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Highlights

  • Bank of Georgia reported a 29.4% increase in operating income in H1FY24 compared to pcp.
  • BGEO’s subsidiary, JSC Bank of Georgia, received the title of World's Best Digital Bank 2024 from Global Finance.
  • BGEO plans to distribute 30-50% of its capital each year, which will include dividends and a share buyback program.

Bank of Georgia Group PLC (LSE: BGEO) offers banking and financial services. Based in the United Kingdom, BGEO has a market cap of GBP 1783.47mn and is listed on the FTSE 250 index.

In the first half of FY24, the company reported an operating income of GEL 1,592.95 million, a 29.4% increase from GEL 1,230.68 million in the prior corresponding period (pcp). This growth was mainly due to the merger with Ameriabank and improvements in Georgian Financial Services, even though net other income was lower compared to Q2 2023.

Its net interest income also rose to GEL 1,056.16 million, up 37.6% from GEL 767.81 million in pcp. However, in Q2 2024, the net interest margin in Georgian Financial Services fell by 50 basis points due to lower loan yields and higher funding costs, with a new USD 300 million bond also impacting quarterly results.

Recent Business Update

On October 3, 2024, Bank of Georgia Group announced that its subsidiary, JSC Bank of Georgia, received the title of World's Best Digital Bank 2024 from Global Finance. It was also recognized as the Best Consumer Digital Bank in the global category in this awards program.

Company Outlook

Bank of Georgia now aims for a 15% annual growth in its loan book. This is an increase from the previous target of about 10%, due to the acquisition of Ameriabank. The Group also seeks a return on average equity of over 20%. Additionally, it plans to distribute 30-50% of its capital each year, which will include dividends and a share buyback program.

Top 10 Shareholders

The top 10 shareholders of BGEO together form around 48.87% of the total shareholdings. JSC Georgia Capital holds the largest stake at around 20.21%. It is followed by M&G Investment Management Ltd with around 4.97% shareholding, as depicted in the chart below:

Price Information

The stock price of BGEO has risen by about 1.32% in the past month. However, in the past six months, it has dropped by approximately 28.90%. The stock's 52-week low is GBX 3200, while the 52-week high is GBX 5510. At present, it is trading below the average of these 52-week high and low prices. The stock’s closing price as of Oct 28, 2024, is GBX 3775.

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