Page 29 - GEORptAug18

8.0 Financial & capital markets
Georgia - Commercial banks lead Jun-18 Mar-18 Dec- 2017 Dec-2016 indicators
Interest income (GEL mn)
274.15 269.49 275.70 227.44
Net profit / loss (GEL mn)
47.93 75.68 869.80 679.11
Bank assets (GEL mn)
35,665.08 34,272.35 34,593.50 30,149.32
Bank deposits (GEL mn)
15,563.09 15,346.53 15,717.54 13,662.0
Bank loans (GEL mn)
22,261.97 21,342.89 21,369.76 18,100.89
ROA (%)
3.0% 3.0% 3.1% 3.1%
ROE (%)
22.6% 22.6% 23.3% 22.1%
CAR (%)
18.9% 19.0% 19.1% 15.1%
NPL (%)
2.4% 2.4% 2.8% 3.4%
Source: National Bank of Georgia
8.1 Bank sector overview
Georgia’s banks assets up 1% m/m in May
NBG approves code of ethics for banking sector
The total assets of Georgia’s 16 commercial banks rose 1.0% in May compared to the previous month to reach GEL35.3bn, the Georgian central bank said.
The banking sector's own funds (equity capital) amounted to GEL4.6bn, which makes up 13.1% of the commercial banks’ total assets.
Meanwhile, the volume of lending increased by 1.1% m/m in May to GEL21.9bn as of June 1, the central bank said in a series of updates on the banking sector.
The volume of loans in Georgian lari was up 1.5% to GEL150.3mn, while loans in foreign currencies grew by a more modest 0.7%. Excluding the exchange rate effect loans in foreign currency grew by just 0.3%.
The “larization ratio” for total loans stood at 44.92% on June 1, up by 0.19 of a percentage point compared to May 1.
The volume of deposits held by Georgian banks was up 0.7% to GEL20.0bn.
Meanwhile, the National Bank of Georgia has approved a code of ethics for the country’s commercial banks, the central bank said on July 12.
The code is intended to establish internationally recognised standards of ethics and banking in the sector, with the aim of boosting confidence among the public and investors, and ensuring the banking sector’s stable and efficient operation, the National Bank of Georgia said.
It was drawn up based on the principles of ethics and professional behaviour standards set out by the Institute of Certified Financial Analysts (CFA).
The draft code was published in January, after which stakeholders had time to comment before the final version was adopted by the central bank.
29 GEORGIA Country Report August 2018 www.intellinews.com