The FINANCIAL — Cartu Bank, with 14 years of experience on the Georgian market, extended its deposit portfolio by 34% overall in 2010 which amounted to 50,225,501 GEL compared to the previous year’s figure.
According to the latest statistics, those of 28 February, the Bank disbursed up to 76 million GEL worth of loans whilst the total amount of loans disbursed adds up to more than 440 million GEL.
Cartu Bank was one of the first Georgian banks to be granted full membership to the VISA and MasterCard Payment Systems. Cartu is the first Georgian bank to have VISA and MasterCard service licenses in e-commerce.
The Bank’s main client base is held by medium and large corporations hence it concentrates on corporate financing mainly, as well as private banking for managers and corporate clients.
Loans disbursed by Cartu bank are of the following types: Chain business loans, Export-import loans, Import Substitution loans, Small and Medium-sized, Government Enterprises Privatization loans, Energy Efficiency Loans.
Cartu Bank ended February with profits of 3.2 million GEL and the net profits equalled 4,411,196 GEL as of March 1, 2011. The ratio of foreign currency denominated loans accounts for 82.8% (365,027,686 GEL).
About the CEO
George Kvirikashvili has focused his career on commercial banking in Georgia for the last 13 years. Currently Mr. Kvirkashvili serves as CEO of Cartu Bank. He holds a Master’s Degree in Finance from the University of Illinois and has extensive knowledge of the local banking sector.
Prior to working with Cartu Bank, Mr. Kvirikashvili served as the Director of Business Development and Branch Network Management at United Georgian Bank, where he oversaw the entire branch network. As a member of ALCO, he managed the Bank’s liquidity positions, including branch liquidity strategies, securing provisions of adequate liquidity sources.
Mr. Kvirikashvili also worked with the State Chancellery of Georgia where he served as Deputy Head of Fiscal, Monetary and Foreign Economic Relations. He successfully promoted land privatization and titling to private landowners as part of the Land Market Development Project sponsored by USAID.
Q. What is Cartu Bank’ business strategy for the years 2011-2012?
A. The Bank’s strategy in 2011 is concentrated on the diversification of its activities, including within the credit portfolio, which means a greater focus on Small and Medium Enterprises. The Bank’s plan is to guarantee organic and healthy growth to provide stability for its shareholders and clients.
Q. Which products are most interesting and demanded by your clients?
A. Cartu Bank is a universal bank which provides a wide range of banking products to its customers. This includes:
• Loans
• Checking accounts
• Plastic Cards
• Deposits
• Documentary Operations
• Distance banking (internet banking, SMS banking, Bank-client software)
Considering the fact that our main client base is medium and large corporations, we are primarily concentrated on corporate financing, as well as private banking for our managers and owners of our corporate clients.
Q. Tell us the main philosophy of the Bank? Who are your main clients and for which sector is Cartu Bank providing finance?
A. Headquartered in Tbilisi, Georgia, Cartu Bank is a financial institution providing universal banking services to private and corporate clients. Its strategy centres on providing superior quality services to corporate clients and a full spectrum of private banking products to owners, top and middle-level management of the companies. Moreover, the Bank offers competitive products to Small and Medium Enterprises.
Bank Cartu has been operating in the Georgian banking industry for 14 years. The Bank was established in 1996 as a Joint Stock Commercial Bank. Since then, the Bank has been steadily developing. Cartu Bank was one of the first Georgian banks granted full membership to the VISA and MasterCard Payment Systems. Cartu is the first Georgian bank to have VISA and MasterCard service licenses in e-commerce. Also, the Bank is actively cooperating with the European Bank for Reconstruction and Development, the Black Sea Trade and Development Bank and the World Bank to finance Georgian businesses. The Bank fosters import and export operations among BSEC countries and stimulates energy efficiency and renewable energy projects in Georgia, helping the economy to reduce its energy intensity with a credit line for on-lending to local private companies.
Q. How supportive is Cartu Bank towards SMEs in Georgia?
A. Cartu Bank has experience, proven stability and a broad portfolio of products and services to be the best partner in Georgia. In order to meet the expectations of our SME clients we developed several credit programmes which are tailored to their needs:
Chain business loans – designed for companies having two or more branches or just planning to expand more.
Export-import loans – designed for companies working in international trade.
Government property privatization loans – designed to help companies or individuals buy government property and expand their business.
Import Substitution loans – designed to support local production and help substitute or reduce imports.
Q. How successful is the import replacement production support programme?
A. I would like to mention first that Cartu Bank was one of the first local financial institutions which decided to support local producers and substitute imports. The programme is quite successful; the Bank has financed a number of Georgian companies in different industries (including poultry farms, egg production, vegetable oil production, plastic production etc).
Q. Agriculture is one of the main priorities of the Government this year. How active is Cartu Bank in this regard – how many businesses have been financed?
A. Last year we outlined agriculture as one of our priority industries for the Bank’s future development, because we see that this industry has a much higher potential for growth compared to others. Currently we are working on a special offer for farmers in the Kakheti region. This project aims to create a tailored-made offer for farmers (primary production) in the region.
Q. What is the amount of deposits in Cartu Bank – what is the interest paid on them? And how about people’s behaviour in recent months towards inflation?
A. As of December 31, 2010, the Bank’s Deposit Portfolio amounted to 50,225,501 GEL which is a 34% increase compared to 2009’s results. This allows us to conclude that (1) the Georgian population regained its trust in the stability of Georgian banks and (2) their saving behaviour is higher compared to in the last several years.
Q. What requirements should businesses nowadays satisfy in order to get a low interest loan from Cartu Bank?
A. Again, Cartu was one of the first banks to offer its clients low interest rates on loans. We have an individual approach to each project. However, there are some common requirements (based on the world’s best practices and our expertise) for the loan applicant to be successful: (1) a company should demonstrate good historical performance (including financial and operational) and (2) the ability to repay the loan based on current cash flows. If these requirements are fulfilled, then the Bank will be able to offer the best rates currently available.
Q. What are your expectations of 2011?
A. As a frontier economy, Georgia stills needs considerable investment into its infrastructure development. More importantly, Georgia would benefit from the expertise and knowledge of the international community. Along with consulting or technical assistance, it is essential to gain practical, empirical knowledge through doing business together, agriculture, starting new production plants, developing value chains in the economy or creating new industry clusters, etc.
Q. What growth do you foresee at your bank and what will it depend on?
A. With our new products we have been introducing in 2010 and the high level of support and interest of our clients we expect continued growth in these new services and a steady increase in the growth of our portfolio.
Q. How about CSR – how active are you in this regard and what activities do you plan for the forthcoming year?
A. Social Responsibility is one of Cartu Bank’s core values. Therefore, a significant portion of our profit is donated to the Cartu Charity Foundation every year, which is the biggest charity fund in the country.
Moreover, we stimulate the Georgian economy through various credit programmes. Particularly important is our Import Replacement Support Programme; the goal of the programme is to support local entrepreneurs and increase local production levels.
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