Tracking Georgia's Economic Recovery
3Q20 AND 9M20 RESULTS HIGHLIGHTS
INCOME STATEMENT HIGHLIGHTS*
GEL thousands unless otherwise noted
3Q20
3Q19
Change
y-o-y
Change
2Q20
9M20
9M19
9-0-9
Change
y-o-y
Net interest income
Net fee and commission income
Net foreign currency gain.
Net other income
Operating income
204,030
45,532
19,179
7,750
200,992
48,009
32,233
1.5%
174,936
16.6%
576,047
582,327
-5.2%
32,901
38.4%
118,545
133,456
-1.1%
-11.2%
-40.5%
22,743
-15.7%
72,583
82,186
-11.7%
276,491
3,728
284,962
107.9%
9,081
-14.7%
23,457
3,035
NMF
-3.0%
Operating expenses
(102,612)
(107,917)
Profit from associates
214
194
Operating income before cost of risk
174,093
177,239
Cost of risk
(10,942)
(15,223)
-4.9%
10.3%
-1.8%
-28.1%
239,661
(105,158)
113
134,616
(10,221)
15.4%
-2.4%
89.4%
29.3%
7.1%
790,632
(313,778)
801,004
-1.3%
(298,401)
5.2%
628
477,482
(262,566)
636
503,239
(93,351)
-1.3%
-5.1%
NMF
Net operating income before non-recurring
items
163,151
162,016
0.7%
124,395
31.2%
214,916 409,888
-47.6%
Net non-recurring items
254
(5,019)
NMF
Profit before income tax and one-off costs
163,405
156,997
Income tax expense
(15,051)
Profit adjusted for one-off costs
148,354
(22,697)
134,300
4.1%
-33.7%
10.5%
(1,241)
123,154
(8,470)
114,684
NMF
(41,332)
(9,132)
32.7%
173,584
400,756
77.7%
(10,491)
(43,104)
29.4%
163,093
357,652
NMF
-56.7%
-75.7%
-54.4%
One-off termination costs of the former
CEO and executive management (after tax)
Profit
(14,236)
NMF
148,354
134,300
10.5%
114,684
29.4%
163,093
343,416
-52.5%
The income statement adjusted profit in 9M19 excludes GEL 14.2mln one-off employee costs (net of income tax) related to former CEO and
executive management termination benefits. The amount is comprised of GEL 12.4mln (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 2.2mln tax benefit excluded from income tax
expense. Full IFRS income statement is presented on page 74
16
Cost of risk:
The higher cost of risk in 9M20 was
driven by ECL provisions, created for
the full economic cycle in both the
Retail and Corporate and Investment
Banking segments, in the first quarter
of 2020, on the back of COVID-19
pandemic. See details in 2Q20 and
1H20 results release
Net non-recurring items:
The Group recorded a GEL 38.7mln in
March and GEL 1.0min in April 2020.
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 order to reduce the
requirement for customers to
physically visit Bank branches and
reduce the risk of COVID-19 virus
spread. See details in 2Q20 and 1H20
results releaseView entire presentation