In 2007, profits rose 183% year on year, to GeL75.6m (€36.1m), and the bank had a 34% market share of assets and 29.7% share of deposits in the Georgian banking system.
“We view this award as recognition of the achievements of our team, who continue to lead the development of Georgia’s financial sector industry in this challenging market environment,” says Nicholas Enukidze, chairman of the supervisory board.
Its retail offering has become increasingly sophisticated. A pioneering credit card tie-up with local mobile operator Magti and a debit card that can be used on public transport, both introduced in 2007, paved the way for the launch of full mobile and internet banking services in May 2008.
The bank also continued its international expansion strategy, with the purchase of Belarusky Narodny Bank in Belarus, in May 2008. This is in addition to the bank’s subsidiary in Ukraine, Universal Bank for Development and Partnership, which launched a small and micro enterprise lending scheme and obtained Visa principal member status in July 2008.
At home in Georgia, the bank still managed to enjoy revenue growth of about 53% in the third quarter of 2008, but the conflict has inevitably led to much higher provisions for loan losses. In response, the bank moved quickly to shore up its balance sheet, entering discussions with the International Finance Corporation for a loan of up to $100m in October 2008.
