Bank of Georgia upbeat after jump in full-year income

Bank of Georgia Group posted a jump in full-year income on Friday, boosted by strong lending and favourable macroeconomic conditions.

Operating income rose 26.4% in the year to 31 December, to 2.53bn Georgian Lari (£750m). Within that, net foreign currency gain fell 21.5%, but net fee and commission income rose 36.8% and net interest income jumped 36.6%.

Pre-tax profits before one-off items were up 31.4%, at GEL1.63bn. Once adjusted for exceptional items, it eased 3.2% to GEL1.40bn.

Archil Gachechiladze, chief executive, said: "2023 was another successful year, during which we continued to deliver on our strategic priorities."

He added that the company’s ongoing focus on customer needs and product quality, coupled with the favourable macroeconomic conditions, had boosted profits.

Looking to the current year, Gachechiladze said: "The group remains well-positioned to capture the benefits of strong economic activity in the region.

"Georgia’s European Union candidacy status, a significant milestone achieved in December, which has defined the country’s geopolitical vector, is expect to support ongoing investments in the Georgian economy.

"We expect both Georgian and Armenia real GDPs to growth by more than 5% in 2024 and we remain focused on our strategic priorities."

In February, the FTSE 250 lender announced plans to enter the Armenian market through the acquisition of Ameriabank, the country’s largest lender and second largest deposit taker, in a $306.6m deal.

Gachechiladze said he expected the deal, which was approved by shareholders earlier in the week, to be "immediately" earnings enhancing.

"I believe this acquisition is a great opportunity for the group to increase scale and unlock further growth," he added.