Half Year 2024 Bank of Georgia Group PLC Earnings Call Transcript
Key Points
- Bank of Georgia Group PLC (BDGSF) reported a strong return on equity of 28%, with the Georgian operations just shy of 30%.
- The company announced a dividend per share of GEL3.38 and a buyback of GEL73 million, reflecting strong capital numbers.
- Both Georgia and Armenia showed robust economic growth, with Georgia delivering 9.5% real growth in the second quarter.
- Digital engagement is increasing, with digital usage growing by 20% and retail sales through digital channels reaching 57%.
- The company achieved a new historic high Net Promoter Score (NPS) of 71%, indicating high client satisfaction.
- The cost of risk increased due to an ECL charge related to the acquisition, impacting profitability.
- The SME division in Georgia showed slightly lower profits, reflecting strong competition in the segment.
- There is a higher cost structure in Ameriabank due to retention bonuses and investments in new capabilities.
- The Georgian SME segment experienced a slight increase in non-performing loans (NPLs), though not major.
- The company faces challenges in maintaining low cost of risk in Georgia, with expectations of it normalizing around 1%.
Hello, welcome everybody to Bank of Georgia Group PLC's Earnings Call. Thank you all for joining. Today, we released and are presenting the group's consolidated financial results for the second quarter and the first half of 2024. As always, I'm joined on this call by the Group, CEO, Archil Gachechiladze, and we'll start as always again with the presentation and then we'll move on to the Q&A session. For your information, this call is being recorded.
And with that, I'll hand over to Archil.
Thank you, Nini. Thank you for being on the call. We are seeing the numbers that are usual numbers pretty high, which is supervising given the fact that we are at the last decade of August, which basically means that you should be on vacation. I hope you did get a little bit of rest and vacation, and with that, let me dive into the numbers and quickly go through the numbers that we have, which are pretty decent.
So, we have return on equity of 28% with cost
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