16th Feb 2016 08:01
LONDON (Alliance News) - BGEO Group PLC Tuesday said it has increased its dividend payout after reporting a solid set of results in 2015 that showed a material rise in revenue and profit.
BGEO, the holding company of JSC Bank of Georgia, reported an 30% lift in pretax profit in 2015 to GEL359.4 million from GEL276.6 million a year earlier after revenue soared 39% to GEL861.6 million from GEL621.2 million.
The effect of the significant rise in revenue on profit was partly offset by higher costs in the period, as BGEO said salaries and employee benefit costs were 20% higher year-on-year whilst administrative costs rose by 24%. Banking depreciation and amortisation costs were also 33% higher in 2015 than they were in 2014 whilst other operating costs were up 14%.
BGEO said its balance sheet strength was supported by "solid capital and liquidity positions" in 2015. The company's net loan book reached a record GEL5.36 billion, which was 21% higher than in 2014 whilst the amount of customer funds being managed increased to GEL4.99 billion, a 43% lift from a year ago.
Earnings before interest, tax, depreciation and amortisation rose by more than 50% in 2015 to GEL546.8 million from GEL364.2 million.
As a result of the solid performance in 2015, BGEO raised its annual dividend for the year by 14% to GEL2.4 per share, which will be converted and paid in pounds and sits comfortably within the company;s payout ratio target of 25% to 40%, it said.
In addition, BGEO said it has instructed the administrators of the Group Employee Benefits Trust to purchase shares in the market totalling approximately USD10.0 million.
Chief Executive Irakli Gilauri said the rise in profit was driven by the outstanding performance of its banking business, with its superior customer driven franchise, sound bank risk management policy and double digit positive operating leverage, combined with an excellent performance from our portfolio of companies in the investment business.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Bank Of Georgia Group