1st Quarter Results
1st Quarter Results
Bank of Georgia
1.71 GEL/US$ 31 March 2011
1.77 GEL/US$ 31 December 20101.77 GEL/US$ 31 December 2010
1.75
GEL/US$ 31 March 2010
1.75
GEL/US$ 31 March 2010
JSC BANK OF GEORGIA ANNOUNCES Q1 2011 RESULTS,
REPORTS
GEL 30.6 MILLION CONSOLIDATED NET INCOME EXCLUDING EXTRAORDINARY ITEM
| Â | Consolidated | ||||||||
| Millions, unless otherwise noted | Q1 2011 | Â | Growth q-o-q1 | Â | Growth y-o-y2 | ||||
| Bank of Georgia (Consolidated, Unaudited, IFRS-based) | US$ | Â | GEL | ||||||
| Total Operating Income (Revenue)3 | 53.4 | 91.1 | -4.3% | 20.1% | |||||
| Recurring Operating Costs | 27.7 | 47.3 | -7.2% | 2.2% | |||||
| Normalized Net Operating Income4 | 25.7 | 43.8 | -1.0% | 48.0% | |||||
| Profit/(Loss) before provisions | 24.3 | 41.5 | -3.2% | 57.6% | |||||
| Net Provision Expenses | 3.0 | 5.2 | -52.4% | -30.0% | |||||
| Net Income/(Loss)5 | 17.9 | 30.6 | 19.0% | 82.4% | |||||
| Â | |||||||||
| Total Assets | 2,373.7 | 4,049.2 | -1.2% | 29.6% | |||||
| Net Loans | 1,314.2 | 2,241.9 | -5.4% | 26.1% | |||||
| Client Deposits | 1,158.9 | 1,976.9 | -1.7% | 41.8% | |||||
| Tier I Capital Adequacy Ratio (BIS)6 | 18.0% | ||||||||
| Total Capital Adequacy Ratio (BIS)7 | 28.8% | ||||||||
| Tier I Capital Adequacy Ratio (NBG) | 12.7% | ||||||||
| Total Capital Adequacy Ratio (NBG) | 15.6% | ||||||||
| Standalone | |||||||||
| Millions, unless otherwise noted | Q1 2011 | Growth q-o-q1 | Growth y-o-y2 | ||||||
| Bank of Georgia (Consolidated, Unaudited, IFRS-based) | US$ | GEL | |||||||
| Total Operating Income (Revenue)3 | 45.8 | 78.2 | -2.6% | 31.7% | |||||
| Recurring Operating Costs | 20.1 | 34.2 | -0.2% | 11.3% | |||||
| Normalized Net Operating Income4 | 25.8 | 44.0 | -4.4% | 53.7% | |||||
| Profit/(Loss) before provisions | 24.9 | 42.5 | -7.2% | 55.3% | |||||
| Net Provision Expenses | 3.3 | 5.6 | -41.6% | -54.7% | |||||
| Net Income/(Loss) 5 | 18.5 | 31.5 | 5.5% | 145.7% | |||||
| Â | |||||||||
| Total Assets | 2,306.7 | 3,935.0 | -0.3% | 29.7% | |||||
| Net Loans | 1,298.5 | 2,215.1 | 0.6% | 30.3% | |||||
| Client Deposits | 1,152.8 | 1,966.5 | 8.7% | 57.1% | |||||
| Â | |||||||||
Bank of Georgia (LSE: BGEO, GSE: GEB) (the “Bankâ€), Georgia’s leading bank, announced today its Q1 2011 consolidated results (IFRS based, derived from management accounts), reporting a Q1 2011 Net Income excluding Extraordinary Item of GEL 30.6 million, or GEL 0.97 per share.
In Q1 2011, the Bank’s Extraordinary Item of GEL 13.7 million was related to the disposal of BG Bank Ukraine. The Extraordinary Item included GEL 31.2 million accumulated FX loss on investment, GEL 5.7 million realized loss at disposal and GEL 23.2 million income tax benefit related to the disposal. The FX loss of GEL 31.2 million that was related to the Ukrainian Hryvna devaluation has already been recorded in the Shareholders’ Equity in 2008, 2009 and 2010, respectively. For the presentation purposes, GEL 31.2 million of accumulated FX loss recorded in the previous years has been moved from Revaluation Reserves to P&L in Q1 2011 with no effect on the Total Shareholders’ Equity. This reclassification was the main driver of the increase in Revaluation Reserves item under Shareholders’ Equity and consequently a negative impact on the P&L through the Extraordinary Item in Q1 2011. The accounting treatment of the one-off Extraordinary Item related to BG Bank disposal in Q1 2011 carries limited economic value for the Bank, therefore, Q1 2011 consolidated results and result discussions in this report exclude the Extraordinary Item. For the results discussion on a comparable basis please refer to Bank of Georgia standalone results, which do not include the BG Bank’s results for all the periods discussed
Q1 2011 highlights
- Q1 2011 consolidated Return on Average Equity (ROAE)8 grew to 17.7%, up from the consolidated ROAE of 16.7% in Q4 2010 as a result of strong Q1 2011 Net Income (excluding Extraordinary Item) of GEL 30.6 million.
-
Consolidated Net Interest Margin (NIM) declined from 7.9% in Q4 2010
to 7.1% in Q1 2011 due to excess liquidity. NIM adjusted for excess
liquidity stood at 8.3% in Q1 2011.
- Cost of funds declined to 7.5% in Q1 2011 from 7.9% in Q4 2010 and 8.6% in Q1 2010, a result of the deposit yield decline to 6.6% in Q1 2011 from 7.2% in Q4 2010 and 7.9% in Q1 2010.
- Loan yield declined to 19.3% in Q1 2011 from 19.6% in Q4 2010 and 20.1% in Q1 2010.
- Q1 2011 consolidated operating leverage grew to 20.0% on a y-o-y basis, while standalone operating leverage stood at 20.2% on a y-o-y basis during the same period.
- Q1 2011 standalone Profit Before Provisions grew 55.3% y-o-y to GEL 42.5 million, down 7.2% q-o-q
- Consolidated loan book quality improved as consolidated NPLs declined from GEL 117.6 million in Q4 2011 to GEL 90.3 million in Q1 2011. Consolidated NPL coverage ratio stood at 132.2% in Q1 2011 compared to 151.0% in Q4 2010.
- Standalone Net Loan Book increased by 0.6% q-o-q to GEL 2,215.1 million, up 30.3% y-o-y. In nominal terms, Standalone Net Loan Book grew 3.6% q-o-q.
- Standalone Client Deposits increased 8.7% q-o-q to GEL 1,966.5 million, up 57.1% y-o-y. In nominal terms, Standalone Client Deposits increased 10.5% q-o-q.
- Net Loans to Client Deposits Ratio declined to 113.4% in Q1 2011, on a consolidated basis from 117.8% in Q4 2010 and 127.5% in Q1 2010.
“Seasonally economically inactive quarter and 3.9% appreciation of Georgian Lari in Q1 2011 resulted in only 0.6% q-o-q net loan book growth on a standalone basis. In nominal terms (constant GEL/US$ exchange rate), the standalone Bank of Georgia net loan book grew 3.6% q-o-q in Q1 2011. As we continue to observe strong FX inflow into the Georgian economy, the client deposit growth rate reached 8.7% in Q1 2011. However, in nominal terms, the growth was even greater at 10.5%.
Consolidated book value grew by GEL 45.0 million in Q1 2011, driven by GEL 16.9 consolidated net income after extraordinary item and by GEL 25.0 million increase in revaluation reserves that was primarily driven by BG Bank disposal. Therefore, the book value per share increased by 6.5% q-o-q to GEL 23.52 in Q1 2011. The book value per share in US dollar terms increased by 10.6% q-o-q US$ 13.79 in Q1 2011, as Lari continued to appreciate during the quarter.
The decline of the consolidated Net Interest Margin to 7.1% from 7.9% in Q4 2010 was driven by excess liquidity, which continued to increase during Q1 2011. NIM normalized for excess liquidity remained essentially flat at 8.3% in Q1 2011 compared to the Q4 2011 normalized NIM as the contraction of cost of funds from 7.9% in Q4 2010 to 7.5% in Q1 2011 offset the decline of loan yield from 19.6% in Q4 2010 to 19.3% in Q1 2011. The decrease of cost of funds during the quarter was driven by the decline of deposit yields from 7.2% in Q4 2010 and 7.9% in Q1 2010 to 6.6% in Q1 2011.
Despite the decline of consolidated NIM, Q1 2011 operating leverage both on a consolidated and standalone basis, exceeded 20% level on a year-on-year basis. Consolidated revenue grew 20.1%y-o-y, while costs were largely flat compared to the same period last year, mostly due to the BG Bank disposal. On a standalone basis, revenue grew 31.7% y-o-y, while costs grew 11.3% y-o-y for the same period. Pre-provision profit grew by 57.6% y-o-y on a consolidated and 55.3% y-o-y on a standalone basis.
We observed further decline in NPLs in Q1 2011 on consolidated basis, which translated into significant improvements in cost of risk. On a consolidated basis cost of risk declined to 0.8% in Q1 2011 from 1.8% in Q4 2010. Improvements in efficiency and cost of risk combined with the BG Bank’s disposal, resulted in the Q1 2011 Net Income growth by 82.4% on a year-on-year and 19.0% growth on quarter-on-quarter basis, boosting basic EPS growth from GEL 0.82 in Q4 2010 to GEL 0.97 in Q1 2011. In US dollar terms, the EPS growth was even sharper as it grew 23.6% q-o-q from US$0.46 to US$0.57â€, commented Giorgi Chiladze, Deputy Chief Executive Officer, Finance.
Q1 2011 summary of the Bank’s consolidated results
In Q1 2011, the Bank’s Total Operating Income (Revenue) increased 20.1% y-o-y to GEL 91.1 million, driven by 25.7% y-o-y growth of Net Interest Income to GEL 56.9 million and 11.7% y-o-y growth of Net Non-Interest Income to GEL 34.2 million. On a quarterly basis, Revenue was down by 4.3% due to the exclusion of revenues generated by BG Bank following its disposal, 1.0% q-o-q decline in Net Interest Income, a result of excess liquidity that kept growing during the quarter and the 9.3% q-o-q decline of Net Non-Interest Income. The decline in Non-Interest income was related to both BG Bank disposal and the seasonality slowdown of business activity in the first quarter of the year compared to the preceding quarter. The strong client deposit growth rate on a standalone basis (8.7% q-o-q) during the quarter, which outpaced the standalone Net Loan Book growth rate (0.6% q-o-q) resulted in the further increase in excess liquidity of the Bank on a consolidated basis, bringing down the Q1 2011 Net Interest Margin (NIM) to 7.1% from the NIM of 7.9% in Q4 2010.
On a year-on-year basis, the Bank’s 11.7% y-o-y growth of Q1 2011 Net Non-Interest Income was driven by the growth of most of the non-interest income items compared to the same period last year. Net Fees and Commission Income grew 16.2% y-o-y to GEL 12.0 million (down 14.6% q-o-q), Net Income from Documentary Operations grew by 60.9% y-o-y to GEL 3.5 million, (up 7.4% q-o-q) and Net Foreign Currency Related Income increased 30.2% y-o-y to GEL 9.6 million, (up 1.3% q-o-q). Net Other Non-Interest Income amounted to GEL 9.2 million, down 15.2% y-o-y, as the decline in net investment gains more than offset the 12.0% y-o-y growth of Net Insurance Income to GEL 4.7 million (down 6.0% q-o-q) and 61.8% y-o-y growth of Brokerage Income to GEL 0.4 million (down 72.3% q-o-q).
Total Consolidated Recurring Operating Costs for the quarter decreased by 7.2% q-o-q to GEL 47.3 million, (up 2.2% y-o-y), with the decline partially attributed to the BG Bank disposal. Personnel Costs on a consolidated basis decreased 5.1% q-o-q to GEL 25.7 million, representing 28.2% of the Bank’s Revenue, down from 30.8% in Q1 2010. Normalized Net Operating Income of GEL 43.8 million was up 48.0% y-o-y (down 1.0% q-o-q), resulting in the improved consolidated Normalized Cost/Income Ratio of 51.9% compared to the Normalized Cost/Income ratio of 53.5% in Q4 2010 and 61.0% in Q1 2010.
The Bank’s consolidated Net Provision Expense for the quarter declined to GEL 5.2 million, down from Net Provision Expense of GEL 10.8 million and GEL 7.4 million in Q4 2010 and Q1 2010, respectively. Consolidated Cost of Risk for the quarter stood at 0.8% a decrease from 1.8% in Q4 2010.
On 31 March 2011, the Bank’s consolidated Total Assets stood at GEL 4,049.2 million, up 29.6% y-o-y and down 1.2% from 31 December 2010 when Total Assets included BG Bank’s assets. Reflecting the disposal of BG Bank, the Bank’s consolidated Net Loan Book was down by 5.4% q-o-q to GEL 2,241.9 million, up 26.1% y-o-y, while consolidated Client Deposits of GEL 1,976.9 million were 1.7% lower than at 31 December 2010, and 41.8% higher than consolidated Client Deposits on 31 March 2010. In Q1 2011 Loan Loss Reserves of GEL 119.3 million declined to 5.1% of consolidated Gross Loan Book from 7.0% in Q4 2010. Consolidated NPLs of GEL 90.3 million improved considerably by 23.2% q-o-q, reflecting the exclusion of BG Bank’s NPLs in Q1 2011. As of 31 March 2011, consolidated NPLs represented 3.8% of the consolidated gross Loan Book down from the same ratio of 4.6% in Q4 2010. The consolidated NPL Coverage ratio for the quarter stood at 132.2%.
The Bank’s consolidated Book Value per Share on 31 March 2011 stood at GEL 23.52 (US$ 13.79), compared to GEL 22.10 (US$ 12.46) as at 31 December 2010 and GEL 19.53 (US$ 11.17) as of 31 March 2010.
JSC Bank of Georgia (standalone) results
Bank of Georgia on a standalone basis reported Q1 2011 Net Income before Extraordinary Item of GEL 31.5 million, an increase of GEL 18.7 million, or 145.7%, compared to the standalone Net Income in Q1 2010. Q1 2011 Net Income grew by GEL 1.6 million, or 5.5%, compared to the Q4 2010 standalone Net Income.
In Q1 2011 all revenue items contributed to the 31.7% year-on-year growth of the standalone Total Operating Income (Revenue) to GEL 78.2 million. The growth was driven by 29.7% y-o-y increase of Net Interest Income to GEL 55.2 million, a result of the standalone loan book (net) growth of 30.3% y-o-y. On a quarterly basis, standalone Net Interest Income grew 0.4% as the 6.0% q-o-q growth of Interest Income more than offset the 11.9% q-o-q growth of Interest Expense. The rise in interest expense during the quarter, was a result of strong q-o-q growth of standalone Client Deposits, which grew 8.7%-q-o-q outpacing the 0.6% q-o-q growth rate of standalone net loan book. As a result, the increased excess liquidity during the quarter led to the decline of standalone NIM to 7.2% in Q1 2011 from the standalone NIM of 8.0% in Q4 2010.
Standalone Net Non-Interest Income increased 36.9% y-o-y to GEL 23.0 million, driven by the 17.1% y-o-y growth of Net Fees and Commission Income to GEL 10.0 million, 64.4% y-o-y increase of Net Income from Documentary Operations to GEL 3.4 million and 60.1% y-o-y increase of Net Foreign Currency Related Income to GEL 9.0 million. Reflecting the seasonal slowdown of the overall business activity in the first quarter in 2011 compared the fourth quarter 2010, the standalone Net Non-Interest Income declined by 9.2% q-o-q, predominantly affected by the 15.3% decline of the Net Fees and Commission Income in Q1 2011. The 9.2% q-o-q decline of Net Non-Interest Income more than offset the 0.4% q-o-q growth of Net Interest Income resulting the 2.6% q-o-q decline in standalone Revenue compared to the prior quarter.
As a result of continued cost discipline in procurement process and operating expenses, Bank of Georgia’s standalone Q1 2011 Recurring Operating Costs of GEL 34.2 million grew 11.3% y-o-y, or by one third of the rate of the standalone Revenue growth for the same period. On a quarterly basis, standalone Operating Costs declined by 0.2%. Normalized Net Operating Income (NNOI) for the quarter reached GEL 44.0 million, up by GEL 15.4 million, or 53.7% y-o-y.
The improved efficiency and Revenue growth on a yearly basis translated into the standalone positive operating leverage of 20.2% y-o-y. Bank of Georgia’s standalone Cost/Income ratio stood at 45.6% in Q1 2011 compared to 42.9% in Q4 2010 and 53.9% in Q1 2010. Due to the combination of Loan Book growth and improved operating performance, Profit Before Provisions grew by 55.3% y-o-y to GEL 42.5 million, down 7.2% q-o-q. The Bank’s Net Provision Expense on a standalone basis decreased from GEL 9.5 million in Q4 2010 to GEL 5.6 million in Q1 2011.
As of 31 March 2011, Bank of Georgia’s standalone Total Assets stood at GEL 3.9 billion, up 29.7% y-o-y and down 0.3% q-o-q, predominantly due to the reduction in net Investments in Other Business Entities by GEL 175.9 million mostly related to the BG Bank’s disposal. Bank of Georgia’s standalone Net Loan Book increased 30.3% y-o-y to GEL 2,215.1 million driven by 35.9% y-o-y increase of the Corporate Net Loan Book to GEL 1,209.5 million and 25.5% y-o-y growth of Retail Net Loan Book to GEL 969.6 million. On a quarterly basis, standalone Net Loan Book increased by 0.6%, while in nominal terms, the q-o-q growth reached 3.6%. Standalone NPLs stood at GEL 87.6 million and represented 3.8% of the total gross loan book, an increase from the same ratio of 3.5% in Q4 2010, when the NPLs amounted to GEL 81.2 million on a standalone basis.
As of the Q1 2011, the standalone Client Deposits amounted to GEL 1,966.5 million, representing an increase of GEL 158.0 million, or 8.7% during Q1 2011, up GEL 715.0 million, or 57.1% y-o-y. In nominal terms, the standalone Client Deposits growth amounted to 10.5% q-o-q. The growth was primarily driven by the Retail and Wealth Management Client Deposits, which grew 12.7% q-o-q and 47.0% y-o-y and 11.1% q-o-q and 61.0% y-o-y, respectively. The CB Client Deposits were up 6.0% q-o-q and 62.5% y-o-y.
As of 31 December 2010 Bank of Georgia on a standalone basis held market shares of 36.2%, 35.9%, and 32.2% by total assets, gross loans, and client deposits, respectively in Georgia. Since 31 December 2009, the Bank gained market shares of 3.2% by assets, 4.1% by gross loans and 3.9% by client deposits9.
The business segment discussion set forth below is derived from IFRS-based management reports. Business segment results of RB, CB and WM represent Bank of Georgia’s standalone performance and do not include intercompany eliminations.
Retail Banking (RB)
| GEL millions, unless otherwise noted | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change Q-O-Q | Â | Change Y-O-Y | |
| Total operating income (Revenue) | 42.5 | 46.9 | 32.8 | -9.4% | 29.7% | ||||||
| Total recurring operating costs | 21.9 | 22.5 | 20.2 | -2.9% | 8.1% | ||||||
| Net income / (Loss) | 21.3 | 15.9 | 2.1 | 34.6% | NMF | ||||||
| Loans to clients, gross | 1,008.9 | 1,023.3 | 846.6 | -1.4% | 19.2% | ||||||
| Loans to clients, net | 969.6 | 974.3 | 772.5 | -0.5% | 25.5% | ||||||
| Client deposits | 609.5 | 540.9 | 414.7 | 12.7% | 47.0% | ||||||
| Â |
Discussion of results
In Q1 2011, RB Revenues decreased 9.4% q-o-q (up 29.7% y-o-y) to GEL 42.5 million, driven predominantly by the 7.8% q-o-q decline and 33.3% y-o-y growth of RB Net Interest Income to GEL 31.4 million. RB Interest Expense grew 8.3% q-o-q to GEL 28.1 million, while RB Interest Income declined 0.8% q-o-q to GEL 59.5 million as RB client deposits continued to grow during the quarter as compared to the RB loan book which remained largely flat. RB Loan Yield Excluding Provisions grew from 23.4% in Q4 2010 to 23.5% in Q1 2011. RB Net Non-Interest Income during the quarter decreased by 13.8% q-o-q (up 20.5% y-o-y) to GEL 11.1 million, mostly driven by 13.4% q-o-q decrease of RB Net Fee and Commission Income to GEL 8.5 million, up 17.5%- y-o-y. The decline was attributed to the seasonality effect. The year-on-year growth was a result of the successful diversification of fee income sources in 2010. Continuing the trend of previous quarter, RB Recurring Operating Costs decreased by 2.9% q-o-q to GEL 21.9 million (up 8.1% y-o-y). RB Net Provision Reversal in Q1 2011 amounted to GEL 4.4 million, compared to the Net Provision Expense of GEL 4.8 million in Q4 2010. RB Net Income for Q1 2011 amounted to GEL 21.3 million, contributing 67.7% to the standalone Net Income.
RB Net Loans remained flat during Q1 2011 amounting GEL 969.6 million, up 25.5% y-o-y. The constrained growth of the RB loan book has been largely attributed to the decline in mortgage lending compared to the previous quarters, affected by the limited supply of new housing, a result of financial difficulties of the top real estate developers in the country. The mortgage loans issued in Q1 2011 amounted to GEL 27.8 million, down from GEL 35.0 million mortgage loans issued in Q4 2010 and GEL 55.2 million in Q3 2010. RB Client Deposits grew 12.7% q-o-q and 47.0% y-o-y to GEL 609.5 million, driven primarily by the growth of time deposits.
Highlights
- Issued 42,316 debit cards, down 44.5% q-o-q, in Q1 2011 bringing the total debit cards outstanding to 509,636, up 2.7% q-o-q.
- Issued 11,469 credit cards of which 8,788 American Express cards in Q1 2011. A total of 67,499 American Express cards were issued since the launch in November 2009. The total number of credit cards outstanding amounted to 105,354 as of 31 March 2011.
- Increased number of branches from 142 in Q4 2010 to 143 and number of ATMs from 405 to 408 in Q1 2011.
- Outstanding number of RB clients reached 845,391, up 2.6% q-o-q up 4.2% y-o-y.
- Acquired 402 new clients in Solo business line, mass affluent sub-brand, in Q1 2011, of which 112 new clients joined in Q1 2011. As of 31 December, the number of Solo clients reached 2,683. Introduced Premium Deposit for Solo Clients.
- Number of SMS Loans available for the payroll clients through ATMs, launched in Q4 2010, amounted to 6,234 and aggregate SMS loans outstanding reached GEL 10 million as of 31 March 2011.
- Increased Point of Sales (POS) footprint: As of 31 March 2011, 108 desks at 218 contracted merchants, up from 99 desks and 177 merchants at the end of Q4 2010 when the Bank re-entered POS market in Q4 2010. POS loans outstanding reached GEL 7.4 million.
- RB Loan Yield Excluding Provisions amounted to 23.5% in Q1 2011 (23.4% in Q4 2010) and RB Deposit Yield amounted to 7.0% in Q1 2011 (8.1% in Q1 2010).
- Consumer loan originations of GEL 65.4 million (down 10.0% q-o-q and up 36.2% y-o-y) resulted in consumer loans outstanding in the amount of GEL 168.9 million as of 31 March 2011, up 44.7% y-o-y.
- Micro loan originations of GEL 93.5 million (down 9.2% q-o-q and up 81.2% y-o-y) resulted in micro loans outstanding in the amount of GEL 248.7 million as of 31 March 2011, up 106.1% y-o-y.
- Mortgage loans originations of GEL 27.8 million (down 20.6% q-o-q and up 7.6% y-o-y) resulted in mortgage loans outstanding in the amount of GEL 346.8 million as of 31 March 2011, down 2.5% y-o-y and down 6.4% q-o-q.
The total RB loan originations and card issuance declined compared to Q4 2010 due to the seasonality effect.
Corporate Banking (CB)
| GEL millions, unless otherwise noted | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change Q-O-Q | Â | Change Y-O-Y | |
| Total operating income (Revenue) | 33.8 | 32.6 | 25.3 | 3.6% | 33.7% | ||||||
| Total recurring operating costs | 11.4 | 10.4 | 9.5 | 9.2% | 19.7% | ||||||
| Net income | 9.2 | 14.5 | 8.4 | -36.5% | 9.7% | ||||||
| Loans to clients, gross | 1,286.9 | 1,259.8 | 951.0 | 2.2% | 35.3% | ||||||
| Loans to clients, net | 1,209.5 | 1,190.7 | 890.0 | 1.6% | 35.9% | ||||||
| Client deposits | 1,066.2 | 1,006.0 | 656.1 | 6.0% | 62.5% | ||||||
| Â |
Discussion of results
CB Revenues increased 3.6% q-o-q to GEL 33.8 million (up 33.7% y-o-y), driven by the 8.5% q-o-q increase of Net Interest Income to GEL 22.2 million (up 23.0% y-o-y), as CB Interest Expense grew 20.8% q-o-q to GEL 30.5 million (up 41.7% y-o-y) and CB Interest Income grew 15.3% q-o-q to GEL 52.7 million (up 33.2% y-o-y). Due to seasonality effect, CB Net Non-Interest income decreased 4.5% q-o-q (up 60.2% y-o-y) a result of the 25.9% q-o-q decline in CB Net Fee and Commission Income to GEL 1.3 million (up 13.3% y-o-y) and 5.8% q-o-q decline in CB Net Foreign Currency related income to GEL 6.5 million (up 72.6% y-o-y. CB Income from Documentary Operations increased by 1.4% q-o-q to GEL 3.3 million (up 55.7% y-o-y). CB Recurring Operating Costs amounted to GEL 11.4 million, a 9.2% increase q-o-q and 19.7% increase y-o-y). CB Net Provision Expense for the quarter amounted to GEL 10.2 million, an increase compared to GEL 4.8 million Net Provision Expense in Q4 2010. CB Net Income for Q1 2011 amounted to GEL 9.2 million, contributing 29.2% to the standalone Net Income for the quarter.
CB gross loans increased 2.2% q-o-q to GEL 1,286.9 million (up 35.3% y-o-y), while CB Client Deposits grew 62.5% y-o-y to GEL 1,066.2 million, up 6.0% q-o-q.
Highlights
- CB Loan Yield Excluding Provisions amounted to 16.7% in Q1 2011 (16.2% in Q4 2010) and CB Deposit Yield amounted to 6.0% in Q1 2011 (6.2% in Q1 2010).
- Increased the number of corporate clients using the Bank’s payroll services from 1,737 as of Q4 2010 to 1,890 in Q1 2011. As of 31 March 2011, the number of individual clients serviced through the corporate payroll programs administered by the Bank amounted to 161,418.
Wealth Management (WM)
| GEL millions, unless otherwise noted | Q1 2011 | Q4 2010 | Q1 2010 | Change Q-O-Q | Change Y-O-Y |
| Total operating income (Revenue) | 1.9 | 0.7 | 1.3 | 154.1% | 44.8% |
| Total recurring operating costs | 1.0 | 1.4 | 1.0 | -26.8% | -3.5% |
| Net income / (Loss) | 1.0 | (0.5) | 2.3 | NMF | NMF |
| Loans to clients, gross | 37.7 | 39.8 | 40.6 | -5.2% | -7.1% |
| Loans to clients, net | 36.1 | 37.6 | 37.9 | -4.0% | -4.8% |
| Client deposits | 290.8 | 261.6 | 180.7 | 11.1% | 61.0% |
Discussion of results
WM Client Deposits continued to grow reaching GEL 290.8 million, up 11.1% q-o-q and up 61.0% y-o-y, while WM Net Loan Book decreased 4.0% q-o-q to GEL 36.1 million. WM Client Deposits from non-resident clients continued to grow during the quarter, reaching GEL 197.7 million by Q1 2011, (up 15.8% q-o-q). Client Deposits from non-resident clients accounted for 69.5% and 62.9% of Total WM Client Deposits as of 31 March 2011 and 31 March 2010 respectively.
Insurance
| GEL millions, unless otherwise noted | Q1 2011 | Q4 2010 | Q1 2010 | Change Q-O-Q | Change Y-O-Y |
| Total operating income (Revenue) | 5.0 | 5.5 | 4.6 | -8.8% | 9.9% |
| Total recurring operating costs | 3.4 | 4.2 | 3.1 | -20.3% | 7.6% |
| Net income | 1.2 | 1.8 | 1.1 | -30.5% | 15.3% |
| Gross premiums written | 18.7 | 11.5 | 19.0 | 62.4% | -1.4% |
Discussion of results
Standalone Revenue of Aldagi BCI (ABCI), the Bank’s wholly-owned insurance subsidiary, grew 9.9% y-o-y to GEL 5.0 million, (down 8.8% q-o-q), with standalone Gross Premiums Written up 62.4% q-o-q to GEL 18.7 million. Standalone Operating Costs of GEL 3.4 million were down 20.3% q-o-q (up 7.6% y-o-y). ABCI’s Combined Ratio, decreased from 88.5% in Q1 2010 to 85.9% in Q1 2011. ABCI’s Q1 2011 Net Income of GEL 1.2 million was a 30.5% decrease q-o-q up 15.3% y-o-y.
Total Assets amounted to GEL 94.3 million, while Total Liabilities reached GEL 71.1 million as at 31 March 2011.
Highlights
- ROAE for the quarter amounted to 21.4% in Q1 2011, unchanged from the ROAE of the same period last year.
- Launched new retail health insurance product integrated with ABCI’s outpatient clinics.
- Rolled out insurance Agency Network with 300 agents.
- Recruited CEO, Ekaterina Shavgulidze for its healthcare business in line with the strategy of vertically integrating health insurance business. Before joining Aldagi BCI, Ekaterina worked as CFO for Central Asia for AstraZeneca. Ekaterina holds MBA degree from Wharton Business School.
Belaruskiy Narodniy Bank, Belarus (BNB)
| GEL millions, unless otherwise noted | Q1 2011 | Q4 2010 | Q1 2010 | Change Q-O-Q | Change Y-O-Y |
| Total operating income (Revenue) | 4.2 | 3.6 | 2.9 | 14.5% | 42.2% |
| Total recurring operating costs | 3.1 | 3.1 | 1.8 | -0.9% | 74.6% |
| Net income | 0.8 | 0.5 | 0.5 | 44.3% | 39.6% |
| Loans to clients gross | 84.1 | 76.8 | 32.3 | 9.5% | 160.1% |
| Loans to clients, net | 83.2 | 75.6 | 31.0 | 9.9% | 167.8% |
| Client deposits | 37.1 | 29.6 | 11.6 | 25.5% | NMF |
Discussion of results
In Q1 2011 BNB’s Total Operating Income increased to GEL 4.2 million, up 14.5% q-o-q (up 42.2% y-o-y), mostly driven by the 31.2% q-o-q increase in Net Non-Interest Income to GEL 1.5 million (up 135.6% y-o-y) a result of the 79.7 % q-o-q increase of Net Foreign Currency Related income to GEL 908 thousand and 25.9% q-o-q increase in Net Income from Documentary Operations to GEL 51 thousand. BNB’s Net Fee and Commissions Income declined 12.6% q-o-q to GEL 472 thousand (up 104.5% y-o-y). ) BNB’s Net Interest Income increased 7.1% q-o-q to GEL 2.7 million (up 17.2% y-o-y) as Interest Income increased by 4.5% q-o-q to GEL 3.2 million and Interest Expense decreased by 8.1% to GEL 0.5 million. In Q1 2011, BNB’s Recurring Costs decreased 0.9% q-o-q to GEL 3.1 million. BNB’s Net Provision Expense for the quarter amounted to GEL 71 thousand as compared to the Net Provision Reversal of GEL 200 thousand in Q4 2010. BNB posted Net Income of GEL 753 thousand as compared to Net Income of GEL 521 thousand in Q4 2010 and Net Income of GEL 539 thousand in Q1 2010.
In Q1 2011 BNB’s Gross Loans increased by 9.5% q-o-q to GEL 84.1 million, up 160.1% y-o-y. On 31 March 2011, Total Assets stood at GEL 119.2 million, down 5.7% q-o-q and up 49.2% y-o-y. Client Deposits amounted to GEL 37.1 million, up 25.5% q-o-q. Total Liabilities of BNB stood at GEL 60.4 million, down 7.3% q-o-q up 191.3% y-o-y.
Highlights
- Increased the number of corporate clients by 28.8% y-o-y to 1,555 as of 31 March 2011.
- Increased the number of corporate clients using the BNB’s payroll services by 22.7% q-o-q to 259 as of 31 March 2011.
- Two new branches opened in densely populated Minsk areas.
- Vitebsk branch has been relocated to newly renovated building in the city’s historic centre.
- Expanded the functionality of BNB-issued cards and on-line banking.
- Two types of new car loan launched to meet soaring demand ahead of scheduled vehicle import tariff hike.
Comment:
“Continued foreign currency inflow puts pressure on the Georgian Lari to appreciate, while the National Bank of Georgia’s balance sheet is getting stronger as net FX reserves continued to grow during the seasonally economically inactive quarter. Year-to-date Georgian Lari appreciated 7.1% against the US$. Strong macro fundamentals and growth trends of Georgian economy is translating into significant rerating of Georgia sovereign risk observed during the new Georgia Eurobond issuance in April 2011. The successful placement of new Georgia US$ 500 million 10-year benchmark Eurobonds in April 2011 was a clear demonstration of the increased investor confidence towards the country. The deal was 5.3 times oversubscribed by 149 accounts, which in turn translated into 7.125% yield or 357 bps over 10-year UST or 37.5 bps lower yield than the existing Georgia shorter term 2013 Eurobonds. The pricing also resulted in 148 bps tighter spread than the existing bond due 2013, which was traded at 494 bps over swaps prior to the new placement. The achieved pricing on the new 10-year Eurobond is materially inside the other recent and similarly rated sovereign issuance from the region.
Two noticeable trends are worth highlighting from bank’s performance in Q1 2011. Firstly, by achieving 17.7% ROAE in Q1 2011, we are getting closer to our target 20% plus ROAE. Secondly, structural improvement of the liability side of the balance sheet continues to demonstrate positive trends. Deposit growth rate continues to outpace loan book growth rate, which resulted in continuation of decreasing trend of net loan deposit ratio, which amounted to 113% in Q1 2011. This trend provides us with the opportunity to replace more expensive wholesale funding currently yielding 9.0% with cheaper deposits yielding 6.6%.
We continue our efficient growth path by achieving 20% plus operating leverage y-o-y in Q1 2011, while quality of loan book continues to improve with cost of risk decreasing to 0.8% in Q1 2011 on a consolidated basis from 1.8% in Q4 2010,†commented Irakli Gilauri, Chief Executive Officer.
1 Compared to Q4 2010; growth calculations based on GEL values.
2 Compared to the respective period in 2010
3 Revenue includes Net Interest Income and Net Non-Interest Income.
4 Normalized for Net Non-Recurring Income/(Costs).
5 Net income/(Loss) excludes Extraordinary Item.
6 BIS Tier I Capital Adequacy Ratio equals Consolidated Tier I Capital as of the period end divided by Total Consolidated Risk Weighted Assets as of the same date, both calculated in accordance with the requirements of Basel Accord I.
7 BIS Total Capital Adequacy Ratio equals Total Consolidated Capital as of the period end divided by Total Consolidated Risk Weighted Assets as of the same date, both calculated in accordance with the requirements of Basel Accord I
8 ROAE excluding minority interest and Extraordinary Item.
9 All data according to the NBG as of 31 December 2010
About Bank of Georgia
Bank of Georgia is the leading
Georgian bank offering a broad range of corporate banking, retail
banking, wealth management, brokerage and insurance services to its
clients in Georgia, brokerage services in Ukraine and banking services
in Belarus. Bank of Georgia is the largest bank in Georgia by assets,
loans, deposits and equity, with 36% market share by total assets (all
data according to the NBG as of 31 December 2010). The Bank has 143
branches and more than 1.2 million retail and corporate current accounts.
Bank of Georgia has, as of the date hereof, the following credit ratings:
| Standard & Poor’s |  | ‘B/B’ |
| FitchRatings | ‘B+/B’ | |
| Moody’s | ‘B1/NP’ (FC) & ‘Ba3/NP’ (LC) |
For further information, please visit www.bog.ge/ir or contact:
| Irakli Gilauri | Â | Giorgi Chiladze | Â | Macca Ekizashvili | |
| Chief Executive Officer | Deputy CEO, Finance | Head of Investor Relations | |||
| +995 32 444 109 | +995 32 444 249 | +44 (0) 203 178 4052 | |||
This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities. Certain statements in this news report are forward-looking statements and, as such, are based on the management’s current expectations and are subject to uncertainty and changes in circumstances.
The financial information as of Q1 2010 and Q1 2011 contained in this news report is unaudited, derived from IFRS-based management reports and reflects the best estimates of management. The Bank’s actual results may differ from the amounts reflected herein as a result of various factors
STANDALONE Q1 2011 SEGMENT INCOME STATEMENT DATA
| Â | CB | Â | RB | Â | WM | Â | CC/ Eliminations | Â | Total | ||||||||||||
| GEL millions, unless otherwise noted | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | ||||||
| Interest Income | 52.7 | 39.6 | 59.5 | 45.7 | 8.4 | 5.9 | (7.1) | (3.7) | 113.4 | 87.5 | |||||||||||
| Interest Expense | 30.5 | 21.5 | 28.1 | 22.2 | 6.7 | 4.9 | (7.1) | (3.7) | 58.2 | 44.9 | |||||||||||
| Net Interest Income | 22.2 | 18.0 | 31.4 | 23.6 | 1.7 | 1.0 | - | - | 55.2 | 42.6 | |||||||||||
| Net Non-Interest Income | 11.6 | 7.3 | 11.1 | 9.2 | 0.2 | 0.3 | - | - | 23.0 | 16.8 | |||||||||||
| Total Operating Income (Revenue) | 33.8 | 25.3 | 42.5 | 32.8 | 1.9 | 1.3 | - | - | 78.2 | 59.4 | |||||||||||
| Total Recurring Operating Costs | 11.4 | 9.5 | 21.9 | 20.2 | 1.0 | 1.0 | - | - | 34.2 | 30.8 | |||||||||||
| Normalized Net Operating Income / (Loss) | 22.4 | 15.8 | 20.7 | 12.6 | 0.9 | 0.2 | - | - | 44.0 | 28.6 | |||||||||||
| Net Non-Recurring Income / (Costs) | (0.7) | (0.5) | (0.7) | (0.7) | (0.02) | (0.02) | - | - | (1.4) | (1.2) | |||||||||||
| Net Provision Expense / (Reversal) | 10.2 | 5.4 | (4.4) | 9.4 | (0.3) | (2.5) | - | - | 5.6 | 12.3 | |||||||||||
| Net Income / (Loss) | 9.2 | 8.4 | 21.3 | 2.1 | 1.0 | 2.3 | - | - | 31.5 | 12.8 | |||||||||||
| Â | |||||||||||||||||||||
STANDALONE Q1 2011 SEGMENT BALANCE SHEET DATA
| Â | CB | Â | RB | Â | WM | Â | CC/ Eliminations | Â | Total | ||||||||||||
| GEL millions, unless otherwise noted | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | Q1 '11 | Â | Q1 '10 | ||||||
| Loans To Clients, Gross | 1,286.9 | 951.0 | 1,008.9 | 846.6 | 37.7 | 40.6 | - | - | 2,333.5 | 1,838.2 | |||||||||||
| Loans To Clients, Net | 1,209.5 | 890.0 | 969.6 | 772.5 | 36.1 | 37.9 | - | - | 2,215.1 | 1,700.5 | |||||||||||
| Total Assets | 1,917.3 | 1,307.8 | 1,813.8 | 1,360.7 | 41.6 | 46.4 | 162.2 | 318.3 | 3,935.0 | 3,033.1 | |||||||||||
| Client Deposits | 1,066.2 | 656.1 | 609.5 | 414.7 | 290.8 | 180.7 | - | - | 1,966.5 | 1,251.5 | |||||||||||
| Total Liabilities | 1,698.7 | 1,138.8 | 1,208.9 | 961.8 | 290.8 | 180.7 | - | - | 3,198.5 | 2,281.3 | |||||||||||
| Total Shareholders’ Equity | 317.7 | 214.0 | 250.7 | 207.9 | 5.9 | 11.7 | 162.2 | 318.3 | 736.5 | 751.9 | |||||||||||
| Total Liabilities And Shareholders’ Equity | 2,016.5 | 1,352.8 | 1,459.6 | 1,169.7 | 296.7 | 192.4 | 162.2 | 318.3 | 3,935.0 | 3,033.1 | |||||||||||
| Â | |||||||||||||||||||||
CONSOLIDATED Q1 2011 INCOME STATEMENT
| Period ended | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change4 | Â | Change4 | |||||||
| Consolidated, IFRS - based | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Q-O-Q | Y-O-Y | ||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Interest Income | 68,891 | 117,521 | 64,737 | 114,766 | 54,320 | 95,027 | 2.4% | 23.7% | |||||||||
| Interest Expense | 35,540 | 60,628 | 32,307 | 57,273 | 28,454 | 49,777 | 5.9% | 21.8% | |||||||||
| Net Interest Income | 33,351 | 56,893 | 32,431 | 57,493 | 25,866 | 45,250 | -1.0% | 25.7% | |||||||||
| Fees & Commission Income | 9,384 | 16,009 | 9,663 | 17,130 | 7,554 | 13,215 | -6.5% | 21.1% | |||||||||
| Fees & Commission Expense | 2,357 | 4,020 | 1,748 | 3,099 | 1,656 | 2,897 | 29.7% | 38.8% | |||||||||
| Net Fees & Commission Income | 7,028 | 11,989 | 7,915 | 14,031 | 5,898 | 10,318 | -14.6% | 16.2% | |||||||||
| Income From Documentary Operations | 2,253 | 3,844 | 1,930 | 3,421 | 1,519 | 2,657 | 12.4% | 44.7% | |||||||||
| Expense On Documentary Operations | 200 | 341 | 90 | 159 | 274 | 480 | 114.5% | -29.0% | |||||||||
| Net Income From Documentary Operations | 2,053 | 3,503 | 1,840 | 3,262 | 1,244 | 2,177 | 7.4% | 60.9% | |||||||||
| Net Foreign Currency Related Income | 5,601 | 9,554 | 5,321 | 9,433 | 4,196 | 7,340 | 1.3% | 30.2% | |||||||||
| Net Insurance Income / (Loss) | 2,731 | 4,659 | 2,794 | 4,954 | 2,377 | 4,159 | -6.0% | 12.0% | |||||||||
| Brokerage And Investments Banking Income | 206 | 351 | 714 | 1,266 | 124 | 217 | -72.3% | 61.8% | |||||||||
| Asset Management Income | 35 | 60 | 27 | 47 | 24 | 42 | 27.7% | 42.9% | |||||||||
| Net Investment Gains / (Losses) | 71 | 121 | 102 | 181 | 1,126 | 1,969 | -33.1% | -93.9% | |||||||||
| Other Operating Income | 2,323 | 3,962 | 2,553 | 4,526 | 2,517 | 4,404 | -12.5% | -10.0% | |||||||||
| Net Other Non-Interest Income | 5,365 | 9,153 | 6,190 | 10,974 | 6,168 | 10,791 | -16.6% | -15.2% | |||||||||
| Net Non-Interest Income | 20,047 | 34,199 | 21,266 | 37,700 | 17,507 | 30,626 | -9.3% | 11.7% | |||||||||
| Total Operating Income (Revenue) | 53,398 | 91,092 | 53,696 | 95,193 | 43,373 | 75,876 | -4.3% | 20.1% | |||||||||
| Personnel Costs | 15,058 | 25,688 | 15,262 | 27,057 | 13,365 | 23,381 | -5.1% | 9.9% | |||||||||
| Selling, General & Administrative Expenses | 5,564 | 9,491 | 5,781 | 10,249 | 5,604 | 9,803 | -7.4% | -3.2% | |||||||||
| Procurement & Operations Support Expenses | 2,001 | 3,413 | 1,909 | 3,384 | 2,005 | 3,507 | 0.9% | -2.7% | |||||||||
| Depreciation And Amortization | 3,581 | 6,109 | 3,841 | 6,810 | 3,802 | 6,651 | -10.3% | -8.1% | |||||||||
| Other Operating Expenses | 1,508 | 2,572 | 1,936 | 3,432 | 1,667 | 2,917 | -25.1% | -11.8% | |||||||||
| Total Recurring Operating Costs | 27,711 | 47,273 | 28,730 | 50,932 | 26,443 | 46,259 | -7.2% | 2.2% | |||||||||
| Normalized Net Operating Income / (Loss) | 25,687 | 43,819 | 24,967 | 44,261 | 16,930 | 29,617 | -1.0% | 48.0% | |||||||||
| Net Non-Recurring Income / (Costs) | (1,341) | (2,287) | (769) | (1,364) | (1,867) | (3,266) | 67.7% | -30.0% | |||||||||
| Profit / (Loss) Before Provisions | 24,346 | 41,532 | 24,197 | 42,897 | 15,063 | 26,351 | -3.2% | 57.6% | |||||||||
| Net Provision Expense | 3,020 | 5,151 | 6,110 | 10,831 | 4,207 | 7,360 | -52.4% | -30.0% | |||||||||
| Pre-Tax Income / (Loss) | 21,327 | 36,381 | 18,088 | 32,066 | 10,856 | 18,991 | 13.5% | 91.6% | |||||||||
| Income Tax Expense / (Benefit) | 3,415 | 5,826 | 3,601 | 6,384 | 1,278 | 2,236 | -8.7% | 160.6% | |||||||||
| Net Income / (Loss) before Extraordinary Item | 17,911 | 30,555 | 14,487 | 25,682 | 9,578 | 16,755 | 19.0% | 82.4% | |||||||||
| Extraordinary loss | (8,033) | (13,704) | - | - | - | - | NMF | NMF | |||||||||
| Net Income / (Loss) after Extraordinary Item | 9,878 | 16,851 | - | - | - | - | NMf | NMF | |||||||||
| Â | |||||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7728 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 December 2010
3 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
4 Change calculations based on GEL values
CONSOLIDATED Q1 2011 BALANCE SHEET
| Period ended | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change4 | Â | Change4 | |||||||
| Consolidated, IFRS based | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Q-O-Q | Y-O-Y | ||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Cash And Cash Equivalents | 91,443 | 155,992 | 117,489 | 208,285 | 101,688 | 177,893 | -25.1% | -12.3% | |||||||||
| Loans And Advances To Credit Institutions | 394,975 | 673,788 | 338,492 | 600,078 | 184,193 | 322,227 | 12.3% | 109.1% | |||||||||
| Mandatory Reserves With NBG / NBU / NBRB | 170,592 | 291,013 | 50,980 | 90,378 | 25,485 | 44,583 | NMF | NMF | |||||||||
| Other Accounts With NBG / NBU / NBRB | 22,232 | 37,925 | 45,513 | 80,686 | 9,447 | 16,527 | -53.0% | 129.5% | |||||||||
| Balances With And Loans To Other Banks | 202,151 | 344,850 | 241,998 | 429,014 | 149,261 | 261,117 | -19.6% | 32.1% | |||||||||
| Investment Securities: AFS & Trading Securities | 213,055 | 363,450 | 8,899 | 15,776 | 10,146 | 17,750 | NMF | NMF | |||||||||
| Investment Securities: HTM, Treasuries | - | - | 158,116 | 280,308 | 142,451 | 249,203 | -100.0% | -100.0% | |||||||||
| Loans To Clients, Gross | 1,384,180 | 2,361,272 | 1,436,293 | 2,546,261 | 1,118,824 | 1,957,270 | -7.3% | 20.6% | |||||||||
| Less: Reserve For Loan Losses | (69,959) | (119,343) | (100,140) | (177,529) | (102,880) | (179,979) | -32.8% | -33.7% | |||||||||
| Loans To Clients, Net | 1,314,221 | 2,241,929 | 1,336,153 | 2,368,732 | 1,015,943 | 1,777,291 | -5.4% | 26.1% | |||||||||
| Insurance Related Assets | 20,404 | 34,807 | 16,174 | 28,674 | 18,641 | 32,610 | 21.4% | 6.7% | |||||||||
| Investment Property | 59,396 | 101,324 | 64,022 | 113,498 | 54,522 | 95,381 | -10.7% | 6.2% | |||||||||
| Investments In Other Business Entities, Net | 3,942 | 6,725 | 4,083 | 7,238 | 4,484 | 7,844 | -7.1% | -14.3% | |||||||||
| Property And Equipment Owned, Net | 165,887 | 282,986 | 164,763 | 292,092 | 158,054 | 276,499 | -3.1% | 2.3% | |||||||||
| Intangible Assets Owned, Net | 13,526 | 23,074 | 12,521 | 22,197 | 12,662 | 22,151 | 4.0% | 4.2% | |||||||||
| Goodwill | 40,593 | 69,248 | 39,030 | 69,192 | 39,344 | 68,828 | 0.1% | 0.6% | |||||||||
| Tax Assets, Current And Deferred | 13,520 | 23,064 | 14,313 | 25,374 | 13,616 | 23,820 | -9.1% | -3.2% | |||||||||
| Prepayments And Other Assets | 42,712 | 72,862 | 38,071 | 67,493 | 30,063 | 52,592 | 8.0% | 38.5% | |||||||||
| Total Assets | 2,373,673 | 4,049,249 | 2,312,126 | 4,098,937 | 1,785,806 | 3,124,089 | -1.2% | 29.6% | |||||||||
| Client Deposits | 1,158,853 | 1,976,887 | 1,134,499 | 2,011,240 | 797,096 | 1,394,439 | -1.7% | 41.8% | |||||||||
| Deposits And Loans From Banks | 79,905 | 136,310 | 121,361 | 215,148 | 44,725 | 78,242 | -36.6% | 74.2% | |||||||||
| Borrowed Funds | 566,135 | 965,769 | 571,019 | 1,012,302 | 521,304 | 911,970 | -4.6% | 5.9% | |||||||||
| Issued Fixed Income Securities | 56,573 | 96,508 | 12,027 | 21,321 | 0 | - | NMF | - | |||||||||
| Insurance Related Liabilities | 25,281 | 43,127 | 20,918 | 37,083 | 24,415 | 42,712 | 16.3% | 1.0% | |||||||||
| Tax Liabilities, Current And Deferred | 14,429 | 24,615 | 23,007 | 40,787 | 15,602 | 27,295 | -39.6% | -9.8% | |||||||||
| Accruals And Other Liabilities | 40,131 | 68,459 | 38,583 | 68,400 | 33,015 | 57,757 | 0.1% | 18.5% | |||||||||
| Total Liabilities | 1,941,307 | 3,311,675 | 1,921,413 | 3,406,281 | 1,436,158 | 2,512,415 | -2.8% | 31.8% | |||||||||
| Share Capital - Ordinary Shares | 18,379 | 31,353 | 17,681 | 31,345 | 17,901 | 31,316 | -2.0% | -1.9% | |||||||||
| Share Premium | 280,702 | 478,850 | 269,231 | 477,293 | 274,190 | 479,668 | 0.3% | -0.2% | |||||||||
| Treasury Shares | (828) | (1,413) | (850) | (1,507) | (913) | (1,597) | -6.2% | -11.5% | |||||||||
| Revaluation And Other Reserves | 35,557 | 60,657 | 20,109 | 35,649 | 11,874 | 20,773 | 71.9% | 195.0% | |||||||||
| Retained Earnings | 71,867 | 122,598 | 21,559 | 38,219 | 27,095 | 47,400 | NMF | 158.6% | |||||||||
| Net Income / (Loss) For The Period | 9,878 | 16,851 | 46,749 | 82,876 | 9,578 | 16,755 | -79.7% | 0.6% | |||||||||
| Shareholders' Equity Excluding Minority | 415,555 | 708,896 | 374,478 | 663,875 | 339,725 | 594,315 | 6.8% | 19.3% | |||||||||
| Minority Interest | 16,811 | 28,678 | 16,235 | 28,781 | 9,923 | 17,359 | -0.4% | 65.2% | |||||||||
| Total Shareholders' Equity | 432,366 | 737,574 | 390,713 | 692,656 | 349,648 | 611,674 | 6.5% | 20.6% | |||||||||
| Total Liabilities And Shareholders’ Equity | 2,373,673 | 4,049,249 | 2,312,126 | 4,098,937 | 1,785,806 | 3,124,089 | -1.2% | 29.6% | |||||||||
| Â | |||||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7728 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 December 2010
3 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
4 Change calculations based on GEL values
STANDALONE Q1 2011 INCOME STATEMENT
| Period ended | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change4 | Â | Change4 | |||||||
| Standalone, IFRS-based | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Q-O-Q | Y-O-Y | ||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Interest Income | 66,491 | 113,427 | 60,377 | 107,035 | 49,997 | 87,465 | 6.0% | 29.7% | |||||||||
| Interest Expense | 34,106 | 58,182 | 29,335 | 52,006 | 25,642 | 44,859 | 11.9% | 29.7% | |||||||||
| Net Interest Income | 32,385 | 55,245 | 31,041 | 55,030 | 24,355 | 42,607 | 0.4% | 29.7% | |||||||||
| Fees & Commission Income | 8,195 | 13,980 | 8,803 | 15,606 | 6,349 | 11,106 | -10.4% | 25.9% | |||||||||
| Fees & Commission Expense | 2,361 | 4,028 | 2,174 | 3,855 | 1,491 | 2,608 | 4.5% | 54.4% | |||||||||
| Net Fees & Commission Income | 5,834 | 9,952 | 6,629 | 11,752 | 4,858 | 8,498 | -15.3% | 17.1% | |||||||||
| Income From Documentary Operations | 2,198 | 3,749 | 1,900 | 3,369 | 1,472 | 2,576 | 11.3% | 45.6% | |||||||||
| Expense On Documentary Operations | 178 | 304 | 86 | 153 | 274 | 480 | 99.1% | -36.6% | |||||||||
| Net Income From Documentary Operations | 2,019 | 3,445 | 1,814 | 3,216 | 1,198 | 2,096 | 7.1% | 64.4% | |||||||||
| Net Foreign Currency Related Income | 5,280 | 9,007 | 5,482 | 9,718 | 3,215 | 5,624 | -7.3% | 60.1% | |||||||||
| Other Operating Income | 326 | 557 | 335 | 593 | 314 | 549 | -6.2% | 1.5% | |||||||||
| Net Other Non-Interest Income | 326 | 557 | 335 | 593 | 314 | 549 | -6.2% | 1.5% | |||||||||
| Net Non-Interest Income | 13,460 | 22,961 | 14,259 | 25,278 | 9,584 | 16,766 | -9.2% | 36.9% | |||||||||
| Total Operating Income (Revenue) | 45,844 | 78,206 | 45,300 | 80,308 | 33,939 | 59,373 | -2.6% | 31.7% | |||||||||
| Personnel Costs | 10,928 | 18,642 | 10,364 | 18,374 | 8,847 | 15,476 | 1.5% | 20.5% | |||||||||
| Selling, General & Administrative Expenses | 3,883 | 6,623 | 3,657 | 6,484 | 3,459 | 6,051 | 2.1% | 9.5% | |||||||||
| Procurement & Operations Support Expenses | 1,685 | 2,874 | 1,471 | 2,607 | 1,629 | 2,849 | 10.3% | 0.9% | |||||||||
| Depreciation And Amortization | 2,935 | 5,006 | 3,144 | 5,574 | 3,141 | 5,495 | -10.2% | -8.9% | |||||||||
| Other Operating Expenses | 639 | 1,090 | 712 | 1,263 | 510 | 892 | -13.7% | 22.2% | |||||||||
| Total Recurring Operating Costs | 20,069 | 34,236 | 19,349 | 34,302 | 17,586 | 30,764 | -0.2% | 11.3% | |||||||||
| Normalized Net Operating Income / (Loss) | 25,775 | 43,969 | 25,951 | 46,006 | 16,354 | 28,609 | -4.4% | 53.7% | |||||||||
| Net Non-Recurring Income / (Costs) | (833) | (1,421) | (91) | (161) | (697) | (1,220) | NMF | 16.5% | |||||||||
| Profit / (Loss) Before Provisions | 24,942 | 42,548 | 25,860 | 45,845 | 15,656 | 27,389 | -7.2% | 55.3% | |||||||||
| Net Provision Expense | 3,267 | 5,573 | 5,386 | 9,549 | 7,036 | 12,309 | -41.6% | -54.7% | |||||||||
| Pre-Tax Income / (Loss) | 21,675 | 36,975 | 20,474 | 36,296 | 8,620 | 15,080 | 1.9% | 145.2% | |||||||||
| Income Tax Expense / (Benefit) | 3,211 | 5,478 | 3,636 | 6,445 | 1,293 | 2,262 | -15.0% | 142.2% | |||||||||
| Net Income / (Loss) before Extraordinary item | 18,464 | 31,497 | 16,838 | 29,850 | 7,327 | 12,818 | 5.5% | 145.7% | |||||||||
| Extraordinary loss | (8,033) | (13,704) | - | - | - | - | NMF | NMF | |||||||||
| Net Income / (Loss) after Extraordinary item | 10,431 | 17,793 | - | - | - | - | NMF | NMF | |||||||||
| Â | |||||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7728 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 December 2010
3 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
4 Change calculations based on GEL values
STANDALONE Q1 2011 BALANCE SHEET
| Period ended | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change4 | Â | Change4 | |||||||||
| Standalone, IFRS-based | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Q-O-Q | Y-O-Y | ||||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Cash And Cash Equivalents | 79,908 | 136,315 | 86,021 | 152,499 | 72,796 | 127,350 | -10.6% | Â | 7.0% | ||||||||||
| Loans And Advances To Credit Institutions | 391,767 | 668,315 | 332,320 | 589,137 | 179,742 | 314,441 | 13.4% | 112.5% | |||||||||||
| Mandatory Reserves With NBG / NBU / NBRB | 170,437 | 290,748 | 48,886 | 86,665 | 23,101 | 40,413 | NMF | NMF | |||||||||||
| Other Accounts With NBG / NBU / NBRB | 17,756 | 30,291 | 30,997 | 54,951 | 9,002 | 15,748 | -44.9% | 92.3% | |||||||||||
| Balances With And Loans To Other Banks | 203,574 | 347,276 | 252,437 | 447,520 | 147,639 | 258,280 | -22.4% | 34.5% | |||||||||||
| Investment Securities: AFS & Trading Securities | 206,040 | 351,483 | - | - | - | - | NMF | - | |||||||||||
| Investment Securities: HTM, Treasuries | - | - | 158,116 | 280,308 | 142,451 | 249,203 | -100.0% | -100.0% | |||||||||||
| Loans To Clients, Gross | 1,367,891 | 2,333,485 | 1,310,295 | 2,322,891 | 1,050,756 | 1,838,192 | 0.5% | 26.9% | |||||||||||
| Less: Reserve For Loan Losses | (69,405) | (118,399) | (67,869) | (120,318) | (78,727) | (137,725) | -1.6% | -14.0% | |||||||||||
| Loans To Clients, Net | 1,298,485 | 2,215,086 | 1,242,426 | 2,202,572 | 972,029 | 1,700,468 | 0.6% | 30.3% | |||||||||||
| Investment Property | 47,181 | 80,485 | 44,717 | 79,274 | 21,633 | 37,844 | 1.5% | 112.7% | |||||||||||
| Investments In Other Business Entities, Net | 95,098 | 162,227 | 190,750 | 338,161 | 181,931 | 318,270 | -52.0% | -49.0% | |||||||||||
| Property And Equipment Owned, Net | 133,916 | 228,448 | 128,598 | 227,978 | 123,457 | 215,976 | 0.2% | 5.8% | |||||||||||
| Intangible Assets Owned, Net | 11,972 | 20,423 | 9,613 | 17,043 | 9,653 | 16,887 | 19.8% | 20.9% | |||||||||||
| Goodwill | 13,335 | 22,748 | 12,832 | 22,748 | 13,003 | 22,748 | 0.0% | 0.0% | |||||||||||
| Tax Assets, Current And Deferred | 7,971 | 13,597 | 3,721 | 6,597 | 3,485 | 6,097 | 106.1% | 123.0% | |||||||||||
| Prepayments And Other Assets | 21,012 | 35,844 | 17,685 | 31,352 | 13,636 | 23,856 | 14.3% | 50.3% | |||||||||||
| Total Assets | 2,306,684 | 3,934,972 | 2,226,799 | 3,947,669 | 1,733,817 | 3,033,139 | -0.3% | 29.7% | |||||||||||
| Client Deposits | 1,152,770 | 1,966,511 | 1,020,133 | 1,808,491 | 715,416 | 1,251,549 | 8.7% | 57.1% | |||||||||||
| Deposits And Loans From Banks | 71,057 | 121,216 | 112,339 | 199,155 | 33,702 | 58,958 | -39.1% | 105.6% | |||||||||||
| Borrowed Funds | 557,624 | 951,250 | 566,069 | 1,003,527 | 521,304 | 911,970 | -5.2% | 4.3% | |||||||||||
| Issued Fixed Income Securities | 56,573 | 96,508 | 12,027 | 21,321 | - | - | NMF | - | |||||||||||
| Tax Liabilities, Current And Deferred | 12,986 | 22,152 | 22,185 | 39,329 | 14,651 | 25,631 | -43.7% | -13.6% | |||||||||||
| Accruals And Other Liabilities | 23,932 | 40,826 | 22,144 | 39,256 | 18,949 | 33,150 | 4.0% | 23.2% | |||||||||||
| Total Liabilities | 1,874,942 | 3,198,464 | 1,754,896 | 3,111,079 | 1,304,023 | 2,281,258 | 2.8% | 40.2% | |||||||||||
| Share Capital - Ordinary Shares | 18,379 | 31,353 | 17,681 | 31,345 | 17,901 | 31,316 | 0.0% | 0.1% | |||||||||||
| Share Premium | 280,477 | 478,465 | 268,876 | 476,664 | 273,609 | 478,651 | 0.4% | 0.0% | |||||||||||
| Treasury Shares | (746) | (1,272) | (776) | (1,375) | (817) | (1,430) | -7.5% | -11.0% | |||||||||||
| Revaluation And Other Reserves | 29,927 | 51,052 | 31,427 | 55,715 | 21,890 | 38,294 | -8.4% | 33.3% | |||||||||||
| Retained Earnings | 93,274 | 159,117 | 103,389 | 183,287 | 109,885 | 192,232 | -13.2% | -17.2% | |||||||||||
| Net Income / (Loss) For The Period | 10,431 | 17,793 | 51,305 | 90,954 | 7,327 | 12,818 | -80.4% | 38.8% | |||||||||||
| Total Shareholders' Equity | 431,742 | 736,508 | 471,903 | 836,590 | 429,794 | 751,881 | -12.0% | -2.0% | |||||||||||
| Total Liabilities And Shareholders’ Equity | 2,306,684 | 3,934,972 | 2,226,799 | 3,947,669 | 1,733,817 | 3,033,139 | -0.3% | 29.7% | |||||||||||
| Â | |||||||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7728 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 December 2010
3 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
4 Change calculations based on GEL values
ALDAGI BCI Q1 2011 INCOME STATEMENT AND KEY RATIOS
| Period ended | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change4 | Â | Change4 | |||||||
| Aldagi BCI | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Q-O-Q | Y-O-Y | ||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Insurance premiums written, gross | 10,982 | 18,734 | 6,506 | 11,534 | 10,866 | 19,009 | 62.4% | -1.4% | |||||||||
| Change in unearned premium provision, gross | (1,982) | (3,380) | 2,500 | 4,431 | (2,622) | (4,587) | NMF | -26.3% | |||||||||
| Insurance premium revenue, gross | 9,000 | 15,354 | 9,006 | 15,966 | 8,244 | 14,422 | -3.8% | 6.5% | |||||||||
| Insurance premiums ceded to reinsurers | (2,129) | (3,632) | (1,477) | (2,618) | (2,707) | (4,735) | 38.8% | -23.3% | |||||||||
| Change in unearned premium provision, reinsurers share | 574 | 978 | (554) | (982) | 1,486 | 2,600 | NMF | -62.4% | |||||||||
| Insurance premiums revenue ceded to reinsurers | (1,556) | (2,654) | (2,031) | (3,600) | (1,220) | (2,135) | -26.3% | 24.3% | |||||||||
| Net insurance premiums revenue | 7,445 | 12,700 | 6,975 | 12,366 | 7,024 | 12,287 | 2.7% | 3.4% | |||||||||
| Insurance claims paid, gross | (4,281) | (7,303) | (4,221) | (7,483) | (4,390) | (7,680) | -2.4% | -4.9% | |||||||||
| Change in loss provision, gross | (70) | (119) | 212 | 375 | (255) | (446) | NMF | -73.2% | |||||||||
| Insurance claims expenses, gross | (4,351) | (7,422) | (4,009) | (7,107) | (4,645) | (8,126) | 4.4% | -8.7% | |||||||||
| Insurance claims recovered from reinsurers | 175 | 299 | 122 | 216 | 462 | 809 | 38.5% | -63.0% | |||||||||
| Change in loss provision, reinsurers share | 149 | 254 | (306) | (542) | 85 | 149 | NMF | 69.8% | |||||||||
| Insurance claims expenses recovered from reinsurers | 324 | 553 | (184) | (326) | 548 | 958 | NMF | -42.3% | |||||||||
| Net insurance claims expenses | (4,027) | (6,869) | (4,193) | (7,433) | (4,097) | (7,168) | -7.6% | -4.2% | |||||||||
| Net commission income / (expense) | (418) | (714) | (294) | (522) | (549) | (960) | 36.7% | -25.7% | |||||||||
| Net underwriting profit/(loss) | 2,999 | 5,117 | 2,488 | 4,410 | 2,377 | 4,159 | 16.0% | 23.0% | |||||||||
| Net income / (expense) from pension benefit plan | 10 | 17 | 4 | 7 | 7 | 13 | 153.7% | 28.6% | |||||||||
| Other operating income / (loss) | (33) | (56) | 198 | 351 | 172 | 302 | NMF | NMF | |||||||||
| Total operating income (revenue) | 2,976 | 5,077 | 2,690 | 4,768 | 2,557 | 4,474 | 6.5% | 13.5% | |||||||||
| Personnel costs | (1,157) | (1,973) | (1,122) | (1,989) | (1,015) | (1,776) | -0.8% | 11.1% | |||||||||
| Selling, general administrative expenses | (608) | (1,038) | (671) | (1,190) | (568) | (994) | -12.8% | 4.4% | |||||||||
| Operating taxes | (25) | (42) | (27) | (48) | (17) | (29) | -12.4% | 44.2% | |||||||||
| Depreciation and amortization expenses | (116) | (198) | (67) | (118) | (55) | (97) | 67.3% | 104.5% | |||||||||
| Other operating expenses | - | - | - | - | (15) | (26) | - | -100.0% | |||||||||
| Total recurring operating costs | (1,906) | (3,251) | (1,887) | (3,345) | (1,670) | (2,921) | -2.8% | 11.3% | |||||||||
| Normalized net operating income | 1,071 | 1,826 | 803 | 1,423 | 887 | 1,552 | 28.4% | 17.6% | |||||||||
| Interest income | 198 | 337 | 143 | 253 | 70 | 122 | 33.4% | 176.7% | |||||||||
| Interest expense | (305) | (521) | (231) | (409) | (196) | (344) | 27.3% | 51.6% | |||||||||
| Non-recurring income / (costs) | (100) | (171) | 108 | 192 | - | - | NMF | - | |||||||||
| Profit / (loss) before provisions | 863 | 1,472 | 823 | 1,459 | 761 | 1,331 | 0.9% | 10.6% | |||||||||
| Provisions expense for / (recovery of) bad debts | 20 | 34 | (213) | (377) | 82 | 144 | NMF | -76.5% | |||||||||
| Pre-tax income / (loss) | 843 | 1,438 | 1,036 | 1,836 | 678 | 1,187 | -21.7% | 21.2% | |||||||||
| Income tax expense / (benefit) | 126 | 216 | 43 | 75 | 128 | 224 | 186.0% | -3.5% | |||||||||
| Net income / (loss) | 717 | 1,222 | 993 | 1,761 | 551 | 963 | -30.6% | 26.9% | |||||||||
| Â | |||||||||||||||||
| Profitability Ratios: | |||||||||||||||||
| ROAA5 | 5.3% | 8.3% | 5.1% | ||||||||||||||
| ROEA6 | 21.4% | 32.7% | 21.4% | ||||||||||||||
| Loss (Claims) Ratio, Net7 | 54.1% | 60.1% | 58.3% | ||||||||||||||
| Expense Ratio8 | 31.8% | 25.3% | 30.2% | ||||||||||||||
| Combined Ratio, Net9 | 85.9% | 85.4% | 88.5% | ||||||||||||||
| Gross Profit Margin(note) | 33.3% | 27.6% | 28.8% | ||||||||||||||
| Net Profit Margin(note) | 8.0% | 11.0% | 6.7% | ||||||||||||||
| Liquidity Ratios: | |||||||||||||||||
| Net IPR/UPR | 90.8% | 81.1% | 83.3% | ||||||||||||||
| Working Capital | 42,681 | 38,505 | 39,362 | ||||||||||||||
| Â | |||||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7728 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 December 2010
3 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
4 Change calculations based on GEL values
5 Return On Total Assets Annualized (ROAA) equals Net Income of the period divided by Average Total Assets for the same period
6 Return On Total Equity Annualized (ROEA) equals Net Income of the period divided by Average Total Equity for the same period
7 Claims Ratio, net (same as Loss Ratio) equals Net Claims Incurred divided by Net Premiums Earned
8 Expense Ratio equals total expenses of ALDAGI-BCI divided by Net Premiums Earned
9 Combined Ratio equals Claims Ratio plus Expense Ratio
ALDAGI BCI Q1 2011 BALANCE SHEET
| Period ended | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | Â | Change4 | Â | Change4 | |||||||
| Aldagi BCI | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Q-O-Q | Y-O-Y | ||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Cash and cash equivalents | 2,319 | 3,956 | 3,320 | 5,886 | 3,185 | 5,573 | -32.8% | -29.0% | |||||||||
| Amounts due from credit institutions | 7,231 | 12,335 | 5,894 | 10,450 | 5,533 | 9,680 | 18.0% | 27.4% | |||||||||
| Investment securities: | |||||||||||||||||
| - Held-to-maturity | 12 | 21 | 12 | 21 | - | - | -0.1% | - | |||||||||
| - Available-for-sale | 2,674 | 4,561 | 2,598 | 4,606 | 2,538 | 4,439 | -1.0% | 2.7% | |||||||||
| Insurance premiums and other receivables, net | 14,891 | 25,402 | 11,256 | 19,954 | 13,463 | 23,552 | 27.3% | 7.9% | |||||||||
| Premises and equipment, net | 5,006 | 8,540 | 4,122 | 7,308 | 4,414 | 7,721 | 16.9% | 10.6% | |||||||||
| Intangible assets, net | 1,659 | 2,830 | 992 | 1,758 | 384 | 672 | 60.9% | NMF | |||||||||
| Goodwill | 463 | 790 | 297 | 526 | 286 | 500 | 50.2% | 58.0% | |||||||||
| Investments in associates | 30 | 50 | 101 | 179 | 334 | 584 | -71.8% | -91.4% | |||||||||
| Investments in non-consolidated subsidiaries | 7,602 | 12,969 | 6,130 | 10,868 | 4,687 | 8,199 | 19.3% | 58.2% | |||||||||
| Current income tax assets | 37 | 62 | 45 | 79 | 49 | 86 | -21.5% | -27.5% | |||||||||
| Deferred income tax assets | 9,411 | 16,054 | 9,056 | 16,054 | 9,177 | 16,054 | 0.0% | 0.0% | |||||||||
| Deferred acquisition costs | 841 | 1,434 | 919 | 1,629 | 764 | 1,337 | -12.0% | 7.3% | |||||||||
| Prepayments and other assets | 3,098 | 5,285 | 2,501 | 4,434 | 1,741 | 3,045 | 19.2% | 73.6% | |||||||||
| Total assets | 55,273 | 94,291 | 47,243 | 83,752 | 46,555 | 81,442 | 12.6% | 15.8% | |||||||||
| Insurance contracts | 21,083 | 35,966 | 18,314 | 32,466 | 20,183 | 35,309 | 10.8% | 1.9% | |||||||||
| Reinsurance premium payable | 4,198 | 7,161 | 2,604 | 4,617 | 4,233 | 7,405 | 55.1% | -3.3% | |||||||||
| Pension benefit obligations | 3,117 | 5,318 | 2,792 | 4,949 | 2,326 | 4,068 | 7.5% | 30.7% | |||||||||
| Borrowed funds | 8,311 | 14,178 | 6,983 | 12,379 | 6,215 | 10,872 | 14.5% | 30.4% | |||||||||
| Salaries and other employee benefits payable | 1,405 | 2,396 | 1,101 | 1,952 | 828 | 1,448 | 22.7% | 65.4% | |||||||||
| Current income tax liabilities | 63 | 107 | 17 | 30 | - | - | NMF | - | |||||||||
| Deferred income tax liabilities | 383 | 653 | 277 | 492 | 363 | 634 | 32.8% | 2.9% | |||||||||
| Accruals and other liabilities | 3,107 | 5,301 | 2,751 | 4,878 | 1,955 | 3,421 | 8.7% | 55.0% | |||||||||
| Total liabilities | 41,666 | 71,079 | 34,839 | 61,763 | 36,102 | 63,157 | 15.1% | 12.5% | |||||||||
| Share capital - ordinary shares | 4,246 | 7,243 | 4,086 | 7,243 | 4,140 | 7,243 | 0.0% | 0.0% | |||||||||
| Share premium / (deficit) | 6,193 | 10,565 | 5,959 | 10,565 | 6,039 | 10,565 | 0.0% | 0.0% | |||||||||
| Revaluation and other reserves | 264 | 450 | 254 | 450 | 353 | 617 | 0.0% | -27.1% | |||||||||
| Retained earnings / (accumulated losses) | 1,455 | 2,482 | (1,402) | (2,485) | (1,420) | (2,485) | NMF | NMF | |||||||||
| Net profit / (loss) for the period | 701 | 1,196 | 2,802 | 4,967 | 541 | 947 | -75.9% | 26.4% | |||||||||
| Shareholders equity excluding minority interest | 12,859 | 21,936 | 11,698 | 20,739 | 9,652 | 16,886 | 5.8% | 29.9% | |||||||||
| Minority interest | 748 | 1,276 | 705 | 1,250 | 800 | 1,400 | 2.1% | -8.8% | |||||||||
| Total shareholders’ equity | 13,607 | 23,212 | 12,403 | 21,989 | 10,452 | 18,286 | 5.6% | 26.9% | |||||||||
| Total liabilities and shareholders’ equity | 55,273 | 94,291 | 47,243 | 83,752 | 46,555 | 81,442 | 12.6% | 15.8% | |||||||||
| Â | |||||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7728 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 December 2010
3 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
4 Change calculations based on GEL values
BNB (BELARUS) Q1 2011 INCOME STATEMENT
| Period ended | Â | Â | Q1 2011 | Â | Â | Q1 2010 | Â | Â | Change3 | |||||
| Standalone, IFRS-based | US$1 | Â | GEL | US$2 | Â | GEL | Y-O-Y | |||||||
| 000s Unless otherwise noted | (Unaudited) | (Unaudited) | ||||||||||||
| Interest Income | 1,869 | 3,187 | 1,487 | 2,602 | 22.5% | |||||||||
| Interest Expense | 289 | 493 | 173 | 302 | 63.2% | |||||||||
| Net Interest Income | 1,580 | 2,695 | 1,315 | 2,300 | 17.2% | |||||||||
| Fees & Commission Income | 723 | 1,233 | 164 | 287 | NMF | |||||||||
| Fees & Commission Expense | 446 | 761 | 32 | 56 | NMF | |||||||||
| Net Fees & Commission Income | 277 | 472 | 132 | 231 | 104.5% | |||||||||
| Income From Documentary Operations | 51 | 87 | 1 | 1 | NMF | |||||||||
| Expense On Documentary Operations | 21 | 36 | - | - | - | |||||||||
| Net Income From Documentary Operations | 30 | 51 | 1 | 1 | NMF | |||||||||
| Net Foreign Currency Related Income | 532 | 908 | 209 | 366 | 148.2% | |||||||||
| Other Operating Income | 14 | 25 | 11 | 20 | 22.6% | |||||||||
| Net Other Non-Interest Income | 14 | 25 | 11 | 20 | 22.6% | |||||||||
| Net Non-Interest Income | 853 | 1,456 | 353 | 618 | 135.6% | |||||||||
| Total Operating Income (Revenue) | 2,433 | 4,151 | 1,668 | 2,918 | 42.2% | |||||||||
| Personnel Costs | 1,079 | 1,840 | 581 | 1,016 | 81.1% | |||||||||
| Selling, General & Administrative Expenses | 263 | 448 | 109 | 191 | 134.7% | |||||||||
| Procurement & Operations Support Expenses | 266 | 453 | 146 | 255 | 77.7% | |||||||||
| Depreciation And Amortization | 103 | 176 | 73 | 127 | 38.8% | |||||||||
| Other Operating Expenses | 109 | 186 | 107 | 188 | -1.3% | |||||||||
| Total Recurring Operating Costs | 1,819 | 3,103 | 1,016 | 1,777 | 74.6% | |||||||||
| Normalized Net Operating Income / (Loss) | 614 | 1,047 | 652 | 1,141 | -8.2% | |||||||||
| Net Non-Recurring Income / (Costs) | 3 | 5 | 5 | 8 | -41.6% | |||||||||
| Profit / (Loss) Before Provisions | 617 | 1,052 | 657 | 1,149 | -8.4% | |||||||||
| Net Provision Expense | 41 | 71 | 241 | 421 | -83.2% | |||||||||
| Pre-Tax Income / (Loss) | 575 | 981 | 416 | 728 | 34.8% | |||||||||
| Income Tax Expense / (Benefit) | 134 | 229 | 108 | 189 | 21.1% | |||||||||
| Net Income / (Loss) | 441 | 753 | 308 | 539 | 39.6% | |||||||||
| Â | ||||||||||||||
1 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7059 per US$1.00, such exchange rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2011
2 Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7494 per US$1.00, such exchange rate being the official Georgia Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia on 31 March 2010
3 Change calculations based on GEL values
KEY RATIOS
Ratios presented on a consolidated basis, unless otherwise noted
| Profitability Ratios | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | |
| ROAA 1, Annualized | 3.0% | 2.8% | 2.2% | ||||
| ROAE2, Annualized | 17.1% | 15.0% | 11.1% | ||||
| ROAE2, Annualized, excluding minority interest | 17.7% | 16.7% | 12.2% | ||||
| ROA, Annualized | 3.0% | 2.5% | 2.1% | ||||
| ROE, Annualized | 16.6% | 14.8% | 11.0% | ||||
| ROE, Annualized, excluding minority interest | 17.2% | 16.4% | 11.9% | ||||
| Interest Income / Average Int. Earning Assets Excl. Cash, Annualized3 | 18.6% | 18.9% | 19.4% | ||||
| Interest Income / Average Int. Earning Assets Incl. Cash, Annualized3 | 14.8% | 15.8% | 16.8% | ||||
| Cost Of Funds 4, Annualized | 7.5% | 7.9% | 8.6% | ||||
| Net Spread Excl. Cash, Annualized 5 | 11.0% | 11.0% | 10.7% | ||||
| Net Spread Incl. Cash, Annualized 5 | 7.2% | 7.9% | 8.1% | ||||
| Net Interest Margin 6, Annualized | 7.1% | 7.9% | 8.0% | ||||
| Loan Yield Excl. Provisions7, Annualized | 19.3% | 19.6% | 20.1% | ||||
| Loan Yield Incl. Provisions7, Annualized | 18.4% | 17.7% | 18.6% | ||||
| Deposit Yield, Annualized | 6.6% | 7.2% | 7.9% | ||||
| Interest Expense To Interest Income | 51.6% | 49.9% | 52.4% | ||||
| Net Non-Interest Income To Average Total Assets, Annualized | 3.3% | 4.1% | 4.0% | ||||
| Net Non-Interest Income To Revenue 8 | 37.5% | 39.6% | 40.4% | ||||
| Net Fee And Commission Income To Average Interest Earning Assets 9, Annualized | 1.5% | 1.9% | 1.8% | ||||
| Net Fee And Commission Income To Revenue | 13.2% | 14.7% | 13.6% | ||||
| Operating Leverage, Y-O-Y 10 | 20.0% | 89.0% | -17.5% | ||||
| Operating Leverage, Y-O-Y, Normalized 10 | 17.9% | 13.7% | -10.8% | ||||
| Operating Leverage, Consecutive Q-O-Q 10 | 0.9% | 6.7% | 65.8% | ||||
| Operating Leverage, Consecutive Q-O-Q, Normalized 10 | 2.9% | 6.2% | -1.2% | ||||
| Total Operating Income (Revenue) To Total Assets, Annualized | 9.0% | 9.3% | 9.7% | ||||
| Recurring Earning Power 11, Annualized | 4.1% | 4.6% | 3.5% | ||||
| Net Income To Revenue | 33.5% | 27.0% | 22.1% | ||||
| Â | Â | Â | Â | ||||
| Efficiency Ratios | Â | Â | Â | ||||
| Operating Cost To Average Total Assets 12, Annualized | 4.6% | 5.5% | 6.1% | ||||
| Cost To Average Total Assets 13, Annualized | 4.9% | 5.6% | 6.5% | ||||
| Cost / Income 14 | 54.4% | 54.9% | 65.3% | ||||
| Cost / Income, Normalized 15 | 51.9% | 53.5% | 61.0% | ||||
| Cash Cost / Income | 38.0% | 39.6% | 45.9% | ||||
| Total Employee Compensation Expense To Revenue 16 | 28.2% | 28.4% | 30.8% | ||||
| Total Employee Compensation Expense To Cost | 51.8% | 51.7% | 47.2% | ||||
| Total Employee Compensation Expense To Average Total Assets, Annualized | 2.5% | 2.9% | 3.1% | ||||
| Â | Â | Â | Â | ||||
| Liquidity Ratios | Â | Â | Â | ||||
| Net Loans To Total Assets 17 | 55.4% | 57.8% | 56.9% | ||||
| Average Net Loans To Average Total Assets | 56.0% | 58.0% | 56.6% | ||||
| Interest Earning Assets To Total Assets | 72.0% | 79.3% | 75.2% | ||||
| Average Interest Earning Assets To Average Total Assets | 77.9% | 78.1% | 74.9% | ||||
| Liquid Assets To Total Assets 18 | 29.5% | 26.9% | 24.6% | ||||
| Liquid Assets To Total Short-Term Liabilities, NBG Stand-Alone | 44.5% | 34.7% | 38.8% | ||||
| Liquid Assets To Total Liabilities, IFRS Consolidated | 36.0% | 32.4% | 30.5% | ||||
| Net Loans To Client Deposits | 113.4% | 117.8% | 127.5% | ||||
| Average Net Loans To Average Client Deposits | 115.0% | 122.9% | 128.4% | ||||
| Net Loans To Total Deposits 19 | 106.1% | 106.4% | 120.7% | ||||
| Net Loans To (Total Deposits + Equity) | 78.6% | 81.1% | 85.3% | ||||
| Net Loans To Total Liabilities | 67.7% | 69.5% | 70.7% | ||||
| Total Deposits To Total Liabilities | 63.8% | 65.4% | 58.6% | ||||
| Client Deposits To Total Deposits | 93.5% | 90.3% | 94.7% | ||||
| Client Deposits To Total Liabilities | 59.7% | 59.0% | 55.5% | ||||
| Current Account Balances To Client Deposits | 44.3% | 42.1% | 44.1% | ||||
| Demand Deposits To Client Deposits | 11.2% | 9.3% | 9.0% | ||||
| Time Deposits To Client Deposits | 44.5% | 48.6% | 46.9% | ||||
| Total Deposits To Total Assets | 52.2% | 54.3% | 47.1% | ||||
| Client Deposits To Total Assets | 48.8% | 49.1% | 44.6% | ||||
| Client Deposits To Total Equity (Times) 20 | 2.68 | 2.90 | 2.28 | ||||
| Due From Banks / Due To Banks 21 | 494.3% | 278.9% | 411.8% | ||||
| Total Equity To Net Loans | 32.9% | 29.2% | 34.4% | ||||
| Leverage (Times) 22 | 4.5 | 4.9 | 4.1 | ||||
| Â | Â | Â | Â | ||||
| Asset Quality | Â | Â | Â | ||||
| NPLs (in GEL) 23 | 90,303 | 117,580 | 168,892 | ||||
| NPLs To Gross Loans To Clients 24 | 3.8% | 4.6% | 8.6% | ||||
| NPL Coverage Ratio 25 | 132.2% | 151.0% | 106.6% | ||||
| Cost of Risk 26, Annualized | 0.8% | 1.8% | 1.6% | ||||
| Reserve For Loan Losses To Gross Loans To Clients 27 | 5.1% | 7.0% | 9.2% | ||||
| % Of Loans To Clients Collateralized | 90.1% | 91.2% | 93.1% | ||||
| Equity To Average Net Loans To Clients | 32.2% | 35.7% | 35.7% | ||||
| Â | Â | Â | Â | ||||
| Capital Adequacy: | Â | Â | Â | ||||
| Equity To Total Assets | 18.2% | 16.9% | 19.6% | ||||
| BIS Tier I Capital Adequacy Ratio, Consolidated 28 | 18.0% | 17.5% | 21.9% | ||||
| BIS Total Capital Adequacy Ratio, Consolidated 29 | 28.8% | 26.6% | 34.6% | ||||
| BIS Tier I Capital Adequacy Ratio, Stand-alone 28 | 19.3% | 22.9% | 27.1% | ||||
| BIS Total Capital Adequacy Ratio, Stand-alone 29 | 29.0% | 28.4% | 33.0% | ||||
| NBG Tier I Capital Adequacy Ratio 30 | 12.7% | 13.0% | 17.7% | ||||
| NBG Total Capital Adequacy Ratio 31 | 15.6% | 14.5% | 15.9% | ||||
| Â | Â | Â | Â | ||||
| Per Share Values: | Â | Â | Â | ||||
| Basic EPS (GEL) 32 | 0.97 | 0.82 | 0.54 | ||||
| Basic EPS (US$) | $0.57 | $0.46 | $0.31 | ||||
| Fully Diluted EPS (GEL) 33 | 0.93 | 0.79 | 0.54 | ||||
| Fully Diluted EPS (US$) | $0.55 | $0.45 | $0.31 | ||||
| Book Value Per Share (GEL) 34 | 23.52 | 22.10 | 19.53 | ||||
| Book Value Per Share (US$) | $13.79 | $12.46 | $11.17 | ||||
| Ordinary Shares Outstanding - Weighted Average, Basic | 31,353,349 | 31,344,860 | 31,315,960 | ||||
| Ordinary Shares Outstanding - Period End | 31,353,349 | 31,344,860 | 31,315,960 | ||||
| Ordinary Shares Outstanding - Fully Diluted | 34,827,963 | 34,819,474 | 34,790,574 | ||||
| Â | Â | Â | Â | ||||
| Selected Operating Data: | Â | Â | Â | ||||
| Full Time Employees, Group | 5,226 | 5,610 | 5,048 | ||||
| Full Time Employees, BOG Stand-Alone | 3,150 | 3,110 | 2,825 | ||||
| Total Assets Per FTE 35 | 774 | 730 | 618 | ||||
| Total Assets Per FTE, BOG Stand-Alone | 1,249.20 | 1,269.35 | 1,073.68 | ||||
| Number Of Active Branches | 143 | 142 | 140 | ||||
| Number Of ATMs | 408 | 405 | 379 | ||||
| Number Of Cards Outstanding | 614,990 | 603,049 | 570,637 | ||||
| Number Of POS Terminals | 2,404 | 2,330 | 2,067 | ||||
| Â |
KEY RATIOS
Ratios presented on a Standalone basis
| Liquidity Ratios | Â | Q1 2011 | Â | Q4 2010 | Â | Q1 2010 | |
| ROAA 1, Annualized | 3.2% | 3.3% | 1.7% | ||||
| ROAE2, Annualized | 16.0% | 14.5% | 6.9% | ||||
| ROAE, Annualized, excluding minority interest | 16.0% | 14.5% | 6.9% | ||||
| ROA, Annualized | 3.2% | 3.0% | 1.7% | ||||
| ROE, Annualized | 17.1% | 14.3% | 6.8% | ||||
| ROE, Annualized, excluding minority interest | 17.1% | 14.3% | 6.8% | ||||
| Interest Income / Average Int. Earning Assets Excl. Cash, Annualized3 | 18.6% | 18.7% | 18.5% | ||||
| Interest Income / Average Int. Earning Assets Incl. Cash, Annualized3 | 14.7% | 15.5% | 16.1% | ||||
| Cost Of Funds 4, Annualized | 7.5% | 7.7% | 8.4% | ||||
| Net Spread Excl. Cash, Annualized 5 | 11.1% | 11.0% | 10.1% | ||||
| Net Spread Incl. Cash, Annualized 5 | 7.2% | 7.9% | 7.7% | ||||
| Net Interest Margin 6, Annualized | 7.2% | 8.0% | 7.8% | ||||
| Loan Yield Excl. Provisions7, Annualized | 19.6% | 19.8% | 19.7% | ||||
| Loan Yield Incl. Provisions7, Annualized | 18.6% | 18.1% | 16.9% | ||||
| Deposit Yield, Annualized | 6.9% | 6.7% | 7.7% | ||||
| Interest Expense To Interest Income | 51.3% | 48.6% | 51.3% | ||||
| Net Non-Interest Income To Average Total Assets, Annualized | 2.3% | 2.8% | 2.3% | ||||
| Net Non-Interest Income To Revenue 8 | 29.4% | 31.5% | 28.2% | ||||
| Net Fee And Commission Income To Average Interest Earning Assets 9, Annualized | 1.3% | 1.7% | 1.6% | ||||
| Net Fee And Commission Income To Revenue | 12.7% | 14.6% | 14.3% | ||||
| Operating Leverage, Y-O-Y 10 | 20.2% | 33.6% | -20.0% | ||||
| Operating Leverage, Y-O-Y, Normalized 10 | 20.4% | 27.0% | -17.8% | ||||
| Operating Leverage, Consecutive Q-O-Q 10 | -6.1% | 15.6% | 6.9% | ||||
| Operating Leverage, Consecutive Q-O-Q, Normalized 10 | -2.4% | 11.3% | 3.9% | ||||
| Total Operating Income (Revenue) To Total Assets, Annualized | 7.9% | 8.1% | 7.8% | ||||
| Recurring Earning Power 11, Annualized | 4.3% | 5.1% | 3.7% | ||||
| Net Income To Revenue | 40.3% | 37.2% | 21.6% | ||||
| Â | Â | Â | Â | ||||
| Efficiency Ratios | Â | Â | Â | ||||
| Operating Cost To Average Total Assets 12, Annualized | 3.5% | 3.8% | 4.2% | ||||
| Cost To Average Total Assets 13, Annualized | 3.6% | 3.8% | 4.3% | ||||
| Cost / Income 14 | 45.6% | 42.9% | 53.9% | ||||
| Cost / Income, Normalized 15 | 43.8% | 42.7% | 51.8% | ||||
| Cash Cost / Income | 30.2% | 28.8% | 35.8% | ||||
| Total Employee Compensation Expense To Revenue 16 | 23.8% | 22.9% | 26.1% | ||||
| Total Employee Compensation Expense To Cost | 52.3% | 53.3% | 48.4% | ||||
| Total Employee Compensation Expense To Average Total Assets, Annualized | 1.9% | 2.0% | 2.1% | ||||
| Â | Â | Â | Â | ||||
| Liquidity Ratios | Â | Â | Â | ||||
| Net Loans To Total Assets 17 | 56.3% | 55.8% | 56.1% | ||||
| Average Net Loans To Average Total Assets | 55.6% | 56.0% | 55.8% | ||||
| Interest Earning Assets To Total Assets | 73.3% | 77.8% | 74.6% | ||||
| Average Interest Earning Assets To Average Total Assets | 78.0% | 76.4% | 74.0% | ||||
| Liquid Assets To Total Assets 18 | 29.4% | 25.9% | 22.8% | ||||
| Liquid Assets To Total Short-Term Liabilities, NBG Stand-Alone | 44.5% | 34.7% | 38.8% | ||||
| Liquid Assets To Total Liabilities, IFRS Stand-Alone | 36.1% | 32.8% | 30.3% | ||||
| Net Loans To Client Deposits | 112.6% | 121.8% | 135.9% | ||||
| Average Net Loans To Average Client Deposits | 116.5% | 126.5% | 138.6% | ||||
| Net Loans To Total Deposits 19 | 106.1% | 109.7% | 129.8% | ||||
| Net Loans To (Total Deposits + Equity) | 78.4% | 77.4% | 82.5% | ||||
| Net Loans To Total Liabilities | 69.3% | 70.8% | 74.5% | ||||
| Total Deposits To Total Liabilities | 65.3% | 64.5% | 57.4% | ||||
| Client Deposits To Total Deposits | 94.2% | 90.1% | 95.5% | ||||
| Client Deposits To Total Liabilities | 61.5% | 58.1% | 54.9% | ||||
| Current Account Balances To Client Deposits | 45.1% | 44.6% | 45.1% | ||||
| Demand Deposits To Client Deposits | 11.2% | 10.3% | 10.0% | ||||
| Time Deposits To Client Deposits | 56.9% | 47.1% | 70.5% | ||||
| Total Deposits To Total Assets | 53.1% | 50.9% | 43.2% | ||||
| Client Deposits To Total Assets | 50.0% | 45.8% | 41.3% | ||||
| Client Deposits To Total Equity (Times) 20 | 267.0% | 216.2% | 166.5% | ||||
| Due From Banks / Due To Banks 21 | 551.3% | 295.8% | 533.3% | ||||
| Total Equity To Net Loans | 33.2% | 38.0% | 44.2% | ||||
| Leverage (Times) 22 | 4.3 | 3.7 | 3.0 | ||||
| Â | Â | Â | Â | ||||
| Asset Quality | Â | Â | Â | ||||
| NPLs (in GEL) 23 | 87,593 | 81,245 | 136,826 | ||||
| NPLs To Gross Loans To Clients 24 | 3.8% | 3.5% | 7.4% | ||||
| NPL Coverage Ratio 25 | 135.2% | 148.1% | 100.7% | ||||
| Cost of Risk 26, Annualized | 1.0% | 1.8% | 2.8% | ||||
| Reserve For Loan Losses To Gross Loans To Clients 27 | 5.1% | 5.2% | 7.5% | ||||
| % Of Loans To Clients Collateralized | 51.9% | 51.2% | 48.8% | ||||
| Equity To Average Net Loans To Clients | 33.5% | 45.6% | 45.8% | ||||
| Â | Â | Â | Â | ||||
| Capital Adequacy: | Â | Â | Â | ||||
| Equity To Total Assets | 18.7% | 21.2% | 24.8% | ||||
| BIS Tier I Capital Adequacy Ratio, Stand-alone 28 | 19.3% | 22.9% | 27.1% | ||||
| BIS Total Capital Adequacy Ratio, Stand-alone 29 | 29.0% | 28.4% | 33.0% | ||||
| NBG Tier I Capital Adequacy Ratio 30 | 12.7% | 13.0% | 17.7% | ||||
| NBG Total Capital Adequacy Ratio 31 | 15.6% | 14.5% | 15.9% | ||||
| Â | Â | Â | Â | ||||
| Per Share Values: | Â | Â | Â | ||||
| Basic EPS (GEL) 32 | 1.00 | 0.95 | 0.41 | ||||
| Basic EPS (US$) | $0.59 | $0.54 | $0.23 | ||||
| Fully Diluted EPS (GEL) 33 | 0.96 | 0.92 | 0.41 | ||||
| Fully Diluted EPS (US$) | $0.56 | $0.52 | $0.23 | ||||
| Book Value Per Share (GEL) 34 | 23.49 | 26.69 | 24.01 | ||||
| Book Value Per Share (US$) | $13.77 | $15.06 | $13.72 | ||||
| Ordinary Shares Outstanding - Weighted Average, Basic | 31,353,349 | 31,344,860 | 31,315,960 | ||||
| Ordinary Shares Outstanding - Period End | 31,353,349 | 31,344,860 | 31,315,960 | ||||
| Ordinary Shares Outstanding - Fully Diluted | 34,827,963 | 34,819,474 | 34,790,574 | ||||
| Â | Â | Â | Â | ||||
| Selected Operating Data: | Â | Â | Â | ||||
| Full Time Employees, BOG Stand-Alone | 3,150 | 3,110 | 2,825 | ||||
| Total Assets Per FTE, BOG Stand-Alone | 1,249 | 1,269 | 1,073 | ||||
| Number Of Active Branches | 143 | 142 | 140 | ||||
| Number Of ATMs | 408 | 405 | 379 | ||||
| Number Of Cards Outstanding | 614,990 | 603,049 | 570,637 | ||||
| Number Of POS Terminals | 2,404 | 2,330 | 2,067 | ||||
| Â |
NOTES TO KEY RATIOS
| 1 | Â | Return On Average Total Assets (ROAA) equals Net Income of the period divided by quarterly Average Total Assets for the same period; |
| 2 | Return On Average Total Equity (ROAE) equals Net Income of the period divided by quarterly Average Total Equity for the same period; ROAE Excluding Minority Interests equals Net Income Excluding Minority Interest(s) of the period divided by quarterly Average Total Equity Excluding Minority Interest for the same period. | |
| 3 | Average Interest Earning Assets are calculated on a quarterly basis; Interest Earning Assets include: Loans And Advances To Credit Institutions, Treasuries And Equivalents, Other Fixed Income Instruments and Net Loans to Clients; | |
| 4 | Cost Of Funds equals Interest Expense of the period divided by quarterly Average Interest Bearing Liabilities; Interest Bearing Liabilities Include: Client Deposits, Deposits And Loans From Banks, Borrowed Funds and Issued Fixed Income Securities; | |
| 5 | Net Spread equals Interest Income To Average Interest Earning Assets less Cost Of Funds; | |
| 6 | Net Interest Margin equals Net Interest Income of the period divided by quarterly Average Interest Earning Assets of the same period; | |
| 7 | Loan Yield equals Interest Income, less Net Provision Expense, divided by quarterly Average Gross Loans To Clients; | |
| 8 | Revenue equals Total Operating Income; | |
| 9 | Net Fee And Commission Income includes Net Income From Documentary Operations of the period ; | |
| 10 | Operating Leverage equals percentage change in Revenue less percentage change in Total Costs; | |
| 11 | Recurring Earning Power equals Profit Before Provisions of the period divided by average Total Assets of the same period; | |
| 12 | Operating Cost equals Total Recurring Operating Costs; | |
| 13 | Cost includes Total Recurring Operating Costs and Net Non-Recurring Costs (Income); | |
| 14 | Cost/Income Ratio equals Costs of the period divided by Total Operating Income (Revenue); | |
| 15 | Cost/Income Normalized equals Total Recurring Operating cost (excludes net non-recurring costs) divided by total operating income. | |
| 16 | Total Employee Compensation Expense includes Personnel Costs; | |
| 17 | Net Loans equal Net Loans To Clients; | |
| 18 | Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG, Balances With And Loans To Other Banks, Treasuries And Equivalents and Other Fixed Income Securities as of the period end and are divided by Total Assets as of the same date; | |
| 19 | Total Deposits include Client Deposits and Deposits And Loans from Banks; | |
| 20 | Total Equity equals Total Shareholders’ Equity; | |
| 21 | Due From Banks/ Due To Banks equals Loans And Advances To Credit Institutions divided by Deposits And Loans From Banks; | |
| 22 | Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date; | |
| 23 | NPLs (in GEL) equals total gross non-performing loans as of the period end; non-performing loans are loans that have debts in arrears for more than 90 calendar days; | |
| 24 | Gross Loans equals Gross Loans To Clients; | |
| 25 | NPL Coverage Ratio equals Reserve For Loan losses as of the period end divided by NPLs as of the same date; | |
| 26 | Cost Of Risk equals Net Provision For Loan Losses of the period, plus provisions for (less recovery of) other assets, divided by quarterly average Gross Loans To Clients over the same period; | |
| 27 | Reserve For Loan Losses To Gross Loans To Clients equals reserve for loan losses as of the period end divided by gross loans to clients as of the same date; | |
| 28 | BIS Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total Risk Weighted Assets as of the same date, both calculated in accordance with the requirements of Basel Accord I; | |
| 29 | BIS Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total Risk Weighted Assets as of the same date, both calculated in accordance with the requirements of Basel Accord I; | |
| 30 | NBG Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total Risk Weighted Assets as of the same date, both calculated in accordance with the requirements the National Bank of Georgia; | |
| 31 | NBG Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total Risk Weighted Assets as of the same date, both calculated in accordance with the requirements of the National Bank of Georgia; | |
| 32 | Basic EPS equals Net Income of the period divided by the weighted average number of outstanding ordinary shares over the same period; | |
| 33 | Fully Diluted EPS equals net income of the period divided by the number of outstanding ordinary shares as of the period end plus number of ordinary shares in contingent liabilities; | |
| 34 | Book Value Per Share equals Equity as of the period end, plus Treasury Shares, divided by the total number of Outstanding Ordinary shares as of the same date | |
| 35 | Equals total consolidated assets divided by total number of full-time employees |
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