Finance

GCAP launches new GEL 1 BLN capital allocation programme

The programme will include both capital returns to shareholders - through share buybacks and, if required, dividends - as well as new investments in Georgia and Armenia. The first stage of the programme will be a US$50 million share buyback and cancellation initiative. The Board of Directors expects that at least half of the GEL 1 billion programme will be allocated towards returning capital to shareholders.With regard to investment opportunities in Armenia, GCAP said it increasingly views Georgia and Armenia as similar growth markets, offering opportunities to invest in complementary businesses across both economies. The company is already participating in Armenia’s economic growth through Lion Finance Group’s investment in Ameriabank, as well as through the expansion of its retail pharmacy business, which currently operates 23 stores in the country.Further announcements regarding new share buyback phases, potential acquisitions and other capital allocation initiatives will be made gradually as the programme progresses through the end of 2029.The announcement of the new programme follows a significant strengthening of GCAP’s balance sheet. The company has fully eliminated HoldCo-level borrowing, meaning that after the completion of the current share buyback programme and repayment of existing liabilities, GCAP will have approximately GEL 310 million in available liquidity at the holding company level.The Group also expects to generate strong free cash flow from its private portfolio companies, supported by growing dividend inflows driven by continued earnings growth. In addition, GCAP expects dividend income from its 14.9% stake in Lion Finance Group, which is expected to provide significant additional cash resources through the end of 2029.Taking these factors into account, the Board has updated the company’s capital allocation policy. All new investment opportunities will continue to be assessed against the alternative of repurchasing GCAP shares and reinvesting capital into the existing portfolio.However, as the discount between GCAP’s share price and its net asset value (NAV) per share has narrowed significantly in recent quarters, selective new investments have become increasingly attractive from a relative return perspective. According to the company, these opportunities provide an additional avenue for long-term growth while allowing GCAP to continue benefiting from the strong performance of its existing portfolio companies.GCAP said that over the past three years, NAV per share has increased by approximately 34% annually on average, reflecting the significant value created by its portfolio companies.

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Borrowers' complaints to banks have increased

Among the complainants are general mortgagees, for whom the servicing bank increased the collateral requirement for the next tranche, requiring alternative real estate of a family member to be secured.According to H1/2026 statistics, there are 15,600 (H1/2025 - 13,700, +14%Y.Y) complaints from dissatisfied clients with banks (including microbanks).Number of claims by product: H1/2026/

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Liberty Bank's net profit amounted to GEL 52.8 MLN, deposits grew by 3...

Total assets: GEL 6.3 billion (growth of 15%); Loan portfolio: GEL 4.6 billion (growth of 15%); Deposit portfolio: GEL 5 billion (growth of 34%). The bank explains that as a result of the transition from the social segment to a diversified universal model, the share of social loans in the total portfolio decreased to 11%. In addition, the MSME (micro, small and medium enterprises) portfolio has increased 4 times in the last 5 years and reached GEL 1.85 billion.In parallel, the use of digital channels has also increased - in the last 1 year, the number of remote service users has increased by 12.6% and reached 1 million.As a reminder, in April 2026, Basisbank acquired 95.99% of Liberty shares. According to the first half of the year, Basisbank's assets amounted to GEL 6.2 billion, its credit portfolio amounted to GEL 3.7 billion, and deposits amounted to GEL 4 billion (net profit increased by 44%, to GEL 74 million).Liberty is one of the largest financial institutions in Georgia, serving more than 1.7 million individuals and more than 60,000 businesses. The bank is represented by about 500 service centers and about 700 ATMs across the country.

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Basisbank's net profit increased by 44% to GEL 74 MLN

Basisbank's financial indicators in figures: Total assets: GEL 6.2 billion, a 43% increase compared to the same period of the previous year.~ Total loan portfolio: GEL 3.7 billion, a 22% increase. Total deposit portfolio: GEL 4 billion, a 40% increase. Net profit: GEL 74 million, a 44% increase. Basisbank remains one of the primary supporters of Georgian business and stably occupies its place among the top three largest banks. This year, the pace of business financing by Basisbank has increased even further, with the growth of the corporate portfolio reaching 28% (GEL 2.8 billion), while the volume of corporate deposits amounted to GEL 2.3 billion. According to the 6-month data of 2026, the volume of retail loans amounted to GEL 942 million, while retail deposits totaled GEL 1.7 billion.As of June 30, 2026, Return on Assets (ROA) stood at 2.51%, and Return on Equity (ROE) stood at 14.05%.According to the first-half 2026 data of BB Leasing and BB Insurance, which are part of the Basisbank Group, the portfolio of BB Leasing amounted to GEL 48 million, representing an 8% portfolio growth compared to the same period of the previous year. The premium raised by BB Insurance in the first 6 months of 2026 amounted to GEL 9.5 million.According to the General Director of Basisbank and Liberty, Davit Tsaava, the first half results are the result of the right strategy. He also highlighted the deal made in April 2026, when Basisbank acquired 95.99% of Liberty Bank shares, which became the largest strategic transaction of the year.Liberty Bank itself recorded a net profit of GEL 52.8 million in 2Q26, while its assets amounted to GEL 6.3 billion.

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Lari strengthens in July too

As of the monthly review of the National Bank of Georgia, in June, compared to the previous month, the average exchange rate of the lari against the US dollar strengthened from 2.6806 to 2.6561 (by 0.9%), and against the Euro from 3.1315 to 3.0621 (by 2.2%).At the end of the month, the official exchange rate of the lari against the US dollar and the Euro amounted to 2.6453 and 3.0156, respectively. During the period, the maximum value of the GEL/USD exchange rate was 2.6693, and the minimum value was 2.6453.In June, compared to the average USD exchange rate, the maximum value of the exchange rate deviated more than the minimum.In June, on average, the Turkish lira continued to depreciate against the dollar, both in monthly and annual terms. In monthly terms, the Euro and the Russian ruble also depreciated. The Armenian dram strengthened slightly, while the Azerbaijani manat remained practically unchanged. As for the GEL, the strengthening is observed both in monthly and annual terms. As a result, the nominal effective exchange rate of the GEL strengthened (NEER), both in monthly and annual terms. Specifically, in June by 3.8% annually, and by 1.7% in monthly terms.

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The NBG fined MFO

MFO "B Credit" was fined GEL 4,000 for deceiving the supervisor. The NBG noted 2 facts of providing incorrect data.Each case is subject to a fine of GEL 2,000, and accordingly, GEL 4,000 was issued.

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Georgian companies’ share prices on the LSE have changed irregularly

Lion Finance Group (BGEO LN) shares closed at GBP 116.10/share (-0.77% w/w and +2.47% m/m). More than 264k shares traded in the range of GBP 110.50 - 119.30/share. Average daily traded volume was 39k in the last 4 weeks. The volume of BGEO shares traded was at 0.61% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 48.12/share (+1.05% w/w and +8.57% m/m). More than 294k shares changed hands in the range of GBP 46.00 - 49.32/share. Average daily traded volume was 51k in the last 4 weeks. The volume of TBCG shares traded was at 0.53% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 39.55/share (-5.16% w/w and -5.38% m/m). More than 95k shares traded in the range of GBP 39.30 - 42.35/share. Average daily traded volume was 29k in the last 4 weeks. The volume of CGEO shares traded was at 0.28% of its capitalization.

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Consumer Warning from the NBG

According to the information available to us, these individuals offer citizens alleged assistance in settling loan obligations supposedly owed to the NBG, as well as in carrying out other similar financial operations. In one particular case, a citizen was informed that potential unauthorized access to their personal banking data and an attempted loan activation had been detected. To supposedly verify this, the individual was instructed to log in to their internet and/or mobile banking account using their credentials.During these communications, users are also asked to provide the login credentials required to access their internet and/or mobile banking accounts, including their username and password, as well as other personal and financial information.Please note that if such information is disclosed, fraudsters may gain access to your bank accounts, creating a risk of unauthorized transactions and resulting in financial loss or damage.The National Bank of Georgia urges citizens to exercise particular caution and vigilance. Do not disclose your personal or financial information, including the username and password required to access your internet and/or mobile banking accounts. Furthermore, do not enter such information into suspicious links sent by unknown individuals, and do not attempt to carry out banking or payment card transactions through them. If you encounter such a situation, please contact the relevant law enforcement authorities.We remind you that, as part of its efforts to protect the rights of financial sector consumers, the National Bank of Georgia periodically publishes warning and educational information on commonly used financial fraud schemes. Relevant materials are available on the official website of the National Bank of Georgia and its financial education website.

1785497162

NBG Presented Interactive Tools Developed as Part of Its New Analytica...

The new platform aims to further enhance access to economic information, strengthen transparency, and expand data analysis capabilities.The Economic Data Portal brings together key statistical data on the Georgian economy in a single, integrated space. It enables users to easily find relevant time series, select the desired data frequency, level of aggregation, and rate of change, and download the results in a convenient format.The Interactive Analytical Report on CPI Inflation is a modern analytical tool that enables users to examine inflation dynamics, its main components, and price-change trends in depth. The report allows data to be displayed at the selected frequency and rate of change through interactive charts and tables.The new tools will significantly simplify the process of finding, processing, and interpreting economic data. They will also support the development of data-driven research and analysis and help the public make more informed decisions.The presentation of the Analytical Platform was attended by representatives from commercial banks, international financial institutions, research organizations, academia, and other interested stakeholders. During the event, participants were introduced to the functionality and capabilities of the new tools, as well as practical examples of their use.

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Pension Fund: Government Securities Remain a Strategic Asset Class

In particular, according to them, certificates of deposit remained one of the largest sources of returns in pension assets, which reflects both their high share in the total portfolio and the stable profitability of the local banking sector.According to them, Georgian government securities, which remain one of the main strategic asset classes of the Pension Fund, also retained an important role in annual returns. In addition, during the year, the Fund further deepened its involvement in the local capital market and maintained its role as a leading institutional investor in the Georgian corporate bond market.Investment officers note that the Fund’s investment approach is based on strategic asset allocation, which they say is the main determinant of profitability in the long term. “In the future, our main priority remains unchanged: maximizing positive real returns in the long term, prudent risk management, and playing a significant role in the Georgian capital markets and international markets.”It should be noted that during 2025, the volume of pension assets increased by 37% and reached GEL 8.2 billion by the end of the year. The investment profit generated in 2025 amounted to GEL 796 million, which is the highest annual figure in the history of the fund, and the total investment income since its establishment has exceeded GEL 2.2 billion.In 2025, all three investment portfolios showed double-digit nominal profitability. The dynamic portfolio recorded the highest result - 15.2%, the profitability of the balanced portfolio amounted to 13.3%, and the conservative portfolio, in which the largest part of the assets is placed, showed a return of 11.8% during the year.In 2025, international equities were the fund's highest-yielding asset class. Accordingly, the dynamic portfolio, in which the share of stocks is the highest, retained its leadership among investment portfolios in 2025.During the year, the share of international stocks in pension assets increased from 16.5% to 19.2%, and the profit received amounted to GEL 239 million, which is equivalent to an annualized return of 20.7%.The local economic environment remains one of the main determinants of the fund’s results, as more than 80% of pension assets are invested in Georgia. According to the fund, the macroeconomic background was generally favorable during the year: economic growth continued at a high pace, inflationary pressures remained at a manageable level, and the lari strengthened against the US dollar.

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Russia ratifies 2026-2030 development agreement with occupied Abkhazia

1785928821 • Politics

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"port construction has been accelerated to the maximum"

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Consumer Warning from the NBG

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Politics

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Russia ratifies 2026-2030 development agreement with occupied Abkhazia

The so-called intergovernmental agreement was signed in Moscow on December 27, 2025. The official goal of the document is to deepen socio-economic cooperation, raise the living standards of the population, and promote economic and investment activity.Funding Directions and Conditions Social and Cultural Sphere: The allocated financial assistance is directed to projects in the fields of education, youth policy, child rearing, cultural exchange and tourism. Law enforcement agencies: The agreement envisages increasing the salaries and social guarantees of employees of the so-called Ministry of Emergency Situations, the Prosecutor's Office and the State Protection Service of the occupied region. Provision of Medicines: The document also stipulated that the responsibility for the provision of medicines to Russian citizens permanently residing in the occupied territory lies with the local de facto authorities.

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Kobakhidze issues order to dismiss Tinatin Rukhadze

By the decision of the head of government, First Deputy Minister of Culture Maka Gurgenidze also resigned. In addition, according to another order dated July 28, the Prime Minister appointed Mikheil Kiknadze as First Deputy Minister of Culture.Tinatin Rukhadze announced her resignation from the post of Minister of Culture yesterday, July 28. In an address published on her personal Facebook page, she cited her health as the reason for her decision and noted that the current situation does not allow her to devote due attention to her beloved work.

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"We firmly oppose censorship" - the US Embassy's response to the arres...

As the Embassy explained, they firmly oppose censorship and restrictive laws that are used to silence people with undesirable views.“The Trump administration has clearly stated that the United States considers freedom of speech a fundamental foundation of a functioning society, and we firmly oppose censorship and those restrictive laws that are used to silence people with undesirable views. As we have also shared with our Georgian partners, stability requires a political opposition that cooperates with state institutions on behalf of the citizens who voted for them. Political stability, ensured by a broad representation of views, is part of the factors that make Georgia a reliable partner for American investments, security cooperation, and long-term strategic partnership.We are concerned about the Georgian government’s Directorate for Combating Hate Speech. The best response to lies and false views is more freedom of speech, not enforced silence,” - the US Embassy noted.

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Georgia, Turkmenistan Agree to Develop Middle Corridor, Expand Trade T...

During the visit, the parties signed a joint statement, as well as agreements and memorandums of understanding on cooperation in various fields.The Middle Corridor and Transport and Logistics PotentialThe meeting between the leaders focused on the importance of developing the Trans-Caspian international transport route - the Middle Corridor - and the need to attract additional cargo flows in this direction.According to the head of the Georgian government, Irakli Kobakhidze, Georgia is actively following the ongoing infrastructure and logistics projects in Turkmenistan, which have created a solid foundation for expanding regional ties.“Central Asia is a particularly interesting region for Georgia. In this context, we consider Turkmenistan as a reliable partner and friendly state. The relations established between our countries are based on many years of friendship and mutual respect,” Irakli Kobakhidze said.Increasing trade turnover and business forumTurkmen President Serdar Berdimuhamedov emphasized that Georgia is one of Turkmenistan’s main economic partners in the region and the country highly appreciates Tbilisi’s constructive position in the international arena.According to him, the Turkmenistan-Georgia business forum held within the framework of the visit showed that there is great potential for increasing bilateral trade volumes and expanding product exchanges: Political and diplomatic ties: The parties agreed to strengthen diplomatic efforts to ensure long-term partnership. International formats: Cooperation with global organizations is expanding, especially within the framework of the United Nations (UN). Diversification: The Turkmen side expresses its readiness to diversify economic ties with Georgian business. “We agreed to expand political relations, diplomatic efforts so that our ties can continue in the long term. We attach special importance to business relations and we want to diversify our economic ties,” Serdar Berdimuhamedov noted.Support for Sovereignty and Humanitarian PartnershipAt the briefing, the Georgian Prime Minister thanked the Turkmen authorities for their firm support for Georgia’s sovereignty and territorial integrity within its internationally recognized borders.In addition to economic and transit directions, the leaders discussed better utilization of the potential in the tourism sector, stimulation of bilateral tourist flows, deepening people-to-people ties, and cooperation in the fields of education and culture.For information, this is the second state visit of the President of Turkmenistan to Georgia. The first such visit took place in 2015, when former President of Turkmenistan Gurbanguly Berdimuhamedow visited the country.

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Combating Antifa and Security Challenges - Bochorishvili Delivers Spee...

According to the Ministry of Foreign Affairs, in her speech, the Minister emphasized that, against the backdrop of modern security challenges, placing the issue of political terrorism on the international agenda is of particular importance.“This discussion is particularly timely, as today we are faced with complex and constantly changing challenges that directly affect our national interests, sovereignty, and security,” said Maka Bochorishvili.The Vice Prime Minister drew attention to the risks posed by radical groups. According to him, these forces often act in the name of democracy, although their real goal is to weaken state institutions.According to the Minister, Georgia is a vivid example of these challenges, where in recent years there have been numerous attempts to polarize society and discredit state systems: Coordinated campaigns: targeted actions against constitutional bodies, including the judiciary and electoral systems. Violence and sabotage: attempts by radical groups to use violent acts as a political tool. In his speech, the Foreign Minister also spoke about the role of international organizations and the need to protect their reputation. According to Bochorishvili, the use of international mechanisms or resolutions for the purpose of external pressure damages both bilateral relations and the credibility of these institutions themselves.“The use of international institutions to legitimize such actions through resolutions and other mechanisms aimed at exerting political pressure on sovereign states is no less worrying,” the minister noted.At the end of her speech, Maka Bochorishvili noted that political terrorism often manifests itself in hidden and imperceptible forms (including intimidation and political violence), which is why the fight against it should be a common task for all democratic states.According to Reuters, the aforementioned ministerial is aimed at mobilizing global support from the US against “far-left political terrorism.” The White House believes that these movements have so far remained beyond the attention of law enforcement agencies.According to the agency, more than 60 countries were represented at the meeting organized by the US State Department - some of them at the level of foreign or interior ministers, and others at the level of relatively low-ranking officials.The Trump administration has made combating far-left groups, particularly Antifa, a top priority since the killing of conservative activist Charlie Kirk last year. The US State Department has said that attacks by far-left actors on police, businesses and infrastructure are an ideologically driven strategy aimed at destabilizing free societies. To this end, since November last year, Washington has officially designated several European far-left and anarchist groups as terrorist organizations (FTOs).