22nd Nov 2018 10:16
LONDON (Alliance News) - Bank of Georgia Group PLC said Thursday good franchise growth and returns in both its retail and corporate investment banking businesses resulted in a year-on-year increase in quarterly earnings.
"The group has delivered another quarter of strong balance sheet expansion and superior profitability, with good franchise growth and returns in both the retail and corporate investment banking businesses, despite an impact on the business from the Georgian lari's 6.7% depreciation against the US dollar during the third quarter," said Chief Executive Kaha Kiknavelidze.
The company, which operates a bank with the same name in Georgia, recorded pretax profit of GEL113.3 million, or around GBP33.4 million, for the third quarter to September 30, up from GEL101.9 million in the comparative year ago period.
Net interest income rose to GEL184.8 million from GEL168.6 million, and adjusted pretax profit increased 16% to GEL117.1 million.
Year-to-date, the company posted pretax profit of GEL299.8 million versus GEL271.4 million, on net interest income of GEL553.4 million from GEL489.0 million.
The company's retail banking business delivered revenue of GEL183.6 million in the third quarter, up 18% year-on-year. Bank of Georgia's loan book grew 27% to GEL5.79 billion and client deposits increased 40% to GEL4.03 billion.
The corporate investment banking unit delivered loan book growth of 24% in the third quarter, reaching GEL2.48 billion. Investment Management's assets under management increased to GEL2.18 billion in third quarter, up 20% year-on-year.
Bank of Georgia expects customer lending growth for 2018 to be comfortably within its 15% to 20% growth target and lending growth over the next few years to be closer to 15%.
Shares in the company were trading 2.3% lower at 1,552.80 pence each in morning trade Thursday.
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