TIDMBGEO
RNS Number : 4538Q
Bank of Georgia Group PLC
19 February 2019
Bank of Georgia
Group PLC
4(th) quarter and full year 2018
preliminary 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, b)
corporate investment banking and wealth management operations, 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.
About this Announcement
Bank of Georgia Group PLC announces the Group's fourth quarter
2018 and full year 2018 consolidated results. Unless otherwise
noted, numbers are for 4Q18 and comparisons are with 4Q17. The
results are based on International Financial Reporting Standards
("IFRS") as adopted by the European Union, are unaudited and
derived from management accounts.
The information in this Announcement in respect of full year
2018 preliminary results, which was approved by the Board of
Directors on 18 February 2019, does not constitute statutory
accounts as defined in Section 435 of the UK Companies Act 2006.
Company's and BGEO Group PLC's financial statements for the year
ended 31 December 2017 were filed with the Registrar of Companies,
and the audit reports were unqualified and contained no statements
in respect of Sections 498 (2) or (3) of the UK Companies Act 2006.
Bank of Georgia Group PLC's financial statements for the year ended
31 December 2018 will be included in the Annual Report and Accounts
to be published in March 2019 and filed with the Registrar of
Companies in due course.
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 2Q18 and 1H18 results announcement and in BGEO Group
PLC's Annual Report and Accounts 2017. 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.
CONTENT
4 4Q18 and FY18 Results Highlights
6 Chief Executive Officer's Statement
8 Financial Summary
10 Discussion of Results
14 Discussion of Segment Results
14 Retail Banking
18 Corporate Investment Banking
21 Selected Financial and Operating Information
26 Annex
27 4Q18 and FY18 Results Conference Call Details
28 Company Information
Group Demerger
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" line as a single amount in the
consolidated income statement. In line with IFRS, comparative
periods have been accordingly restated to reflect the
reclassification of the Investment Business from "continuing
operations" into "discontinued operations".
Transition to IFRS 9 Financial Instruments
During 4Q18, the Group revisited and changed its loan write-off
policy as part of the IFRS 9 implementation programme: For
mortgages and other loans secured by real estate the number of
overdue days after which the balances are considered to be
irrecoverable and are to be written off has been increased from 365
to 1460 days. This resulted in following:
1) Reinstatement of net loans to customers previously
written-off in the amount of GEL 25.0 million as at 1 January 2018,
the transition date to IFRS 9, which offsets the previously
reported increase in loan loss provision at transition date.
Therefore, the final impact recognised as a result of IFRS 9
adoption following the policy change as a reduction to
shareholders' equity at the transition date amounted to GEL 6.5mln,
gross of income tax (GEL 4.3mln, net of income tax)
2) In addition, the change in loan write-off policy resulted in
the reinstatement of additional GEL 12.6mln net loan to customers
previously written-off during nine months of 2018
As a result, previously reported quarterly results of 2018 have
been restated for this change in write-off policy accordingly. The
restatement impact on the income statement for the nine months 2018
was GEL 1.5mln increase in revenue, GEL 1.0mln increase in income
tax expense and GEL 11.1mln net reversal of expected credit loss on
loans to customers, which accounted for c.20bps impact on cost of
credit risk ratio on a quarterly basis for each of 1Q - 3Q periods,
as well as on nine months basis during 2018.
HIGHLIGHTS
Outstanding profitability and balance sheet growth momentum,
supported by strong capital and liquidity positions
GEL thousands, except Change Change Change
per share information 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
Banking Business
Revenue 273,067 260,312 4.9% 269,080 1.5% 1,030,038 909,335 13.3%
Cost of risk 40,778 42,428 -3.9% 48,107 -15.2% 160,225 167,296 -4.2%
Profit before non-recurring
items and income tax 131,750 118,397 11.3% 124,162 6.1% 492,635 400,414 23.0%
Profit from continuing
operations 114,816 107,134 7.2% 111,099 3.3% 378,642 369,522 2.5%
Basic earnings per share(1) 2.40 2.91 -17.5% 2.32 3.4% 8.72 9.63 -9.4%
Loans to customers and
finance lease
receivables(2) 9,397,747 7,741,420 21.4%(3) 8,762,413 7.3%(3) 9,397,747 7,741,420 21.4%(3)
Client deposits and
notes 8,133,853 7,078,058 14.9%(4) 7,932,536 2.5%(4) 8,133,853 7,078,058 14.9%(4)
ROAE(1) 26.2% 27.8% 26.8% 26.1% 25.2%
Net interest margin 6.0% 7.3% 6.4% 6.5% 7.3%
Loan yields 12.8% 14.3% 13.5% 13.5% 14.2%
Cost of funds 5.0% 4.8% 5.0% 5.0% 4.7%
Cost / Income 36.9% 38.3% 36.1% 36.7% 37.7%
Cost of credit risk 1.1% 2.1% 2.0% 1.6% 2.2%
Leverage (times equity) 7.2 7.3 7.6 7.2 7.3
NBG (Basel III) Tier
I Capital Adequacy Ratio 12.2% 12.4% 11.0% 12.2% 12.4%
Georgia's economic performance remains strong - First ever
current account surplus
GDP growth was strong at an estimated 4.8% in 4Q18. Economic
activity was supported by double-digit growth in goods exports (up
22.6% y-o-y, accounting for 20.6% of GDP), tourism revenues (up
18.4% y-o-y, or 19.7% of GDP), and remittances (up 18.4% y-o-y, or
9.7% of GDP). Annual inflation remained below the NBG's 3.0% target
for the full year, coming in at 1.5% in December 2018. Georgia
reached an important milestone and recorded its first ever current
account surplus of 0.3% of GDP in 3Q18. Solid external inflows
enabled the NBG to accumulate foreign currency reserves throughout
the year with the level reaching US$ 3.3 billion, a record high, at
the end of December 2018. At the same time, the GEL started
appreciating against the US Dollar by the end of the year.
Georgia's growth outlook remains solid due to prudent economic
policy-making, a strong banking sector, and the increased
diversification of the economy.
(1) 2018 full year results adjusted for GEL 30.3mln demerger
related costs, GEL 8.0mln demerger related corporate income tax
gain, and GEL 30.3mln one-off impact of re-measurement of deferred
tax balances (see details on page 12)
(2) The Group completed its IFRS 9 implementation programme and
adopted 'IFRS 9, Financial Instruments' standard from 1 January
2018. As allowed by IFRS 9, the Group did not restate prior-period
data, therefore, comparatives are presented on an IAS 39 basis. In
addition, 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
(3) As of 31 December 2018, loans and finance lease receivables
grew on a constant currency basis by 19.0% y-o-y and 5.7% q-o-q
(4) As of 31 December 2018, client deposits and notes increased
on a constant currency basis by 12.5% y-o-y and 0.9% q-o-q
RESULTS HIGHLIGHTS
-- Strong performance. Profit before non-recurring items and
income tax totalled GEL 131.8mln in 4Q18 (up 11.3% y-o-y and up
6.1% q-o-q) and GEL 492.6mln during 2018 (up 23.0% y-o-y), with
profitability remaining high with 26.2% ROAE in 4Q18 (down 160bps
y-o-y and down 60bps q-o-q) and 26.1%(5) in 2018 (up 90bps
y-o-y)
-- Strong capital position. Basel III Tier 1 and Total Capital
Adequacy ratios stood at 12.2% and 16.6%, respectively, as of 31
December 2018, both above the minimum required level of 11.4% and
15.9%, respectively. At the same time Common Equity Tier 1 (CET1)
ratio stood at 12.2% compared to a 9.5% minimum requirement at 31
December 2018 and already above the estimated fully-loaded CET1
requirement for 2021
-- Solid Asset quality. NPLs to gross loans ratio was 3.3% at 31
December 2018 (down from 3.5% at 30 September 2018). NPL coverage
ratio was 90.5% at 31 December 2018 (91.7% at 30 September 2018),
while the NPL coverage ratio adjusted for discounted value of
collateral was 129.9% at 31 December 2018 (136.9% at 30 September
2018). The cost of credit risk ratio improved significantly to 1.1%
in 4Q18, (down from 2.1% in 4Q17 and 2.0% in 3Q18) and to 1.6% in
2018 (down from 2.2% in 2017)
-- The loan book growth reached 21.4% y-o-y and 7.3% q-o-q at 31
December 2018. Growth on a constant-currency basis was 19.0% y-o-y
and 5.7% q-o-q. Retail Banking loan book share in the total loan
portfolio was 69.8% at 31 December 2018 (68.0% at 31 December 2017
and 69.8% at 30 September 2018)
-- Retail Banking ("RB") continued to deliver solid growth
across its business lines. RB revenue reached GEL 188.4mln in 4Q18,
up 7.1% y-o-y and up 1.3% q-o-q, with the 2018 revenue totaling GEL
723.5mln, up 17.7% y-o-y. The Retail Banking net loan book reached
GEL 6,267.1mln at 31 December 2018, up 24.2% y-o-y and up 7.6%
q-o-q. The growth was predominantly driven by mortgage and micro
and SME lending as a result of the Bank's concentrated effort to
grow these businesses following recent regulatory changes on
unsecured consumer lending. The number of RB clients reached 2.4mln
at 31 December 2018, up 5.4% y-o-y and up 1.4% q-o-q. At the same
time, the RB client deposits increased to GEL 4,338.7mln at 31
December 2018, up 32.8% y-o-y and up 7.7% q-o-q
-- Corporate Investment Banking ("CIB") demonstrated further
solid growth in 2018 after delivering on its risk de-concentration
and loan portfolio repositioning targets in 2017. CIB's net loan
book reached GEL 2,618.5mln at 31 December 2018, up 15.9% y-o-y and
up 5.7% q-o-q. The growth on a constant-currency basis was 12.9%
y-o-y and 3.7% q-o-q. The top 10 CIB client concentration was 9.8%
at the end of 4Q18 (10.7% at 31 December 2017 and 9.9% at 30
September 2018)
-- Assets Under Management ("AUM") within the Group's Investment
Management business, increased to GEL 2,271.5mln in 4Q18, up 22.3%
y-o-y and up 4.2% 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 38.3% of the total book at 31
December 2018 (38.3% a year ago and 39.3% in the previous quarter).
Client deposits in local currency represented 32.5% of the total
deposit portfolio at 31 December 2018, compared to 30.5% at 31
December 2017 and 34.4% at 30 September 2018
-- Remote channels. We have actively continued the further
development of our digital channels by introducing new features to
both our mobile banking application and our internet bank. At the
same time, we are 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 4Q18 reached 295,226
(up 34.5% y-o-y) and 333,698 (up 88.3% y-o-y), respectively. Both
the number and volume of transactions through our mobile and
internet banking continued to expand at 27.3% and 23.3% q-o-q, and
83.7% and 86.9% y-o-y, respectively, in 4Q18. In total, c.78% of
daily banking transactions were executed through remote channels in
2018
-- Bank of Georgia became the first bank to launch the
innovative payment mechanism "QR PAY". In 4Q18, BOG introduced a
new payment method QR PAY to the local small business market, 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. 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
800 small businesses connected to QR PAY
-- In 4Q18, in order to extend the scale of its payment system,
BOG was licensed to offer its services to JCB Cards users through
its terminals and ATMs. This inclusion of JCB cards in the Bank's
payment services opens up access to around 117mln people from 190
countries. JCB is an international payment brand from Japan and
given the increasing number of tourists from Asia in Georgia, the
Bank is well equipped to offer them best-in-class service
-- The Banker publication named Bank of Georgia as the Bank of
the Year 2018 in Central and Eastern Europe
(5) 2018 ROAE adjusted for GEL 30.3mln demerger related costs,
GEL 8.0mln demerger related corporate income tax gain, and GEL
30.3mln one-off impact of re-measurement of deferred tax
balances
CHIEF EXECUTIVE OFFICER'S STATEMENT
In the fourth quarter of 2018, the Group delivered another
period of strong balance sheet and fee income growth, combined with
superior profitability, achieved as a result of excellent customer
franchise growth and good cost management in both the retail and
corporate businesses. This has led to net profit from continuing
operations for the quarter of GEL 114.8 million, an increase of
5.5% year-on-year and 3.3% compared to the third quarter of
2018.
During the quarter, the Group delivered revenue of GEL 273.1
million, up 4.9% year-on-year, reflecting both customer lending
growth and good levels of fee and commission income. Profit before
non-recurring items and income tax totalled GEL 131.8 million, a
9.8% increase year-on-year. For the full year 2018, revenues
totalled GEL 1,030.4 million, an increase of 14.5%, and profit
before non-recurring items and income tax increased by 25.1% to GEL
494.7 million. The Group's capability to deliver strong Return on
Average Equity continues, and exceeded 26% in both the fourth
quarter and for the full year.
From a macroeconomic perspective, Georgia continues to produce
strong real GDP growth, estimated at 4.8% for 2018, with inflation
remaining well contained at 1.5% in December 2018, comfortably
below the National Bank of Georgia's target of 3.0% for the year.
The Government's prudent macroeconomic policies continue to serve
the country well, and the economy has remained extremely resilient
to pressures in neighbouring countries, and some volatility in
regional financial markets. Foreign Direct Investment continues to
flow into a wide variety of sectors, and tourist numbers - the most
significant driver of US Dollar inflows for the country - continue
to rise strongly, with tourism revenues totalling $3.2 billion
during the year. Solid external inflows have enabled the National
Bank of Georgia to continue to buy US dollars and accumulate
foreign currency reserves to a record $3.3 billion in December
2018. Perhaps most significantly, the country recorded its first
ever current account surplus in the third quarter of 2018, an
extremely positive macroeconomic development for Georgia.
Strong franchise growth in Retail Banking led to more than 7%
customer deposit and customer lending growth during the quarter,
and 24.2% customer lending growth and 32.8% client deposit growth
year-on-year. On a constant currency basis, customer lending growth
was still strong at 22.3% year-on-year, and 6.3%
quarter-on-quarter. The Retail Banking's clear focus over the last
few quarters has been on growing the mortgage and SME portfolios
more rapidly than the unsecured consumer lending portfolios, and
loan originations in these portfolios have been extremely strong.
In the fourth quarter of 2018, the mortgage and SME portfolios grew
by 12.7% and 7.9% quarter-on-quarter, respectively, driven by very
targeted and capital efficient lending campaigns. Over the last 12
months, the mortgage portfolio increased by 48.8%, while SME
portfolio growth totalled 25.1%.
The Retail Banking client base continues to expand reflecting
the success of the Bank's digital penetration growth and the
increased use of more cost efficient remote channels. As a result,
the Retail Bank now has more than 2.4 million customers, an
increase of more than 125,000 customers over the last 12 months.
Our fully transformed, user-friendly, multi-feature mobile banking
application, mBank, has had nearly 600,000 downloads during the
last two years. In addition, we have now comfortably exceeded our
targeted 40,000 Solo clients by the end of 2018, with over 44,000
clients already benefiting from Solo's lifestyle banking
proposition.
We also continued to deliver strong progress in the Corporate
Investment Banking (CIB) business, and lending growth is now more
balanced between retail and corporate banking. Customer lending in
CIB grew by 15.9% year-on-year, and 5.7% quarter-on-quarter. On a
constant currency basis, these growth rates were 12.9% and 3.7%,
respectively. In addition, we have also made further progress in
reducing concentration risk in CIB, and have reduced the
concentration of our top 10 corporate borrowers to only 9.8% of our
lending portfolio. This stronger lending growth in CIB has also
supported much improved net fee and commission income which, during
2018, increased by 17.4%, and has supported almost 30% growth in
profit before non-recurring items and income tax.
Individual product loan yields have continued to remain broadly
stable, and we expect this trend to continue into 2019. Our
increasing focus on lending in the mortgage segment and to finer
margin corporate and SME clients, has however led to a negative mix
effect on overall loan yields and on the net interest margin, which
was reduced by 40 basis points quarter-on-quarter to 6.0% in the
fourth quarter of 2018. This shift in product mix, which we expect
to continue during 2019, improves our asset quality metrics and,
particularly in the case of the mortgage portfolio, reduces the
risk-asset and capital intensity of our lending growth, which has
enabled us, and we expect will continue to enable us, to maintain
the Group's return on equity and superior profitability profile.
Costs remain well controlled, and the Banking Business delivered
positive operating leverage of 2.9 percentage points in 2018. The
Bank has recently introduced a "Lean" project, which has already
started to improve back office procedures, and introduce end-to-end
process optimisation in the mortgage business. Over the last twelve
months, the cost/income ratio has improved from 37.7% in 2017, to
36.7% in 2018.
Asset quality continues to improve, reflecting our good lending
discipline and the ongoing strength of the economy. The annualised
cost of credit risk ratio in the fourth quarter was 1.1%, and the
full year cost of credit risk ratio was 1.6%, a significant
improvement from 2.2% in 2017. The NPLs to gross loans ratio was
3.3% at the end of December 2018, 20 basis points lower than at the
end of September 2018, and 50 basis points lower than a year ago.
Coverage ratios remain robust, and we expect asset quality and
credit metrics to remain strong over the medium-term, particularly
as our product portfolio mix shifts more towards higher quality
lending portfolios such as the mortgage portfolio.
The Group's capital and funding position remains strong. The NBG
(Basel III) Total Capital Adequacy ratio increased by 70 basis
points during the quarter to 16.6%, and the NBG (Basel III) Tier 1
Capital Adequacy ratio was 12.2%, a quarter-on-quarter increase of
120 basis points. Our capital ratios are comfortably ahead of our
regulatory minimum requirement. We continue to generate high levels
of internal capital as a result of both the Bank's high return on
average equity, and the improved risk asset intensity of our
lending growth. Over the medium term, we will focus on managing our
capital ratios c.200 basis points over our minimum regulatory
requirements.
During the last 12 months, the banking sector in Georgia has
been working with the National Bank of Georgia to implement a
number of regulatory changes relating to both retail lending
guidelines, specifically updated caps on payment-to-income and
loan-to-value ratios and an increase in the GEL 100,000 limit, to
GEL 200,000, below which lending must be issued to borrowers in
GEL, and to the introduction of Basel III capital adequacy
requirements. All of these changes have now been introduced with
the expectation that banks will see a shift towards lending to
corporates and the SME sector, and in the mortgage sector, together
with further progress in the de-dollarisation of bank balance
sheets. The regulations also now allow the introduction of
Additional Tier 1 capital ("AT1") into banks' capital base, which
creates the opportunity to further optimise our capital structure
through US dollar AT1 capital to hedge foreign exchange exposures
within the capital base, and improve the quality of capital. With
this in mind, we may explore the issuance of US-denominated AT1
securities in 2019.
As a result of the recent policy changes, we anticipate growth
rates in the unsecured consumer sector to moderate, although we
continue to expect to deliver solid growth in mortgages and SME
lending. Overall, with the strong rates of growth already delivered
this year, we now expect customer lending growth for the medium- to
long-term to be comfortably within our 15-20% expected growth
range, with lending growth expectations over the next twelve months
to be closer to 15%.
At the 2019 Annual General Meeting, the Board intends to
recommend an annual dividend for 2018 of GEL 2.55 per share payable
in British Pounds Sterling at the prevailing rate. This represents
a payout ratio of 30%, in the range of our dividend payout ratio
target of 25-40%, and a 4.5% increase over last year's
dividend.
Overall, the Group has delivered another year of strong
franchise and earnings growth. Returns continue to be high and the
Group remains very well positioned to continue to deliver good
momentum and high returns.
Archil Gachechiladze,
CEO, Bank of Georgia Group PLC
18 February 2019
FINANCIAL SUMMARY
INCOME Bank of Georgia Group Consolidated Banking Business(6) Discontinued Operations6
STATEMENT
(QUARTERLY)
GEL thousands
unless
otherwise Change Change Change Change Change Change
noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 4Q18 4Q17 y-o-y 3Q18 q-o-q 4Q18 4Q17 y-o-y 3Q18 q-o-q
Net interest
income 187,438 183,498 2.1% 185,335 1.1% 187,438 183,124 2.4% 185,335 1.1% - - - - -
Net fee and
commission
income 41,344 36,483 13.3% 39,481 4.7% 41,344 36,738 12.5% 39,481 4.7% - - - - -
Net foreign
currency gain 53,358 28,139 89.6% 36,827 44.9% 53,358 27,464 94.3% 36,827 44.9% - - - - -
Net other
income /
(expense) (9,073) 12,708 NMF 7,437 NMF (9,073) 12,986 NMF 7,437 NMF - - - - -
Revenue 273,067 260,828 4.7% 269,080 1.5% 273,067 260,312 4.9% 269,080 1.5% - - - - -
Operating
expenses (100,857) (98,612) 2.3% (97,137) 3.8% (100,857) (99,742) 1.1% (97,137) 3.8% - - - - -
Profit from
associates 318 255 24.7% 326 -2.5% 318 255 24.7% 326 -2.5% - - - - -
Operating
income before
cost of risk 172,528 162,471 6.2% 172,269 0.2% 172,528 160,825 7.3% 172,269 0.2% - - - - -
Cost of risk (40,778) (42,428) -3.9% (48,107) -15.2% (40,778) (42,428) -3.9% (48,107) -15.2% - - - - -
Profit before
non-recurring
items and
income tax 131,750 120,043 9.8% 124,162 6.1% 131,750 118,397 11.3% 124,162 6.1% - - - - -
Net
non-recurring
items (6,586) (213) NMF (3,747) 75.8% (6,586) (213) NMF (3,747) 75.8% - - - - -
Profit before
income tax
expense 125,164 119,830 4.5% 120,415 3.9% 125,164 118,184 5.9% 120,415 3.9% - - - - -
Income tax
expense (10,348) (11,050) -6.4% (9,316) 11.1% (10,348) (11,050) -6.4% (9,316) 11.1% - - - - -
Profit from
continuing
operations 114,816 108,780 5.5% 111,099 3.3% 114,816 107,134 7.2% 111,099 3.3% - - - - -
Profit from
discontinued
operations - 10,029 NMF - - - - - - - - 11,675 NMF - -
Profit 114,816 118,809 -3.4% 111,099 3.3% 114,816 107,134 7.2% 111,099 3.3% - 11,675 NMF - -
Earnings per
share (basic) 2.40 3.05 -21.3% 2.32 3.4% 2.40 2.91 -17.5% 2.32 3.4%
Earnings per
share
(diluted) 2.40 2.90 -17.2% 2.32 3.4% 2.40 2.77 -13.4% 2.32 3.4%
INCOME Bank of Georgia Group Banking Business6 Discontinued Operations6
STATEMENT Consolidated
(FULL YEAR)
GEL thousands 2018 2017 Change 2018 2017 Change 2018 2017 Change
unless y-o-y y-o-y y-o-y
otherwise
noted
Net interest
income 741,753 672,535 10.3% 739,604 672,100 10.0% - - -
Net fee and
commission
income 152,662 130,050 17.4% 153,182 131,474 16.5% - - -
Net foreign
currency gain 128,762 79,106 62.8% 129,437 86,060 50.4% - - -
Net other
income 7,262 18,645 -61.1% 7,815 19,701 -60.3% - - -
Revenue 1,030,439 900,336 14.5% 1,030,038 909,335 13.3% - - -
Operating
expenses (376,852) (338,798) 11.2% (378,517) (342,936) 10.4% - - -
Profit from
associates 1,339 1,311 2.1% 1,339 1,311 2.1% - - -
Operating
income before
cost of risk 654,926 562,849 16.4% 652,860 567,710 15.0% - - -
Cost of risk (160,225) (167,296) -4.2% (160,225) (167,296) -4.2% - - -
Profit before
non-recurring
items and
income tax 494,701 395,553 25.1% 492,635 400,414 23.0% - - -
Net
non-recurring
items (57,156) (4,300) NMF (57,328) (4,300) NMF - - -
Profit before
income tax
expense 437,545 391,253 11.8% 435,307 396,114 9.9% - - -
Income tax
expense (56,665) (26,592) 113.1% (56,665) (26,592) 113.1% - - -
Profit from
continuing
operations 380,880 364,661 4.4% 378,642 369,522 2.5% - - -
Profit from
discontinued
operations(7) 107,898 98,788 9.2% - - - 110,136 93,927 17.3%
Profit 488,778 463,449 5.5% 378,642 369,522 2.5% 110,136 93,927 17.3%
Earnings per
share (basic) 10.78 11.61 -7.1% 8.72 9.63 -9.4%
Earnings per
share
(diluted) 10.71 11.07 -3.3% 8.66 9.18 -5.7%
Earnings per
share (basic)
adjusted(8) 9.92 9.63 3.0%
Earnings per
share
(diluted)
adjusted(8) 9.86 9.18 7.4%
(6) Banking Business and Discontinued Operations financials do
not include inter-business eliminations. Detailed financials,
including inter-business eliminations are provided on pages 21, 22
and 23
(7) The full year 2018 profit from discontinued operations
includes the results of operations of the Investment Business prior
to demerger and GEL 90.7mln gain on Investment Business
distribution
(8) 2018 full year results adjusted for GEL 30.3mln demerger
related costs, GEL 8.0mln demerger related corporate income tax
gain, and GEL 30.3mln one-off impact of re-measurement of deferred
tax balances (see details on page 12)
BALANCE SHEET Bank of Georgia Group Consolidated Banking Business(9) Discontinued Operations9
GEL thousands Dec-18 Dec-17 Change Sep-18 Change Dec-18 Dec-17 Change Sep-18 Change Dec-18 Dec-17 Change Sep-18 Change
unless y-o-y q-o-q y-o-y q-o-q y-o-y q-o-q
otherwise noted
Liquid assets 4,540,032 4,373,251 3.8% 4,696,808 -3.3% 4,540,032 4,346,509 4.5% 4,696,808 -3.3% - 445,501 NMF - -
Cash and cash
equivalents 1,215,799 1,582,435 -23.2% 1,237,867 -1.8% 1,215,799 1,516,401 -19.8% 1,237,867 -1.8% - 374,301 NMF - -
Amounts due
from credit
institutions 1,305,216 1,225,947 6.5% 1,398,061 -6.6% 1,305,216 1,216,349 7.3% 1,398,061 -6.6% - 38,141 NMF - -
Investment
securities 2,019,017 1,564,869 29.0% 2,060,880 -2.0% 2,019,017 1,613,759 25.1% 2,060,880 -2.0% - 33,059 NMF - -
Loans to
customers
and finance
lease
receivables 9,397,747 7,690,450 22.2% 8,762,413 7.3% 9,397,747 7,741,420 21.4% 8,762,413 7.3% - - - - -
Property and
equipment 344,059 988,436 -65.2% 315,980 8.9% 344,059 322,925 6.5% 315,980 8.9% - 661,176 NMF - -
Assets of
disposal
group held for
sale - 1,136,417 NMF - - - - - - - - 1,165,182 NMF - -
Total assets 14,798,303 15,168,669 -2.4% 14,314,932 3.4% 14,798,303 12,907,678 14.6% 14,314,932 3.4% - 2,763,913 NMF - -
Client deposits
and
notes 8,133,853 6,712,482 21.2% 7,932,536 2.5% 8,133,853 7,078,058 14.9% 7,932,536 2.5% - - - - -
Amounts due to
credit
institutions 2,994,879 3,155,839 -5.1% 3,006,739 -0.4% 2,994,879 2,778,338 7.8% 3,006,739 -0.4% - 377,501 NMF - -
Borrowings
from DFI 1,302,679 1,624,347 -19.8% 1,261,960 3.2% 1,302,679 1,297,749 0.4% 1,261,960 3.2% - 326,598 NMF - -
Short-term
loans from
NBG 1,118,957 793,528 41.0% 1,016,431 10.1% 1,118,957 793,528 41.0% 1,016,431 10.1% - - - - -
Loans and
deposits
from
commercial
banks 573,243 737,964 -22.3% 728,348 -21.3% 573,243 687,061 -16.6% 728,348 -21.3% - 50,903 NMF - -
Debt securities
issued 1,730,414 1,709,152 1.2% 1,578,532 9.6% 1,730,414 1,386,412 24.8% 1,578,532 9.6% - 357,442 NMF - -
Liabilities of
disposal
group held for
sale - 516,663 NMF - - - - - - - - 619,026 NMF - -
Total liabilities 13,000,030 12,436,299 4.5% 12,644,984 2.8% 13,000,030 11,354,976 14.5% 12,644,984 2.8% - 1,584,245 NMF - -
Total equity 1,798,273 2,732,370 -34.2% 1,669,948 7.7% 1,798,273 1,552,702 15.8% 1,669,948 7.7% - 1,179,668 NMF - -
Book value per
share(10) 37.59 65.22 -42.4% 34.89 7.7%
BANKING BUSINESS RATIOS 4Q18 4Q17 3Q18 2018 2017
ROAA(11) 3.2% 3.4% 3.2% 3.2% 3.2%
ROAE(11) 26.2% 27.8% 26.8% 26.1% 25.2%
Net Interest Margin 6.0% 7.3% 6.4% 6.5% 7.3%
Loan Yield 12.8% 14.3% 13.5% 13.5% 14.2%
Liquid assets yield 3.8% 3.4% 3.8% 3.8% 3.4%
Cost of Funds 5.0% 4.8% 5.0% 5.0% 4.7%
Cost of Client Deposits and Notes 3.4% 3.5% 3.6% 3.5% 3.5%
Cost of Amounts Due to Credit Institutions 7.9% 6.5% 7.4% 7.3% 6.4%
Cost of Debt Securities Issued 7.8% 7.8% 7.8% 7.8% 7.4%
Cost / Income 36.9% 38.3% 36.1% 36.7% 37.7%
NPLs to Gross Loans to Clients 3.3% 3.8% 3.5% 3.3% 3.8%
NPL Coverage Ratio 90.5% 92.7% 91.7% 90.5% 92.7%
NPL Coverage Ratio, Adjusted for
discounted value of collateral 129.9% 130.6% 136.9% 129.9% 130.6%
Cost of Credit Risk 1.1% 2.1% 2.0% 1.6% 2.2%
NBG (Basel III) Tier I Capital Adequacy
Ratio 12.2% 12.4% 11.0% 12.2% 12.4%
NBG (Basel III) Total Capital Adequacy
Ratio 16.6% 17.9% 15.9% 16.6% 17.9%
(9) Banking Business and Discontinued Operations financials do
not include inter-business eliminations. Detailed financials,
including inter-business eliminations are provided on pages 21, 22
and 23
(10) The y-o-y decline in Book value per share as at 31 December
2018 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
(11) 2018 full year results adjusted for GEL 30.3mln demerger
related costs, GEL 8.0mln demerger related corporate income tax
gain, and GEL 30.3mln one-off impact of re-measurement of deferred
tax balances (see details on page 12)
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.
REVENUE
GEL thousands, unless Change Change Change
otherwise noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
Interest income 345,760 312,950 10.5% 337,766 2.4% 1,327,085 1,140,292 16.4%
Interest expense (158,322) (129,826) 21.9% (152,431) 3.9% (587,481) (468,192) 25.5%
Net interest income 187,438 183,124 2.4% 185,335 1.1% 739,604 672,100 10.0%
Fee and commission income 62,350 53,739 16.0% 60,413 3.2% 229,670 192,499 19.3%
Fee and commission expense (21,006) (17,001) 23.6% (20,932) 0.4% (76,488) (61,025) 25.3%
Net fee and commission
income 41,344 36,738 12.5% 39,481 4.7% 153,182 131,474 16.5%
Net foreign currency gain 53,358 27,464 94.3% 36,827 44.9% 129,437 86,060 50.4%
Net other income /
(expense) (9,073) 12,986 NMF 7,437 NMF 7,815 19,701 -60.3%
Revenue 273,067 260,312 4.9% 269,080 1.5% 1,030,038 909,335 13.3%
Net Interest Margin 6.0% 7.3% 6.4% 6.5% 7.3%
Average interest earning
assets 12,496,355 10,008,953 24.9% 11,422,105 9.4% 11,312,217 9,234,600 22.5%
Average interest bearing
liabilities 12,562,852 10,824,561 16.1% 12,002,162 4.7% 11,814,475 9,922,415 19.1%
Average net loans and
finance lease
receivables,
currency blended 9,095,309 7,390,896 23.1% 8,387,381 8.4% 8,331,809 6,856,802 21.5%
Average net loans and
finance lease
receivables,
GEL 3,529,999 2,818,150 25.3% 3,420,314 3.2% 3,336,575 2,414,121 38.2%
Average net loans and
finance lease
receivables,
FC 5,565,310 4,572,746 21.7% 4,967,067 12.0% 4,995,234 4,442,681 12.4%
Average client deposits
and notes, currency
blended 7,946,145 6,891,147 15.3% 7,547,942 5.3% 7,441,616 6,146,052 21.1%
Average client deposits
and notes, GEL 2,654,640 2,065,806 28.5% 2,732,988 -2.9% 2,557,565 1,706,726 49.9%
Average client deposits
and notes, FC 5,291,505 4,825,341 9.7% 4,814,954 9.9% 4,884,051 4,439,326 10.0%
Average liquid assets,
currency blended 4,481,396 4,279,369 4.7% 4,517,487 -0.8% 4,395,537 3,854,019 14.1%
Average liquid assets,
GEL 2,142,122 1,660,337 29.0% 2,071,502 3.4% 1,971,407 1,527,420 29.1%
Average liquid assets,
FC 2,339,274 2,619,032 -10.7% 2,445,985 -4.4% 2,424,130 2,326,599 4.2%
Liquid assets yield,
currency
blended 3.8% 3.4% 3.8% 3.8% 3.4%
Liquid assets yield,
GEL 6.8% 7.1% 7.0% 6.9% 7.1%
Liquid assets yield,
FC 1.0% 1.0% 1.1% 1.2% 0.9%
Loan yield, currency
blended 12.8% 14.3% 13.5% 13.5% 14.2%
Loan yield, GEL 19.7% 21.3% 19.9% 20.4% 21.9%
Loan yield, FC 8.3% 10.0% 9.0% 8.8% 10.0%
Cost of Funds, currency
blended 5.0% 4.8% 5.0% 5.0% 4.7%
Cost of Funds, GEL 7.2% 7.0% 7.2% 7.2% 6.9%
Cost of Funds, FC 3.7% 3.7% 3.6% 3.6% 3.7%
Cost / Income 36.9% 38.3% 36.1% 36.7% 37.7%
Performance highlights
-- Strong revenue of GEL 273.1mln in 4Q18 (up 4.9% y-o-y),
ending the year 2018 with revenue of GEL 1,030.0mln (up 13.3%
y-o-y). Y-o-y revenue growth in 2018 was driven by a 10.0% increase
in net interest income, which resulted from strong loan book
growth. Additionally, net strong fee and commission income (up
16.5% y-o-y) and net client-driven foreign currency gains (up 50.4%
y-o-y) also contributed to annual growth in revenues
-- Our NIM was 6.0% in 4Q18 and 6.5% in 2018. 4Q18 NIM was down
130bps y-o-y due to the 150bps y-o-y decrease in loan yield,
largely reflecting our planned shift towards a higher quality,
finer margin product mix on the back of tighter regulatory
conditions for unsecured consumer lending, and higher EUR
denominated loan origination in 3Q18, as well as a 20bps y-o-y
increase in the cost of funds. On a q-o-q basis, loan yield
decreased by 70bps, while cost of funds remained flat, resulting in
40bps decline in 4Q18 NIM q-o-q
-- Loan yield. Currency blended loan yield was 12.8% in 4Q18
(down 150bps y-o-y and down 70bps q-o-q) and 13.5% in 2018 (down
70bps y-o-y). The y-o-y and q-o-q decline in loan yields during the
fourth quarter and on a twelve months basis in 2018, 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. Our liquid assets yield was 3.8% in 4Q18
(up 40bps y-o-y and flat q-o-q) and 3.8% in 2018 (up 40bps y-o-y).
The main contributor to the y-o-y trend in 2018 was the increase in
the foreign currency denominated liquid assets yield (up 30bps
y-o-y in 2018), reflecting the Federal Open Market Committee's
decisions to raise interest rates, which triggered similar
increases on interest rates paid by a) The National Bank of Georgia
(the "NBG") on the Bank's obligatory reserves (foreign currency
only) and b) correspondent banks on deposits placed by the Bank.
However, starting from 12 July 2018, NBG reduced interest rates on
foreign currency obligatory reserves (from US Fed rate minus 50bps
to Fed rate minus 200bps, floored at zero for US Dollar reserves,
and from ECB rate minus 20bps to ECB rate minus 200bps, floored at
negative 60bps for EUR denominated reserves). As a result, the
foreign currency denominated liquid asset yields declined by 10bps
on a q-o-q basis and were flat on a y-o-y basis in 4Q18
-- Cost of funds. Cost of funds stood at 5.0% in 4Q18 (up 20bps
y-o-y and flat q-o-q) and at 5.0% in 2018 (up 30bps y-o-y). Y-o-y
increase both in 4Q18 and 2018 periods was primarily driven by an
increase in the cost of amount due to credit institutions (up
140bps y-o-y in 4Q18 and up 90bps y-o-y in 2018) as a result of
increased local currency denominated borrowings from Development
Finance Institutions (DFIs), and an increase in the Libor rate
during the period. In addition, y-o-y increase in cost of funds in
2018 also reflected the increase in cost of debt securities issued,
following the issuance of GEL 500mln 11.0% Lari denominated notes
in 2Q17 (up 40bps y-o-y in 2018) - a milestone transaction for Bank
and Georgia
-- Net fee and commission income. Net fee and commission income
reached GEL 41.3mln in 4Q18 (up 12.5% y-o-y and up 4.7% q-o-q) and
GEL 153.2mln in 2018 (up 16.5% y-o-y). The growth was mainly driven
by the strong performance in our settlement operations supported by
the success of our Retail Banking franchise
-- 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 94.3% y-o-y and up 44.9% q-o-q in 4Q18, and up 50.4%
y-o-y in 2018
-- Net other income. The y-o-y decline in net other income in
2018 was largely driven by net losses from derivative financial
instruments (interest rate swap hedges) and investment securities
recorded in 4Q18
OPERATING INCOME BEFORE NON-RECURRING ITEMS; COST OF RISK; PROFIT FOR
THE PERIOD
GEL thousands, unless
otherwise Change Change Change
noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
Salaries and other employee
benefits (58,331) (55,789) 4.6% (54,107) 7.8% (215,816) (198,213) 8.9%
Administrative expenses (30,010) (32,245) -6.9% (30,759) -2.4% (113,264) (100,291) 12.9%
Depreciation and amortisation (11,365) (10,514) 8.1% (11,162) 1.8% (45,442) (40,974) 10.9%
Other operating expenses (1,151) (1,194) -3.6% (1,109) 3.8% (3,995) (3,458) 15.5%
Operating expenses (100,857) (99,742) 1.1% (97,137) 3.8% (378,517) (342,936) 10.4%
Profit from associate 318 255 24.7% 326 -2.5% 1,339 1,311 2.1%
Operating income before
cost of risk 172,528 160,825 7.3% 172,269 0.2% 652,860 567,710 15.0%
Expected credit loss /
impairment
charge on loans to customers (25,783) (41,911) -38.5% (43,505) -40.7% (139,499) (155,210) -10.1%
Expected credit loss /
impairment
charge on finance lease
receivables 514 492 4.5% (426) NMF (164) (496) -66.9%
Other expected credit loss
/ impairment charge on other
assets and provisions (15,509) (1,009) NMF (4,176) NMF (20,562) (11,590) 77.4%
Cost of risk (40,778) (42,428) -3.9% (48,107) -15.2% (160,225) (167,296) -4.2%
Profit before non-recurring
items and income tax 131,750 118,397 11.3% 124,162 6.1% 492,635 400,414 23.0%
Net non-recurring items (6,586) (213) NMF (3,747) 75.8% (57,328) (4,300) NMF
Profit before income tax 125,164 118,184 5.9% 120,415 3.9% 435,307 396,114 9.9%
Income tax expense (10,348) (11,050) -6.4% (9,316) 11.1% (56,665) (26,592) 113.1%
Profit 114,816 107,134 7.2% 111,099 3.3% 378,642 369,522 2.5%
-- Operating expenses increased to GEL 100.9mln in 4Q18 (up 1.1%
y-o-y and up 3.8% q-o-q) and to GEL 378.5mln in 2018 (up 10.4%
y-o-y). The growth in revenues outpaced the growth in operating
expenses y-o-y both during 4Q18 and 2018, leading to positive
operating leverage during these periods. Salaries and employee
benefits increased by 8.9% y-o-y reflecting our core business
growth, while administrative expenses increased by 12.9% y-o-y,
primarily driven by increased costs on consultancy services in
relation to the "Lean" project to achieve a step-change in
operating efficiency, customer experience, and culture
-- Cost of credit risk ratio. The cost of credit risk ratio
improved significantly to 1.1% in 4Q18, down 100bps y-o-y and down
90bps q-o-q. RB's cost of credit risk ratio was down 10bps y-o-y
and down 70bps q-o-q, while CIB's cost of credit risk ratio was
down 340bps y-o-y and down 170bps q-o-q. On a twelve-month basis,
Banking Business cost of credit risk ratio was 1.6% in 2018, down
60bps y-o-y, driven by 40bps y-o-y improvement in RB's cost of
credit risk ratio and 70bps y-o-y decline in CIB's cost of credit
risk ratio
-- Cost of risk. The cost of risk in 4Q18 also includes a
one-off charge of GEL 10.0mln relating to the write-down of legacy
software and IT equipment
-- Quality of our loan book remains strong in 4Q18 as evidenced
by the following closely monitored metrics:
GEL thousands, unless otherwise Dec-18 Dec-17 Change Sep-18 Change
noted y-o-y q-o-q
Non-performing loans
NPLs 318,356 301,268 5.7% 312,203 2.0%
NPLs to gross loans 3.3% 3.8% 3.5%
NPLs to gross loans, RB 2.1% 1.3% 2.4%
NPLs to gross loans, CIB 5.6% 7.5% 4.4%
NPL coverage ratio 90.5% 92.7% 91.7%
NPL coverage ratio adjusted
for the discounted value of
collateral 129.9% 130.6% 136.9%
Past due dates
Retail loans - 15 days past
due rate 1.1% 0.9% 1.6%
Mortgage loans - 15 days past
due rate 0.7% 0.6% 1.3%
-- BNB - the Group's banking subsidiary in Belarus - generated a
profit of GEL 4.1mln in 4Q18 (up 14.5% y-o-y and up 37.5% q-o-q)
and GEL 11.5mln in 2018 (up 11.4% y-o-y); BNB's earnings were
positively impacted by decreased levels of cost of risk both during
the quarter and in 2018, on the back of improved macro-economic
conditions starting from the second half of 2017. For detailed
financial results of BNB, please see page 24
-- BNB's loan book reached GEL 432.7mln at 31 December 2018, up
8.3% y-o-y and up 9.6% q-o-q, mostly reflecting an increase in
consumer loans. Client deposits were GEL 389.0mln at 31 December
2018, up 25.5% y-o-y and up 7.1% q-o-q
-- BNB continues to remain strongly capitalised, with Capital
Adequacy Ratios well above the requirements of its regulating
Central Bank. At 31 December 2018, total CAR was 13.5%, above the
10% minimum requirement of the National Bank of the Republic of
Belarus ("NBRB"), while Tier I CAR was 8.5%, above NBRB's 6%
minimum requirement. Return on Average Equity ("ROAE") was 19.5% in
4Q18 (18.5% in 4Q17 and 15.2% in 3Q18) and 14.6% in 2018 (14.6% in
2017). Strong capitalisation and profitability allowed BNB to
distribute a dividend in the amount of GEL 1.2mln in 1Q18 (GEL
1.2mln in 2017)
-- Overall, profit before non-recurring items and income tax
totalled GEL 131.8mln in 4Q18 (up 11.3% y-o-y and up 6.1% q-o-q)
and GEL 492.6mln in 2018 (up 23.0% y-o-y), while ROAE was 26.2% in
4Q18 (27.8% in 4Q17 and 26.8% in 3Q18) and 26.1%(12) in 2018 (25.2%
in 2017)
-- Net non-recurring items. Net non-recurring expenses amounted
to GEL 57.3mln in 2018 (GEL 4.3mln in 2017), primarily comprising
of 2Q18 demerger related costs (please see 2Q18 and 1H18 results
announcement for details) and employee costs related to termination
benefits of the Group's former CEO (acceleration of share-based
compensation received before 31 December 2018) recorded in 4Q18
-- Income tax expense. Income tax expense amounted to GEL
10.3mln in 4Q18 (GEL 11.1mln in 4Q17 and GEL 9.3mln in 3Q18) and
GEL 56.7mln in 2018 (GEL 26.6mln in 2017). The significant y-o-y
increase in income tax expense in 2018 was primarily driven by the
one-off impact of changes to the corporate taxation model
applicable to financial institutions which was amended in June
2018. Please see the 2Q18 and 1H18 results announcement for
details
BALANCE SHEET HIGHLIGHTS
GEL thousands, unless otherwise noted Dec-18 Dec Change Sep Change
-17 y-o-y -18 q-o-q
Liquid assets 4,540,032 4,346,509 4.5% 4,696,808 -3.3%
Liquid assets, GEL 2,283,812 1,791,708 27.5% 2,072,122 10.2%
Liquid assets, FC 2,256,220 2,554,801 -11.7% 2,624,686 -14.0%
Net loans and finance lease receivables 9,397,747 7,741,420 21.4% 8,762,413 7.3%
Net loans and finance lease receivables,
GEL 3,597,826 2,968,832 21.2% 3,444,621 4.4%
Net loans and finance lease receivables,
FC 5,799,921 4,772,588 21.5% 5,317,792 9.1%
Client deposits and notes 8,133,853 7,078,058 14.9% 7,932,536 2.5%
Amounts due to credit institutions 2,994,879 2,778,338 7.8% 3,006,739 -0.4%
Borrowings from DFIs 1,302,679 1,297,749 0.4% 1,261,960 3.2%
Short-term loans from central banks 1,118,957 793,528 41.0% 1,016,431 10.1%
Loans and deposits from commercial
banks 573,243 687,061 -16.6% 728,348 -21.3%
Debt securities issued 1,730,414 1,386,412 24.8% 1,578,532 9.6%
Liquidity and CAR ratios
Net loans / client deposits and notes 115.5% 109.4% 110.5%
Net loans / client deposits and notes
+ DFIs 99.6% 92.4% 95.3%
Liquid assets as percent of total assets 30.7% 33.7% 32.8%
Liquid assets as percent of total liabilities 34.9% 38.3% 37.1%
NBG liquidity ratio 31.9% 34.4% 32.5%
NBG Liquidity Coverage Ratio 120.1% 112.4% 113.6%
NBG (Basel III) Tier I Capital Adequacy
Ratio 12.2% 12.4% 11.0%
NBG (Basel III) Total Capital Adequacy
Ratio 16.6% 17.9% 15.9%
(12) 2018 ROAE adjusted for demerger related expenses and
one-off impact of re-measurement of deferred tax balances
Our balance sheet remains highly liquid (NBG Liquidity coverage
ratio of 120.1%) and strongly capitalised (NBG Basel III Tier I
ratio of 12.2%) with a well-diversified funding base (Client
Deposits and Notes to Total Liabilities of 62.6%).
-- Liquidity. Liquid assets increased to GEL 4,540.0mln at 31
December 2018, up 4.5% y-o-y and down 3.3% q-o-q. The y-o-y growth
was largely driven by an increase in local currency bonds, which
are used by the Bank as collateral for short-term borrowings from
the NBG, and additional proceeds as a result of the
demerger-related pushdown of $350mln Eurobonds of JSC BGEO Group in
March 2018. Management has successfully continued to deploy excess
liquidity accumulated as a result of these proceeds. In addition,
the y-o-y increase in liquid assets was also 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 an up to 25% reserve requirement depending on maturity. The
NBG Liquidity coverage ratio increased to 120.1% at 31 December
2018 (112.4% at 31 December 2017 and 113.6% at 30 September 2018),
well above the 100% minimum requirement level
-- Loan book. Our net loan book and finance lease receivables
reached GEL 9,397.7mln at 31 December 2018, up 21.4% y-o-y and up
7.3% q-o-q. As of 31 December 2018, the retail book represented
69.8% of the total loan portfolio (68.0% at 31 December 2017 and
69.8% at 30 September 2018). Both local and foreign currency
portfolios experienced strong y-o-y growth of 21.2% and 21.5%,
respectively. 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 50.3% of
the total RB loan book at 31 December 2018 (48.8% at 31 December
2017 and 48.9% at 30 September 2018), while retail client foreign
currency deposits comprised 69.7% of total RB deposits at 31
December 2018 (72.1% at 31 December 2017 and 71.7% at 30 September
2018). At 31 December 2018, 82.3% of CIB's loan book was
denominated in foreign currency (83.1% at 31 December 2017 and
81.7% at 30 September 2018), while 61.2% of CIB deposits were
denominated in foreign currency (63.1% at 31 December 2017 and
55.4% at 30 September 2018). De-dollarisation is expected to
pick-up the pace in 2019, on the back of the recent increase of
local currency loan threshold from GEL 100,000 to GEL 200,000
-- 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 99.6% (up from 92.4% at 31 December
2017 and up from 95.3% at 30 September 2018)
-- Diversified funding base. Debt securities issued grew by
24.8% y-o-y and increased by 9.6% q-o-q. The y-o-y increase was
driven by the demerger-related pushdown of $350mln Eurobonds of JSC
BGEO Group in March 2018
-- Capital Adequacy requirements. Basel III Tier 1 and Total
Capital Adequacy ratios stood at 12.2% and 16.6%, respectively, as
of 31 December 2018, as compared to minimum required level of 11.4%
and 15.9%, respectively (11.0% and 15.9%, respectively, at 30
September 2018, as compared to minimum required levels of 9.9% and
14.9%, respectively). At the same time Common Equity Tier 1 (CET1)
ratio stood at 12.2% compared to a 9.5% minimum requirement at 31
December 2018 and already above the estimated fully-loaded CET1
requirement for 2021
-- The Banker publication named JSC Bank of Georgia as the Bank
of the Year 2018 in Central and Eastern Europe. One of the criteria
for recognition was the Bank's successful transformation from a
product focus to a client-centric business model which has resulted
in more effective tailor-made services through the Bank of
Georgia's multi-brand strategy. The Banker also outlined the Bank's
achievements in creating digital platforms and loyalty programmes,
which are an integral part of Bank of Georgia's client-centric
business model and its focus on developing stronger customer
relationships. The Banker distinguished Bank of Georgia, a London
Stock Exchange listed company, for its best-in-class corporate
governance standards and its competitive advantage in the local
market in terms of attracting human and financial capital
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 Change Change Change
noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
INCOME STATEMENT HIGHLIGHTS
Net interest income 136,894 134,517 1.8% 136,040 0.6% 546,872 480,955 13.7%
Net fee and commission
income 32,915 28,511 15.4% 30,651 7.4% 118,858 99,790 19.1%
Net foreign currency gain 24,047 8,407 NMF 17,381 38.4% 56,358 28,937 94.8%
Net other income / (expense) (5,420) 4,531 NMF 2,022 NMF 1,371 5,029 -72.7%
Revenue 188,436 175,966 7.1% 186,094 1.3% 723,459 614,711 17.7%
Salaries and other employee
benefits (37,053) (35,778) 3.6% (34,830) 6.4% (138,635) (125,668) 10.3%
Administrative expenses (21,620) (22,461) -3.7% (22,619) -4.4% (84,323) (72,464) 16.4%
Depreciation and
amortisation (9,857) (9,020) 9.3% (9,556) 3.1% (39,133) (34,741) 12.6%
Other operating expenses (637) (1,098) -42.0% (592) 7.6% (2,333) (2,279) 2.4%
Operating expenses (69,167) (68,357) 1.2% (67,597) 2.3% (264,424) (235,152) 12.4%
Profit from associate 318 255 24.7% 326 -2.5% 1,339 1,311 0.0%
Operating income before
cost of risk 119,587 107,864 10.9% 118,823 0.6% 460,374 380,870 20.9%
Cost of risk (37,487) (22,867) 63.9% (35,155) 6.6% (130,714) (110,800) 18.0%
Profit before non-recurring
items and income tax 82,100 84,997 -3.4% 83,668 -1.9% 329,660 270,070 22.1%
Net non-recurring items (4,088) (74) NMF (1,947) 110.0% (35,110) (2,358) NMF
Profit before income tax 78,012 84,923 -8.1% 81,721 -4.5% 294,550 267,712 10.0%
Income tax expense (5,785) (7,335) -21.1% (5,998) -3.6% (36,292) (18,046) 101.1%
Profit 72,227 77,588 -6.9% 75,723 -4.6% 258,258 249,666 3.4%
BALANCE SHEET HIGHLIGHTS
Net loans, Currency Blended 6,267,071 5,044,372 24.2% 5,826,396 7.6% 6,267,071 5,044,372 24.2%
Net loans, GEL 3,117,454 2,582,677 20.7% 2,975,672 4.8% 3,117,454 2,582,677 20.7%
Net loans, FC 3,149,617 2,461,695 27.9% 2,850,724 10.5% 3,149,617 2,461,695 27.9%
Client deposits, Currency
Blended 4,338,712 3,267,276 32.8% 4,029,995 7.7% 4,338,712 3,267,276 32.8%
Client deposits, GEL 1,314,902 910,878 44.4% 1,141,849 15.2% 1,314,902 910,878 44.4%
Client deposits, FC 3,023,810 2,356,398 28.3% 2,888,146 4.7% 3,023,810 2,356,398 28.3%
of which:
Time deposits, Currency
Blended 2,430,311 1,829,433 32.8% 2,193,682 10.8% 2,430,311 1,829,433 32.8%
Time deposits, GEL 566,490 361,775 56.6% 489,535 15.7% 566,490 361,775 56.6%
Time deposits, FC 1,863,821 1,467,658 27.0% 1,704,147 9.4% 1,863,821 1,467,658 27.0%
Current accounts and demand
deposits, Currency Blended 1,908,401 1,437,843 32.7% 1,836,313 3.9% 1,908,401 1,437,843 32.7%
Current accounts and demand
deposits, GEL 748,412 549,103 36.3% 652,314 14.7% 748,412 549,103 36.3%
Current accounts and demand
deposits, FC 1,159,989 888,740 30.5% 1,183,999 -2.0% 1,159,989 888,740 30.5%
KEY RATIOS
ROAE Retail Banking(13) 27.3% 36.6% 30.9% 30.0% 31.6%
Net interest margin,
currency
blended 6.7% 8.4% 7.2% 7.5% 8.5%
Cost of credit risk 1.7% 1.8% 2.4% 2.1% 2.5%
Cost of funds, currency
blended 5.7% 5.7% 5.8% 5.8% 5.7%
Loan yield, currency blended 14.2% 15.9% 14.8% 15.1% 16.1%
Loan yield, GEL 20.7% 22.7% 20.8% 21.5% 23.6%
Loan yield, FC 7.4% 8.8% 7.9% 7.9% 9.1%
Cost of deposits, currency
blended 2.9% 2.8% 2.8% 2.9% 2.9%
Cost of deposits, GEL 5.0% 4.5% 4.9% 4.9% 4.5%
Cost of deposits, FC 2.1% 2.2% 2.0% 2.0% 2.3%
Cost of time deposits,
currency blended 4.2% 4.2% 4.2% 4.2% 4.3%
Cost of time deposits,
GEL 8.7% 8.9% 8.7% 8.7% 8.8%
Cost of time deposits,
FC 2.9% 3.1% 2.9% 2.9% 3.3%
Current accounts and demand
deposits, currency blended 1.2% 0.9% 1.1% 1.1% 1.0%
Current accounts and demand
deposits, GEL 2.1% 1.5% 2.1% 2.0% 1.6%
Current accounts and demand
deposits, FC 0.7% 0.5% 0.5% 0.6% 0.6%
Cost / income ratio 36.7% 38.7% 36.3% 36.5% 38.3%
(13) 2018 ROAE adjusted for demerger related expenses and
one-off impact of re-measurement of deferred tax balances
Performance highlights
-- Retail Banking delivered solid quarterly results in each of
its major segments and generated revenues of GEL 188.4mln in 4Q18
(up 7.1% y-o-y and up 1.3% q-o-q) and GEL 723.5mln in 2018 (up
17.7% y-o-y)
-- RB's net interest income grew by 1.8% y-o-y in 4Q18 and by
13.7% y-o-y during 2018 on the back of the strong y-o-y growth in
the Retail Banking loan portfolio. Net interest income also
reflects the benefits from the growth of the local currency loan
portfolio, which generated 13.3ppts and 13.6ppts higher yield than
the foreign currency loan portfolio in 4Q18 and 2018,
respectively
-- The Retail Banking net loan book reached GEL 6,267.1mln in
4Q18, up 24.2% y-o-y and up 7.6% q-o-q. On a constant currency
basis our retail loan book increased by 22.3% y-o-y and 6.3% q-o-q
in 4Q18. Our local currency denominated loan book increased by
20.7% y-o-y and 4.8% q-o-q, while the foreign currency denominated
loan book grew by 27.9% y-o-y and 10.5% q-o-q. As a result, the
local currency denominated loan book accounted for 49.7% of the
total Retail Banking loan book at 31 December 2018 (51.2% at 31
December 2017 and 51.1% at 30 September 2018)
-- The y-o-y loan book growth reflected continued strong loan
origination levels delivered across the mortgage and MSME segments.
The trend reflects the shift towards a higher quality, finer margin
product mix on the back of tighter lending conditions for unsecured
consumer lending:
Retail Banking loan book by products
GEL million, unless Change Change Change
otherwise noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
Loan Originations
Consumer loans 326.0 383.1 -14.9% 344.9 -5.5% 1,381.6 1,383.6 -0.2%
Mortgage loans 466.4 359.3 29.8% 606.6 -23.1% 1,725.9 1,062.5 62.4%
Micro loans 263.6 309.5 -14.8% 270.5 -2.5% 1,066.3 1,017.6 4.8%
SME loans 186.1 189.9 -2.0% 190.5 -2.3% 660.2 593.7 11.2%
POS loans 14.4 79.7 -81.9% 23.5 -38.8% 119.0 243.8 -51.2%
Outstanding Balance
Consumer loans 1,379.7 1,242.0 11.1% 1,329.1 3.8% 1,379.7 1,242.0 11.1%
Mortgage loans 2,539.3 1,706.1 48.8% 2,254.1 12.7% 2,539.3 1,706.1 48.8%
Micro loans 1,246.3 1,030.8 20.9% 1,200.4 3.8% 1,246.3 1,030.8 20.9%
SME loans 758.7 606.5 25.1% 703.2 7.9% 758.7 606.5 25.1%
POS loans 58.6 130.8 -55.2% 66.5 -11.9% 58.6 130.8 -55.2%
-- Retail Banking client deposits increased to GEL 4,338.7mln,
up 32.8% y-o-y and up 7.7% q-o-q. The dollarisation level of our
deposits decreased to 69.7% at 31 December 2018 from 72.1% at 31
December 2017 and from 71.7% at 30 September 2018. The cost of
foreign currency denominated deposits decreased by 10bps y-o-y and
increased by 10bps q-o-q in 4Q18, and decreased by 30bps y-o-y in
2018. The cost of local currency denominated deposits, on the
contrary, increased by 50bps y-o-y and by 10bps q-o-q in 4Q18 and
increased by 40bps y-o-y in 2018. The spread between the cost of
RB's client deposits in GEL and foreign currency widened to 2.9ppts
during 4Q18 (GEL: 5.0%; FC: 2.1%) compared to 2.3ppts in 4Q17 (GEL:
4.5%; FC: 2.2%) and 2.9ppts in 3Q18 (GEL: 4.9%; FC: 2.0%). On a
year-to-date basis, the spread was 2.9ppts in 2018 (GEL: 4.9%; FC:
2.0%) compared to 2.2ppts in 2017 (GEL: 4.5%; FC: 2.3%)
-- Retail Banking NIM was 6.7% in 4Q18 (down 170bps y-o-y and
down 50bps q-o-q) and 7.5% in 2018 (down 100bps y-o-y). The decline
in NIM was attributable to lower loan yields (down 170bps y-o-y and
down 60bps q-o-q in 4Q18, and down 100bps y-o-y in 2018),
reflecting the significant growth in the mortgage portfolio during
2018. Meanwhile, the cost of funds remained flat y-o-y and
decreased by 10bps q-o-q in 4Q18, and increased by 10bps y-o-y in
2018. The decline in loan yields was 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
-- Strong growth in Retail Banking net fee and commission
income. The strong growth in net fee and commission income during
all reported periods was driven by an increase in settlement
operations and the strong underlying growth in our Solo and MSME
segments
-- RB asset quality improved in 4Q18 further reflecting tighter
conditions for unsecured consumer lending post regulatory changes
in May 2018, which primarily affected the high-yield express and
micro loans as expected. Our increasing focus on lending in the
mortgage segment and to finer margin SME clients, has led to a
product mix shift, and improvement in our asset quality metrics.
RB's cost of credit risk ratio improved to 1.7% in 4Q18 (down from
1.8% in 4Q17 and down from 2.4% in 3Q18) and 2.1% in 2018 (down
from 2.5% in 2017)
-- Our Retail Banking business continues 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 Change Change Change
GEL thousands 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
Retail Banking
Customers
Number of new
customers 54,975 65,712 -16.3% 38,577 42.5% 202,386 198,488 2.0%
Number of customers 2,440,754 2,315,038 5.4% 2,408,223 1.4% 2,440,754 2,315,038 5.4%
Cards
Number of Cards
issued 243,843 324,974 -25.0% 152,274 60.1% 833,807 1,022,283 -18.4%
Number of Cards
outstanding 2,177,273 2,227,000 -2.2% 2,192,870 -0.7% 2,177,273 2,227,000 -2.2%
Express Pay
terminals
Number of Express
Pay
terminals 3,115 2,842 9.6% 3,054 2.0% 3,115 2,842 9.6%
Number of
transactions
via Express Pay
terminals 27,924,360 27,211,578 2.6% 27,001,597 3.4% 108,240,230 104,021,767 4.1%
Volume of
transactions
via Express Pay
terminals 1,848,746 1,478,216 25.1% 1,757,019 5.2% 6,741,247 4,748,036 42.0%
POS terminals
Number of Desks 10,009 9,934 0.8% 10,078 -0.7% 10,009 9,934 0.8%
Number of
Contracted
Merchants 6,575 5,341 23.1% 5,357 22.7% 6,575 5,341 23.1%
Number of POS
terminals 14,220 13,291 7.0% 13,418 6.0% 14,220 13,291 7.0%
Number of
transactions
via POS terminals 16,932,793 12,874,756 31.5% 16,232,785 4.3% 62,110,165 46,177,412 34.5%
Volume of
transactions
via POS terminals 537,668 423,565 26.9% 534,430 0.6% 1,937,392 1,405,800 37.8%
Internet Banking
Number of Active
Users 295,226 219,496 34.5% 246,897 19.6% 295,226 219,496 34.5%
Number of
transactions
via Internet Bank 1,541,779 1,513,437 1.9% 1,417,638 8.8% 5,892,493 6,415,427 -8.2%
Volume of
transactions
via Internet Bank 620,273 425,930 45.6% 530,368 17.0% 2,029,599 1,402,969 44.7%
Mobile Banking
Number of Active
Users 333,698 177,243 88.3% 247,418 34.9% 333,698 177,243 88.3%
Number of
transactions
via Mobile Bank 5,506,212 2,323,573 137.0% 4,119,141 33.7% 15,676,447 6,348,533 146.9%
Volume of
transactions
via Mobile Bank 697,296 278,856 150.1% 538,609 29.5% 1,961,108 685,470 186.1%
- Growth in the client base was due to the increased offering of
cost-effective remote channels. The increase to 2,440,754 customers
in 4Q18 (up 5.4% y-o-y and up 1.4% q-o-q) reflects the 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 2.2% y-o-y in
4Q18 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 December
2018 increased by 30.4% y-o-y and 4.9% q-o-q. Loyalty programme
Plus+ cards, launched in July 2017 as part of RB's client-centric
approach, more than doubled y-o-y. We had 592,458 active Plus+
cards outstanding as at 31 December 2018, up 14.0% q-o-q
- In November 2018, in order to extend the scale of its payment
system, Bank of Georgia was licensed to offer its services to the
JCB Cards users through the Bank's terminals and ATMs. Inclusion of
JCB cards in Bank of Georgia's payment services opens up access to
around 117 million people from 190 countries. JCB is an
international payment brand originating from Japan and given the
increasing number of tourists from Asia in Georgia (visitors from
Asia increased at an impressive CAGR of 56.3% over 2014-2018
period, reaching up to 8% of total international visitors in
Georgia in 2018), Bank of Georgia is well equipped to offer them
best-in-class services
- The utilisation of Express Pay terminals continued to grow in
4Q18. The volume of transactions increased to GEL 1,848.7mln in
4Q18 (up 25.1% y-o-y and up 5.2% q-o-q) and to GEL 6,741.2mln in
2018 (up 42.0% y-o-y). The number of transactions increased by 2.6%
y-o-y in 4Q18 and by 4.1% y-o-y in 2018. The fees charged to
clients for transactions executed through express pay terminals
amounted to GEL 5.6mln in 4Q18 (up 6.2% y-o-y and largely flat
q-o-q) and GEL 22.0mln in 2018 (up 6.8% y-o-y)
- Digital penetration growth. For our mobile banking
application, the number of transactions (up 33.7% q-o-q) and the
volume of transactions (up 29.5% q-o-q) continue to show
outstanding growth. The fully-transformed, user-friendly,
multi-feature mobile banking application (mBank) continues to gain
popularity. Since its launch on 29 May 2017, 595,541 downloads have
been made by the Bank's customers. During the same period
approximately 19.3 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. During 2018, 27,557 loans were issued with a total value of
GEL 55.5mln, and 10,643 deposits were opened with a total value of
GEL 33.0mln through Internet Bank (5,798 loans with total value of
GEL 15.1mln and 7,458 deposits with total value of GEL 19.1mln in
2017). Starting from 2018, our customers are able to apply for a
loan via mBank as well. 26,098 loans were issued with a total value
of GEL 39.4mln using the mobile banking application during 2018.
Moreover, in 3Q18 a new feature was added to mBank and our
customers can now open a deposit via our mobile platform. During
the fourth quarter 2018, 5,124 (up to 2,900 in 3Q18) deposit
accounts were opened with a total deposited amount of GEL 3.1mln
(GEL 5.7mln in 3Q18). As a result, the c.78% of total daily banking
transactions were executed through digital channels during 2018
-- Solo, our premium banking brand, continues its strong growth
momentum 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. We achieved our target
of 40,000 Solo clients by the end of 2018 ahead of time in 3Q18.
The number of Solo clients reached 44,292 at 31 December 2018
(32,104 at 31 December 2017 and 41,720 at 30 September 2018), up
434.8% since its re-launch in April 2015. Going forward, Solo will
be targeting growth through increasing our engagement with existing
clients and maximising profit per client and product per client
measures. In 4Q18, 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 1.8% of our total retail client base,
they contributed 28.4% to our retail loan book, 39.0% to our retail
deposits, 17.2% and 20.4% to our net retail interest income and to
our net retail fee and commission income in 4Q18, respectively. The
fee and commission income from the Solo segment reached GEL 5.6mln
in 4Q18 (GEL 4.7mln in 4Q17 and GEL 5.6mln in 3Q18) and GEL 21.2mln
in 2018 (GEL 14.4mln in 2017). 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 December 2018, Solo
Club had 3,825 members, up 7.7% q-o-q
-- MSME banking delivered strong growth. The number of MSME
segment clients reached 195,230 at 31 December 2018, up 17.8% y-o-y
and up 4.4% q-o-q. MSME's loan portfolio reached GEL 2,176.2mln at
31 December 2018 (up 25.1% y-o-y and up 6.3% q-o-q). The MSME
segment generated revenue of GEL 49.4mln in 4Q18 (up 34.1% y-o-y
and up 12.1% q-o-q) and GEL 165.5mln in 2018 (up 32.1% y-o-y)
-- 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. In order to connect to QR PAY and enjoy the
benefits of cashless payments, small businesses should have an
account in Bank of Georgia. Once connected, they will start
receiving QR PAY services free of charge for the first year.
Thereafter, a service commission will be based on the turnover of
the enterprise. This 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 800 small businesses connected
to QR PAY. 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
-- As a result, Retail Banking profit before non-recurring items
and income tax was GEL 82.1mln in 4Q18 (down 3.4% y-o-y and down
1.9% q-o-q) and GEL 329.7mln during 2018 (up 22.1% y-o-y). Retail
Banking continued to deliver an outstanding ROAE of 27.3% in 4Q18
(36.6% in 4Q17 and 30.9% in 3Q18) and 30.0%(14) in 2018 (31.6% in
2017)
(14) 2018 ROAE adjusted for demerger related expenses and
one-off impact of re-measurement of deferred tax balances
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 Change Change Change
noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
INCOME STATEMENT HIGHLIGHTS
Net interest income 43,696 42,539 2.7% 42,076 3.9% 165,723 156,171 6.1%
Net fee and commission
income 6,939 5,859 18.4% 7,187 -3.5% 26,680 22,717 17.4%
Net foreign currency gain 23,984 15,585 53.9% 13,815 73.6% 54,702 46,276 18.2%
Net other income / (expense) (3,451) 7,710 NMF 5,276 NMF 6,699 14,256 -53.0%
Revenue 71,168 71,693 -0.7% 68,354 4.1% 253,804 239,420 6.0%
Salaries and other employee
benefits (14,645) (15,271) -4.1% (13,827) 5.9% (54,792) (54,573) 0.4%
Administrative expenses (4,921) (5,439) -9.5% (5,329) -7.7% (17,409) (16,190) 7.5%
Depreciation and
amortisation (1,122) (1,316) -14.7% (1,245) -9.9% (4,945) (5,134) -3.7%
Other operating expenses (347) (228) 52.2% (431) -19.5% (1,175) (761) 54.4%
Operating expenses (21,035) (22,254) -5.5% (20,832) 1.0% (78,321) (76,658) 2.2%
Operating income before
cost of risk 50,133 49,439 1.4% 47,522 5.5% 175,483 162,762 7.8%
Cost of risk (3,407) (18,788) -81.9% (12,235) -72.2% (25,888) (47,403) -45.4%
Profit before non-recurring
items and income tax 46,726 30,651 52.4% 35,287 32.4% 149,595 115,359 29.7%
Net non-recurring items (1,711) (134) NMF (775) 120.8% (13,630) (1,882) NMF
Profit before income tax 45,015 30,517 47.5% 34,512 30.4% 135,965 113,477 19.8%
Income tax expense (3,401) (2,840) 19.8% (2,434) 39.7% (16,827) (7,584) 121.9%
Profit 41,614 27,677 50.4% 32,078 29.7% 119,138 105,893 12.5%
BALANCE SHEET HIGHLIGHTS
Net loans and finance lease
receivables, Currency
Blended 2,618,490 2,260,107 15.9% 2,477,267 5.7% 2,618,490 2,260,107 15.9%
Net loans and finance
lease
receivables, GEL 464,397 383,058 21.2% 453,908 2.3% 464,397 383,058 21.2%
Net loans and finance
lease
receivables, FC 2,154,093 1,877,049 14.8% 2,023,359 6.5% 2,154,093 1,877,049 14.8%
Client deposits, Currency
Blended 3,473,054 3,457,331 0.5% 3,552,322 -2.2% 3,473,054 3,457,331 0.5%
Client deposits, GEL 1,347,754 1,276,401 5.6% 1,583,941 -14.9% 1,347,754 1,276,401 5.6%
Client deposits, FC 2,125,300 2,180,930 -2.6% 1,968,381 8.0% 2,125,300 2,180,930 -2.6%
Time deposits, Currency
Blended 1,337,112 1,297,984 3.0% 1,739,849 -23.1% 1,337,112 1,297,984 3.0%
Time deposits, GEL 491,622 470,288 4.5% 868,391 -43.4% 491,622 470,288 4.5%
Time deposits, FC 845,490 827,696 2.1% 871,458 -3.0% 845,490 827,696 2.1%
Current accounts and demand
deposits, Currency Blended 2,135,942 2,159,347 -1.1% 1,812,473 17.8% 2,135,942 2,159,347 -1.1%
Current accounts and
demand
deposits, GEL 856,132 806,113 6.2% 715,550 19.6% 856,132 806,113 6.2%
Current accounts and
demand
deposits, FC 1,279,810 1,353,234 -5.4% 1,096,923 16.7% 1,279,810 1,353,234 -5.4%
Letters of credit and
guarantees,
standalone* 1,035,630 644,750 60.6% 679,324 52.5% 1,035,630 644,750 60.6%
Assets under management 2,271,543 1,857,495 22.3% 2,180,100 4.2% 2,271,543 1,857,495 22.3%
RATIOS
ROAE, Corporate Investment
Banking(15) 27.9% 18.1% 22.6% 22.6% 17.6%
Net interest margin,
currency
blended 3.2% 3.5% 3.4% 3.3% 3.4%
Cost of credit risk -0.2% 3.2% 1.5% 0.8% 1.5%
Cost of funds, currency
blended 4.6% 4.3% 4.8% 4.6% 4.6%
Loan yield, currency blended 9.8% 11.2% 10.8% 10.2% 10.7%
Loan yield, GEL 12.8% 12.3% 13.5% 13.1% 12.8%
Loan yield, FC 9.2% 11.0% 10.2% 9.6% 10.3%
Cost of deposits, currency
blended 4.0% 4.0% 4.4% 4.1% 4.0%
Cost of deposits, GEL 6.2% 6.6% 6.6% 6.4% 6.6%
Cost of deposits, FC 2.3% 2.5% 2.4% 2.4% 2.7%
Cost of time deposits,
currency blended 5.9% 6.0% 6.2% 6.1% 5.8%
Cost of time deposits,
GEL 7.8% 8.0% 7.7% 7.9% 8.4%
Cost of time deposits,
FC 4.4% 4.8% 4.5% 4.5% 5.0%
Current accounts and demand
deposits, currency blended 2.3% 2.8% 2.6% 2.6% 2.8%
Current accounts and
demand
deposits, GEL 4.9% 5.7% 5.3% 5.2% 5.9%
Current accounts and
demand
deposits, FC 0.6% 1.2% 0.7% 0.9% 1.0%
Cost / income ratio 29.6% 31.0% 30.5% 30.9% 32.0%
Concentration of top ten
clients 9.8% 10.7% 9.9% 9.8% 10.7%
(*) Off-balance sheet item
(15) 2018 ROAE adjusted for demerger related expenses and
one-off impact of re-measurement of deferred tax balances
Performance highlights
-- CIB continued further growth in 4Q18 after delivering on the
targets of loan portfolio risk de-concentration initiatives in
2017. Net loan book reached GEL 2,618.5mln at 31 December 2018, up
15.9% y-o-y and up 5.7% q-o-q (up 12.9% y-o-y and up 3.7% q-o-q on
a constant currency basis). The concentration of the top 10 CIB
clients stood at 9.8% at 31 December 2018 (10.7% at 31 December
2017 and 9.9% at 30 September 2018)
-- CIB's net interest income increased by 2.7% y-o-y and by 3.9%
q-o-q in 4Q18 and increased by 6.1% y-o-y during 2018. CIB NIM was
3.2% in 4Q18, down 30bps y-o-y and down 20 bps q-o-q, and down
10bps y-o-y to 3.3% during 2018. In 4Q18, the y-o-y decline in NIM
was attributable to higher cost of funds (up 30bps y-o-y, reaching
4.6% in 4Q18), on the back of higher portion of more expensive
local currency denominated deposits. Another driver for y-o-y and
q-o-q decreases in NIM in 4Q18 and a y-o-y decrease in 2018 was
lower currency blended loan yields, which were down 140bps y-o-y
and down 100bps q-o-q in 4Q18, and down 50bps y-o-y in 2018. The
loan yields mainly decreased y-o-y both in 4Q18 and 2018, on the
back of foreign currency yields, which were down 180bps and 70bps
y-o-y, respectively, largely reflecting higher loan related
prepayment fees in 4Q17. Local currency loan yields went up by
50bps and 30bps y-o-y in 4Q18 and 2018, respectively. On q-o-q
basis, the decline in loan yields were driven by decrease in both
foreign (down 100bps q-o-q), driven by higher activity in EUR
denominated loan origination during 3Q18 and local currency loan
yields (down 70bps q-o-q)
-- CIB's net fee and commission income reached GEL 6.9mln in
4Q18, up 18.4% y-o-y and down 3.5% q-o-q. On a twelve months basis,
net fee and commission income was GEL 26.7mln in 2018, up 17.4%
y-o-y. The y-o-y increase in net fee and commission income both in
4Q18 and 2018 was largely driven by higher placement and advisory
fees over the periods. CIB's net fee and commission income
represented 10.5% of total CIB revenue in 2018 as compared to 9.5%
in 2017
-- CIB's loan book and de-dollarisation. Foreign currency
denominated loans represented 82.3% of CIB's loan portfolio as at
31 December 2018, compared to 83.1% at 31 December 2017 and 81.7%
at 30 September 2018. The increase in foreign currency denominated
loans in 4Q18 q-o-q was primarily due to local currency
depreciation in the fourth quarter 2018. Total CIB loan portfolio
amounted to GEL 2,618.5mln, up 15.9% y-o-y and up 5.7% q-o-q. On a
constant currency basis, CIB loan book was up 12.9% y-o-y and up
3.7% q-o-q
-- In 4Q18, dollarisation of our CIB deposits decreased to 61.2%
as at 31 December 2018 from 63.1% a year ago and increased from
55.4% as at 30 September 2018. A q-o-q increase in foreign currency
denominated deposits was partially due to local currency
depreciation in the fourth quarter 2018. Y-o-y growth in GEL
denominated deposits was in line with the decreasing trend in the
interest rates on foreign currency deposits (down 20bps y-o-y and
down 10bps q-o-q in 4Q18 and down 30bps y-o-y in 2018). 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. Significant decline in net other income
y-o-y in 2018 was largely driven by net losses from derivative
financial instruments (interest rate swap hedges) and investment
securities recorded during 4Q18
-- Cost of credit risk. CIB's cost of credit risk ratio improved
significantly and stood at net credit of 0.2% in 4Q18 (down from a
cost of 3.2% in 4Q17 and 1.5% in 3Q18) and at 0.8% in 2018 (down
70bps y-o-y), primarily driven by the improved quality of the CIB
loan portfolio and the recovery of several mid- to low-sized
corporate loans in 4Q18. At the same time, CIB's NPL coverage ratio
improved to 90.3% at 31 December 2018, up from 83.1% at 31 December
2017 and 87.5% at 30 September 2018
-- As a result, Corporate Investment Banking profit before
non-recurring items and income tax was GEL 46.7mln in 4Q18 (up
52.4% y-o-y and up 32.4% q-o-q) and GEL 149.6mln during 2018 (up
29.7% y-o-y). CIB ROAE reached 27.9% in 4Q18 (compared to 18.1% a
year ago and 22.6% in 3Q18) and 22.6%(16) in 2018 (compared to
17.6% in 2017)
Performance highlights of wealth management operations
-- The Investment Management's AUM increased to GEL 2,271.5mln
in 4Q18, up 22.3% y-o-y and up 4.2% 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 1,268.1mln in 4Q18, up
14.1% y-o-y and up 8.2% q-o-q, growing at a compound annual growth
rate (CAGR) of 13.3% over the last five-year period. The cost of
deposits stood at 3.2% in 4Q18 and 3.3% in 2018, down 30bps y-o-y
and flat q-o-q in 4Q18, and down 50bps y-o-y in 2018
-- We served 1,528 wealth management clients from 76 countries
as of 31 December 2018, compared to 1,434 clients as of 31 December
2017
-- 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 2018 Galt & Taggart acted as a:
- co-manager of Georgia Capital's inaugural US$ 300mln
international bond issuance due in 2024, in March 2018
- lead manager for Black Sea Trade and Development Bank,
facilitating a public placement of GEL 75mln local bonds in March
and June 2018
- lead manager of Georgian Leasing Company's US$ 5mln local
public bond issuance due in 2021, in June 2018
- lead manager for Nederlandse Financierings - Maatschappij Voor
Ontwikkelingslanden N.V. (FMO), facilitating a public placement of
GEL 160mln local bonds in July 2018
- rating advisor for JSC Microfinance Organization Swiss
Capital, facilitating the process of obtaining the Long-Term Issuer
Default Rating of 'B-' from Fitch Ratings, in July 2018
- rating advisor for Georgian Leasing Company, facilitating the
process of obtaining the Long-Term Issuer Default Rating of 'B+'
from Fitch Ratings, in November 2018
- lead manager of m(2) Commercial Assets' US$ 30mln local public
bond issuance due in 2021, in December 2018
-- During 2Q18 Galt & Taggart renewed the agreement to
manage the private pension fund of a large Georgian corporate
client mandated a year ago through a competitive tender process
-- In February 2018 Global Finance Magazine named Galt &
Taggart as the Best Investment Bank in Georgia for the fourth
consecutive year; On 31 May 2018, Cbonds, one of the leading news
agencies for financial data analysis and processing, named Galt
& Taggart as the Best Investment Bank in Georgia 2018 for the
third consecutive year
(16) 2018 ROAE adjusted for demerger related expenses and
one-off impact of re-measurement of deferred tax balances
SELECTED FINANCIAL INFORMATION
INCOME STATEMENT Bank of Georgia Group Banking Business Discontinued Operations Eliminations
(QUARTERLY) Consolidated
GEL thousands,
unless Change Change Change Change Change Change
otherwise noted 4Q18 4Q17 y-o-y 3Q18 q-o-q 4Q18 4Q17 y-o-y 3Q18 q-o-q 4Q18 4Q17 y-o-y 3Q18 q-o-q 4Q18 4Q17 3Q18
Interest income 345,760 310,589 11.3% 337,766 2.4% 345,760 312,950 10.5% 337,766 2.4% - - - - - - (2,361) -
Interest expense (158,322) (127,091) 24.6% (152,431) 3.9% (158,322) (129,826) 21.9% (152,431) 3.9% - - - - - - 2,735 -
Net interest
income 187,438 183,498 2.1% 185,335 1.1% 187,438 183,124 2.4% 185,335 1.1% - - - - - - 374 -
Fee and
commission
income 62,350 53,290 17.0% 60,413 3.2% 62,350 53,739 16.0% 60,413 3.2% - - - - - - (449) -
Fee and
commission
expense (21,006) (16,807) 25.0% (20,932) 0.4% (21,006) (17,001) 23.6% (20,932) 0.4% - - - - - - 194 -
Net fee and
commission
income 41,344 36,483 13.3% 39,481 4.7% 41,344 36,738 12.5% 39,481 4.7% - - - - - - (255) -
Net foreign
currency
gain 53,358 28,139 89.6% 36,827 44.9% 53,358 27,464 94.3% 36,827 44.9% - - - - - - 675 -
Net other income
/
(expense) (9,073) 12,708 NMF 7,437 NMF (9,073) 12,986 NMF 7,437 NMF - - - - - - (278) -
Revenue 273,067 260,828 4.7% 269,080 1.5% 273,067 260,312 4.9% 269,080 1.5% - - - - - - 516 -
Salaries and
other
employee
benefits (58,331) (55,144) 5.8% (54,107) 7.8% (58,331) (55,789) 4.6% (54,107) 7.8% - - - - - - 645 -
Administrative
expenses (30,010) (31,760) -5.5% (30,759) -2.4% (30,010) (32,245) -6.9% (30,759) -2.4% - - - - - - 485 -
Depreciation and
amortisation (11,365) (10,514) 8.1% (11,162) 1.8% (11,365) (10,514) 8.1% (11,162) 1.8% - - - - - - - -
Other operating
expenses (1,151) (1,194) -3.6% (1,109) 3.8% (1,151) (1,194) -3.6% (1,109) 3.8% - - - - - - - -
Operating
expenses (100,857) (98,612) 2.3% (97,137) 3.8% (100,857) (99,742) 1.1% (97,137) 3.8% - - - - - - 1,130 -
Profit from
associates 318 255 24.7% 326 -2.5% 318 255 24.7% 326 -2.5% - - - - - - - -
Operating income
before
cost of risk 172,528 162,471 6.2% 172,269 0.2% 172,528 160,825 7.3% 172,269 0.2% - - - - - - 1,646 -
Expected credit
loss
/ impairment
charge
on loans to
customers (25,783) (41,911) -38.5% (43,505) -40.7% (25,783) (41,911) -38.5% (43,505) -40.7% - - - - - - - -
Expected credit
loss
/ impairment
charge
on finance lease
receivables 514 492 4.5% (426) NMF 514 492 4.5% (426) NMF - - - - - - - -
Other expected
credit
loss /
impairment
charge on other
assets
and provisions (15,509) (1,009) NMF (4,176) NMF (15,509) (1,009) NMF (4,176) NMF - - - - - - - -
Cost of risk (40,778) (42,428) -3.9% (48,107) -15.2% (40,778) (42,428) -3.9% (48,107) -15.2% - - - - - - - -
Profit before
non-recurring
items and income
tax 131,750 120,043 9.8% 124,162 6.1% 131,750 118,397 11.3% 124,162 6.1% - - - - - - 1,646 -
Net non-recurring
items (6,586) (213) NMF (3,747) 75.8% (6,586) (213) NMF (3,747) 75.8% - - - - - - - -
Profit before
income
tax 125,164 119,830 4.5% 120,415 3.9% 125,164 118,184 5.9% 120,415 3.9% - - - - - - 1,646 -
Income tax
expense (10,348) (11,050) -6.4% (9,316) 11.1% (10,348) (11,050) -6.4% (9,316) 11.1% - - - - - - - -
Profit from
continuing
operations 114,816 108,780 5.5% 111,099 3.3% 114,816 107,134 7.2% 111,099 3.3% - - - - - - 1,646 -
Profit from
discontinued
operations - 10,029 NMF - - - - - - - - 11,675 NMF - - - (1,646) -
Profit 114,816 118,809 -3.4% 111,099 3.3% 114,816 107,134 7.2% 111,099 3.3% - 11,675 NMF - - - - -
Attributable to:
- shareholders
of
the Group 114,240 113,729 0.4% 110,651 3.2% 114,240 106,687 7.1% 110,651 3.2% - 7,042 NMF - - - - -
-
non-controlling
interests 576 5,080 -88.7% 448 28.6% 576 447 28.9% 448 28.6% - 4,633 NMF - - - - -
Profit from
continuing
operations
attributable
to:
- shareholders
of
the Group 114,240 108,333 5.5% 110,651 3.2% 114,240 106,687 7.1% 110,651 3.2% - - - - - - 1,646 -
-
non-controlling
interests 576 447 28.9% 448 28.6% 576 447 28.9% 448 28.6% - - - - - - - -
Profit from
discontinued
operations
attributable
to:
- shareholders
of
the Group - 5,396 NMF - - - - - - - - 7,042 NMF - - - (1,646) -
-
non-controlling
interests - 4,633 NMF - - - - - - - - 4,633 NMF - - - - -
Earnings per
share
(basic) 2.40 3.05 -21.3% 2.32 3.4%
- earnings per
share
from continuing
operations 2.40 2.91 -17.5% 2.32 3.4%
- earnings per - 0.14 NMF - -
share
from
discontinued
operations
Earnings per
share
(diluted) 2.40 2.90 -17.2% 2.32 3.4%
- earnings per
share
from continuing
operations 2.40 2.77 -13.4% 2.32 3.4%
- earnings per - 0.13 NMF - -
share
from
discontinued
operations
INCOME STATEMENT Bank of Georgia Banking Business Discontinued Operations Eliminations
(FULL YEAR) Group Consolidated
GEL thousands, 2018 2017 Change 2018 2017 Change 2018 2017 Change 2018 2017 Change
unless otherwise y-o-y y-o-y y-o-y y-o-y
noted
Interest income 1,322,297 1,131,914 16.8% 1,327,085 1,140,292 16.40% - - - (4,788) (8,378) -42.9%
Interest expense (580,544) (459,379) 26.4% (587,481) (468,192) 25.50% - - - 6,937 8,813 -21.3%
Net interest
income 741,753 672,535 10.3% 739,604 672,100 10.0% - - - 2,149 435 NMF
Fee and
commission
income 228,769 190,392 20.2% 229,670 192,499 19.3% - - - (901) (2,107) -57.2%
Fee and
commission
expense (76,107) (60,342) 26.1% (76,488) (61,025) 25.3% - - - 381 683 -44.2%
Net fee and
commission
income 152,662 130,050 17.4% 153,182 131,474 16.5% - - - (520) (1,424) -63.5%
Net foreign
currency gain 128,762 79,106 62.8% 129,437 86,060 50.4% - - - (675) (6,954) -90.3%
Net other income 7,262 18,645 -61.1% 7,815 19,701 -60.3% - - - (553) (1,056) -47.6%
Revenue 1,030,439 900,336 14.5% 1,030,038 909,335 13.3% - - - 401 (8,999) NMF
Salaries and
other employee
benefits (214,761) (195,994) 9.6% (215,816) (198,213) 8.9% - - - 1,055 2,219 -52.5%
Administrative
expenses (112,654) (98,372) 14.5% (113,264) (100,291) 12.9% - - - 610 1,919 -68.2%
Depreciation and
amortisation (45,442) (40,974) 10.9% (45,442) (40,974) 10.9% - - - - - -
Other operating
expenses (3,995) (3,458) 15.5% (3,995) (3,458) 15.5% - - - - - -
Operating
expenses (376,852) (338,798) 11.2% (378,517) (342,936) 10.4% - - - 1,665 4,138 -59.8%
Profit from
associates 1,339 1,311 2.1% 1,339 1,311 2.1% - - - - - -
Operating income
before cost
of risk 654,926 562,849 16.4% 652,860 567,710 15.0% - - - 2,066 (4,861) NMF
Expected credit
loss /
impairment
charge on loans
to customers (139,499) (155,210) -10.1% (139,499) (155,210) -10.1% - - - - - -
Expected credit
loss /
impairment
charge on
finance lease
receivables (164) (496) -66.9% (164) (496) -66.9% - - - - - -
Other expected
credit loss
/ impairment
charge on other
assets and
provisions (20,562) (11,590) 77.4% (20,562) (11,590) 77.4% - - - - - -
Cost of risk (160,225) (167,296) -4.2% (160,225) (167,296) -4.2% - - - - - -
Profit before
non-recurring
items and income
tax 494,701 395,553 25.1% 492,635 400,414 23.0% - - - 2,066 (4,861) NMF
Net non-recurring
items (57,156) (4,300) NMF (57,328) (4,300) NMF - - - 172 - -
Profit before
income tax 437,545 391,253 11.8% 435,307 396,114 9.9% - - - 2,238 (4,861) NMF
Income tax
expense (56,665) (26,592) 113.1% (56,665) (26,592) 113.1% - - - - - -
Profit from
continuing
operations 380,880 364,661 4.4% 378,642 369,522 2.5% - - - 2,238 (4,861) NMF
Profit from
discontinued
operations 107,898 98,788 9.2% - - - 110,136 93,927 17.3% (2,238) 4,861 NMF
Profit 488,778 463,449 5.5% 378,642 369,522 2.5% 110,136 93,927 17.3% - - -
Attributable to:
- shareholders
of the Group 468,996 437,615 7.2% 377,075 367,832 2.5% 91,921 69,783 31.7% - - -
-
non-controlling
interests 19,782 25,834 -23.4% 1,567 1,690 -7.3% 18,215 24,144 -24.6% - - -
Profit from
continuing
operations
attributable to:
- shareholders
of the Group 379,313 362,971 4.5% 377,075 367,832 2.5% - - - 2,238 (4,861) NMF
-
non-controlling
interests 1,567 1,690 -7.3% 1,567 1,690 -7.3% - - - - - -
Profit from
discontinued
operations
attributable to:
- shareholders
of the Group 89,683 74,644 20.1% - - - 91,921 69,783 31.7% (2,238) 4,861 NMF
-
non-controlling
interests 18,215 24,144 -24.6% - - - 18,215 24,144 -24.6% - - -
Earnings per
share (basic) 10.78 11.61 -7.1%
- earnings per
share from
continuing
operations 8.72 9.63 -9.4%
- earnings per
share from
discontinued
operations 2.06 1.98 4.0%
Earnings per
share (diluted) 10.71 11.07 -3.3%
- earnings per
share from
continuing
operations 8.66 9.18 -5.7%
- earnings per
share from
discontinued
operations 2.05 1.89 8.5%
BALANCE SHEET Bank of Georgia Group Consolidated Banking Business Discontinued Operations Eliminations
GEL thousands, Dec-18 Dec Change Sep-18 Change Dec-18 Dec Change Sep-18 Change Dec-18 Dec Change Sep-18 Change Dec-18 Dec-17 Sep-18
unless otherwise -17 y-o-y q-o-q -17 y-o-y q-o-q -17 y-o-y q-o-q
noted
Cash and cash
equivalents 1,215,799 1,582,435 -23.2% 1,237,867 -1.8% 1,215,799 1,516,401 -19.8% 1,237,867 -1.8% - 374,301 NMF - - - (308,267) -
Amounts due
from credit
institutions 1,305,216 1,225,947 6.5% 1,398,061 -6.6% 1,305,216 1,216,349 7.3% 1,398,061 -6.6% - 38,141 NMF - - - (28,543) -
Investment
securities 2,019,017 1,564,869 29.0% 2,060,880 -2.0% 2,019,017 1,613,759 25.1% 2,060,880 -2.0% - 33,059 NMF - - - (81,949) -
Loans to
customers
and finance
lease
receivables 9,397,747 7,690,450 22.2% 8,762,413 7.3% 9,397,747 7,741,420 21.4% 8,762,413 7.3% - - - - - - (50,970) -
Accounts
receivable
and other loans 2,849 38,944 -92.7% 3,256 -12.5% 2,849 3,572 -20.2% 3,256 -12.5% - 35,446 NMF - - - (74) -
Insurance
premiums
receivable - 30,573 NMF - - - - - - - - 30,854 NMF - - - (281) -
Prepayments 44,294 149,558 -70.4% 48,444 -8.6% 44,294 61,501 -28.0% 48,444 -8.6% - 88,057 NMF - - - - -
Inventories 13,292 100,194 -86.7% 18,598 -28.5% 13,292 20,086 -33.8% 18,598 -28.5% - 80,108 NMF - - - - -
Investment
property 151,446 353,565 -57.2% 216,715 -30.1% 151,446 202,533 -25.2% 216,715 -30.1% - 155,367 NMF - - - (4,335) -
Property and
equipment 344,059 988,436 -65.2% 315,980 8.9% 344,059 322,925 6.5% 315,980 8.9% - 661,176 NMF - - - 4,335 -
Goodwill 33,351 55,276 -39.7% 33,351 0.0% 33,351 33,351 0.0% 33,351 0.0% - 21,925 NMF - - - - -
Intangible
assets 83,366 60,980 36.7% 85,247 -2.2% 83,366 55,525 50.1% 85,247 -2.2% - 5,455 NMF - - - - -
Income tax
assets 19,451 2,293 748.3% 28,237 -31.1% 19,451 919 NMF 28,237 -31.1% - 1,374 NMF - - - - -
Other assets 126,008 188,732 -33.2% 105,883 19.0% 126,008 119,337 5.6% 105,883 19.0% - 73,468 NMF - - - (4,073) -
Assets held
for sale 42,408 - NMF - NMF 42,408 - NMF - NMF - - - - - - - -
Assets of
disposal
group held
for sale - 1,136,417 NMF - - - - - - - - 1,165,182 NMF - - - (28,765) -
Total assets 14,798,303 15,168,669 -2.4% 14,314,932 3.4% 14,798,303 12,907,678 14.6% 14,314,932 3.4% - 2,763,913 NMF - - - (502,922) -
Client deposits
and notes 8,133,853 6,712,482 21.2% 7,932,536 2.5% 8,133,853 7,078,058 14.9% 7,932,536 2.5% - - - - - - (365,576) -
Amounts due
to credit
institutions 2,994,879 3,155,839 -5.1% 3,006,739 -0.4% 2,994,879 2,778,338 7.8% 3,006,739 -0.4% - 377,501 NMF - - - - -
Debt securities
issued 1,730,414 1,709,152 1.2% 1,578,532 9.6% 1,730,414 1,386,412 24.8% 1,578,532 9.6% - 357,442 NMF - - - (34,702) -
Accruals and
deferred income 47,063 132,669 -64.5% 35,977 30.8% 47,063 42,207 11.5% 35,977 30.8% - 90,462 NMF - - - - -
Insurance
contracts
liabilities - 46,402 NMF - - - - - - - - 46,402 NMF - - - - -
Income tax
liabilities 28,855 20,959 37.7% 38,705 -25.4% 28,855 20,100 43.6% 38,705 -25.4% - 859 NMF - - - - -
Other
liabilities 64,966 142,133 -54.3% 52,495 23.8% 64,966 49,861 30.3% 52,495 23.8% - 92,553 NMF - - - (281) -
Liabilities
of disposal
group held
for sale - 516,663 NMF - - - - - - - - 619,026 NMF - - - (102,363) -
Total
liabilities 13,000,030 12,436,299 4.5% 12,644,984 2.8% 13,000,030 11,354,976 14.5% 12,644,984 2.8% - 1,584,245 NMF - - - (502,922) -
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 480,555 106,086 NMF 464,960 3.4% 480,555 - NMF 464,960 3.4% - 106,086 NMF - - - - -
Treasury shares (51) (66) -22.7% (44) 15.9% (51) (66) -22.7% (44) 15.9% - - - - - - - -
Other reserves 30,515 122,082 -75.0% 34,283 -11.0% 30,515 (74,046) NMF 34,283 -11.0% - 196,128 NMF - - - - -
Retained
earnings 1,277,732 2,180,415 -41.4% 1,161,983 10.0% 1,277,732 1,618,775 -21.1% 1,161,983 10.0% - 561,640 NMF - - - - -
Reserves of
disposal group
held for sale - 10,934 NMF - - - - - - - - 10,934 NMF - - - - -
Total equity
attributable
to shareholders
of the Group 1,790,369 2,420,602 -26.0% 1,662,800 7.7% 1,790,369 1,545,814 15.8% 1,662,800 7.7% - 874,788 NMF - - - - -
Non-controlling
interests 7,904 311,768 -97.5% 7,148 10.6% 7,904 6,888 14.8% 7,148 10.6% - 304,880 NMF - - - - -
Total equity 1,798,273 2,732,370 -34.2% 1,669,948 7.7% 1,798,273 1,552,702 15.8% 1,669,948 7.7% - 1,179,668 NMF - - - - -
Total
liabilities
and equity 14,798,303 15,168,669 -2.4% 14,314,932 3.4% 14,798,303 12,907,678 14.6% 14,314,932 3.4% - 2,763,913 NMF - - - (502,922) -
Book value
per share 37.59 65.22 -42.4% 34.89 7.7%
RESTATED INCOME STATEMENT (QUARTERLY)
INCOME STATEMENT Bank of Georgia Group Banking Business
(QUARTERLY) Consolidated
GEL thousands,
unless
otherwise stated 1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18
Interest income 311,275 327,496 337,766 345,760 313,679 329,880 337,766 345,760
Interest expense (130,035) (139,756) (152,431) (158,322) (133,431) (143,298) (152,431) (158,322)
Net interest income 181,240 187,740 185,335 187,438 180,248 186,582 185,335 187,438
Fee and commission
income 50,673 55,333 60,413 62,350 51,213 55,694 60,413 62,350
Fee and commission
expense (16,488) (17,681) (20,932) (21,006) (16,702) (17,848) (20,932) (21,006)
Net fee and
commission
income 34,185 37,652 39,481 41,344 34,511 37,846 39,481 41,344
Net foreign
currency
gain 13,151 25,426 36,827 53,358 14,253 24,999 36,827 53,358
Net other income
/(expense) 5,518 3,380 7,437 (9,073) 5,745 3,707 7,437 (9,073)
Revenue 234,094 254,198 269,080 273,067 234,757 253,134 269,080 273,067
Salaries and other
employee benefits (48,818) (53,505) (54,107) (58,331) (49,453) (53,925) (54,107) (58,331)
Administrative
expenses (25,168) (26,717) (30,759) (30,010) (25,633) (26,862) (30,759) (30,010)
Depreciation and
amortisation (11,522) (11,393) (11,162) (11,365) (11,522) (11,393) (11,162) (11,365)
Other operating
expenses (772) (963) (1,109) (1,151) (771) (964) (1,109) (1,151)
Operating expenses (86,280) (92,578) (97,137) (100,857) (87,379) (93,144) (97,137) (100,857)
Profit from
associates 319 376 326 318 319 376 326 318
Operating income
before
cost of risk 148,133 161,996 172,269 172,528 147,697 160,366 172,269 172,528
Expected credit
loss
/ impairment
charge
on loans to
customers (36,676) (33,535) (43,505) (25,783) (36,676) (33,535) (43,505) (25,783)
Expected credit
loss
/ impairment
charge
on finance lease
receivables 13 (265) (426) 514 13 (265) (426) 514
Other expected
credit
loss / impairment
charge
on other assets
and
provisions 2,850 (3,727) (4,176) (15,509) 2,849 (3,726) (4,176) (15,509)
Cost of risk (33,813) (37,527) (48,107) (40,778) (33,814) (37,526) (48,107) (40,778)
Profit before
non-recurring
items and income
tax 114,320 124,469 124,162 131,750 113,883 122,840 124,162 131,750
Net non-recurring
items (2,948) (43,875) (3,747) (6,586) (2,948) (44,047) (3,747) (6,586)
Profit before
income
tax 111,372 80,594 120,415 125,164 110,935 78,793 120,415 125,164
Income tax expense (9,283) (27,718) (9,316) (10,348) (9,283) (27,718) (9,316) (10,348)
Profit from
continuing
operations 102,089 52,876 111,099 114,816 101,652 51,075 111,099 114,816
Profit from
discontinued
operations 28,938 78,960 - - - - - -
Profit 131,027 131,836 111,099 114,816 101,652 51,075 111,099 114,816
BELARUSKY NARODNY BANK (BNB)
INCOME STATEMENT, Change Change Change
HIGHLIGHTS 4Q18 4Q17 y-o-y 3Q18 q-o-q 2018 2017 y-o-y
GEL thousands, unless
otherwise stated
Net interest income 6,471 6,021 7.5% 6,525 -0.8% 25,894 29,397 -11.9%
Net fee and commission
income 1,356 2,421 -44.0% 1,669 -18.8% 7,805 9,336 -16.4%
Net foreign currency
gain 5,261 3,457 52.2% 3,885 35.4% 16,605 10,852 53.0%
Net other income 332 1,295 -74.4% 105 NMF 746 1,773 -57.9%
Revenue 13,420 13,194 1.7% 12,184 10.1% 51,050 51,358 -0.6%
Operating expenses (8,785) (8,185) 7.3% (7,571) 16.0% (32,261) (29,665) 8.8%
Operating income
before cost of risk 4,635 5,009 -7.5% 4,613 0.5% 18,789 21,693 -13.4%
Cost of risk 670 (518) NMF (718) NMF (3,070) (9,092) -66.2%
Net non-recurring
items (8) (5) 60.0% (3) NMF (716) (60) NMF
Profit before income
tax 5,297 4,486 18.1% 3,892 36.1% 15,003 12,541 19.6%
Income tax expense (1,162) (875) 32.8% (885) 31.3% (3,546) (2,257) 57.1%
Profit 4,135 3,611 14.5% 3,007 37.5% 11,457 10,284 11.4%
BALANCE SHEET, HIGHLIGHTS Dec-18 Dec-17 Change Sep-18 Change
y-o-y q-o-q
GEL thousands, unless
otherwise stated
Cash and cash equivalents 110,340 104,309 5.8% 65,808 67.7%
Amounts due from credit
institutions 19,664 10,499 87.3% 11,469 71.5%
Investment securities 67,734 73,415 -7.7% 109,798 -38.3%
Loans to customers and
finance lease receivables 432,657 399,516 8.3% 394,749 9.6%
Other assets 50,155 37,096 35.2% 42,038 19.3%
Total assets 680,550 624,835 8.9% 623,862 9.1%
Client deposits and notes 389,001 310,050 25.5% 363,233 7.1%
Amounts due to credit
institutions 162,823 202,492 -19.6% 146,932 10.8%
Debt securities issued 38,163 28,512 33.8% 28,825 32.4%
Other liabilities 5,300 4,261 24.4% 4,433 19.6%
Total liabilities 595,287 545,315 9.2% 543,423 9.5%
Total equity 85,263 79,520 7.2% 80,439 6.0%
Total liabilities and
equity 680,550 624,835 8.9% 623,862 9.1%
BANKING BUSINESS KEY RATIOS 4Q18 4Q17 3Q18 2018 2017
Profitability
ROAA, Annualised(17) 3.2% 3.4% 3.2% 3.2% 3.2%
ROAE, Annualised(17) 26.2% 27.8% 26.8% 26.1% 25.2%
RB ROAE(17) 27.3% 36.6% 30.9% 30.0% 31.6%
CIB ROAE(17) 27.9% 18.1% 22.6% 22.6% 17.6%
Net Interest Margin, Annualised 6.0% 7.3% 6.4% 6.5% 7.3%
RB NIM 6.7% 8.4% 7.2% 7.5% 8.5%
CIB NIM 3.2% 3.5% 3.4% 3.3% 3.4%
Loan Yield, Annualised 12.8% 14.3% 13.5% 13.5% 14.2%
RB Loan Yield 14.2% 15.9% 14.8% 15.1% 16.1%
CIB Loan Yield 9.8% 11.2% 10.8% 10.2% 10.7%
Liquid Assets Yield, Annualised 3.8% 3.4% 3.8% 3.8% 3.4%
Cost of Funds, Annualised 5.0% 4.8% 5.0% 5.0% 4.7%
Cost of Client Deposits and
Notes, Annualised 3.4% 3.5% 3.6% 3.5% 3.5%
RB Cost of Client Deposits
and Notes 2.9% 2.8% 2.8% 2.9% 2.9%
CIB Cost of Client Deposits
and Notes 4.0% 4.0% 4.4% 4.1% 4.0%
Cost of Amounts Due to Credit
Institutions, Annualised 7.9% 6.5% 7.4% 7.3% 6.4%
Cost of Debt Securities Issued 7.8% 7.8% 7.8% 7.8% 7.4%
Operating Leverage, Y-O-Y 3.8% -2.9% 6.8% 2.9% -0.1%
Operating Leverage, Q-O-Q -2.3% -0.2% 2.0% 0.0% 0.0%
Efficiency
Cost / Income 36.9% 38.3% 36.1% 36.7% 37.7%
RB Cost / Income 36.7% 38.7% 36.3% 36.5% 38.3%
CIB Cost / Income 29.6% 31.0% 30.5% 30.9% 32.0%
Liquidity
NBG Liquidity Ratio 31.9% 34.4% 32.5% 31.9% 34.4%
Liquid Assets To Total
Liabilities 34.9% 38.3% 37.1% 34.9% 38.3%
Net Loans To Client Deposits
and Notes 115.5% 109.4% 110.5% 115.5% 109.4%
Net Loans To Client Deposits
and Notes + DFIs 99.6% 92.4% 95.3% 99.6% 92.4%
Leverage (Times) 7.2 7.3 7.6 7.2 7.3
Asset Quality:
NPLs (in GEL) 318,356 301,268 312,203 318,356 301,268
NPLs To Gross Loans To Clients 3.3% 3.8% 3.5% 3.3% 3.8%
NPL Coverage Ratio 90.5% 92.7% 91.7% 90.5% 92.7%
NPL Coverage Ratio, Adjusted
for discounted value of
collateral 129.9% 130.6% 136.9% 129.9% 130.6%
Cost of Credit Risk, Annualised 1.1% 2.1% 2.0% 1.6% 2.2%
RB Cost of Credit Risk 1.7% 1.8% 2.4% 2.1% 2.5%
CIB Cost of Credit Risk -0.2% 3.2% 1.5% 0.8% 1.5%
Capital Adequacy:
NBG (Basel III) Tier I Capital
Adequacy Ratio 12.2% 12.4% 11.0% 12.2% 12.4%
NBG (Basel III) Total Capital
Adequacy Ratio 16.6% 17.9% 15.9% 16.6% 17.9%
Selected Operating Data:
Total Assets Per FTE 1,995 1,832 1,961 1,995 1,832
Number Of Active Branches,
Of Which: 276 286 285 276 286
- Express Branches (including
Metro) 165 156 169 165 156
- Bank of Georgia Branches 99 118 104 99 118
- Solo Lounges 12 12 12 12 12
Number Of ATMs 876 850 858 876 850
Number Of Cards Outstanding,
Of Which: 2,177,273 2,227,000 2,192,870 2,177,273 2,227,000
- Debit cards 1,630,235 1,553,427 1,603,960 1,630,235 1,553,427
- Credit cards 547,038 673,573 588,910 547,038 673,573
Number Of POS Terminals 14,220 13,216 13,419 14,220 13,216
FX Rates:
GEL/US$ exchange rate
(period-end) 2.6766 2.5922 2.6151
GEL/GBP exchange rate
(period-end) 3.3955 3.5005 3.4130
Dec-18 Dec-17 Sep-18
Full Time Employees, Group,
Of Which: 7,416 7,045 7,300
- Full Time Employees, BOG
Standalone 5,828 5,501 5,709
- Full Time Employees, BNB 669 702 705
- Full Time Employees, BB
other 919 842 886
Shares Outstanding Dec-18 Dec-17 Sep-18
Ordinary Shares 47,626,147 37,116,399 47,656,452
Treasury Shares 1,543,281 2,268,313 1,512,978
Total Shares Outstanding 49,169,428 39,384,712 49,169,430
(17) 2018 results adjusted for demerger related expenses and
one-off impact of re-measurement of deferred tax balances
Annex:
In this announcement the Management uses various alternative
performance measures ("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 our operating performance and make day-to-day operating
decisions.
Glossary
1. Return on average total assets (ROAA) equals Banking Business Profit
for the period divided by monthly average total assets for the same
period;
=====================================================================================
2. Return on average total equity (ROAE) equals Banking Business 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;
3. Net Interest Margin (NIM) equals Net Interest Income of the period
divided by monthly Average Interest Earning Assets Excluding Cash
for the same period; Interest Earning Assets Excluding Cash comprise:
Amounts Due From Credit Institutions, Investment Securities (but excluding
corporate shares) and net Loans To Customers And Finance Lease Receivables;
4. Loan Yield equals Interest Income from Loans To Customers And Finance
Lease Receivables divided by monthly Average Gross Loans To Customers
And Finance Lease Receivables;
5. Cost of Funds equals Interest Expense of the period divided by
monthly average interest bearing liabilities; interest bearing liabilities
include: amounts due to credit institutions, client deposits and notes,
and debt securities issued;
6. Operating Leverage equals percentage change in revenue less percentage
change in operating expenses;
7. Cost / Income Ratio equals operating expenses divided by revenue;
8. NBG Liquidity Ratio equals daily average liquid assets (as defined
by NBG) during the month divided by daily average liabilities (as
defined by NBG) during the month;
9. Liquid assets include: cash and cash equivalents, amounts due from
credit institutions and investment securities;
10. Liquidity Coverage Ratio equals high quality liquid assets (as
defined by NBG) divided by net cash outflows over the next 30 days
(as defined by NBG);
11. Leverage (Times) equals total liabilities divided by total equity;
12. NPL Coverage Ratio equals allowance for impairment of loans and
finance lease receivables divided by NPLs;
13. NPL Coverage Ratio adjusted for discounted value of collateral
equals allowance for impairment of loans and finance lease receivables
divided by NPLs (discounted value of collateral is added back to allowance
for impairment);
14. Cost of Credit Risk equals 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;
15. NBG (Basel III) Tier I Capital Adequacy ratio equals Tier I Capital
divided by total risk weighted assets, both calculated in accordance
with the requirements of the National Bank of Georgia instructions;
16. NBG (Basel III) Total Capital Adequacy ratio equals total regulatory
capital divided by total risk weighted assets, both calculated in
accordance with the requirements of the National Bank of Georgia instructions;
17. NMF - Not meaningful
Bank of Georgia Group PLC 4Q18 and FY18 Preliminary Results
Conference Call Details
Bank of Georgia Group PLC ("Bank of Georgia Group" or the
"Group") has published its 4(th) quarter and full year 2018
preliminary financial results at 07:00 London time. 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, 19
February 2019, at 13:00 UK / 14:00 CET / 08:00 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: 30-Day replay:
Pass code for replays/Conference Pass code for replays / Conference
ID: 2747369 ID: 2747369
International Dial-in: +44 (0) International Dial in: +44 (0)
2071 928000 3333009785
UK: 08445718892 UK National Dial In: 08717000471
US: 16315107495 UK Local Dial In: 08445718951
Austria: 019286559 USA Free Call Dial In: 1 (866)
Belgium: 024009874 331-1332
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
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.
END
FR CKCDNPBKKKBD
(END) Dow Jones Newswires
February 19, 2019 02:01 ET (07:01 GMT)
Bank Of Georgia (LSE:BGEO)
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Bank Of Georgia (LSE:BGEO)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
