CLIENT-CENTRIC, MULTI-BRAND STRATEGY FOR OUR C.2.1 MILLION CLIENTS
We are the leading retail banking player in Georgia, serving c.2.1 million customers through the widest network of 273 retail branches, 801 ATMs and 2,729 Express Pay (self-service) terminals, a sales force of more than 3,000 people, along with our diverse products and services. Our Retail Banking business, the prominent ingredient of our business, runs a client-centric, multi-brand strategy which reaches the entire spectrum of retail customers through three well-established and recognised brands:
1. Express – designed to magnetise emerging retail customers with minimal incremental operational costs through cost-efficient distance channels such as our Express Pay terminals, internet and mobile banking and technology-intensive Express branches;
2. Bank of Georgia – providing the long-established traditional banking services to our mass retail clients; and
3. Solo – targeting mass affluent customers and providing a unique blend of banking and lifestyle products and services.
CORPORATE INVESTMENT BANKING
INTEGRATED SOLUTIONS FOR OUR CIB CLIENTS
Our Bank is the leading corporate lender in the country with deep sector knowledge and local expertise. Our Corporate Banking business is characterised by outstanding flexibility in meeting our corporate clients’ needs and offers the most comprehensive range of products and services in the country. We are proud to accommodate more than 3,000 businesses in Georgia and play our part in developing various sectors of the economy such as trade, energy, industry and tourism, among others. Corporate Banking additionally serves as the country’s leading trade finance business and provides leasing services through the Group’s wholly-owned subsidiary, Georgian Leasing Company (GLC).
We are at the forefront of capital markets development in Georgia. We aim to leverage our superior knowledge and capital markets capabilities in the Georgian and neighbouring markets both in terms of reach and the expertise that we have accumulated during the past several years through our corporate advisory, research and brokerage practices united under Galt & Taggart – a wholly-owned subsidiary of the Group. Our brokerage business, serves regional and international markets, including hard-to-reach frontier economies. Our Macro and Sectoral Research currently covers the Georgian and Azeri economies and publishes Georgian sector research (subscription to the research on www.galtandtaggart.com).
WE ARE AN ESTABLISHED LEADER OF INVESTMENT MANAGEMENT SERVICES IN GEORGIA
Accommodating international clients from 68 countries, our Wealth Management business provides private banking services to our high-net worth individual clients and offers investment management products internationally through representative offices in London, Budapest, Istanbul and Tel Aviv. As Georgia has a pay-as-you-go pension system, the Bank believes that its wealth management franchise can benefit by focusing on the distribution of local debts.
WELL CAPITALISED SME BANK IN BELARUS
OJSC Belarusky Narodny Bank (BNB) offers individual and business banking services principally to SMEs and middle-income retail banking customers in Belarus. BNB was one of the first privately-owned commercial banks in Belarus, established in 1992. The Group has recently increased its ownership of BNB from 80% to 95% while IFC now holds the remaining 5%. BNB is a non-core business and the Group aims to exit from it eventually.
GEORGIA HEALTHCARE GROUP (GHG)
THE LEADING INTEGRATED PLAYER IN THE GEORGIAN HEALTHCARE ECOSYSTEM OF GEL 3.4 BILLION VALUE
Georgia Healthcare Group PLC is the UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian health market. GHG offers by far the most comprehensive range of inpatient and outpatient services in Georgia. GHG targets the mass market segment through its vertically integrated network of 35 hospitals and ten ambulatory clusters, including 13 district ambulatory clinics and 28 express ambulatory clinics as at 31 December 2016. GHG is the single largest market participant, accounting for 23.4% of total hospital bed capacity in the country as at 31 December 2016. GHG is the largest pharmaceuticals retailer and wholesaler in Georgia, with approximately 29%* market share by revenue in 2016. GHG has approximately two million client interactions per month, with 0.5 million loyalty card members. GHG is also the largest provider of medical insurance in Georgia, with a 35.1% market share based on net insurance premiums earned and has approximately 211,000 insurance customers as at 31 December 2016.
*Including ABC’s market share acquired by GHG in January 2017.
m² REAL ESTATE (m²)
A FAST-GROWING, LEADING REAL ESTATE DEVELOPER AND ASSET MANAGER IN GEORGIA
Our real estate business, the Group’s wholly-owned subsidiary, m² Real Estate, develops and sells residential and commercial properties in Georgia. m² also manages yielding real estate asset portfolio, which it accumulated through its own developments as well as opportunistic investments in high street real estate. For the past couple of years m² has established itself as one of the most recognisable and trustworthy residential housing brands in the country. m² Real Estate outsources the construction and architecture works while focusing on project management and sales. m² Real Estate completed sales of 2,047 apartments worth US$ 172.9 million since 2011 with 97.2% of apartments sold in six successfully completed projects and 35.1% pre-sales in four ongoing projects. The number of apartments financed with BOG’s mortgages in all m² Real Estate projects as of 31 December 2016 totalled 946, with an aggregate amount of GEL 110.7 million. m² Real Estate has the exclusive right to develop Wyndham Ramada Anchor hotels in Georgia. Construction of one hotel has begun and work on two more is expected to start during 2017.
GEORGIA GLOBAL UTILITIES (GGU)
MAJOR UTILITY AND ENERGY COMPANY, WITH CLEAR GROWTH OPPORTUNITIES AND ROOM TO IMPROVE EFFICIENCY
GGU has two main business lines – water utility and electric power generation. In its water utility business, GGU is a natural monopoly that supplies water and provides a wastewater service to 1.4 million people (approximately one-third of Georgia’s population) in three cities: Tbilisi, Mtskheta and Rustavi. In the electric power business, GGU owns and operates four hydropower generation facilities with a total capacity of 149MW. Generated power is primarily used by GGU’s water business, with the excess amount of generated capacity sold to third parties. GGU has a pipeline of developments in hydro power plants and wind and solar energy production. When BGEO acquired its initial stake in GGU in 2014, the Group put in place a strong management team. The team has been further strengthened since the acquisition of full control in 2016.
CREATING A LEADING BEVERAGES PRODUCER AND DISTRIBUTOR IN CAUCASUS
Teliani is a leading Georgian wine producer and beverage distributor with a wide distribution platform of a variety of imported beverages as well as own produced wine. Teliani sells over three million bottles of wine annually, with about 60% of sales coming from exports. Building on its existing franchise of distribution, Teliani is currently expanding into a new business line of beer and soft beverage production, with a ten-year exclusivity from Heineken to sell in three countries: Georgia, Armenia and Azerbaijan – a total population of 17 million people. The construction of the beer production facility has been completed during 2016 and Teliani aims to start brewing in the first half of 2017. With a strong management team and a proven track record, Teliani aims to become a leading beverages producer and distributor in the South Caucasuss.
THE LEADING PROPERTY AND CASUALTY INSURANCE BUSINESS
Our Property & Casualty business (P&C or Aldagi) is a leading player in the Georgian P&C insurance market, with a market share of 34.9% in 2016. Covering more than 700,000 insured customers, the P&C insurance business is synergistic to the to the Bank’s operations. Aldagi will be stepping-up cross-selling of its insurance products with the Bank’s Retail Banking and Corporate Investment Banking products.