Dutch investment group acquires Georgia's third largest bank from local venture

By bne IntelliNews October 18, 2017

Liberty Bank, the third largest lender in Georgia, announced on October 13 that a Netherlands-based company, the European Financial Group, has purchased 74.64% of its equity. No further details about the transaction were revealed. The ultimate beneficiaries of the new owner are American citizens Igor Alexeev and Irakli Rukhadze and Ben Marson, a British citizen.

Previously, a local venture owned by former Georgian Prime Minister Lado Gurgenidze and Romanian businessman Dinu Patriciu owned 91.2% of the shares in the bank. Liberty Bank is the largest of the 17 small banks in Georgia, accounting for a market share of 5.6%. TBC Bank and Bank of Georgia, the country's largest lenders, account for two-thirds of the market in terms of loans and deposits.

According to its half-year financial results, Liberty Bank experienced a 29.7% y/y growth in net income to GEL21mn (7.43mn) and a 22.1% y/y growth in revenue, in line with the generally positive performance of the entire sector.

According to the statement of its Q2/H1 results, the bank has experienced a significant turnaround, going from a nearly bankrupt institution with negligible equity of under GEL15mn and negative regulatory capital to a bank with equity worth over GEL170mn and a return on assets that has been consistently above 20%. 

Related Articles

Iran executes the “Sultan of Sovereigns”

Iran has executed a currency trader known as the "Sultan of Sovereigns" and an accomplice by hanging. Vahid Mazloumin and another member of his currency trading network both received the death ... more

Governor of Latvia’s central bank reportedly subject to another bribery probe

The governor of Latvijas Banka Edgars Rimsevics is subject to another investigation by Latvia’s anti-corruption bureau KNAB, focussing on bribery and submitting false information to the US ... more

Goldman Sachs buys 4.1% of recently launched Astana International Exchange

Goldman Sachs has acquired 4.1% of Kazakhstan’s recently launched Astana International Exchange (AIX), according to Forbes. Investment banking and financial services company Goldman Sachs also ... more