Retail business boosts Bank of Georgia
Bank of Georgia reported a rise in fourth quarter and full year profits, driven by growth in its retail business.
Pre-tax profit increased 32.8% year on year to GEL172.05m (£46.5m) in the final quarter of 2019, while revenue increased by 1.05% year-on-year to GEL208bn.
Full year pre-tax profit rose 22% to GEL572.8M.
The company's retail banking net loan book reached GEL7.42bn at December 31, 2019, up 18.5% year-on-year, driven by mortgage and small firm lending, the company said on Thursday.
Total assets increased 13% TO GEL 2.56bn in the fourth quarter, up 22.3% year on year.
BoG said its net interest margin (NIM), the difference in rates charged for savers and borrowers, was was 5.4% in the fourth quarter and 5.6% in 2019.
“During the fourth quarter 2019, NIM was down 60 basis points (bps) year on year due to the 140 bps year-on-year decrease in loan yield, largely reflecting our shift towards a higher quality, finer margin product mix on the back of tighter regulatory conditions for unsecured consumer lending, partially offset by 30bps decline in cost of funds,” the bank said.
The annual dividend was increased 4.5% to GEL 2.67 per share.