Bank of Georgia FY profits up as mortgages, SME lending on rise
Bank of Georgia Group said annual profits rose 11.8% as it said unsecured consumer loans would moderate but expected to deliver solid growth in mortgages and SME lending.
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Pretax profit rose to GEL 437.5m (£128.5m) from GEL 391.3m, wile the loan book was up 22.2% o GEL 9.4bn.
The bank said it had been working with Georgia's central bank to implement regulatory changes relating to updated caps on payment-to-income and loan-to-value ratios and an increase lending limits.
“All of these changes have now been introduced with the expectation that banks will see a shift towards lending to corporates and the SME sector, and in the mortgage sector, together with further progress in the de-dollarisation of bank balance sheets,” BoG said.
It added that these changes would allow it to consider issuing more tier 1 capital through US-denominated securities in 2019.
It now expected lending growth over the next year to at the lower end of its 15%-20% medium-to long-term target.
“The government’s prudent macroeconomic policies continue to serve the country well, and the economy has remained extremely resilient to pressures in neighbouring countries, and some volatility in regional financial markets,” said chief executive Archil Gachechiladze said.