFS8
|
83.2%
|
-
|
|
-
|
|
NPL coverage ratio adjusted for the
discounted value of collateral8
|
127.9%
|
128.7%
|
|
117.6%
|
|
NPL coverage
ratio adjusted for the discounted value of collateral,
GFS
|
116.8%
|
126.7%
|
|
117.1%
|
|
NPL coverage
ratio adjusted for the discounted value of collateral,
AFS8
|
166.4%
|
-
|
|
-
|
|
Deposits
· Client
deposits and notes amounted to GEL 28,330.5m as at 31 March 2024
(up 54.7% y-o-y and up 38.0% q-o-q). The growth was driven
by deposit growth in GFS (see page 10) as well as the Ameriabank
acquisition.
Capital return
· Bank
of Georgia Group PLC has confirmed that the final dividend of GEL
4.94 per ordinary share will be put to
shareholder approval at the AGM on 17 June 2024. If the final
dividend of GEL 4.94 per ordinary share is approved
by shareholders at the AGM, the following dividend
timetable will apply:
o Ex-dividend date: 4 July 2024
o Record date: 5 July 2024
o Currency conversion date: 5 July 2024
o Payment date: 19 July 2024
· The
share buyback and cancellation programme is ongoing. As of 26 May
2024, the total number of shares cancelled since the launch of the
Buyback Programme in August 2023 was 718,792. As of 26 May 2024, c.
GEL 53 million of the existing buyback and cancellation programme
remained to be completed.
Segment Results
Following the acquisition of
Ameriabank in March 2024, the Group changed its segmentation. The
Group currently has three segments: 1) Georgian Financial Services
('GFS'), 2)
Armenian Financial Services ('AFS'), and 3) Other
Businesses.
Georgia Financial Services (GFS)
Georgian Financial Services ('GFS') mainly comprises JSC Bank
of Georgia and investment bank JSC Galt and
Taggart.
GEL thousands
|
1Q24
|
1Q23
|
Change
y-o-y
|
4Q23
|
Change
q-o-q
|
|
INCOME STATEMENT HIGHLIGHTS
|
|
|
|
|
|
|
Interest income
|
745,942
|
614,352
|
21.4%
|
725,981
|
2.7%
|
|
Interest expense
|
(327,130)
|
(261,397)
|
25.1%
|
(317,814)
|
2.9%
|
|
Net
interest income
|
422,429
|
360,988
|
17.0%
|
412,651
|
2.4%
|
|
Net fee and commission
income
|
107,351
|
110,626
|
-3.0%
|
113,455
|
-5.4%
|
|
Net foreign currency gain
|
81,630
|
59,330
|
37.6%
|
86,946
|
-6.1%
|
|
Net other income
|
7,378
|
7,873
|
-6.3%
|
18,455
|
-60.0%
|
|
Operating income
|
618,788
|
538,817
|
14.8%
|
631,507
|
-2.0%
|
|
Salaries and other employee
benefits
|
(94,494)
|
(85,309)
|
10.8%
|
(102,615)
|
-7.9%
|
|
Administrative expenses
|
(41,678)
|
(32,595)
|
27.9%
|
(69,227)
|
-39.8%
|
|
Depreciation, amortisation and
impairment
|
(28,834)
|
(25,877)
|
11.4%
|
(32,836)
|
-12.2%
|
|
Other operating
expenses
|
(1,494)
|
(634)
|
135.6%
|
(1,514)
|
-1.3%
|
|
Operating expenses
|
(166,500)
|
(144,415)
|
15.3%
|
(206,192)
|
-19.3%
|
|
Profit from associates
|
211
|
218
|
-3.2%
|
254
|
-16.9%
|
|
Operating income before cost of risk
|
452,499
|
394,620
|
14.7%
|
425,569
|
6.3%
|
|
Cost of risk
|
(20,470)
|
(46,674)
|
-56.1%
|
(24,077)
|
-15.0%
|
|
Profit before income tax expense
|
432,029
|
347,946
|
24.2%
|
401,492
|
7.6%
|
|
Income tax expense
|
(61,657)
|
(48,696)
|
26.6%
|
(73,901)
|
-16.6%
|
|
Profit adjusted for one-off items
|
370,372
|
299,250
|
23.8%
|
326,067
|
13.6%
|
|
One-off in other
income[8]
|
-
|
-
|
-
|
1,524
|
-100.0%
|
|
Profit
|
370,372
|
299,250
|
23.8%
|
327,591
|
13.1%
|
|
|
|
|
|
|
|
|
BALANCE SHEET HIGHLIGHTS
|
|
|
|
|
|
|
Net loans and finance lease
receivables
|
20,159,475
|
16,446,712
|
22.6%
|
19,532,803
|
3.2%
|
|
Net loans and finance lease
receivables, LC
|
11,244,645
|
9,098,292
|
23.6%
|
10,838,243
|
3.7%
|
|
Net loans and finance lease
receivables, FC
|
8,914,830
|
7,348,420
|
21.3%
|
8,694,560
|
2.5%
|
|
Client deposits and notes
|
20,743,680
|
17,392,633
|
19.3%
|
19,535,071
|
6.2%
|
|
Client deposits and notes,
LC
|
9,714,090
|
7,451,822
|
30.4%
|
8,889,946
|
9.3%
|
|
Client deposits and notes,
FC
|
11,029,590
|
9,940,811
|
11.0%
|
10,645,125
|
3.6%
|
|
of which:
|
|
|
|
|
|
|
Time deposits
|
9,037,644
|
7,237,793
|
24.9%
|
8,022,208
|
12.7%
|
|
Time deposits, LC
|
4,776,010
|
3,660,752
|
30.5%
|
3,912,766
|
22.1%
|
|
Time deposits, FC
|
4,261,634
|
3,577,041
|
19.1%
|
4,109,442
|
3.7%
|
|
Current accounts and demand
deposits
|
11,706,036
|
10,154,840
|
15.3%
|
11,512,863
|
1.7%
|
|
Current accounts and demand deposits,
LC
|
4,938,080
|
3,791,070
|
30.3%
|
4,977,180
|
-0.8%
|
|
Current accounts and demand deposits,
FC
|
6,767,956
|
6,363,770
|
6.4%
|
6,535,683
|
3.6%
|
|
Total assets
|
31,139,405
|
26,483,581
|
17.6%
|
30,486,726
|
2.1%
|
|
Total liabilities
|
26,806,887
|
22,194,470
|
20.8%
|
25,673,690
|
4.4%
|
|
Total equity
|
4,332,518
|
4,289,111
|
1.0%
|
4,813,036
|
-10.0%
|
|
Risk-weighted assets (JSC Bank of
Georgia standalone)
|
24,090,667
|
19,629,458
|
22.7%
|
23,061,905
|
4.5%
|
|
|
|
|
|
|
|
|
KEY
RATIOS
|
|
|
|
|
|
|
ROAA
|
4.9%
|
4.6%
|
|
4.3%
|
|
|
ROAA (unadjusted)
|
4.9%
|
4.6%
|
|
4.3%
|
|
|
ROAE
|
31.2%
|
29.0%
|
|
27.4%
|
|
|
ROAE (unadjusted)
|
31.2%
|
29.0%
|
|
27.9%
|
|
|
Net interest margin
|
6.3%
|
6.4%
|
|
6.3%
|
|
|
Loan yield
|
12.5%
|
12.5%
|
|
12.5%
|
|
|
Loan yield, LC
|
15.0%
|
16.0%
|
|
15.3%
|
|
|
Loan yield, FC
|
9.2%
|
8.3%
|
|
8.9%
|
|
|
Cost of funds
|
5.2%
|
4.6%
|
|
5.0%
|
|
|
Cost of client deposits and
notes
|
4.3%
|
3.7%
|
|
4.4%
|
|
|
Cost of client deposits and notes,
LC
|
8.2%
|
8.3%
|
|
8.3%
|
|
|
Cost of client deposits and notes,
FC
|
1.0%
|
0.5%
|
|
0.8%
|
|
|
Cost of time deposits
|
6.8%
|
6.2%
|
|
6.7%
|
|
|
Cost of time deposits, LC
|
11.2%
|
11.0%
|
|
10.7%
|
|
|
Cost of time deposits, FC
|
2.3%
|
1.5%
|
|
2.0%
|
|
|
Cost of current accounts and demand
deposits
|
2.5%
|
2.0%
|
|
2.6%
|
|
|
Cost of current accounts and demand
deposits, LC
|
5.4%
|
5.6%
|
|
5.9%
|
|
|
Cost of current accounts and demand
deposits, FC
|
0.3%
|
0.0%
|
|
0.2%
|
|
|
Cost:income ratio
|
26.9%
|
26.8%
|
|
32.7%
|
|
|
Cost:income ratio
(unadjusted)
|
26.9%
|
26.8%
|
|
32.6%
|
|
|
Cost of credit risk ratio
|
0.3%
|
1.0%
|
|
0.4%
|
|
|
Performance highlights
· The
Group's performance in 1Q24, as discussed on pages 8 to 9, was
predominantly driven by Georgian Financial Services.
Portfolio highlights
From 1Q24 the Corporate Center was separated as a new
sub-segment of GFS. The Corporate Center mainly includes treasury
and custody operations. Previously, the Corporate Center's income
and expenses were allocated to the Retail, SME, and CIB segments.
The previous figures for the Retail, SME, and CIB segments have
been restated.
|
Portfolio highlights: net
loans and finance lease receivables
|
|
|
Mar-24
|
Mar-23
|
Change
y-o-y
|
Change y-o-y (constant
currency)
|
Dec-23
|
Change
q-o-q
|
Change q-o-q (constant
currency)
|
Total GFS
|
20,159,475
|
16,446,712
|
22.6%
|
20.0%
|
19,532,803
|
3.2%
|
3.5%
|
Retail
|
8,759,418
|
7,391,578
|
18.5%
|
17.3%
|
8,502,529
|
3.0%
|
3.2%
|
SME
|
4,657,299
|
4,090,877
|
13.8%
|
11.5%
|
4,550,840
|
2.3%
|
2.7%
|
CIB
|
6,736,852
|
4,964,257
|
35.7%
|
31.8%
|
6,479,434
|
4.0%
|
4.6%
|
Corporate Center
|
5,906
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Portfolio highlights:
customer deposits and notes
|
|
|
Mar-24
|
Mar-23
|
Change
y-o-y
|
Change y-o-y (constant
currency)
|
Dec-23
|
Change
q-o-q
|
Change q-o-q (constant
currency)
|
Total GFS
|
20,743,680
|
17,392,633
|
19.3%
|
16.2%
|
19,535,071
|
6.2%
|
6.4%
|
Retail
|
13,118,483
|
10,662,623
|
23.0%
|
19.0%
|
12,597,938
|
4.1%
|
4.4%
|
SME
|
1,833,361
|
1,469,031
|
24.8%
|
22.6%
|
1,876,967
|
-2.3%
|
-2.1%
|
CIB
|
5,371,904
|
4,632,573
|
16.0%
|
14.9%
|
5,030,564
|
6.8%
|
6.9%
|
Corporate Center
|
514,597
|
713,615
|
-27.9%
|
-27.9%
|
218,872
|
135.1%
|
135.1%
|
Eliminations
|
(94,665)
|
(85,209)
|
-
|
-
|
(189,270)
|
-
|
-
|
|
Loan portfolio quality: cost
of credit risk ratio
|
|
|
1Q24
|
1Q23
|
|
|
4Q23
|
|
|
Total GFS
|
0.3%
|
1.0%
|
|
|
0.4%
|
|
|
Retail
|
0.4%
|
2.2%
|
|
|
-0.1%
|
|
|
SME
|
0.5%
|
0.7%
|
|
|
0.6%
|
|
|
CIB
|
0.1%
|
-0.4%
|
|
|
1.0%
|
|
|
|
Loan portfolio quality: NPL
ratio
|
|
|
Mar-24
|
Mar-23
|
|
|
Dec-23
|
|
|
Total GFS
|
2.1%
|
2.4%
|
|
|
2.3%
|
|
|
Retail
|
1.8%
|
2.0%
|
|
|
1.9%
|
|
|
SME
|
3.6%
|
3.2%
|
|
|
3.6%
|
|
|
CIB
|
1.5%
|
2.4%
|
|
|
1.7%
|
|
|
· GFS's
net loans and finance lease receivables stood at GEL 20,159.5m (up
22.6% y-o-y and up 3.2% q-o-q) as at 31 March 2024. Both, the y-o-y
and the q-o-q growth was mainly driven by CIB, followed by Retail
and SME. On a constant currency basis, the loan book increased by
20.0% y-o-y and by 3.5% q-o-q.
· 55.8%
of the loan book was denominated in GEL at 31 March 2024 vs 55.3%
at 31 March 2023 and 55.5% at 31 December 2023.
· Client
deposits and notes stood at GEL 20,743.7m at 31 March 2024 (up
19.3% y-o-y and up 6.2% q-o-q). On a constant currency basis,
deposits increased by 16.2% y-o-y and by 6.4% q-o-q. The strong
y-o-y increase in deposits was mainly driven by time deposits,
followed by current accounts and demand deposits.
· The
share of GEL-denominated client deposits increased to 46.8% as at
31 March 2024 vs 42.8% at 31 March 2023 and 45.5% at 31 December
2023.
Liquidity
· Bank
of Georgia has maintained a strong liquidity position, with
IFRS-based NBG liquidity coverage ratio at 122.2% as at 31 March
2024 (129.8% as at 31 March 2023 and 125.2% as at 31 December
2023), and IFRS-based NBG net stable funding ratio at 125.7% as at
31 March 2024 (130.1% as at 31 March 2023 and 130.4% as at 31
December 2023).
Capital position
·
Bank of Georgia continues to operate with robust
capital adequacy levels. At 31 March 2024, the Bank's Basel III
CET1, Tier1, and Total capital ratios stood at 16.8%, 18.4%, and
21.2%, respectively, all comfortably above the minimum requirements
of 14.6%, 16.8%, 19.7%, respectively. The movement in capital
adequacy ratios in 1Q24 and the potential impact of a 10%
devaluation of GEL is as follows:
|
31 Dec 2023
|
1Q24
profit
|
Business
growth
|
Ameriabank
acquisition
|
Currency
impact
|
Capital
distribution
|
Capital facility
impact
|
31 Mar
2024
|
|
|
|
Buffer above min
requirement
|
Potential
impact
of a 10% GEL
devaluation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET 1 capital adequacy
|
18.2%
|
1.5%
|
-0.6%
|
-1.0%
|
0.0%
|
-1.4%
|
0.0%
|
16.8%
|
|
|
|
2.2%
|
-0.8%
|
Tier 1 capital adequacy
|
20.0%
|
1.5%
|
-0.6%
|
-1.0%
|
0.1%
|
-1.4%
|
0.0%
|
18.4%
|
|
|
|
1.6%
|
-0.8%
|
Total capital adequacy
|
22.1%
|
1.5%
|
-0.7%
|
-1.1%
|
0.1%
|
-1.4%
|
0.7%
|
21.2%
|
|
|
|
1.5%
|
-0.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
· On 9
April 2024, JSC Bank of Georgia successfully priced a US$
300,000,000 offering of 9.5% perpetual subordinated callable
additional tier 1 notes. On 22 March 2024, JSC Bank of Georgia
issued a notice that it will redeem all of aggregate principal
amount of the outstanding AT1 Notes issued in 2019 equal to US$
100,000,000 on 28 June 2024. The net effect of the redemption of
the outstanding US$ 100,000,000 notes and the issuance of new US$
300,000,000 notes is positive 2.3 ppts on Tier 1 and Total capital
ratios.
·
In March 2023, the Financial Stability Committee
at the NBG announced plans to set the cycle-neutral countercyclical
capital buffer (base rate) to, 1%. As planned, since 15 March 2024
the neutral countercyclical buffer was set at 0.25%. The buffer
will increase according the following schedule: 0.5% by 15 March
2025; 0.75% by 15 March 2026; 1% by 15 March 2027.
· Bank
of Georgia's minimum capital requirements for December 2024 are
expected to be 14.6%, 16.8% and 19.7% for CET 1 ratio, Tier 1
ratio, and Total capital ratio respectively.
Armenian Financial Services (AFS)
Armenian Financial Services (AFS) includes CJSC
Ameriabank
GEL thousands
|
Mar-24
|
BALANCE SHEET HIGHLIGHTS
|
|
Net loans and finance lease
receivables
|
6,832,907
|
Net loans and finance lease
receivables, LC
|
3,973,078
|
Net loans and finance lease
receivables, FC
|
2,859,829
|
Client deposits and notes
|
6,522,822
|
Client deposits and notes,
LC
|
3,126,961
|
Client deposits and notes,
FC
|
3,395,861
|
of which:
|
|
Time deposits
|
2,657,087
|
Time deposits, LC
|
1,129,358
|
Time deposits, FC
|
1,527,729
|
Current accounts and demand
deposits
|
3,865,735
|
Current accounts and demand deposits,
LC
|
1,997,603
|
Current accounts and demand deposits,
FC
|
1,868,132
|
Total assets
|
10,053,482
|
Total liabilities
|
8,621,025
|
Total equity
|
1,432,457
|
|
|
OPERATING HIGHLIGHTS[9]
|
|
Active retail customers
(thousands)
|
284
|
Monthly active digital users (Digital
MAU: retail customers, thousands)
|
180
|
Digital DAU/Digital MAU
|
39.7%
|
Active legal entities
(thousands)
|
42
|
Performance highlights
·
Ameriabank was consolidated for the first time as
of end of March 2024. Their full income statement and performance
ratios will be available from 2Q24 onwards. No income statement was
consolidated in these financial results due to the closing date of
the acquisition being 31 March 2024.
Portfolio highlights
· As at
31 March 2024, AFS had GEL 10,053.5m of total assets, GEL 8,621.0m
of total liabilities, and GEL 1,432.5m of total equity.
· Net
loans and finance lease receivables stood at GEL 6,832.9m as at 31
March 2024. 58.1% of loan book was denominated in Armenian
Drams.
· Client
deposits and notes stood at GEL 6,522.8m as at 31 March 2024. 47.9%
of client deposits and notes were denominated in Armenian
Drams.
Liquidity
· Ameriabank has a strong liquidity position, having LCR of
270.4% and NSFR of 129.8% as at 31 March 2024, well above the
minimum regulatory requirements of 100%. Notably, the LCR and NSFR
ratios are based on Central Bank of Armenia's accounting policies
and are not IFRS-based.
Capital position
· At 31
March 2024, Ameriabank's Basel III CET1, Tier1, and Total capital
ratios stood at 14.9%, 14.9%, and 17.6%, respectively, all above
the minimum requirements of 11.7%, 13.8%, 16.5%,
respectively.
|
31 Dec 2023
|
1Q24
profit
|
Business
growth
|
Currency
impact
|
Capital
distribution
|
Capital facility
impact
|
Other
|
31 Mar
2024
|
|
|
|
Buffer above min
requirement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET 1 capital adequacy
|
14.1%
|
0.8%
|
-0.3%
|
0.1%
|
0.0%
|
0.0%
|
0.2%
|
14.9%
|
|
|
|
3.2%
|
|
Tier 1 capital adequacy
|
14.1%
|
0.8%
|
-0.3%
|
0.1%
|
0.0%
|
0.0%
|
0.2%
|
14.9%
|
|
|
|
1.1%
|
|
Total capital adequacy
|
16.8%
|
0.8%
|
-0.3%
|
0.1%
|
0.0%
|
0.0%
|
0.2%
|
17.6%
|
|
|
|
1.1%
|
|
Ameriabank: standalone financial information (not
included in consolidated results)
The following table is presented for information purposes only
to show the performance of Ameriabank in the first quarter of 2024.
It has been prepared consistently with the accounting policies
adopted by the Group in preparing its consolidated financial
statements.
GEL thousands
|
1Q24
|
1Q23
|
Change
y-o-y
|
4Q23
|
Change
q-o-q
|
INCOME STATEMENT HIGHLIGHTS
|
|
|
|
|
|
Interest income
|
217,180
|
172,846
|
25.6%
|
213,712
|
1.6%
|
Interest expense
|
(78,188)
|
(62,410)
|
25.3%
|
(74,101)
|
5.5%
|
Net
interest income
|
138,992
|
110,436
|
25.9%
|
139,611
|
-0.4%
|
Net fee and commission
income
|
18,620
|
15,865
|
17.4%
|
21,124
|
-11.9%
|
Net foreign currency gain
|
31,125
|
36,963
|
-15.8%
|
45,920
|
-32.2%
|
Net other income
|
1,648
|
541
|
NMF
|
(4,697)
|
NMF
|
Operating income
|
190,385
|
163,805
|
16.2%
|
201,958
|
-5.7%
|
Salaries and other employee
benefits
|
(65,158)
|
(50,434)
|
29.2%
|
(62,352)
|
4.5%
|
Administrative expenses
|
(12,761)
|
(10,108)
|
26.2%
|
(17,328)
|
-26.4%
|
Depreciation, amortisation and
impairment
|
(7,948)
|
(6,985)
|
13.8%
|
(7,436)
|
6.9%
|
Other operating
expenses
|
(1,121)
|
(1,269)
|
-11.7%
|
(4,499)
|
-75.1%
|
Operating expenses
|
(86,988)
|
(68,796)
|
26.4%
|
(91,615)
|
-5.1%
|
Profit from associates
|
-
|
-
|
-
|
-
|
-
|
Operating income before cost of risk
|
103,397
|
95,009
|
8.8%
|
110,343
|
-6.3%
|
Cost of risk
|
(310)
|
(2,096)
|
-85.2%
|
(9,019)
|
-96.6%
|
Profit before income tax expense
|
103,087
|
92,913
|
11.0%
|
101,324
|
1.7%
|
Income tax expense
|
(18,826)
|
(16,896)
|
11.4%
|
(22,918)
|
-17.9%
|
Profit
|
84,261
|
76,017
|
10.8%
|
78,406
|
7.5%
|
|
|
|
|
|
|
· Operating income in 1Q24 amounted to GEL 190.4m (up 16.2%
y-o-y and down 5.7% q-o-q). The y-o-y growth was mainly driven by
strong net interest income generation, while the q-o-q decrease was
mainly attributable to the seasonally slower first quarter.
· Operating expenses in 1Q24 were up 26.4% y-o-y and down 5.1%
q-o-q to GEL 87.0m. The y-o-y increase in operating expenses was
mainly driven by business growth, resulting in higher staff count
and investments in business development.
· Cost
of credit risk ratio improved during the first quarter, driven by
improved customer default statistics and upgraded macroeconomic
forecasts.
· Overall, profit in 1Q24 amounted to GEL 84.3m (up 10.8% y-o-y
and up 7.5% q-o-q) and ROAE[10]
posted in 1Q24 stood at 24.8%.
· Loan
book grew by 31.8% y-o-y and by 4.0% q-o-q in 1Q24, and client
deposits and notes were up 16.2% y-o-y and up 8.0% q-o-q in
1Q24.
Other Businesses
The segment 'Other
Businesses' includes JSC Belarusky
Narodny Bank (BNB) serving retail and SME clients in Belarus,
Digital Area - a digital ecosystem in Georgia including e-commerce,
ticketing, and inventory management SaaS, Bank of Georgia Group PLC
- the holding company, and other small entities and intragroup
eliminations.
GEL thousands
|
1Q24
|
1Q23
|
Change
y-o-y
|
4Q23
|
Change
q-o-q
|
|
INCOME STATEMENT HIGHLIGHTS
|
|
|
|
|
|
|
Interest income
|
19,831
|
15,810
|
25.4%
|
18,825
|
5.3%
|
|
Interest expense
|
(4,440)
|
(4,941)
|
-10.1%
|
(3,814)
|
16.4%
|
|
Net
interest income
|
15,391
|
10,912
|
41.0%
|
15,010
|
2.5%
|
|
Net fee and commission
income
|
451
|
1,675
|
-73.1%
|
611
|
-26.2%
|
|
Net foreign currency gain
|
8,910
|
11,322
|
-21.3%
|
10,305
|
-13.5%
|
|
Net other income
|
415
|
783
|
-47.0%
|
1,329
|
-68.8%
|
|
Operating income
|
25,167
|
24,692
|
1.9%
|
27,255
|
-7.7%
|
|
Salaries and other employee
benefits
|
(10,056)
|
(10,630)
|
-5.4%
|
(11,329)
|
-11.2%
|
|
Administrative expenses
|
(6,702)
|
(6,758)
|
-0.8%
|
(5,201)
|
28.9%
|
|
Depreciation, amortisation and
impairment
|
(2,657)
|
(2,209)
|
20.3%
|
(2,295)
|
15.8%
|
|
Other operating
expenses
|
(362)
|
(157)
|
130.6%
|
(188)
|
92.6%
|
|
Operating expenses
|
(19,777)
|
(19,754)
|
0.1%
|
(19,013)
|
4.0%
|
|
Profit from associates
|
(113)
|
-
|
-
|
-
|
-
|
|
Operating income before cost of risk
|
5,277
|
4,938
|
6.9%
|
8,242
|
-36.0%
|
|
Cost of risk
|
(2,529)
|
(1,624)
|
55.7%
|
(3,733)
|
-32.3%
|
|
Net
operating income before non-recurring items
|
2,748
|
3,314
|
-17.1%
|
4,509
|
-39.1%
|
|
Net non-recurring
items
|
-
|
(60)
|
-100.0%
|
-
|
-
|
|
Profit before income tax expense
|
2,748
|
3,254
|
-15.6%
|
4,509
|
-39.1%
|
|
Income tax expense
|
(2,292)
|
(1,175)
|
95.1%
|
(1,990)
|
15.2%
|
|
Profit adjusted for one-off costs
|
456
|
2,079
|
-78.1%
|
2,519
|
-81.9%
|
|
|
|
|
|
|
|
|
BALANCE SHEET HIGHLIGHTS
|
|
|
|
|
|
|
Net loans and finance lease
receivables
|
706,435
|
546,132
|
29.4%
|
699,918
|
0.9%
|
|
Client deposits and notes
|
1,064,011
|
916,895
|
16.0%
|
987,668
|
7.7%
|
|
of which:
|
|
|
|
|
|
|
Time deposits
|
319,831
|
252,437
|
26.7%
|
302,076
|
5.9%
|
|
Current accounts and demand
deposits
|
744,180
|
664,458
|
12.0%
|
685,592
|
8.5%
|
|
Total assets
|
1,252,667
|
1,219,501
|
2.7%
|
1,270,832
|
-1.4%
|
|
Total liabilities
|
985,204
|
1,015,228
|
-3.0%
|
1,064,032
|
-7.4%
|
|
Total equity
|
267,463
|
204,273
|
30.9%
|
206,800
|
29.3%
|
|
In 1Q24 Other Businesses recorded a
GEL 0.5m profit (down 78.1% y-o-y and down 81.9% q-o-q). BNB's
standalone profit amounted to GEL 5.8 million in 1Q24, up 47.6%
y-o-y and down 8.4% q-o-q.
BNB's capital ratios, calculated in
accordance with the National Bank of the Republic of Belarus'
standards, were above the minimum requirements at 31 March 2024:
Tier 1 capital adequacy ratio at 11.2% (minimum requirement of
7.0%) and Total capital adequacy ratio at 13.9% (minimum
requirement of 12.5%).
Consolidated financial information
GEL thousands
|
1Q24
|
1Q23
|
Change
y-o-y
|
4Q23
|
Change
q-o-q
|
|
INCOME STATEMENT HIGHLIGHTS
|
|
|
|
|
|
|
Interest income
|
765,773
|
630,162
|
21.5%
|
744,806
|
2.8%
|
|
Interest expense
|
(327,953)
|
(258,262)
|
27.0%
|
(317,145)
|
3.4%
|
|
Net
interest income
|
437,820
|
371,900
|
17.7%
|
427,661
|
2.4%
|
|
Fee and commission
income
|
182,384
|
186,015
|
-2.0%
|
185,957
|
-1.9%
|
|
Fee and commission
expense
|
(74,582)
|
(73,714)
|
1.2%
|
(71,891)
|
3.7%
|
|
Net
fee and commission income
|
107,802
|
112,301
|
-4.0%
|
114,066
|
-5.5%
|
|
Net foreign currency gain
|
90,540
|
70,652
|
28.1%
|
97,251
|
-6.9%
|
|
Net other
income without one-off income
|
7,793
|
8,656
|
-10.0%
|
18,260
|
-57.3%
|
|
One-off
other income
|
-
|
-
|
-
|
1,524
|
-
|
|
Net
other income
|
7,793
|
8,656
|
-10.0%
|
19,784
|
-60.6%
|
|
Operating income
|
643,955
|
563,509
|
14.3%
|
658,762
|
-2.2%
|
|
Salaries and other employee
benefits
|
(106,311)
|
(95,939)
|
10.8%
|
(113,944)
|
-6.7%
|
|
Administrative expenses
|
(48,380)
|
(39,353)
|
22.9%
|
(74,428)
|
-35.0%
|
|
Depreciation, amortisation and
impairment
|
(31,491)
|
(28,086)
|
12.1%
|
(35,131)
|
-10.4%
|
|
Other operating
expenses
|
(1,856)
|
(791)
|
134.6%
|
(1,702)
|
9.0%
|
|
Operating expenses
|
(188,038)
|
(164,169)
|
14.5%
|
(225,205)
|
-16.5%
|
|
Gain on bargain purchase
|
685,888
|
-
|
-
|
-
|
-
|
|
Acquisition-related costs
|
(17,102)
|
-
|
-
|
-
|
-
|
|
Profit from associates
|
98
|
218
|
-55.0%
|
254
|
-61.4%
|
|
Operating income before cost of risk
|
1,124,801
|
399,558
|
181.5%
|
433,811
|
159.3%
|
|
Expected credit loss on loans to
customers
|
(17,344)
|
(43,096)
|
-59.8%
|
(18,546)
|
-6.5%
|
|
Expected credit loss on finance lease
receivables
|
(172)
|
(259)
|
-33.6%
|
(1,513)
|
-88.6%
|
|
Other expected credit loss and
impairment charge on other assets and provisions
|
(5,483)
|
(4,943)
|
10.9%
|
(7,751)
|
-29.3%
|
|
Cost
of risk
|
(22,999)
|
(48,298)
|
-52.4%
|
(27,810)
|
-17.3%
|
|
Net
operating income before non-recurring items
|
1,101,802
|
351,260
|
213.7%
|
406,001
|
171.4%
|
|
Net non-recurring
items
|
-
|
(60)
|
-100.0%
|
-
|
-
|
|
Profit before income tax expense
|
1,101,802
|
351,200
|
213.7%
|
406,001
|
171.4%
|
|
Income tax expense
|
(63,949)
|
(49,871)
|
28.2%
|
(75,891)
|
-15.7%
|
|
Profit
|
1,037,853
|
301,329
|
244.4%
|
330,110
|
214.4%
|
|
Attributable to:
|
|
|
|
|
|
|
- shareholders of
the Group
|
1,036,235
|
300,048
|
245.4%
|
328,623
|
215.3%
|
|
- non-controlling
interests
|
1,618
|
1,281
|
26.3%
|
1,487
|
8.8%
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
23.53
|
6.55
|
259.2%
|
7.53
|
212.5%
|
|
Diluted earnings per share
|
23.23
|
6.44
|
260.7%
|
7.31
|
217.8%
|
|
|
|
|
|
|
|
|
GEL thousands
|
Mar-24
|
Mar-23
|
Change
y-o-y
|
Dec-23
|
Change
q-o-q
|
BALANCE SHEET HIGHLIGHTS
|
|
|
|
|
|
Cash and cash equivalents
|
3,154,044
|
2,661,659
|
18.5%
|
3,101,824
|
1.7%
|
Amounts due from credit
institutions
|
2,382,079
|
2,180,151
|
9.3%
|
1,752,657
|
35.9%
|
Investment securities
|
7,218,707
|
4,571,855
|
57.9%
|
5,129,757
|
40.7%
|
Investment securities pledged under
sale and repurchase agreements
|
87,063
|
-
|
-
|
-
|
-
|
Loans to customers and finance lease
receivables
|
27,698,817
|
16,992,844
|
63.0%
|
20,232,721
|
36.9%
|
Accounts receivable and other
loans
|
5,924
|
25,481
|
-76.8%
|
47,562
|
-87.5%
|
Prepayments
|
90,986
|
47,417
|
91.9%
|
37,511
|
142.6%
|
Foreclosed assets
|
301,959
|
151,621
|
99.2%
|
271,712
|
11.1%
|
Right-of-use assets
|
242,560
|
116,490
|
108.2%
|
138,695
|
74.9%
|
Investment properties
|
128,511
|
155,301
|
-17.3%
|
124,068
|
3.6%
|
Property and equipment
|
517,156
|
405,838
|
27.4%
|
436,955
|
18.4%
|
Goodwill
|
41,253
|
33,351
|
23.7%
|
41,253
|
0.0%
|
Intangible assets
|
269,416
|
157,292
|
71.3%
|
167,862
|
60.5%
|
Income tax assets
|
2,591
|
1,344
|
92.8%
|
2,520
|
2.8%
|
Other assets
|
283,732
|
172,398
|
64.6%
|
245,072
|
15.8%
|
Assets held for sale
|
20,756
|
30,040
|
-30.9%
|
27,389
|
-24.2%
|
Total assets
|
42,445,554
|
27,703,082
|
53.2%
|
31,757,558
|
33.7%
|
Client deposits and notes
|
28,330,513
|
18,309,528
|
54.7%
|
20,522,739
|
38.0%
|
Amounts owed to credit
institutions
|
5,626,533
|
3,805,154
|
47.9%
|
5,156,009
|
9.1%
|
Debt securities issued
|
1,330,631
|
607,910
|
118.9%
|
421,359
|
NMF
|
Lease liability
|
247,006
|
110,917
|
122.7%
|
141,934
|
74.0%
|
Accruals and deferred
income
|
175,294
|
106,887
|
64.0%
|
129,355
|
35.5%
|
Income tax liabilities
|
143,142
|
122,607
|
16.7%
|
199,058
|
-28.1%
|
Other liabilities
|
559,997
|
146,695
|
NMF
|
167,268
|
NMF
|
Total liabilities
|
36,413,116
|
23,209,698
|
56.9%
|
26,737,722
|
36.2%
|
Share capital
|
1,504
|
1,550
|
-3.0%
|
1,506
|
-0.1%
|
Additional paid-in capital
|
433,277
|
486,418
|
-10.9%
|
465,009
|
-6.8%
|
Treasury shares
|
(73)
|
(55)
|
32.7%
|
(71)
|
2.8%
|
Capital redemption reserve
|
114
|
68
|
67.6%
|
112
|
1.8%
|
Other reserves
|
51,912
|
24,689
|
110.3%
|
21,385
|
142.7%
|
Retained earnings
|
5,525,052
|
3,962,225
|
39.4%
|
4,510,780
|
22.5%
|
Total equity attributable to shareholders of the
Group
|
6,011,786
|
4,474,895
|
34.3%
|
4,998,721
|
20.3%
|
Non-controlling interests
|
20,652
|
18,489
|
11.7%
|
21,115
|
-2.2%
|
Total equity
|
6,032,438
|
4,493,384
|
34.3%
|
5,019,836
|
20.2%
|
Total liabilities and equity
|
42,445,554
|
27,703,082
|
53.2%
|
31,757,558
|
33.7%
|
Book
value per share
|
135.96
|
98.51
|
38.0%
|
114.62
|
18.6%
|
KEY
RATIOS
|
|
|
|
|
Profitability[11]
|
1Q24
|
1Q23
|
4Q23
|
|
ROAA[12]
|
4.7%
|
4.4%
|
4.2%
|
|
ROAA (unadjusted)
|
13.2%
|
4.4%
|
4.2%
|
|
ROAE[13]
|
27.7%
|
27.9%
|
26.7%
|
|
ROAE (unadjusted)
|
78.1%
|
27.9%
|
26.8%
|
|
Net interest
margin[14]
|
6.4%
|
6.4%
|
6.3%
|
|
Loan yield13
|
12.4%
|
12.5%
|
12.4%
|
|
Liquid assets
yield13
|
5.3%
|
4.3%
|
5.0%
|
|
Cost of funds13
|
5.0%
|
4.5%
|
4.9%
|
|
Cost of client deposits and
notes13
|
4.2%
|
3.6%
|
4.2%
|
|
Cost of amounts owed to credit
institutions13
|
8.5%
|
8.3%
|
7.7%
|
|
Cost of debt securities
issued13
|
9.3%
|
7.2%
|
9.3%
|
|
Operating leverage, Y-o-Y
|
-0.3%
|
23.7%
|
-12.0%
|
|
Operating leverage, Q-o-Q
|
14.5%
|
5.7%
|
-19.2%
|
|
Cost:income ratio
|
29.2%
|
29.1%
|
34.3%
|
|
Cost:income ratio
(unadjusted)
|
29.2%
|
29.1%
|
34.2%
|
|
Asset quality:
|
|
|
|
|
NPLs (in GEL thousands)
|
537,929
|
423,181
|
467,656
|
|
NPLs to gross loans
|
1.9%
|
2.4%
|
2.3%
|
|
NPL coverage ratio
|
59.3%
|
72.8%
|
69.2%
|
|
NPL coverage ratio
(adjusted)[15]
|
72.3%
|
72.8%
|
69.2%
|
|
NPL coverage ratio adjusted for the
discounted value of collateral
|
120.1%
|
128.7%
|
117.6%
|
|
NPL coverage ratio adjusted for the
discounted value of collateral (adjusted)14
|
127.9%
|
128.7%
|
117.6%
|
|
Cost of credit risk
ratio13
|
0.3%
|
1.0%
|
0.4%
|
|
Liquidity
|
|
|
|
|
IFRS-based NBG liquidity coverage
ratio (Bank of Georgia)
|
122.2%
|
129.8%
|
125.2%
|
|
Liquid assets to total
liabilities
|
27.4%
|
40.6%
|
37.3%
|
|
Net loans to client deposits and
notes
|
97.8%
|
92.8%
|
98.6%
|
|
Net loans to client deposits and
notes + DFIs
|
90.8%
|
85.0%
|
89.3%
|
|
Leverage (times)
|
6.0
|
5.2
|
5.3
|
|
Capital adequacy (Bank of Georgia)
|
|
|
|
|
IFRS-based NBG (Basel III) CET 1
capital adequacy ratio
|
16.8%
|
19.5%
|
18.2%
|
|
Minimum regulatory
requirement
|
14.6%
|
14.5%
|
14.5%
|
|
IFRS-based NBG (Basel III) Tier 1
capital adequacy ratio
|
18.4%
|
21.4%
|
20.0%
|
|
Minimum regulatory
requirement
|
16.8%
|
16.8%
|
16.7%
|
|
IFRS-based NBG (Basel III) Total
capital adequacy ratio
|
21.2%
|
23.3%
|
22.1%
|
|
Minimum regulatory
requirement
|
19.7%
|
19.7%
|
19.6%
|
|
Capital adequacy (Ameriabank)
|
|
|
|
|
CBA (Basel III) CET 1 capital
adequacy ratio
|
14.9%
|
-
|
-
|
|
Minimum regulatory
requirement
|
11.7%
|
-
|
-
|
|
CBA (Basel III) Tier 1 capital
adequacy ratio
|
14.9%
|
-
|
-
|
|
Minimum regulatory
requirement
|
13.8%
|
-
|
-
|
|
CBA (Basel III) Total capital
adequacy ratio
|
17.6%
|
-
|
-
|
|
Minimum regulatory
requirement
|
16.5%
|
-
|
-
|
|
FX
rates
|
|
|
|
|
GEL/US$ exchange rate
(period-end)
|
2.6953
|
2.5604
|
2.6894
|
|
GEL/GBP exchange rate
(period-end)
|
3.4007
|
3.1624
|
3.4228
|
|
GEL/AMD exchange rate
(period-end)
|
0.0068
|
0.0066
|
0.0067
|
|
Shares outstanding
|
|
|
|
|
Ordinary shares outstanding
(period-end)
|
44,217,045
|
45,428,046
|
43,610,758
|
|
Treasury shares outstanding
(period-end)
|
1,492,057
|
1,664,487
|
2,155,535
|
|
Total shares outstanding
(period-end)
|
45,709,102
|
47,092,533
|
45,766,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional non-financial information
Employees (period-end)
|
Mar-24
|
Mar-23
|
Change
y-o-y
|
Dec-23
|
Change
q-o-q
|
Bank of Georgia
(standalone)
|
7,699
|
6,795
|
13.3%
|
7,435
|
3.6%
|
Ameriabank
|
1,835
|
N/A
|
N/A
|
N/A
|
N/A
|
Other
|
1,994
|
1,836
|
8.6%
|
1,963
|
1.6%
|
Group
|
11,528
|
8,631
|
33.6%
|
9,398
|
22.7%
|
Branch network (period-end)
|
Mar-24
|
Mar-23
|
Change y-o-y
|
Dec-23
|
Change
q-o-q
|
Bank of Georgia
|
185
|
206
|
-10.7%
|
189
|
-2.6%
|
Of
which:
|
|
|
|
|
|
Full-scale branches
|
94
|
88
|
6.8%
|
91
|
3.3%
|
Transactional branches
|
91
|
118
|
-23.7%
|
98
|
-8.2%
|
Ameriabank
|
26
|
N/A
|
N/A
|
N/A
|
N/A
|
Glossary
Strategic terms
§ Active merchant
At least one transaction executed within the past
month
§ Active POS
terminal At least one transaction
executed within the past month
§ MAU (Monthly active user -
retail or business) Number of
customers who satisfied pre-defined activity criteria within the
past month
§ Digital monthly active user
(Digital MAU) Number of retail
customers who logged into our mBank/iBank/sCoolApp at least once
within the past month; when referring to business customers,
Digital MAU means number of business customers who logged into our
Business mBank/iBank at least once within the past month
§ Digital daily active user
(Digital DAU) Average daily number
of retail customers who logged into our mBank/iBank/sCoolApp at
least one within the past month
§ Payment MAU
Number of retail customers who made at least one
payment with a BOG card within the past month
§ Net Promoter Score
(NPS) NPS asks: on a scale of 0-10,
how likely is it that you would recommend Bank of Georgia to a
friend or a colleague? The responses: 9 and 10 - are promoters; 7
and 8 - are neutral; 1 to 6 - are detractors. The final score
equals the percentage of the promoters minus the percentage of the
detractors.
Ratio definitions and abbreviations
§ Alternative performance
measures (APMs) In this announcement
the management uses various APMs, which we 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 the management
to evaluate the Group's operating performance and make day-to-day
operating decisions
§ Basic
earnings per
share Profit for the period
attributable to shareholders of the Group divided by the weighted
average number of outstanding ordinary shares over the same
period
§ Book
value per
share Total equity attributable to
shareholders of the Group divided by ordinary shares outstanding at
period-end; Ordinary shares outstanding at period-end equals number
of ordinary shares at period-end less number of treasury shares at
period-end
§ CBA
Central Bank of Armenia
§ Cost of credit risk
ratio Expected loss on 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 (annualised where
applicable)
§ Cost of
deposits Interest expense on client
deposits and notes for the period divided by monthly average client
deposits and notes over the same period (annualised where
applicable)
§ Cost of funds
Interest expense for the period divided by monthly
average interest-bearing liabilities over the same period
(annualised where applicable)
§ Cost to income
ratio Operating expenses divided by
operating income
§ FC Foreign currency
§ Interest-bearing
liabilities Amounts owed 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
§ LC Local currency
§ 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
divided by net cash outflows over the next 30 days (as defined by
the NBG). Calculations are made for Bank of
Georgia standalone, based on IFRS
§ Loan yield
Interest income from 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 (annualised where applicable)
§ NBG
National Bank of Georgia
§ NBG (Basel III) Common Equity
Tier 1 (CET1) capital adequacy ratio Common Equity Tier 1 capital divided by total risk weighted
assets, both calculated in accordance with the requirements of the
NBG. Calculations are made for Bank of
Georgia standalone, based on IFRS
§ NBG (Basel III) Tier 1
capital adequacy ratio Tier 1
capital divided by total risk weighted assets, both calculated in
accordance with the requirements of the NBG. Calculations
are made for Bank of Georgia standalone,
based on IFRS
§ 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 NBG. Calculations
are made for Bank of Georgia standalone,
based on IFRS
§ Net interest margin
(NIM) Net interest income for the
period divided by monthly average interest earning assets excluding
cash and cash equivalents and corporate shares over the same period
(annualised where applicable)
§ Net stable funding ratio
(NSFR) Available amount of stable
funding divided by the required amount of stable funding (as
defined by the NBG). Calculations are made
for Bank of Georgia standalone, based on IFRS
§ Non-performing loans
(NPLs) The principal and/or interest
payments on loans overdue for more than 90 days; or the exposures
experiencing substantial deterioration of their creditworthiness
and the debtors assessed as unlikely to pay their credit
obligation(s) in full without realisation of collateral
§ NPL coverage
ratio Allowance for expected credit
loss of loans and finance lease receivables divided by
NPLs
§ NPL coverage ratio adjusted
for discounted value of collateral Allowance for expected credit loss of loans and finance lease
receivables divided by NPLs (discounted value of collateral is
added back to allowance for expected credit loss)
§ One-off items
Significant items that do not arise during the
ordinary course of business
§ 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
(annualised where applicable)
§ 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 (annualised where applicable)
§ NMF
Not meaningful
Constant currency basis
To calculate the q-o-q growth of
loans and deposits without the currency exchange rate effect, we
used the relevant exchange rates as of 31 December 2023. To
calculate the y-o-y growth without the currency exchange rate
effect, we used the relevant exchange rates as of 31 March
2023.
Bank of Georgia Group PLC profile
Bank of Georgia Group PLC (the
"Company" or the
"Group" when referring to
the group companies as a whole) is a FTSE 250 holding company whose
subsidiaries provide banking and financial services focused in the
high-growth Georgian and Armenian markets through leading,
customer-centric, universal banks - Bank of Georgia in Georgia and
Ameriabank in Armenia. By building on our competitive strengths, we
are committed to driving business growth, sustaining high
profitability, and generating strong returns, while creating
opportunities for our stakeholders and making a positive
contribution in the communities where we operate.
Bank of Georgia Group PLC's ordinary
shares trade on the London Stock Exchange's main market for listed
securities and are listed on the premium listing segment of
the Official List. Ticker: "BGEO.LN"
Legal entity identifier:
213800XKDG12NQG8VC53
Registered address:
29 Farm Street, London, W1J 5RL, United Kingdom;
Registered under number 10917019 in England and Wales
Company secretary:
Computershare Company Secretarial Services Limited
(The Pavilions Bridgwater Road, Bristol BS13 8FD, United
Kingdom)
Registrar: Computershare Investor Services PLC (The Pavilions Bridgwater
Road, Bristol BS99 6ZZ, 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.uk.computershare.com/Investor/#Home
Investor Centre Shareholder
Helpline: +44 (0)370 873 5866
Auditors: Ernst & Young LLP
(25 Churchill Place Canary Wharf, London E14 5EY, United
Kingdom)
Contacts:
Email: ir@bgeo.com
Telephone: +44(0) 203 178
4052
Michael Oliver (Advisor to the
CEO): moliver@bgeo.com; +44 203 178 4034
Nini Arshakuni (Head of Investor
Relations): narshakuni@bog.ge; +995 322 444 444 (7515)
Further information
For more on results publications, go
to Results Centre on www.bankofgeorgiagroup.com/results/earnings
For more on investor information, go
to www.bankofgeorgiagroup.com/information/shareholder
For news updates, go to
www.bankofgeorgiagroup.com/news
For share price information, go
to www.bankofgeorgiagroup.com/information/share-price
Earnings call on 29 May 2024, 14:00 BST
https://bankofgeorgia.zoom.us/j/95127802673?pwd=bzl6VndQMzlVN2tTb1RoVCtlSGtBZz09
Webinar ID: 951 2780
2673
Passcode: 816902
1Q24 Results
Bank of Georgia Group PLC announces
the Group's consolidated financial results for the first quarter of
2024. Unless otherwise noted, numbers in this announcement are
given for 1Q24 and the year-on-year comparisons are with 1Q23 and
the q-o-q comparisons are with 4Q23. The results are based on
International Financial Reporting Standards ("IFRS") as adopted by the United
Kingdom, are unaudited and derived from management
accounts.
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: macro risk, including
domestic instability; geopolitical risk; credit risk;
liquidity and funding risk; capital risk; market risk; regulatory
and legal risk; conduct risk; financial crime risk; information
security and data protection risks; operational risk; human capital
risk; model risk; strategic risk; reputational risk;
climate-related risk; and other key factors that could adversely
affect our business and financial performance, as indicated
elsewhere in this document and in 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 2023. 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.