DISCUSSION OF RESULTS

The Group's business is composed of three segments. (1) Retail Banking operations in Georgia principally provide consumer loans, mortgage loans, overdrafts, credit cards and other credit facilities, funds transfers and settlement services, and the handling of customers' deposits for both individuals and legal entities. Retail Banking targets mass retail, mass affluent and high-net-worth clients segments, together with small and medium-sized enterprises and micro businesses. (2) Corporate and Investment Banking comprises Corporate Banking and Investment Management operations in Georgia. Corporate Banking principally provides loans and other credit facilities, funds transfers and settlement services, trade finance services, documentary operations support and the handling of saving and term deposits for corporate and institutional customers. The Investment Management business principally provides brokerage services through Galt & Taggart. (3) BNB, comprising JSC Belarusky Narodny Bank, principally provides retail and corporate banking services to clients in Belarus.

OPERATING INCOME
GEL thousands, unless otherwise noted	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
Interest income	509,563	420,398	21.2%	466,265	9.3%		1,851,044	1,595,427	16.0%
Interest expense	(239,492)	(218,802)	9.5%	(222,976)	7.4%		(897,103)	(817,785)	9.7%
Net interest income	270,071	201,596	34.0%	243,289	11.0%		953,941	777,642	22.7%
Fee and commission income	113,664	77,382	46.9%	105,992	7.2%		390,829	274,458	42.4%
Fee and commission expense	(49,564)	(30,424)	62.9%	(43,516)	13.9%		(158,398)	(108,955)	45.4%
Net fee and commission income	64,100	46,958	36.5%	62,476	2.6%		232,431	165,503	40.4%
Net foreign currency gain	34,495	26,457	30.4%	33,346	3.4%		109,099	99,040	10.2%
Net other income	10,579	25,016	-57.7%	8,706	21.5%		70,206	48,474	44.8%
Operating income	379,245	300,027	26.4%	347,817	9.0%		1,365,677	1,090,659	25.2%
Net interest margin	5.3%	4.4%		5.0%			4.9%	4.6%
Average interest earning assets	20,257,844	18,211,749	11.2%	19,349,551	4.7%		19,510,848	16,870,166	15.7%
Average interest bearing liabilities	19,696,541	18,732,227	5.1%	18,849,526	4.5%		19,409,266	17,292,171	12.2%
Average net loans and finance lease receivables	15,825,253	13,848,691	14.3%	15,160,944	4.4%		15,057,524	12,966,440	16.1%
Average net loans and finance lease receivables, GEL	7,155,129	5,603,018	27.7%	6,705,860	6.7%		6,493,966	5,193,750	25.0%
Average net loans and finance lease receivables, FC	8,670,124	8,245,673	5.1%	8,455,084	2.5%		8,563,558	7,772,690	10.2%
Average client deposits and notes	13,717,739	13,272,191	3.4%	13,507,002	1.6%		13,766,622	11,773,198	16.9%
Average client deposits and notes, GEL	5,270,841	4,943,412	6.6%	5,295,351	-0.5%		5,290,089	4,104,920	28.9%
Average client deposits and notes, FC	8,446,898	8,328,779	1.4%	8,211,651	2.9%		8,476,533	7,668,278	10.5%
Average liquid assets	6,023,591	6,460,344	-6.8%	5,673,999	6.2%		6,283,441	5,691,417	10.4%
Average liquid assets, GEL	2,811,276	2,661,240	5.6%	2,384,419	17.9%		2,651,356	2,401,482	10.4%
Average liquid assets, FC	3,212,315	3,799,104	-15.4%	3,289,580	-2.3%		3,632,085	3,289,935	10.4%
Liquid assets yield	4.0%	3.0%		3.6%			3.5%	3.4%
Liquid assets yield, GEL	8.3%	7.1%		8.1%			7.9%	7.6%
Liquid assets yield, FC	0.1%	0.0%		0.1%			0.1%	0.3%
Loan yield	11.0%	10.4%		10.6%			10.6%	10.5%
Loan yield, GEL	15.5%	15.2%		15.2%			15.1%	15.3%
Loan yield, FC	7.2%	7.1%		6.9%			7.1%	7.4%
Cost of funds	4.8%	4.6%		4.7%			4.6%	4.7%
Cost of funds, GEL	8.9%	7.7%		8.5%			8.2%	7.9%
Cost of funds, FC	2.2%	2.9%		2.4%			2.5%	3.0%
Cost / income	39.8%	39.6%		36.8%			37.2%	39.7%

Performance highlights

§ The Group generated excellent operating income of GEL 379.2mln in 4Q21 (up 26.4% y-o-y and up 9.0% q-o-q), ending 2021 with operating income of GEL 1,365.7mln (up 25.2% y-o-y). The increase in operating income in all periods presented was primarily driven by strong net interest income (up 34.0% y-o-y and up 11.0% q-o-q in 4Q21, and up 22.7% y-o-y in 2021) and net fee and commission income (up 36.5% y-o-y and up 2.6% q-o-q in 4Q21, and up 40.4% y-o-y in 2021) generation on the back of a strong economic rebound in 2021. The y-o-y increase both in 4Q21 and in 2021 was also supported by strong net foreign currency gains (up 30.4% y-o-y and up 3.4% q-o-q in 4Q21, and up 10.2% y-o-y in 2021)

§ Our NIM was 5.3% in 4Q21 (up 90bps y-o-y and up 30bps q-o-q) and 4.9% in 2021 (up 30bps y-o-y). The increase in NIM during all periods presented was primarily driven by an increase in loan yields (up 60bps y-o-y and up 40bps q-o-q in 4Q21, and up 10bps y-o-y in 2021) as well as the successful deployment of some excess liquidity during the second and third quarters of 2021. The impact of the GEL 500 million local currency bonds repayment in June 2020 also contributed to the y-o-y NIM increase in 2021

§ Liquid assets yield. Liquid assets yield was 4.0% in 4Q21 (up 100bps y-o-y and up 40bps q-o-q) and 3.5% in 2021 (up 10bps y-o-y). The local currency denominated liquid assets yield movement (up 120bps y-o-y and up 20bps q-o-q in 4Q21, and up 30bps y-o-y in 2021) directly reflected the NBG's monetary policy rate changes (the NBG decreased monetary policy rate by a cumulative of 100bps since April 2020, but increased the policy rate four times by a cumulative of 250bps during 2021). As for the foreign currency denominated liquid assets yield, a 20bps y-o-y decline in 2021 largely reflected the cut in the US Fed rate in March 2020 (the NBG accrues interest rate on banks' US Dollar obligatory reserves at the US Fed rate upper band minus 50bps)

§ Cost of funds was 4.8% in the fourth quarter of 2021 (up 20bps y-o-y and up 10bps q-o-q) and 4.6% in 2021 (down 10bps y-o-y). Local currency denominated cost of funds was up 120bps y-o-y and up 40bps q-o-q in 4Q21, mirroring the NBG's monetary policy rate changes. On a full year basis, the 30bps y-o-y increase in local currency denominated cost of funds in 2021 reflected the NBG's monetary policy rate changes, partially offset by the impact of the repayment of the GEL 500mln local currency bonds due at the beginning of June 2020. The cost of foreign currency denominated funds was down 70bps y-o-y and down 20bps q-o-q in 4Q21, and down 50bps y-o-y in 2021, largely driven by the Libor rate decline, as well as the Bank's attracting some borrowings from credit institutions at lower rates in 2021

§ Net fee and commission income amounted to GEL 64.1mln in 4Q21 (up 36.5% y-o-y and up 2.6% q-o-q) and GEL 232.4mln in 2021 (up 40.4% y-o-y). The outstanding performance was primarily driven by a strong fee and commission income generation in our settlement operations. Furthermore, increased fees generated from guarantees and letters of credit issued by the Corporate and Investment Banking business and fees generated from currency conversion operations also contributed to a higher fee income on a y-o-y basis both in 4Q21 and full year 2021

§ Net foreign currency gain was up 30.4% y-o-y and up 3.4% q-o-q in 4Q21, and up 10.2% y-o-y in 2021. The movement in net foreign currency gain directly reflected the level of currency volatility and client-driven flows during the periods presented

§ Net other income during 2021 mainly comprised net gains from the sale of real estate properties and investment securities, primarily generated during the first half of 2021

NET OPERATING INCOME BEFORE NON-RECURRING ITEMS; COST OF RISK; PROFIT
GEL thousands, unless otherwise noted	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
Salaries and other employee benefits	(80,501)	(64,243)	25.3%	(71,551)	12.5%		(281,087)	(239,607)	17.3%
Administrative expenses	(43,552)	(31,617)	37.7%	(32,342)	34.7%		(129,524)	(105,531)	22.7%
Depreciation, amortisation and impairment	(25,256)	(21,283)	18.7%	(23,448)	7.7%		(93,618)	(82,937)	12.9%
Other operating expenses	(1,463)	(1,714)	-14.6%	(661)	121.3%		(3,723)	(4,560)	-18.4%
Operating expenses	(150,772)	(118,857)	26.9%	(128,002)	17.8%		(507,952)	(432,635)	17.4%
Profit / (loss) from associate	128	154	-16.9%	223	-42.6%		(3,781)	782	NMF
Operating income before cost of risk	228,601	181,324	26.1%	220,038	3.9%		853,944	658,806	29.6%
Expected credit loss on loans to customers	9,836	(14,579)	NMF	(8,192)	NMF		(1,452)	(236,983)	-99.4%
Expected credit loss on finance lease receivables	(3,406)	(381)	NMF	70	NMF		(4,950)	(8,025)	-38.3%
Other expected credit loss and impairment charge on other assets and provisions	(14,174)	(23,471)	-39.6%	(5,462)	159.5%		(45,010)	(55,989)	-19.6%
Cost of risk	(7,744)	(38,431)	-79.8%	(13,584)	-43.0%		(51,412)	(300,997)	-82.9%
Net operating income before non-recurring items	220,857	142,893	54.6%	206,454	7.0%		802,532	357,809	124.3%
Net non-recurring items	(62)	21	NMF	(479)	-87.1%		(590)	(41,311)	-98.6%
Profit before income tax	220,795	142,914	54.5%	205,975	7.2%		801,942	316,498	153.4%
Income tax expense	(20,076)	(11,065)	81.4%	(20,671)	-2.9%		(74,824)	(21,555)	NMF
Profit	200,719	131,849	52.2%	185,304	8.3%		727,118	294,943	146.5%

§ Operating expenses. In the second quarter of 2020, we initiated cost optimisation measures, the impact of which has been reflected in subsequent quarters. Our cost to income ratio was 39.8% in 4Q21, slightly up from 39.6% in 4Q20 and up from 36.8% in 3Q21, mainly driven by strong business growth, increased investments in IT-related resources and digitalisation, and increased marketing activity. For full year 2021, cost to income ratio improved to 37.2%, from 39.7% in 2020

§ Cost of risk in 4Q21 and 2021 reflected a combination of the following factors:

§ Cost of credit risk ratio was a net gain of 0.2% in 4Q21 (cost of credit risk ratio of 0.4% in 4Q20 and 0.2% in 3Q21) and 0.0% in 2021 (1.8% in 2020). The 1.8% cost of credit risk ratio in 2020 reflected the IFRS 9 ECL reserve builds, created for the full economic cycle in the first quarter of 2020, related to the deterioration of the macroeconomic environment and expected creditworthiness of borrowers on the back of the COVID-19 pandemic. The Group continuously revisits the assumptions to reflect better visibility and up-to-date macroeconomic forecasts, as well as in-depth analyses of the financial standing and the creditworthiness of borrowers. As a result, the Group recorded additional ECL provisions on loans to customers and finance lease receivables in the amount of GEL 18.1mln for the Retail Banking business, and a net ECL reversal of GEL 23.8mln for the Corporate and Investment Banking segment in 4Q21. Given that there is still high uncertainty regarding the duration and the impact of the COVID-19 pandemic, we continue to monitor new developments

§ Expected credit loss and impairment charge on other assets and provisions in 4Q21 was mainly related to impairment charge on other assets, while for full year 2021 it mainly comprised expenses accrued for certain legal fees and impairment charges on other assets, partially offset by an ECL reversal on guarantees issued

§ Quality of the loan book. The decline in the NPLs to gross loans ratio and the increase in NPL coverage ratios at 31 December 2021, were mainly driven by more customers, especially in the Retail Banking segment, returning to regular repayments amid increased economic activity, following the pandemic-related grace periods:

 

GEL thousands, unless otherwise noted	Dec-21	Dec-20	Change y-o-y	Sep-21	Change q-o-q
NON-PERFORMING LOANS
NPLs	394,720	545,837	-27.7%	413,626	-4.6%
NPLs to gross loans	2.4%	3.7%		2.6%
NPLs to gross loans, RB	1.8%	3.5%		2.2%
NPLs to gross loans, CIB	3.6%	4.0%		3.2%
NPL coverage ratio	95.5%	76.3%		90.9%
NPL coverage ratio adjusted for the discounted value of collateral	147.7%	128.8%		140.9%

§ BNB - the Group's banking subsidiary in Belarus - remains strongly capitalised, with capital adequacy ratios well above the requirements of the National Bank of the Republic of Belarus ("NBRB"). At 31 December 2021, total capital adequacy ratio was 15.5%, well above the 12.5% minimum requirement, while Tier I capital adequacy ratio was 10.0%, again above the NBRB's 7.0% minimum requirement. ROAE was 11.5% in 4Q21 (19.1% in 4Q20 and 7.9% in 3Q21) and 10.6% in 2021 (8.4% in 2020). For financial results highlights of BNB, see page 22

§ Net non-recurring items in 2020 primarily comprised GEL 39.7mln one-off net losses on the modification of financial assets recorded mostly in March 2020, related to the three-month payment holidays on principal and interest payments offered to our retail banking clients to reduce the need to physically visit the branches and thus reduce the spread of the virus. In addition, in 1Q20, the Bank incurred GEL 1.2mln one-off costs to donate 20,000 COVID-19 laboratory tests, 10 ventilators, 50,000 face masks and 60,000 gloves to the Ministry of Health of Georgia. These costs were classified as non-recurring items

§ Overall, the Group recorded a profit of GEL 200.7mln in 4Q21 (up 52.2% y-o-y and up 8.3% q-o-q) and GEL 727.1mln in 2021 (up 146.5% y-o-y). The Group's ROAE was 26.4% in 4Q21 (21.3% in 4Q20 and 25.7% in 3Q21) and 25.8% in 2021 (13.0% in 2020, reflecting the COVID-19 pandemic impact)

BALANCE SHEET HIGHLIGHTS
GEL thousands, unless otherwise noted	Dec-21	Dec-20	Change y-o-y	Sep-21	Change q-o-q
Liquid assets	6,047,616	6,531,357	-7.4%	5,461,809	10.7%
Liquid assets, GEL	2,819,195	2,694,091	4.6%	2,420,845	16.5%
Liquid assets, FC	3,228,421	3,837,266	-15.9%	3,040,964	6.2%
Net loans and finance lease receivables	16,168,973	14,192,078	13.9%	15,579,496	3.8%
Net loans and finance lease receivables, GEL	7,348,911	5,803,576	26.6%	6,968,809	5.5%
Net loans and finance lease receivables, FC	8,820,062	8,388,502	5.1%	8,610,687	2.4%
Client deposits and notes	14,038,002	14,020,209	0.1%	13,312,965	5.4%
Amounts owed to credit institutions	4,318,445	3,335,966	29.5%	4,037,523	7.0%
Borrowings from DFIs	2,135,301	1,848,473	15.5%	1,940,614	10.0%
Short-term loans from central banks	1,413,333	590,293	139.4%	1,378,000	2.6%
Loans and deposits from commercial banks	769,811	897,200	-14.2%	718,909	7.1%
Debt securities issued	1,518,685	1,585,545	-4.2%	1,537,593	-1.2%
LIQUIDITY AND CAPITAL ADEQUACY RATIOS
Net loans / client deposits and notes	115.2%	101.2%		117.0%
Net loans / client deposits and notes + DFIs	100.0%	89.4%		102.1%
Liquid assets / total assets	25.8%	29.6%		24.6%
Liquid assets / total liabilities	29.7%	33.5%		28.3%
NBG liquidity coverage ratio	124.0%	138.6%		112.7%
NBG (Basel III) CET1 capital adequacy ratio	13.2%	10.4%		12.8%
NBG (Basel III) Tier I capital adequacy ratio	15.0%	12.4%		14.6%
NBG (Basel III) Total capital adequacy ratio	19.3%	17.6%		19.2%

Our balance sheet remains highly liquid (NBG liquidity coverage ratio of 124.0%) and strongly capitalised (NBG Basel III CET1 capital adequacy ratio of 13.2%) with a well-diversified funding base (client deposits and notes to total liabilities of 69.0%) at 31 December 2021.

§ Liquidity. Liquid assets stood at GEL 6,047.6mln at 31 December 2021, down 7.4% y-o-y and up 10.7% q-o-q. The notable decrease over the year was mainly due to the Bank's having deployed some excess liquidity in the second and third quarters of 2021, after maintaining excess liquidity throughout 2020 for risk mitigation purposes amid the COVID-19 crisis. As a result, the NBG Liquidity coverage ratio was 124.0% at 31 December 2021, down from 138.6% at 31 December 2020 and up from 112.7% at 30 September 2021, comfortably above the 100% minimum requirement level

§ Loan book. Our net loan book and finance lease receivables reached GEL 16,169.0mln at 31 December 2021, up 13.9% y-o-y and up 3.8% q-o-q. Growth on a constant-currency basis was 19.8% y-o-y and 4.9% q-o-q. At 31 December 2021, the retail loan book represented 67.0% of the total loan portfolio (65.4% at 31 December 2020 and 66.0% 30 September 2021). Local currency portfolio experienced strong y-o-y and q-o-q growth of 26.6% and 5.5%, respectively, partly driven by the NBG's de-dollarisation initiatives and our goal to increase the share of local currency loans in our portfolio

§ Net loans to customer funds and Development Finance Institutions (DFI) ratio. Our net loans to customer funds and DFI ratio, which is closely monitored by the management, stood at 100.0% at 31 December 2021, compared with 89.4% at 31 December 2020 and 102.1% at 30 September 2021

§ Strong capital position. As a result of our robust operating performance and strong internal capital generation, the Bank's Basel III Common Equity Tier 1, Tier 1 and Total capital adequacy ratios stood at 13.2%, 15.0% and 19.3%, respectively, at 31 December 2021, all comfortably above the minimum required levels of 11.5%, 13.6% and 17.7%, respectively. The movement in capital adequacy ratios in 4Q21 and the potential impact of a 10% devaluation of the local currency on different levels of capital is as follows:

	30 September 2021	4Q21 profit	Business growth	GEL appreciation	31 December 2021		Potential impact of a 10% GEL devaluation
CET1 capital adequacy ratio	12.8%	1.0%	-0.7%	0.1%	13.2%		-0.8%
Tier I capital adequacy ratio	14.6%	1.0%	-0.7%	0.1%	15.0%		-0.7%
Total capital adequacy ratio	19.2%	1.0%	-1.0%	0.1%	19.3%		-0.6%

The Bank's minimum capital requirements, reflecting the full loading of Basel III capital requirements, to be completed in 2023, which remain subject to ongoing annual regulatory reviews, are currently expected to be as follows:

Expected minimum capital requirements for 2022-2023

 

	Dec-22	Dec-23
CET1 capital requirement	11.9%	12.2%
Tier 1 capital requirement	14.2%	14.6%
Total capital requirement	17.8%	17.8%

Capital distribution. In August 2021, the Board of Directors declared an interim dividend of GEL 1.48 per share in respect of the period ended 30 June 2021 to ordinary shareholders of Bank of Georgia Group PLC. The interim dividend was paid on 5 November 2021. The Board also announced that, as a result of higher than expected levels of lending growth in the near term, it expected the dividend/share buyback payout ratio in respect of 2021 and 2022 to be approximately 35-40%. The Group's capital and funding position remains strong. Our capital ratios are comfortably above the minimum requirements, and we continue to generate high levels of internal capital as a result of the Bank's high return on average equity, combined with strong asset quality in our lending portfolios. At the 2022 Annual General Meeting, the Board intends to recommend a final dividend for 2021 of GEL 2.33 per share payable in British Pounds Sterling at the prevailing rate. This will make a total dividend paid in respect of the Group's 2021 earnings of GEL 3.81 per share. In addition, the Board aims to implement a share buyback and cancellation programme, in line with the Group's dividend and capital distribution policy

Dividend and capital distribution policy. Bank of Georgia Group PLC's capital distribution policy incorporates a progressive ordinary cash dividend, supplemented by additional share repurchases as and when appropriate. It is the Board's overall capital distribution policy to target a dividend/share buyback payout ratio in the range of 30-50% of annual profits. The Board expects to ensure healthy capital ratios, above minimum regulatory requirements, and take into consideration expected future capital requirements, including the full loading of Basel III requirements on our minimum capital ratios, ongoing regulatory capital developments and the growth opportunities available to Bank of Georgia

Dividends will be paid on a semi-annual basis, with the interim dividend expected to be paid in cash and represent, under normal circumstances, around 40% of the total dividend for the year

 

 

 

 

 

 

 

 

DISCUSSION OF SEGMENT RESULTS

RETAIL BANKING (RB)²    

 

Retail Banking provides consumer loans, mortgage loans, overdrafts, credit card facilities and other credit facilities as well as funds transfers and settlement services and the handling of customer deposits for both individuals and legal entities (SMEs and micro businesses only). RB is represented by the following sub-segments: (1) mass retail segment, (2) mass affluent segment (through our SOLO brand) and high-net-worth individuals (through our Wealth Management private banking services in Georgia and internationally through representative offices in London and Istanbul, and a subsidiary in Tel Aviv), and (3) SMEs and micro businesses - MSMEs.

GEL thousands, unless otherwise noted	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
INCOME STATEMENT HIGHLIGHTS[2]
Net interest income	161,167	130,418	23.6%	147,155	9.5%		582,531	497,155	17.2%
Net fee and commission income	50,116	34,976	43.3%	46,685	7.3%		178,928	121,973	46.7%
Net foreign currency gain	17,234	14,057	22.6%	18,805	-8.4%		58,139	59,677	-2.6%
Net other income	3,527	13,987	-74.8%	3,477	1.4%		25,869	24,755	4.5%
Operating income	232,044	193,438	20.0%	216,122	7.4%		845,467	703,560	20.2%
Salaries and other employee benefits	(59,875)	(47,363)	26.4%	(52,888)	13.2%		(205,055)	(176,243)	16.3%
Administrative expenses	(33,965)	(24,942)	36.2%	(25,846)	31.4%		(102,138)	(81,749)	24.9%
Depreciation, amortisation and impairment	(21,622)	(18,122)	19.3%	(19,925)	8.5%		(80,127)	(70,151)	14.2%
Other operating expenses	(1,079)	(1,112)	-3.0%	(435)	148.0%		(2,595)	(2,886)	-10.1%
Operating expenses	(116,541)	(91,539)	27.3%	(99,094)	17.6%		(389,915)	(331,029)	17.8%
Profit / (loss) from associate	128	154	-16.9%	223	-42.6%		(3,781)	782	NMF
Operating income before cost of risk	115,631	102,053	13.3%	117,251	-1.4%		451,771	373,313	21.0%
Cost of risk	(20,003)	(19,046)	5.0%	(10,587)	88.9%		(72,351)	(183,160)	-60.5%
Net operating income before non-recurring items	95,628	83,007	15.2%	106,664	-10.3%		379,420	190,153	99.5%
Net non-recurring items	(11)	149	NMF	(338)	-96.7%		20	(39,898)	NMF
Profit before income tax expense	95,617	83,156	15.0%	106,326	-10.1%		379,440	150,255	152.5%
Income tax expense	(7,897)	(5,340)	47.9%	(10,375)	-23.9%		(32,956)	(6,137)	NMF
Profit	87,720	77,816	12.7%	95,951	-8.6%		346,484	144,118	140.4%
BALANCE SHEET HIGHLIGHTS2
Net loans	10,349,776	8,767,685	18.0%	9,791,060	5.7%		10,349,776	8,767,685	18.0%
Net loans, GEL	6,201,310	4,812,246	28.9%	5,847,362	6.1%		6,201,310	4,812,246	28.9%
Net loans, FC	4,148,466	3,955,439	4.9%	3,943,698	5.2%		4,148,466	3,955,439	4.9%
Client deposits	9,557,682	8,608,488	11.0%	9,175,451	4.2%		9,557,682	8,608,488	11.0%
Client deposits, GEL	2,904,521	2,314,180	25.5%	2,607,683	11.4%		2,904,521	2,314,180	25.5%
Client deposits, FC	6,653,161	6,294,308	5.7%	6,567,768	1.3%		6,653,161	6,294,308	5.7%
of which:
Time deposits	5,462,952	5,098,692	7.1%	5,279,621	3.5%		5,462,952	5,098,692	7.1%
Time deposits, GEL	1,534,172	1,089,220	40.9%	1,388,413	10.5%		1,534,172	1,089,220	40.9%
Time deposits, FC	3,928,780	4,009,472	-2.0%	3,891,208	1.0%		3,928,780	4,009,472	-2.0%
Current accounts and demand deposits	4,094,730	3,509,796	16.7%	3,895,830	5.1%		4,094,730	3,509,796	16.7%
Current accounts and demand deposits, GEL	1,370,349	1,224,960	11.9%	1,219,270	12.4%		1,370,349	1,224,960	11.9%
Current accounts and demand deposits, FC	2,724,381	2,284,836	19.2%	2,676,560	1.8%		2,724,381	2,284,836	19.2%
Assets under management	1,503,529	1,611,826	-6.7%	1,522,005	-1.2%		1,503,529	1,611,826	-6.7%
KEY RATIOS2
ROAE	19.7%	22.1%		23.4%			21.4%	11.0%
Net interest margin	4.4%	4.0%		4.2%			4.2%	4.1%
Cost of credit risk ratio	0.7%	0.6%		0.4%			0.7%	2.1%
Cost of funds	6.0%	5.4%		5.6%			5.6%	5.5%
Loan yield	11.7%	11.1%		11.4%			11.3%	11.4%
Loan yield, GEL	15.6%	15.4%		15.3%			15.3%	15.4%
Loan yield, FC	5.8%	6.0%		5.7%			5.9%	6.5%
Cost of deposits	2.5%	2.9%		2.5%			2.6%	2.9%
Cost of deposits, GEL	6.8%	6.0%		6.3%			6.2%	6.2%
Cost of deposits, FC	0.8%	1.8%		1.1%			1.2%	1.8%
Cost of time deposits	3.9%	4.1%		3.8%			3.8%	4.2%
Cost of time deposits, GEL	10.7%	9.7%		9.9%			9.9%	9.9%
Cost of time deposits, FC	1.4%	2.6%		1.7%			1.9%	2.6%
Current accounts and demand deposits	0.7%	1.0%		0.8%			0.8%	0.9%
Current accounts and demand deposits, GEL	2.2%	2.4%		2.3%			2.3%	2.4%
Current accounts and demand deposits, FC	0.0%	0.3%		0.1%			0.1%	0.3%
Cost / income ratio	50.2%	47.3%		45.9%			46.1%	47.1%

 

Performance highlights

§ Retail Banking generated outstanding operating income of GEL 232.0mln in the fourth quarter of 2021 (up 20.0% y-o-y and up 7.4% q-o-q) and GEL 845.5mln in 2021 (up 20.2% y-o-y). Strong net interest income and net fee and commission income generation were the main contributors to the increase in operating income in all periods presented, while solid net foreign currency gains also contributed to the y-o-y growth in 4Q21

§ Retail Banking net interest income was up 23.6% y-o-y and up 9.5% q-o-q in 4Q21 and up 17.2% y-o-y in 2021, largely reflecting the 18.0% y-o-y growth in customer lending. RB NIM was 4.4% in 4Q21 (up 40bps y-o-y and up 20bps q-o-q) and 4.2% in 2021 (up 10bps y-o-y). The increase in NIM primarily reflected the increase in local currency loan yields, coupled with the successful deployment of excess liquidity during the second and third quarters of 2021 on the back of a rebound in economic activity. Retail Banking net interest income also benefited from the growth of the local currency denominated loan portfolio, which generated 9.8ppts and 9.4ppts higher yield than the foreign currency denominated loan portfolio in 4Q21 and 2021, respectively

§ Retail Banking net loan book reached GEL 10,349.8mln at 31 December 2021, up 18.0% y-o-y and up 5.7% q-o-q. On a constant currency basis, Retail Banking loan book increased by 22.7% y-o-y and by 6.6% q-o-q in 4Q21. The local currency denominated loan book increased by 28.9% y-o-y and by 6.1% q-o-q, while the foreign currency denominated loan book increased by 4.9% y-o-y and by 5.2% q-o-q in 4Q21. As a result, the local currency denominated loan book accounted for 59.9% of the Retail Banking loan book at 31 December 2021, compared with 54.9% at 31 December 2020 and 59.7% at 30 September 2021. The consumer loan portfolio, which is typically most sensitive to foreign currency risk, is now almost completely de-dollarised, while the share of retail mortgage loans in local currency was 50.5% at 31 December 2021, compared with 45.7% at 31 December 2020

§ The y-o-y and q-o-q loan book growth reflected continued strong loan origination levels in most segments of the Retail Banking business, driven by a strong rebound in economic activity during 2021. A fully redesigned lending process in the consumer and MSME segments also significantly boosted loan portfolio growth:

RETAIL BANKING LOAN BOOK BY PRODUCTS
GEL thousands, unless otherwise noted	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
Loan originations
Consumer loans	858,067	518,313	65.5%	781,670	9.8%		2,737,779	1,473,388	85.8%
Mortgage loans	484,407	647,580	-25.2%	389,722	24.3%		1,747,404	1,429,682	22.2%
Micro loans	497,325	391,914	26.9%	424,506	17.2%		1,736,510	1,045,992	66.0%
SME loans	434,009	362,858	19.6%	369,869	17.3%		1,564,334	1,118,559	39.9%
Outstanding balance
Consumer loans	2,567,361	1,763,017	45.6%	2,247,988	14.2%		2,567,361	1,763,017	45.6%
Mortgage loans	3,956,204	3,733,658	6.0%	3,827,592	3.4%		3,956,204	3,733,658	6.0%
Micro loans	1,980,691	1,701,501	16.4%	1,986,655	-0.3%		1,980,691	1,701,501	16.4%
SME loans	1,608,857	1,424,330	13.0%	1,495,325	7.6%		1,608,857	1,424,330	13.0%

§ Retail Banking client deposits amounted to GEL 9,557.7mln at 31 December 2021, up 11.0% y-o-y and up 4.2% q-o-q. The dollarisation level of deposits was down to 69.6% at 31 December 2021, from 73.1% at 31 December 2020 and 71.6% at 30 September 2021. The cost of foreign currency denominated deposits was 0.8% in 4Q21 (down 100bps y-o-y and down 30bps q-o-q) and 1.2% in 2021 (down 60bps y-o-y), while the cost of local currency denominated deposits was 6.8% in 4Q21 (up 80bps y-o-y and up 50bps q-o-q) and 6.2% in 2021 (flat y-o-y). The spread between the cost of RB's client deposits in GEL and foreign currency was 6.0ppts in 4Q21 (GEL: 6.8%; FC: 0.8%), compared with 4.2ppts in 4Q20 (GEL: 6.0%; FC: 1.8%) and 5.2ppts in 3Q21 (GEL: 6.3%; FC: 1.1%). On a full year basis, the spread was 5.0ppts in 2021 (GEL: 6.2%; FC: 1.2%) and 4.4ppts in 2020 (GEL: 6.2%; FC: 1.8%)

§ Retail Banking net fee and commission income. Net fee and commission income generation was outstanding, increasing by 43.3% y-o-y and by 7.3% q-o-q in the fourth quarter of 2021, and by 46.7% y-o-y in 2021. The increase was mainly driven by strong performance in settlement operations in all periods presented, reflecting improving economic activity during 2021. Higher fees generated from currency conversion operations also contributed to the y-o-y increase in net fee and commission income both in 4Q21 and full year 2021

 

 

§ Retail Banking's cost of credit risk ratio was 0.7% both in 4Q21 (0.6% in 4Q20 and 0.4% in 3Q21) and 2021 (2.1% in 2020). The 2.1% cost of credit risk ratio in 2020 reflected the IFRS 9 ECL reserve builds created for the full economic cycle in the first quarter of 2020, related to the deterioration of the macroeconomic environment and expected creditworthiness of borrowers as a result of the COVID-19 pandemic. The Group continuously revisits the assumptions used in the reserve builds to reflect better visibility of the creditworthiness of borrowers and up-to-date macroeconomic forecasts. Based on the ongoing analyses, the Group recorded additional ECL reserves on loans to customers in the Retail Banking segment in 4Q21, resulting in a 0.7% cost of credit risk ratio for the quarter

§ Our Retail Banking business continued to deliver strong results across our core strategic pillars, as demonstrated by the following performance indicators:

Volume information in GEL thousands	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
Retail Banking active customers[3]
Number of new active customers	59,306	44,215	34.1%	44,368	33.7%		181,678	153,133	18.6%
Number of active customers	1,635,689	1,485,559	10.1%	1,530,270	6.9%		1,635,689	1,485,559	10.1%
Cards
Number of cards issued	432,685	255,333	69.5%	214,650	101.6%		1,052,067	714,272	47.3%
Number of cards outstanding	2,290,716	2,137,744	7.2%	2,078,033	10.2%		2,290,716	2,137,744	7.2%
Express Pay terminals
Number of Express Pay terminals	3,134	3,020	3.8%	3,130	0.1%		3,134	3,020	3.8%
Number of transactions via Express Pay terminals	21,102,054	21,002,305	0.5%	19,553,431	7.9%		77,491,726	80,295,072	-3.5%
Volume of transactions via Express Pay terminals	3,426,763	2,601,145	31.7%	3,170,504	8.1%		11,767,105	8,559,210	37.5%
POS terminals
Number of desks	27,286	21,331	27.9%	25,544	6.8%		27,286	21,331	27.9%
Number of contracted merchants	17,404	11,763	48.0%	16,342	6.5%		17,404	11,763	48.0%
Number of POS terminals	38,514	27,184	41.7%	35,793	7.6%		38,514	27,184	41.7%
Number of transactions via POS terminals	44,609,427	27,378,339	62.9%	41,698,898	7.0%		150,064,673	99,895,533	50.2%
Volume of transactions via POS terminals	1,386,223	741,638	86.9%	1,270,274	9.1%		4,371,275	2,670,672	63.7%
Mobile and internet banking
Number of active digital users [4]	921,018	759,939	21.2%	831,314	10.8%		921,018	759,939	21.2%
Number of transactions via internet bank	1,093,956	1,057,994	3.4%	1,019,281	7.3%		4,024,705	4,218,690	-4.6%
Volume of transactions via internet bank	629,887	678,385	-7.1%	618,165	1.9%		2,448,638	2,459,137	-0.4%
Number of transactions via mobile bank	34,308,520	19,538,695	75.6%	29,147,279	17.7%		110,032,781	62,525,478	76.0%
Volume of transactions via mobile bank	5,994,578	3,047,189	96.7%	5,054,719	18.6%		18,515,145	8,940,584	107.1%

§ The Bank had more than 1.6 million active retail customers at 31 December 2021, up 10.1% y-o-y and up 6.9% q-o-q, reflecting the continuous improvements to our end-to-end customer journeys and the development of our digital channels, especially our mobile app. According to an independent research conducted in autumn 2021, Bank of Georgia repeatedly comes out as the most trusted and top-of-mind bank in Georgia

§ The number of outstanding cards increased by 7.2% y-o-y and by 10.2% q-o-q at 31 December 2021. The increase was mainly driven by our new debit card product - PLUS card - that we launched at the end of 3Q21, together with American Express, their second debit card project worldwide and first in EMEA. This product will enable us to transfer more benefits to cardholders and merchants and, thus, to expand our loyalty programme and boost transactional activity. The number of Loyalty programme cards reached 1,481,992 at 31 December 2021, up 27.5% y-o-y and up 13.5% q-o-q

§ Digital channels. We have continued to develop our digital channels and provide superior digital experiences to our customers. More than 96% of total transactions of individuals were executed through digital channels[5] in 4Q21 and 2021

-     mBank and iBank digital offloading. The Bank has continued to develop digital products and refine end-to-end digital journeys to increase the usage of these channels and move most of the activity to mBank and iBank. The functionalities of these platforms are updated every two to three weeks. We have introduced a number of innovative products and features recently, including digital card, peer-to-peer payments, bill splitting and money request, fully digital consumer lending process, online instalment loans, digital onboarding, embedded online chat, fully redesigned iBank, retail brokerage in mobile app, among others. As a result, the number of active users, as well as the number and the volume of transactions through these channels, particularly, mBank, have grown rapidly. We are also seeing increased engagement among active users, as more than 44% of monthly active users were daily users of our mBank/iBank

-     The use of Express Pay terminals. The Bank has a large network of self-service terminals throughout Georgia. We view self-service terminals as the key transition channel from physical to digital, and the migration has been significant over the past few years. The number of transactions via self-service terminals increased slightly in 4Q21 but declined overall in 2021, mainly due to an increase in the maximum amount that could be deposited through a self-service terminal in 2021. This also explains the increase in the volume of transactions via self-service terminals both in 4Q21 and 2021

-     Product offloading to digital channels. Having achieved high transactions offloading rate, the next step and a big upside for us is to further boost product sales in digital channels. Our product offloading rate[6] increased substantially to around 30% by the end of December 2021, compared with around 19% in December 2020, boosted partly by the fully redesigned digital consumer lending flow in the mobile app. The new flow is tailored to customer profiles. For example, our customers can now skip some steps in the process if we already know them. They can also see pre-approved loan limits for all products in the app and easily activate a loan. By the end of 2021, we also improved the deposit activation process in digital channels. , which will further boost our product offloading. As we continue to add innovative digital products and design better end-to-end digital journeys, we are on track to achieve our targeted product offloading rate of around 36% by June 2022

-     Bank of Georgia was the first bank on the market to offer its customers the possibility to add other banks' accounts in mBank under the Open Banking standards

-     Business iBank and mBank. Since the release of a new business internet banking platform for our MSME and corporate clients, we have focused on making the Business iBank even more useful for business transactions to incentivise the transfer of client activity to digital channels. In 2Q21, we introduced new online chat. Another big step forward was the launch of Business mBank application in 1Q21 to offer full digital experience to our business customers. We introduced bill payments and mobile POS ordering functionalities and improved onboarding and biometric authentication in our Business mBank during 4Q21. Our goal is to make the Business mBank useful for immediate business transactions, payments, accounting, money transfers, and administration, considering customer preferences and best practices. As a result, we saw a significant increase in the number of active Business iBank and mBank users, reaching 47,642 users at 31 December 2021 (up 32.0% y-o-y and up 6.2% q-o-q). We also saw a robust y-o-y and q-o-q increase in the number of transactions (up 44.3% y-o-y and up 19.5% q-o-q in 4Q21, and up 31.0% y-o-y in 2021) and the volume of transactions (up 30.5% y-o-y and up 11.7% q-o-q in 4Q21, and up 36.7% in 2021) through Business iBank/mBank. Overall, more than 97% of transactions of legal entities were executed through Business iBank/mBank in 4Q21 and in 2021

§ Our premium banking segment comprises two directions - SOLO and Wealth Management. Following structural changes in senior management, starting from 3Q21, we reclassified Wealth Management business from Corporate and Investment Banking to Retail Banking segment, under SOLO - Premium Banking. The comparative periods have been restated accordingly:

-     SOLO continued to grow and invest in its lifestyle brand. We have 11 SOLO lounges, of which nine are located in Tbilisi, the capital of Georgia, and two in major regional cities of Georgia. The number of active SOLO clients reached 70,151 at 31 December 2021 (59,156 at 31 December 2020 and 67,019 at 31 September 2021). While active SOLO clients represent 4.3% of our total active Retail Banking client base, they contributed 28.3% to our Retail Banking loan book, 32.7% to Retail Banking deposits, 25.0% and 21.9% to our Retail Banking net interest income and Retail Banking net fee and commission income, respectively, in 2021. The net fee and commission income from the SOLO segment was GEL 10.4mln in 4Q21 (up 33.7% y-o-y and up 64.7% q-o-q) and GEL 31.1mln in 2021 (up 13.6% y-o-y)

-     Wealth Management continues to focus on profitable growth through diversifying its offerings. Wealth Management has a strong international presence and diversified customer base across multiple geographies. We served 1,503 active wealth management customers from 78 countries as at 31 December 2021, compared with 1,422 active customers as at 31 December 2020 and 1,447 active customers as at 30 September 2021

-     Wealth Management's AUM was GEL 1,503.5mln at 31 December 2021, down 6.7% y-o-y and down 1.2% q-o-q, primarily reflecting the local currency appreciation during 2021. AUM comprises deposits and global certificates of deposit held by Wealth Management clients. In addition, the Bank's Wealth Management customers' investments in assets which are held through Galt & Taggart, reached GEL 879.5mln at 31 December 2021, up 10.2% y-o-y and up 0.3% q-o-q. Wealth Management deposits amounted to GEL 1,393.9mln at 31 December 2021, down 7.5% y-o-y and down 2.8% q-o-q, primarily reflecting the local currency appreciation during 2021. WM deposits grew at a compound annual growth rate (CAGR) of 4.8% over the last five-year period. The cost of deposits was 2.5% in 4Q21 (down 40bps y-o-y and down 10bps q-o-q) and 2.6% in 2021 (down 50bps y-o-y)

§ MSME banking. The number of MSME segment active clients reached 63,702 at 31 December 2021, up 17.1% y-o-y and up 4.3% q-o-q. MSME's gross loan portfolio reached GEL 3,955.3mln (up 20.0% y-o-y and up 7.5% q-o-q) and client deposits and notes amounted to GEL 1,152.6mln (up 20.3% y-o-y and up 9.9% q-o-q) at 31 December 2021. The MSME segment generated robust operating income of GEL 65.2mln in 4Q21 (up 13.0% y-o-y and up 14.1% q-o-q) and GEL 231.9mln in 2021 (up 16.8% y-o-y), reflecting a strong rebound in economic activity during 2021

§ Our digital ecosystem rests on four main business verticals: real estate, e-commerce, point of sale solutions, and logistics. In 2019-2021, we launched four platforms - a real estate platform - area.ge, an online marketplace - extra.ge, an inventory management and point-of-sale solution for MSMEs - Optimo, and a full logistics services solution - IZiBox.

In 4Q21, the Group further developed these platforms, enlarged its network of partners, introduced new features and products, and increased its customer base through active campaigns and initiatives.

In 3Q21, Optimo participated in 500 Startups Singapore - one of the largest startup acceleration programmes, with more than 200 startup applicants. Optimo successfully completed the acceleration process and was chosen among the top 12 shortlisted startups. Within the acceleration programme, Optimo will have the opportunity to receive ongoing support to enhance the product.

500 Georgia Acceleration programme[7] (launched in 2020 in partnership with 500 Startups and Georgia's Innovation and Technology Agency to help accelerate the development of Georgian and international early stage startups operating in the region). During 2020 and 2021, 28 companies from eleven different business verticals (fintech, healthcare, lifestyle, accounting services, auto and transportation, HR services, travel and hospitality, Adtech, Agtech, natural language processing and communications) completed the programme and joined our Digital Area ecosystem. In the third quarter of 2021, the winners successfully completed the final acceleration process in San Francisco. Since the launch, the participating startups have raised more than US$ 10.5 million from international investors and venture capital funds over the programme duration, created 200+ jobs, have 627,000+ users, 100+ new partnerships and generated more than GEL 8mln in revenue.

During 2018-2021, the Group has invested c.US$ 8.6 million in the development of the Digital Area Ecosystem. The Group plans an additional investment of US$ 3-8 million during 2022-2023

§ Retail Banking recorded a profit of GEL 87.7mln in 4Q21 (up 12.7% y-o-y and down 8.6% q-o-q) and GEL 346.5mln in 2021 (up 140.4% y-o-y). Retail Banking ROAE was 19.7% in 4Q21 (22.1% in 4Q20 and 23.4% in 3Q21) and 21.4% in 2021 (11.0% in 2020, reflecting the COVID-19 pandemic impact)

 

 

CORPORATE AND INVESTMENT BANKING (CIB)⁸

CIB provides (1) loans and other credit facilities to Georgia's large corporate clients and other legal entities, excluding SMEs and micro businesses; (2) services such as funds transfers and settlements services, currency conversion operations, trade finance services and documentary operations as well as the handling of savings and term deposits; (3) finance lease facilities through the Bank's leasing operations arm, the Georgian Leasing Company; and (4) corporate advisory, debt and equity capital markets research and brokerage services through Galt & Taggart.

GEL thousands, unless otherwise noted	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
INCOME STATEMENT HIGHLIGHTS[8]
Net interest income	96,619	62,287	55.1%	86,825	11.3%		331,706	244,224	35.8%
Net fee and commission income	13,175	10,617	24.1%	14,237	-7.5%		47,869	37,597	27.3%
Net foreign currency gain	13,788	10,437	32.1%	11,248	22.6%		37,619	33,161	13.4%
Net other income	6,377	9,970	-36.0%	4,982	28.0%		43,979	22,567	94.9%
Operating income	129,959	93,311	39.3%	117,292	10.8%		461,173	337,549	36.6%
Salaries and other employee benefits	(14,387)	(12,046)	19.4%	(13,053)	10.2%		(52,836)	(43,805)	20.6%
Administrative expenses	(5,397)	(4,468)	20.8%	(3,948)	36.7%		(16,781)	(15,662)	7.1%
Depreciation, amortisation and impairment	(2,313)	(2,106)	9.8%	(2,296)	0.7%		(8,551)	(8,539)	0.1%
Other operating expenses	(341)	(445)	-23.4%	(136)	150.7%		(892)	(1,041)	-14.3%
Operating expenses	(22,438)	(19,065)	17.7%	(19,433)	15.5%		(79,060)	(69,047)	14.5%
Operating income before cost of risk	107,521	74,246	44.8%	97,859	9.9%		382,113	268,502	42.3%
Cost of risk	12,730	(22,204)	NMF	(1,437)	NMF		22,662	(113,856)	NMF
Net operating income before non-recurring items	120,251	52,042	131.1%	96,422	24.7%		404,775	154,646	161.7%
Net non-recurring items	(1)	-	-	(3)	-66.7%		(78)	(1,288)	-93.9%
Profit before income tax expense	120,250	52,042	131.1%	96,419	24.7%		404,697	153,358	163.9%
Income tax expense	(11,247)	(3,957)	184.2%	(9,781)	15.0%		(38,473)	(12,684)	NMF
Profit	109,003	48,085	126.7%	86,638	25.8%		366,224	140,674	160.3%
BALANCE SHEET HIGHLIGHTS8
Net loans and finance lease receivables	5,100,938	4,629,294	10.2%	5,056,142	0.9%		5,100,938	4,629,294	10.2%
Net loans and finance lease receivables, GEL	1,113,914	944,173	18.0%	1,079,894	3.2%		1,113,914	944,173	18.0%
Net loans and finance lease receivables, FC	3,987,024	3,685,121	8.2%	3,976,248	0.3%		3,987,024	3,685,121	8.2%
Client deposits	4,015,449	4,887,989	-17.9%	3,831,325	4.8%		4,015,449	4,887,989	-17.9%
Client deposits, GEL	2,559,463	3,256,015	-21.4%	2,467,897	3.7%		2,559,463	3,256,015	-21.4%
Client deposits, FC	1,455,986	1,631,974	-10.8%	1,363,428	6.8%		1,455,986	1,631,974	-10.8%
Time deposits	1,258,019	2,486,084	-49.4%	1,187,904	5.9%		1,258,019	2,486,084	-49.4%
Time deposits, GEL	1,106,874	2,235,568	-50.5%	1,017,169	8.8%		1,106,874	2,235,568	-50.5%
Time deposits, FC	151,145	250,516	-39.7%	170,735	-11.5%		151,145	250,516	-39.7%
Current accounts and demand deposits	2,757,430	2,401,905	14.8%	2,643,421	4.3%		2,757,430	2,401,905	14.8%
Current accounts and demand deposits, GEL	1,452,589	1,020,447	42.3%	1,450,728	0.1%		1,452,589	1,020,447	42.3%
Current accounts and demand deposits, FC	1,304,841	1,381,458	-5.5%	1,192,693	9.4%		1,304,841	1,381,458	-5.5%
Letters of credit and guarantees, standalone (off-balance sheet item)	1,728,569	1,585,421	9.0%	1,639,119	5.5%		1,728,569	1,585,421	9.0%
Assets under management	1,469,315	1,157,366	27.0%	1,458,115	0.8%		1,469,315	1,157,366	27.0%
RATIOS8
ROAE	39.2%	20.5%		31.4%			34.6%	16.7%
Net interest margin	5.8%	3.9%		5.5%			5.1%	4.2%
Cost of credit risk ratio	-1.8%	0.4%		-0.3%			-1.2%	1.5%
Cost of funds	3.0%	3.1%		2.5%			2.5%	3.1%
Loan yield	9.2%	8.5%		8.7%			8.7%	8.6%
Loan yield, GEL	14.3%	12.7%		14.1%			13.5%	12.8%
Loan yield, FC	7.8%	7.6%		7.2%			7.5%	7.7%
Cost of deposits	5.6%	5.4%		5.6%			5.5%	4.9%
Cost of deposits, GEL	8.4%	7.8%		8.1%			8.0%	7.7%
Cost of deposits, FC	0.3%	1.0%		0.4%			0.6%	0.7%
Cost of time deposits	9.0%	7.9%		8.4%			8.2%	7.7%
Cost of time deposits, GEL	10.1%	8.8%		9.2%			9.1%	8.9%
Cost of time deposits, FC	1.9%	2.2%		2.1%			2.0%	1.9%
Current accounts and demand deposits	4.0%	3.2%		3.8%			3.5%	3.0%
Current accounts and demand deposits, GEL	7.1%	6.2%		6.9%			6.7%	6.2%
Current accounts and demand deposits, FC	0.1%	0.8%		0.1%			0.3%	0.4%
Cost / income ratio	17.3%	20.4%		16.6%			17.1%	20.5%
Concentration of top ten clients	8.3%	9.7%		8.6%			8.3%	9.7%

 

Performance highlights

§ Corporate and Investment Banking delivered excellent quarterly results. CIB generated strong net interest and non-interest income during the fourth quarter and full year 2021, coupled with continuous cost discipline. As a result, the operating income before cost of risk reached GEL 107.5mln in 4Q21 (up 44.8% y-o-y and up 9.9% q-o-q) and GEL 382.1mln in 2021 (up 42.3% y-o-y)

§ CIB's net interest income increased by 55.1% y-o-y and by 11.3% q-o-q during the fourth quarter of 2021 and increased by 35.8% in 2021, largely reflecting a 10.2% y-o-y lending growth. CIB's NIM was 5.8% in 4Q21 (up 190bps y-o-y and up 30bps q-o-q) and 5.1% in 2021 (up 90bps y-o-y). In the fourth quarter of 2021, the y-o-y increase in NIM was mainly driven by a 70bps increase in loan yields, coupled with a 10bps decline in cost of funds, while the q-o-q increase was due to a 50bps increase in loan yields, partially offset by a 50bps increase in cost of funds. On a full year basis, a 60bps decline in cost of funds, coupled with a 10bps increase in loan yields resulted in a 90bps y-o-y increase in NIM in 2021

§ CIB's net fee and commission income reached GEL 13.2mln in 4Q21 (up 24.1% y-o-y and down 7.5% q-o-q) and GEL 47.9mln in 2021 (up 27.3% y-o-y). The y-o-y growth in net fee and commission income in all periods presented was largely driven by strong income generation from settlement operations. For full year, the y-o-y growth was also supported by strong income from guarantees and letters of credit issued and advisory service fees

§ CIB's loan book and dollarisation. CIB loan portfolio reached GEL 5,100.9mln at 31 December 2021, up 10.2% y-o-y and up 0.9% q-o-q. On a constant currency basis, CIB loan book was up 18.4% y-o-y and up 2.6% q-o-q. The concentration of the top 10 CIB clients was 8.3% at 31 December 2021 (9.7% at 31 December 2020 and 8.6% at 30 September 2021). Foreign currency denominated net loans represented 78.2% of CIB's loan portfolio at 31 December 2021, compared with 79.6% at 31 December 2020 and 78.6% at 30 September 2021. At 31 December 2021, 36.4% of total gross CIB loans that were issued in foreign currency had exposure to foreign currency risk, while 42.0% of total gross CIB loans that were issued in foreign currency had no or minimal exposure to foreign currency risk

§ Dollarisation of CIB deposits was 36.3% at 31 December 2021, compared with 33.4% a year ago and 35.6% at 30 September 2021. The y-o-y increase in CIB deposit dollarisation level primarily reflected the decrease in the deposits of the Ministry of Finance of Georgia. The interest rates on local currency denominated deposits increased, while the interest rates on foreign currency deposits declined in all periods presented, and the cost of deposits in local currency remained well above the cost of foreign currency deposits, coupled with the appreciation of the local currency

§ Net other income. Net gains from the sale of real estate properties and investment securities were the main sources of net other income during 4Q21 and 2021

§ CIB's cost of risk in 4Q21 and 2021 reflected a combination of the following factors:

§ Cost of credit risk. CIB's cost of credit risk was a net gain of 1.8% in 4Q21 (cost of risk ratio of 0.4% in 4Q20 and a net gain of 0.3% in 3Q21) and a net gain of 1.2% in 2021 (cost of credit risk ratio of 1.5% in 2020). The 1.5% cost of credit risk ratio in 2020 reflected the IFRS 9 ECL reserve builds, created for the full economic cycle, related to the deterioration of the macroeconomic environment and expected creditworthiness of borrowers as a result of the COVID-19 pandemic. The Group continuously revisits the assumptions used in the reserve builds to reflect better visibility and up-to-date macroeconomic forecasts, as well as in-depth analyses of the financial standing and the creditworthiness of corporate borrowers. The Group recorded a GEL 23.8mln and a GEL 60.4mln ECL reversal on loans to customers and finance lease receivables in 4Q21 and 2021, respectively, primarily driven by the recovery of several corporate loans during these periods, partially offset by some individual write-downs

§ Expected credit loss and impairment charge on other assets and provisions in the fourth quarter of 2021 was mainly related to impairment charge on other assets, while for full year 2021 it mainly comprised expenses accrued for certain legal fees and impairment charges on other assets, partially offset by an ECL reversal on guarantees issued

§ As a result, CIB recorded a profit of GEL 109.0mln in the fourth quarter of 2021 (up 126.7% y-o-y and up 25.8% q-o-q) and GEL 366.2mln in 2021 (a profit of GEL 140.7mln in 2020). CIB's ROAE was 39.2% in 4Q21 (20.5% in 4Q20 and 31.4% in 3Q21) and 34.6% in 2021 (16.7% in 2020, reflecting the COVID-19 pandemic impact)

Performance highlights of Investment Management operations

§ Our Investment Management franchise covers the leading investment bank in Georgia, Galt & Taggart. We focus on profitable growth by unlocking the retail brokerage potential and fully digitising our brokerage services

§ The Investment Management's AUM, which comprises Galt & Taggart brokerage client assets, reached GEL 1,469.3mln as at 31 December 2021, up 27.0% y-o-y and up 0.8% q-o-q

§ Galt & Taggart, which brings under one brand corporate advisory, debt and equity capital markets research and brokerage services, continues to develop local capital markets in Georgia

§ Our brokerage business demonstrated solid performance in the fourth quarter of 2021. Gross revenue of brokerage business was GEL 1.9mln in 4Q21 (down 2.4% y-o-y and up 7.6% q-o-q) and GEL 7.5mln in 2021 (up 15.8% y-o-y). Our online brokerage offered in partnership with Saxo Bank under a white label offering and our mobile brokerage offered in partnership with a U.S. brokerage house DriveWealth, generated gross revenue of GEL 1.3mln in 4Q21 (down 15.6% y-o-y and up 26.3% q-o-q) and GEL 5.2mln in 2021 (up 3.9% y-o-y)

-      We see significant upside in the brokerage business in Georgia. Historically, we have focused on providing brokerage services to our wealth management customers, whereas the retail investor participation in the securities market has been limited. We are now extending our offerings to the wider retail and mass affluent segments

-      In line with the Group's overall digital strategy, we have focused on digitalising our brokerage offerings. Over the past few years we have enhanced our back- and front-end processes to improve overall customer experience and engagement. Our single-view client dashboard, a product combining investment banking products into a single channel, continues to improve overall customer experience and reporting tools. By the end of 2021, in partnership with Drive Wealth, we launched a new retail brokerage service - Investments - directly through Bank of Georgia's mobile app, mBank. We aim to provide retail investors access to the U.S. markets and provide wider options for the saving and investing of their funds

§ Important transactions completed during 2021:

-      In March 2021, Galt & Taggart, through a competitive bidding process, was awarded a contract to provide financial and legal consultancy services to Georgian State Electrosystem (GSE) and advise on accessing capital markets and raising commercial financing

-      In April 2021, Galt & Taggart acted as a Co-manager and facilitated a successful pricing of Georgia's US$ 500 million 2.750% 5-year sovereign Eurobond. Goldman Sachs International and J.P. Morgan Securities plc acted as Joint Global Coordinators and Joint Bookrunners on the transaction along with ICBC Standard Bank plc, while two local investment banks acted as Co-managers. The Eurobond was met with strong investor demand, with orders reaching US$ 2.0 billion. This marks a historic transaction for Georgia as it secured financing at the lowest coupon and yield in the history of the country

-      In May 2021, Galt & Taggart, through a competitive bidding process, was awarded a contract to design and implement support mechanism for capital markets development in Georgia. The overall objective of this project is to increase access to finance for companies through debt and equity capital markets. The project is funded by the Delegation of the European Union in Georgia and implemented by the Capital Markets Development team of European Bank for Reconstruction and Development

-      In June 2021, Galt & Taggart acted as a Co-manager and facilitated a successful pricing of Georgian Railway's US$ 500 million 4.0% 7-year Eurobond. Citigroup and J.P. Morgan acted as Joint Lead Managers and Joint Bookrunners on the transaction. The strong investor demand led to an 8.4x oversubscription as orders reached US$ 4.2 billion. This marks a historic transaction for the issuer as it secured financing at the lowest coupon and yield in its history

-      In August 2021, Galt & Taggart acted as a sell-side advisor on a US$ 30 million transaction in the real estate sector

-      In September, October and November 2021, Galt & Taggart acted as a Lead manager for the European Bank for Reconstruction and Development, facilitating three private bond placements in the total amount of GEL 313 million with up to 5 years maturity

-      In December 2021, Galt & Taggart together with a local investment bank successfully facilitated the placement of  local public bonds in the amount of US$ 12 million with up to 3 years maturity

 

 

§ Galt and Taggart is a leading research house in Georgia, supporting our brokerage business and CIB activities with an in-depth quality macro and sector research coverage. Galt & Taggart publishes research reports on Georgia's and regional economies, key economic sectors in Georgia, regional fixed income securities, and global macro trends, among others. Currently, we have more than 6,500 unique subscribers, and our research is available on all major international platforms (Bloomberg, Capital IQ, Refinitiv, etc.)

SELECTED FINANCIAL AND OPERATING INFORMATION

 

INCOME STATEMENT	BANK OF GEORGIA GROUP CONSOLIDATED
GEL thousands, unless otherwise noted	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
Interest income	509,563	420,398	21.2%	466,265	9.3%		1,851,044	1,595,427	16.0%
Interest expense	(239,492)	(218,802)	9.5%	(222,976)	7.4%		(897,103)	(817,785)	9.7%
Net interest income	270,071	201,596	34.0%	243,289	11.0%		953,941	777,642	22.7%
Fee and commission income	113,664	77,382	46.9%	105,992	7.2%		390,829	274,458	42.4%
Fee and commission expense	(49,564)	(30,424)	62.9%	(43,516)	13.9%		(158,398)	(108,955)	45.4%
Net fee and commission income	64,100	46,958	36.5%	62,476	2.6%		232,431	165,503	40.4%
Net foreign currency gain	34,495	26,457	30.4%	33,346	3.4%		109,099	99,040	10.2%
Net other income	10,579	25,016	-57.7%	8,706	21.5%		70,206	48,474	44.8%
Operating income	379,245	300,027	26.4%	347,817	9.0%		1,365,677	1,090,659	25.2%
Salaries and other employee benefits	(80,501)	(64,243)	25.3%	(71,551)	12.5%		(281,087)	(239,607)	17.3%
Administrative expenses	(43,552)	(31,617)	37.7%	(32,342)	34.7%		(129,524)	(105,531)	22.7%
Depreciation, amortisation and impairment	(25,256)	(21,283)	18.7%	(23,448)	7.7%		(93,618)	(82,937)	12.9%
Other operating expenses	(1,463)	(1,714)	-14.6%	(661)	121.3%		(3,723)	(4,560)	-18.4%
Operating expenses	(150,772)	(118,857)	26.9%	(128,002)	17.8%		(507,952)	(432,635)	17.4%
Profit / (loss) from associates	128	154	-16.9%	223	-42.6%		(3,781)	782	NMF
Operating income before cost of risk	228,601	181,324	26.1%	220,038	3.9%		853,944	658,806	29.6%
Expected credit loss on loans to customers	9,836	(14,579)	NMF	(8,192)	NMF		(1,452)	(236,983)	-99.4%
Expected credit loss on finance lease receivables	(3,406)	(381)	NMF	70	NMF		(4,950)	(8,025)	-38.3%
Other expected credit loss and impairment charge on other assets and provisions	(14,174)	(23,471)	-39.6%	(5,462)	159.5%		(45,010)	(55,989)	-19.6%
Cost of risk	(7,744)	(38,431)	-79.8%	(13,584)	-43.0%		(51,412)	(300,997)	-82.9%
Net operating income before non-recurring items	220,857	142,893	54.6%	206,454	7.0%		802,532	357,809	124.3%
Net non-recurring items	(62)	21	NMF	(479)	-87.1%		(590)	(41,311)	-98.6%
Profit before income tax expense	220,795	142,914	54.5%	205,975	7.2%		801,942	316,498	153.4%
Income tax expense	(20,076)	(11,065)	81.4%	(20,671)	-2.9%		(74,824)	(21,555)	NMF
Profit	200,719	131,849	52.2%	185,304	8.3%		727,118	294,943	146.5%
Profit attributable to:
- shareholders of the Group	199,889	131,220	52.3%	184,462	8.4%		723,806	293,584	146.5%
- non-controlling interests	830	629	32.0%	842	-1.4%		3,312	1,359	143.7%
Earnings per share (basic)	4.25	2.76	54.0%	3.90	9.0%		15.22	6.17	146.7%
Earnings per share (diluted)	4.12	2.76	49.3%	3.80	8.4%		14.88	6.17	141.2%

 

 

 

 

 

 

 

BALANCE SHEET	BANK OF GEORGIA GROUP CONSOLIDATED
GEL thousands, unless otherwise noted	Dec-21	Dec-20	Change y-o-y	Sep-21	Change q-o-q
Cash and cash equivalents	1,520,562	1,970,955	-22.9%	1,274,079	19.3%
Amounts due from credit institutions	1,931,390	2,016,005	-4.2%	1,904,747	1.4%
Investment securities	2,595,664	2,544,397	2.0%	2,282,983	13.7%
Loans to customers and finance lease receivables	16,168,973	14,192,078	13.9%	15,579,496	3.8%
Accounts receivable and other loans	3,680	2,420	52.1%	2,591	42.0%
Prepayments	40,878	27,593	48.1%	44,540	-8.2%
Inventories	11,514	10,340	11.4%	11,418	0.8%
Right-of-use assets	80,186	83,208	-3.6%	79,174	1.3%
Investment property	226,849	231,241	-1.9%	232,446	-2.4%
Property and equipment	378,808	387,851	-2.3%	377,287	0.4%
Goodwill	33,351	33,351	0.0%	33,351	0.0%
Intangible assets	144,251	125,806	14.7%	140,386	2.8%
Income tax assets	292	22,033	-98.7%	479	-39.0%
Other assets	246,947	325,994	-24.2%	192,810	28.1%
Assets held for sale	46,731	62,648	-25.4%	54,765	-14.7%
Total assets	23,430,076	22,035,920	6.3%	22,210,552	5.5%
Client deposits and notes	14,038,002	14,020,209	0.1%	13,312,965	5.4%
Amounts owed to credit institutions	4,318,445	3,335,966	29.5%	4,037,523	7.0%
Debt securities issued	1,518,685	1,585,545	-4.2%	1,537,593	-1.2%
Lease liabilities	87,662	95,635	-8.3%	87,099	0.6%
Accruals and deferred income	80,157	53,894	48.7%	66,449	20.6%
Income tax liabilities	110,868	62,434	77.6%	92,784	19.5%
Other liabilities	183,349	332,322	-44.8%	168,385	8.9%
Total liabilities	20,337,168	19,486,005	4.4%	19,302,798	5.4%
Share capital	1,618	1,618	0.0%	1,618	0.0%
Additional paid-in capital	492,243	526,634	-6.5%	496,708	-0.9%
Treasury shares	(75)	(54)	38.9%	(66)	13.6%
Other reserves	(3,223)	71,227	NMF	6,139	NMF
Retained earnings	2,588,463	1,939,122	33.5%	2,390,255	8.3%
Total equity attributable to shareholders of the Group	3,079,026	2,538,547	21.3%	2,894,654	6.4%
Non-controlling interests	13,882	11,368	22.1%	13,100	6.0%
Total equity	3,092,908	2,549,915	21.3%	2,907,754	6.4%
Total liabilities and equity	23,430,076	22,035,920	6.3%	22,210,552	5.5%
Book value per share	65.65	53.41	22.9%	61.37	7.0%

 

 

 

 

 

BELARUSKY NARODNY BANK (BNB)

 

INCOME STATEMENT HIGHLIGHTS	4Q21	4Q20	Change y-o-y	3Q21	Change q-o-q		2021	2020	Change y-o-y
GEL thousands, unless otherwise stated
Net interest income	12,277	8,888	38.1%	9,300	32.0%		39,676	36,249	9.5%
Net fee and commission income	769	1,268	-39.4%	1,515	-49.2%		5,476	5,678	-3.6%
Net foreign currency gain	3,473	1,963	76.9%	3,293	5.5%		13,341	6,202	115.1%
Net other income	930	1,240	-25.0%	496	87.5%		1,242	1,812	-31.5%
Operating income	17,449	13,359	30.6%	14,604	19.5%		59,735	49,941	19.6%
Operating expenses	(12,000)	(8,334)	44.0%	(9,676)	24.0%		(39,675)	(32,950)	20.4%
Operating income before cost of risk	5,449	5,025	8.4%	4,928	10.6%		20,060	16,991	18.1%
Cost of risk	(471)	2,819	NMF	(1,560)	-69.8%		(1,723)	(3,981)	-56.7%
Net non-recurring items	(50)	(128)	-60.9%	(138)	-63.8%		(532)	(125)	NMF
Profit before income tax expense	4,928	7,716	-36.1%	3,230	52.6%		17,805	12,885	38.2%
Income tax expense	(932)	(1,768)	-47.3%	(515)	81.0%		(3,395)	(2,734)	24.2%
Profit	3,996	5,948	-32.8%	2,715	47.2%		14,410	10,151	42.0%

 

 

BALANCE SHEET HIGHLIGHTS	Dec-21	Dec-20	Change y-o-y	Sep-21	Change q-o-q
GEL thousands, unless otherwise stated
Cash and cash equivalents	186,050	163,193	14.0%	146,716	26.8%
Amounts due from credit institutions	8,719	20,042	-56.5%	9,245	-5.7%
Investment securities	69,794	94,459	-26.1%	85,399	-18.3%
Loans to customers and finance lease receivables	662,297	698,542	-5.2%	657,568	0.7%
Other assets	54,060	42,416	27.5%	51,087	5.8%
Total assets	980,920	1,018,652	-3.7%	950,015	3.3%
Client deposits and notes	516,634	589,152	-12.3%	465,203	11.1%
Amounts owed to credit institutions	309,812	234,641	32.0%	326,715	-5.2%
Debt securities issued	7,327	34,067	-78.5%	7,195	1.8%
Other liabilities	12,490	28,237	-55.8%	12,944	-3.5%
Total liabilities	846,263	886,097	-4.5%	812,057	4.2%
Total equity	134,657	132,555	1.6%	137,958	-2.4%
Total liabilities and equity	980,920	1,018,652	-3.7%	950,015	3.3%

 

 

 

 

KEY RATIOS	4Q21	4Q20	3Q21		2021	2020
Profitability
ROAA, annualised	3.5%	2.4%	3.3%		3.2%	1.5%
ROAE, annualised	26.4%	21.3%	25.7%		25.8%	13.0%
RB ROAE	19.7%	22.1%	23.4%		21.4%	11.0%
CIB ROAE	39.2%	20.5%	31.4%		34.6%	16.7%
Net interest margin, annualised	5.3%	4.4%	5.0%		4.9%	4.6%
RB NIM	4.4%	4.0%	4.2%		4.2%	4.1%
CIB NIM	5.8%	3.9%	5.5%		5.1%	4.2%
Loan yield, annualised	11.0%	10.4%	10.6%		10.6%	10.5%
RB Loan yield	11.7%	11.1%	11.4%		11.3%	11.4%
CIB Loan yield	9.2%	8.5%	8.7%		8.7%	8.6%
Liquid assets yield, annualised	4.0%	3.0%	3.6%		3.5%	3.4%
Cost of funds, annualised	4.8%	4.6%	4.7%		4.6%	4.7%
Cost of client deposits and notes, annualised	3.5%	3.8%	3.6%		3.6%	3.6%
RB Cost of client deposits and notes	2.5%	2.9%	2.5%		2.6%	2.9%
CIB Cost of client deposits and notes	5.6%	5.4%	5.6%		5.5%	4.9%
Cost of amounts owed to credit institutions, annualised	8.3%	6.6%	8.0%		7.3%	7.1%
Cost of debt securities issued	6.8%	7.0%	6.8%		6.9%	7.4%
Operating leverage, y-o-y	-0.4%	-0.8%	1.1%		7.8%	-4.8%
Operating leverage, q-o-q	-8.8%	-7.3%	-1.2%		0.0%	0.0%
Efficiency
Cost / income	39.8%	39.6%	36.8%		37.2%	39.7%
RB Cost / income	50.2%	47.3%	45.9%		46.1%	47.1%
CIB Cost /income	17.3%	20.4%	16.6%		17.1%	20.5%
Liquidity
NBG liquidity coverage ratio (minimum requirement 100%)	124.0%	138.6%	112.7%		124.0%	138.6%
Liquid assets to total liabilities	29.7%	33.5%	28.3%		29.7%	33.5%
Net loans to client deposits and notes	115.2%	101.2%	117.0%		115.2%	101.2%
Net loans to client deposits and notes + DFIs	100.0%	89.4%	102.1%		100.0%	89.4%
Leverage (times)	6.6	7.6	6.6		6.6	7.6
Asset quality:
NPLs (GEL thousands)	394,720	545,837	413,626		394,720	545,837
NPLs to gross loans to clients	2.4%	3.7%	2.6%		2.4%	3.7%
NPL coverage ratio	95.5%	76.3%	90.9%		95.5%	76.3%
NPL coverage ratio, adjusted for discounted value of collateral	147.7%	128.8%	140.9%		147.7%	128.8%
Cost of credit risk, annualised	-0.2%	0.4%	0.2%		0.0%	1.8%
RB Cost of credit risk	0.7%	0.6%	0.4%		0.7%	2.1%
CIB Cost of credit risk	-1.8%	0.4%	-0.3%		-1.2%	1.5%
Capital adequacy:
NBG (Basel III) CET1 capital adequacy ratio	13.2%	10.4%	12.8%		13.2%	10.4%
Minimum regulatory requirement	11.5%	7.4%	11.0%		11.5%	7.4%
NBG (Basel III) Tier I capital adequacy ratio	15.0%	12.4%	14.6%		15.0%	12.4%
Minimum regulatory requirement	13.6%	9.2%	13.2%		13.6%	9.2%
NBG (Basel III) Total capital adequacy ratio	19.3%	17.6%	19.2%		19.3%	17.6%
Minimum regulatory requirement	17.7%	13.8%	17.3%		17.7%	13.8%
Selected operating data:
Total assets per FTE	2,998	2,993	2,886		2,998	2,993
Number of active branches, of which:	211	211	212		211	211
- Express branches	106	105	107		106	105
- Bank of Georgia branches	94	95	94		94	95
- SOLO lounges	11	11	11		11	11
Number of ATMs	989	960	985		989	960
Number of cards outstanding, of which:	2,290,716	2,137,744	2,078,033		2,290,716	2,137,744
- Debit cards	2,114,813	1,873,433	1,894,260		2,114,813	1,873,433
- Credit cards	175,903	264,311	183,773		175,903	264,311
Number of POS terminals	38,514	27,184	35,793		38,514	27,184
Number of Express pay terminals	2,998	2,993	2,886		2,998	2,993
FX Rates:
GEL/US$ exchange rate (period-end)	3.0976	3.2766	3.1228
GEL/GBP exchange rate (period-end)	4.1737	4.4529	4.2198

 

	Dec-21	Dec-20	Sep-21
Full time employees (FTE), of which:	7,816	7,363	7,695
- Full time employees, BOG standalone	6,207	5,821	6,108
- Full time employees, BNB	547	537	542
- Full time employees, other	1,062	1,005	1,045

 

Shares outstanding	Dec-21	Dec-20	Sep-21
Ordinary shares	46,900,982	47,530,584	47,168,814
Treasury shares	2,268,446	1,638,844	2,000,614
Total shares outstanding	49,169,428	49,169,428	49,169,428