25th Jun 2019 09:36
(Alliance News) - Bank of Georgia Group PLC on Tuesday said it intends to focus on efficiency and stringent cost control in order to maintain profitability achieved in 2018.
Ahead of its investor day, the FTSE 250-listed company said its key priorities over the medium-term will be to sustain its return on average equity in excess of 20% per annum, grow its customer lending at 15% per annum, and to maintain a dividend payout in the range of 25% to 40% of earnings.
Return on average equity was 14.6% in 2018, with 24.2% customer lending growth year-on-year. The annual dividend totalled GEL2.55 per share, or about 70.86 pence, representing a payout ratio of 30%.
Over the next few years, the bank said it will continue to develop its data analytics capabilities and digital presence, to "fully transform" the efficiency of its banking operations and to provide solution-based banking for its clients.
For 2019, Bank of Georgia said it expects its net interest margin to reduce by 30 to 40 basis points from 6.5% reported for 2018, reflecting the impact of product mix changes and recent note issuance. Thereafter, the bank expects the net interest margin to be broadly stable, it said.
The company also said it expects to manage to a cost/income ratio of 35% compared to 36.7% reported a year earlier. The lower the cost-to-income ratio is, the more profitable the bank will be.
On a divisional basis, in Solo Banking, the company's premium banking brand, Bank of Georgia is targeting to double its profit to GEL112 million, about GBP31.2 million, over the next three years.
The stock was trading 1.8% lower on Tuesday morning at 1,512.00 pence a share.
Related Shares:
Bank Of Georgia Group