21st May 2018 08:26
LONDON (Alliance News) - Bank of Georgia Group PLC said on Monday the scheme of arrangement for the demerger of BGEO Group PLC into Bank of Georgia and Georgia Capital has become effective, as it reported a sharp rise in profit for the first quarter of 2018.
BGEO shares have been cancelled, and BGEO has become a wholly-owned subsidiary of Bank of Georgia Group. The demerger, which is subject to the satisfaction of further conditions, is expected to become effective prior to the London market open on Tuesday next week.
Following completion of the demerger, Bank of Georgia and Georgia Capital will be separately listed on the premium segment of the London Stock Exchange.
Separately on Monday, Bank of Georgia said first-quarter pretax profit rose 36% to GEL108.7 million.
The banking business's net interest margin stood at 7.0% for the first quarter, down slightly from 7.4% a year earlier. However, revenue for the banking business rose 11% to GEL236.4 million in the period.
"From a macroeconomic perspective Georgia is going from strength to strength, with business momentum continuing to accelerate and tourism inflows into the country rising at unparalleled levels. In 1Q18, real GDP growth was at an estimated 5.2% year-on-year, with inflation remaining well contained at 2.8%," Bank of Georgia said.
The Banking Business delivered a "strong result in what is traditionally the slow quarter of the year", the company said, with the loan book growing 21% year-on-year.
The group's investment business, Georgia Capital, saw gross profit increase by 20% year-on-year to GEL105.35 million, and net profit grew by 17.3% to GEL 29.4 million.
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