Bank of Georgia Group posts bumper Q3 profits

14th Nov 2023 11:37

(Sharecast News) - Bank of Georgia posted another bumper set of results against the backdrop of continued quick growth in the local economy.

For the three months ending on 30 September, BGEO reported a 32.5% jump in profits before tax and one-off items to reach 4221.7m Georgian Lari.

A 42.3% gain in net interest income to about GEL420m powered the improvement, due in part to improved net interest margins of 6.6%, which was up from 5.3% a year earlier.

Commenting on the lender's quarterly results, chief executive officer, Archil Gachechiladze, highlighted how BGEO had added 41,000 active Retail customers and over 193,000 over the past year.

He also called attention of the lender's efforts in the digital space, including on its retail financial superapp.

Diluted earnings per share strengthened by 27.9% to GEL7.92.

The lender's cost-to-income ratio meanwhile decreased by 180 basis points to 28.8%.

Georgia's full-year gross domestic product growth was expected to reach approximately 6.8%, while inflation remained beneath the central bank's target.

Hence the recent half point interest rate cut by the National Bank of Georgia to 10.0%.

Gachechiladze also welcomed the European Commission's recent recommendation to the E.U. Council to grant Georgia candidate status.

A decision was expected next December.

As of 1133 GMT, shares of Bank of Georgia were falling by 2.95% to 3,455.0p, but remained within reach of the all-time highs hit during the previous week.