Excellent update
"First-quarter profits at Bank of Georgia were up by more than a fifth, helped by favourable macro conditions and the recent acquisition of Armenia's Ameriabank.
Adjusted profit came in at 369.1m Georgian lari (£107m), up 22.5% on last year, with net interest income rising 17.7% to GEL437.8m.
Adjusted return on average equity (ROE) rose to 27.7%, up from 26.7% in the fourth quarter but down slightly on the 27.9% recorded the year before - though still well above the bank's medium-term target of 20%.
"You are now seeing the group's balance sheet in its new shape, with assets close to $16bn at the end of March, comprising two leading, top-of-mind universal banks in Georgia and Armenia," said chief executive Archil Gachechiladze in a note to shareholders.
Gachechiladze said "positive dynamics" in the Georgian economy were bolstering results in the first three months of the year, with real GDP growing by 7.8% year-on-year amid low inflation. However, he did caution over geopolitical uncertainty ahead of the upcoming parliamentary elections in October.
In the Georgian Financial Services division, annual loan growth was 22.6% in the first quarter of 2024, with the loan book quality said to be at "very healthy levels", while customer deposits grew by 19.3%.
Over in Armenia, real GDP growth was estimated at 9.2% year-on-year, driving loan book growth of 30% and high profitability with the ROE at 25%.
"Following the acquisition of Ameriabank, we increased the Group's medium-term target for annual loan book growth to c.15%. We maintain our profitability target of a 20%+ ROE, and capital distribution policy of 30-50% of annual profits via dividends and share buyback and cancellation. The teams across the Group are committed to driving strong results and success going forward," Gachechiladze said."
And the share price has continued it's continued fall over a cliff behaviour!
Down 28% in a month.
CGEO down 30%
My best guess...the upcoming elections.