Investing.com — Shares in rose more than 3% on Thursday after the lender reported a 14% rise in first-quarter 2026 net profit to GEL 585 million, compared with GEL 513.1 million in the same period a year earlier.
The board also approved a further GEL 55 million share buyback and cancellation programme. A previous GEL 53.5 million programme, announced February 25, has been completed. Book value per share rose 21.5% year-on-year to GEL 207.82 as at March 31, 2026.
The London-listed financial group, which operates banks in Georgia and Armenia, posted a return on average equity of 27.4% for the quarter ended March 31, 2026, against 28.7% in the first quarter of 2025.
Operating income rose 15% year-on-year to GEL 1.13 billion in the quarter. Net interest income increased 18.4% to GEL 809.6 million, while net fee and commission income grew 27.5% to GEL 176.0 million. Net foreign currency gains fell 10.6% to GEL 130.1 million.
The group’s loan book stood at GEL 41.88 billion as at March 31, 2026, up 22.7% year-on-year, or 23.1% on a constant currency basis.
Georgian Financial Services loans grew 17.8% in constant currency, while Armenian Financial Services loans expanded 34.6% in constant currency.
Client deposits and notes totalled GEL 39.70 billion at the end of March, up 16.9% year-on-year.
Operating expenses rose 13.8% year-on-year to GEL 390.3 million. The cost-to-income ratio was 34.7%, compared with 35.0% in the first quarter of 2025.
The non-performing loan ratio was stable at 2.1% as at March 31, 2026, against 2.0% a year earlier. The cost of credit risk ratio was 0.3%, compared with 0.2% in the first quarter of 2025.
The board declared an interim dividend of GEL 2.85 per ordinary share in respect of the first quarter of 2026, payable on July 10.
Georgia’s economy expanded 9.1% year-on-year in the first quarter, according to preliminary data cited in the report. The group revised its full-year 2026 real GDP growth forecast for Georgia to 7% from 6.0%, and for Armenia to 6%, described as the upper end of its previously expected range.
“This quarter was marked by a historic event for the Group: our inclusion into the FTSE 100 index, validating two decades of consistent execution,” Chief Executive Archil Gachechiladze said.
Gachechiladze said that amid inflationary pressures in Georgia and a moderately tight monetary policy stance, strong loan demand is expected to support net interest income, while lower currency volatility may reduce FX gains.
He also noted ongoing AI initiatives to improve customer experience and efficiency, though their financial impact remains too early to quantify.