TBILISI/AUG. 16 (The Bulletin) — Shares in Bank of Georgia surged more than 5% after it generated more profit than expected in the first half of the year thanks to a strong Georgian economy.
The London-listed bank said that pre-tax profit had jumped by 53% in the six months to June 30 to 573.7m lari ($205m) and that it would increase its dividends by 25%.
CEO Archil Gachechiladze said that “the ongoing strength of the Georgian economy” means that the bank will be able to hit its ambitious growth targets.
Bank of Georgia’s share price has doubled since the beginning of March, immediately after Russia’s invasion of Ukraine, to 1,924p – also its highest level for four years.
Bank of Georgia’s main Georgian high street rival, TBC Bank, also posted larger-than-expected profits for the first half of the year which it said had been generated by extra interest payments from its increased loan portfolio.
Georgia’s economy is expected to grow by 10% this year, adding to its 10.4% growth last year.