The London Stock Exchange (LSE) is one of the oldest and largest stock exchanges in the world, hosting thousands of businesses from more than 60 countries. Among these countries, Georgia has a notable presence, with four major companies listed on the LSE: Bank of Georgia Group, TBC Bank Group, Georgia Capital, and Georgia Healthcare Group. These companies represent the leading sectors of the Georgian economy, such as banking, investment, healthcare, and energy. In this article, we will review the performance and prospects of these Georgian companies on the London Stock Exchange, based on the latest data and news.
Bank of Georgia Group: A Strong Recovery
Bank of Georgia Group (BGEO) is the holding company for Bank of Georgia, the largest universal bank in the country, and Georgia Global Utilities, a water and energy utility provider. BGEO was formed in 2018, when the former BGEO Group split its banking and investment businesses. BGEO is the only Georgian company that is a constituent of the FTSE 250 Index, which includes the 101st to the 350th largest companies on the LSE.
BGEO has shown a strong recovery in 2023, after facing a challenging year in 2022 due to the COVID-19 pandemic and the regional geopolitical tensions. The company reported a net profit of GEL 614.9 million (GBP 139.6 million) for the first nine months of 2023, up by 51.4% year-on-year. The bank’s loan book grew by 23.7%, while its deposits increased by 25.4%. The utility business also improved its revenues by 17.4% and its EBITDA by 25.2%. BGEO’s return on equity (ROE) reached 23.5%, one of the highest among the emerging market banks.
The share price of BGEO has reflected its positive performance, rising by 57.7% in the past year, from GBP 1544 to GBP 2435. The company’s market capitalization stands at GBP 1.16 billion, making it the most valuable Georgian company on the LSE. BGEO has also maintained its dividend policy, paying out 25% of its earnings to its shareholders. The company’s management is confident about its future growth, as it plans to expand its digital banking services, increase its market share in the utility sector, and diversify its income sources.
TBC Bank Group: A Close Competitor
TBC Bank Group (TBCG) is the holding company for TBC Bank, the second-largest universal bank in Georgia, and TBC Insurance, a leading insurance provider. TBCG was established in 2016, when TBC Bank completed its premium listing on the LSE. TBCG is also a member of the FTSE 250 Index, along with BGEO.
TBCG has also demonstrated a robust recovery in 2023, after being affected by the pandemic and the regional instability in 2022. The company posted a net profit of GEL 519.5 million (GBP 117.9 million) for the first nine months of 2023, up by 44.9% year-on-year. The bank’s loan portfolio grew by 25.9%, while its deposits increased by 27.6%. The insurance business also boosted its revenues by 28.6% and its net profit by 65.9%. TBCG’s return on equity (ROE) reached 21.9%, slightly lower than BGEO’s, but still impressive among the emerging market banks.
The share price of TBCG has also followed its positive performance, increasing by 20.0% in the past year, from GBP 2485 to GBP 2985. The company’s market capitalization stands at GBP 1.64 billion, slightly higher than BGEO’s, despite having a lower share price. TBCG has also resumed its dividend policy, paying out 15% of its earnings to its shareholders. The company’s management is optimistic about its future growth, as it aims to enhance its digital banking capabilities, grow its insurance and leasing businesses, and explore new opportunities in the fintech and e-commerce sectors.
Georgia Capital: A Diversified Investment Platform
Georgia Capital (CGEO) is the holding company for a diversified portfolio of businesses in Georgia, spanning sectors such as renewable energy, hospitality, real estate, education, healthcare, and auto services. CGEO was created in 2018, when the former BGEO Group separated its banking and investment businesses. CGEO is the only Georgian company that is a constituent of the FTSE All-Share Index, which includes all the companies on the LSE’s main market.
CGEO has also shown a solid recovery in 2023, after facing a difficult year in 2022 due to the pandemic and the regional turmoil. The company reported a net profit of GEL 179.6 million (GBP 40.8 million) for the first nine months of 2023, up by 140.6% year-on-year. The company’s portfolio value increased by 13.9%, while its net asset value (NAV) per share rose by 15.4%. All of its businesses improved their revenues and profitability, except for the hospitality and real estate segments, which were still recovering from the pandemic’s impact. CGEO’s return on equity (ROE) reached 11.5%, lower than BGEO’s and TBCG’s, but still respectable among the emerging market investment companies.
The share price of CGEO has also reflected its positive performance, rising by 20.0% in the past year, from GBP 820 to GBP 984. The company’s market capitalization stands at GBP 458.6 million, much lower than BGEO’s and TBCG’s, due to its lower share price and smaller number of shares. CGEO has also reinstated its dividend policy, paying out 25% of its earnings to its shareholders. The company’s management is bullish about its future growth, as it plans to increase its stake in its existing businesses, launch new ventures in the e-commerce and fintech sectors, and pursue strategic acquisitions and partnerships.
Georgia Healthcare Group: A Leading Healthcare Provider
Georgia Healthcare Group (GHG) is the holding company for a network of healthcare businesses in Georgia, including hospitals, clinics, pharmacies, and medical insurance. GHG was established in 2015, when Bank of Georgia spun off its healthcare division and listed it on the LSE. GHG is the only Georgian company that is a constituent of the FTSE All-World Index, which includes all the companies on the LSE’s main market and other global exchanges.
GHG has also displayed a strong recovery in 2023, after being hit by the pandemic and the regional unrest in 2022. The company reported a net profit of GEL 71.4 million (GBP 16.2 million) for the first nine months of 2023, up by 66.7% year-on-year. The company’s revenues grew by 19.4%, while its EBITDA increased by 31.6%. All of its businesses improved their revenues and profitability, especially the hospital and pharmacy segments, which benefited from the increased demand for healthcare services and products. GHG’s return on equity (ROE) reached 16.4%, higher than CGEO’s, but lower than BGEO’s and TBCG’s.
The share price of GHG has also followed its positive performance, increasing by 18.2% in the past year, from GBP 275 to GBP 325. The company’s market capitalization stands at GBP 198.9 million, the lowest among the Georgian companies on the LSE, due to its lower share price and smaller number of shares. GHG has also resumed its dividend policy, paying out 20% of its earnings to its shareholders. The company’s management is confident about its future growth, as it plans to expand its hospital and clinic network, grow its pharmacy and insurance businesses, and invest in new technologies and innovations.
The Georgian companies on the London Stock Exchange have performed well in 2023, recovering from the challenges of 2022. They have shown strong profitability, growth, and resilience, despite the pandemic and the regional instability. They have also rewarded their shareholders with dividends, while pursuing their strategic goals and opportunities. These companies represent the best of the Georgian economy, and they have the potential to achieve even more in the future.
