Page 39 - GEORptDec21

The auction was the ninth this year, with a total of $332.9mn sold in 2021. The previous, eighth auction was held on August 20, when the NBG sold $30mn. The lari then traded at 3.1323 per USD.
8.0 Financial & capital markets
Georgia - Commercial banks lead Q3 2021 Q2 2021 Q1 2021 2020 2019 2018 2017 2016 indicators (end of period)
Interest income (GEL mn)
404.22 384.79 380.63 381.66 339.90 296.86 275.70 227.44
Net profit / loss (GEL mn)
171.16 294.63 145.49 100.73 132.02 119.10 152.56 112.52
Bank assets (GEL mn)
58,572.80 55,980.68 58,154.42 56,870.98 47,183.37 39,682.98 34,593.50 30,149.32
Bank deposits (GEL mn)
28,795.78 26,704.69 28,198.20 26,647.00 21,135.84 17,907.06 15,514.39 13,514.88
Bank loans (GEL mn)
40,145.13 38,398.41 38,231.78 37,374.29 31,078.64 25,918.14 21,761.90 18,512.30
ROA (%)
4.1% 4.0% 2.8% -2.5% 2.5% 3.0% 3.1% 3.1%
ROE (%)
37.3% 37.3% 27.8% -20% 20.3% 23.3% 23.3% 22.1%
CAR (%)
19.1% 19.2% 18.2% 17.6% 19.0% 18.4% 19.1% 15.1%
NPL to total gross loans (%)
Source: National Bank of Georgia
6.0% 6.7% 8.3% 8.2% 4.4% 5.5% 5.9% 7.3%
8.1 Bank sector overview 8.1.1 Earnings
Georgian banks’ profits 38% larger than before crisis
The aggregated net profit of Georgia’s banking system in January-October rose by 38% compared to the same period in 2019, to GEL 1.76bn ($567mn), according to data released by the central bank.
In the same period last year, the banks reported GEL85mn net losses, caused by the mandatory provisions set aside for the expected deterioration in the quality of their loans. Since then part of the provisions was released – which contributed to the robust profits in 2021. The increase in this year’s profit was thus partly an effect of the one-off financial incomes, just as last year’s losses reflected the build-up of provisions.
The annualised return on average assets for Georgia’s entire banking system improved to 3.7% in the first 10 months this year, according to bne IntelliNews calculations, compared to -0.2% in the same period of 2020 and 2.1% in 2019.
As regards the net interest income reported by the Georgian banks in January-October, it increased by 37% y/y and by 33% compared to the same period of 2019 to GEL2.98bn ($962mn). The annualised net interest to assets ratio thus improved to 6.2% this year, compared to 5.3% in the same period last year. However, the ratio dropped from 6.5% in the first 10 months of 2019.
*annualised return on assets ratios are calculated based on 9M average
39 GEORGIA Country Report December 2021 www.intellinews.com