Bank of Georgia
Bank of Georgia (საქართველოს ბანკი) is the leading bank in Georgia with more than a third of the market share based on total assets, total loans, total deposits and total shareholders’ equity. Bank of Georgia offers wide variety of services including retail banking, corporate banking, wealth management, brokerage and insurance services to its clients. Since February 2012 Bank of Georgia’s UK incorporated holding company Bank of Georgia Holdings plc has been listed on the main market of the London Stock Exchange (BGEO:LN). From 15 June 2012 the Company’s shares have been included in the FTSE 250 and the FTSE All Share Indexes
History
Bank of Georgia’s history is marked with several major milestones and three periods: Post-Soviet Period lasting from 1994 to 2001, Orange Period - from 2004 to 2006 and current and London Period from 2006 to modern days.
Post-Soviet Period In 1994, Binsotsbank was privatized and renamed into Bank of Georgia. Between 1998- 2001 EBRD and DEG become shareholders of the Bank. In 2001 Bank of Georgia shares get listed on the Georgian Stock Exchange. In 2002-2004, the Bank receives credit lines from major international investors, EBRD, IFC and DEG.
Orange Period In October 2004, new team takes over the Bank’s management and first institutional shareholders invest. Q4 2004 is noted as a major turnaround in the Bank’s history. The Bank’s new management makes several strategic acquisitions, including TbilUniversalBank, ninth largest bank in Georgia at the time of acquisition, BCI insurance company and Georgian Card –card processing platform. In 2005 Bank of Georgia introduces a series of packaged retail products and initiates major infrastructure upgrades. BCI launches Bancassurance; debut corporate bonds are placed; private banking launched; Georgian Card upgrades to a new platform; Bank of Georgia receives the Euromoney Award for excellence as The Best Bank in Georgia 2005; Bank of Georgia and BCI acquire Europace; DEG divests; Call Warrants against Bank of Georgia shares start trading on the Vienna Stock Exchange Dritter Markt; Bank of Georgia consolidates control in Galt & Taggart Securities. In 2006 Bank of Georgia acquires IntellectBank’s assets & liabilities and launches co-branded retail initiatives. Retail banking brand is updated; BCI launches “Chemebi” - a new consumer insurance brand; Fitch Ratings & Moody’s grant first ratings to the Bank; Euromoney awards Best Bank in Georgia Excellence Award to Bank of Georgia. At the end of 2006 the Bank receives rating from Standard & Poor’s; Citigroup, World Business Capital, Thames River Capital, Merril Lynch and HBK investments L.P become Bank of Georgia’s key lenders.
London Period In November 2006 Bank of Georgia lists its shares in form of GDRs on London Stock Exchange (LSE: BGEO), this marks start of the London Period in the Bank’s history. Bank of Georgia’s wholly-owned subsidiary BCI acquires insurance company Aldagi; the Bank receives the Bank of The Year Award from The Banker. In 2007 Fitch Ratings upgrades Bank of Georgia’s Issuer Default Rating to “B” from “B-“; Bank raises an aggregate of US$386 million in debt funding including US$200 Mln debut Regulation S five-year 9% coupon rate senior unsecured Eurobond transaction. Bank of Georgia acquires 98.77% of Ukrainian Bank for Development and Partnership (later rebranded to BG Bank), mid-sized bank in Ukraine. Bank of Georgia also receives Euromoney Award of Excellence as Best Bank in Georgia 2007, The Banker Award as the Best Bank in Georgia, Global Finance Award as the Best Trade Finance Bank in Georgia 2008.
2008 Bank of Georgia acquires 70% equity interest in Belarusky Narodny Bank (BNB) in Belarus, launches integrated Internet and Mobile Banking Platforms, becomes Georgia’s first issuing bank for IFC’s Global Trade Finance Program and signs an exclusive partnership agreement with American Express for credit card acquiring and issuing in Georgia. The Bank raises US$100 million through the sale of four million shares in the form of GDRs and approximately US$440 million in debt funding. Bank of Georgia receives the Global Finance Award as the Best Bank in Georgia 2008; Euromoney Award from Excellence as the Best Bank in Georgia 2008; the Bank of the Year 2008 Award from The Banker.
2009 Bank of Georgia draws down US$200 million of the IFC and EBRD financing package and completes the settlement of US$140 million Loan Passthrough Notes issued by Rubrika Finance Company Netherlands B.V. The Bank invests in technological advancements aimed at increasing operating efficiency: commences the implementation of CRIF Decision Solutions, the system provider for its loan origination platform and starts to deploy Softscape, a fully automated talent management system. Bank of Georgia sells its equity interest in GTAM reducing its exposure to the non-core asset management segment; Fox-Pitt Kelton Limited (FPK) and ING Bank N.V. London branch appointed to act as the Bank’s corporate brokers. The Banks starts to issue the American Express Card and the American Express Gold Card issued in Georgia; completes the buyout of minority stake in BNB and increases capital by c. EUR10.4 million, as a result the bank controls 99.98% of BNB; receives the Global Finance Award as the Best Bank in Georgia 2009; receives Euromoney Award from Excellence as the Best Bank in Georgia 2009; receives the Bank of the Year 2009 Award from The Banker.
2010 Bank of Georgia launches OneCard Visa Infinite, premium-class debit card for Wealth Management clients and sets up a direct account with Euroclear Bank, the international central securities depository of the Euroclear group and the leading clearance and settlement system for internationally traded securities. This year the Bank starts the first deposit hedging project in Georgia with IFC and commences the exclusive issuance and promotion of the new American Express Blue Credit Card on the Georgian market. IFC purchases 19.99% equity interest in Belarusky Narodny Bank, bringing Bank of Georgia’s equity interest in BNB to circa 80%. In 2010 Bank of Georgia sets up a UK subsidiary company, Bank of Georgia Representative Office UK Limited in London. The Bank signs three loan agreements in the aggregate amount of US$ 150 million with EBRD, EFSE and ADB; Fitch Ratings upgrades Bank of Georgia’s long-term issuer default ratings to “B+” from “B”; the Bank receives the Global Finance award as the Best Sub-Custodian Bank and Best Bank in Georgia 2010 and Euromoney Award for Excellence as the Best Bank in Georgia 2010.
2011 Bank of Georgia sells 80.0% equity interest in BG Bank, its subsidiary in Ukraine. In the same year the Bank hosts Investor Days in London and in New York. Bank of Georgia becomes an exclusive partner for Diners Club International acquiring business in Georgia, and an ATM processer for Diners Club International and Discover card transactions. The Bank receives an American Express Global Network Services (GNS) Marketing Award in the category of Outstanding Loyalty and Engagement Program for its Membership Rewards® Campaign and the Global Finance award as the Best Bank in Georgia in 2011. An insurance subsidiary of the Bank , JSC Insurance Company ABCI acquires assets and liabilities of the JSC Insurance Company Partner, the twelfth largest insurance company in Georgia as of 30 June 2011; Standard & Poor’s raise its long-term rating on Bank of Georgia to ‘BB-’ from ‘B’; Fitch Ratings upgrades the Bank’s Long-term Issuer Default Rating from ‘B+’ to ‘BB-’. FMO provides US$20 million financing for the development of a housing project by the Bank’s wholly-owned real estate subsidiary SBRE. The Bank obtains US$ 40 million financing from FMO and DEG. In September 2011 the Bank announces its decision to seek a Premium listing on the London Stock Exchange and to incorporate a new holding company in the UK. Bank of Georgia appoints Seymour Pierce as Corporate Broker. In fall of 2011 Bank of Georgia moves to its new Headquarters [link], launches a new family of websites and completes brand restyling. The Bank also launches Express banking, represented by small-format service points where ATMs and self-service terminals are located and access to internet banking is provided.
2012 28th February marks very special date in Bank of Georgia’s history. On this day the shares of Bank of Georgia’s UK incorporated holding company Bank of Georgia Holdings plc, were admitted to trading on the premium segment on the Official List of the UK Listing Authority and to trading on the London Stock Exchange plc's Main Market for listed securities under the ticker BGEO.LN. From 15 June 2012 the shares of Bank of Georgia Holdings plc (LSE: BGEO LN) were included in both the FTSE 250 Index and the FTSE All Share Index. Other notable events of the year include: the launch of research services with an aim to provide comprehensive insight of the under-researched Georgian market to institutional and private investors; issuance of US$ 250 million Eurobond; EBRD and IFC’s decision to convert part of their respective loans to the Bank’s shares; de-listing of GDRs of Bank of Georgia; full redemption of the Loan Participation Notes due 2012; opening of an Asset and Wealth Management Representative Office in Budapest, Hungary (the Budapest Representative Office); Insurance Company Aldagi BCI acquires Meta Limited, the holding company which owned 51% of Imedi L, the third largest insurance company, and EBRD’s 34% stake in Imedi L, bringing Aldagi BCI’s ownership of the insurance company to 85%. In September 2012 Bank of Georgia Holdings plc hosts an Investor Day for analysts and investors in Tbilisi, Georgia.
Operations
The largest retail bank in the country with an 36% market share by total assets, Bank of Georgia serves 739,522 retail clients through its network of 142 branches and 405 ATMs (the largest ATM footprint in Georgia), as well as through other delivery channels including the Internet, mobile banking and state-of-the-art call center. The bank, together with its wholly owned subsidiaries, is organized into the following Strategic Business Units ("SBU"s) – Retail Banking (RB), Corporate Banking (CB), Insurance and Corporate Center (CC) and Business Units ("BU"s) - Wealth Management (WM) and BG Capital.