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Highlights
- Bank of Georgia’s H1FY24 saw a 37.6% rise in net interest income and 106.9% profit increase.
- The company announced a GEL 73.4 million share buyback and a GEL 3.38 interim dividend.
- BGEO’s medium-term goals include 15% loan book growth and over 20% return on equity.
Bank of Georgia Group PLC (LSE:BGEO) is listed on the FTSE 250. Headquartered in the UK, it is a financial holding company. It provides banking and financial services mainly in Georgia and Armenia.
In H1FY24, the company achieved notable financial results, with net interest income surging by 37.6% compared to the previous corresponding period. Operating income also saw an increase of 27.3%, while profit for the period increased by 106.9%. As of 30 June 2024, the Georgian Financial Services loan book reached GEL 21,659.4 million, reflecting a 23.0% year-over-year and 7.4% quarter-over-quarter growth, with a constant currency basis increase of 19.6% year-over-year and 5.6% quarter-over-quarter. In comparison, the Armenian Financial Services loan book totaled GEL 7,713.9 million, showing a 12.9% quarter-over-quarter growth, or 7.2% on a constant currency basis.
Further, in Q1 FY24, the company had a higher net interest margin of 6.4% and higher deposit growth of 282.1%, compared to industry median of 2.10% and 1.7%, respectively.
Recent Business Update
On 22 August 2024, Bank of Georgia announced that its Board of Directors has approved a GEL 73.4 million share buyback and cancellation program. This decision reflects the Group's commitment to its capital distribution policy, which targets a payout ratio of 30-50% of annual profits through a combination of dividends and share buybacks.
In conjunction with the buyback announcement, the company also declared an interim dividend of GEL 3.38 per share for the period ending 30 June 2024. This dividend will be paid in Pounds Sterling on 11 October 2024.
Company Outlook
For the medium term, Bank of Georgia Group PLC has set ambitious targets, aiming for around 15% annual growth in its loan book, up from the previous 10% target following the acquisition of Ameriabank in March 2024. The bank is also striving to achieve a return on average equity exceeding 20% and to uphold a capital distribution ratio of 30-50% annually, which includes both dividends and share buybacks.
Top 10 Shareholders
The top 10 shareholders of BGEO together own approximately 48.73% of the total shares. JSC Georgia Capital holds the largest stake at around 20.13% followed by M&G Investment Management Ltd. with about 4.95% stake, as shown in the chart below.
Price Performance
BGEO’s stock price has decreased by approximately 6.25% over the past month and has fallen around 17.11% over the last six months. The stock's 52-week low is GBX 3,075.00, and its 52-week high is GBX 5,510.00. Currently, it is trading below the average of these 52-week high and low values.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 19 September 2024. The reference data in this report has been partly sourced from EODHD/Others.
