Full-year figures from Bank of Georgia (BGEO) revealed that pre-tax profit rose 10 per cent in 2013 to GEL141.3m (£48.8m), while the loan book grew nearly 14 per cent. The bank also boasts an impressive capital cushion, with a tier-one capital ratio of 23 per cent - perhaps twice that reported by big western banks.
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But conditions in Georgia can be volatile. For example, the local economy grew an annualised 6.9 per cent in the fourth quarter - good news for credit demand - but economic growth reached just 1.7 per cent in the first nine months of the year. That followed uncertainty after elections in October 2012. What's more, the lender's impairment charge jumped 38 per cent in 2013, which substantially outstrips growth in the loan book.
