http://bankofgeorgia.ge/en/ir/shareholder-information/analyst-corporate-advis

Bank of Georgia is Georgia’s is the leading bank in Georgia, with more than a third of the market share in Georgia based on total assets, total loans, total deposits and total shareholders’ equity. The bank offers a broad range retail banking, corporate banking, wealth management, brokerage and insurance services to its clients. As of 31 March 2012, the Bank served approximately one million client accounts through one of the largest distribution networks in Georgia, with 164 branches, including full-service flagship branches service centres and smaller-scale outlets, the country’s largest ATM network, comprising 431 ATMs, 104 self service terminals and a full-service remote banking platform and a modern call center.

Selected key elements of the Bank of Georgia’s strategy are to maintain its leading position in the growing and still under-penetrated Georgian banking market, focus on profitable growth, increase the Bank's loan portfolio while maintaining asset quality, and to capture growth and synergies in the Georgian insurance, healthcare and affordable housing sectors.

Bank of Georgia’s UK incorporated holding company Bank of Georgia Holdings plc is listed on the main market of the London Stock Exchange (BGEO:LN). Bank of Georgia remains to be the only Georgian entity to be rated by all three global rating agencies: ‘BB-/B’ from Standard & Poor’s, ‘B1/NP’ (FC) & ‘Ba3/NP’ (LC) from Moody’s and ‘BB-/B’ from Fitch Ratings.

JSC Bank of Georgia’s UK incorporated holding company Bank of Georgia Holdings PLC is listed on the main market of the London Stock Exchange (BGEO LN) since February 2012

Analyst Coverage
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Company Analyst Email Target price
Bank of America Merrill Lynch Olga Veselova olga.veselova@baml.com GBP17.65
Citi Simon Nellis simon.nellis@citi.com GBP15.00
Oriel Securities Vivek Raja vivek.raja@orielsecurities.com 1700p
Seymour Pierce Sue Munden susanmunden@seymourpierce.com 1600p
Numis Securities James Hamilton j.hamilton@numis.com GBP17.03
VTB Capital Mikhail Shlemov mikhail.shlemov@vtbcapital.com GBP16.20
Renaissance Capital Milena Ivanova-Venturini MIvanovaVenturini@rencap.com GBP18.00
Visor Capital Renat Syzdykov res@visocap.com GBP14.79
Concorde Capital Olena Zuikova olz@concorde.com.ua GBP14.69
Canaccord Genuity Gareth Hunt ghunt@canaccordgenuity.com GBP16.10
Panmure Gordon & Co Keith Baird keith.baird@panmure.com GBP22.00

Notice of Results

RNS


RNS Number : 3767E

Bank of Georgia Holdings PLC

09 May 2013






London, 9 May 2013



Bank of Georgia Holdings PLC notice of Q1 2013 Results



Bank of Georgia Holdings PLC will publish its financial results for Q1 2013 at 07:00 London time on Monday, 13th May 2013. The results announcement will be available on Bank of Georgia Holdings's website at www.bgh.co.uk. An investor/analyst conference call, organised by Bank of Georgia Holdings, will be held on Tuesday, 14th May 2013, at 12:30 UK / 13:30 CET / 07:30 U.S Eastern Time. The duration of the call will be 60 minutes and will consist of a 15-minute update and a 45-minute Q&A session.

1st Quarter Results


· Positive operating leverage

o Net interest margin of 7.6%, compared to 7.3% in Q1 2012

o Revenue increased by GEL 13.1 million, or 12.0%, y-o-y, to GEL 123.0 million

o Positive operating leverage maintained, as operating expenses increased at a lower rate than revenue, up 7.1% y-o-y to GEL 53.9 million, translating into operating leverage of 4.9 percentage points

o Cost to Income ratio improved to 43.8% from 45.8%

o Profit before tax of GEL 50.5 million, up 5.7%

o Profit for the period increased to GEL 42.0 million, up 5.6%

o Return on Average Assets (ROAA) was 3.1% (3.5% in Q1 2012) and Return on Average Equity (ROAE) stood at 15.9% (19.0% in Q1 2012)

· Strong balance sheet and capital position maintained as cost of funds continue to decline

o Cost of Client Deposits declined to 6.4% compared to 8.1% in Q1 2012

o Cost of Funds declined to 6.7% compared to 8.3% in Q1 2012

o Net loan book increased by 8.9% y-o-y, while client deposits increased 14.9% y-o-y

§ In US$ terms the net loan book increased by 9.0% reflecting the stable currency position

§ Retail Banking client deposits grew 21.3%, Asset and Wealth Management client deposits grew 25.2%, Corporate Banking deposits increased by a modest 2.2%, reflecting the targeted outflow of high-interest paying deposits

o Cost of Risk improved quarter on quarter, declining to 1.4% from 1.8%, in Q4 2012, up from 1.0% in Q1 2012. Strong funding and liquidity position with a Net Loans to Customer Funds ratio of 104.9%. Net Loans to Customer Funds and Long-Term DFI* Funding ratio was 85.2%. The National Bank of Georgia (NBG) liquidity ratio of 44.1%, compared to 36.0% a year ago and to a 30% minimum requirement by the NBG

o BIS Tier 1 capital adequacy ratio unchanged at 23.2%

o Book Value per Share increased by 15.9% y-o-y to GEL 31.04 (US$18.72/GBP12.32)

o Balance sheet leverage remained low at 4.0 times at 31 March 2013, compared to 3.7 times a year ago and 4.3 times in the previous quarter

· Business highlights

o Retail Banking continues to deliver strong franchise growth, supported by the successful roll-out of the Express Banking strategy in 2012, adding 655 new Express Pay terminals and 244,360 Express cards

o Corporate Banking reduced its cost of deposit to a record low of 5.7%

o Asset and Wealth Management continued to expand its franchise with Assets under Management increasing by 25.2% to GEL 613.8 million in Q1 2013. Since the launch of the Certificate of Deposit (CD) programme in January 2013, the amount of CDs issued to AWM clients reached GEL 41.6 million as of 31 March 2013

o Aldagi BCI, our Insurance and Healthcare business, reported a Q1 2013 profit of GEL 5.2 million, up from GEL 2.7 million in Q1 2012. Affordable Housing pre-sold approximately 50% of the apartments of its second housing project, currently in the construction process





http://www.moneyam.com/action/news/showArticle?id=4592872

Bank of Georgia posts increase in first-quarter revenue and profit
Mon 13 May 2013

BGEO - Bank of Georgia Holdings

Bank of Georgia posts increase in first-quarter revenue and profit LONDON (SHARECAST) - Bank of Georgia saw revenue and pre-tax profits rise in the first quarter driven by growth in retail banking and wealth management.

Profit before tax climbed by 5.7% year-on-year to 50.5m Georgian Lari (GEL) while revenue increased 12% to 13.1 GEL.

The group’s net interest margin came to 7.6%, up from 7.3% the prior year.

The net loan book grew by 8.9% and client deposits jumped 14.9%. Retail banking client deposits rose 21.3%, asset and wealth management client deposits were up 25.2% while corporate banking deposits increased by a modest 2.2%.

Retail Banking continued to deliver strong franchise growth, supported by the successful roll-out of the “Express Banking” strategy in 2012, adding 655 new express pay terminals and 244,360 express cards.

Asset and wealth management expanded its franchise with assets under management increasing by 25.2% to 613.8m GEL.

At the end of the period the balance sheet leverage remained low at 4.0 times, compared to 3.7 times a year ago and 4.3 times in the previous quarter.

"Our first quarter results demonstrate the resilience of the bank's business strategy and benefited from the strength of our retail banking business, good performances from our non-banking subsidiaries and strong cost management throughout the business," said Chief Executive Officer Irakli Gilauri.

"The core fundamentals of our business remain strong. Improving economies of scale, supported by the roll-out of our Express banking strategy over the last few quarters, give us increasing flexibility in the recent slower economic environment as reflected in our continued positive operating leverage."

He said the company was well placed for growth with an improved corporate lending pipeline and economic recovery.

Shares fell 2.65% to 1,693p at 10:38 Monday.

13 May 11:03 Bank of Georgia... Canaccord Genuity Under Review

As of May 10, 2013, the consensus forecast amongst 10 polled investment analysts covering Bank of Georgia Holdings PLC advises investors to purchase equity in the company. This has been the consensus forecast since the sentiment of investment analysts improved on May 10, 2013. The previous consensus forecast advised that Bank of Georgia Holdings PLC would outperform the market.

17 May Cantor... 2,288.00 Buy

13 May Numis 2,101.00 Buy

Consensus recommendation

As of May 14, 2013, the consensus forecast amongst 9 polled investment analysts covering Bank of Georgia Holdings PLC advises that the company will outperform the market. This has been the consensus forecast since the sentiment of investment analysts deteriorated on May 13, 2013. The previous consensus forecast advised investors to purchase equity in Bank of Georgia Holdings PLC.
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Bank of Georgia Holdings PLC (BGEO:LSE) set a new 52-week high during today's trading session when it reached 1,779. Over this period, the share price is up 81.54%.

Seem to have come through the market turbulence so far -

Bank of Georgia Holdings PLC (BGEO:LSE) set a new 52-week high during today's trading session when it reached 1,790. Over this period, the share price is up 83.80%.

A late tip this one, on the sp



MIDAS: Profits boom as bank taps former Soviet state Georgia's growth

By Joanne Hart, Financial Mail On Sunday

PUBLISHED: 22:04, 25 May 2013 | UPDATED: 22:04, 25 May 2013


More than 20 years have passed since Georgia gained independence from the Soviet Union, but the country is still relatively unknown in the West.


However, its largest bank is listed in London and is a member of the FTSE 250. Bank of Georgia is fast-growing and well run, and the shares, at 1770p, are worth looking at. The country had a rough ride in the early years following independence. The Russians did not take kindly to its new status and there were endless battles over energy supplies and disputed territories.


Persistent conflict held back growth, particularly in the 1990s, but since a short war in 2008, relations with Russia have thawed, the country has benefited from increased foreign investment and industries have begun to develop.



New era: Investment is up in proudly independent Georgia


Between 2004 and last year, the economy grew 13 per cent a year on average. Further strong growth is expected over the next decade and Bank of Georgia is ideally placed to profit from this trend.


The company is run by Irakli Gilauri, a native Georgian with a masters in banking from the Cass Business School in London. He prides himself on running an old-fashioned, simple business focused on two main areas – taking deposits and lending money.


The bank has more than a million customers in Georgia, equivalent to just under a third of the total market, and 7,600 business customers, giving a market share of almost 40 per cent. This dominant position has not only enabled it to increase profits consistently over the past few years, but it also means there is significant growth potential.

Unlike the British, the Georgians are not used to borrowing. The mortgage market is undeveloped, few people use credit cards and the consumer loan sector is small. The situation is changing, however, as the country and its people become wealthier.


Gilauri intends to tap into this trend, lending more while ensuring that loans are given only to customers with sound credit histories. The bank also plans to expand into insurance, another burgeoning market.


Companies from the former Soviet Union have not had an unblemished record on the London market. Beleaguered miner Eurasian Natural Resources Corporation from Kazakhstan is a case in point.


Bank of Georgia is different. Only five per cent of the shares are in the hands of the management, the group is chaired by Canadian Neil Janin, a former senior director at top consultancy firm McKinsey, and the company has a premium listing in London, which means that it has to meet higher than usual corporate governance standards.


The group reports results in Georgian lari, but it pays dividends in sterling. Last year, profits grew by 60 per cent to 213 million lari (£86 million) and the dividend was 1.5 lari (61p).


In 2013, profits are expected to grow to 236 million lari and the dividend is forecast to rise to 1.95 lari. Further strong growth is anticipated for 2014 and beyond.


Midas verdict: Bank of Georgia shares are not cheap at 1770p, but the price should rise as the country develops and its banking market expands. The group also offers investors the excitement of an emerging market stock and the safety of a premium listing. Buy.

Dreamcatcher

Brilliant factual analysis of BGEO. I invested here in Jan but eventualy sold to get into Coms which has done even better. However this is a top steady growth share to have as part of a balanced PF and I will certainly buy back in on any weakness.

Through £18 now, although a fair amount of profit taking.

Bank of Georgia Holdings PLC (BGEO:LSE) set a new 52-week high during today's trading session when it reached 1,833. Over this period, the share price is up 78.36%.

Closing in on £19. :-))

Bank of Georgia Holdings PLC (BGEO:LSE) set a new 52-week high during today's trading session when it reached 1,901. Over this period, the share price is up 80.29%.

Bank of Georgia receives financing for housing project
Fri 31 May 2013


Bank of Georgia receives financing for housing project LONDON (SHARECAST) - FTSE 250-listed Bank of Georgia has received a 14m dollar loan for its subsidiary m2Real Estate to develop green housing projects in Georgia.

IFC, a member of the World Bank Group, will provide the funds, including $4m from the IFC-Canada Climate Change Program.

The bank said financing is expected to meet the working capital requirements of the company and contribute to expansion of urban infrastructure in Georgia by building high-quality affordable housing in the form of "green, resource efficient, multi-resident apartment buildings".

"We are very pleased that m2 Real Estate is the first Georgian real estate company to cooperate with IFC to develop a housing project in Tbilisi," said Deputy Chief Executive Officer of Bank of Georgia, Irakli Burdiladze.

"Having successfully worked together with the Development Finance Institutions to finance our existing projects, m2 Real Estate is committed to provide its customers in Georgia with affordable, quality and modern housing. The $14m funding will help m2 Real Estate to realise three new projects in the heart of Tbilisi.”

The plan is to design a building to increase efficient use of energy, water, and materials, while reducing negative impact on health and environment.

Shares fell 0.21% to 1,864p at 09:29 Friday.

Bank of Georgia further cuts deposit rates

RNS


RNS Number : 1923G

Bank of Georgia Holdings PLC

04 June 2013


London, 4 June 2013

Bank of Georgia further cuts deposit rates


Bank of Georgia Holdings PLC ("BGH"), the holding company of JSC Bank of Georgia ("the Bank"), Georgia's leading bank announces that the Bank has decreased interest rates on its foreign currency (predominantly US$ denominated) and Georgian Lari (GEL) retail, corporate and wealth management term deposits, in line with the bank's strategy and general trend across the Georgian economy. Interest rates have been reduced by up to 150 bps on one year US$ denominated deposits. Since the year-end 2012, the interest rates on US$ denominated deposits have been reduced by 300 bps. The contractual rate on foreign currency 12 month deposit were brought down to 5.0%, the lowest ever rate offered by a Georgian bank. Interest rates on the deposits with different maturities have been adjusted accordingly.



"We are delighted that the strength of our franchise and strong liquidity levels enable us to make further reductions on client deposits on the back of continuous deposit inflows since the year-end. As a result of active liability management we have reached a record low cost of deposits in Q1 2013 and the subsequent interest rate cuts are expected to further improve our cost of funds.

The interest rate cuts also reflect our efforts to support the de-dollarisation of our balance sheet. The reduced rates on the US$ denominated deposits make GEL denominated deposits more attractive for our customers. At the same time, we expect de-dollarisation of the asset side of the balance sheet as we seek to capitalise on the recently introduced GEL lending programme by the National Bank of Georgia (the NBG), which involves a repo transaction with the NBG ultimately providing our clients with floating rate loans denominated in the national currency linked to the NBG's refinancing rate," commented Irakli Gilauri, Chief Executive Officer.

Bank of Georgia signs financing package with EBRD
Wed 05 Jun 2013

BGEO - Bank of Georgia Holdings

Bank of Georgia signs financing package with EBRD LONDON (SHARECAST) - FTSE 250-listed Bank of Georgia has signed a loan agreement with the European Bank for Reconstruction and Development (EBRD) for 10.0m dollars under the EBRD's Caucasus Energy Efficiency Programme (CEEP).

The loan has a maturity of five years and Bank of Georgia, the holding company of JSC Bank of Georgia, said it would be used for on-lending to private sector entities with a view to finance energy efficiency and rational energy utilization investments.

The bank said that technical cooperation and grant support for the operation had been provided by the Austrian Government and the European Union through the Neighbourhood Investment Facility and would fund technical assistance and incentives to end-borrowers.

EBRD would also facilitate the launch of International Factoring, by providing a €10.0m facility under its Trade Facilitation Programme (TFP) to the bank.

Irakli Gilauri, Chief Executive Officer of Bank of Georgia, said: "As the first Georgian bank to introduce factoring product to the Georgian market in 2007, I am very pleased that the launch of International Factoring within the EBRD's TFP will allow Bank of Georgia to expand the range of the products offered to its corporate clients and will contribute to the expansion of international trade operations of the bank".

Bruno Balvanera, EBRD Director for Caucasus, Moldova and Belarus, commented: "EBRD is delighted to work with its long-standing partner bank to continue to finance the real economy, particularly, the energy efficiency lending."

Bank of Georgia’s share price was down 1.72% to 1,827p at 11:29 on Wednesday.