Strong profit momentum maintained
o Net Interest Margin (NIM) of 7.3%, compared to 7.8% in 1H 2013
Q2 2014 NIM of 7.3%, compared to 7.9% in Q2 2013 and 7.4% in Q1 2014
o Revenue increased by 7.3% y-o-y to GEL 281.5 million in 1H 2014
Q2 2014 revenue of GEL 144.2 million, up 3.2% y-o-y and 5.0% q-o-q.
o Cost to Income ratio stood at 43.8% in 1H 2014 compared to 41.7% in 1H 2013
Q2 2014 Cost to Income ratio stood at 44.6% compared to 39.9% in Q2 2013 and 43.0% in Q1 2014
o Profit for 1H 2014 increased to GEL 112.0 million, up 17.7% y-o-y
Profit increased to GEL 58.3 million in Q2 2014, up 9.8% y-o-y and up 8.7% q-o-q
o Earnings per share (EPS) increased by 16.7% to GEL 3.15 in 1H 2014 compared to GEL 2.70 in 1H 2013
Q2 2014 EPS stood at GEL 1.64, up 8.6% on both a y-o-y and q-o-q basis
o Return on Average Assets (ROAA), adjusted for impairment* stood at 3.5% in 1H 2014 largely flat on a year-on-year basis
ROAA, adjusted for impairment stood at 3.7% in Q2 2014, compared to 3.8% in Q2 2013 and 3.3% in Q1 2014
o Return on Average Equity (ROAE), adjusted for impairment stood at 18.7% in 1H 2014, compared to 17.6% in 1H 2013
ROAE, adjusted for impairment stood at 19.7% in Q2 2014 compared to 19.3% in Q2 2013 and 17.7% in Q1 2014
Balance sheet strength supported by solid capital and liquidity positions and declining Cost of Funding
o Net loan book increased by 17.2% y-o-y (up 4.9% q-o-q), while client deposits increased by 7.4% y-o-y (up 0.3% q-o-q)
o Cost of Client Deposits decreased to a record low of 4.4% in 1H 2014 from 6.2% in 1H 2013. Q2 2014 Cost of Client Deposits stood at 4.3% down from 5.9% in Q2 2013 and 4.6% in Q1 2014. Loan Yields also declined to 14.7% from 16.9% in 1H 2013. Quarterly loan yields stood at 14.5% in Q2 2014 compared to14.9% in Q1 2014 and 17.0% in Q2 2013
o Cost of credit risk improved significantly in 1H 2014 to GEL 27.2 million from GEL 36.3 million in 1H 2013. This represents an annualised Cost of Risk ratio of 1.0%.
o High liquidity maintained with 27.6% of total assets made up of cash and cash equivalents, amounts due from credit institutions, the NBG CDs, Georgian government treasury bills and bonds and other high quality liquid assets as of 30 June2014. Liquidity ratio, as per National Bank of Georgia (NBG) requirements, stood at 38.1% against the regulatory minimum of 30%
o As of 30 June 2014, Net Loans to Customer Funds and DFI ratio stood at a healthy level of 100.3% compared to 96.2% as of 31 December 2013 and 96.4% as of 31 March 2014. The Net Loans to Customer Funds ratio stood at 119.0% compared to 113.0% as of 31 December 2013and 113.8% as of 31 March 2014
o BIS Tier I capital adequacy ratio stood at 22.5% compared to 22.9% a year ago.
o NBG (Basel 2/3) Tier I capital adequacy ratio stood at 10.8% as at 30 June 2014 compared to 13.1% as at 31 December 2014 (see Annex I on page 44 for more information)
o Book value per share increased by 13.1% y-o-y to GEL 34.95 (US$19.76/GBP 11.61)
o Balance Sheet leverage remained largely flat y-o-y at 4.3 times
