Page 31 - GEORptSep19

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 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 project and the state,” Khazaradze said on July 24, after he was officially charged with money laundering.
The two bankers said that the money laundering charges were absurd and damaged prospects for attracting investment to the country.
Khazaradze represents TBC in the Anaklia Development Consortium (ADC). ADC faces problems in raising $600mn from international financial institutions for first-phase financing. It has accused the government of actions that have hindered the process. Bidzina Ivanishvili, the billionaire head of ruling party Georgian Dream and an ex-PM of Georgia , is often accused of wanting to take over the project .
“Ivanishvili does not want to see foreign investors. He does not want competition. It's very dangerous for the country. Only Bidzina Ivanishvili's friends come here,” Fadi Asli, chairman of the International Chamber of Commerce (ICC) in Georgia said to journalists.
Tbilisi-based TBC Bank dominates the banking industry in Georgia with main competitor Bank of Georgia. It has named senior independent director Nikoloz Enukidze as its new chairman.
8.1.1 Earnings
Profits of Georgian banks down 10% y/y in H1
In the first half of 2019, profits dropped for seven out of 15 commercial banks registered in Georgia and the aggregate net profit of the banking system decreased by 10% year on year to GEL361mn ($124mn), according to a report of the National Bank of Georgia. Some 96% of the profits was realised by the two largest banks: TBC Bank and Bank of Georgia.
According to consolidated statistics published by NBG, the total income of Georgian banks grew by 6.3% in the first six months of the year to GEL2.10bn, while expenses increased by 16.6% y/y to GEL 1.69bn.
According to reports, in the first two quarters of 2019 TBC Bank had the highest profit, GEL153.05, during the reporting period. It was followed by Bank of Georgia, which reported a net profit of GEL148.45bn.
31 GEORGIA Country Report September 2019 www.intellinews.com