22nd Aug 2024 10:27
(Alliance News) - Bank of Georgia Group PLC on Thursday increased its dividend and launched a new share buyback, amid strong half-year results helped by a healthy Georgian economy and a recent acquisition in Armenia.
Tbilisi-based Bank of Georgia provides banking and financial services in Georgia and Armenia.
Profit after tax was GEL1.47 billion, about GBP413.2 million, in first half of 2024, more than doubled from GEL709.9 million a year before. Net interest income increased by 38% to GEL1.06 billion from GEL767.8 million, while net fee and commission income grew by 28% to GEL258.5 million from GEL201.5 million.
The big increase in half-year results was largely due to Bank of Georgia consolidating the results of Ameriabank CJSC into its own. Bank of Georgia announced the acquisition of the Armenia-based lender for USD303.6 million back in February. On a like-for-like basis, Bank of George said adjusted profit was up 11% in the second quarter alone.
"Despite the political turmoil in Georgia in April-May, the economy has demonstrated its usual resilience and maintained strong growth momentum, with an estimated 9.5% real [gross domestic product] growth for the second quarter," commented Chief Executive Officer Archil Gachechiladze. "Hence, we have increased our full-year growth estimate to 7.0%."
Bank of Georgia declared a GEL3.38 interim dividend, about 95 pence per share. This is up 10% from GEL3.06 in 2023 and is in line with the company's 30% to 50% annual capital distribution ratio.
Bank of Georgia also announced a new GEL73.4 million, about GBP20.6 million, share buyback. The buyback, to be run by Cavendish Capital Markets Ltd, will start "shortly" and be completed by the annual general meeting, expected to be next May. Bank of Georgia said its previous buyback, worth GEL162 million, has been completed.
Bank of Georgia shares were up 0.7% to 4,350.00 pence early Thursday in London.
By Tom Waite, Alliance News editor
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