Page 42 - GEORptApr21

Georgia’s biggest lender TBC reports 2020 profits under IFRS
GEORGIA'S BANKING SYSTEM 2020
GEL
TBC
Bang of Georgia
Credo Bank
Basis Bank
ProCredit Bank
Ish Bank Georgia
yourself," said Archil Kontselidze, CEO of VTB Bank, in response to questions from BM.GE.
According to the 2020 financial results submitted to the National Bank of Georgia, VTB Bank had a loss of GEL14.8mn, which was related to the creation of a reserve of GEL40mn for expected credit losses.
Kontselidze said that the bank did not have a liquidity problem. "Liquidity is the key in all crises. The banking system and our bank have not a liquidity problem. As for profitability, people lost wages, companies stopped operating and the bank itself suffered, including VTB Bank [in this instance]," said Kontselidze
"We hope that the reserve we made, which in the case of our bank was a loss reserve of up to GEL40mn, [will cover the non-performing loans that occurred during this period]. It depends on how quickly we get out of the pandemic period, how fast the economy and tourism start working," Kontselidze reportedly added.
Georgia’s largest lender TBC Bank has announced a 2020 profit under international financial accounting standards. The LSE-listed bank said its profit fell to Georgian lari (GEL) 322.5mn ($98mn) from GEL540.3mn a year earlier.
The bank’s return on average equity (ROE) stood at 11.7%, roughly half the 22.9% seen in 2019.
The profitability ratio dropped so distinctly mainly because of provisions set aside for loan losses. ROE before expected credit loss allowances stood at 24.7% compared to 26.8% in 2019.
Lending continued at a robust pace in 2020.
As a result, the bank’s total assets rose by 23.0% y/y to GEL22.56bn.
Gross loans and advances to customers stood at GEL15.2bn, up by 20.0% y/y or 8.7% on a constant currency basis.
Under local accounting standards, net profit last year reached only GEL123mn, according to data published earlier.
Profit/Loss GEL
123,180,649
57,108,880
13,950,614
5,972,349
3,534,386
2,797,749
Assets GEL
21,727,528,822
20,221,951,741
1,395,024,280
2,006,267,655
1,896,793,723
327,317,833
Profit/Loss $ mn
37.3
17.3
4.2
1.8
1.1
0.8
Assets $mn
6,584
6,128
423
608
575
99
ROA
0.57%
0.28%
1.00%
0.30%
0.19%
0.85%
42 GEORGIA Country Report April 2021 www.intellinews.com