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Bank of Georgia Hldg (BGEO)

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Tuesday 08 May, 2012

Bank of Georgia Hldg

1st Quarter Results

RNS Number : 8262C
Bank of Georgia Holdings PLC
08 May 2012
 



                                                              

Bank of Georgia Announces Q1 2012 Result; profit increases 135%

                                                                                                                                                                                  

 

Bank of Georgia Holdings plc (LSE: BGEO LN), the holding company of JSC Bank of Georgia and its subsidiaries (the "Bank"), Georgia's leading bank, announced today the Bank's Q1 2012 consolidated results (IFRS based, derived from management accounts), reporting a Q1 2012 profit from continuing operations for the quarter of GEL 39.7 million (US$ 23.9 million/GBP 14.9 million), or GEL 1.23 per share (US$0.74 per share/GBP0.46 per share). Unless otherwise mentioned, all comparisons are with the first quarter of 2011.

 

Strong earnings momentum in the first quarter of 2012

 

·      Positive operating leverage maintained with strong profitability

Net interest margin of 7.3%, compared to 6.8% in Q4 2011

Revenue increased by GEL 26.2 million, or 29%, y-o-y, to GEL 116.9 million

Operating expenses increased at less than half the rate of revenue growth; up 14% y-o-y to GEL 57.3 million

Cost to Income ratio improved to 49.1%, from 55.5%

Q1 2012 profit before tax from continuing operations of GEL 47.7 million, up by GEL 12.9 million, or 37%

Profit for the period increased by GEL 22.9 million, or 135.9%, to GEL 39.8 million

Earnings per share (basic) increased by 26.8% to GEL 1.23, compared to GEL 0.97

Return on Average Assets (ROAA) increased to 3.5%, compared to 2.9%

Return on Average Equity (ROAE) declined to 18.9%, from  22.8%, reflecting the significant increase in equity in Q1 2012

 

·      Prudent asset quality with further strengthening of the Bank's conservative balance sheet and capital position

Cost of risk increased to 1.0% from 0.7%. In absolute terms, cost of credit risk increased by GEL 2.0 million, or 36% y-o-y to GEL 7.4  million

Non-performing loans (NPLs) declined to GEL 94.3, or by 2.9%, compared to Q4 2011. NPLs accounted for 3.3% of gross loan book in Q1 2012 and 3.6% of the loan book in Q4 2011

High provisions coverage of non-performing loans at 126.8%

Net loan book increased by 21.0% y-o-y (3.7% year-to-date), while customer funds increased 26.6% y-o-y (declined 4.0% year-to-date);

Excellent funding position with a Net Loans to Customer Funds ratio of 103.4% down from 108.1% twelve months ago

BIS Tier 1 capital adequacy ratio improved significantly to 21.5%

Book Value per Share increased by 13.0% to GEL 26.78 (US$16.13/GBP10.08)

Balance Sheet leverage reduced to 3.7 times, compared to 4.5 times

 

·      Business highlights

Strong performances from each of the Bank's strategic businesses in Georgia - Corporate Banking, Retail Banking and Wealth Management 

Excellent progress in developing the Bank's synergistic businesses: Insurance and Healthcare and Affordable Housing, including the acquisition in May 2012 of Imedi L, the third largest insurance business in Georgia

 

"In what is usually a seasonally quiet period of the year, I am delighted with the Bank's progress in the first quarter of 2012 and to be able to report a strong set of results reflecting continued excellent performances in all of our core businesses during the quarter. Revenue growth of 28.9% more than doubled expense growth of 13.9% which, when combined with strong asset quality metrics, led to a 36.9% increase in profit before tax from continuing operations, compared to the first quarter of last year.

 

Compared to the first quarter of 2011 we have continued to make strong balance sheet progress with customer lending growing by 21.0% and customer funds by 26.6%.  This however masks the significant efforts we have made during the first few months of the year to improve the quality and cost of our deposit funding. In the last quarter of 2011 we experienced very significant inflows of costly corporate deposits in Georgian Lari (GEL). As a result in Q4 2011 cutomer funds grew by 17.7% compared to Q3 2011, which led to a reduction in the net interest margin to 6.8% in Q4 2011. In order to normalise our NIM, we signficantly decreased our GEL and US$ deposit rates, which led to the decline of customer fund balances by 4.0% year-to-date, subsequently achieving our aim to decrease our abnormally high excess liquidity. The proportion of costly GEL client deposits as percentage of total client deposits decreased from 40.8% in Q4 2011 to 36.0% in Q1 2012. These actions resulted in an increase in the NIM by 50 basis ponts to 7.3% in Q1 2012 from 6.8% in Q4 2011. The decline in cost of funds by 20 basis point to 8.3% and increased loan yield by 30 basis points to 18.0% also contributed to sharp increase in NIM in Q1 2012. We continue to expect deposit growth for the full year to match our expected growth of approximately 20% in customer lending during the year.  Pleasingly, we also grew our net interest income by 1.8% over the same period whilst repositioning the Bank's balance sheet.

 

Profitability has continued to remain strong with a post-tax Return on Average Equity of 18.9%, notwithstanding the significant increase in equity during the quarter, and Earnings per Share growing by 26.8% to GEL 1.23.  At the end of March 2012, the Bank's NBG Tier 1 capital ratio was 15.2% (BIS 21.5%), compared to 10.5% (BIS 19.9%) on 31 December 2011, largely reflecting the inclusion of 2011 profit in Tier I capital as of 1 January 2012, per National Bank of Georgia regulations, and the conversion of the EBRD/IFC convertible loans in February 2012. Our Balance Sheet leverage reduced to 3.7 times, compared to 4.5 times twelve months ago.

 

The macroeconomic performance of Georgia continues to exceed expectations in all key areas of the economy, with expectations continuing to increase with regard to the economy's key growth drivers.  Georgia has continued to experience strong levels of inward investment as well as high levels of tourist revenues and net remittances, and we expect this trend to continue over the next few years.  As a result, I am confident that Bank of Georgia will continue to go from strength to strength and remain well positioned to further improve its performance throughout 2012 and over the next few years," commented Irakli Gilauri, Chief Executive Officer of Bank of Georgia Holdings plc. and JSC Bank of Georgia.

 

 

 

 

 

 

 

 

 

 

 

            1.6600  GEL/US$ 31 March 2012

            1.6703  GEL/US$ 31 December 2011

            1.7059  GEL/US$ 31 March 2011

2.6578  GEL/GBP 31 March 2012

2.5776  GEL/GBP 31 December 2011

2.7402  GEL/GBP 31 March 2011

 

 

 

 

                                                                                                                        `                       Financial Summary

 

 

 

Millions, unless otherwise noted

 Q1 2012

 Q1 2011


 Q4 2011


Bank of Georgia (Consolidated, Unaudited, IFRS-based) 

 US$

 GBP

 GEL

 US$

 GBP

 GEL

Change 1   

Y-O-Y

 US$

 GBP

 GEL

Change 1

Q-O-Q













Revenue2

70.4

44.0

116.9

53.1

       33.1

90.7

28.9%

71.3

  46.2

119.1

-1.8%

Operating costs3

34.5

21.6

57.3

29.5

18.4

50.3

13.9%

34.4

22.3

57.5

-0.3%

Operating income before cost of credit risk

35.9

22.4

59.5

23.6

 14.7

40.3

47.6%

36.9

23.9

61.6

-3.4%

Cost of credit risk4

4.4

2.8

7.4

3.2

         2.0

5.4

37.0%

5.3

    3.4

8.8

-15.9%

Net operating income

31.4

19.6

52.1

20.5

12.7

34.9

49.3%

31.6

20.5

52.8

-1.3%

Net non-operating expenses, including goodwill impairment

2.7

1.7

4.4

-

-

0.1

NMF10

5.8

3.8

9.7

-54.6%

Profit for the period from continuing operations

23.9

14.9

39.7

17.1

10.6

29.1

36.4%

22.3

14.5

37.3

6.4%

EPS (Basic)

0.74

0.46

1.23

0.57

0.35

0.97

26.8%

0.71

0.46

1.18

4.2%

























Consolidated Balance Sheet Summary











Total assets

2,704.9

1,689.4

4,490.2

2,373.7

1,477.7

4,049.2

10.9%

2,793.1

1,809.9

4,665.3

-3.8%

Net loans5

1,634.8

1,021.1

2,713.8

1,314.2

818.2

2,241.9

21.0%

1,566.4

1,015.0

2,616.4

3.7%

Customer funds6

1,581.5

987.7

2,625.2

1,215.4

756.7

2,073.4

26.6%

1,637.6

1,061.2

2,735.2

-4.0%

Tier I Capital Adequacy Ratio (BIS)7



21.5%



18.0%




19.9%


Total Capital Adequacy Ratio (BIS)7



28.0%



28.8%




28.5%


NBG Tier I Capital Adequacy Ratio8



15.2%



12.7%




10.5%


NBG Total Capital Adequacy Ratio8



18.2%



15.6%




16.2%


Leverage (times)9



3.7



4.5

-17.8%



4.7

-21.3%

 

 

1 Compared to the respective period in 2011; growth calculations based on GEL values

2 Revenue includes net interest income, net fee and commission income, net insurance revenue and other operating non-Interest Income

3 Operating Expenses equal other operating non-interest expenses

4 Cost of credit risk includes impairment charge (reversal of impairment) on: loans to customers, finance lease receivables and other assets

5 Net loans equal to net loans to customers and finance lease receivables

6 Customer funds equal amounts due to customers

7 BIS Tier I Capital Adequacy Ratio equals consolidated Tier I capital as of the period end divided by Total consolidated risk weighted assets as of the same date. BIS total capital equals total consolidated capital as of the period divided by total consolidated risk weighted assets. Both ratios calculated in accordance with the requirements of Basel Accord I

8 NBG Tier I Capital and Total Capital Adequacy ratios calculated in accordance with the requirements of the National Bank of Georgia (NBG)

9  Leverage (Times) equals Total Liabilities divided by Total Equity

10 No Meaningful Figure

 

  

 

 

 

 



Discussion of Results

 

Revenue

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Loans to customers

118.4

105.0

12.8%

115.8

2.2%

Investment securities: available-for-sale*

9.8

8.8

11.4%

9.8

0.0%

Amounts due from credit institutions

4.2

2.9

44.8%

4.7

-10.6%

Finance lease and receivables

2.0

0.8

NMF

3.1

-35.5%

Interest income

134.4

117.5

14.4%

133.4

0.7%

Amounts due to customers

53.8

35.8

50.3%

49.7

8.2%

Amounts due to credit institutions

18.7

25.3

-26.1%

23.5

-20.4%

Interest expense

72.5

61.1

18.7%

73.2

-1.0%

Net (losses) gains from derivative financial instruments

         (0.7)

0.5

NMF

          (0.1)

NMF

Net interest income

61.2

56.9

7.6%

60.1

1.8%

Fee and commission income

24.1

19.9

21.1%

26.2

-8.0%

Fee and commission expense

4.4

4.4

-

4.1

7.3%

Net fee and commission income

19.7

15.5

27.1%

22.1

-10.9%

Net insurance premiums earned

12.5

11.6

7.8%

11.5

8.7%

Net insurance claims incurred

8.7

6.9

26.1%

7.9

10.1%

Net insurance revenue

3.8

4.7

-19.1%

3.6

5.6%

Other operating non-interest income

32.2

13.6

136.8%

33.3

-3.3%

Revenue

116.9

90.7

28.9%

119.1

-1.8%

 

*primarily consist of Georgian government treasury bills and bonds and National Bank of Georgia's Certificats of deposits

 

The Bank's Q1 2012 revenue increased to GEL 116.9 million, or 28.9% growth year-on-year, an increase driven by a 136.3% y-o-y increase in other operating non-interest income to GEL 32.2 million, reflecting increased gains from foreign currencies, and continued strong customer lending growth which led to a GEL 4.3 million increase in net interest income to GEL 61.2 million. Compared to Q4 2011, total revenue decreased by GEL 2.3 million reflecting the decline in gains on the Belarusian currency (Belarusian Ruble or BYR) hedge from the unusually high gains of GEL 4.8 million in Q4 2011 to the loss on the Belarusian currency hedge of GEL 0.4 million in Q1 2012.

 

Net Interest Margin

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Net interest income

61.2

56.9

7.5%

60.1

1.8%

Net Interest Margin

7.3%

7.0%

3.9%

6.8%

7.6%

Average interest earning assets*

3,365.4

3,251.3

3.5%

3,563.3

-5.6%

Average interest bearing liabilities*

3,550.6

3,204.8

10.8%

3,458.8

2.7%

  

 

 

*monthly averages are used for calculation of average interest earning assets and average interest bearing liabilities

 

In Q1 2012, the Bank's interest income growth of 14.4% y-o-y to GEL 134.4 million was primarily attributable to the continued growth in the Bank's balance sheet. The Bank's interest income growth more than offset the increase in interest expense which was up by GEL 11.4 million, or 18.7%, to GEL 72.5 million. This interest expense growth largely reflects the strong deposit inflow during the last twelve months as customer funds (client deposits and promissory notes issued) totaled GEL 2,625 million, up 26.6% y-o-y. The currency-blended loan yields of the Bank were 18.0% and 17.4% in the first quarters of 2012 and 2011 respectively, while the currency-blended customer deposit cost totalled 8.0% and 7.0% during the same respective periods. In the first quarter of 2012, the increase in deposit costs  year-on-year was attributed to the growth of the share of the more costly GEL denominated client deposits in total client deposits for the period from 32.5% at the end of Q1 2011 to 36.0% at the end of Q1 2012.

 

Compared to the fourth quarter of 2011, net interest income increased by GEL 1.1 million, or 1.8%. This reflects the significant efforts the Bank has made during the first few months of the year to improve the quality and cost of our deposit funding.  In the last quarter of 2011 we experienced very significant inflows of costly corporate GEL deposits; in the first quarter of 2012 we addressed this issue by substantially reducing the interest rate on client deposits across the board.  These actions started to contribute to the decline of our cost of deposits, reflected in the decrease of the cost of deposits by 30 basis points from 8.3% in Q4 2011 to 8.0% in Q1 2012. 

 

Overall, the Bank's net interest income increased by 7.5% y-o-y to GEL 61.2 million in Q1 2012. Correspondingly, the Q1 2012 net interest margin was 7.3% compared to 7.0% in Q1 2011 and 6.8% in Q4 2011. The change in margin over the last twelve months was primarily attributable to the increase in the loan yield from 17.4% to 18.0%. The increase in margin in Q1 2012 compared to the Q4 2011 was largely a result of decreased excess liquidity, increase in the loan yield quarter-on-quarter and lower deposit funding costs.

Net fee and commission income, net insurance revenue and other operating non-interest income

 

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Fee and commission income

24.1

19.9

21.1%

26.2

-8.0%

Fee and commission expense

4.4

4.4

0.0%

4.1

7.3%

Net fee and commission income

19.7

15.5

27.1%

22.1

-10.9%

Net insurance premiums earned

12.5

11.6

7.8%

11.5

8.7%

Net insurance claims incurred

8.7

6.9

26.1%

7.9

10.1%

Net insurance revenue

3.8

4.7

-19.1%

3.6

5.6%

 

Net fee and commission income grew GEL 4.2 million, or 27.1%, to GEL 19.7 million, reflecting the overall improvement of the economic environment in Georgia and increased foreign trade turnover of Georgian businesses. Good levels of growth were achieved in the Bank's settlements operations, guarantees and letters of credit, and cash operations businesses.

 

Net insurance revenues declined by GEL 0.9 million as a result of a higher level of claims compared to the first quarter 2011. Net insurance premiums earned increased by 7.8% y-o-y. Compared to Q4 2011, net insurance revenue increased by 8.7%.

 

Other operating non-interest income

 

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Net gains from trading securities and                                         investment securities available-for-sale

0.8

0.1

NMF

0.9

-11.1%

Net gains from revaluation of investment  property

-

-

NMF

2.0

-100.0%

Net gains from foreign currencies

14.8

7.4

NMF

16.1

-8.1%

Other operating income, of which:

17.0

6.1

NMF

9.5

78.9%

- Income from healthcare services

12.7

2.1

NMF

4.7

NMF

- Other

4.3

4.0

NMF

4.8

-10.4%

Other operating non-interest income  adjusted  for foreign currency (losses) gains from the BYR hedge

32.6

13.6

139.7%

28.5

14.4%

Foreign currencies (losses) gains from BYR hedge

(0.4)

-

NMF

4.8

NMF

Other operating non-interest income

32.2

13.6

136.8%

33.3

-3.3%

 

Other operating non-interest income adjusted for foreign currency gains, increased by GEL 19.0 million, or 139.7%, to GEL 32.6 million, largely reflecting strong gains in earnings from foreign currencies and the rise in other operating income, reflecting the increased healthcare revenue following the merger of Aldagi BCI's healthcare subsidiary with Block Georgia (a leading healthcare provider in Georgia) group of entities. Compared to the fourth quarter of 2011, other operating non-interest revenue reduced by GEL 1.1 million, or 3.3%, reflecting the impact in Q4 2011 of a GEL 4.8 million gain on a Belarusian currency hedge.

 

 

 

 

 

 

Net operating income, cost of credit risk, profit for the period

 

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Salaries and other employee benefits

31.2

27.2

14.7%

30.7

1.6%

General and administrative expenses

15.8

15.6

1.3%

16.2

-2.5%

Depreciation and amortization

6.8

6.1

11.5%

7.7

-11.7%

Other operating expenses

3.5

1.4

150.0%

2.9

20.7%

Other operating non-interest expenses

57.3

50.3

13.9%

57.5

-0.3%

Operating income before cost of credit risk 

59.6

40.4

47.5%

61.6

-3.2%

Cost of credit risk

7.4

5.4

37.0%

8.8

-15.9%

Net operating income

52.2

35.0

49.1%

52.8

-1.1%

Impairment of goodwill, property and equipment 

0.3

-  

NMF

10.4

-97.1%

Net other non-operating expenses

4.2

0.1

NMF

(0.7)

NMF

Profit before income tax expense from  continuing operations 

47.7

34.9

36.7%

43.1

10.7%

Income tax expense 

8.0

5.8

NMF

5.8

37.9%

Profit for the period from continuing operations

39.7

29.1

36.4%

37.3

6.4%

Net loss from discontinued operations

0.1

(12.2)

NMF

(2.9)

NMF

Profit for the period

39.8

16.9

135.5%

34.4

15.7%

 

In the first quarter of 2012, the Bank's other operating non-interest expenses increased by GEL 7.0 million, or 13.9%, to GEL 57.3 million. This compares to a 28.9% growth in revenues over the same period and reflects the Bank's focus on delivering positive operating leverage on an ongoing basis. The increase in expenses primarily reflected a 14.7% increase in salaries and other employee benefits as the Bank's headcount increased to reflect the growth of Bank of Georgia's and its subsidiaries' businesses over the last twelve months. General and administrative expenses for the quarter grew modestly by 1.3% to GEL 15.8 million, reflecting ongoing cost efficiency measures undertaken by the Bank. As a result, the Cost to Income ratio of the Bank improved to 49.1% in Q1 2012 from 55.5% in Q1 2011.

 

The Bank's operating income before the cost of credit risk increased by GEL 19.2 million, or 47.5%, to GEL 59.6 million in the first quarter of 2012.

 

The cost of credit risk increased by GEL 2.0 million, or 37.0%, to GEL 7.4 million in the first quarter of 2012. This represents an annualised cost of risk of just 1.0%, reflecting the high quality of the Bank's loan portfolio and the robust health of the Georgian economy. Compared to Q4 2011, the cost of credit risk reduced by GEL 1.4 million.  The allowance for loan impairment was GEL 119.7 million or 4.2% of total gross loans as of 31 March 2012, compared to 5.1% as of 31 March 2011.

 

The Bank's non-performing loans (NPLs) totaled GEL 94.3 million as of 31 March 2012 compared to GEL 90.3 million as of 31 March 2011, up by 4.5% y-o-y, and down from GEL 97.2 million as of 31 December 2011, a reduction of GEL 2.9 million in the first quarter of 2012. The Bank's NPLs to total gross loans ratio improved to 3.3% in Q1 2012 from 3.8% as of 31 March 2011 and 3.6% as of 31 December 2011. NPL Coverage ratio stood at 126.8% compared to 132.2% in Q1 2011 and 118.5% in Q4 2011.

 

In Q1 2012, the Bank's net operating income totaled GEL 52.2 million, up GEL 17.2 million, or 49.1% year-on-year. The Bank's net non-operating expense for the period totaled GEL 4.5 million, largely reflecting expenses incurred for the purposes of the tender offer and premium listing that was successfully completed in February 2012. Profit before income tax from continuing operations in the first quarter of 2012 therefore totaled GEL 47.7 million, an increase of GEL 12.8 million, or 36.4%. After income tax expense of GEL 8.0 million, the Bank's Q1 2012 profit for the period stood at GEL 39.8 million, up by GEL 22.9 million, or 135.5% compared to the first quarter of 2011 which contained a loss of GEL 12.2 million from discontinued operations.

 

 

 

 

 

Balance Sheet highlights

 

As of 31 March 2012, the Bank had total assets of GEL 4,490.2 million, a 10.9% increase compared to 31 March 2011 and a 3.8% decrease compared to 31 December 2011. Over the last twelve months, the net loan book grew by GEL 471.8 million, or 21.0%, to GEL 2,713.8 million. This customer lending growth was more than sufficiently funded by a GEL 551.8 milllion growth in customer funds. The Bank's investment securities available-for-sale portfolio, which consists of NBG Certificates of Deposit and Georgian Government treasury bills and bonds, was broadly stable at GEL 357.5 million. Loans denominated in foreign currencies (primarily in US$) accounted for 66.7% of the Bank's net loan book as of 31 March 2012, compared to 75.6% as of 31 March 2011, and 70.4% as of 31 December 2011.

 

Over the last twelve months, customer deposit inflows have been strong, particularly in December 2011, and have enabled the Bank to further enhance its general funding and liquidity position. Customer funds stood at GEL 2,625.2 million, up 26.6% year-on-year.  In addition to client deposits, customer funds include promissory notes, which totalled GEL 183.2 million as of 31 March 2012. This healthy deposit growth allowed the Bank decrease its reliance on more expensive borrowed funds as amounts due to credit institutions declined from GEL 1,102.1 million at the end of March 2011 to GEL 753.8 million at the end of March 2012. The decline is mostly due to the repayment of GEL 92.6 million outstanding Eurobonds upon maturity in February 2012 and the conversion of  the EBRD and IFC loan note into equity during the quarter. As a result of the foregoing, customer funds represented 74.1% of total liabilities as of 31 March 2012, an improvement from 62.6% as of 31 March 2011. On 31 March 2012, the Bank's Net Loan to Customer Funds ratio improved to 103.4% from 108.1% compared to twelve months ago, reflecting stronger deposit growth than customer lending growth over the period. Client deposits denominated in foreign currencies accounted for 64.0% of the Bank's client deposits as of 31 March 2012, compared to 67.5% as of 31 March 2011. As of 31 March 2012, the Bank had total liabilities of GEL 3,541.6 million, up 6.9% over the last twelve months.

 

Compared to 31 December 2011, total assets decreased by 3.8%, total liabilities decreased by 8.1% and shareholders' equity increased by 15.1%.  This reflects the Bank's attempt to reposition its balance sheet and cost of deposit funding following exceptionally high GEL corporate deposit inflows during 2011 and in the fourth quarter of 2011 in particular.  As a result, customer funds were reduced by GEL 110.0 million during Q1 2012 compared to Q4 2011. Shareholders' equity increased by GEL 116.3 million over the same period. The reduction in customer deposits and increase in shareholders' equity also resulted in the reduction of GEL 247.3 in the Bank's cash and cash equivalents held. Customer lending increased by GEL 97.4 million, or 3.7%, in the quarter.  This balance sheet repositioning was largely responsible for the 30 basis point reduction in the cost of deposit funding and consequent increase of 50 basis points in the net interest margin during the quarter.

 

Liquidity and Funding position

 

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Amounts due to credit institutions, of which:

753.8

1,102.1

-31.6%

      921.2

-18.2%

- Borrowed funds

666.9

956.1

-30.2%

863.0

-22.7%

- Inter-bank loans and deposits

86.9

146.0

-40.5%

58.2

49.3%

Customer funds

2,625.2

2,073.4

26.6%

2,735.2

-4.0%

Net Loans / Customer Funds

103.4%

108.1%


95.7%


Liquid assets

1,027.6

1,193.2

-13.9%

1,326.3

-22.5%

Liquid assets as percent of total assets

22.9%

29.5%


28.4%


Liquid assets as percent of total liabilities

29.0%

36.0%


34.8%


NBG liquidity ratio

36.0%

44.5%


37.8%


 

Shareholders' equity grew by GEL 179.7 million, or 25.3%, over the last twelve months, to GEL 888.8 million.  This substantial increase reflects both the inclusion of retained profits, the conversion of loan notes by EBRD and IFC into shareholders' equity in February 2012 and reclassification of GEL 24.0 million of ESOP liabilities into equity of the Bank. 

 

 

 

The Bank continues to maintain a strong liquidity position, considerably in excess of the conservative regulatory requirements. The liquidity ratio, as per NBG requirements, stood at 36.0% against the required minimum of 30%, while liquid assets accounted to 22.9% of total assets and 29.0% of total liabilities as of the end of March 2012. The Bank's Book Value per share on 31 March 2012 stood at GEL 26.78 (US$16.13/GBP10.08) compared to GEL 23.69 (US$13.89/GBP8.65) as of 31 March 2011.

 

Strategic Businesses Segment Result Discussion

 

Segment result discussion is presented for the Bank of Georgia's retail banking (RB), corporate banking (CB)  and wealth management (WM) operations in Georgia, excluding inter-company eliminations.

 

Retail banking

 

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

    Change Y-O-Y

 Q4 2011

 Change Q-O-Q

Net interest income

39.0

31.4

24.2%

38.0

2.6%

Net fees and commission income

11.7

9.7

20.6%

13.9

-15.8%

Net gains from foreign currencies

3.0

2.0

50.0%

2.7

11.1%

Other operating non-interest income

1.0

0.6

66.7%

1.8

-44.4%

Operating income from other segments

0.3

0.3

0.0%

0.4

-25.0%

Revenue

55.0

44.0

25.0%

56.8

-3.2%

Other operating non-interest expenses

26.4

24.3

8.6%

28.5

-7.4%

Operating income before cost of credit risk

28.6

19.7

45.2%

28.3

1.1%

Cost of credit risk

4.6

(4.4)

NMF

(0.4)

NMF

Profit before income tax expense

22.1

23.0

-3.9%

29.3

-24.6%

Net loans, standalone

1,225.0

969.6

26.3%

1,221.4

0.3%

Client deposits, standalone

713.3

609.5

17.0%

     707.1

0.9%

Loan yield

20.5%

21.2%


20.4%


Cost of deposits

6.5%

7.2%


6.8%


 

Retail banking provides consumer loans, mortgage loans, overdrafts, credit card facilities and other credit facilities as well as funds transfer and settlement services and handling customer deposits for both individuals and legal entities, encompassing the mass affluent segment, retail mass markets, SME and micro businesses.

 

In Q1 2012 retail banking revenue grew 25.0% y-o-y to GEL 55.0 million, the growth driven by a 24.2% increase in net interest income to GEL 39.0 million reflecting the strong growth of retail net loan book by GEL 255.4 million, or 26.3% y-o-y, to GEL 1,225.0 million as of 31 March 2012. Net fees and commission income increased 20.6% y-o-y to GEL 11.7 million, while net gains from foreign currencies amounted to GEL 3.0 million, up 50.0% y-o-y.

 

Deposits from retail clients increased by GEL 103.8 million, or 17.0% y-o-y, to GEL 713.3 million as of 31 March 2012. On a quarter-on-quarter basis, deposits from retail clients grew by 0.9%, despite interest rate cuts that led to the decrease of cost of retail deposits from 6.8% in Q4 2011 to 6.5% in Q1 2012.

 

Highlights

 

§ Increased its branch network, adding six Express branches bringing the total Express branches and Metro branches to 36 (of which 24 Metro branches) as of the date of this report.

§ Issued 102,091 debit cards in Q1 2012 bringing the total debit cards outstanding to 568,209 up 11.5% y-o-y and (up 6.1% year-to-date).

§ Issued 12,471 credit cards of which 10,226 were American Express cards in 2011. A total of 115,358 American Express cards have been issued since the launch in November 2009. The total number of credit cards outstanding amounted to 135,750 (of which 105,973 American Express Cards), up 28.9% since March 2011 and up 6.2% since December 2011.

§ Outstanding number of Retail Banking clients reached 926,813 up 9.6% y-o-y and 4.3% year-to-date.

§ Acquired 362 new clients in Solo business line, the Bank's mass affluent sub-brand, in 2011. As of 31 March 2012, the number of Solo clients reached 4,041.

§ Increased Point of Sales (POS) footprint: as of 31 March 2012, 186 desks at 390 contracted merchants, up from 106 desks and 133 merchant as of 31 March 2011. GEL 10.8 million POS loans were issued in Q1 2012, compared to GEL 3.7 million POS loans issued in Q1 2011. POS loans outstanding amounted to GEL 24.0 million, up from GEL 7.4 million at of 31 March 2011.

§ POS terminals outstanding reach 2,940, up 22.3% y-o-y. The volume of transactions through the Banks' POS terminals grew 48.6% y-o-y to GEL 65.7 million, while number of POS transactions increased from 0.55 million in Q1 2011 to 0.93 million in Q1 2012.

§ RB loan yield amounted to 20.5% in Q1 2012 (21.2% in Q1 2011 and 20.4% in Q4 2011) and RB deposit cost amounted to 6.5% in Q1 2012 (7.2% in Q1 2011 and 6.8% in Q4 2011).

§ Consumer loan originations of GEL 84.1 million (up 28.7% y-o-y) resulted in consumer loans outstanding in the amount of GEL 296.7 million as of 31 March 2012, up 75.6% y-o-y and up 2.9% year-to-date.

§ Micro and SME loan originations of GEL 106.8 million (up 14.2% y-o-y) resulted in micro and SME loans outstanding in the amount of GEL 323.6 million as of 31 March 2012, up 30.1% y-o-y and up 1.6% year-to-date.

§ Mortgage loans originations of GEL 15.3 million (down 44.8% y-o-y) resulted in mortgage loans outstanding in the amount of GEL 363.9 million as of 31 December 2011, up 4.9% y-o-y and down 3.0% year-to-date.

 

Corporate banking

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

   Change Q-O-Q

Net interest income

17.8

20.7

-14.0%

16.7

6.6%

Net fees and commission income

7.1

4.6

54.3%

6.1

16.4%

Net gains from foreign currencies

8.4

4.8

75.0%

8.3

1.2%

Other operating non-interest income

1.2

0.6

100.0%

1.1

9.1%

Operating income from other segments

2.8

2.1

33.3%

(0.6)

NMF

Revenue

37.3

32.8

13.7%

31.6

18.0%

Other operating non-interest expenses

11.2

11.9

-5.9%

14.5

-22.8%

Operating income before cost of credit risk

26.1

20.9

24.9%

17.1

52.6%

Cost of credit risk

1.3

9.2

-85.9%

5.9

-78.0%

Profit before income tax expense

21.2

10.0

112.0%

12.9

64.3%

Net loans, standalone

     1,454.9

1,209.5

20.3%

1,378.1

5.6%

Client deposits, standalone

     1,247.0

1,066.2

17.0%

1,384.0

-9.9%

Loan yield

14.5%

15.0%


14.2%


Cost of deposits

8.3%

6.1%


7.7%


 

Corporate banking business in Georgia comprises of loans and other credit facilities to the country's large corporate clients as well as other legal entities, excluding SME and micro businesses. The services include fund transfers and settlements services, currency conversion operations, trade finance service, currency conversion operations, trade finance services and documentary operations as well as handling savings and term deposits for corporate and institutional customers. Corporate banking business also includes finance lease facility provided by the Bank's leasing operations (Georgian Leasing Company).

 

The 13.7% y-o-y growth of corporate banking revenue in Q1 2012 was driven by non-interest income growth during the year. Net fees and commission income grew 54.3% y-o-y to GEL 7.1 million, while net gains from foreign currencies rose to GEL 8.4 million, or 75.0% y-o-y, reflecting the increase in volumes of foreign currency conversions by the Bank's corporate clients. The 14.0% y-o-y decline of net interest income of corporate banking was predominantly attributable to the additional carrying cost of the 2011 deposit inflows, mostly GEL deposits, on the Bank's corporate client accounts, which rose by 17.0% y-o-y, or by GEL 180.8 million, to GEL 1,247.0 million as of 31 March 2012. On a quarterly basis,the reduction of costly GEL corporate deposits starting from March 2012, prompted by signficiantly reduced interest rates on GEL deposits in Q1 2012, more than offset the increased deposit costs that the Bank carried on high levels of GEL deposits in the first two months of the quarter. As a result, the net interest income of corporate banking grew 6.6% compared to the previous quarter. However, reduced interest rate on corporate deposits has not yet been reflected in cost of deposits as the significant inflow of costly corporate GEL deposits took place in  December 2011 and the outflow of such deposits started in March 2012. Corporate Banking standalone net loans increased by GEL 245.4 million, or 20.3% y-o-y, to GEL 1,454.9 million during the period. Impairment charge on interest earning corporate banking assets declined to GEL 1.3 million in Q1 2012 from GEL 9.2 million in Q1 2011 and GEL 5.9 million in Q4 2011. The corporate banking profit for the period more than doubled to GEL 21.2 million.

 

Highlights

 

§ CB loan yield amounted to 14.5% in Q1 2012 (15.0% in Q1 2011 and 14.2% in Q4 2011 ) and CB deposit cost amounted to 8.3% in Q1 2012 (6.1% in Q1 2011 and 7.7% in Q4 2011).  The year-on-year increase in CB deposit cost was predominantly attributed to the significant growth of the share the costly GEL denominated  CB client deposits in total CB client deposits from 46.9% as of March 2011 to 61.6% as of December 2011. The sharp reduction of interest rates on GEL deposits in Q1 2012 prompted the outflow of costly GEL corporate deposit starting in March 2012, bringing the share of GEL denominated CB client deposits in total CB deposits to 55.3% as of 31 March 2012. Deposit rate cuts on CB deposits have not yet been reflected in Q1 2012 cost of deposits of CB.

§ Increased the number of corporate clients using the Bank's payroll services from 2,387 as of 31 December 2011 to 2,603 as of 31 March 2012. As of 31 March 2012, the number of individual clients serviced through the corporate payroll programs administered by the Bank amounted to 185,811.

§ Number of corporate banking accounts opened increased from 515 in Q1 2011 to 1,131 corporate banking accounts opened in Q1 2012.

 

Wealth Management

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

 Net interest income

2.9

1.7

70.6%

1.9

52.6%

 Net fees and commission income

0.1

0.1

0.0%

0.2

-50.0%

 Net gains from foreign currencies

0.2

0.1

100.0%

 0.5

-60.0%

 Other operating non-interest income

-

-

NMF

0.1

-100.0%

 Revenue

3.2

1.9

68.4%

2.7

18.5%

 Other operating non-interest expenses

0.9

1.0

-10.0%

1.1

-18.2%

 Operating income before cost of credit risk

2.3

0.9

155.6%

1.6

43.8%

 Cost of credit risk

-

(0.3)

-100.0%

1.0

-100.0%

 Profit before income tax expense

2.3

1.0

130.0%

0.6

283.3%

 Net loans, standalone

43.6

36.1

20.8%

35.8

21.8%

 Client deposits, standalone

490.1

290.8

68.5%

454.2

7.9%

 Loan yield

11.4%

12.7%


12.6%


 Cost of deposits*

9.2%

9.6%


9.4%


 

*includes the overhead costs associated with wealth management international business

 

The Bank's wealth management business provides private banking services to resident and non-resident clients by ensuring an individual approach and exclusivity in providing banking services such as holding the clients' savings and term deposits, fund transfers, currency exchange and settlement operations. In addition, wealth management involves providing wealth and asset management services to its clients through a wide range investment opportunities and specifically designed investment products.

 

In Q4 2012, wealth management revenue grew by 68.4% y-o-y to GEL 3.2 million, a result of the 70.6% y-o-y growth of the net interest income to GEL 2.9 million in Q1 2012. Profit of the wealth management business grew from GEL 1.0 million in Q1 2011 to GEL 2.3 million in Q1 2012, reflecting the strong revenue growth during the quarter and the decline in operating costs by 10.0% y-o-y to GEL 0.9 million. Client deposits of the wealth management business grew by GEL 199.3 million, or 68.5% y-o-y, to GEL 490.1 million, despite the interest rate cuts that led to the decrease of cost of deposits to 9.2% in Q1 2012 from 9.6% in Q1 2011 and 9.4% in Q4 2011.

 

Corporate Center

 

Corporate center provides back office services to all segments of the Bank and investments in subsidiaries.

 

Highlights

 

§ Amounts due to credit institutions in Q1 2012 declined by GEL 348.3 million, or 31.6% y-o-y to GEL 753.8 million, with long-term IFI (International Financial Institutions, including EBRD, IFC, DEG among others) funding accounting for 72.2% of total amounts due as of 31 March 2012. The Bank completed the full repayment, upon maturity, of Eurobonds totalling GEL 92.6 million (US$ 55.5 million) on 8 February 2012 and the conversion into shareholders' equity of the EBRD and IFC convertible loans with nominal values totalling GEL 80.8 million (US$ 49.9 million) in February 2012.

§ Murtaz Kikoria, was appointed Deputy CEO, Finance in March 2012, replacing Giorgi Chiladze, who stepped down from his position and resigned from the Management Board of Bank of Georgia.

 

Insurance and Healthcare (Aldagi BCI)

 

GEL thousands

 Q1 2012

 Q1 2011

 Change Y-O-Y


 Insurance

 Healthcare

 Insurance and Healthcare

 Insurance

 Healthcare

 Insurance and Healthcare

 Insurance

 Healthcare

 Insurance and Healthcare

Gross premiums written

             19,892

 -

                   19,892

                  18,734

 -

                  18,734

60.4%

-

6.2%

Net insurance revenue

3,788

 -

3,788

4,659

 -

4,659

5.9%

NMF

-18.7%

Net interest income

(62)

(707)

(769)

224

70

 295

NMF

NMF

NMF

Net (losses) gains from foreign currencies

(113)

(84)

(197)

(359)

42

(317)

-53.7%

NMF

-37.9%

Other operating non-interest income

(97)

12,692

12,595

(93)

2,078

1,984

3.6%

NMF

NMF

Revenue

3,516

4,431

-18.9%

132.9%

Other operating non-interest expenses

       2,662

            10,800

           13,462

             3,022

              1,941

             4,963

-9.7%

121.4%

171.2%

Operating income before cost of credit risk

854

1,101

1,955

1,409

249

1,658

-39.4%

NMF

17.9%

Profit before income tax expense

           782

1,101

1,883

1,187

249

       1,436

-34.1%

NMF

31.1%

 

Aldagi BCI, the Bank's wholly-owned subsidiary provides life and non-life insurance and healthcare products and services in Georgia. A leader in the Georgian life and non-life insurance markets, based on a market share of 19.5% of the life and 16.8% of the non-life insurance markets (based on gross premiums written), Aldagi BCI cross-sells its insurance products with the Bank's retail and corporate banking products. Aldagi BCI's healthcare business consists of My Family Clinic, Georgia's leading healthcare provider, operating a chain of healthcare centers in Georgia, in line with the Bank's strategy of vertically integrating its insurance and healthcare businesses.

 

In Q1 2012, insurance and healthcare revenue increased to GEL 15.4 million from GEL 6.6 million in Q1 2011, the growth attributed to the non-interest income generated by the healthcare business, which reached GEL 11.9 million in Q1 2012 up from GEL 2.2 million healthcare revenue generated in Q1 2011, reflecting the expansion of Aldagi BCI's healthcare operations by both organic growth and through merger with Block Georgia in December 2011, which is in line with the Bank's strategy of vertical integrating its health insurance and healthcare businesses. The net insurance revenue  declined by 18.7% y-o-y due to higher claims in Q1 2011, as discussed above.

 

Highlights

 

§ On 3 May 2012, BGH announced that Aldagi BCI acquired 85% of Imedi L, the third largest insurance and healthcare company in Georgia. As of 30 September 2011, Aldagi BCI had a market share of 17.1 % (Gross Written Premiums: GEL 45.0 million in the first nine months of 2011) of the Georgian insurance market and Imedi L had a market share of 16.3% (Gross Written Premiums: GEL 42.8 million in the first nine months of 2011). The combined business, with a market share of 33.4 % will be the clear leader in the Georgian insurance market, with a substantial increase in its retail client base of approximately 220,000 clients to a combined total of 420,000 retail clients. By the end of 2012, the combined Aldagi BCI and Imedi L healthcare businesses are expected to own hospitals with a total of nearly 1,200 beds, an increase of approximately 400 beds during 2012.

 

Affordable Housing

 

The Affordable Housing business consists of the Bank's wholly-owned subsidiary SBRE, which holds investment properties repossessed by the Bank from defaulted borrowers. With the aim to improve liquidity of these repossessed real estate assets and stimulate the Bank's mortgage lending business capitalizing on the market opportunity in the affordable housing segment in Georgia, the Bank develops, sells and/or leases such real estate assets through SBRE. SBRE outsources the construction and architecture works and focuses on project managements and sales of apartments and mortgages through its well-established branch network and sales force, thus representing a synergistic business for the Bank's mortgage business.

 

Highlights

 

§ Drew down US$5 million of the US$20 million financing raised from FMO for the development of a new housing project of circa 525 apartments to be launched in Q2 2012     

 

Non-Core Businesses

 

The Bank's non-core businesses that accounted for 3.2% of total assets and 7.3% of total revenue in Q1 2012, comprise BNB, Belarus banking operation and Liberty Consumer, a Georgia focused investment company in which the Bank holds a 65% stake.  In order for the Bank to focus on its strategic businesses, the Bank has announced its intention to exit from its non-core operations.

 

To this end, in February 2011, the Bank sold 80% equity interest in BG Bank, its subsidiary in Ukraine. The Bank's 2011 consolidated results include results of operation of BG Bank for one month ended 31 January 2011.

 

BNB

 

GEL millions, unless otherwise noted

 Q1 2012

 Q1 2011

Change

Y-O-Y

 Q4 2011

Change

Q-O-Q

Net interest income

2.3

2.7

-14.8%

2.9

-22.2%

Net fees and commission income

0.6

0.5

21.8%

1.1

-44.1%

Other operating non-interest income

3.2

1.0

NMF

3.4

-4.2%

Revenue

6.2

4.2

47.8%

7.5

-17.4%

Other operating non-interest expenses

2.3

3.1

-26.9

2.7

-14.2%

Operating income before cost of credit risk

3.9

1.1

NMF

4.8

-19.2%

Cost of credit risk

1.1

0.1

NMF

0.4

NMF

Profit before income tax expense

2.0

0.8

NMF

9.3

NMF

 

Through BNB, the banking subsidiary, the Bank provides retail banking and corporate banking services in Belarus. BNB reported strong results in Q1 2012, despite weakened economic environment and hyperinflation in Belarus in 2011.  In the seasonally weak first quarter of the year, the revenue growth of 47.8% y-o-y  to GEL 6.2 million was mostly due to the increase in other operating non-interest income from GEL 1.0 million in Q1 2011 to GEL 3.2 million in Q1 2012,  predominantly reflecting the increased gains from foreign currencies. Profit for the period increased from GEL 0.8 million in Q1 2011 to GEL 2.0 million in Q1 2012, as the 26.9% y-o-y decline in other non-interest expenses, reflecting improved efficiency at BNB, more than offset the increase in cost of risk from GEL 0.1 million to GEL 1.1 million during the period.

 



CONSOLIDATED INCOME STATEMENT

 

 GEL thousands, unless otherwise noted  and except for per share values

Q1 2012

Q1 2011

Change %

Q4 2011

Change %




Y-O-Y


Q-O-Q


(Unaudited)

Loans to customers

118,425

 105,012

12.8%

115,816

2.3%

Investment securities: available-for-sale 

9,824

8,840

11.1%

9,782

0.4%

Amounts due from credit institutions

4,212

2,872

46.7%

4,718

-10.7%

Finance lease receivables

2,012

797

152.4%

3,099

-35.1%

Interest income

134,473

117,521

14.4%

133,415

0.8%

Amounts due to customers

(53,834)

(35,809)

50.3%

(49,719)

8.3%

Amounts due to credit institutions

(18,709)

(25,335)

-26.2%

(23,536)

-20.5%

Interest expense

(72,543)

(61,144)

18.6%

(73,255)

-1.0%

Net interest income before net (losses) gains from derivative financial instruments

61,930

56,377

9.8%

60,160

2.9%

Net (losses) gains from derivative financial instruments

 (768)

516

NMF

(92)

NMF

Net interest income

61,162

56,893

7.5%

60,068

1.8%

Fee and commission income

24,122

19,853

21.5%

26,188

-7.9%

Fee and commission expense

(4,406)

(4,361)

1.0%

(4,086)

7.8%

Net fee and commission income

19,716

15,492

27.3%

22,102

-10.8%

Net insurance premiums earned

12,487

11,573

7.9%

11,515

8.4%

Net insurance claims incurred

(8,699)

(6,914)

25.8%

(7,937)

9.6%

Net insurance revenue 

3,788

4,659

-18.7%

3,578

5.9%

Net gains from trading securities and investment securities

796

121

NMF

850

-6.4%

Net gains from revaluation of investment property

-

-

NMF

1,984

-100.0%

Net gains from foreign currencies, of which:

14,359

7,432

93.2%

20,891

-31.3%

- dealing

9,844

8,298

18.6%

11,992

-17.9%

- translation differences

4,515

(866)

NMF

8,899

-49.3%

Other operating income

17,034

6,067

180.8%

9,654

76.4%

Other operating non-interest income 

32,189

13,620

136.3%

33,379

-3.6%

Revenue

116,855

90,664

28.9%

119,127

-1.9%

Salaries and other employee benefits

(31,220)

(27,217)

14.7%

(30,662)

1.8%

Selling and administrative expenses

(15,764)

(15,557)

1.3%

(16,169)

-2.5%

Depreciation and amortization

(6,764)

(6,109)

10.7%

(7,735)

-12.6%

Other operating expenses

(3,580)

(1,443)

148.1%

(2,972)

20.5%

Other operating non-interest expenses

(57,328)

(50,326)

13.9%

(57,538)

-0.4%

Operating income before cost of credit risk 

59,527

40,338

47.6%

61,589

-3.3%

Impairment charge on loans to customers

6,859

3,942

74.0%

6,194

10.7%

Impairment charge on finance lease receivables

110

76

44.7%

195

-43.6%

Impairment charge on other assets and provisions

411

1,393

-70.5%

2,380

-82.7%

Cost of credit risk

7,380

5,411

36.4%

8,769

-15.8%

Net operating income

52,147

34,927

49.3%

52,820

-1.3%

Net non-operating expense

(4,400)

(59)

NMF

(9,707)

-54.7%

Profit before income tax expense from continuing operations

47,747

34,868

36.9%

43,113

10.7%

Income tax expense 

8,043

5,770

39.4%

5,789

38.9%

Profit for the period from continuing operations

39,704

29,098

36.4%

37,324

6.4%

Net gain (loss) from discontinued operations

54

(12,247)

NMF

(2,972)

NMF

Profit for the period

39,758

16,851

135.9%

34,352

15.7%

Attributable to:






- shareholders of the Bank

39,143

17,111

128.8%

31,972

22.4%

- non-controlling interests

 615

(260)

NMF

2,380

-74.2%







Earnings per share (basic)

1.23

0.97

26.8%

1.18

4.2%

Earnings per share (diluted)

1.19

0.93

28.0%

1.12

6.2%

 

 

 

 

 

 

CONSOLIDATED BALANCE SHEET

 

GEL thousands, unless otherwise noted  and except for per share values

Q1 2012

Q1 2011

Change

Q4 2011

Change




Y-O-Y


Q-O-Q


(Unaudited)

%

(Audited)

%

Assets






Cash and cash equivalents

381,386

432,350

-11.8%

      628,731

-39.3%

Amounts due from credit institutions

      287,915

      397,430

-27.6%

      289,530

-0.6%

Investment securities

      357,517

      360,775

-0.9%

      419,576

-14.8%

Loans to customers and finance lease receivables

   2,713,752

   2,241,929

21.0%

   2,616,361

3.7%

Investments in associates

          3,032

          5,723

-47.0%

          3,014

0.6%

Investment properties

      125,104

      101,324

23.5%

      101,686

23.0%

Property and equipment

      339,078

      282,986

19.8%

      348,110

-2.6%

Goodwill

        45,831

        69,248

-33.8%

        46,195

-0.8%

Other intangible assets

        20,658

        23,074

-10.5%

        21,222

-2.7%

Current income tax assets

          7,592

        15,626

-51.4%

          8,487

-10.5%

Deferred income tax assets

        33,819

        25,271

33.8%

        29,929

13.0%

Prepayments

        14,972

          7,448

101.0%

        14,852

0.8%

Other assets

      159,501

        86,065

85.3%

      137,568

15.9%

Total assets

   4,490,157

   4,049,249

10.9%

   4,665,261

-3.8%

Liabilities






Amounts due to customers, of which:

   2,625,228

   2,073,395

26.6%

   2,735,222

-4.0%

   Client deposits

   2,442,007

   1,976,887

23.5%

   2,554,084

-4.4%

   Promissory notes

      183,221

        96,508

89.9%

      181,138

1.1%

Amounts due to credit institutions

      753,821

   1,102,079

-31.6%

      921,172

-18.2%

Current income tax liabilities

             638

               95

571.6%

          1,174

-45.7%

Deferred income tax liabilities

        45,044

        24,520

83.7%

        36,242

24.3%

Provisions

             429

          5,866

-92.7%

             386

11.1%

Other liabilities

      116,460

      105,720

10.2%

      158,462

-26.5%

Total liabilities

   3,541,620

   3,311,675

6.9%

   3,852,658

-8.1%

Equity






Share capital

             954

        31,353

-97.0%

        32,878

-97.1%

Additional paid-in capital

      579,137

      478,850

20.9%

      473,732

22.2%

Treasury shares

 (72)

 (1,413)

-94.9%

 (3,146)

-97.7%

Other reserves

        18,355

        60,657

-69.7%

        14,478

26.8%

Retained earnings

      290,475

      139,709

107.9%

      254,588

14.1%

Total equity attributable to shareholders of the Bank

      888,849

      709,156

25.3%

      772,530

15.1%

Non-controlling interests

        59,688

        28,418

110.0%

        40,073

48.9%

Total equity

      948,537

      737,574

28.6%

      812,603

16.7%

Total liabilities and equity

   4,490,157

   4,049,249

10.9%

   4,665,261

-3.8%







Book value per share (basic)

26.78

23.69

13.0%

26.09

2.6%

Book value per share (diluted)

24.75

20.36

21.6%

23.15

6.9%

 

 

 

 

 

CONSOLIDATED INCOME STATEMENT in US$ and GBP

 

 

Thousands, unless otherwise noted and except for per share values

 Q1 2012

 Q1 2011

Change

 Q4 2011

Change

 Q1 2012

 Q1 2011

Change

 Q4 2011

Change


 US$

 US$

Y-O-Y

 US$

Q-O-Q

 GBP

 GBP

Y-O-Y

 GBP

Q-O-Q




%


%



%


%


(Unaudited)

 Loans to customers

71,340

61,558

15.9%

69,338

2.9%

44,558

38,323

16.3%

44,932

-0.8%

 Investment securities: available-for-sale

5,918

5,182

14.2%

5,856

1.1%

3,696

3,226

14.6%

3,795

-2.6%

 Amounts due from credit institutions

2,537

1,684

50.7%

2,825

-10.2%

1,585

1,048

51.2%

1,830

-13.4%

 Finance lease receivables

1,212

467

159.5%

1,855

-34.7%

757

291

160.1%

1,202

-37.0%

 Interest income 

81,007

68,891

17.6%

79,874

1.4%

50,596

42,888

18.0%

51,759

-2.2%

 Amounts due to customers

 (32,430)

 (20,991)

54.5%

 (29,767)

8.9%

 (20,255)

 (13,068)

55.0%

 (19,289)

5.0%

 Amounts due to credit institutions

 (11,270)

 (14,851)

-24.1%

 (14,091)

-20.0%

 (7,039)

 (9,246)

-23.9%

 (9,131)

-22.9%

 Interest expense 

 (43,700)

 (35,842)

21.9%

 (43,858)

-0.4%

 (27,294)

 (22,314)

22.3%

 (28,420)

-4.0%

 Net interest income before net (losses) gains from derivative financial instruments

37,307

33,049

12.9%

36,016

3.6%

23,302

20,574

13.3%

23,339

-0.2%

 Net (losses) gains from derivative financial instruments

             (463)

               302

NMF

               (55)

NMF

             (289)

             188

NMF

              (36)

NMF

 Net interest income

36,844

33,351

10.5%

35,961

2.5%

23,013

20,762

10.8%

23,303

-1.2%

 Fee and commission income

14,531

11,638

24.9%

15,679

-7.3%

9,076

7,245

25.3%

10,160

-10.7%

 Fee and commission expense

 (2,654)

 (2,556)

3.8%

 (2,446)

8.5%

 (1,658)

 (1,591)

4.2%

 (1,585)

4.6%

 Net fee and commission income 

11,877

9,082

30.8%

13,233

-10.2%

7,418

5,654

31.2%

8,575

-13.5%

 Net insurance premiums earned 

7,522

6,784

10.9%

6,894

9.1%

4,698

4,223

11.2%

4,467

5.2%

 Net insurance claims incurred 

 (5,240)

 (4,053)

29.3%

 (4,752)

10.3%

 (3,273)

 (2,523)

29.7%

 (3,079)

6.3%

 Net insurance revenue

2,282

2,731

-16.4%

2,142

6.5%

1,425

1,700

-16.2%

1,388

2.7%

 Net gains from trading securities and investment securities 

480

71

576.1%

509

-5.7%

299

44

579.5%

330

-9.4%

 Net gains from revaluation of investment property

-

-

NMF

1,188

-100.0%

-

-

NMF

770

-100.0%

 Net gains from foreign currencies, of which: 

8,650

4,356

98.6%

12,508

-30.8%

5,403

2,712

99.2%

8,104

-33.3%

 - dealing 

5,930

4,864

21.9%

7,180

-17.4%

3,704

3,028

22.3%

4,652

-20.4%

 - translation differences

2,720

 (508)

NMF

5,328

-48.9%

1,699

 (316)

NMF

3,452

-50.8%

 Other operating income 

10,261

3,556

188.6%

5,780

77.5%

6,409

2,214

189.5%

3,745

71.1%

 Other operating non-interest income 

19,391

7,983

142.9%

19,985

-3.0%

12,111

4,970

143.7%

12,949

-6.5%

 Revenue

70,394

53,147

32.5%

71,321

-1.3%

43,967

33,086

32.9%

46,215

-4.9%

 Salaries and other employee benefits

 (18,807)

 (15,955)

17.9%

 (18,357)

2.5%

 (11,747)

 (9,932)

18.3%

 (11,896)

-1.3%

 General and administrative expenses

 (9,496)

 (9,120)

4.1%

 (9,680)

-1.9%

 (5,931)

 (5,677)

4.5%

 (6,273)

-5.5%

 Depreciation and amortization

 (4,075)

 (3,581)

13.8%

 (4,631)

-12.0%

 (2,545)

 (2,229)

14.2%

 (3,001)

-15.2%

 Other operating expenses

 (2,157)

 (846)

155.0%

 (1,779)

21.2%

 (1,347)

 (527)

155.6%

 (1,153)

16.8%

 Other operating non-interest expenses

 (34,535)

 (29,502)

17.1%

 (34,447)

0.3%

 (21,570)

 (18,365)

17.5%

 (22,323)

-3.4%

 Operating income before cost of credit risk

35,859

23,645

51.7%

36,874

-2.8%

22,397

14,721

52.1%

23,892

-6.3%

 Impairment charge on loans to customers

4,132

2,311

78.8%

3,708

11.4%

2,581

1,439

79.4%

2,403

7.4%

 Impairment charge of impairment  on finance lease receivables

66

45

46.7%

117

-43.6%

41

28

46.4%

76

-46.1%

 Impairment charge on other assets and provisions

248

817

-69.6%

1,425

-82.6%

155

508

-69.5%

923

-83.2%

 Cost of credit risk

4,446

3,173

40.1%

5,250

-15.3%

2,777

1,975

40.6%

3,402

-18.4%

 Net operating income

31,413

20,472

53.4%

31,624

-0.7%

19,620

12,746

53.9%

20,490

-4.2%

 Net non-operating expense

 (2,650)

 (33)

NMF

 (5,813)

-54.4%

 (1,655)

 (21)

NMF

 (3,764)

-56.0%

 Profit before income tax expense from continuing operations

28,763

20,439

40.7%

25,811

11.4%

17,965

12,725

41.2%

16,726

7.4%

 Income tax expense

4,845

3,382

43.3%

3,466

39.8%

3,026

2,106

43.7%

2,246

34.7%

 Profit for the period from continuing operations

23,918

17,057

40.2%

22,345

7.0%

14,939

10,619

40.7%

14,480

3.2%

 Net gain (loss) from discontinued operations 

33

 (7,179)

NMF

 (1,779)

NMF

20

 (4,469)

NMF

 (1,153)

NMF

 Profit for the period 

23,951

9,878

142.5%

20,566

16.5%

14,959

6,150

143.2%

13,327

12.2%

 Attributable to:











 - shareholders of the Bank

23,581

10,030

135.1%

19,141

23.2%

14,728

6,245

135.8%

12,404

18.7%

 - non-controlling interests

370

 (152)

NMF

1,425

-74.0%

231

 (95)

NMF

923

-75.0%












Earnings per share (basic)

0.74

0.57

29.8%

0.71

4.2%

0.46

0.35

31.4%

0.46

-

Earnings per share (diluted)

0.72

0.55

30.9%

0.67

7.5%

0.45

0.34

32.4%

0.43

4.7%

 

Converted to U.S. dollars for the convenience using an exchange rate of GEL 1.6600 per US$1.00 as of 31 March 2012, GEL 1.6703 per US$1.00 as of 31 December 2011 and 1.7059 as of 31 March 2011, such exchange rates being the official Georgian Lari to U.S. dollar period-end exchange rates as reported by the National Bank of Georgia.

 

Converted to GBP for the convenience using an exchange rate of GEL 2.6578 per GBP1.00 as of 31 March 2012, GEL 2.5776 per GBP1.00 as of 31 December 2011 and 2.7402 as of 31 March 2011, such exchange rates being the official Georgian Lari to GBP dollar period-end exchange rates as reported by the National Bank of Georgia.

 

 

 

 

  

CONSOLIDATED BALANCE SHEET in US$ and GBP

 

 

Thousands, unless otherwise noted and except for per share values

Q1 2012

Q1 2011

Change

Q4 2011

Change

Q1 2012

Q1 2011

Change

Q4 2011

Change


US$

US$

Y-O-Y

US$

Q-O-Q

GBP

GBP

Y-O-Y

GBP

Q-O-Q



%


%


%


%

Assets

(Unaudited)

Cash and cash equivalents

229,751

253,444

-9.3%

376,418

-39.0%

143,497

157,780

-9.1%

243,921

-41.2%

Amounts due from credit institutions

173,443

232,974

-25.6%

173,340

0.1%

108,328

145,037

-25.3%

112,325

-3.6%

Investment securities

215,372

211,487

1.8%

251,198

-14.3%

134,516

131,660

2.2%

162,778

-17.4%

Loans to customers and finance lease receivables

1,634,790

1,314,221

24.4%

1,566,402

4.4%

1,021,052

818,163

24.8%

1,015,038

0.6%

Investments in associates

1,827

3,355

-45.5%

1,804

1.3%

1,141

2,089

1,169

-2.4%

Investment properties

75,364

59,396

26.9%

60,879

23.8%

47,071

36,977

39,450

19.3%

Property and equipment

204,264

165,887

23.1%

208,412

-2.0%

127,578

103,272

23.5%

135,052

-5.5%

Goodwill

27,609

40,593

-32.0%

27,657

-0.2%

17,244

25,271

-31.8%

17,922

-3.8%

Other intangible assets

12,445

13,526

-8.0%

12,706

-2.1%

7,773

8,421

-7.7%

8,233

-5.6%

Current income tax assets

4,573

9,160

-50.1%

5,081

-10.0%

2,856

5,703

-49.9%

3,293

-13.3%

Deferred income tax assets

20,373

14,814

37.5%

17,918

13.7%

12,724

9,222

38.0%

11,611

9.6%

Prepayments

9,019

4,366

106.6%

8,892

1.4%

5,633

2,718

107.2%

5,762

-2.2%

Other assets

96,085

50,451

90.5%

82,361

16.7%

60,012

31,408

91.1%

53,371

12.4%

Total assets

2,704,915

2,373,674

14.0%

2,793,068

-3.2%

1,689,425

1,477,721

14.3%

1,809,925

-6.7%

Liabilities











Amounts due to customers, of which:

1,581,463

1,215,426

30.1%

1,637,563

-3.4%

987,745

756,658

1,061,151

-6.9%

   - Client deposits

1,471,089

1,158,853

26.9%

1,529,117

-3.8%

918,808

721,439

27.4%

990,877

-7.3%

   - Promissory notes

110,374

56,573

95.1%

108,446

1.8%

68,937

35,219

95.7%

70,274

-1.9%

Amounts due to credit institutions

454,109

646,040

-29.7%

551,501

-17.7%

283,626

402,189

-29.5%

357,376

-20.6%

Current income tax liabilities

384

56

585.7%

703

-45.4%

240

35

585.7%

455

-47.3%

Deferred income tax liabilities

27,135

14,374

88.8%

21,698

25.1%

16,948

8,948

89.4%

14,060

20.5%

Provisions

258

3,439

-92.5%

231

11.7%

161

2,141

-92.5%

150

7.3%

Other liabilities

70,157

61,972

13.2%

94,870

-26.0%

43,816

38,582

13.6%

61,478

-28.7%

Total liabilities

2,133,506

1,941,307

9.9%

2,306,566

-7.5%

1,332,536

1,208,553

10.3%

1,494,670

-10.8%

Equity











Share capital

575

18,379

-96.9%

19,684

-97.1%

359

11,442

-96.9%

12,755

-97.2%

Additional paid-in capital

348,878

280,702

24.3%

283,621

23.0%

217,901

174,750

24.7%

183,788

18.6%

Treasury shares

 (43)

 (828)

-94.8%

 (1,883)

-97.7%

 (27)

 (516)

-94.8%

 (1,221)

-97.8%

Other reserves

11,057

35,557

-68.9%

8,668

27.6%

6,906

22,136

-68.8%

5,617

22.9%

Retained earnings

174,985

81,898

113.7%

152,421

14.8%

109,292

50,985

114.4%

98,769

10.7%

Total equity attributable to shareholders of the Bank

535,452

415,708

28.8%

462,511

15.8%

334,431

258,797

29.2%

299,708

11.6%

Non-controlling interests

35,957

16,659

115.8%

23,991

49.9%

22,458

10,371

116.5%

15,547

44.5%

Total equity

571,409

432,367

32.2%

486,502

17.5%

356,889

269,168

32.6%

315,255

13.2%

Total liabilities and equity

2,704,915

2,373,674

14.0%

2,793,068

-3.2%

1,689,425

1,477,721

14.3%

1,809,925

-6.7%












Book value per share (basic)

16.13

13.89

16.1%

15.62

3.3%

10.08

8.65

16.5%

10.12

-0.4%

Book value per share (diluted)

14.91

11.94

24.9%

13.86

7.6%

9.31

7.43

25.3%

8.98

3.7%

 

 

 

Converted to U.S. dollars for the convenience using an exchange rate of GEL 1.6600 per US$1.00 as of 31 March 2012, GEL 1.6703 per US$1.00 as of 31 December 2011 and 1.7059 as of 31 March 2011, such exchange rates being the official Georgian Lari to U.S. dollar period-end exchange rates as reported by the National Bank of Georgia.

 

Converted to GBP for the convenience using an exchange rate of GEL 2.6578 per GBP1.00 as of 31 March 2012, GEL 2.5776 per GBP1.00 as of 31 December 2011 and 2.7402 as of 31 March 2011, such exchange rates being the official Georgian Lari to GBP dollar period-end exchange rates as reported by the National Bank of Georgia.



 

KEY RATIOS

AND SELECTED OPERATING DATA

Q1 2012

Q1 2011

Q4 2011





Profitability




ROAA, Annualised1

3.5%

2.9%

3.4%

ROAE, Annualised2

18.9%

22.8%

18.3%

Net Interest Margin, Annualised3

7.3%

7.0%

6.8%

Loan Yield, Annualised4

18.0%

17.4%

17.7%

Cost of Funds, Annualised5

8.3%

7.6%

8.5%

Cost of Deposits, Annualised

8.0%

7.0%

8.3%

Cost of Borrowed Funds, Annualised

9.2%

8.5%

9.2%

Operating Leverage, Y-O-Y6

15.0%

17.9%

-2.2%

Efficiency




Cost / Income7

49.1%

55.5%

48.3%

Liquidity








NBG Liquidity Ratio8

36.0%

44.5%

37.8%

Liquid Assets To Total Liabilities9

29.0%

36.0%

34.8%

Net Loans To Customer Funds

103.4%

108.1%

95.7%

Leverage (Times)10

3.7

4.5

4.7

Asset Quality:




NPLs (in GEL thousands)

94,344

90,303

97,191

NPLs To Gross Loans To Clients

3.3%

3.8%

3.6%

NPL Coverage Ratio11

126.8%

132.2%

118.5%

Cost of Risk, Annualised12

1.0%

0.7%

1.0%

Capital Adequacy:




BIS Tier I Capital Adequacy Ratio, Consolidated13

21.5%

18.0%

19.9%

BIS Total Capital Adequacy Ratio, Consolidated14

28.0%

28.8%

28.5%

NBG Tier I Capital Adequacy Ratio15

15.2%

12.7%

10.5%

NBG Total Capital Adequacy Ratio16

18.2%

15.6%

16.2%

Per Share Values:




Basic EPS (GEL)17

1.23

0.97

1.18

Diluted EPS (GEL)

1.19

0.93

1.12

Book Value Per Share (GEL), Basic18

26.78

23.69

26.09

Book Value Per Share (GEL), Diluted

24.75

20.36

23.15

Ordinary Shares Outstanding - Weighted Average, Basic19

31,776,406

30,264,755

29,734,272

Ordinary Shares Outstanding - Weighted Average, Diluted20

33,858,565

33,739,369

33,369,272

Ordinary Shares Outstanding - Period End, Basic

35,909,383

31,353,349

32,877,547

Treasury Shares Outstanding - Period End

(2,724,582)

(1,413,000)

(3,146,140)

Selected Operating Data:




Full Time Employees, Group, Of Which:

7,393

5,313

7,301

 - Full Time Employees, BOG Stand-Alone

3,401

3,206

3,364

 - Full Time Employees, Aldagi BCI Insurance

323

308

338

 - Full Time Employees, Aldagi BCI Healthcare

2,740

729

2,573

 - Full Time Employees, BNB

271

281

260

 - Full Time Employees, Other

658

789

766

Total Assets Per FTE, BOG Stand-Alone (in GEL thousands)

1,303

1,227

1,347

Number Of Active Branches, Of Which:

164

143

158

 - Flagship Branches

34

34

        34

 - Standard Branches

94

85

91

 - Express Branches (including Metro)

36

24

33

Number Of ATMs

431

408

426

Number Of Cards Outstanding, Of Which:

703,959

 614,990

663,205

- Debit cards

568,209

509,636

535,385

- Credit cards

135,750

105,354

127,820

Number Of POS Terminals

2,940

2,404

2,828

 

 

 

 

 

 

OTHER RATIOS

 

 

Q1 2012

 

 

Q1 2011

 

 

Q4 2011





Profitability Ratios:




ROE, Annualised

17.6%

22.0%

18.0%

Interest Income / Average Int. Earning Assets Excl. Cash, Annualised21

17.5%

17.9%

18.1%

Interest Income / Average Int. Earning Assets Incl. Cash, Annualised

16.0%

14.5%

15.0%

Net F&C Inc. To Av. Int. Earn. Ass., Annualised

2.3%

1.9%

2.0%

Net Fee And Commission Income To Revenue

16.9%

17.1%

18.6%

Operating Leverage, Q-O-Q

-1.5%

4.4%

5.8%

Revenue to Total Assets, Annualised

10.4%

9.0%

10.2%

Recurring Earning Power, Annualised22

5.2%

4.0%

5.9%

Profit To Revenue

34.0%

32.1%

31.3%

Efficiency Ratios:




Operating Cost to Av. Total Ass., Annualised23

5.0%

5.0%

5.5%

Cost to Average Total Assets, Annualised

5.4%

5.0%

6.1%

Personne Cost to Revenue

26.7%

30.0%

27.0%

Personnel Cost to Operating Cost

54.5%

54.1%

54.7%

Personnel Cost to Average Total Assets, Annualised

2.8%

2.7%

2.8%

Liquidity Ratios:




Liquid Assets To Total Assets

22.9%

29.5%

28.4%

Net Loans to Total Assets

60.4%

55.4%

56.1%

Average Net Loans to Average Total Assets

57.2%

56.3%

58.2%

Interest Earning Assets to Total Assets

74.8%

74.2%

80.7%

Avererage Interest Earning Assets/Average Total Assets

73.2%

80.0%

80.7%

Net Loans to Client Deposits

111.1%

113.4%

102.4%

Average Net Loans to Av. Client Deposits

104.3%

115.1%

113.3%

Net Loans to Total Deposits

107.5%

106.1%

100.2%

Net Loans to (Total Deposits + Equity)

78.1%

78.6%

76.4%

Net Loans to Total Liabilities

76.6%

67.7%

67.9%

Total Deposits to Total Liabilities

71.3%

63.8%

67.8%

Client Deposits to Total Deposits

96.8%

93.5%

97.8%

Client Deposits to Total Liabilties

69.0%

59.7%

66.3%

Total Deposits to Total Assets

56.2%

52.2%

56.0%

Client Deposits to Total Assets

54.4%

48.8%

54.7%

Client Deposits to Total Equity (Times)

2.6

2.7

3.1

Total Equity to Net Loans

35.0%

32.9%

31.1%

Asset Quality:




Reserve For Loan Losses to Gross Loans to Clients24

4.2%

5.1%

4.2%

% of Loans to Clients collateralised

87.6%

90.1%

87.0%

Equity to Average Net Loans to Clients

36.1%

32.2%

31.7%

 

 

 

 

 

NOTES TO KEY RATIOS

 

1

Return On Average Total Assets (ROAA) equals Profit for the period from continuing operations divided by monthly Average Total Assets for the same period;

2

Return On Average Total Equity (ROAE) equals Profit for the period from continuing operations attributable to shareholders of the Bank divided by monthly Average Equity attributable to shareholders of the Bank for the same period;

3

Net Interest Margin equals Net Interest Income of the period (adjusted for the gains or losses from revaluation of interest rate derivatives) divided by monthly Average Interest Earning Assets Including Cash for the same period; Interest Earning Assets Including Cash include: Amounts Due From Credit Institutions, Investment Securities (but excluding corporate shares and other equity instruments) and Loans To Customers And Finance Lease Receivables;

4

Loan Yield equals Interest Income From Loans To Customers And Finance Lease Receivables divided by monthly Average Gross Loans To Customers And Finance Lease Receivables;

5

Cost Of Funds equals Interest Expense of the period (adjusted for the gains or losses from revaluation of interest rate derivatives) divided by monthly Average Interest Bearing Liabilities; Interest Bearing Liabilities Include: Amounts Due To Credit Institutions and Amounts Due To Customers;

 6

Operating Leverage equals percentage change in Revenue less percentage change in Other Operating Non-Interest Expenses;

7

Cost / Income Ratio equals Other Operating Non-Interest Expenses divided by Revenue;

8

Average liquid assets during the month (as defined by NBG) divided by selected average liabilities and selected average off-balance sheet commitments (both as defined by NBG);

9

Liquid Assets include: Cash And Cash Equivalents, Amounts Due From Credit Institutions and Investment Securities;

10

Leverage (Times) equals Total Liabilities divided by Total Equity;

11

NPL Coverage Ratio equals Allowance For Impairment Of Loans And Finance Lease Receivables divided by NPLs;

12

Cost Of Risk equals Impairment Charge for Loans To Customers And Finance Lease Receivables for the period divided by monthly average Gross Loans To Customers And Finance Lease Receivables over the same period;

13

BIS Tier I Capital Adequacy Ratio equals Tier I Capital divided by Total Risk Weighted Assets, both calculated in accordance with the requirements of Basel Accord I;

14

BIS Total Capital Adequacy Ratio equals Total Capital divided by Total Risk Weighted Assets, both calculated in accordance with the requirements of Basel Accord I;

15

NBG Tier I Capital Adequacy Ratio equals Tier I Capital a divided by Total Risk Weighted Assets, both calculated in accordance with the requirements the National Bank of Georgia instructions;

16

NBG Total Capital Adequacy Ratio equals Total Capital divided by Total Risk Weighted Assets, both calculated in accordance with the requirements of the National Bank of Georgia instructions;

17

Basic EPS equals Profit for the period from continuing operations attributable to shareholders of the Bank divided by the weighted average number of outstanding ordinary shares over the same period;

18

Book Value Per Share equals Total Equity attributable to shareholders of the Bank divided by Net Ordinary Shares Outstanding at period end; Net Ordinary Shares Outstanding equals total number of Ordinary Shares Outstanding at period end less number of Treasury Shares at period end;

19

Weighted average number of ordinary shares equal average of daily outstanding number of shares less daily outstanding number of treasury shares;

20

Weighted average diluted number of ordinary shares equals weighted average number of ordinary shares plus weighted average dilutive number of shares known to the management during the same period;

21

Average Interest Earning Assets are calculated on a monthly basis; Interest Earning Assets Excluding Cash include: Investment Securities (but excluding corporate shares and other equity instruments) and Loans To Customers And Finance Lease Receivables;;

22

Recurring Earning Power equals Operating Income Before Cost of Credit Risk for the period divided by monthly average Total Assets of the same period;

23

Operating Cost equals Other Operating Non-Interest Expenses;

24

Reserve For Loan Losses To Gross Loans equals Allowance For Impairment Of Loans And Finance Lease Receivables divided by Gross Loans And Finance Lease Receivables.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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