Bank of Georgia unveils buyback plan as Q2 profits rise

22nd Aug 2024 07:17

(Sharecast News) - Bank of Georgia has announced a £21m share buyback programme as it unveiled its results for the second quarter, in which it delivered an 11% increase in profits as it incorporated Armenian bank Ameriabank into its P&L for the first time post-acquisition.

The bank said the board has approved to repurchase GEL73.4m of shares consistent with its capital distribution policy to return 30% to 50% of annual profits to shareholders.

Consolidated adjusted profit in the second quarter ended 30 June totalled GEL430m (£121m), up from GEL409m the year before, despite the company being hit with a GEL49m charge related to the takeover of Ameriabank which completed in April.

Excluding this charge, adjusted profits would have been 23.7% higher than last year at GEL480m.

Net interest income swelled to GEL618m during the period, up from GEL396m a year earlier.

Chief executive Archil Gachechiladze said that the Georgian economy has been resilient despite ongoing political turmoil ahead of national elections, with real GDP growing 9.5% in the second quarter.

"With the upcoming Parliamentary elections in October 2024 in Georgia, political uncertainty will continue. We will monitor the situation as it unfolds and will keep managing the business prudently," Gachechiladze said.

"We remain committed and well-positioned to continue delivering strong growth and profitability in our core markets and delivering value to our shareholders in the coming quarters," he added.