The FINANCIAL — BasisBank counts 15 years of history. It was set up in the period when a rather complex business environment existed in the country. However, by its own efforts, it managed to build up as a stably growing financial institution with a firm base. Today BasisBank is presented with 2 main offices and 17 service centers throughout Georgia.
The assessment of the results achieved during the last 2 years represents not only the analysis of the performed activities of the year but is the summary of the particular phase of the bank’s history. BasisBank assets have been increased by 75%, credit portfolio – by 81.2%, liabilities – by 81.18%. New products have been launched, with a network of branches and ATMs expanded and customer service improved.
The bank’s success demonstrates that within the competition existing in the banking sector, BasisBank managed to occupy its own place. This has been achieved firstly as a result of management’s sharply defined priorities and of the faithful implementation of the entire team.
According to Zurab Tsikhistavi, General Director of BasisBank, every employee of BasisBank has made a great contribution to the bank’s success.
“What we have already achieved is now a guarantee for further progress. I am sure we will again manage to accomplish our set goals and plans. BasisBank plans to keep the rate of growth, expansion of the geographic area of activities, and introduction of new market products. Improvement of service quality is our key priority,” Tsikhistavi declared to The FINANCIAL.
BasisBank stands ready to offer its customers the best bank products, terms and conditions. In 2006-2007 the number of its clients (individuals) increased by up to 200 percent. This is a huge success, yet a great challenge as well. In order to make our service available for more people and at the same time maintain the service quality, BasisBank is broadening its network considerably and expanding its staff.
The activities of BasisBank include introducing such significant innovations in the Georgian banking system as credit cards and convertible deposits. Now the bank remains leader with the most flexible and attractive terms of credit cards, alongside the well approved and famous credit cards Megobarati and Geocell Visa Card. Soon BasisBank will be offering its customers the new credit card. This new Instalment Card (Minute Card) will have the best terms and conditions compared to its analogue cards: a 24 month coverage period, low interest rate, flexibility and liberty to choose. These are the priorities of the card.
Geocell Visa Card and Megobarati are among the most popular banking products. Geocell Visa Card is a conjoined product with Geocell with a 30 day grace period and 10% annual interest rate. Geocell makes special bonuses for card owners: free minutes of airtime and free SMSs on a mobile phone number.
Megobarati translates as Friendly Card. This card has the best credit terms (a 30 day grace period – 0% and 10% annual interest rate). Megobarati owners are offered discounts at more than 40 boutiques, supermarkets and restaurants. Magti GSM grants free minutes of airtime and SMSs on cellular phones.
“The optimal credit product, its terms and conditions, shall reflect the interests of the bank as well as of its customers. The efficiency of our offer is shown in the scope of loans granted by BasisBank and the dynamics of their growth. The volume of credits granted by BasisBank has increased 12 fold which is the best appraisal of our activities and the chosen credit policy,” Tengiz Todria, the Head of Retail Credit Department of Basis Bank Declared to The FINANCIAL.
The most important events of the last years were the recognition by the International Financial Institutions (World Bank, The European Bank for Reconstruction and Development, etc.).
According to the Memorandum signed between BasisBank and the European Bank for Reconstruction and Development, a USD 6 million credit line was expanded to BasisBank. This credit line is designated to support micro and small enterprises. The loan will allow BasisBank to meet the demand for medium-term funding from micro, small and medium sized enterprises. BasisBank’s services centre located on Tamar Mepe Ave 14 is oriented to serve customers requiring express micro and small credits.
“EBRD chose BasisBank as a partner for several reasons. One of the most important reasons for choosing Basis Bank is its stability. It means that the bank is a reliable institution and EBRD has serious plans about the bank. EBRD’s strategy is to make a serious investment in BasisBank’s portfolio,” Tamuna Khaduri, the Head of Marketing and Corporate Development Department of BasisBank declared to The FINANCIAL.
Q. How important are Fitch ratings for the bank in terms of the raised corporate loyalty in local and international markets? And what has BasisBank reached in this direction?
A. The received Fitch rating was an estimation of BasisBank’s long term work. Fitch rating is a stimulus for the bank for further success. BasisBank always makes an effort to offer its customers the best service skills and new bank products. BasisBank wants to remain the bank which can feel the latest market tendencies exactly. Our aim is to primarily bring new banking products to the Georgian market, which is necessary for clients.
Q. Top international companies enter the Georgian market every now and then. Could you remember the largest foreign companies to have become Basis Banks’ corporate clients in 2007?
A. The following companies became BasisBank’s corporate clients in 2007: Shtrabag International, Heilit Woerner Bau Gmbh, Non-Profit Legal Entity United Nations Association, Rom Transportation Engineering Ltd, representative office of JSC Gedeon Richteri in Georgia, international insurance company Irao Ltd, S.Y. SHEM-TOV, and the Georgian National Commission of UNESCO Affairs. New clients are always welcomed by the bank. We greatly care about their service.
Q. Internet Banking, Telephone Banking, SMS Banking, Bank Client, a professionally designed website – how efficient do these remote online services appear to be for Basis Bank in terms of retail banking development?
A. Improving distant services is very important for the bank, as the clients number is growing day by day. At the moment the bank has the following services: Internet Banking, Telephone Banking, SMS Banking, Bank Client and Call Service. In 2007 BasisBank’s official website became far more refined. Service improvements are planned for the upcoming future and in case of a necessity we shall offer new tendencies as well.
Q. Delta Com has nominated BasisBank as one of the fastest growing banks which cares about modern IT solutions, which big project was it that won the nomination and how much did the bank invest in it?
A. Implementation of new technologies is the most important condition necessary for the bank’s fast growth and offering high quality service. As you know, Delta Com is an official representative of IBM in Georgia. It is great honour for BasisBank to cooperate with them. With the help of Delta Com we managed technical reequipping of the server. In total BasisBank spent USD 1 million in its IT direction. Today BasisBank has all the resources to offer its services to more individuals and organizations. A full range of bank products, expanding bank network, high service, flexible terms of products, advanced bank technologies – all these advantages make BasisBank – THE USEFUL BANK!
Income Statement Indicators of 2007
Total Income 15,153,019
Total Expense 10,709,374
Income Tax 942,549
Net Profit 3,501,096
Balance Sheet Indicators
Total Assets 102,979,438
Total Liabilities 85,277,395
Shareholder’s Equity 17,702,043
Financial Ratios
Earning per share 0.70
ROAE 20.77%
ROAA 3.79%
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