Bank of Georgia finds market hard to please

Shares in Bank of Georgia Holdings have been in the doghouse since the election upset in Georgia at the beginning of October and Thursday's third quarter figures did little to reverse the trend, despite a solid increase in profits.

Shares in Bank of Georgia Holdings have been in the doghouse since the election upset in Georgia at the beginning of October and Thursday's third quarter figures did little to reverse the trend, despite a solid increase in profits.

Revenue in the first nine months of 2012 rose 16.2% to 370.0m lari (GEL) from GEL.318.3m in the corresponding period of 2011.

Profit before tax from continuing operations of GEL.158.7m were up by GEL.29.8m, or 23.1%.

Post-tax profit from continuing operations rose 16.8% to GEL.132.7m from GEL.113.6m the year before, leading to a 17.1% increase in basic earnings per share to GEL.3.94 from GEL.3.36 a year earlier.

"Despite the combination of a seasonally quiet quarter and the pre-election period, we experienced growing demand for credit, as reflected in the 4.8% q-o-q [quarter-on-quarter] growth of our loan book, and have further improved our efficiency by bringing the Cost to Income ratio down by a further 1.1 percentage points to 44.4%," said Irakli Gilauri, Chief Executive Officer of Bank of Georgia Holdings.

"Following the parliamentary elections in early October, Georgia is currently in the process of what has been a smooth transition to a new government. This has not changed the business priorities and strategies of Bank of Georgia and business trends in October have been consistent with our year-to-date performance," Gilauri added.

JH

Recommended

Share tips of the week - 12 August
Share tips

Share tips of the week - 12 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
12 Aug 2022
Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022

Most Popular

UK House Prices Set To Fall? It’s Not So Simple
House prices

UK House Prices Set To Fall? It’s Not So Simple

Figures suggest UK house prices are starting to slide, but we shouldn’t take these numbers at face value, explains Rupert Hargreaves.
11 Aug 2022
Three solar stocks to invest in
Renewables

Three solar stocks to invest in

This week, professional investor Nicholas Mersch of the HANetfS&P Global Clean Energy Select HANzero UCITS ETF tells us three solar stocks to invest i…
12 Aug 2022
Is gold cheap relative to equities?
Gold price

Is gold cheap relative to equities?

Dominic Frisby looks at the Dow-gold ratio and explains why gold is starting to appear inexpensive compared to equities.
12 Aug 2022