Home / Banking / Lado Gurgenidze: We Transformed Bankrupt Bank into Profitable Institution
Lado Gurgenidze: We Transformed Bankrupt Bank into Profitable Institution

Lado Gurgenidze: We Transformed Bankrupt Bank into Profitable Institution

Ex Prime Minister of Georgia and well-known banker Lado Gurgenidze has appraised his 8-year performance for Liberty Bank.

The banker introduced the 1H17 report to stakeholders and overviewed the long way that he and his talented team passed at the Bank joinlty.

“We have taken a bankrupt, loss-making bank with negative regulatory capital and negligible total equity of under GEL 15 million and turned it into a highly profitable institution with the ROAE consistently above 20%, ample regulatory capital (even after the July 2017 dividend payout) and total equity exceeding  GEL 170 million (even after the July 2017 dividend payout)”, Lado Gurgenidze noted.

“Of the aggregate GEL 77 million invested in the Bank’s ordinary and preferred equity since 2009, GEL 51 million has been returned to the shareholders as of July 2017 by way of dividends and share buybacks, and the Bank could easily return additional GEL 25 million to the shareholders in 2018, should they so decide. This dramatic turnaround has been accomplished by the talented management team which has been together since 2009 and I hope will continue to drive the Bank’s success for years to come”, commented Lado Gurgenidze, Executive Chairman.

JSC Liberty Bank (the “Bank”) announced today its Q2 2017 & 1H 2017 consolidated results (IFRS-based, unaudited, based on management estimates), reporting Net Income of GEL 10.5 million in Q2 2017 (down 0.4% q-o-q and up 24.5% y-o-y) and GEL 21.0 million in 1H 2017 (up 29.7% y-o-y).

As reported, active procedures are underway for Liberty Bank alienation. The Regulatory Body has been studying documentation submitted by the buyer. If National Bank of Georgia (NBG) agrees, Irakli Rukhadze, Giorgi Kalandarishvili and David Shonia will enter the Liberty Bank management, while Lado Gurgenidze plans to leave the Bank.

Honeywell Partners announced plans for sales of Liberty Bank controlling interest in spring 2016, but failed to finish the bargain.