Strong performance continued into Q4 2013 delivering our best ever performance during 2013
Strong profitability supported by declining funding costs and positive operating leverage maintained
o Net Interest Margin (NIM) of 7.8%, compared to 7.9% in 2012
Q4 2013 NIM of 7.9% compared to 7.7% in Q3 2013 and 7.8% in Q4 2012
o Revenue increased by GEL 47.2 million, or 9.5% y-o-y, to GEL 545.5 million
Q4 2013 revenue increased 12.6% y-o-y to GEL 144.4 million; compared to Q3 2013 revenue increased by 4.4%
o Positive operating leverage maintained at 7.5 percentage points in 2013, as operating expenses increased by 2.0% year-on-year to GEL 225.6 million
o Cost to Income ratio improved to 41.4% compared to 44.4% in 2012
o Profit for the period increased by GEL 29.8 million, or 16.6% y-o-y, to GEL 209.3 million
Q4 2013 profit increased by GEL 8.8 million, or 18.7% y-o-y, to GEL 55.6 million
o Earnings per share (basic) increased by 13.6% to a record GEL 5.93, compared to GEL 5.22 in 2012
o Return on Average Assets (ROAA) stood at 3.6% in 2013 compared to 3.5% in 2012
Q4 2013 ROAA stood at 3.6%, compared to 3.4% in Q4 2012 and 4.0% in Q3 2013
o Return on Average Equity (ROAE) stood at 18.6%, compared to 19.1%
Q4 2013 ROAE stood at 18.6%, compared to 20.6% in Q3 2013 and 18.2% in Q4 2012
Strong balance sheet supported by solid capital position and declining cost of funds
o Net loan book increased by 13.9% y-o-y, while client deposits increased by 18.5% y-o-y
o Cost of client deposits decreased from 7.3% in 2012 to 5.6% in 2013; Q4 2013 cost of client deposits stood at 4.8% compared to 6.6% in Q4 2012
o Q4 2013 loan book grew 7.3% q-o-q and client deposits increased 9.0% q-o-q
o Cost of credit risk improved significantly in Q4 2013 to GEL 10.0 million compared to GEL 16.1 million in Q4 2012 and GEL 15.5 million in Q3 2013. Cost of Risk decreased to an annualised 0.9% in Q4 2013 compared to 1.6% in Q3 2013 and 1.8% in Q4 2012
o High liquidity maintained with 29.5% of total assets made up of cash and cash equivalents, amounts due from credit institutions, NBG CDs, Georgian government treasury bills and bonds and other high quality liquid assets as of 31 December2013. Liquidity ratio, as per National Bank of Georgia (NBG), stood at 45.7%, compared to 41.1% a year ago, as a result of additional Eurobond issuance in November 2013
o As of 31 December 2013, Net Loans to Customer Funds ratio stood at a healthy level of 113.0% compared to 114.8% as of 31 December 2012 and 114.7% as of 30 September 2013. Net Loans to Customer Funds and DFI ratio of 96.2%, compared to 91.9% as of 31 December 2012 and 96.1% as of 30 September 2013.
o BIS Tier I capital adequacy ratio stood at 23.0% compared to 21.2% a year ago.
o Book value per share increased by 14.9% y-o-y to GEL 34.85 (US$20.07/GBP 12.18)
o Balance Sheet leverage remained flat y-o-y at 4.3 times
