OPEX Ratio Alignment & Portfolio Valuation Overview
Listed
Portfolio
BANK OF GEORGIA
BANK OF GEORGIA OVERVIEW
http://bankofgeorgiagroup.com/
GEORGIA
CAPITAL
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•
•
INVESTMENT RATIONALE
The first entity from Georgia to be listed on the premium segment of the Main Market of the
London Stock Exchange (LSE: BGEO) since February 2012.
Market opportunity
Banking sector assets, loans and deposits
CAGR 23.3%
High standards of transparency and governance.
Leading market position¹ in Georgia by assets (37.6%), loans (36.2%), client deposits (37.5%)
and equity (32.7%) as at 30 June 2022.
Growing market: The banking sector's assets growth rate at 23.3% (CAGR over 2003-1H22).
Strongest retail banking franchise: 42.4% market share in deposits of individuals, 39.0% market
share in loans to individuals, as at 30-Jun-22.
Leader in payments and financial mobile app: 52.3% of total POS payments transactions are
executed in BOG POS terminals, number of monthly active digital users increased from 729k to
959k y-o-y in 2Q22.
Sustainable growth combined with strong capital, liquidity and robust profitability, with ROAE
above 20%.
VALUE CREATION POTENTIAL
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Loan book y-o-y growth c.10%.
Regular progressive semi-annual capital distribution with 30-50% dividend/share buyback
payout ratio.
20%+ ROAE.
OWNERSHIP
Georgia Capital owns 19.9%² of Bank of Georgia Group PLC. As long as Georgia Capital's stake
in BoG is greater than 9.9%, it will exercise its voting rights in Bank of Georgia Group in
accordance with the votes cast by all other shareholders on all shareholder votes at any
general meeting.
Banking business key medium-term targets
ROAE
20%+
LOAN BOOK
GROWTH
C.10%
70
60
50
40
30
64.2
60.6
56.9
47.2
43.0 43.7
39.7
38.2
34.6
31.9
30.1
25.2
26.6
37.2 38.3
34.6
22.3
20.6
17.3
18.9
14.4
12.7
16.0
26.2
13.0
7.2
10
0.8
1.3
1.7 0.9 2.5 1.7 4.2 2.7
8.9
8.3
6.0
10.6
23.0
4.6
5.2
6.3
7.7
8.7
10.5
19.8
17.0
14.3
0.7
1.0
1.3 2.1
3.2
0 5.5 6.7 7.6 9.7
11.6
0
2003 2004 2005 2006
2007
2008 2009 2010 2011 2012 2013
Assets, GEL bln
Deposits, GEL bln
20
Source: NBG
2014 2015 2016 2017 2018 2019 2020 2021 2022
Loans, GEL bln
Robust capital management track record
Maintain regular progressive semi-annual dividend payouts: aiming 30-50% dividend/share
buyback payout ratio.
Total dividend of GEL 3.81 per ordinary share paid in respect of the Group's 2021 earnings
(dividend payout ratio of 25%).
On 30 June 2022, the Bank also announced the commencement of the GEL 72.7 million share
buyback and cancellation programme.
Considering the Group's strong performance during the first half of 2022, the Board has decided to
declare an interim dividend of GEL 1.85 per ordinary share in respect of the period ended 30 June
2022, payable to ordinary shareholders on 20 October 2022.
In addition, after the completion of the current GEL 72.7 million share buyback and cancellation
programme, the Board will extend the programme by a further GEL 40 million.
Georgia Capital PLC | 1. Market data based on standalone accounts as published by the NBG www.nbg.gov.ge 2. Following BoG's share buybacks, GCAP's holding in the Bank increased to 20.0% as of 11-Aug-22 from 19.9% as of 30-Jun-22.
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