The FINANCIAL — The FINANCIAL — Bank of Georgia has announced that it is seeking to become a premium listing company on the London Stock Exchange (LSE).
Bank of Georgia GDR has been quoted on the LSE since 2006. A new public limited liability company – the Newco, incorporated in England – will become the holding company for the Bank of Georgia group of companies, and investors will be offered to exchange their Bank shares for shares of the Newco. The offer is expected to be made in the 4th quarter of 2011.
GDR or Global Depository Receipts facilitate trade of shares and are commonly used to invest in companies from developing or emerging markets.
“Bank of Georgia is aiming to become a premium listing company on LSE. Among the widest banks represented on LSE, BOG will be the sixth that will have a premium listing. By becoming a premium listing company, the level of listing on the London Stock Exchange will much improve and this fact will attract more finances to our bank,” said Irakli Gilauri, Director General of Bank of Georgia.
BOG, one of the leading banks in Georgia, successfully operates on the local market.
Net loans of the Bank have increased by 11% and client deposits by 14.8% since the beginning of the year, Bank of Georgia announced last week.
“For the first half of 2011 the net profit of JSC Bank of Georgia totalled 87.7 million GEL which is a very important increase of 135.5% in accordance with the index of the same period of last year (2010). The total operating income of Bank of Georgia for the first 6 months of 2011 was 164.6 million GEL and operating expenses totalled 71.4 million GEL,” Bank Officials note.
“The index of expenses has increased by 13% in comparison to the same period of last year, due to an increased number of employees and growth of lending activity from BOG. The net reserve expense of BOG for the first quarter of 2011 totalled 3.6 million GEL and such a low index during the last 3 quarters was caused by the increased level of bank assets,” BOG notes.
“BOG has been quite successful during the first 6 months of 2011. It is very important that our market share has also much increased during the last half a year. We have very rapid growth in our results which is directly connected with the high level of economic development of Georgia and strong position of BOG on the Georgian bank market,” Gilauri said.
The total assets of BOG have increased by 4% from the beginning of the current year. As of 30 June, 2011, they totalled 4 billion GEL.
“Net loans of BOG in accordance with the year 2010 increased by about 32.4% and as of June 30, 2011, totalled more than 2.4 million GEL, 11% growth from the beginning of the year. In retail banking activity, net loans totalled 1,061.2 million GEL, which is 9.4% growth from the beginning of the year and a 25% increase in accordance with the same period of last year. In corporate banking activity, net loans increased by 13.7% and as of June 30 totalled 1,356.6 million GEL, a 41.1% increase in accordance with last year. The market share of corporate banking activity of BOG totalled an impressive 50%,” BOG notes.
“For the second quarter of 2011, client deposits of Bank of Georgia totalled 2,070.4 million GEL, a 15% increase from the beginning of the year and 52.2% growth in comparison with the same period of 2010. In retail banking, the client deposits for the second quarter increased by about 10% compared to the first quarter of 2011. In corporate banking service, client deposits have increased by 3%. The accumulated property management client deposit of BOG for the second quarter of 2011 totalled 304.4 million GEL, a 4.7% increase in comparison with the first quarter of 2011. Deposits of foreign clients at BOG were more than 66% of accumulated property management’s total client deposits,” BOG claims.
According to BOG officials as of June 30, 2011, in accordance with the same period of last year the Bank has won a 3% market share of total loans, about a 5% market share of client deposits and 1% market share according to total assets. The market shares totalled 36.1% according to assets, 36% total loans and 34.6% client deposits.
“The number of credit deposits that were given out by BOG as of 30 June, 2011, totalled 109,706. The number of American Express credit cards total 78,024 already, since they were launched at BOG. Under the frames of the innovative service of BOG, SMS Service, as of June 30, 2011, 11,586 loans were given out to the volume of 36.7 million GEL,” Bank of Georgia said.
“Bank of Georgia has increased the number of service points on its instalment loan and now the service includes 242 merchants. Under the frames of its instalment loan, the number of crediting given out totalled 10.5 million GEL. For the second quarter of 2011, Bank of Georgia gave out 43 million GEL worth of mortgage loans, which is a 55% increase in accordance with the same period of last year,” BOG announced.
‘It is remarkable that BOG has been active in financing micro, small and medium businesses and for the second quarter of 2011 BOG has given out 114.1 million GEL worth of micro loans, which is a 22.1% increase in accordance with the first quarter of the same year. For the second quarter of 2011 the Bank allocated about 20 million GEL for financing small and medium businesses which is a 19% increase compared to the first quarter of the current year,” the Bank notes.
“The quite good results of the bank for the first half of 2011 and positive macro-economic perspective gives the opportunity to show stronger and better results for the second half of the year in the direction of balance sheets and income growth,” Gilauri said.
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