Georgian banking and investment firm BGEO Group PLC said Wednesday it increased its pretax profit and revenue in the first quarter of 2017.
FTSE 250-listed BGEO reported a pretax profit of GEL113.3 million for the three months to March 31, or approximately GBP35.8 million. This was up 17% from GEL97.0 million, or GBP30.7 million in the same period in 2016.
Total quarterly revenue came to GEL299.5 million, or around GBP94.8 million. This was up 37% from GEL219.2 million the prior year. Of that, net interest income comprised GEL160.7 million, up 25% from GEL128.9 million the prior year. BGEO’s net interest margin in its banking business dipped to 7.4% from 7.5% the prior year.
The bank said an increase in retail banking net interest income offset a slight decline in corporate investment banking net income during the quarter, as the lender rebalances its business.
The bank’s Tier 1 Capital Adequacy ratio stood at 11.2% at the of the quarter, “comfortably ahead” of its minimum requirements.
“Supported by the improving macroeconomic performance in Georgia and the group’s continued focus on implementing its key strategic priorities, we remain well positioned to deliver good levels of earnings momentum from both the organic business growth in each of our banking and investment businesses, and from the benefits of recent strategic initiatives and acquisitions,” said Irakli Gilauri, chief executive of BGEO.