Georgia Capital Portfolio Overview
GEORGIA
CAPITAL
Listed
investments
Bank of Georgia (BOG) Overview
http://bankofgeorgiagroup.com/
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
■ High standards of transparency and governance
Leading market position in Georgia by assets (34.3%), loans (34.6%), client deposits (33.9%) and equity
(29.2%)
Market with stable growth perspectives
■ Strong brand name recognition and retail banking franchise
Sustainable growth combined with strong capital, liquidity and robust profitability
Outstanding ROAE performance
■ Dividend per share growing at 34.3% CAGR
Value creation potential
■Loan book growth c.15%
"
Maintenance of dividend pay-out ratio within 25-40%
BANK OF GEORGIA
Market opportunity
Banking sector assets, loans and deposits
25.4% CAGR
50
39.7
40
34.6
30.1
26.6
30
25.2
20.6
22.3
17.3
18.9
20
12.7
14.4
16.0
13.0
1.3
1.7
10
2.5
4.2
0.8
0.9
1.71.3
2.3.1
7.2.6
8.9
6.0
8.3 10.6
5.2 $6.3
7.7
8.7
10.5
19.8 23.0
3.2
3.6
4.0
5.5
6.7
7.6 9.7 11.6 14.3
17.0
0.7
1.0
0
Source: NBG
Financial metrics (GEL millions)
Assets, GEL bn
Loans, GEL bn
Deposits, GEL bn
GEL 10.3 billion loan portfolio breakdown (2) | 30 June 2019
Corporate loans,
Annual
Semiannual
2015
ROAE
NIM
21.9%
2016
22.2%
2017
2018
1H18
1H19
change
25.2%
26.1%4
GEL 3,360.5
million, 32.8%
25.7%
23.7%
-2.0ppt
7.7%
7.4%
7.3%
6.5%
7.0%
5.6%
-1.4ppt
NPL coverage
83.4%
86.7%
92.7%
90.5%
99.4%
88.1%
-11.3ppt
Retail loans,
GEL 6,900.5
million, 67.2%
Loan portfolio
5,367
6,682
7,741
9,398
8,109
10,580
30.5%
Retail banking growth
35.3%
39.5%
29.3%
24.2%
6.7%
8.0% +1.3ppt
Dividend record³ (GEL m)
Cost/income
35.5%
37.7%
37.7%
36.7%
37.0%
36.9%
-0.1ppt
Payout
10%
15%
30% 36%
33%
34% 32%
30%
30%
ratio:
Selected operating metrics
150
1H18
1H19
Dividend per share CAGR (GEL) - 34.3%
2.44
2.55
3.00
2.08
1.92
1.60
1.68
100
Retail clients (millions)
2,382
2,475
1.20
2.00
0.56
122
124
50
Digital transactions (millions)
77.8
86.5
0.24
98
102
1.00
72
80
9
51
0
24
Volume of internet bank/mobile bank transactions (GEL millions)
1,604
2,863
0.00
2010
2011
2012
2013
2014
2015
2016
2017
2018
(1)
(2)
Market data based on standalone accounts as published by the National Bank of Georgia (NBG) as of 30 June 2019 www.nbg.gov.ge
Excluding BNB.
Total dividend paid for the year
Dividend per share
(3)
Actual dividend per share information for 2010-2016 years are adjusted for 19.9% Bog share issuance.
(4)
Adjusted for demerger related expenses and one-off impact of re-measurement of deferred tax balances.
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