Page 37 - GEORptFeb22

is a problem for tourism and a discomfort for the population.”
Some energy experts, however, criticised the authorities and the company for placing the blame on Svans and argued that they should continue to get free electricity for household use. Residents of Svaneti deserve compensation, among other things, for the many hydropower plants built in the region that produce electricity for the entire country, Davit Chipashvili, an expert with environmental think-tank Green Alternative, told the local news site Mtis Ambebi.
The authorities and Energo Pro are the ones with the responsibility to differentiate households from business users, which they could do by setting quotas, Chipashvili argued. “The government has done nothing to fix this,” he said.
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
37 GEORGIA Country Report February 2022 www.intellinews.com