In This Article:
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Net Profit: GEL509 million, up 42.5% year-over-year.
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Return on Equity (ROE): 32%.
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Cost of Risk: 0.2%.
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Cost-Income Ratio: Just shy of 35%.
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Operating Income Growth: 45.9%.
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Net Interest Income Growth: 52.6%.
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Non-Interest Income Growth: 33.3%.
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Loan Portfolio Growth: 21.7% year-over-year, 4.3% quarter-over-quarter.
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Deposit Growth: 7.3% quarter-over-quarter.
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Net Interest Margin: Slightly decreased by 10 basis points.
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Non-Performing Loan (NPL) Ratio: 1.8%.
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Monthly Active Users of Retail Application: Over 1.5 million, growing by 20% year-over-year.
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Digital Consumer Loan Sales: 82%, up 11 points from last year.
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Market Share in Acquiring Business: 57%.
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Net Promoter Score: 67%.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bank of Georgia Group PLC (BDGSF) reported a record profit of GEL509 million for Q3 2024, marking a 42.5% increase compared to the previous year.
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The company achieved a return on equity of 32% with a low cost of risk at 0.2%, indicating strong financial performance.
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The bank was recognized as the best digital bank in the world by Global Finance Magazine, highlighting its digital capabilities.
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Monthly active users of the bank's retail application grew by 20% year-on-year, surpassing 1.5 million users, demonstrating strong customer engagement.
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Operating income increased by 45.9%, with net interest income growing by 52.6% and non-interest income by 33.3%.
Negative Points
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The bank experienced a slight decrease in net fee and commission income quarter-over-quarter in both Georgia and Armenia due to one-off events.
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There was a GEL10 million charge related to a special shopping day promotion, which, while popular, impacted financials negatively.
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The cost-to-income ratio for Armenia was just below 50%, indicating room for improvement in operational efficiency.
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The net interest margin was 10 basis points lower, reflecting pressure on deposit rates despite a declining rate environment.
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The bank's share price experienced volatility due to political uncertainties related to recent elections in Georgia.
Q & A Highlights
Q: Are there any other regions or countries where Bank of Georgia Group PLC would like to expand? A: Archil Gachechiladze, CEO, stated that while they would like to be a top 3 player in various geographies, any expansion would depend on affordability, the ability to add value, and favorable macroeconomic conditions. They are not currently focused on any specific markets for expansion.