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Bank of Georgia

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Not to be confused with National Bank of Georgia or Georgia Bank & Trust.
Bank of Georgia Group PLC
Georgian: საქართველოს ბანკი
Company typePublic limited company
IndustryBanking
Financial services
Founded1903
Headquarters
Tbilisi
,
Georgia
Area served
Georgia
Key people
Mel Carvill
(Non-Executive Chairman)
Archil Gachechiladze
(CEO)
ProductsRetail banking
Corporate Banking
Trade Finance
Wealth Management
investment management
SME finance
RevenueDecrease GEL2,553.0 million (2023)[1]
Increase GEL1,656.3 million (2023)[1]
Decrease GEL1,397.3 million (2023)[1]
Total assetsIncrease GEL31,757.5 million (2023)[1]
Total equityIncrease GEL5,019.8 million (2023)[1]
Websitebankofgeorgiagroup.com

Bank of Georgia Group PLC (LSE: BGEO) is a UK incorporated financial services holding company with its registered office in London, England, and its corporate headquarters in Tbilisi, Georgia.[2][3]

Bank of Georgia is the main operating subsidiary of Bank of Georgia Group a UK-based[4] holding company Bank of Georgia Group, which is listed on the premium segment of the main market of the London Stock Exchange[5] and is a constituent of the FTSE 250 Index.[6]

The group comprises a retail banking and payments business,[7] and a corporate banking and investment banking business.[7]

History

Former building of the Bank of Georgia on Freedom Square, Tbilisi

The bank was established in 1903, nationalized by the communists and became known as Binsotsbank before it was privatized again and renamed the Bank of Georgia in 1994.[8]

Bank of Georgia was first listed on the Georgian Stock Exchange in 2001. It merged with Tbiluniversalbank in 2004.[9]

Starting from 2004, Bank of Georgia completed a number of strategic acquisitions, introduced a series of packaged retail products and initiated major infrastructure upgrades.[10]

This is when the Bank launched its private banking, placed debut corporate bonds on the Georgian Stock Exchange.[11]

In 2007, Bank of Georgia listed its shares on the London Stock Exchange in the form of global depositary receipts, the first international IPO from Georgia.[12] The period following the listing was marked by the issuance of the first Eurobond, further acquisitions, and new international partnerships, including with American Express.[13]

Bank of Georgia gained a premium listing on the London Stock Exchange in April 2012.[14] On 15 June 2012 Bank of Georgia joined the FTSE 250 Index.[15]

In 2014, Bank of Georgia acquired Tao Private Bank, the 9th largest bank in Georgia at the time of acquisition.[16]

In 2018, Bank of Georgia issued Eurobonds denominated in GEL 500 million. This was the first time a Georgian company placed international bonds in local currency.[17]

In 2017, the decision was made to demerge BGEO Group PLC into two separately listed and independently managed public companies – Bank of Georgia Group PLC, the Banking Business, and Georgia Capital PLC, the Investment Business. The Demerger was completed on 29 May 2018.[18]

In 2018, Georgia Capital issued Eurobonds which were listed and traded on the Irish Stock Exchange.[19]

In 2020, the European Investment Bank signed a €50 million loan deal with the Bank of Georgia for small and medium enterprises (SMEs) and mid-caps. Bank of Georgia typically lends the funds to local businesses, such as the Swiss Agricultural School Caucasus.[20][21]

In 2023, Bank of Georgia achieved a milestone by launching the very first Business Manager. This innovative platform empowers businesses to execute campaigns driven by customer analytics, devise tailored offers, manage payments, boost sales, and uncover compelling trends to foster business growth. BOG's Business Manager leverages artificial intelligence and smart algorithms.[22]

In that same year Bank of Georgia introduced its inaugural Ads Manager for partner businesses, providing them with a distinctive opportunity to create personalized offers such as cashback, loyalty points campaigns, or discounts, reaching a vast audience of over 1.3 million Bank of Georgia customers.[23]

In 2023 to facilitate the rapid growth of partner businesses, Bank of Georgia introduced the API Manager, providing comprehensive banking services to companies within a unified space. Through the API Manager, companies gain access to information regarding payment methods, business Internet banking services, and API functionality.[24]

In February 2024, Bank of Georgia announced the proposed acquisition of 100% of a leading bank in Armenia, Ameriabank, for approximately $303.6 million.[25]

Awards

Bank of Georgia’s achievements in the digitalization process has been recognized worldwide – The bank has won the following global awards:

  • The Best Consumer Product Offerings in Central and Eastern Europe for 2023[26]
  • The Best Consumer Bill Payment and Presentment in Central and Eastern Europe for 2023[27]
  • The Best Consumer Mobile Banking App in Central and Eastern Europe for 2023[28]
  • The Best in Consumer Lending in Central and Eastern Europe for 2023; The Best Consumer Innovation and Transformation in Central and Eastern Europe for 2023[29]
  • The Best Trade Finance Services in Central and Eastern Europe for 2023[30]
  • The Best Corporate Mobile Banking App in Central and Eastern Europe for 2023; The Best Corporate Innovation and Transformation in Central and Eastern Europe for 2023[31]
  • Top Innovator in AI for Georgian Speech Technologies for 2023; Top Innovator in eCommerce for Payment Manager for 2023; Top Innovator in SME for Api.bog.ge - Global Finance[32]
  • Best Bank for Digital Solutions in Georgia- Euromoney Awards for Excellence 2023; Best Bank for CSR in Georgia- Euromoney Awards for Excellence 2023[33]

Products and operations

Bank of Georgia has one of the largest distribution networks in Georgia, comprising 211 branches, 989 ATMs, 3,134 self-service terminals and a call center.[34]

Bank of Georgia business consists of three key business segments: Retail Banking (RB) operations in Georgia, comprising subsegments that serve mass retail (Mass Retail), and mass affluent and high-net-worth clients (Premium Banking); SME Banking (SME) operations in Georgia, serving small and medium-sized businesses; and Corporate Banking (CB) operations in Georgia, serving corporate and institutional customers.[35]

Bank of Georgia has firmly established itself as one of the key players in the domestic banking sector, accounting for around 40% of total banking sector assets in Georgia.[36][37]

Retail banking

Retail Banking (RB) is divided into two sub-segments that serve mass retail (Mass Retail), and mass affluent and high-net-worth clients (Premium Banking). The Retail Banking products include consumer loans, mortgage loans, overdrafts, credit cards and other credit facilities, funds transfers and settlement services, and handling of customers’ deposits.[38]

Small and medium-sized enterprises

SME Banking serves small and medium-sized businesses providing financial and value-added services including business loans, payments processing, and financial advisory.[39]The Bank was awarded Best SME Banking in Central and Eastern Europe by Global Finance in 2022.[40]

Corporate Banking

Bank of Georgia’s Corporate Banking segment serves large businesses in Georgia. It mainly provides loans and other credit facilities, funds transfers and settlement services, trade finance services, documentary operations support and handles saving and term deposits for corporate and institutional customers.[41]

ESG & CSR

In 2021, the Bank of Georgia conducted a formal Environmental, Social, and Governance (ESG) materiality assessment.[42] The bank is actively working on refining its climate action strategy and enhancing its ESG-related policies, practices, and disclosures as part of its ongoing commitment to sustainable business practices.[43]

In the field of education, Bank of Georgia sponsors students through various scholarship programs, including international ones such as the Fulbright Graduate Student Programme, the Chevening Scholarship Programme and Miami ad School of Europe scholarship program.[44]

Bank of Georgia is the general sponsor of the Georgian National Olympic and Paralympic Committees, Georgian Football Federation[45] and the main sponsor of the Georgian Basketball Federation.[46]

Shareholders

As at 31 March 2022, the Group's top ten shareholders were JSC Georgia Capital (19.90%), Harding Loevner LP (4.30%), Fidelity Investments (3.70%), Van Eck Associates Corporation (3.50%), M&G Investment Management Ltd (3.40%), Dimensional Fund Advisors (DFA) LP (3.40%), Vanguard Group Inc (2.50%), GLG Partners LP (2.40%), Tiger Management LLC (2.10%), Standard Life Investments (2.10%).[47]

References

  1. ^ a b c d e "Annual Results 2023" (PDF). Bank of Georgia. Retrieved 15 March 2024.
  2. ^ "Company Overview of Bank of Georgia Group PLC". Bloomberg. Retrieved 30 June 2017.
  3. ^ "Our Contacts". Bank of Georgia Group. Retrieved 2024-02-19.
  4. ^ "Bank of Georgia Group PLC". www.bankofgeorgiagroup.com.
  5. ^ Bank of Georgia takes premium LSE listing Financial Times
  6. ^ BANK OF GEORGIA GROUP PLC London Stock Exchange
  7. ^ a b "Bank of Georgia Group PLC". Bloomberg. Retrieved 28 April 2022.
  8. ^ "BNE talks to the chairman of the Bank of Georgia". BNE. 26 April 2007. Archived 2013-09-28 at the Wayback Machine
  9. ^ "Japan and the EBRD" (PDF). EBRD. p. 12. Retrieved 3 June 2019.
  10. ^ "Bank of Georgia acquires BCI". Georgian Messenger. 7 December 2004. Archived 2016-03-04 at the Wayback Machine
  11. ^ "Bank of Georgia JSC". Georgian Stock Exchange. Retrieved 3 June 2019.
  12. ^ "Bank of Georgia IPO to raise 83 million pounds". Reuters. 20 January 2007. Retrieved 3 June 2019.
  13. ^ "American Express". Bank of Georgia. Retrieved 3 June 2019.
  14. ^ "Bank of Georgia takes premium LSE listing". FT.com. 28 February 2012. Retrieved 3 June 2019.
  15. ^ "Bank of Georgia Holdings to enter FTSE indices". Bloomberg. 1 June 2012. Archived from the original on 13 July 2012. Retrieved 5 June 2019.
  16. ^ "Bank of Georgia buys local arm of Ukraine's PrivatBank | AGENDA.GE". agenda.ge.
  17. ^ "Georgia Capital Eurobond". ebrd.com. 13 March 2018.
  18. ^ "Bank of Georgia completes demerger". youinvest. Archived from the original on 30 June 2018. Retrieved 30 June 2018.
  19. ^ "Georgia Capital Eurobond". EBRD. 27 February 2018. Retrieved 3 June 2019.
  20. ^ "Georgian farmers get EU backing for a school project that scales up agriculture and education". European Investment Bank. Retrieved 2021-04-20.
  21. ^ "European Investment Bank and Bank of Georgia join forces to support businesses during COVID-19 crisis | EU Neighbours". www.euneighbours.eu. Retrieved 2021-04-20.
  22. ^ "Best Financial Innovations 2023". Global Finance. 31 May 2023. Retrieved 19 March 2024.
  23. ^ "Best Financial Innovations 2023". Global Finance. 31 May 2023. Retrieved 19 March 2024.
  24. ^ "Best Financial Innovations 2023". Global Finance. 31 May 2023. Retrieved 19 March 2024.
  25. ^ "City buying spree continues as London-listed Bank of Georgia swoops for Ameriabank". The Evening Standard. 19 February 2024. Retrieved 19 February 2024.
  26. ^ "World's Best Digital Banks 2023—Round 2". Global Finance. 6 December 2023. Retrieved 19 March 2024.
  27. ^ "World's Best Digital Banks 2023—Round 2". Global Finance. 6 December 2023. Retrieved 19 March 2024.
  28. ^ "World's Best Digital Banks 2023—Round 2". Global Finance. 6 December 2023. Retrieved 19 March 2024.
  29. ^ "World's Best Digital Banks 2023—Round 2". Global Finance. 6 December 2023. Retrieved 19 March 2024.
  30. ^ "World's Best Digital Banks 2023—Round 1". Global Finance. 3 September 2023. Retrieved 19 March 2024.
  31. ^ "World's Best Digital Banks 2023—Round 1". Global Finance. 3 September 2023. Retrieved 19 March 2024.
  32. ^ "World's Best Digital Banks 2023—Round 2". Global Finance. 6 December 2023. Retrieved 19 March 2024.
  33. ^ "Country Awards for Excellence 2023: Central and Eastern Europe". EUROMONEY. July 13, 2023. Retrieved 19 March 2024.
  34. ^ "BGEO Annual Report 2021". www.bankofgeorgiagroup.com.
  35. ^ BANK OF GEORGIA GROUP PLC London Stock Exchange
  36. ^ World’s Best Digital Banks 2023—Round 1 Global Finance Magazine
  37. ^ Winning The Hearts Of Digital Customers: Q&A With Bank Of Georgia CEO Archil Gachechiladze Global Finance Magazine
  38. ^ "BGEO Annual Report2022". www.bankofgeorgiagroup.com.
  39. ^ "BGEO Annual Report2022". www.bankofgeorgiagroup.com.
  40. ^ "World's Best Banks 2022: Central And Eastern Europe". Global Finance. 7 May 2022. Retrieved 19 March 2024.
  41. ^ "BGEO Annual Report2022". www.bankofgeorgiagroup.com.
  42. ^ "BGEO Annual Report2022". www.bankofgeorgiagroup.com.
  43. ^ "BGEO Annual Report2022". www.bankofgeorgiagroup.com.
  44. ^ "BGEO Annual Report2022". www.bankofgeorgiagroup.com.
  45. ^ "GFF Signs a Memorandum with Bank of Georgia". Georgian Football Federation. 22 May 2023. Retrieved 19 March 2024.
  46. ^ "Bank of Georgia is the main partner of the Georgian National Basketball Federation". Georgian Basketball Federation. 25 November 2021. Retrieved 19 March 2024.
  47. ^ "BGEO Annual Report 2021". www.bankofgeorgiagroup.com.
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