Page 6 - bne IntelliNews George country report Sept 2017

ahead. According to Butskhrikidze, TBC Bank already covers 75% of the country's bankable population or two million Georgians, therefore deepening, rather than expanding its customer base is how it plans to expand its retail banking operations. And its award-winning digital banking services are part of that strategy, as is offering a diverse array of services that encompass brokerage, insurance and investment banking.
Supporting small and medium enterprises (SMEs) is another one of TBC Bank's priorities for retail banking. In partnership with its shareholder, the European Bank for Reconstruction and Development (EBRD), the Tbilisi-based lender has made several lines of credit available to SMEs and women-owned businesses over the years, as well as supporting them with advisory services. "It is important that our branch network helps us reach potential customers and businesses not just in Tbilisi, but also in the regions," Butskhrikidze says.
In January, the bank started a new programme - Startupper - offering loans, leasing and training to those looking to start their own businesses. In just a few months, 600 startups have registered to participate in a competition for businesses awards that the bank organises, according to Butskhrikidze.
London calling
Just like its main competitor, Bank of Georgia, TBC Bank listed on the London Stock Exchange in June 2014 and last August the bank acquired premium listing on the bourse. According to Sean Wade, Director of International Media and Investor Relations, the switch has meant that the bank can now appeal to a wider base of potential investors. "Outside of the traditional emerging and frontier market specialists, we are attracting investors from the UK, Europe and the US, particularly those who are keen on companies that pay high dividends," he said during an interview.
"The medium term target for dividend pay out ratio has gone from 25% to 25-35%, which is sending a very strong signal to the market that this generates a good amount of capital and that investors can expect healthy dividends," he continues.
The fact that some of the bank's older shareholders like the EBRD and Dutch development bank FMO have sold down their share or sold out completely has created more liquidity in the shares, resulting in trading volumes of £1.5 to £2mn per day. "The more liquid the shares, the more diversified the investor base, and the lower the cost of capital for the business, which is very important in a competitive and capital-constrained environment like Europe and the UK. This helps us promote not just our story, but Georgia on the whole," Wade concludes.
And Georgia is a story worth promoting, according to Butskhrikidze, the economy has finally rebounded from two years of lower-than-expected growth and is forecast to grow by over 4% this year; the number of tourists is growing in double digits - by 31.3%
6 GEORGIA Country Report September 2017 www.intellinews.com