(Alliance News) - Bank of Georgia Group PLC on Tuesday said it has raised its full-year guidance after an economic "rebound" boosted its interim results.
The lender said Georgia's economy has "swiftly gained traction" since March, as the majority of Covid-19 restrictions were removed.
In the first half of 2021, Georgia's estimated real gross domestic product grew 13% year-on-year, rising 5.7% above the same period in 2019, the company said.
"The lari has also been strong during [the second quarter of 2021] and appreciated by 7.4% against the US dollar," the company added.
In the six months ended June 30, the lender noted a sharp rise in pretax profit, which reached GEL375.1 million - or around GBP87.5 million - from GEL10.2 million in that period the year prior.
The company's pretax profit remained above pre-Covid levels, 65% above the GEL227.4 million reported for the first six months of 2019.
Net interest income hit GEL440.6 million in the first half, up 18% year-on-year from GEL372.0 million and 16% higher than the equivalent period in 2019.
The company said net fee & commission income also rose, increasing by 45% to GEL105.9 million from GEL73.0 million the year before.
Meanwhile, operating income grew by 24% to GEL638.6 million from GEL514.1 million in the first half of 2020 and from GEL516.0 million in that period in 2019.
The lender's liquid assets reached GEL5.90 billion by the end of the first half, up 8.4% from GEL5.45 billion at that point in 2020.
"Considering Georgia's recent strong economic recovery, we have revised our expectations for full year 2021 economic growth upwards to 8.6%," said Chief Executive Archil Gachechiladze.
Bank of Georgia issued an interim dividend of GEL1.48 per share.
However, since the first half ended, rising infection rates through July and August have led the Georgian government to reintroduce restrictions, such as limiting large gatherings and closing municipal transport.
"Although vaccination rate is currently low, immunisation progress has significantly accelerated since end of July, which is encouraging, and the government has sufficient vaccine doses secured for 2021. The Covid-19 pandemic still remains one of the key uncertainties in our growth outlook and is a risk factor to derail the recovery," the company noted.
Shares in Bank of Georgia were trading down 0.4% at 1,518.00 pence each in London on Tuesday midday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Bank Of Georgia Group (BGEO)
