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Bank of Georgia (LSE:BGEO) has announced a £21m share buyback program following its second-quarter financial results, which revealed an 11% increase in profits. This performance includes the first-time integration of Armenian bank Ameriabank into the bank’s financial statements after its acquisition.
The bank’s board has approved the repurchase of GEL73.4m in shares, in line with its capital distribution policy, which mandates returning 30% to 50% of annual profits to shareholders.
For the quarter ending June 30, consolidated adjusted profit totaled GEL430m (£121m), up from GEL409m in the same period the previous year. This increase was achieved despite incurring a GEL49m charge related to the Ameriabank acquisition, completed in April. Without this charge, adjusted profits would have been 23.7% higher, reaching GEL480m.
Net interest income substantially increased, rising to GEL618m for the quarter, compared to GEL396m the previous year.
Chief Executive Archil Gachechiladze highlighted the resilience of the Georgian economy, which has managed to grow by 9.5% in real GDP during the second quarter despite ongoing political turbulence and the anticipation of national elections. Gachechiladze acknowledged that political uncertainty will likely persist with the upcoming parliamentary elections scheduled for October 2024. He assured that the bank will continue to monitor the situation closely and manage operations prudently.
Gachechiladze expressed confidence in the bank’s strategic position and commitment to delivering strong growth and profitability in its core markets. The bank remains focused on creating value for its shareholders in the quarters ahead, maintaining a positive outlook despite the broader economic and political challenges.
