The Bank of Georgia ranks first in terms of assets among other banks in Georgia. The bank's assets account for 36% of the total assets of the banking system of Georgia, which makes it possible to consider the Bank of Georgia as a backbone of the system. The loan portfolio of the bank demonstrates high qualitative growth, which is also reflected in a significant increase in interest income of the bank. The share of bad loans is steadily maintained at a minimal level. A sufficient level of provisioning is indicated by the presence of a minimum discrepancy between the collected and accrued interest income. At the same time, the bank also has fairly dependable liquidity reserves that serve as an additional excess in case of sudden deterioration of the bank's operating conditions. Given the almost complete absence of internal risks, the stability of the bank can only be exacerbated by the sharp deterioration in the macroeconomic background in Georgia. However, given the colossal systemic significance of the Bank of Georgia, the risks of default and failure to fulfill its obligations are barely possible. We recommend to Buy the Bank of Georgia’s bonds as reliable instruments with yields exceeding analogous investments in Eurobonds of Kazakhstan’s issuers with the corresponding risk profile.
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