Georgia Healthcare Group (GHG) is the jewel in the crown of Bank of Georgia (BGEO), delivering a 56 per cent increase in first-half revenues to GEL174m (£58m). What's more, the healthcare entity, which was spun out of the banking business in November, seems to have made investors sit up and take notice of the investment case of its parent company.
Retail banking revenue in the second quarter grew 9 per cent on the previous year to GEL113m, supported by an uplift in the net loan book of almost a fifth. Its premium banking brand, Solo, made particularly good progress, growing its client numbers by 61 per cent to 14,896. Management aims to drive up its premium market share during the next three to four years, which stood at just 13 per cent when it launched in its current format in 2015.
Gains made in retail banking helped offset a decline in its corporate operations, where the value of the net loan book fell 5.6 per cent to GEL2,066. Management is trying to reduce concentration risk in its corporate lending portfolio and rebalance its retail/corporate business mix to further improve returns.
Analysts at Numis expect adjusted pre-tax profits of GEL462m din the year to December 2016 and EPS of GEL9.65 (from GEL359m and GEL7.93 in 2015).
BANK OF GEORGIA (BGEO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,668p | MARKET VALUE: | £1.05bn | |
| TOUCH: | 2,666-2,671p | 12-MONTH HIGH: | 2,975p | LOW: 1,583p |
| DIVIDEND YIELD: | 0.03% | PE RATIO: | 785 | |
| NET ASSET VALUE: | 4,990 tetri | LEVERAGE: | 5.6 | |
| Half-year to 30 Jun | Total operating income (GLm) | Pre-tax profit (GLm) | Earnings per share (tetri) | Dividend per share (tetri) * |
|---|---|---|---|---|
| 2015 | 398 | 157 | 3.5 | 2.1 |
| 2016 | 440 | 143 | 4.6 | 2.4 |
| % change | +11 | -9 | +32 | +14 |
Ex-div: see below Payment: see below £1=2.95 GEL £1=2.95 GEL * Payment of the interim dividend (or sterling equivalent) was received by shareholders on 22 July 2016 | ||||
