The FINANCIAL — Bank Republic/ Société Générale Group is strengthening its retail banking services by opening a new branch in East Georgia. BR will offer universal banking solutions to the population of the East Georgia, Kakheti region through its Telavi branch.
On October 3, 2008, Bank Republic officially opened the Telavi branch at the address #4 Marjanishvili Street, Telavi, Georgia. The ceremony was attended by BR management, local governmental officials and honoured guests.
In total BR is planning to recruit 300 persons, which is an increased number compared to 2007.
“One of the strategic priorities of Bank Republic is the aggressive expansion of its branch network in the whole of Georgia, hence the opening of at least one branch per month,” claimed Gilbert Hie, BR CEO.
According to Hie, the BR aim is to be among the top leaders of the Georgian Banking industry in the years to come. It has a long term strategy to develop an extensive network of 80 branches throughout the country, to be close to its customers and provide the best products with the highest quality of service.
“I believe we will make the local population happy with high quality product and service offers. The Telavi branch will develop both corporate and retail banking activities. We must use the advantages which we have from Société Générale Group. Bank Republic would like to get more and more involved in import, export and foreign exchange. These are our competitive advantages which we must use,” noted Hie.
“We have a very wide and large range of product offers in more than 50 countries. I think that the most successful bank in Georgia in the coming year will be the bank that offers products and services best adapted to the local market’s needs. Bank Republic will continue opening one new branch each month,” said Hie.
Bank Republic is a leading commercial bank with rapid expansion of operations in Retail and Financial Services in Georgia. Employing more than 900 staff, serving its clients through 38 branches and service centers. Bank Republic owns an 8.6% market share in deposits and 7.6% in loans. Bank Republic is also the second most profitable bank of the Georgian market, achieving an average return on equity of 3% in 2007. In retail banking, BR is offering international standard quality of products to individual customers (deposits, personal banking, mortgage loans, consumer loans, plastic cards, transfers, electronic banking) and a high quality of customer service, warm welcome and truly professional attitude to each customer.
BR’s target is to provide high added value to the Georgian economy and to be a participant in credit distribution to priority sectors of the economy to help the Government of Georgia to successfully reduce poverty.
IFC provided a USD 7 million subordinated loan to support Bank Republic’s capital and a USD 15 million senior loan for mortgage financing in September, 2008. The 10-year senior debt is the longest tenor offered by IFC to a Georgian bank. This will enable the bank to provide more affordable mortgage loans during times of tight liquidity.
“We are enjoying a long-lasting and fruitful partnership with IFC. The new transactions are reinforcing this cooperation, and Bank Republic and Société Générale appreciate IFC’s strong support in this difficult financial environment,” said Gilbert Hie, Chief Executive Officer of Bank Republic.
On 29 September, 2006 Bank Republic entered into agreement with Société Générale Group and EBRD on purchasing 60% and 10% shares of BR respectively.
Société Générale is one of the largest financial services groups in the euro-zone. The Group employs 151,000 people worldwide in three key businesses: Retail Banking & Financial Services – Société Générale serves 27 million individual customers worldwide; Global Investment Management & Services – Société Générale is one of the largest banks in the euro-zone in terms of assets under custody (EUR 2,720 billion) and under management (EUR 435 billion, 2007);
Corporate & Investment Banking – Société Générale ranks among the leading banks worldwide in euro capital markets, derivatives and structured finance. Société Générale is included in the five major socially-responsible investment indexes.
Established in 1864, Société Générale is the 7th largest French company by market capitalization and one of the leading financial services group in the euro zone. It employs over 151,000 people in 82 countries worldwide. Its business mix is structured around three core businesses: Retail Banking & Financial Services, Global Investment Management & Services and Corporate and Investment Banking.
By Sopho Kheladze
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