What does your bank focus on: retail or investment banking?
Every single customer is very important and valuable for JSC Capital Bank.We are focused on universalism and flexibility;the bank’s mission is to offer and provide our private & corporate clients universal and diverse banking products.Also the bank has high hopes for the development of e-commerce and has significantly succeeded during the last months in this field.
How has the economy developed since 2003 when your bank was established? What was the size of the economy then? How much has the economy grown since then?
Over the past 10 years, Georgia has seen a remarkable amount of economic progress. Twenty years ago, it was one of the Soviet republics, and struggled economically after the break-up of the Soviet Union. Its economic turnaround came with the changes beginning from 2004.
The impressive rise of Georgia’s economic freedom has been propelled by broad-based score improvements in such critical areas as regulatory efficiency and market openness. Notable structural reforms have included trade liberalisation, privatisation, implementation of competitive flat tax rates, and modernisation of the regulatory environment. With the success in keeping inflation low, greater monetary stability has been achieved.
How has your journey been during this time?
JSC Capital Bank is a relatively new financial institution in the Georgian financial sector. The bank has recently undergone a re-branding process and received an award from International Finance Magazine as the “Best Re-engineering and Re-branding Bank in Georgia in 2014”. We have ambitious goals and plans for the future.
How many branches do you have now? How many employees?
The year 2014 has been very important for JSC Capital Bank, as the full process of re-branding was carried out. Technologies appropriate for modern standards of services were introduced and the bank offered its clients services based on individual approach. We offer online/distance services, loans, deposits, money transfer and other bank products.
Today, we have about one hundred employees. Currently, we have three service centers in Tbilisi, of which one is at Tbilisi International Airport. For the next year, plans are on to open a new service centre in Batumi, which happens to be the most popular sea resort in Georgia.
What is the size of your retail banking portfolio & what is the size of your investment portfolio?
Our goal is to get 1% of total banking sector assets by 2020 and total portfolio should be 400 ml.Gel by that time (approximately $200 million). According to those figures, corporate and private portfolios should be divided 50/50%.
Which sectors in Georgia are witnessing good growth? Which sectors are showing signs of potential for the future?
The country’s main economic activities include agriculture, manufacturing, wholesale and retail trade, transport & communication, and construction. In 2014, the largest contributor to the GDP was agriculture, making up 18% of the total GDP. Likewise, for retail and wholesale,the figure stood at 14%, while transport & communications made up another 14% of the economy as a whole. The share of manufacturing was 9%.
In the long term, for the economy as a whole, trade, tourism, manufacturing and construction are expected to be the main drivers of sustained growth. The growth in trade, especially, will bolster the SME sector, as will growth in tourism, made up of small restaurants and hotels
How do you plan to take advantage of this potential?
JSC Capital Bank tries to finance and take part in many significant and important state and private projects, which are aimed at developing the country’s economy and make it mutually beneficial for both the private sector as well as the whole of Georgia.
In 2015, we are going to open new service centers in different regions, launch new products for specially targeted audiences and to carry out a huge PR and marketing campaign.