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Bank of Georgia Group PLC on Thursday reported a jump in interim profit, citing the growing economic Georgian economy and lower inflation. The Tbilisi-based lender said profit in the first half of 2023 jumped 38% to ₾709.9 million, about £215.3 million, from ₾516.1 million a year before. Profit before income tax expense and one-off items improved 41% to ₾807.5 million from ₾573.7 million. Operating income rose 38% to ₾1.23 billion from ₾890.6 million. Net interest income grew 39% to ₾767.8 million from ₾552.6 million. The bank cited an improved sentiment which has supported the Georgian lari in the first half of 2023, healthy bank lending, continued fiscal consolidation, falling inflation and strong economic growth in Georgia. It noted that in the first half of 2023, real gross domestic product growth in Georgia was 7.6%, boosted by construction, information & communication, and trade sectors. Annual inflation in Georgia fell to 0.3% in July from 9.8% in December, Bank of Georgia said. The bank declared an interim dividend of ₾3.06, up 65% from ₾1.85 a year prior. Further, its board has approved a ₾62 million share buyback and cancellation programme that is expected to start later this year. Looking ahead, the bank cited ‘sound’ business and investment conditions with low inflation, reduced public debt and foreign exchange buffers. It cited a fall in domestic decline at a slower pace amid ‘strong’ domestic demand and high wage growth. ‘Despite the improved inflation outlook, upside inflation risk remains elevated. In case of a sudden stop of external inflows and GEL depreciation, inflation may resurge and require a tight monetary policy response,’ the bank said. Bank of Georgia shares rose 8.9% to 3,495.00 pence each on Thursday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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