Sulkhan Gvalia, acting as the Group and Bank of Georgia’s Chief Financial Officer (“CFO”), has decided to step down from the executive role from March 2026 to transition to a new stage in his life, following a 20-year tenure with the Group. He will remain a non-executive member on the supervisory boards of the Group’s various subsidiaries, including Ameriabank, the Group’s banking subsidiary in Armenia.Sulkhan will be succeeded by Giorgi Shagidze, who will be appointed Group CFO, responsible for Group finance and international growth, and Deputy CEO, Chief Financial Officer of Bank of Georgia (subject to regulatory approval). Giorgi joins from his recent role as CEO of maib, Moldova’s largest bank. Since 2021, he has led a bank-wide agile and digital transformation, strengthening digital capabilities, embedding a customer-centric culture, and delivering strong and consistent financial performance, alongside strong growth in market share and digital engagement. This comprehensive transformation significantly enhanced the bank’s institutional strength and long-term value. Giorgi’s broad banking experience includes serving as Deputy CEO and CFO of TBC Bank Group, where he played a key role in the Group’s IPO and the early stages of its expansion into Uzbekistan, as well as previously working as a Global Operations Executive at Barclays PLC. He holds an MBA from the University of Cambridge, is a CFA charterholder, and is a graduate of the Stanford Executive Program at Stanford Graduate School of Business.Furthermore, Giorgi Gureshidze, who has successfully led Bank of Georgia’s Mass Retail Banking direction since March 2025, has been promoted to the position of Deputy CEO, subject to regulatory approval.Archil Gachechiladze, Group and Bank of Georgia CEO, commented: “I would like to thank Sulkhan for his dedicated service and invaluable contributions to our success. He has been a pivotal member of the executive team, successfully leading our finance function and helping to build our business and culture. I am delighted that he will remain with the Group in a nonexecutive role.I am also very pleased to welcome Giorgi Shagidze to the team. His successful tenure as CEO at Maib provides him with deep experience in leading ambitious digital transformations and developing customer-focused banking. Giorgi's new role will concentrate on enhancing the finance function and pursuing international growth opportunities. I believe his insights, leadership qualities, and knowledge of the broad region will enrich the whole team.Finally, I would like to congratulate Giorgi Gureshidze on his well-deserved promotion. Under his leadership, Bank of Georgia’s mass retail business has consistently delivered strong results and grown from strength to strength. I wish him success in his new position.”

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According to the National Bank of Georgia’s data, as of December 2025, 4% of GEL-denominated loans for cafes and restaurants are non-performing (compared to 3.5% last year), while 11.4% of EUR-denominated loans are problematic (up from 8.4% in 2024).Out of GEL 377.5 million in bank loans to cafes, restaurants, and fast-food outlets, over GEL 15 million is non-performing. Meanwhile, of the USD 233 million equivalent loans, USD 26.5 million is problematic.Restaurant owners report a decline in customers and rising costs, making it difficult to sustain their businesses.

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Ordinary shares with a nominal value of £0.01 were granted to managers as deferred shares under the bank’s remuneration scheme, meaning they will be gradually vested over several years according to their contracts.A total of 20,393 ordinary shares were allocated to 6 managers, with the transaction closing on the London Stock Exchange on January 9.At the current London Stock Exchange price of £39.65 per share, the total value of the bonus shares is approximately £0.8 million.For reference, last year, bonus shares for work performed in 2024 were granted to both senior and mid-level managers for the first time. Last year’s recipients included Oliver Hughes, Bidzina Matsaberidze, Gvantsa Murghvliani, and Nikoloz Gvaberidze, with the largest allocation going to Vakhtang Buchvrikidze.For the 2025 work year, the fixed remuneration in shares was distributed as follows:

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In December, all three portfolios delivered similar performance, each gaining nearly 0.9%.The year 2025 proved to be one of the best for the Pension Fund portfolios. Among them, the dynamic portfolio achieved the highest growth over the year, while the balanced and conservative portfolios also showed strong returns: Dynamic – 15.2% Balanced – 13.3% Conservative – 11.8% Since its inception on August 6, 2023, the dynamic portfolio has also led in cumulative returns, with a 14.2% yield. The balanced and conservative portfolios recorded cumulative returns of 13.1% and 11.8%, respectively.By the end of December, the Georgian Pension Fund’s assets exceeded GEL 8.2 billion, while the generated income surpassed GEL 2.2 billion.

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Lion Finance Group (BGEO LN) shares closed at GBP 91.90/share (-0.27% w/w and -1.55% m/m). More than 305k shares traded in the range of GBP 88.80 - 93.20/share. Average daily traded volume was 64k in the last 4 weeks. The volume of BGEO shares traded was at 0.70% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 39.15/share (-1.63% w/w and -3.21% m/m). More than 293k shares changed hands in the range of GBP 38.00 - 40.50/share. Average daily traded volume was 53k in the last 4 weeks. The volume of TBCG shares traded was at 0.52% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 31.15/share (+0.81% w/w and +5.24% m/m). More than 415k shares traded in the range of GBP 30.35 - 31.60/share. Average daily traded volume was 56k in the last 4 weeks. The volume of CGEO shares traded was at 1.19% of its capitalization. 

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During the year, 26,820 participants received payouts from their funded pensions, totaling GEL 124 million.By the end of December, the assets of the Georgian Pension Fund exceeded GEL 8.2 billion, while the accumulated earnings reached GEL 2.2 billion, highlighting steady growth in the country’s pension system.

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The penalties stem from deficiencies in client monitoring, reporting, and internal controls.Among the fines, GEL 133,000 was issued for 19 instances of failing to record client transactions, GEL 17,000 for providing incorrect information to the NBG and the Financial Monitoring Service regarding AML/CFT risk oversight, GEL 15,000 for a software system that could not block or detect suspicious individuals, GEL 8,000 for serving four clients without properly establishing their business profiles, GEL 5,000 for late submission of primary accounting forms, GEL 5,000 for lacking internal control policies, and GEL 4,000 for incomplete documentation.The National Bank noted that the Lombard failed to detect suspicious, unusual, or split transactions, did not verify clients against sanctions or politically exposed persons lists, and operated a software system unable to fully record client information in accordance with KYC standards, highlighting systemic gaps in AML/CFT compliance.

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The NBG continues to focus on reserve accumulation, taking advantage of favorable market conditions throughout 2025. From January to November, net purchases totaled $2.07 billion, including monthly buys such as $101.7 million in March, $266.4 million in April, $245.4 million in May, $266 million in June, $416.9 million in July, $199.6 million in August, $100 million in September, $167.4 million in October, and $308.2 million in November. December’s data will be officially published on January 26, 2026.The NBG emphasizes that international reserves are a key guarantee of macroeconomic stability. Its long-term policy focuses on accumulating reserves and managing them efficiently. As of December 2025, gold accounts for 16.3% of total reserves ($1.002 billion). Thanks to rising gold prices, the value of monetary gold doubled since acquisition, adding $502.3 million to the reserves, highlighting the effectiveness of the NBG’s diversification strategy.Updated official data on Georgia’s international reserves will be released by the National Bank on February 6, 2026.

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According to the National Bank of Georgia’s interactive statistics, as of December 1, 2025, annual growth reached 11%, compared to just under 10% in the same period last year.The share of problematic mortgages has decreased. The non-performing loan ratio stands at 1.2% in GEL (last year: 1.5%), 1.6% in USD (L/Y – 2%), and in EUR-denominated housing loans for purchase or renovation, the share of non-performing loans fell by 0.3 percentage points.As of December 1, 2025, banks’ mortgage portfolios total GEL 13.2 billion, of which 31% are in foreign currency.

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According to Galt & Taggart, the bond’s current Z-spread stands at 196.9 bps. The improvement in position is linked to the shortening of its remaining maturity. The 5-year bonds will mature in April 2026, and discussions with potential investors are already underway. The President of the National Bank and the Minister of Finance met with representatives of around 15 investment firms.Meanwhile, Georgia Railway’s (GR) Eurobond (GRAIL), listed in London, traded last week at 94.4 with a 6.58% yield. As previously noted, GR’s $500 million bonds, issued on the London Stock Exchange in 2012 with a 10-year maturity and a 7.75% coupon, were redeemed early in 2021 with 7-year green Eurobonds carrying a 4% coupon.

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