Bank Of Georgia Share Discussion Threads

[pj84] 29/8/2023 21:27

Claverhouse snaps up Georgian banks serving fleeing Ukrainians

JPMorgan Claverhouse fund manager William Meadon takes positions in two Georgian banks as he moves to counter high inflation and rising interest rates.

JPMorgan Claverhouse (JCH) has added two London-listed Georgian banks to the UK equity income trust after they became the unlikely beneficiaries of the war in Ukraine.

Russia’s invasion of Ukraine last year cast a pall over global stock markets but William Meadon, manager of the £387m trust, has managed to find two stocks that have benefited from the ongoing conflict.

He added Bank of Georgia (BGEO) and TBC Bank Group (TBCG) to the portfolio in the first half of 2023 as ‘Georgia has benefited from a huge influx of affluent Ukrainians and Russians fleeing the war’.

‘This has led to a surge in the Georgian economy and a thriving banking sector as deposits have growth,’ Meadon said.

‘Bank of Georgia and TBC Bank operate a duopoly in this market, which lends itself to very favourable economics for both banks.’

Meadon said that, as a result, both banks earn returns on equity of between 20%-30%. He added that with good balance sheets returns for shareholders should remain strong.

[eggbaconandbubble] 25/8/2023 07:13

What's also worth noting is the divi cover of more than 3.5.

[flyfisher] 25/8/2023 06:52

Consensus broker eps forecasts have been upgraded to 868p for the current year, giving a forward p/e of 4 and a historic yield of 7.6%.

Competitor TBCG trades on a forward p/e of 4.7 and a historic yield of 6%.

I see no reason for BGEO to trade at a lower rating and would hope for the gap to narrow.

[eggbaconandbubble] 21/8/2023 07:57

I read at the weekend somewhere(?) that investors were advised to take profits.... After such amazingly good results???

"Hey, let's get the share price down so we can load up!"

[pj84] 18/8/2023 16:08

Bank of Georgia positive after ‘consensus-busting results’

Peel Hunt has retained its ‘buy’ recommendation for Bank of Georgia (BGEO) after the group published ‘exceptionally strong’ second-quarter results.

Constant currency loan growth of 6.4% in the second quarter drove growth for the year to June up 17.6%, comfortably ahead of the medium-term target of 10%. Given it is ‘clearly winning’ market share in Georgia, Peel Hunt analyst Robert Sage said he would increase the current full-year forecast of 8.8% by ‘several percentage points’.

‘Although falling Georgian interest rates will negatively impact the industry net interest margin over time (it should also stimulate loan growth), in the second quarter Bank of Georgia’s net interest margin increased by 20 basis points quarter-on-quarter to 6.6% from 5.3% a year previously and we expect it to remain strong in the third quarter and above our full-year estimate of 6.3%,’ he said.

Costs increased 11.5% owing to business growth and digital investment, well below revenue growth of 34.8%. Pre upgrades – which Peel Hunt believes could be up to 10% for 2020 – the price-to-earnings ratio is four times and the dividend yield below 8%.

‘Significantly the momentum behind these consensus-busting results remains positive and low valuation multiples allow for material share price upside,’ Sage said, setting a target price of £40.

[eggbaconandbubble] 17/8/2023 10:10

As I write up 14.5% - better than a slap in the belly with a wet fish!

[flyfisher] 17/8/2023 06:55

A superb Q2, helped by a couple of exceptional gains. With an 8.3% dividend yield and a forward p/e under 4 it compares very well against competitor TBCG which has a yield of 6%.

Broker forecasts and the share price would seem to be behind events, in my opinion.

[flyfisher] 10/8/2023 11:40

Local competitor TBCG bank reported excellent Q2 results today.

Likely to be reflected here next week.

[flyfisher] 28/7/2023 07:31

The $79m outstanding 2023 eurobond was up for maturity this week. It would seem that they have no need to refinance it and repaid it from cash resources.

They have a $100m 11.125% perpetual in issue, i wonder if that is the next use for surplus capital, or another buy in ?

I would guess at a further buy in.

[eggbaconandbubble] 21/7/2023 14:10

Stockopaedia have them down (estimated) 8% yield for year end 23 and 9.5% year end 24.

[flyfisher] 20/7/2023 06:22

''The motley fool'' had a comment on bgeo yesterday.

It seems to ignore the exceptional fx gains it made last year.

It suggests a 9% plus yield.

[epistrophy] 13/7/2023 10:14

Thank you. So 5% is correct for the current year.

"dividends issued from 2023 profits and subsequent periods will no longer be taxed (existing dividend tax rate is 5%)"

[flyfisher] 13/7/2023 09:34

Epistrophy, See RNS 28/12/22.

[epistrophy] 13/7/2023 08:40

My broker seems to be withholding 5% of the dividend. Bit surprised as BGEO is a UK registered company (and you pay stamp duty when you trade!)

[daijavu] 11/7/2023 07:49

You have to compare the similarity of the overall chart patterns and ignore the daily changes.

[eggbaconandbubble] 06/7/2023 15:51

Except today!!!!

[daijavu] 05/7/2023 07:18

Look at their charts. Their sps both generally move in unison. What happens to one tends to happen to the other.

[eggbaconandbubble] 04/7/2023 15:37

TBC Bank tanked as well!

[houseofpain1] 04/7/2023 15:34

Anyone have any insight into why so weak today?

[bisiboy] 30/6/2023 22:04

It’s very simple it’s worth more with rather than without the dividend

[daijavu] 30/6/2023 08:21

Shares of most companies usually drop on XD day. Presumably because some people sell once they've secured their divs.

[eggbaconandbubble] 28/6/2023 15:35

xd tomorrow

[eggbaconandbubble] 09/6/2023 15:52

What caused the share price to drop today? Anyone???

[eggbaconandbubble] 09/6/2023 07:14

Bit of an odd trade of 3 shares at 29.80. I got a quote to sell at 30.26.

[flyfisher] 02/6/2023 10:42

Broker forecasts for 2023 have been raised again to around 750p eps.