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Bank of Georgia has solid first quarter as it prepares for BGEO demerger
Bank of Georgia posted a decent 18.8% rise in its first quarter profit to GEL 128.56m on Monday, with basic earnings per share ahead 16.7% year-on-year to GEL 3.08.
The FTSE 250 firm said its book value per share was up 13.7% over the same time last year to GEL 64.91, with equity attributable to shareholders rising 11.7% to GEL 2.43bn.
Total assets reaches GEL 15.47bn, up 23.1% over the same time last year.
Revenue in its banking business was up 10.6% at GEL 236.39m, and revenue in its investment arm was 16.3% higher at GEL 296.68m.
"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," said Bank of Georgia CEO Kaha Kiknavelidze.
"In 1Q18, real GDP growth was at an estimated 5.2% year-on-year, with inflation remaining well contained at 2.8%."
In addition, the lari strengthened by 6.9% against the dollar during the first quarter.
"The National Bank of Georgia continues to increase Georgia's US dollar reserves and has recently been buying dollars, to mitigate further appreciation of the lari."
Following shareholder approval on 30 April of the demerger of BGEO Group, Kiknavelidze noted it was the last quarterly report incorporating the results of both Bank of Georgia Group and Georgia Capital.
"The demerger is expected to be completed later this month, on 29 May, when both companies will become separately listed on the premium segment of the London Stock Exchange."
Kiknavelidze said that over the last few years, the group had achieved "remarkable growth" and success in both the banking and the investment businesses.
"Leveraging on the continued success of Georgia and its expected future macroeconomic progress and strength, both businesses have exceptional customer franchises, management teams and employees that we, and the board of directors of both companies, expect to thrive as independent businesses that will build on their excellent track record for many years to come."