The FINANCIAL — Underlying net profit amounted to GEL 86.3 million (2Q 2016: GEL62.9 million; 1Q 2017: GEL 98.1 million)
Reported net profit amounted to GEL 79.9 million (2Q 2016: GEL 80.5 million; 1Q 2017: GEL 96.6 million)
Underlying1 return on equity (ROE) amounted to 20.4% (2Q 2016: 19.9%; 1Q 2017: 24.6%)
Reported return on equity (ROE) amounted to 18.9% (2Q 2016: 25.5%; 1Q 2017: 24.2%)
Underlying return on asset (ROA) amounted to 3.2% (2Q 2016:3.8%; 1Q 2017:3.7%)
Reported return on asset (ROA) amounted to 3.0% (2Q 2016:4.9%; 1Q 2017: 3.7%)
Total operating income for the period was up by 32.9% YoY (up by 9.1% YoY to GEL 170.1 million without the Bank Republic estimated contribution) and by 1.8% QoQ to GEL 207.1 million
Underlying1 cost to income ratio stood at 41.2% (2Q 2016: 41.7%; 1Q 2017: 39.8%)
Reported cost to income was 44.9% (2Q 2016: 45.1%; 1Q 2017: 40.8%)
Cost of risk on loans stood at 1.3% and increased by 0.2 pp YoY. QoQ cost of risk remained stable at constant currency rate
Net interest margin (NIM) stood at 6.8% in 2Q 2017, down by 1.1 pp YoY and up by 0.2 pp QoQ
Risk adjusted net interest margin (NIM) stood at 5.3% in 2Q 2017(2Q 2016: 6.7%; 1Q 2017: 5.1%)
1H 2017 P&L Highlights
Underlying1 net profit was up by 45.6% YoY to GEL 184.4 million, delivering ROE without one-offs of 22.5% (1H 2016: 20.4%)
Reported net profit was up by 26.7% YoY to GEL176.4 million, delivering ROE of 21.5% (1H 2016: 22.5%)
Underlying1 ROA was 3.5% (1H 2016: 3.8%)
Reported ROA was 3.3% (1H 2016: 4.2%)
Total operating income for the period was up by 36.4% YoY to GEL 410.6 million (up by 11.4% YoY to GEL 335.3 million without the Bank Republic estimated contribution effect)
Underlying cost to income ratio stood at 40.5% (1H 2016: 41.0%)
Reported cost to income stood at 42.8% (1H 2016: 44.7%)
Cost of risk on loans stood at 1.1% unchanged from 1H 2016
Net interest margin (NIM) stood at 6.7% (1H 2016: 7.8%)
Risk adjusted net interest margin (NIM) stood at 5.3% (1H 2016: 6.5%)
Balance Sheet Highlights as at 30 June 2017
Total assets reached GEL 11,280.8 million as of 30 June 2017, up by 66.6% YoY and 8.9% QoQ
Gross loans and advances to customers stood at GEL 7,386.4 million as of 30 June 2017, up by 56.8% YoY (up by 30.8% YoY to 6,160.4 million without the Bank Republic estimated contribution effect) and up by 3.7% QoQ
Net loans to deposits + IFI funding stood at 90.6% and Net Stable Funding Ratio (NSFR) stood at 129%
NPLs stood at 3.4%, down by 1.3 pp YoY and stable QoQ
NPLs coverage stood at 84.3%, (at 219.3% with collateral) (31 March 2017: 84.6%; 30 June 2016: 85.6%)
Total customer deposits stood at GEL 6,666.4 million as of 30 June 2017, up by 56.1% YoY (up by 43.3% YoY to 6,116.9 million without the Bank Republic estimated contribution) and up by 9.8% QoQ
Regulatory tier I and total capital adequacy ratios stood at 10.8% and 14.6% respectivel
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