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Highlights

  • In FY23, the company’s net interest income rose by approximately 36.6% compared to FY22
  • BGEO plans to distribute a final dividend of GEL 4.94 per share on 19 July 2024
  • BGEO maintains its medium-term profitability target of exceeding 20% return on equity (ROE)

Bank of Georgia Group PLC (LSE: BGEO) offers a range of financial services including banking, brokerage, leasing, and investment management to both corporate and individual clients. The company is listed on the FTSE 250 and has a market capitalization of GBP 1756.66 million.

In FY23, the company experienced a significant increase in net interest income, which rose approximately 36.6% compared to FY22. This growth was supported by a sustained momentum in the Georgian economy, driven by increased domestic spending on consumption and investment, which helped counterbalance slower external demand. Similarly, basic earnings per share also rose by approximately 1%.

Additionally, the company raised its total dividend by around 4.6% in FY23 compared to FY22. It plans to distribute a final dividend of GEL 4.94 per share on 19 July 2024, with the ex-dividend date set for 04 July 2024.

Recent business update

In the first quarter of FY24, the company saw a 14.1% year-over-year increase in adjusted operating income before the cost of risk, reaching GEL 456.0 million. Additionally, the company has added 166,000 monthly active retail customers over the past twelve months, bringing the total to 1.8 million individuals.

Company outlook

The company anticipates achieving an annual loan book growth of approximately 15% in the medium term. BGEO also maintains its medium-term profitability target of exceeding 20% return on equity (ROE), alongside a capital distribution policy aiming to allocate 30-50% of annual profits through dividends and share buybacks or cancellations.

BGEO forecasts robust economic growth with Georgian and Armenian real GDPs expected to expand by more than 5% in 2024. Additionally, the bank anticipates meeting minimum capital requirements of 14.7%, 16.9%, and 19.9% for CET 1 ratio, tier 1 ratio, and total capital ratio respectively by December 2024. Overall, BGEO is well-positioned to capitalize on the advantages of increased economic activity in the region, states the company.

Top 10 Shareholders

The top 10 shareholders of BGEO together hold approximately 49.21% of the total shares. JSC Georgia Capital holds the largest share with around 20.03% shareholding, followed by M&G Investment Management Ltd.  with approximately 4.92% shareholding, as illustrated in the chart below:

Stock performance

BGEO's stock price has risen approximately 0.09% in the past month and has gained about 0.97% over the last six months. The stock's 52-week low and high are GBX 2,646.26 and GBX 5,510.00, respectively, with its current trading price below the average of this range.

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 21 June 2024. The reference data in this report has been partly sourced from EODHD/Others.