Best bank: Bank of Georgia
While political protests in Tbilisi introduced some additional risk to the Georgian economy last year, economic growth remained robust thanks to strong domestic demand and capital inflows from tourism and exports.
The economy’s strength fed through to the banking sector, helping Bank of Georgia deliver a market-leading set of results for the year, making it the country’s best bank.
The bank delivered a 21% year-on-year rise in profit to GeL1.4 billion ($493 million) – a record high – with its return on equity at 29.9% and return on assets at 4.7%.
These returns, enhanced by higher interest rates, came on the back of 20% growth in the bank’s total net loan book to GeL19.5 billion across retail, SME and corporate banking.
Importantly, its ratio of non-performing loans to gross loans fell to 2.3% at the end of last year from 2.7% a year earlier.
In addition to excellent financial performance, the bank also delivered strong numbers in other areas, especially in digital banking, where it recorded 21% year-on-year growth in digital monthly active users to around 1.4 million; a new high. It also launched a series of product enhancements, ranging from a buy-now-pay-later service and instant fund transfers to e-wallets for young customers and a digital deposit account for businesses.
Best investment bank: Galt & Taggart
In investment banking, Galt & Taggart – wholly owned by Bank of Georgia – also had a stellar year in 2023. It more than doubled its client base to 48,000, demonstrated leadership in the bond market and in M&A, and boosted revenues by 239% to GeL43 million.
Some of the standout achievements included being the exclusive sell-side adviser on the largest M&A deal in the country’s manufacturing sector – valued at over $190 million – and lead arranging 16 bond issues worth a total of $303 million, making it the number one investment bank for corporate and international financial institutions issuance.
The firm was also the only investment bank to lead arrange euro-denominated bonds in Georgia – it executed three transactions for a combined €16 million – and it also introduced the first sustainability-linked bond programme and first so-called gender bonds in Georgia.
Best digital bank: TBC Bank
TBC Bank saw significant digital growth last year. Clients onboarded grew by 6.2% year on year, bringing the total volume of digital customers to 1,905,446. Mobile app downloads increased by 12.5% to 1,313,414 in 2023. The volume of transactions completed digitally reached 148,668,728, up by 27%.
The bank reduced decision times and revamped pre-approved credit limits, enabling users to view their limits within the app. The bank’s digital loan adoption share grew from 20% to 45%.
TBC Bank also integrated its ERTGULI loyalty programme into its app, extending access to all retail mobile bank users. This allows all card users to earn and manage loyalty points directly within the app.
The bank also introduced a dedicated investment platform, which attracted 11,500 monthly active users and generated a digital investment portfolio of $4.3 million in its first year.
Best bank for corporate responsibility: Bank of Georgia
Bank of Georgia has prioritized support for education in Georgia. It has funded over 40 projects, providing essential educational facilities and resources.
A key initiative was the launch of the STEM (science, technology, engineering and mathematics) Online School in collaboration with Tbilisi Public School No.199 of Physics and Mathematics.
Another project, Ideateka, established multifunctional educational spaces equipped with extensive libraries, computers and STEM resources in rural areas of the country.
The bank’s international scholarship programmes, including Fulbright, Chevening and Miami Ad, supported 34 students in their studies at institutions in the US and UK. In addition, a local scholarship programme offered full or partial support to students attending 15 domestic universities.
Best bank for corporates: TBC Bank
TBC Bank has improved efficiency through digital initiatives and has also been heavily involved in developing public transportation infrastructure.
The bank has introduced electronic signatures across its transaction banking services. By the end of 2023, 90% of cash management agreements, 70% of deposit agreements and 54% of FX product agreements were signed electronically.
TBC Bank also introduced a new treasury module integrating all treasury products. This enhances flexibility and speed, and activates preferential currency rates, ensuring instant trade execution within given limits.
The bank also played a pivotal role in a major public transportation project in Tbilisi. It worked on the acquisition of 15 compressed natural gas buses for public transportation in a €7.14 million deal. This was a significant public tender, contributing to the modernization and sustainability of the city’s public transport infrastructure. The project was partially covered within the framework of the European Bank for Reconstruction and Development’s Trade Facilitation programme.
