Bank of Georgia delivers profit rise in first quarter

9th May 2014 13:45

Bank of Georgia reported a rise in both revenue and profit for the first quarter, although the net interest margin (NIM) dipped slightly from a year earlier.Turnover for the three month period climbed 11.8% year-on-year from 14.5m Georgian Lari (GEL) to 137.5m, driven by positive operating leverage of 1.9% during the quarter and improving cost of risk compared to the same period last year.The improvements helped lift profit by 27.8% to GEL 53.7m. Basic earnings per share increased by 26.9% to GEL 1.51 compared to GEL 1.19 a year earlier, while the return on average assets (ROAA) stood at 3.3% compared to 3.1% in the first quarter of 2013.THe return on average equity (ROAE) stood at 17.7% up from 15.9% year-on-year.Irakli Gilauri, the group's Chief Executive Officer, said: "I am pleased with the Bank's continued progress in the first quarter 2014 and its ability to report strong results in the seasonally quiet first quarter of the year [...] Asset quality improvements have translated into a reduced cost of risk of 1.0% compared to 1.4% in the first quarter last year. "The revenue growth reflected strong growth in net interest income, up 9.8% year-on-year, as a result of an 18.1% increase in customer lending over the last 12 months; a more than doubling of net healthcare revenues and a strong performance from the Bank's Affordable Housing businesses. "The net interest margin at 7.3% was slightly lower than last year, partly reflecting the cost of excess liquidity as well as the margin pressure on loans amid increased competition for credit - but remains within our medium-term target of 7.0-7.5%." The share price dipped 0.11% to 2,670p by 14:18. NR