GCAP reduces capital by $152 million after BGEO divestment

Meanwhile, the group’s plan is to accumulate more than GEL 200 million in profit in Uzbekistan, with an expected annual growth of 80% in total loans.For the year, TBC plans a dividend payout ratio of 25-35% at the group level, and expects a return on equity (ROE) of more than 23%.Among the target indicators, the group expects 7 million monthly active digital users (Digital MAU), including more than 5 million in Uzbekistan. In 2024, Digital MAU in Uzbekistan was 5.9 million (+37.2% y.y), and in Georgia it was 1.1 million (+14% y.y).In 2024, TBC PLC's profit was GEL 1.308 billion, +14.7% y.y, while Digital MAU was 7 million, +34% y.y; ROE in 2024 was 25.6%, -0.9 percentage point  y.y.According to Chairman of TBC PLC Arne Berggren, the numbers speak for themselves, with our loan book doubling in 2024, revenues and net profit up by 99% and 86%, respectively, and 26.9% ROE – Uzbekistan.  As a result, digital monthly active users (MAU) increased by 34% to 7 million.As of him, TBC remains a highly profitable market leader in Georgia, with 14% year-on-year loan book growth on a constant currency basis helping fuel 12% net profit growth and an excellent 25.4% ROE, despite the monetary easing cycle bringing margin pressures. “2024 was a year of scaling up our business and expanding the products and services we offer our customers. We are growing fast, and profitably. Our loan book has more than doubled year-on-year to GEL 1,758 million (USD 626 million), while our revenues and net profit increased by 99% and 86% year-on-year, respectively, to GEL 414 million (USD 152 million) and GEL 110 million (USD 41 million). In Uzbekistan, we are now generating excellent returns – 26.9 % ROE and 7.2% ROA, despite investing heavily in new products, back-end infrastructure (such as our state-of-the-art data processing centre and generative AI projects) and fintech talent. Our progress in digital transformation has further strengthened our market presence. Digital monthly active users (MAU) reached 1.1 million, an 14% increase year-on-year”, - CEO Vakhtang Butskhrikidze said.

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“The first visit to Azerbaijan will be on April 14-15, then to Armenia, presumably at the end of the month. The dates have not yet been determined,” he said in the Public Broadcaster’s podcast “42nd Parallel.”On March 20, it became known that Luka Ekhvaia had been appointed as Mikheil Kavelashvili’s advisor on international relations.Luka Ekhvaia considers the US's termination of strategic cooperation with Georgia to be "a big step on the path to decolonization"; he also states that Georgia needs to be included in the regional "3+3" format.

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The annual inflation rate was mainly influenced by price changes for the following groups:Food and non-alcoholic beverages: the prices in the group increased by 6.6 percent, contributing 2.2 percentage points to the overall annual inflation rate. Within the group the prices increased for the following subgroups: vegetables (21.3 percent), oils and fats (16.4 percent), coffee, tea and cocoa (14.4 percent), sugar, jam, honey, chocolate and confectionery (10.8 percent), mineral waters, soft drinks, fruit and vegetable juices (7.8 percent), bread and cereals (5.2 percent), fish (3.5 percent), milk, cheese and eggs (2.8 percent), meat (1.4 percent). At the same time, prices decreased for fruit and grapes (-3.3 percent);Health: the prices increased by 8.8 percent, contributing 0.74 percentage points to the overall index. The prices were higher for the following subgroups: out-patient services (8.9 percent), medical products, appliances and equipment (8.4 percent), hospital services (7.6 percent);Miscellaneous goods and services: the prices for the group increased by 6.3 percent, contributing 0.32 percentage points to the overall index. Within the group, the prices were higher mainly for the following subgroups: personal effects n.e.c. (22.4 percent), insurance (8.7 percent), financial services n.e.c. (5.4 percent), personal care (3.6 percent);Alcoholic beverages and tobacco: the prices increased by 4.2 percent, with the relevant contribution of 0.28 percentage points to the overall annual inflation rate. The prices increased for both alcoholic beverages (5.3 percent) and tobacco (2.9 percent);Communication: the prices decreased by 12.4 percent, contributing -0.46 percentage points to the overall index.

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Previously, Beraia served as Deputy Minister of Justice. Born on July 23, 1976, he graduated from the Faculty of Economics at Ivane Javakhishvili Tbilisi State University in 1998. From 2016 to 2025, he was a member of the 9th, 10th, and 11th convocations of the Parliament of Georgia. Before entering politics, he had a successful career in the banking sector, according to the Ministry of Finance.

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The meeting focused on the upcoming expansion of the NBG’s supervisory mandate, set to take effect on May 1, 2025. Under this change, the National Bank of Georgia will oversee not only the Pension Agency’s investment activities but also its administrative and operational functions.Discussions also covered the Governing Board’s future plans and strategies to ensure effective supervision during the transition period."As a supervisory authority, our primary goal is to ensure a secure and reliable environment for the protection and effective management of Pension Agency participants' savings, utilizing the supervisory mechanisms granted to us by law. Today’s meeting served as an introduction, where we discussed the role of the newly formed board during the transition period, along with other key aspects of supervision," stated Natia Turnava, Governor of the National Bank of Georgia. 

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At the event, representatives from the NBG's Financial Markets and Macroeconomics and Statistics Departments will exchange insights with their Kyrgyz counterparts.Ekaterine Mikabadze, First Vice Governor of the National Bank of Georgia, delivered the opening remarks:"According to an IMF study, Georgia is at the forefront of monetary policy modernization in the Caucasus and Central Asia. This achievement is a testament to our professional team, and we are pleased to share our experience with colleagues from other central banks. The National Bank of Georgia remains committed to actively participating in technical assistance workshops. Our collaboration with the International Monetary Fund is invaluable, and these joint workshops further strengthen our long-standing and growing partnership," said Mikabadze.The workshop is part of the NBG’s Educational Space project, organized in partnership with the IMF Regional Capacity Development Center. Through this initiative, the NBG actively engages in knowledge-sharing with international partners.As part of the CCAMTAC work program, the NBG hosted representatives from the central banks of Kazakhstan and Uzbekistan in 2023. In 2024, it held a seminar on financial programming and policy, which also included participants from the Georgian public sector. 

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Excluding the one-off dividends, GEL 122.2 million was received from Lion Finance Group, reflecting a combination of regular cash dividends and our participation in their share buybacks, GEL 25.4 million from our insurance businesses, GEL 10.0 million from retail (pharmacy), and GEL 21.5 million from renewable energy and other businesses. Looking forward to 2025, we currently anticipate receiving in excess of GEL 180 million in regular dividends from our portfolio companies.A one-off dividend of GEL 22.6 million from Lion Finance Group, represents the advanced participation in their share buyback programme, which decreased our stake in Lion Finance Group to 19.23% as at 31 December 2024 (31 December 2023: 19.71%). GCAP’s targeted holding level in the Group remains at 19.5%.However, according to GCAP CEO Irakli Gilauri, GCAP’s target controlling stake in BOGG remains unchanged at 19.5%.In addition, GCAP received GEL 25.4 million in dividends from insurance businesses, GEL 10 million from retail (pharmacies), GEL 21.5 million from renewable energy and other businesses.According to Gilauri, in the 2025 perspective, the group expects to receive more than GEL 180 million in regular dividends from its portfolio companies.In total, GCAP received GEL202 million in dividends, -14.5% y.y, including GEL 179 million in regular (-0.4% y.y), and GEL 23 million in one-time (-59.7% y.y).Details of GEL 179.2 million regular dividend in 2024 (in million lari)

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Other than already identified greenfield projects in the renewable energy and education businesses, the Group expects to focus on acquisitions.By driving the development of these two businesses, the Group expects to realise at least 2.0x MOIC at each investment level. No investments are expected in the clinics and diagnostics business from GCAP.During 2024, we allocated capital in a number of key areas, with an investment of GEL 16.9 million in our private portfolio companies. This included: GEL 11.3 million allocated to the renewable energy business for the ongoing development of pipeline projects; and GEL 5.6 million allocated to the education and other businesses.

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