The Bank of Georgia is confident that its business will reach new heights. According to Reuters, the banking group is slated to increase its profits and lending by 15 percent.
The financial institution is considered as one of the leading groups and centers in the country. In 2018 alone, the banking center reported that it has successfully attained 14.5 percent growth in its total revenue. Meanwhile, Reuters notes that the institution experienced a 25.1 percent growth in terms of profits prior to non-recurring items and text. The Bank of Georgia’s net profit was reportedly up to 5.5 percent in 2018.
The chief executive officer for the Bank of Georgia, Archil Gachechiladze, remarks that the company is confident that it will reach its target come medium term, particularly with regard to its lending and profit.
It appears that the recent changes in regulation should be thanked for helping reduce unregulated consumer lending. The guidelines set forth in the industry include not only a tighter set of rules but also regulated banking lending and consumer borrowing.
While Gachechiladze acknowledges that the new scheme in place can be quite constricting, especially with the ability to hinder and restrict growth. To be specific, the chief executive officer of the Bank of Georgia feels that its loaning capability and capacity will be constrained, reports Reuters.
However, Gachechiladze states that while this is the case, the new guidelines can help reduce the risk for financial institutions when it comes to loaning money to consumers.
The company foresees it reaching a growth of around 15 percent for the year. However, despite the predicted slow development in consumer lending, the Bank of Georgia expects more progress in terms of its corporate sectors, mortgages, and small and medium-sized enterprises.
As of writing, Reuters reports that the shares of the company have risen to 21 percent.