Bank of Georgia Group PLC Dividend and capital distribution policy update (4854L)
13 September 2021 - 4:00PM
UK Regulatory
TIDMBGEO
RNS Number : 4854L
Bank of Georgia Group PLC
13 September 2021
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014 as it forms part of UK
law by virtue of the European Union (Withdrawal) Act 2018
London, 13 September 2021
Bank of Georgia Group updates dividend and capital distribution
policy
Bank of Georgia Group PLC (the "Group") announces that its Board
has updated its dividend and capital distribution policy. The
Group's previous dividend policy targeted a payout of 25-40% of
profits on an annual basis. In the light of the evolving
macroeconomic situation and expected levels of medium-term growth,
the Board has formally reviewed the Group's capital distribution
policy and decided to increase the targeted payout ratio range to
30-50% of annual profits.
The Group's updated dividend and capital distribution policy is
as follows:
Dividend and capital distribution policy
Bank of Georgia Group PLC's capital distribution policy
incorporates a progressive ordinary cash dividend, supplemented by
additional share repurchases as and when appropriate. It is the
Board's overall capital distribution policy to target a payout
ratio in the range of 30-50% of annual profits. The Board expects
to ensure healthy capital ratios, above minimum regulatory
requirements, and take into consideration expected future capital
requirements, including the full loading of Basel III requirements
on our minimum capital ratios, ongoing regulatory capital
developments and the growth opportunities available to Bank of
Georgia.
Dividends will be paid on a semi-annual basis, with the interim
dividend expected to be paid in cash and represent, under normal
circumstances, around 40% of the total dividend for the year.
On 17(th) August 2021, the Group announced that the Board
declared an interim dividend of GEL 1.48 per ordinary share in
respect of the period ended 30 June 2021, payable to ordinary
shareholders of Bank of Georgia Group PLC on 5 November 2021.
Archil Gachechiladze , the Group CEO commented: "Throughout the
pandemic and despite significant volatility in economic activity,
Bank of Georgia Group has delivered excellent operating
performance, with good top-line growth, well-managed costs, and
robust asset quality and risk management. This has led to
consistently delivering strong profitability and high levels of
internal capital generation, while maintaining capital adequacy
ratios comfortably above our minimum regulatory requirements.
Our medium- to long-term customer lending growth guidance is
c.10% per annum, and the updated dividend and capital distribution
policy reflects these expectations. However, the strength of the
Georgian macro-economic environment has been such that there has
been a strong pick-up in demand within the consumer, micro and
small and medium-sized enterprises sectors and we therefore expect
higher levels of lending growth in the near term. As a result, the
Board currently expects the payout ratio to be approximately 35-40%
over the next two years."
Name of authorised official of issuer responsible for making
notification: Natia Kalandarishvili, Head of Investor Relations and
Funding
About Bank of Georgia Group PLC
Bank of Georgia Group PLC ("Bank of Georgia Group" or the
"Group" - LSE: BGEO LN) is a UK incorporated holding company, which
comprises: a) retail banking and payment services; b) corporate
banking, wealth management and investment banking operations in
Georgia; and c) banking operations in Belarus ("BNB"). JSC Bank of
Georgia ("Bank of Georgia", "BOG" or the "Bank"), the systemically
important and leading universal bank in Georgia, is the core entity
of the Group. The Bank is a leader in payments business and
financial mobile application, with the strong retail and corporate
banking franchise in Georgia. With a continued focus on increasing
digitalisation and expanding technological and data analytics
capabilities, the Group aims to offer more personalised solutions
and seamless experiences to its customers to enable them to achieve
more of their potential. The Group aims to benefit from growth of
the Georgian economy, and through both its Retail Banking and
Corporate and Investment Banking services targets to deliver on its
strategy, which is based on at least 20% ROAE and c.10% growth of
its loan book in the medium-term .
JSC Bank of Georgia has, as of the
date hereof, the following credit
ratings:
Fitch Ratings 'BB-/B'
Moody's 'Ba2/NP'
For further information, please visit www.bankofgeorgiagroup.com
or contact:
Archil Gachechiladze Michael Oliver Sulkhan Gvalia Natia Kalandarishvili
CEO Adviser to the CFO Head of Investor
CEO Relations
+995 322 444 444
+995 322 444 144 +44 203 178 4034 +995 322 444 108 (9282)
agachechiladze@bog.ge moliver@bgeo.com sgvalia@bog.ge ir@bog.ge
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