Bank of Georgia Group PLC 4Q22 & FY22 Results
Bank of Georgia Group PLC (the «Group«) today published its 4Q22 and FY22 preliminary financial results. The results report and the investor presentation are available on the Group’s website at www.bankofgeorgiagroup.com.
4Q22 and FY22 results highlights:
Figures were adjusted for a one-off GEL 391.1 million other income due to the settlement of an outstanding legacy claim, and a one-off GEL 79.3 million tax expense due to an amendment to the current corporate taxation model in Georgia.
§ Strong underlying performance and robust profitability
– Operating income before cost of risk (adjusted for one-off items) was GEL 404.0m in 4Q22 (up 76.7% y-o-y and up 10.4% q-o-q) and GEL 1,361.6m in FY22, up 59.4% y-o-y.
– The Group posted 4Q22 profit (adjusted for one-off items) of GEL 325.9m (up 62.4% y-o-y and up 12.3% q-o-q). FY22 profit amounted to GEL 1,132.2m, up 55.7% y-o-y.
– ROAE was 33.7% in 4Q22 (26.4% in 4Q21 and 32.4% in 3Q22) and 32.4% in FY22 (25.8% in FY21).
§ Net interest margin was up 40 bps y-o-y and q-o-q to 5.7% in 4Q22, driven by higher loan yield and decreased cost of funds
§ Cost to income ratio was 31.0% in 4Q22 (39.8% in 4Q21 and 30.6% in 3Q22) and 32.0% in FY22 (37.2% in FY21).
§ On a constant currency basis, loan portfolio increased by 12.9% y-o-y and 4.8% q-o-q during 4Q22. On a nominal basis, the loan book was up 4.3% y-o-y and by 4.3% q-o-q.
§ On a constant-currency basis, client deposits and notes grew 43.2% y-o-y and 8.5% q-o-q during 4Q22, mainly driven by the Retail Banking segment. On a nominal basis, client deposits and notes were up 30.1% y-o-y and 6.2% q-o-q as at 31 December 2022.
§ High quality loan portfolio, with a cost of credit risk ratio at 0.9% in 4Q22 (-0.2% in 4Q21 and 1.0% in 3Q22) and 0.8% in FY22 (0.0% in FY21).
§ Strong capital position
– At 31 December 2022, the Bank’s Basel III Common Equity Tier 1, Tier 1, and Total capital adequacy ratios stood at 14.7%, 16.7%, and 19.8%, respectively, all comfortably above the minimum requirements of 11.6%, 13.8% and 17.2%, respectively.
§ Capital distribution
– In December 2022, we completed the GEL 112.7 million share buyback and cancellation programme, having repurchased and cancelled 1,670,446 ordinary shares.
– The Board intends to increase the share buyback and cancellation programme by up to GEL 148 million.
– Further, at the 2023 Annual General Meeting, the Board also intends to recommend for shareholder approval a final dividend for 2022 of GEL 5.80 per share payable in Pounds Sterling at the prevailing rate. This would make a total dividend paid in respect of the Group’s 2022 earnings of GEL 7.65 per share.
§ Delivering on strategic priorities
– The number of monthly active users of our retail mobile and internet banking platforms reached 1,121 thousand at 31 December 2022 (up 31.5% y-o-y and up 11.6% q-o-q), with DAU/MAU at 47.6%, up 3.4 ppts y-o-y.
– The share of products activated digitally was 40.0% in 4Q22 vs 28.4% in 4Q21 and 34.0% in 3Q22.
– Bank of Georgia’s market share in acquiring volume increased to 50.3% in 4Q22 vs 43.0% in 4Q21.
– Net Promoter Score was 58 in 4Q22.
(c) Banknews
14 Март, 2023 at 14:12
Bank of Georgia Group PLC announces extension of share buyback programme
Bank of Georgia Group PLC (the «Group») announces today that its Board of Directors (the «Board») has approved an increase of up to GEL 148 million in its share buyback and cancellation programme. This is consistent with the Group’s capital and distribution policy, announced in September 2021, to target a dividend/share buyback payout ratio in the range of 30-50% of annual profits. The programme will commence on 16 February 2023 and the shares will be purchased in the open market. The purpose of the buyback is to reduce the Group’s share capital, and the cancellation of the treasury shares repurchased will be executed on a monthly basis.
At the 2023 Annual General Meeting, the Board intends to recommend for shareholder approval a final dividend for 2022 of GEL 5.80 per share payable in Pounds Sterling at the prevailing rate. This would make a total dividend paid in respect of the Group’s 2022 earnings of GEL 7.65 per share, a payout ratio of 25% of 2022 earnings. The share buyback and cancellation programme increases the total dividend/share buyback payout ratio, relating to 2022 earnings, to 37%.
In accordance with the authority granted by the shareholders at the 2022 Annual General Meeting («AGM»), the maximum number of shares that may be repurchased is 4,916,943. Since the announcement of the Group’s share buyback programme on 30 June 2022, the Group has already bought back and cancelled 1,670,446 shares at a total cost of GEL 112.7 million. The programme will be conducted within certain pre-set parameters, and in accordance with the general authority to repurchase shares granted at the 2022 AGM, Chapter 12 of the FCA Listing Rules and the provisions of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation (EU) 2016/1052 (also as in force in the UK, from time to time, including, where relevant, pursuant to the UK’s Market Abuse (Amendment) (EU Exit) Regulations 2019).
The Company has appointed Numis Securities Limited («Numis») to manage the programme until the end of the programme at the Group’s 2023 Annual General Meeting, expected to be in May 2023. During any closed periods the Company and its directors have no power to invoke any changes to the programme and it will be executed at the sole discretion of Numis.