Georgian Banks: game on – banks are cheap (Bank of Georgia upgraded to BUY, TBC Bank Group stays BUY)
The Georgian banks have de-rated significantly, and are down 30% ytd due to the war in Ukraine and the worsening global backdrop. However, the GEL is stable, and Georgia seems to be muddling through. TBC and the IMF are expecting the economy to grow in a range of 3-5% in 2022E. NBG’s rapid growth estimates show that the economy grew by 14% in 1Q22. The banks have better margins and capital as well. This could turn out to be a backdrop that affects asset prices much more than the economy or the banks. This is a desired disconnect. We believe these are decent entry levels, with potential 8% dividend sweeteners. We have upgraded Bank of Georgia (BGEO) to BUY (new PT: GBP 17.2/share); while we keep TBC Bank Group (TBC) as a BUY (new PT: GBP 14.6/share). In this report, we take a dive deep into Georgia’s economic ties with Russia, as well as the banks’ NIM and COR outlooks.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.