Bank of Georgia Group has announced a significant increase in pretax profit for the second quarter of 2023. The company’s income has been boosted by higher interest rates, leading to the approval of a 62 million Georgian lari ($23.4 million) share buyback program.
Strong Financial Performance
Pretax profit for the three months ended June 30 was recorded at GEL456.3 million, a notable rise from the GEL308.5 million recorded during the same period last year. The bank’s operating income also saw substantial growth, reaching GEL667.2 million compared to GEL494.85 million in the previous year.
Positive Impact of Interest Rates
The increase in operating income can be attributed to a significant 40% jump in net interest income compared to the previous year. The bank’s net interest margin also saw a slight uptick, rising to 6.6% in the second quarter from 6.5% in the previous one.
Robust Balance-Sheet Strength
Bank of Georgia Group continues to demonstrate strong balance-sheet strength, with a common equity Tier 1 ratio of 18.7% as of June 30. This figure remains steady compared to the ratio of 19.5% reported on March 31.
The board of directors has declared an interim dividend of GEL3.06 per share. Additionally, the bank’s approved share buyback program is expected to commence later this year.
Chief Executive Archil Gachechiladze expressed confidence in the bank’s future performance, stating, “We look forward to benefiting from a strong macro environment and increased investment activity in Georgia going forward, and we are on track to deliver a good performance throughout the rest of the year.”