Brilliant RNS - Shares lower19 Feb 2013 10:18
2012 Overview
Bank of Georgia Holdings plc (LSE: BGEO LN) (the "Bank"), the holding company of JSC Bank of Georgia and its subsidiaries, Georgia's leading bank, announces today the consolidated results for year ended 31 December 2012 (IFRS based, derived from management accounts with such announcement approved by the board of directors of BGH on 15 February 2013). The Bank reported full-year 2012 profit of GEL 179.6 million (US$ 108.4 million/GBP 67.4 million), or GEL 5.22 per share (US$3.15 per share/GBP1.96 per share). Unless otherwise mentioned, all comparisons refer to the full year 2011 results.
· Positive operating leverage maintained with strong profitability
o Net interest margin of 7.9% in 2012, compared to 7.8% in 2011;
§ Q4 2012 NIM increased to 7.8% from 7.3% in Q3 2012.
o Revenue increased by GEL 64.5 million, or 14.9%, y-o-y, to GEL 498.3 million; excluding the benefit of the one-off currency hedge gains in 2011, revenue increased by 21.9%;
§ Q4 2012 revenue grew 11.1% y-o-y to GEL 128.3 million; excluding the benefit of the one-off currency hedge in Q4 2011, Q4 2012 revenue grew 15.5%.
o Positive operating leverage maintained, as operating expenses increased at a lower rate than revenue, up 5.2% y-o-y to GEL 221.2 million; excluding the 2011 one-off gains, operating leverage was 16.7%;
§ Q4 2012 operating expenses were largely flat q-o-q at GEL 54.0 million.
o Cost to Income ratio improved to 44.4% from 48.5% in 2011, and to 42.1% in Q4 2012 from 44.4% in Q3 2012.
o Profit before tax from continuing operations of GEL 212.8 million, up by GEL 40.7 million, or 23.7%; excluding the benefit of one-off currency hedge gains in 2011, profit grew 44.7%.
o Profit for the period increased by GEL 43.8 million, or 32.3%, to GEL 179.6 million.
o Earnings per share (basic) increased by 17.6% to GEL 5.22.
o Return on Average Assets (ROAA) increased to 3.5%, compared to 3.2%.
o Return on Average Equity (ROAE) increased to 19.1%, from 18.3%.
· Strong balance sheet and capital position maintained
o Cost of Funds declined to 7.3% in 2012, compared to 8.0%.
§ Q4 2012 Cost of Funds of 6.6%, down from 7.1% in Q3 2012 and 8.4% in Q4 2011.
o Net loan book increased by 18.2% during the year , while client deposits increased 2.7%, reflecting the Bank's strategy to improve its cost of funding by reducing high interest paying corporate deposits;
§ In US$ terms the net loan book increased by 19.2% reflecting the stable currency position.
§ Retail Banking client deposits grew 15.5%, Wealth Management client deposits grew 33.2%, Corporate Banking declined 17.1%, reflecting the targeted outflow of high-interest paying deposits.
o Cost of Risk increased to 1.3% in 2012 from 0.9% in 2011, reflecting the absence of the previous year's net releases and recoveries and higher provisions in the second half of 2012.
o Strong funding a
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