The merger is expected to grow the company’s fee income, improve the bank’s return on average equity and reduce concentration risk in the corporate lending portfolio.
Commenting on the merger, BGEO said: "The merged business will leverage our superior knowledge and capital markets capabilities in the Georgian and neighbouring markets both in terms of reach and the expertise that we have accumulated during the past several years through our corporate advisory, research and brokerage practices united under Galt&Taggart – a wholly owned subsidiary of Bank of Georgia at the forefront of capital markets development in the country."
BGEO will report corporate investment banking business results separately starting in the first quarter 2016.
Current BGEO CFO and deputy CEO of the investment management business Archil Gachechiladze will lead the merged business.
BGEO CEO Irakli Gilauri said: "I am confident that Archil, who has effectively led both the corporate banking and investment management businesses in recent years, is best suited to successfully integrate these businesses to facilitate our continued commitment to growing Bank of Georgia’s strong corporate banking and advisory franchise."
The Bank of Georgia has a market share of 34.7% based on total assets, 32.7% based on total loans and 31.9% based on client deposits.
The banking business offers a broad range of retail banking, corporate banking, investment management and P&C insurance services.
As of 30 September 2015, the bank served approximately 1.9 million client accounts through 260 branches, 703 ATMs, 2,354 Express pay self-service terminals and a full-service remote banking
platform and a modern call center.
Image: Bank of Georgia operates 260 branches. Photo: courtesy of puncturesandpanniers / Wikimedia Commons.
