- BGEO reported Thursday higher profits and revenues supported by strong economic growth in Georgia, and said that it has not 'material direct exposure to Turkey.

For the three months to 30 June, profit before tax totalled GEL120.0m, up 31.0% from the same period last year, revenue rose 7.5% to GEL253.52m and adjusted return on assets employed came it at 25.2%, up 110 basis point from a year earlier.

Performance was weighed down, however, by a number of one-off items, largely related to the demerger and also a change to the Georgian corporate taxation model.

BGEO Group completed its demerger earlier this year, separating its banking business, Bank of Georgia Group PLC, and an investment business, Georgia Capital PLC separate into two London-listed businesses.

Retail Banking revenue reached GEL 179.2m in second quarter 2018, up 26.4% year-on-year.

'We anticipate growth rates in the unsecured consumer sector to moderate, while expecting continued solid growth in mortgage and SME lending. Overall, our expectations for the full year customer lending growth of 15-20% remain unchanged,' said Chief executive Irakli Gilaur.

'The Bank has no material direct exposure to Turkey, while the indirect exposure is limited to GEL 180.6 million tender, performance and advance guarantees, related to road construction projects in Georgia that are cash funded by the Georgian Government and operated by Turkish contractors.'

At 8:36am: [LON:BGEO] BGEO Group share price was +1.2p at 1671.2p

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