the cost of the shares of Georgian banks has fallen, whereas the revenues from bonds from Georgian companies have increased.
Last year did not appear to be successful for Georgian banks, whose shares have been placed on the London Stock Exchange. In particular, today’s shares of two Georgian banks (TBC and Bank of Georgia) are placed on LSE. According to National Bank of Georgia, the cost has dropped in both cases.
By the end of 2018 the cost of the shares of TBC bank came to 14.3 pound sterling; however, at the end of 2017, it was 16.6 pound sterling. Throughout the year, the highest cost of the bank’s shares were recorded in April – 18.3 GBP, after which they started to decline. The average price of TBC shares in 2017 was 16.6 GBP and in 2016 it was 14.7 GBP.
With regard to Bank of Georgia shares, by the end of 2018 their price came to 13.5 pound sterling, while at the end of 2017 it was 23.2 pound sterling. However, it is worth noting that since the end of May the bank’s shares had been placed on the London Stock Exchange independently and that before this it was being traded under the name of the BGEO group. At the start of year, the price of the shares came to 19.5 GBP, as a result of which they started to decline so that by the end of the year the price came to 13.5 GBP.
With regards to Georgian company bonds, their revenues have increased throughout the past year.
The revenue of Georgian Railway’s 10-year corporate US dollar denominated bonds was 6.5% at the end of 2018, at the end of 2017 was 4.7%. Tthroughout the year the highest revenues from the bonds were recorded in December at 6.5%, and the lowest was in January 2018 at 4.9%. The revenue of the Georgian Railway Bonds was 4.7% in 2017, 6.3% in 2016, and 7.2% in 2015.
The profitability of the 5-year corporate bonds of Georgian Oil and Gas Corporation has also increased. In 2017 it was 4.2%, but by December 2018 the revenues had grown to 6.4%. In 2017, GOGC’s bonds were 4.3% on average, while in 2016 they were 5.7%.
As for the 10 year bonds of the Georgian government, their revenues increased by 4.4%. By the end of 2017 they were 2.9%. In 2017, the average revenue of government bonds were 2.9%, in 2016 they were 4.5%, and they were 5.8% in 2015.