LONDON (ShareCast) - (ShareCast News) - BGEO Group said on Tuesday that it has merged its corporate banking and investment management businesses into a corporate investment banking business.
BGEO, which is the holding company for Bank of Georgia, said combining the businesses will help it to grow its fee income, improve the bank's return on average equity and reduce concentration risk in the corporate lending portfolio.

"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."

To reflect the change, the group will report CIB business results separately starting in the first quarter 2016.

Current group chief financial officer and deputy chief executive of the investment management business Archil Gachechiladze will lead the merged business, replacing Sulkhan Gvalia, deputy CEO of corporate banking, who is leaving with immediate effect.

Group 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."

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