Page 42 - GEORptSep21

7.1 FX auction
Georgia central bank sells $30mn
The National Bank of Georgia (NBG) sold $30mn in a foreign exchange auction on August 20.
According to the NBG, the weighted average exchange rate amounted to GEL 3.1249 per USD. The official exchange rate for August 20 stood at 3.1323, and at 3.1257 for August 21.
The auction was the eighth this year, with a total of $272.9mn sold in 2021. The previous, and 7th, auction was held on April 22, when the NBG sold $30mn. The Georgian lari then traded at 3.4521 per USD.
8.0 Financial & capital markets
Georgia - Commercial banks lead Jun 2021 2020 2019 2018 2017 2016 indicators (end of period)
Interest income (GEL mn)
384.79 381.66 339.90 296.86 275.70 227.44
Net profit / loss (GEL mn)
295.63 100.73 132.02 119.10 152.56 112.52
Bank assets (GEL mn)
55,980.68 56,870.98 47,183.37 39,682.98 34,593.50 30,149.32
Bank deposits (GEL mn)
26,704.69 26,647.00 21,135.84 17,907.06 15,514.39 13,514.88
Bank loans (GEL mn)
38,398.41 37,374.29 31,078.64 25,918.14 21,761.90 18,512.30
ROA (%)
4.0% -2.5% 2.5% 3.0% 3.1% 3.1%
ROE (%)
37.3% -20% 20.3% 23.3% 23.3% 22.1%
CAR (%)
19.2% 17.6% 19.0% 18.4% 19.1% 15.1%
NPL to total gross loans (%)
6.7% 8.2% 4.4% 5.5% 5.9% 7.3%
Source: National Bank of Georgia
8.1 Bank sector overview 8.1.1 Earnings
Georgia’s banks boast biggest profits ever in June
The aggregated net profit of Georgia's banks more than doubled in June compared to the same month last year, to Georgian lari (GEL) 295mn ($92mn) - it amounted to the biggest profit ever recorded by the banks in the country’s history.
In the second quarter of the year, the profit was GEL648mn (over $200mn), 140% up y/y, and in the ytd period of January-June the aggregated profits exceeded GEL1bn (over $300mn) - compared to GEL477bn losses in the first half of last year when the Georgian banks set aside GEL1.2bn in provisions for potential asset losses as a result of the crisis that was emerging.
The gross profit plus provisioning cost - a metric that indicates the operational profit of banks not impacted by the cost of provisioning - increased by 27% y/y
42 GEORGIA Country Report September 2021 www.intellinews.com