Tracking Georgia's Economic Recovery
PROFITABILITY COMING BACK TO TARGETED LEVEL
15
3Q20 PERFORMANCE HIGHLIGHTS
Bank of Georgia's performance has been very strong in the third
quarter:
The balance sheet has remained strong with better than
expected levels of growth
Revenue growth has been excellent. Net fee and commission
income increased by 38.4% quarter-on-quarter, with net
interest income growing at 16.6% q-o-q
Net interest margin increased by 60 basis points, to 4.8%, in
3Q20
Asset quality has remained robust. Our lending portfolio has
performed better than expected
Costs have been well-managed with a 2.4% quarter-on-
quarter reduction in operating expenses, following a review
of our variable cost base.
Our capital ratios have remained robust and comfortably
above our minimum regulatory requirements
Delivering superior levels of profitability - annualised return
on average equity was 26.0% in 3Q20
ROAE
29.9%
26.8%
24.5%
26.0%
22.9%
24.7%
21.8%
18.8%
20%
9.9%
1Q19* 2Q19* 3Q19 4Q19 1Q20 2Q20 3Q20
9M19*9M20**
-18.6%
■ROAE
ROAE normalised**
* 1Q19 and 2Q19 ROAE are adjusted for termination costs of former CEO and executive management
** 9M20 ROAE normalised for cost of credit risk (1.2% for RB and 0.8% for CIB), one-off modification
losses incurred on loan restructurings and COVID-19 related other one-off costsView entire presentation