Bank of Georgia Q1 Profits Up 19%

Bank of Georgia Group Plc, the largest Georgian lender, on Monday posted an 18.8% rise in first-quarter profit, driven by its banking and investment businesses, on the back of strong macroeconomic performance and business outlook in the country, Reuters reported. Bank of Georgia Group Plc is the new parent company of BGEO Group Plc, which includes the banking and investment businesses before the latter splits from the parent on May 29. The holding company said profit rose to 128.6 million laris ($52.9 million) in the quarter from 108.2 million laris a year ago. The Tbilisi-based lender said loan book at its banking business grew 21.3% in what is traditionally the slowest quarter of the year, helped by strength in retail lending. However, net interest margin fell to 7% at the end of March, from 7.4% a year earlier, due to a recent pick-up in euro-denominated corporate lending and strong growth in its mortgage portfolio. The banking division posted a 19.3% profit jump, while core earnings at its investment business climbed 10.6%. Georgia’s economy expanded 4.9% year-on-year in January-February, preliminary official data showed in April, slightly up from 4.8% in the same period last year.