Expenses were also pushed higher due to the increase in the number of senior managers eligible for the group's share based compensation, or non-cash bonus.
In a statement,
Revenue increased by 3.2% to GEL144.2 million, driven by increases in net interest income, net fee and commission income and net healthcare revenue, which together more than offset declines in net insurance revenue and other operating non-interest income.
However, operating expenses rose by 15% to GEL64.3 million, with higher salaries and other employee benefits, up 14%, and general and administrative expenses, up 22%, driving the increase.
"The increase in expenses on year-on-year basis was a result of an increase in costs associated with the bank's non-banking businesses, particularly its healthcare and real estate businesses," the holding company said in a statement.
"The bank's healthcare business significantly increased its headcount following several acquisitions, while the respective post-acquisition synergies have not yet fully been realised," it said.
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