BANK OF GEORGIA
Since October 2004, when its new management team embarked on a turnaround path, Bank of Georgia has established itself as an innovator and consolidator in the Georgian financial markets.
In line with its universal banking strategy, it led the aggressive expansion throughout 2005 by a combination of acquisitions and organic growth. From a significant loss in 2004, it produced a healthy profit in 2005, providing an 18.5% RoE.
Building on its client base of 250,000 through its network of 72 branches, the largest modern network, Bank of Georgia introduced a series of retail products in 2005, such as co-branded cards and loyalty programmes with leading Georgian consumer businesses. These initiatives are expected to expand the bank’s retail footprint further and add about 20,000 retail clients, with a further 30,000 new clients expected to come from the new insurance brand launched early this year.
The result of the new strategy is reflected in the bank’s share price, which stood at La12.9 at the end of June 2006, a 55% appreciation since the start of 2006 and a 238% rise since the beginning of the turnaround.
The bank’s chairman, Lado Gurgenidze, says: “Over the past couple of years, since our team took over, Bank of Georgia has been at the forefront of the banking sector developments in Georgia and, in many important respects, in the Commonwealth of Independent States as well. In a short period of time, we have been able to introduce an aggressive, performance-driven culture based on personal initiative, creativity and accountability.”
