Q3 2024 Bank of Georgia Group PLC Earnings Call Transcript
Key Points
- Bank of Georgia Group PLC (BDGSF) reported a record profit of GEL509 million for Q3 2024, marking a 42.5% increase compared to the previous year.
- The company achieved a return on equity of 32% with a low cost of risk at 0.2%, indicating strong financial performance.
- The bank was recognized as the best digital bank in the world by Global Finance Magazine, highlighting its digital capabilities.
- Monthly active users of the bank's retail application grew by 20% year-on-year, surpassing 1.5 million users, demonstrating strong customer engagement.
- Operating income increased by 45.9%, with net interest income growing by 52.6% and non-interest income by 33.3%.
- The bank experienced a slight decrease in net fee and commission income quarter-over-quarter in both Georgia and Armenia due to one-off events.
- There was a GEL10 million charge related to a special shopping day promotion, which, while popular, impacted financials negatively.
- The cost-to-income ratio for Armenia was just below 50%, indicating room for improvement in operational efficiency.
- The net interest margin was 10 basis points lower, reflecting pressure on deposit rates despite a declining rate environment.
- The bank's share price experienced volatility due to political uncertainties related to recent elections in Georgia.
Today, we are presenting the group's consolidated results for the third quarter of 2024. As always, I'm joined on this call by the Group CEO, Archil Gachechiladze, and we'll start with our presentation, discuss the key developments as well as the highlights of the quarter. And then we'll open the floor for questions. Please be aware that this call is being recorded.
And Archil, you can go ahead now.
Hello, everyone. Thank you for joining this call. We had a record profit in the third quarter of this year, GEL509 million, which is up 42.5% versus last year, although this year obviously includes Ameriabank from Armenia, which is a (inaudible) bank in Armenia and is progressing very well. Return on equity was 32% with a very low cost of risk of 0.2% and cost income just shy of 35%, which we feel comfortable with.
So with this, there's one other small good news that I wanted to share
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