Bank of Georgia Group PLC (LSE:BGEO) soared 13% after it launched a share buyback of 62 million Georgian lari (GEL), around £18.7 million, alongside above-consensus second-quarter profit.
The bank said the programme will start later in the year and end no later than the company's AGM, expected to be in May 2024, as it targets a dividend/share buyback payout ratio in the range of 30-50% of annual profits.
The news came as the bank reported first-half net interest income of GEL767.8 million, up 39% from GEL552.6 million the year before, while pre-tax profit jumped to GEL807.5 million, up 41% from GEL573.7 million.
Operating income totalled GEL1.23 billion, up from GEL890.6 million the year before, while a first-half dividend of GEL3.06 per share was paid.
The bank said its growth outlook for 2023 is underpinned by resilient external inflows while domestic inflation is declining amid strong domestic demand.
Peel Hunt noted profit was ahead of consensus and should provide the basis for estimate upgrades.
The broker said the results appear "strong and clean," continuing the company's positive momentum, whilst the valuation multiples "allow for substantial potential upside".