Half-yearly Report
Bank of Georgia
1.66 GEL/US$ 30 June 2009 period end
1.66 GEL/US$ 1H 2009 average1.66 GEL/US$ 1H 2009 average
1.66
GEL/US$ Q2 2009 average1.66
GEL/US$ Q2 2009 average
1.67 GEL/US$ 31 March 2009 period end1.67 GEL/US$ 31 March 2009 period end
1.67
GEL/US$ Q1 2009 average1.67
GEL/US$ Q1 2009 average
1.66 GEL/US$ 30 June 2008 period end1.66 GEL/US$ 30 June 2008 period end
1.50
GEL/US$ 1H 2008 average1.50
GEL/US$ 1H 2008 average
1.44 GEL/US$ Q2 2008 average1.44 GEL/US$ Q2 2008 average
JSC BANK OF GEORGIA REPORTS Q2 2009 AND 1H 2009 RESULTS
Millions, unless otherwise noted | Â | Q2 2009 | Â | Growth y-o-y 1 | ||
 | ||||||
Bank of Georgia (Consolidated, Unaudited, IFRS-based) | US$ | Â | GEL | |||
Total Operating Income (Revenue)2 | 48.6 | 80.6 | -6% | |||
Recurring Operating Costs | 27.9 | 46.3 | -5% | |||
Normalised Net Operating Income3 (NNOI) | 20.7 | 34.2 | -8% | |||
Net Provision Expenses | 24.5 | 40.7 | 466% | |||
Net Income/(Loss) | (2.6) | (4.3) | NMF | |||
 | ||||||
 | ||||||
1H 2009 | Growth y-o-y 1 | |||||
Bank of Georgia (Consolidated, Unaudited, IFRS-based) | US$ | GEL | ||||
Total Operating Income (Revenue)2 | 97.9 | 162.3 | -3% | |||
Recurring Operating Costs | 54.9 | 91.0 | -3% | |||
Normalised Net Operating Income3 | 43.0 | 71.3 | -3% | |||
Net Provision Expenses | 43.9 | 72.8 | 397% | |||
Net Income/(Loss) | 0.5 | 0.8 | -99% | |||
 | ||||||
 | ||||||
Total Assets | 1,753.9 | 2,907.8 | -14% | |||
Net Loans | 1,055.3 | 1,749.6 | -15% | |||
Total Deposits | 643.2 | 1,066.4 | -30% | |||
Tier I Capital Adequacy Ratio (BIS)4 | 23.9% | |||||
Total Capital Adequacy Ratio (BIS)5 | 34.2% | |||||
Tier I Capital Adequacy Ratio (NBG) | 17.8% | |||||
Total Capital Adequacy Ratio (NBG) | 18.4% |
1 Compared to the same period in 2008; growth calculations
based on GEL values.
2 Revenue includes Net Interest
Income and Net Non-Interest Income.
3 Normalised for Net
Non-Recurring Costs.
4 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.
5 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
About Bank of Georgia
Bank of Georgia is the leading Georgian bank offering a broad range of corporate and investment banking, retail banking, wealth management and insurance services to its customers in Georgia, Ukraine and Belarus. Bank of Georgia is the largest bank in Georgia by assets, loans, deposits and equity, with 33.6% market share by total assets (all data according to the NBG as of 30 June 2009). The bank has 140 branches and over 880,000 retail and more than 146,000 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 | ‘B3/NP’ (FC) & ‘Ba3/NP’ (LC) |
For further information, please visit www.bog.ge/ir or contact:
Nicholas Enukidze | Â | Irakli Gilauri | Â | Macca Ekizashvili |
Chairman of the Supervisory Board | CEO, Supervisory Board Member | Head of Investor Relations | ||
+995 32 444 858 | +995 32 444 109 | +995 32 444 256 | ||
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 Q2 2008, 1H 2008, Q1 2009, Q2 2009 and 1H 2009 contained in this news report is unaudited and reflects the best estimates of management. The bank’s actual results may differ significantly from the amounts reflected herein as a result of various factors.
Bank of Georgia (LSE: BGEO, GSE: GEB) (the “Bankâ€), Georgia’s leading bank, announced today its Q2 2009 and 1H 2009 consolidated results (IFRS-based, derived from management accounts), reporting a Q2 2009 Net Loss of GEL 4.3 million and 1H 2009 Net Income of GEL 0.8 million.
Q2 2009 Summary of the Bank’s Consolidated Results
In Q2 2009 the Bank’s performance continued to reflect challenging market conditions in the Bank’s principal markets and globally. Throughout Q2 the Bank maintained a conservative liquidity management policy reducing its loan book and increasing amount of liquid funds on its balance sheet. At the end of Q2 2009 the Bank’s liquidity ratio reached 38% (as compared to 20% required by the FSA) despite retiring all of US$140 million Loan Passthrough Notes, which were callable in June 2009.
Reduction of the Bank’s loan portfolio in Q2 2009 was the principal reason for the decrease of the Bank’s total Operating Income (Revenue) by 6.4% y-o-y to GEL 80.6 million, (down 1.4% q-o-q6). Net Interest Income declined 11.4% y-o-y to GEL 49.5 million (down 5.7% q-o-q), and Net Non-Interest Income increased 2.8% y-o-y to GEL 31.1 million (up 6.3% q-o-q). The decline of Net Interest Income during the quarter was a result of a 7.2% q-o-q decrease of Interest Income, which reflects the contraction of the consolidated gross loan book of the Bank by GEL 142.2 million, or a decrease of 6.9% q-o-q. Net Interest Margin (NIM) for the quarter stood at 8.1%, a decrease of 0.66 % from Q1 2009 and a decrease of 0.98% y-o-y from Q2 2008. The decline of NIM was mainly due to the sharp increase in liquidity during the quarter. Net Fees and Commission Income decreased 7.2% y-o-y to GEL 9.4 million (up 5.8% q-o-q) and Net Income from Documentary Operations decreased 5.2% y-o-y to GEL 1.8 million, (down 20.7% q-o-q). Net Foreign Currency Related Income of GEL 7.1 million, decreased by 32.1%y-o-y and by 19.5% q-o-q. The q-o-q decline was a result of the decreased FX income in Belarus and Ukraine due to lower FX volatility and regulatory restrictions on foreign currency transactions in Ukraine. Net Other Non-Interest Income increased 64.0% y-o-y to GEL 12.9 million, up 37.4% q-o-q due to the increased profitability during the quarter of the Bank’s insurance and brokerage subsidiaries. The Bank’s Insurance Income grew 191.1% y-o-y to GEL 5.1 million, up 66.1% q-o-q and Brokerage Income increased by 300.0% q-o-q to GEL 1.3 million (decreased by 14.0% y-o-y).
6 q-o-q compares Q2 2009 results with Q1 2009 results.
NNOI decreased 8.1% y-o-y to GEL 34.3 million, down 7.6% q-o-q, reflecting a 3.8% q-o-q increase of Total Consolidated Recurring Operating Costs for the quarter to GEL 46.3 million (down 5.2% y-o-y) in Q2 2009. Personnel Costs, the largest Recurring Cost item, declined 14.9% y-o-y due to headcount reduction in Q4 2008, but has increased 5.5% q-o-q to GEL 23.2 million. The Personnel Cost increase in Q2 2009 was mostly due to increased performance driven bonus accruals in insurance and brokerage subsidiaries. Recurring Operating Costs excluding Personnel Costs reached a total of GEL 23.1 million in Q2 2009, a 2.1% increase q-o-q. Normalized Cost/Income ratio (Costs exclude Net Non-Recurring Costs) increased to 57.5 % in Q2 2009 from 54.6% in Q1 2009 and 56.9% in Q2 2008.
Challenging economic environment in Georgia and Ukraine was the key reason for the increase in the Bank’s Net Provision Expense, which amounted to GEL 40.7 million for the quarter, up 26.9% q-o-q and 465.6% y-o-y. Net Provision Expense in Georgia amounted to GEL 29.6 million (up 23.2% q-o-q) and in Ukraine GEL 11.0 million, (up 17.5% q-o-q).
1H 2009 Summary of the Bank’s Consolidated Results
In 1H 2009 the Bank’s Total Operating Income (Revenue) decreased 2.8% y-o-y to GEL 162.3 million, due to 3.5% y-o-y decrease in Net Interest Income to GEL 101.9 million and 1.6% y-o-y decrease in Net Non-Interest Income to GEL 60.4 million. The decline of Net Interest Income reflects the decrease of the consolidated gross loan book from GEL 2,107 million at the end of Q2 2008 to GEL 1,905 million in Q2 2009, a result of the conservative approach to liquidity management adopted by the Bank following the armed conflict between Georgia and Russia in August 2008 (the “Conflictâ€), the global financial crisis that negatively affected the economies of Georgia and Ukraine and political tensions in April and May in 2009 in Georgia. In 1H 2009, Net Foreign Currency Related Income declined by 33.0% y-o-y to GEL 15.8 million. The Bank’s Net Fees and Commission Income decreased 9.8% y-o-y to GEL 18.3 million, while Net Income from Documentary Operations grew by 20.9% y-o-y to GEL 4.0 million. Net Other Non-Interest Income reached GEL 22.2 million, up 57.4% y-o-y, mostly driven by the 139.9% growth of Net Insurance Income to GEL 8.1 million. Total Recurring Operating Costs decreased by 2.5% y-o-y to GEL 91.0 million, mostly due to a 14.7% y-o-y decline of Personnel Cost, a result of the cost optimization measures, including headcount reduction across the board, implemented by the Bank at the end of 2008.
The effect of the Conflict and the challenging economic environment in the Bank’s target markets prompted Net Provision Expense of GEL 72.8 million booked by the Bank in 1H 2009, as compared to the Net Provision Expense of GEL 14.6 million for 1H 2008. The Bank had Net Provision Expense of GEL 20.4 million in Ukraine and GEL 53.6 million in Georgia.
The Bank reported the Net Income of GEL 0.8 million for 1H 2009. On 30 June 2009, the Bank’s Consolidated Total Assets stood at GEL 2.9 billion, down 8.8% from 31 March 2009, 10.8% from 31 December 2008 and 14.5% from Q2 2008. The Bank’s Net Loans decreased by 8.5% q-o-q (down 15.2% y-o-y) to GEL 1,750 million, reflecting the tightening of the Bank’s lending policy in light of challenging economic environment in its target markets and the Bank’s conservative approach to liquidity.
In Q2 2009 loan loss reserves amounted to GEL 155.1 million or 8.1% of consolidated gross loan book, up from 6.6% in Q1 2009. NPLs increased to GEL 148.8 million (up from GEL 104.6 million in Q1 2009), representing 7.8% of the consolidated gross loans as at 30 June 2009, up from 5.1% in Q1 2009.
During 2009 both Georgia and Ukraine witnessed a system-wide decline in banking deposits. The Bank’s Client Deposits decreased from GEL 1,193 million on 31 December 2008 to GEL 1,025 million on of 30 June 2009. Since year-end 2008 client deposits in Georgia decreased from GEL 1,045 million to GEL 909.3 million and in Ukraine from GEL127.4 million to GEL114.8 million. As of 31 August 2009, Client Deposits reached GEL 1,030 million in Georgia and GEL 113.3 million in Ukraine.
In the first half of 2009, the Bank redeemed a total of US$260.1 million of wholesale debt financing. This included the repayment of the US$65 million loan facility and US$43.5 million syndicated loan granted in December 2007 and August 2007, respectively, as well as the settlement of an aggregate amount of US$140 million of loan passthrough notes issued in June and July of 2008.
The Bank’s consolidated Book Value per Share on 30 June 2009 stood at GEL 22.7, compared to GEL 22.8 as at 31 March 2009 and GEL 23.0 as of 31 December 2008.
In Q2 2009 the Bank’s Tier I Capital Adequacy Ratio was 23.9% and Total Capital Adequacy Ratio was 34.2% by BIS standards.
JSC Bank of Georgia (Standalone)
Bank of Georgia’s banking operations in Georgia, which are provided through JSC Bank of Georgia, reported Q2 2009 standalone Net Income of GEL 0.9 million, as compared to Net Income of GEL 11.3 in Q1 2009. The decline in profitability compared to the previous quarter was mostly caused by increased provisions and lower Interest Income following the decrease of the Bank’s loan book in Georgia in 1H 2009.
In Q2 2009 Total Operating Income amounted to GEL 62.3 million, down 6.5 % q-o-q and 12.4% y-o-y. Net Interest Income stood at GEL 45.5 million, down 9.7% q-o-q and down 9.2% y-o-y. Net Non-Interest Income amounted to GEL 16.8 million, up 3.3% q-o-q and down 20.0% y-o-y. The q-o-q increase of Net Non-Interest Income was mainly attributed to the 2.9% q-o-q growth of Net Fees and Commission Income to GEL 8.2 million. Net Income from Documentary Operations decreased 20.6% q-o-q to GEL 1.8 million. On a standalone basis, Bank of Georgia’s standalone Total Recurring Operating Costs increased 3.1% q-o-q to GEL 29.7 million, down 6.5% y-o-y. The y-o-y decline of Total Recurring Costs was driven predominantly by 13.3% decline of Personnel Costs, which amounted to GEL 14.8 million in Q2 2009. The Bank’s Net Provision Expense on a standalone basis during the quarter reached GEL 29.6 million, attributed predominantly to the Bank’s retail banking and wealth management loans.
Bank of Georgia’s 1H 2009 Total Operating Income on a standalone basis stood at GEL 128.9 million down 6.4% y-o-y, following a 0.5% y-o-y growth of Net Interest Income to GEL 95.9 million, and 21.8% y-o-y decline of Net Non-Interest Income to GEL 33.1 million. The decline of Net Non-Interest Income was mostly due to 41.1% y-o-y decline of Foreign Currency Related Income to GEL 12.0 million. The Total Recurring Cost of the Bank’s Georgian operations declined by 2.8% y-o-y, driven by a 14.5% reduction of personnel costs on a y-o-y basis. Net Provision Expense in 1H 2009 reached GEL 53.6 million, resulting in 1H 2009 standalone Net Income of GEL 12.2 million.
As of 30 June 2009 Bank of Georgia’s Total Assets on a standalone basis stood at GEL 2.7 billion, down 7.9% q-o-q and 9.5% y-o-y. Net Loans declined 8.4% q-o-q to GEL 1.6 billion, down by 11.7% y-o-y, as a result of the Bank’s conservative lending policy. Reserve for loan losses at the end of Q2 2009 was up 11.9% q-o-q reaching GEL 114.8 million, with reserve on RB and WM loan losses representing 59.1% of total Reserve for Loan Losses on a standalone basis, up from 56.3% in Q1 2009 and 50.8% in Q4 2008. NPLs for the quarter stood at GEL 118.7 million, and represented 6.9% of the total gross loan book, an increase from the same ratio of 4.7% in Q1 2009. The growth of the Bank of Georgia’s standalone NPLs was driven by the growth of non-performing RB and WM loan from GEL 46.3 million in Q1 2009 to GEL 67.4 million in Q2 2009 and growth of non-performing CB loans from GEL 41.1 million in Q1 2009 to GEL 51.3 million in Q2 2009.
Breakdown of the Standalone Total Gross Loans, currency, loan loss reserves and NPLs by Business Units
GEL million | Â | GEL | Â | Foreign Currency | Â | Gross Loans | Â | LL Reserves | Â | Net Loan Book | Â | NPLs |
RB + WM | Â | 219.3 | Â | 675.5 | Â | 894.9 | Â | (67.9) | Â | 827.0 | Â | 67.4 |
CB | 178.2 | 617.4 | 795.6 | (36.4) | 759.3 | 51.3 | ||||||
Corporate Centre, (mainly CB loans) | Â | 4.7 | Â | 21.7 | Â | 26.3 | Â | (10.5) | Â | 15.8 | Â | - |
Total | 402.2 | 1,314.6 | 1,716.8 | (114.8) | 1,602.0 | 118.7 |
In Q2 2009, the Bank’s client deposits in Georgia stood at GEL 909.3 million as compared to GEL 979.0 million in Q1 2009 and GEL 1,045 million on 31 December 2008. The deposit growth trend, which started mid-May 2009 continued through the end of August 2009, when Client Deposits reached GEL 1,030 million.
Breakdown of Standalone Total Deposits by currency
 | 30-Jun-09 |  | 31-Mar-09 |  | 31-Dec-08 | |||||||||||||
GEL million | Â | GEL | Â | Foreign Currency | Â | Total | Â | GEL | Â | Foreign Currency | Â | Total | Â | GEL | Â | Foreign Currency | Â | Total |
RB + WM | 67.0 | Â | 323.3 | Â | 390.2 | 66.2 | Â | 307.6 | Â | 373.7 | 89.1 | Â | 329.4 | Â | 418.5 | |||
CB | Â | 271.8 | Â | 247.2 | Â | 519.0 | Â | 266.3 | Â | 339.0 | Â | 605.2 | Â | 245.8 | Â | 380.8 | Â | 626.7 |
Total | 338.8 | 570.5 | 909.3 | 332.5 | 646.6 | 979.0 | 335.0 | 710.2 | 1,045.2 |
As of 31 July 2009 Bank of Georgia on a standalone basis held market share of 33.7 %, 31.5%, 29.2 %, 39.6% and 34.7% by total assets, gross loans, client deposits, shareholders’ equity and regulatory capital, respectively in Georgia7.
7Market share data are derived from the information published by the National Bank of Georgia (www.nbg.gov.ge) and represent an aggregation of standalone financial information (non-IFRS, based on National Bank of Georgia requirements) filed by Georgian banks.
Capital Adequacy, Liquidity and Leverage
As of 30 June 2009, the Bank’s Tier I Capital Adequacy Ratio was 17.8% and Total Capital Adequacy Ratio was 18.4% according to the Georgian FSA standards. According to the requirement of the Georgian FSA Tier I Capital Adequacy Ratio should be no less than 8% and Total Capital Adequacy Ratio no less than 12%.
The Bank’s NBG Liquidity Ratio (standalone) remained flat at 37.6% on 30 June 2009, well above the NBG requirement of 20%.
The Bank’s standalone leverage ratio (Total Liabilities to Shareholders Equity) stood at 2.8x as of 30 June 2009, down from 3.1x on 31 March 2009.
BG Bank (Ukraine)
In Q2 2009 BG Bank’s Revenue increased to GEL 5.6 million, up 2.0% q-o-q and down 17.3% y-o-y. Recurring Costs declined 19.0% q-o-q to GEL 4.6 million, down 35.4% y-o-y. BG Bank’s Net Provision Expense for the quarter amounted to GEL 11.0 million as compared to GEL 9.4 million in Q1 2009 and GEL 23.3 million booked in Q4 2008. In Q2 2009 BG Bank recorded Net Loss of GEL 10.8 million as compared to Net Loss of GEL 7.3 million in Q1 2009 and Net Loss of GEL 10.7 million in Q4 2008.
In 1H 2009 BG Bank’s Revenue decreased to GEL 11.1 million, down 16.6% y-o-y. Recurring Costs stood at GEL 10.2 million, down 28.2% y-o-y. BG Bank’s Net Provision Charge for 1H 2009 reached GEL 20.4 million as compared to GEL 0.9 million recovery of provision charge in 1H 2008. In 1H 2009 BG Bank recorded Net Loss of GEL 18.1 million as compared to Net Loss of GEL 40 thousand in 1H 2008.
BG Bank’s Total Assets decreased by 43.0% y-o-y to GEL 205.5 million (down 16.1% q-o-q), due to the decline in BG Bank’s loan book as a result of conservative lending policy and increased provisioning. In Q2 2009 gross Loans to Clients decreased 28.3% y-o-y to GEL 190.4 million (down 4.2% q-o-q) and loan loss reserves increased 23.4% q-o-q to GEL 39.0 million or 20.5% of BG Bank’s Gross Loan Book. 57.3% of BG Bank’s gross loans is issued in Hryvna and the remaining loans are issued in foreign currency. As at 30 June 2009, BG Bank’s NPLs stood at GEL 27.7 million, or 14.6% of BG Bank’s Gross Loan book. The NPL coverage ratio stood at 140.9% as of 30 June 2009.
Breakdown of the BG Bank’s Total Gross Loans, currency, loan loss reserves and NPLs by Business Units
GEL millions | Â | UAH | Â | Foreign Currency | Â | Gross Loan Book | Â | LL Reserves | Â | Net Loan Book | Â | NPLs |
RB | Â | 7.3 | Â | 29.8 | Â | 37.1 | Â | (12.8) | Â | 24.2 | Â | 5.6 |
CB | Â | 101.8 | Â | 51.5 | Â | 153.3 | Â | (26.2) | Â | 127.1 | Â | 22.1 |
Total | 109.1 | 81.3 | 190.3 | (39.0) | 151.3 | 27.7 |
BG Bank’s Client Deposits dropped 5.1% q-o-q to GEL 114.8 million following the expiry of the NBU restriction on early withdrawal of time deposits. BG Bank’s Total Liabilities stood at GEL 156.9 million in Q2 2009, down 46.3% y-o-y and 14.6% q-o-q. BG Bank has no international wholesale funding obligations and its leverage stood at a healthy 3.2x as of 30 June 2009.
Breakdown of BG Bank’s Total Deposits by currency
 | 30-Jun-09 |  | 31-Mar-09 |  | 31-Dec-08 | |||||||||||||
GEL million | Â | UAH | Â | Foreign Currency | Â | Total | Â | UAH | Â | Foreign Currency | Â | Total | Â | UAH | Â | Foreign Currency | Â | Total |
RB | 27.3 | Â | 49.8 | Â | 77.1 | 27.1 | Â | 47.0 | Â | 74.1 | 26.7 | Â | 52.0 | Â | 81.7 | |||
CB | Â | 34.0 | Â | 3.7 | Â | 37.7 | Â | 42.2 | Â | 4.8 | Â | 47.0 | Â | 36.2 | Â | 9.5 | Â | 45.7 |
Total | 61.3 | 53.5 | 114.8 | 69.3 | 51.8 | 121.1 | 65.9 | 61.5 | 127.4 |
As of 30 June 2009, BG Bank’s regulatory position remained strong. National Bank of Ukraine (NBU) Capital Adequacy Ratio of BG Bank stood at 24.5% well above 8% required by NBU. In Q2 2009 Current and Short-Term Liquidity Ratios of BG Bank stood at 53% and 41%, respectively, higher than the NBU requirement of 40% and 20% respectively
Belaruskiy Narodniy Bank, Belarus (BNB)
In Q2 2009 BNB’s Total Operating Income decreased to GEL 1.7 million, down 29.6% q-o-q, mostly due to decreased FX related income in Belarus during the quarter. In Q1 2009, BNB reported extraordinary FX related income due to one-off 20% devaluation of BYR. BNB’s Recurring Costs stood at GEL 1.5 million, down 3.2% q-o-q, resulting in a Net Income of GEL 197 thousand as compared to Net Income of GEL 0.7 million in Q1 2009 and Net Loss of GEL 0.2 million in Q4 2008.
In 1H 2009 BNB’s Total Operating Income reached GEL 4.1 million, while Total Recurring Operating Costs stood at GEL 3.0 million. NNOI equaled GEL 1.2 million for 1H 2009. BNB reported Net Income of GEL 0.9 million for 1H 2009.
On 30 June 2009 BNB’s Total Assets stood at GEL 51.9 million, down 13.6% q-o-q and Gross Loans to Clients equaled GEL 27.4 million, down 7.5% q-o-q. Client Deposits amounted to GEL 16.2 million, down 36.1% q-o-q, primarily caused by the withdrawal of one deposit in the amount of US$3.75 million, which was part of the holdback at the time of the acquisition of BNB by the Bank. The second part of the holdback, subject to the holdback provision, in the amount of US$3.75 million may be withdrawn in Q2 2010. Total Liabilities stood at GEL 19.1 million, down 27.9% q-o-q.
Breakdown of the BNB’s Total Gross Loans, currency, loan loss reserves and NPLs by Business Units
GEL million | Â | BYR | Â | Foreign Currency | Â | Gross Loan Book | Â | LL Reserves | Â | Net Loan Book | Â | NPLs |
RB | Â | 0.5 | Â | 2.3 | Â | 2.8 | Â | (0.2) | Â | 2.6 | Â | 0.1 |
CB | Â | 11.5 | Â | 13.1 | Â | 24.6 | Â | (1.0) | Â | 23.6 | Â | 2.2 |
Total | 12.0 | 15.4 | 27.3 | (1.2) | 26.2 | 2.3 |
Breakdown of BNB’s Total Deposits by currency
30-Jun-09 | 31-Mar-09 | 31-Dec-08 | |||||||
GEL million | BYR | Foreign Currency | Total | BYR | Foreign Currency | Total | BYR | Foreign Currency | Total |
RB | 0.2 | 3.7 | 4.0 | 0.2 | 4.2 | 4.4 | 0.3 | 4.0 | 4.3 |
CB | 3.7 | 8.6 | 12.3 | 4.2 | 16.8 | 21.0 | 9.1 | 17.3 | 26.4 |
Total | 3.9 | 12.3 | 16.2 | 4.4 | 21.0 | 25.4 | 9.4 | 21.3 | 30.7 |
Total Capital Adequacy stood at solid 55.4%, while Tier I Capital Adequacy Ratio amounted to 28.7%. National Bank of Belarus requires Total Capital Adequacy ratio of 8% and Tier I Capital Adequacy Ratio of 4%. As of 1 January 2010, capital requirement by the National Bank of Belarus will increase from the current EUR 10 million to EUR 25 million.
Galt & Taggart Securities (GTS)
In Q2 2009 GTS completed rationalizing of its operations achieving closer integration of its teams in Georgia, Ukraine and Belarus. GTS’s Revenue for the quarter amounted to GEL 1.5 million and Net Income to GEL 0.8 million. GTS’s Revenue for 1H 2009 was GEL 2.8 million and Net Income was GEL 0.9 million.
Asset Management (AM)
As part of the effort to restructure the Bank’s position in the Asset Management segment, the Bank is in the process of sale of its equity interest in GTAM to minority shareholder of GTAM. The sale is expected to be completed in the middle of September 2009.
Insurance
Aldagi BCI, the Bank’s wholly-owned insurance subsidiary, reported Q2 2009 Net Income of GEL 1.6 million (as compared to Net Income of GEL 656 thousand in Q1 2009 and Net Income of GEL 36 thousand in Q2 2008). The successful clean-up of Aldagi BCI’s health insurance portfolio and introduction of new tariffs translated into 34.6% y-o-y growth of Q2 2009 Net Premiums Earned to GEL 12.8 million (up 109.8% q-o-q). Revenue grew by 34.0% y-o-y to GEL 3.9 million in Q2 2009. The notable improvement of Aldagi BCI’s cost control and efficiency and better claims management resulted in the 23.5% y-o-y decrease of Operating Costs to GEL 2.3 million. In 1H 2009 Aldagi BCI’s Gross Premiums Written grew 26.6% y-o-y to GEL 37.7 million. Net Premiums Earned increased 40.2% y-o-y, reaching GEL 24.5 million. Revenue for 1H 2009 equaled GEL 7.8 million, up 45.3% y-o-y.
In light of Aldagi BCI’s increased operating efficiency and improved financial performance, the Bank has temporarily suspended its search for a strategic partner for Aldagi BCI announced previously. The Bank’s objective now is to complete the rationalization of Aldagi BCI’s business and further improve company’s financial performance. The Bank will again review its position in respect of Aldagi BCI in 2010.
STANDALONE Q2 2009 INCOME STATEMENT DATA
Period Ended | Â | Q2 2009 | Â | Â | Q1 20091 | Â | Growth4 | Â | Q2 2008 | Â | Growth | ||||||
Standalone, IFRS Based | US$2 | GEL | US$3 | Â | GEL | Q-O-Q | US$5 | Â | GEL | Y-O-Y | |||||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Interest Income | 51,621 | 85,582 | 56,235 | 90,982 | -5.94% | 64,331 | 91,222 | -6.18% | |||||||||
Interest Expense | 24,179 | 40,087 | 24,323 | 40,620 | -1.31% | 29,007 | 41,131 | -2.54% | |||||||||
Net Interest Income | 27,441 | 45,495 | 31,912 | 50,363 | -9.66% | 35,325 | 50,090 | -9.17% | |||||||||
Fee & Commission Income | 6,298 | 10,442 | 6,126 | 10,231 | 2.06% | 8,576 | 12,161 | -14.14% | |||||||||
Fee & Commission Expense | 1,334 | 2,212 | 1,336 | 2,231 | -0.87% | 1,411 | 2,001 | 10.54% | |||||||||
Net Fee & Commission Income | 4,964 | 8,230 | 4,790 | 8,000 | 2.88% | 7,165 | 10,160 | -19.00% | |||||||||
Income From Documentary Operations | 1,433 | 2,376 | 1,612 | 2,692 | -11.74% | 1,615 | 2,290 | 3.76% | |||||||||
Expense On Documentary Operations | 363 | 601 | 273 | 456 | 31.93% | 294 | 417 | 44.12% | |||||||||
Net Income From Documentary Operations | 1,071 | 1,775 | 1,339 | 2,237 | -20.63% | 1,321 | 1,873 | -5.22% | |||||||||
Net Foreign Currency Related Income | 3,856 | 6,392 | 3,343 | 5,583 | 14.50% | 6,460 | 9,161 | -30.22% | |||||||||
Net Other Non-Interest Income | 244 | 404 | 270 | 450 | -10.36% | (135) | (191) | NMF | |||||||||
Net Non-Interest Income | 10,134 | 16,801 | 9,742 | 16,270 | 3.27% | 14,812 | 21,003 | -20.01% | |||||||||
Total Operating Income (Revenue) | 37,576 | 62,297 | 41,654 | 66,632 | -6.51% | 50,136 | 71,093 | -12.37% | |||||||||
Personnel Costs | 8,949 | 14,836 | 8,800 | 14,695 | 0.96% | 12,064 | 17,106 | -13.27% | |||||||||
Selling, General & Administrative Costs | 3,603 | 5,974 | 3,788 | 6,325 | -5.56% | 4,355 | 6,175 | -3.26% | |||||||||
Procurement & Operations Support Expenses | 1,551 | 2,571 | 1,631 | 2,725 | -5.62% | 2,286 | 3,242 | -20.68% | |||||||||
Depreciation & Amortization | 3,154 | 5,229 | 2,454 | 4,097 | 27.62% | 2,741 | 3,886 | 34.55% | |||||||||
Other Operating Expenses | 652 | 1,082 | 566 | 945 | 14.50% | 951 | 1,348 | -19.76% | |||||||||
Total Recurring Operating Costs | 17,909 | 29,692 | 17,238 | 28,787 | 3.14% | 22,396 | 31,758 | -6.50% | |||||||||
Normalized Net Operating Income | 19,666 | 32,605 | 24,417 | 37,845 | -13.85% | 27,740 | 39,336 | -17.11% | |||||||||
Net Non-Recurring Income (Costs) | (1,169) | (1,938) | 322 | 538 | NMF | 1,840 | 2,609 | -215.52% | |||||||||
Profit Before Provisions | 18,497 | 30,666 | 24,095 | 37,307 | -17.80% | 29,580 | 41,945 | -26.89% | |||||||||
Net Provision Expense | 17,852 | 29,598 | 16,146 | 24,032 | 23.16% | 6,032 | 8,553 | 246.05% | |||||||||
Pre-Tax Income | 645 | 1,069 | 7,949 | 13,275 | -91.95% | 23,548 | 33,392 | -96.80% | |||||||||
Income Tax Expenses/(Benefit) | 97 | 160 | 1,192 | 1,991 | -91.95% | 3,532 | 5,009 | -96.80% | |||||||||
Net Income | 548 | 908 | 6,757 | 11,284 | -91.95% | 20,016 | 28,383 | -96.80% |
1 Q1 2009 results reflect the downward restatement of both
Interest Income and Net Provision Expense by GEL 2.9 million; Net Income
for the period hasn’t been revised.
2 Converted to U.S.
dollars for convenience using a period-end exchange rate of GEL 1.6579
per U$S1.00, such rate being the official Georgian Lari to U.S. dollar
period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2009
3 Converted to U.S. dollars for
convenience using a period-end exchange rate of GEL 1.6700 per U$S1.00,
such rate being the official Georgian Lari to U.S. dollar period-end
exchange rate as reported by the National Bank of Georgia as at 31 March
2009
4Growth calculations based on GEL values
5
Converted to U.S. dollars for convenience using a period-end exchange
rate of GEL 1.4180 per U$S1.00, such rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National
Bank of Georgia as at 30 June 2008
STANDALONE 1H 2009 INCOME STATEMENT DATA
Period Ended | Â | 1H 2009 | Â | 1H 2008 | Â | Growth3 | |||||
Standalone, IFRS Based | US$1 | Â | GEL | US$2 | Â | GEL | Y-O-Y | ||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | |||||||||
Interest Income | 106,499 | 176,564 | 121,343 | 172,065 | 2.61% | ||||||
Interest Expense | 48,680 | 80,706 | 54,062 | 76,661 | 5.28% | ||||||
Net Interest Income | 57,819 | 95,858 | 67,281 | 95,404 | 0.48% | ||||||
Fee & Commission Income | 12,469 | 20,673 | 15,954 | 22,623 | -8.62% | ||||||
Fee & Commission Expense | 2,680 | 4,443 | 2,349 | 3,330 | 33.41% | ||||||
Net Fee & Commission Income | 9,790 | 16,230 | 13,606 | 19,293 | -15.88% | ||||||
Income From Documentary Operations | 3,057 | 5,068 | 2,988 | 4,237 | 19.62% | ||||||
Expense On Documentary Operations | 637 | 1,057 | 647 | 917 | 15.21% | ||||||
Net Income From Documentary Operations | 2,420 | 4,012 | 2,341 | 3,320 | 20.84% | ||||||
Net Foreign Currency Related Income | 7,223 | 11,975 | 14,340 | 20,334 | -41.11% | ||||||
Net Other Non-Interest Income | 515 | 854 | -462 | (655) | NMF | ||||||
Net Non-Interest Income | 19,948 | 33,071 | 29,825 | 42,292 | -21.80% | ||||||
Total Operating Income (Revenue) | 77,766 | 128,929 | 97,106 | 137,696 | -6.37% | ||||||
Personnel Costs | 17,812 | 29,531 | 24,371 | 34,558 | -14.54% | ||||||
Selling, General & Administrative Costs | 7,418 | 12,299 | 7,652 | 10,850 | 13.35% | ||||||
Procurement & Operations Support Expenses | 3,194 | 5,296 | 4,475 | 6,346 | -16.54% | ||||||
Depreciation & Amortization | 5,625 | 9,326 | 4,914 | 6,967 | 33.86% | ||||||
Other Operating Expenses | 1,222 | 2,026 | 1,023 | 1,450 | 39.74% | ||||||
Total Recurring Operating Costs | 35,273 | 58,479 | 42,434 | 60,171 | -2.81% | ||||||
Normalized Net Operating Income | 42,493 | 70,450 | 54,672 | 77,525 | -9.13% | ||||||
Net Non-Recurring Income (Costs) | (1,493) | (2,476) | 682 | 966 | NMF | ||||||
Profit Before Provisions | 41,000 | 67,974 | 55,354 | 78,491 | -13.40% | ||||||
Net Provision Expense | 32,348 | 53,630 | 10,753 | 15,248 | 251.71% | ||||||
Pre-Tax Income | 8,652 | 14,344 | 44,600 | 63,243 | -77.32% | ||||||
Income Tax Expenses/(Benefit) | 1,298 | 2,152 | 6,690 | 9,486 | -77.32% | ||||||
Net Income | 7,354 | 12,192 | 37,910 | 53,757 | -77.32% |
1 Converted to U.S. dollars for convenience using a
period-end exchange rate of GEL 1.6579 per U$S1.00, such rate being the
official Georgian Lari to U.S. dollar period-end exchange rate as
reported by the National Bank of Georgia as at 30 June 2009
2
Converted to U.S. dollars for convenience using a period-end exchange
rate of GEL 1.4180 per U$S1.00, such rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National
Bank of Georgia as at 30 June 2008
3Growth calculations
based on GEL values
STANDALONE Q2 2009 BALANCE SHEET DATA
 | 30-Jun-09 |  | 31-Mar-09 |  | 30-Jun-08 |  | Growth4 |  | Growth4 | ||||||||
Standalone, IFRS Based | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Y-O-Y | Q-O-Q | ||||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Cash & Cash Equivalents | 66,203 | 109,758 | 67,042 | 111,960 | 73,777 | 104,615 | 4.92% | -1.97% | |||||||||
Loans & Advances To Credit Institutions | 193,733 | 321,190 | 254,884 | 425,656 | 255,299 | 362,014 | -11.28% | -24.54% | |||||||||
Mandatory Reserve With NBG | 16,708 | 27,701 | 17,634 | 29,449 | 58,663 | 83,184 | -66.70% | -5.94% | |||||||||
Other Accounts With NBG | 78,692 | 130,464 | 43,249 | 72,226 | 65,179 | 92,424 | 41.16% | 80.63% | |||||||||
Balances With & Loans To Other Banks | 98,333 | 163,026 | 194,001 | 323,981 | 131,457 | 186,406 | -12.54% | -49.68% | |||||||||
Available-For-Sale & Trading Securities | - | - | - | - | - | - | NMF | NMF | |||||||||
Treasuries & Equivalents | - | - | - | - | 12,689 | 17,993 | NMF | NMF | |||||||||
Other Fixed Income Instruments | 34,537 | 57,259 | 22,954 | 38,333 | 61,860 | 87,717 | -34.72% | 49.37% | |||||||||
Gross Loans To Clients | 1,035,549 | 1,716,837 | 1,109,171 | 1,852,315 | 1,306,475 | 1,852,581 | -7.33% | -7.31% | |||||||||
Less: Reserve For Loan Losses | (69,257) | (114,821) | (61,464) | (102,645) | (26,620) | (37,747) | 204.19% | 11.86% | |||||||||
Net Loans To Clients | 966,292 | 1,602,016 | 1,047,707 | 1,749,670 | 1,279,855 | 1,814,834 | -11.73% | -8.44% | |||||||||
Insurance Related Assets | - | - | - | - | - | - | NMF | NMF | |||||||||
Investments In Other Business Entities, Net | 189,709 | 314,518 | 188,328 | 314,507 | 221,599 | 314,228 | 0.09% | 0.00% | |||||||||
Property & Equipment Owned, Net | 135,255 | 224,240 | 138,605 | 231,471 | 152,171 | 215,779 | 3.92% | -3.12% | |||||||||
Intangible Assets Owned, Net | 4,379 | 7,260 | 4,076 | 6,807 | 2,638 | 3,741 | 94.10% | 6.65% | |||||||||
Goodwill | 13,742 | 22,783 | 13,642 | 22,783 | 15,968 | 22,643 | 0.62% | 0.00% | |||||||||
Tax Assets - Current & Deferred | - | - | - | - | - | - | NMF | NMF | |||||||||
Prepayments & Other Assets | 16,379 | 27,155 | 9,140 | 15,263 | 16,844 | 23,885 | 13.69% | 77.91% | |||||||||
Total Assets | 1,620,230 | 2,686,180 | 1,746,378 | 2,916,451 | 2,092,699 | 2,967,447 | -9.48% | -7.90% | |||||||||
- | |||||||||||||||||
Client Deposits | 548,436 | 909,252 | 586,214 | 978,977 | 822,684 | 1,166,566 | -22.06% | -7.12% | |||||||||
Deposits & Loans From Banks | 9,811 | 16,265 | 17,573 | 29,348 | 58,267 | 82,623 | -80.31% | -44.58% | |||||||||
Borrowed Funds | 609,036 | 1,009,720 | 696,288 | 1,162,801 | 637,266 | 903,644 | 11.74% | -13.16% | |||||||||
Issued Fixed Income Securities | - | - | - | - | - | - | NMF | NMF | |||||||||
Insurance Related Liabilities | - | - | - | - | - | - | NMF | NMF | |||||||||
Tax Liabilities - Current & Deferred | 10,274 | 17,033 | 9,682 | 16,169 | 19,743 | 27,995 | -39.16% | 5.34% | |||||||||
Accruals & Other Liabilities | 14,246 | 23,620 | 13,644 | 22,786 | 48,392 | 68,620 | -65.58% | 3.65% | |||||||||
Total Liabilities | 1,191,802 | 1,975,888 | 1,323,402 | 2,210,081 | 1,586,352 | 2,249,447 | -12.16% | -10.60% | |||||||||
Ordinary Shares | 18,862 | 31,272 | 18,719 | 31,261 | 22,036 | 31,248 | 0.08% | 0.03% | |||||||||
Share Premium | 283,702 | 470,349 | 279,874 | 467,390 | 325,295 | 461,268 | 1.97% | 0.63% | |||||||||
Treasury Shares | (677) | (1,123) | (699) | (1,167) | (1,036) | (1,469) | -23.58% | -3.75% | |||||||||
Retained Earnings | 83,438 | 138,332 | 82,834 | 138,332 | 82,927 | 117,590 | 17.64% | 0.00% | |||||||||
Revaluation & Other Reserves | 35,750 | 59,269 | 35,491 | 59,269 | 39,215 | 55,607 | 6.59% | 0.00% | |||||||||
Net Income (Loss) For The Period | 7,354 | 12,192 | 6,757 | 11,284 | 37,910 | 53,757 | -77.32% | 8.05% | |||||||||
Shareholders' Equity Excluding Minority Interest | 428,428 | 710,291 | 422,976 | 706,370 | 506,347 | 718,000 | -1.07% | 0.56% | |||||||||
Minority Interest | - | - | - | - | - | - | NMF | NMF | |||||||||
Total Shareholders' Equity | 428,428 | 710,291 | 422,976 | 706,370 | 506,347 | 718,000 | -1.07% | 0.56% | |||||||||
Total Liabilities & Shareholders' Equity | 1,620,230 | 2,686,180 | 1,746,378 | 2,916,451 | 2,092,699 | 2,967,447 | -9.48% | -7.90% |
1 Converted to U.S. dollars for the convenience using a
period-end exchange rate of GEL 1.6579 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 30 June 2009
2
Converted to U.S. dollars for the convenience using a period-end
exchange rate of GEL 1.6700 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 2009
3
Converted to U.S. dollars for the convenience using a period-end
exchange rate of GEL 1.4180 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 30 June 2008
4
Growth calculations based on GEL values
BG BANK (UKRAINE) 1H 2009 INCOME STATEMENT DATA
Period Ended | Â | 1H 2009 | Â | 1H 2008 | Â | Growth3 | |||||
Standalone, IFRS Based | US$1 | Â | GEL | US$1 | Â | GEL | Y-O-Y | ||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | |||||||||
Interest Income | 12,215 | 20,251 | 17,585 | 24,936 | -18.79% | ||||||
Interest Expense | 7,873 | 13,053 | 10,027 | 14,218 | -8.19% | ||||||
Net Interest Income | 4,342 | 7,198 | 7,559 | 10,718 | -32.84% | ||||||
Fee & Commission Income | 1,145 | 1,899 | 1,133 | 1,607 | 18.17% | ||||||
Fee & Commission Expense | 257 | 426 | 395 | 560 | -23.86% | ||||||
Net Fee & Commission Income | 888 | 1,473 | 738 | 1,047 | 40.66% | ||||||
Income From Documentary Operations | - | - | - | - | NMF | ||||||
Expense On Documentary Operations | - | - | - | - | NMF | ||||||
Net Income From Documentary Operations | - | - | - | - | NMF | ||||||
Net Foreign Currency Related Income | 1,436 | 2,381 | 1,046 | 1,484 | 60.49% | ||||||
Net Other Non-Interest Income | - | - | - | - | NMF | ||||||
Net Non-Interest Income | 2,324 | 3,854 | 1,785 | 2,530 | 52.29% | ||||||
Total Operating Income (Revenue) | 6,666 | 11,052 | 9,343 | 13,248 | -16.58% | ||||||
Personnel Costs | 3,904 | 6,472 | 6,262 | 8,879 | -27.11% | ||||||
Selling, General & Administrative Costs | 1,079 | 1,788 | 3,476 | 4,929 | -63.72% | ||||||
Procurement & Operations Support Expenses | 653 | 1,082 | - | - | NMF | ||||||
Depreciation & Amortization | 294 | 487 | 299 | 424 | 14.89% | ||||||
Other Operating Expenses | 249 | 412 | 24 | 34 | 1108.04% | ||||||
Total Recurring Operating Costs | 6,177 | 10,241 | 10,061 | 14,266 | -28.21% | ||||||
Normalized Net Operating Income | 489 | 811 | (718) | (1,017) | NMF | ||||||
Net Non-Recurring Income (Costs) | (206) | (342) | 74 | 104 | NMF | ||||||
Profit Before Provisions | 283 | 469 | (644) | (913) | NMF | ||||||
Net Provision Expense | 12,309 | 20,407 | (606) | (859) | NMF | ||||||
Pre-Tax Income | (12,026) | (19,938) | (38) | (54) | |||||||
Income Tax Expenses/(Benefit) | (1,099) | (1,823) | (10) | (15) | |||||||
Net Income | (10,927) | (18,116) | (28) | (40) |
1 Converted to U.S. dollars for convenience using a
period-end exchange rate of GEL 1.6579 per U$S1.00, such rate being the
official Georgian Lari to U.S. dollar period-end exchange rate as
reported by the National Bank of Georgia as at 30 June 2009
2
Converted to U.S. dollars for convenience using a period-end exchange
rate of GEL 1.4180 per U$S1.00, such rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National
Bank of Georgia as at 30 June 2008
3Growth calculations
based on GEL values
BNB (BELARUS) 1H 2009 INCOME STATEMENT DATA
 | 1H 2009 | |||||
Period Ended | US$1 | Â | Â | Â | GEL | |
Standalone, IFRS Based | (Unaudited) | |||||
000s, unless otherwise noted | ||||||
Interest Income | 1,839 | 3,049 | ||||
Interest Expense | 666 | 1,104 | ||||
Net Interest Income | 1,174 | 1,946 | ||||
Fee & Commission Income | 447 | 741 | ||||
Fee & Commission Expense | 65 | 107 | ||||
Net Fee & Commission Income | 383 | 634 | ||||
Income From Documentary Operations | 2 | 3 | ||||
Expense On Documentary Operations | 1 | 1 | ||||
Net Income From Documentary Operations | 1 | 2 | ||||
Net Foreign Currency Related Income | 880 | 1,459 | ||||
Net Other Non-Interest Income | 62 | 102 | ||||
Net Non-Interest Income | 1,326 | 2,198 | ||||
Total Operating Income (Revenue) | 2,499 | 4,143 | ||||
Personnel Costs | 922 | 1,528 | ||||
Selling, General & Administrative Costs | 190 | 314 | ||||
Procurement & Operations Support Expenses | 282 | 467 | ||||
Depreciation & Amortization | 183 | 304 | ||||
Other Operating Expenses | 211 | 349 | ||||
Total Recurring Operating Costs | 1,787 | 2,963 | ||||
Normalized Net Operating Income | 712 | 1,180 | ||||
Net Non-Recurring Income (Costs) | 12 | 19 | ||||
Profit Before Provisions | 723 | 1,199 | ||||
Net Provision Expense | 1 | 1 | ||||
Pre-Tax Income | 723 | 1,198 | ||||
Income Tax Expenses/(Benefit) | 205 | 340 | ||||
Net Income | 517 | 858 |
1 Converted to U.S. dollars for convenience using a period-end exchange rate of GEL 1.6579 per U$S1.00, such rate being the official Georgian Lari to U.S. dollar period-end exchange rate as reported by the National Bank of Georgia as at 30 June 2009
CONSOLIDATED Q2 2009 INCOME STATEMENT DATA
Period Ended | Â | Q2 2009 | Â | Q1 20091 | Â | Q2 2008 | Â | Growth5 | Â | Growth5 | |||||||
Consolidated, IFRS Based | US$2 | Â | GEL | US$3 | Â | GEL | US$4 | Â | GEL | Y-O-Y | Q-O-Q | ||||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Interest Income | 57,028 | 94,547 | 60,978 | 101,833 | 73,481 | 104,196 | -9.26% | -7.15% | |||||||||
Interest Expense | 27,201 | 45,097 | 29,586 | 49,409 | 34,106 | 48,362 | -6.75% | -8.73% | |||||||||
Net Interest Income | 29,827 | 49,451 | 31,391 | 52,423 | 39,375 | 55,834 | -11.43% | -5.67% | |||||||||
Fee & Commission Income | 7,189 | 11,918 | 6,823 | 11,395 | 8,787 | 12,460 | -4.34% | 4.59% | |||||||||
Fee & Commission Expense | 1,502 | 2,490 | 1,489 | 2,486 | 1,619 | 2,296 | 8.43% | 0.17% | |||||||||
Net Fee & Commission Income | 5,687 | 9,428 | 5,335 | 8,909 | 7,167 | 10,163 | -7.23% | 5.83% | |||||||||
Income From Documentary Operations | 1,434 | 2,377 | 1,614 | 2,695 | 1,615 | 2,290 | 3.80% | -11.80% | |||||||||
Expense On Documentary Operations | 363 | 601 | 274 | 457 | 294 | 417 | 44.16% | 31.64% | |||||||||
Net Income From Documentary Operations | 1,071 | 1,776 | 1,340 | 2,238 | 1,321 | 1,873 | -5.19% | -20.66% | |||||||||
Net Foreign Currency Related Income | 4,261 | 7,064 | 5,256 | 8,778 | 7,338 | 10,405 | -32.11% | -19.53% | |||||||||
Net Insurance Income | 3,047 | 5,052 | 1,821 | 3,042 | 1,224 | 1,736 | 191.05% | 66.09% | |||||||||
Brokerage Income | 813 | 1,348 | 202 | 337 | 1,104 | 1,566 | -77.80% | 3.05% | |||||||||
Asset Management Income | 155 | 256 | 97 | 162 | 174 | 246 | 4.04% | 58.41% | |||||||||
Realized Net Investment Gains (Losses) | 185 | 306 | (2) | (3) | (265) | (375) | NMF | NMF | |||||||||
Other | 3,560 | 5,902 | 3,489 | 5,826 | 3,295 | 4,672 | 26.31% | 1.30% | |||||||||
Net Other Non-Interest Income | 7,759 | 12,864 | 5,607 | 9,364 | 5,533 | 7,845 | 63.97% | 37.38% | |||||||||
Net Non-Interest Income | 18,778 | 31,132 | 17,539 | 29,289 | 21,359 | 30,287 | 2.79% | 6.29% | |||||||||
Total Operating Income (Revenue) | 48,605 | 80,582 | 48,930 | 81,713 | 60,734 | 86,121 | -6.43% | -1.38% | |||||||||
Personnel Costs | 13,990 | 23,193 | 13,164 | 21,985 | 19,224 | 27,260 | -14.92% | 5.50% | |||||||||
Selling, General & Administrative Costs | 6,017 | 9,976 | 6,999 | 11,688 | 8,463 | 12,001 | -16.87% | -14.65% | |||||||||
Procurement & Operations Support Expenses | 2,345 | 3,888 | 1,771 | 2,957 | 2,286 | 3,242 | 19.92% | 31.47% | |||||||||
Depreciation & Amortization | 3,967 | 6,576 | 3,105 | 5,185 | 3,289 | 4,664 | 40.99% | 26.83% | |||||||||
Other Operating Expenses | 1,623 | 2,691 | 1,694 | 2,830 | 1,195 | 1,695 | 58.82% | -4.89% | |||||||||
Total Recurring Operating Costs | 27,941 | 46,324 | 26,733 | 44,645 | 34,458 | 48,861 | -5.19% | 3.76% | |||||||||
Normalized Net Operating Income | 20,664 | 34,258 | 22,196 | 37,068 | 26,276 | 37,260 | -8.06% | -7.58% | |||||||||
Net Non-Recurring Income (Costs) | (175) | (290) | (137) | (228) | 2,252 | 3,194 | -109.07% | 26.77% | |||||||||
Profit Before Provisions | 20,489 | 33,969 | 22,060 | 36,839 | 28,529 | 40,454 | -0.29% | -7.79% | |||||||||
Net Provision Expense | 24,543 | 40,690 | 19,198 | 32,061 | 5,073 | 7,194 | 465.62% | 26.91% | |||||||||
Pre-Tax Income | (4,054) | (6,721) | 2,861 | 4,778 | 23,455 | 33,260 | NMF | NMF | |||||||||
Income Tax Expenses/(Benefit) | (1,445) | (2,395) | (181) | (302) | 3,473 | 4,924 | NMF | 692.93% | |||||||||
Net Income | (2,610) | (4,326) | 3,042 | 5,080 | 19,983 | 28,335 | NMF | NMF |
1 Q1 2009 results reflect the downward restatement of both
Interest Income and Net Provision Expense by GEL 2.9 million; Net Income
for the period hasn’t been revised
2 Converted to U.S.
dollars for convenience using a period-end exchange rate of GEL 1.6579
per U$S1.00, such rate being the official Georgian Lari to U.S. dollar
period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2009
3 Converted to U.S. dollars for
convenience using a period-end exchange rate of GEL 1.6700 per U$S1.00,
such rate being the official Georgian Lari to U.S. dollar period-end
exchange rate as reported by the National Bank of Georgia as at 31 March
2009
4Growth calculations based on GEL values
5
Converted to U.S. dollars for convenience using a period-end exchange
rate of GEL 1.4180 per U$S1.00, such rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National
Bank of Georgia as at 30 June 2008
CONSOLIDATED 1H 2009 INCOME STATEMENT DATA
Period Ended | Â | 1H 2009 | Â | 1H 2008 | Â | Growth | |||||
Consolidated, IFRS Based | US$1 | Â | GEL | US$2 | Â | GEL | Y-O-Y | ||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | |||||||||
Interest Income | 118,451 | 196,380 | 138,770 | 196,777 | -0.20% | ||||||
Interest Expense | 57,003 | 94,506 | 64,300 | 91,177 | 3.65% | ||||||
Net Interest Income | 61,448 | 101,874 | 74,471 | 105,599 | -3.53% | ||||||
Fee & Commission Income | 14,062 | 23,313 | 17,088 | 24,230 | -3.79% | ||||||
Fee & Commission Expense | 3,001 | 4,976 | 2,744 | 3,890 | 27.91% | ||||||
Net Fee & Commission Income | 11,060 | 18,337 | 14,344 | 20,340 | -9.85% | ||||||
Income From Documentary Operations | 3,059 | 5,072 | 2,988 | 4,237 | 19.71% | ||||||
Expense On Documentary Operations | 638 | 1,058 | 647 | 917 | 15.35% | ||||||
Net Income From Documentary Operations | 2,421 | 4,014 | 2,341 | 3,320 | 20.91% | ||||||
Net Foreign Currency Related Income | 9,555 | 15,842 | 16,665 | 23,631 | -32.96% | ||||||
Net Insurance Income | 4,882 | 8,094 | 2,379 | 3,373 | 139.94% | ||||||
Brokerage Income | 1,016 | 1,685 | 2,003 | 2,841 | -75.89% | ||||||
Asset Management Income | 252 | 418 | 629 | 892 | -53.16% | ||||||
Realized Net Investment Gains (Losses) | 185 | 303 | (528) | (748) | NMF | ||||||
Other | 7,074 | 11,728 | 5,477 | 7,767 | 51.00% | ||||||
Net Other Non-Interest Income | 13,407 | 22,228 | 9,961 | 14,125 | 57.36% | ||||||
Net Non-Interest Income | 36,444 | 60,421 | 43,312 | 61,416 | -1.62% | ||||||
Total Operating Income (Revenue) | 97,892 | 162,295 | 117,782 | 167,016 | -2.83% | ||||||
Personnel Costs | 27,250 | 45,178 | 37,369 | 52,989 | -14.74% | ||||||
Selling, General & Administrative Costs | 13,067 | 21,664 | 16,435 | 23,305 | -7.04% | ||||||
Procurement & Operations Support Expenses | 4,129 | 6,845 | 4,475 | 6,346 | 7.87% | ||||||
Depreciation & Amortization | 7,094 | 11,761 | 6,131 | 8,694 | 35.28% | ||||||
Other Operating Expenses | 3,330 | 5,521 | 1,415 | 2,006 | 175.21% | ||||||
Total Recurring Operating Costs | 54,870 | 90,969 | 65,825 | 93,339 | -2.54% | ||||||
Normalized Net Operating Income | 43,022 | 71,326 | 51,958 | 73,676 | -3.19% | ||||||
Net Non-Recurring Income (Costs) | (312) | (518) | 8,365 | 11,862 | -104.37% | ||||||
Profit Before Provisions | 42,709 | 70,808 | 60,323 | 85,538 | -17.22% | ||||||
Net Provision Expense | 43,881 | 72,751 | 10,328 | 14,645 | 396.77% | ||||||
Pre-Tax Income | (1,172) | (1,943) | 49,995 | 70,893 | NMF | ||||||
Income Tax Expenses/(Benefit) | (1,627) | (2,697) | 7,504 | 10,640 | NMF | ||||||
Net Income | 455 | 754 | 42,491 | 60,253 | -98.75% |
1 Converted to U.S. dollars for convenience using a
period-end exchange rate of GEL 1.6579 per U$S1.00, such rate being the
official Georgian Lari to U.S. dollar period-end exchange rate as
reported by the National Bank of Georgia as at 30 June 2009
2 Converted
to U.S. dollars for convenience using a period-end exchange rate of GEL
1.6700 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of
Georgia as at 31 March 2009
CONSOLIDATED Q2 2009 BALANCE SHEET DATA
 | 30-Jun-09 |  | 31-Mar-09 |  | 30-Jun-08 |  | Growth5 |  | Growth5 | |||||||
Consolidated, IFRS Based | US$1 | Â | GEL | US$2 | Â | GEL | US$3 | Â | GEL | Y-O-Y | Q-O-Q | |||||
000s, unless otherwise noted | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Cash & Cash Equivalents | 85,886 | 142,390 | 102,477 | 171,136 | 73,777 | 104,615 | 36.11% | -16.80% | ||||||||
Loans & Advances To Credit Institutions | 187,879 | 311,484 | 248,418 | 414,857 | 255,299 | 362,014 | -13.96% | -24.92% | ||||||||
Mandatory Reserve With NBG | 20,473 | 33,943 | 29,350 | 49,014 | 58,663 | 83,184 | -59.20% | -30.75% | ||||||||
Other Accounts With NBG | 78,692 | 130,464 | 43,249 | 72,226 | 65,179 | 92,424 | 41.16% | 80.63% | ||||||||
Balances With & Loans To Other Banks | 88,713 | 147,077 | 175,818 | 293,617 | 131,457 | 186,406 | -21.10% | -49.91% | ||||||||
Available-For-Sale & Trading Securities | 17,128 | 28,396 | 24,252 | 40,501 | - | - | NMF | NMF | ||||||||
Treasuries & Equivalents | - | - | - | - | 12,689 | 17,993 | NMF | NMF | ||||||||
Other Fixed Income Instruments | 35,651 | 59,105 | 22,967 | 38,355 | 61,860 | 87,717 | -32.62% | 54.10% | ||||||||
Gross Loans To Clients | 1,148,849 | 1,904,676 | 1,225,658 | 2,046,850 | 1,306,475 | 1,852,581 | 2.81% | -6.95% | ||||||||
Less: Reserve For Loan Losses | (93,535) | (155,072) | (80,985) | (135,245) | (26,620) | (37,747) | 310.82% | 14.66% | ||||||||
Net Loans To Clients | 1,055,313 | 1,749,604 | 1,144,673 | 1,911,604 | 1,279,855 | 1,814,834 | -3.59% | -8.47% | ||||||||
Insurance Related Assets | 28,569 | 47,365 | 31,506 | 52,615 | - | - | NMF | NMF | ||||||||
Investments In Other Business Entities, Net | 48,787 | 80,884 | 21,875 | 36,531 | 221,599 | 314,228 | -74.26% | 121.41% | ||||||||
Property & Equipment Owned, Net | 171,397 | 284,159 | 203,532 | 339,898 | 152,171 | 215,779 | 31.69% | -16.40% | ||||||||
Intangible Assets Owned, Net | 7,195 | 11,928 | 6,839 | 11,421 | 2,638 | 3,741 | 218.88% | 4.44% | ||||||||
Goodwill | 81,604 | 135,291 | 80,992 | 135,257 | 15,968 | 22,643 | 497.50% | 0.03% | ||||||||
Tax Assets - Current & Deferred | 4,996 | 8,283 | 4,003 | 6,685 | - | - | NMF | NMF | ||||||||
Prepayments & Other Assets | 29,515 | 48,933 | 16,705 | 27,898 | 16,844 | 23,885 | 104.87% | 75.40% | ||||||||
Total Assets | 1,753,919 | 2,907,822 |
1,908,239 |
3,186,759 |
2,092,699 | 2,967,447 | -2.01% | -8.75% | ||||||||
 | ||||||||||||||||
Client Deposits | 618,424 | 1,025,285 | 678,402 | 1,132,931 | 822,684 | 1,166,566 | -12.11% | -9.50% | ||||||||
Deposits & Loans From Banks | 24,805 | 41,124 | 31,702 | 52,942 | 58,267 | 82,623 | -50.23% | -22.32% | ||||||||
Borrowed Funds | 610,037 | 1,011,380 | 696,288 | 1,162,801 | 637,266 | 903,644 | 11.92% | -13.02% | ||||||||
Issued Fixed Income Securities | 119 | 198 | 81 | 136 | - | - | NMF | NMF | ||||||||
Insurance Related Liabilities | 35,987 | 59,663 | 38,207 | 63,806 | - | - | NMF | NMF | ||||||||
Tax Liabilities - Current & Deferred | 11,679 | 19,362 | 11,348 | 18,951 | 19,743 | 27,995 | -30.84% | 2.17% | ||||||||
Accruals & Other Liabilities | 24,676 | 40,910 | 25,955 | 43,345 | 48,392 | 68,620 | -40.38% | -5.62% | ||||||||
Total Liabilities | 1,325,727 | 2,197,922 | 1,481,983 | 2,474,911 | 1,586,352 | 2,249,447 | -2.29% | -11.19% | ||||||||
- | ||||||||||||||||
Ordinary Shares | 18,862 | 31,272 | 18,719 | 31,261 | 22,036 | 31,248 | 0.08% | 0.04% | ||||||||
Share Premium | 277,125 | 459,446 | 274,512 | 458,435 | 325,295 | 461,268 | -0.39% | 0.22% | ||||||||
Treasury Shares | (1,081) | (1,793) | (1,199) | (2,002) | (1,036) | (1,469) | 22.03% | -10.43% | ||||||||
Retained Earnings | 73,081 | 121,161 | 72,529 | 121,123 | 82,927 | 117,590 | 3.04% | 0.03% | ||||||||
Revaluation & Other Reserves | 28,653 | 47,504 | 27,890 | 46,577 | 39,215 | 55,607 | -14.57% | 1.99% | ||||||||
Net Income (Loss) For The Period | 454 | 753 | 3,042 | 5,080 | 37,910 | 53,757 | -98.60% | -85.18% | ||||||||
Shareholders' Equity Excluding Minority Interest | 397,095 | 658,343 | 395,494 | 660,474 | 506,347 | 718,000 | -8.31% | -0.32% | ||||||||
Minority Interest | 31,098 | 51,557 | 30,762 | 51,373 | - | - | NMF | NMF | ||||||||
Total Shareholders' Equity | 428,192 | 709,900 | 426,256 | 711,847 | 506,347 | 718,000 | -1.13% | -0.27% | ||||||||
Total Liabilities & Shareholders' Equity | 1,753,919 | 2,907,822 | 1,908,239 | 3,186,759 | 2,092,699 | 2,967,447 | -2.01% | -8.75% |
1 Converted to U.S. dollars for the convenience using a
period-end exchange rate of GEL 1.6579 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 30 June 2009
2
Converted to U.S. dollars for the convenience using a period-end
exchange rate of GEL 1.67 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 2009
3 Converted
to U.S. dollars for the convenience using a period-end exchange rate of
GEL 1.4180 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 30 June 2008
4 Growth calculations
based on GEL values
KEY RATIOS
 | 1H 2009 |  | 1H 2008 | |
Profitability Ratios | ||||
ROAA 1, Annualised | Â | 0.1% | Â | 3.8% |
ROA | Â | 0.1% | Â | 3.5% |
ROAE2, Annualised | Â | 0.8% | Â | 17.3% |
ROE | Â | 0.9% | Â | 15.4% |
Interest Income To Average Interest Earning Assets 3, Annualised | Â | 17.6% | Â | 16.3% |
Cost Of Funds 4, Annualised | Â | 8.5% | Â | 8.0% |
Net Spread 5 | Â | 9.1% | Â | 8.3% |
Net Interest Margin 6, Annualised | Â | 9.1% | Â | 8.8% |
Loan Yield 7, Annualised | Â | 12.3% | Â | 19.2% |
Interest Expense To Interest Income | Â | 48.1% | Â | 46.3% |
Net Non-Interest Income To Average Total Assets, Annualised | Â | 3.9% | Â | 3.9% |
Net Non-Interest Income To Revenue 8 | Â | 37.2% | Â | 36.8% |
Net Fee And Commission Income To Average Interest Earning Assets 9, Annualised | Â | 1.6% | Â | 1.7% |
Net Fee And Commission Income To Revenue | Â | 11.3% | Â | 12.2% |
Operating Leverage 10 | Â | -15.1% | Â | 9.3% |
Total Operating Income (Revenue) To Total Assets, Annualised | Â | 11.2% | Â | 9.8% |
Recurring Earning Power 11, Annualised | Â | 4.6% | Â | 6.4% |
Net Income To Revenue | Â | 0.5% | Â | 36.1% |
 | ||||
Efficiency Ratios | ||||
Operating Cost To Average Total Assets 12, Annualised | Â | 5.9% | Â | 4.9% |
Cost To Average Total Assets 13, Annualised | Â | 6.0% | Â | 5.1% |
Cost / Income 14 | Â | 56.4% | Â | 48.8% |
Cost / Income, Normalized 37 | Â | 56.1% | Â | 55.9% |
Cost / Income, Bank of Georgia, Standalone 15 | Â | 43.4% | Â | 43.0% |
Cost/Income, Normalized, Bank of Georgia, Standalone | Â | 45.4% | Â | 43.7% |
Cash Cost / Income | Â | 49.1% | Â | 43.6% |
Total Employee Compensation Expense To Revenue 16 | Â | 27.8% | Â | 31.7% |
Total Employee Compensation Expense To Cost | Â | 49.4% | Â | 65.0% |
Total Employee Compensation Expense To Average Total Assets, Annualised | Â | 3.0% | Â | 3.3% |
 | ||||
Liquidity Ratios | ||||
Net Loans To Total Assets 17 | Â | 60.2% | Â | 60.7% |
Average Net Loans To Average Total Assets | Â | 60.9% | Â | 58.4% |
Interest Earning Assets To Total Assets | Â | 72.9% | Â | 75.1% |
Average Interest Earning Assets To Average Total Assets | Â | 73.1% | Â | 75.9% |
Liquid Assets To Total Assets 18 | Â | 17.5% | Â | 18.7% |
Liquid Assets To Total Liabilities, NBG Stand-Alone | Â | 37.6% | Â | 33.8% |
Liquid Assets To Total Liabilities, IFRS Consolidated | Â | 24.6% | Â | 27.9% |
Net Loans To Client Deposits | Â | 170.6% | Â | 147.8% |
Average Net Loans To Average Client Deposits | Â | 173.3% | Â | 136.2% |
Net Loans To Total Deposits 19 | Â | 164.1% | Â | 135.7% |
Net Loans To (Total Deposits + Equity) | Â | 98.5% | Â | 89.5% |
Net Loans To Total Liabilities | Â | 79.6% | Â | 78.8% |
Total Deposits To Total Liabilities | Â | 48.5% | Â | 58.1% |
Client Deposits To Total Deposits | Â | 96.1% | Â | 91.8% |
Client Deposits To Total Liabilities | Â | 46.6% | Â | 53.3% |
Current Account Balances To Client Deposits | Â | 40.6% | Â | 39.3% |
Demand Deposits To Client Deposits | Â | 9.7% | Â | 5.5% |
Time Deposits To Client Deposits | Â | 49.6% | Â | 55.2% |
Total Deposits To Total Assets | Â | 36.7% | Â | 44.7% |
Client Deposits To Total Assets | Â | 35.3% | Â | 41.0% |
Client Deposits To Total Equity (Times) 20 | Â | 1.44 | Â | 1.8 |
Due From Banks / Due To Banks 21 | Â | 757.4% | Â | 308.5% |
Total Equity To Net Loans | Â | 40.6% | Â | 38.0% |
Leverage (Times) 22 | Â | 3.1 | Â | 3.3 |
KEY RATIOS CONT’D
 | 1H 2009 |  | 1H 2008 | |
Asset Quality | ||||
NPLs (in GEL) 23 | Â | 148,767 | Â | 32,086 |
NPLs To Gross Loans To Clients 24 | Â | 7.8% | Â | 1.5% |
Cost of Risk 25, Annualized | Â | 7.3% | Â | 1.6% |
Cost of Risk Normalized 36, Annualized | Â | 7.3% | Â | 1.6% |
Reserve For Loan Losses To Gross Loans To Clients 26 | Â | 8.1% | Â | 2.1% |
NPL Coverage Ratio 27 | Â | 104.2% | Â | 138.3% |
Equity To Average Net Loans To Clients | Â | 38.1% | Â | 42.2% |
 | ||||
Capital Adequacy | ||||
Equity To Total Assets | Â | 24.4% | Â | 23.0% |
BIS Tier I Capital Adequacy Ratio, consolidated 28 | Â | 23.9% | Â | 25.1% |
BIS Total Capital Adequacy Ratio, consolidated 29 | Â | 34.2% | Â | 25.8% |
NBG Tier I Capital Adequacy Ratio 30 | Â | 17.8% | Â | 15.8% |
NBG Total Capital Adequacy Ratio 31 | Â | 18.4% | Â | 15.1% |
 | ||||
Per Share Values | ||||
Basic EPS (GEL) 32 | Â | 0.02 | Â | 2.00 |
Basic EPS (US$) | Â | 0.01 | Â | 1.41 |
Fully Diluted EPS (GEL) 33 | Â | 0.02 | Â | 1.93 |
Fully Diluted EPS (US$) | Â | 0.01 | Â | 1.36 |
Book Value Per Share (GEL) 34 | Â | 22.70 | Â | 25.06 |
Book Value Per Share (US$) | Â | 13.69 | Â | 17.67 |
Ordinary Shares Outstanding - Weighted Average, Basic | Â | 31,263,045 | Â | 30,105,610 |
Ordinary Shares Outstanding - Period End | Â | 31,271,525 | Â | 31,247,511 |
Ordinary Shares Outstanding - Fully Diluted | Â | 34,746,139 | Â | 31,247,511 |
 | ||||
Selected Operating Data | ||||
Full Time Employees (FTEs) | Â | 4,914 | Â | 5,909 |
FTEs, Bank of Georgia Standalone | Â | 2,660 | Â | 3,619 |
Total assets per FTE 23 (GEL Thousands) | Â | 595 | Â | 576 |
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands) | Â | 1,093 | Â | 940 |
Number Of Active Branches | Â | 140 | Â | 134 |
Number Of ATMs | Â | 394 | Â | 363 |
Number Of Cards (Thousands) | Â | 593 | Â | 847 |
Number Of POS Terminals | Â | 1,861 | Â | 2,452 |
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; | |
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, Bank of Georgia, standalone, equals non-consolidated Total Costs of the bank of the period divided by non-consolidated Revenue of the bank of the same period; | |
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 consolidated 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 |
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; |
|
26 | 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; | |
27 | NPL Coverage Ratio equals Reserve For Loan losses as of the period end divided by NPLs 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. |