Investor Presentaiton
1Q20 RESULTS HIGHLIGHTS
INCOME STATEMENT HIGHLIGHTS*
17
*
Net foreign currency gain
Net other income
Operating income
Operating expenses
Change
Change
GEL thousands unless otherwise noted
1Q20
1Q19
4Q19
y-o-y
q-o-q
Net interest income
197,080
189,981
3.7%
207,091
-4.8%
Net fee and commission income
40,112
42,180
-4.9%
46,558
-13.8%
30,661
22,985
33.4%
37,177
-17.5%
6,627
3,568
85.7%
18,439
-64.1%
274,480
258,714
(106,008)
Profit from associates
301
Operating income before cost of risk
168,773
(91,927)
188
166,975
6.1%
15.3%
60.1%
309,265
(121,545)
153
-11.2%
-12.8%
1.1%
187,873
Cost of risk
(241,403)
(42,652)
NMF
(14,232)
Net operating (loss) / income before non-
(72,630)
124,323
NMF
173,641
96.7%
-10.2%
NMF
NMF
recurring items
Net non-recurring items
(40,345)
(1,575)
NMF
(1,591)
NMF
(Loss)/profit before income tax and one-
(112,975)
122,748
NMF
172,050
NMF
off costs
Income tax (benefit) / expense
13,030
(10,536)
NMF
(Loss)/profit adjusted for one-off costs
(99,945)
112,212
One-off termination costs of former CEO
and executive management (after tax)
(Loss) / profit
(10,240)
NMF
NMF
(15,515)
156,535
NMF
NMF
(99,945)
101,972
NMF
156,535
NMF
The 1Q19 income statement adjusted profit excludes GEL 10.2mln one-off employee costs (net of income tax) related to former CEO and
executive management termination benefits. The amount is comprised of GEL 7.8mln (gross of income tax) excluded from salaries and other
employee benefits, GEL 4.0mln (gross of income tax) excluded from non-recurring items and GEL 1.6mln tax benefit excluded from income tax
expense. Full IFRS income statement is presented on page 75
1Q20 cost of risk:
The higher cost of credit risk was driven by GEL
220.2mln additional ECL provision, created for
the full economic cycle in both the Retail and
Corporate and Investment Banking segments,
related
adverse macro-economic
environment and expected negative impact on
creditworthiness of borrowers as a result of the
COVID-19 pandemic. See details on page 26.
to
1Q20 net non-recurring items:
The Group recorded a GEL 38.7mln one-off net
loss on modification of financial assets in
relation to the three-month payment holidays
on principal and interest offered to retail
customers in March 2020, in order to reduce the
requirement for customers to physically visit
Bank branches and reduce the risk of COVID-19
virus spread. Interest continues to accrue on the
outstanding principal of the loans and is
distributed over the remaining period of each
loan. The modification terms do not compound
the three-month accrued interest, and have
therefore, this resulted in a one-off net loss on
modification of loans to customers. This type of
restructuring offered to customers reflects the
impact of the Bank's immediate social response
to COVID-19 in Georgia, which management
does not expect to recur.View entire presentation