London, 5 September 2014
Bank of Georgia hosts Investor Day in Tbilisi
Bank of Georgia Holdings PLC ("BGH"), the holding company of JSC Bank of Georgia ("the Bank"), Georgia's leading bank is today hosting an Investor Day for analysts and investors in Tbilisi, Georgia.
As part of the presentation the Bank will update investors on its medium term strategic goals which are summarised below:
· The Bank will continue to focus on the rapidly growing Georgian market
· Our '3x20' strategy will continue to be targeted over the medium term to deliver
o A return on average equity of 20%
o Customer lending and deposit growth of 20% per annum
o A Tier 1 capital ratio of 20%
· The Bank will continue to aim to maintain a dividend payout ratio in the 25%-40% range; in additional one-off special dividends will be considered in the light of potential divestments over the next few years.
· Over the next 2-3 years, the net interest margin is expected to be c.7.5%
· Positive operating leverage is expected to be maintained, whilst continuing to invest in business growth and managing the cost/income ratio at around 40% over the next 2-3 years
· The loan-to-deposit and Development Financial Institution funding ratio is expected to be maintained in the 100% area over the next 2-3 years
· The Bank will continue to enhance its already prudent risk management practice
· The Bank's cost of risk is expected to be in the c.1.5% area
· Within the business divisions:
o In Insurance and Healthcare we expect to continue to scale up the business via further targeted hospital acquisitions whilst aiming to IPO the Healthcare and Health Insurance business during 2015.
o In Investment Management to target US$2 billion assets under management by 31 December 2016
o In Affordable Housing; to target an internal rate of return of c. 40%+, whilst targeting the IPO of the business as a fund in 2016/2017
o To target the divestment of the Bank's non-core subsidiary in Belarus with the next 2 years
A full set of the presentation slides can be viewed on the BGH website at:
http://www.bogh.co.uk/en/reports-and-accounts/bank-of-georgia-holdings-plc/investors-presentations/conferences-and-events
About Bank of Georgia Holdings PLC
Bank of Georgia Holdings PLC is a UK-incorporated holding company of Bank of Georgia. Bank of Georgia is the leading Georgian bank, based on total assets (with a 32.8% market share), total loans (with a 31.6% market share) and client deposits (with a 29.0% market share) as of 30 June 2014, all data based on standalone financial information filed by banks in Georgia with the National Bank of Georgia. The Bank offers a broad range of corporate banking, retail banking, wealth management, brokerage and insurance and healthcare services to its clients. As of 30 June 2014, the Bank served approximately 1.3 million client accounts through one of the largest distribution networks in Georgia, with 206 branches, the country's largest ATM network, comprising 510 ATMs, 2,038 Express pay (self-service) terminals and a full-service remote banking platform and a modern call center.
Bank of Georgia has, as of the date hereof, the following credit ratings:
Standard & Poor's |
'BB-/B' |
|
FitchRatings |
'BB-/B' |
|
Moody's |
'B1/NP' (FC) & 'Ba3/NP' (LC) |
|
For further information, please visit www.bgh.co.uk, www.bog.ge/ir or contact:
This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities
