Page 31 - GEORptAug19

8.0 Financial & capital markets
Georgia - Commercial banks lead Jan-May’ 2018 2017 2016 indicators (end of period) 19
Interest income (GEL mn)
290.08 296.86 275.70 227.44
Net profit / loss (GEL mn)
326.78 914.72 869.80 679.11
Bank assets (GEL mn)
41,223,955 39,682.98 34,593.50 30,149.32
Bank deposits (GEL mn)
19,253.19 18,273.92 15,717.54 13,662.0
Bank loans (GEL mn)
27,024.50 25,473.45 21,761.90 18,512.30
ROA (%)
2.4% 3.0% 3.1% 3.1%
ROE (%)
18.0% 23.3% 23.3% 22.1%
CAR (%)
19.1% 18.4% 19.1% 15.1%
NPL (%)
3.0% 2.6% 2.8% 3.4%
Source: National Bank of Georgia
8.1 Bank sector overview
Co-founder executives of Georgia’s TBC Bank Group charged with money laundering
Georgian prosecutors on July 24 charged TBC Bank founders Mamuka Khazaradze and Badri Japaridze, currently chairman and deputy chairman of TBC Bank Group, with laundering $16.75mn in 2007-2008.
TBC Bank Group’s shares plunged nearly 12% on the day of the news.
The group issued a release explaining that the two, as non-executives, were not involved in its day-to-day management. There has been no suggestion of any charges being brought against TBC Bank Group, TBC Bank or any other member of the group, the press release added.
Khazaradze said that the charge “aims to stop the construction of Anaklia Deep Sea Port,” a $2.5bn project that is Georgia’s flagship infrastructure investment, Agenda.ge reported . It is being developed by TBC Bank in partnership with US partners.
Apart from developments related to Anaklia port—which lately moved in the right direction when the government extended the deadline for concluding financing for the first phase of the project by six months—Khazaradze has become directly involved in politics. He announced this month that in September a “civic movement” is to be created that would express support for the anti-government protesters who have occupied Rustaveli square in Tbilisi since June 20. There has been speculation that government attacks made by Khazaradze since last year were prompted by his plans to get into politics.
“The government continues its actions against me and Japaridze which they started in January 2019. The moves by the government have affected us, as well as shareholders of TBC Bank, the implementation of the Anaklia Port
31 GEORGIA Country Report August 2019 www.intellinews.com