Page 34 - GEORptMar21

8.0 Financial & capital markets
Georgia - Commercial banks lead 2020* 2019 2018 2017 2016 indicators (end of period)
Interest income (GEL mn)
381.6 339.9 296.86 275.70 227.44
Net profit / loss (GEL mn)
99.26 953.64 914.72 869.80 679.11
Bank assets (GEL mn)
56,870.98 47,183.37 39,682.98 34,593.50 30,149.32
Bank deposits (GEL mn)
23,709 21,390.76 18,273.92 15,717.54 13,662.0
Bank loans (GEL mn)
37,374.29 31,078.64 25,918.14 21,761.90 18,512.30
ROA (%)
-2.5% 2.5% 3.0% 3.1% 3.1%
ROE (%)
-20% 20.3% 23.3% 23.3% 22.1%
CAR (%)
17.6% 19.0% 18.4% 19.1% 15.1%
NPL to total gross loans (%)
2.3% 2.6% 2.6% 2.8% 3.4%
Source: National Bank of Georgia
8.1 Bank sector overview
Financial sector overview
The banking sector may end 2020 at close to zero profitability, or with a small profit, according to estimates of Vakhtang Butskhrikidze, CEO of the country’s biggest lender by assets TBC Bank.
The main determinant of losses in the financial sector in 2020 was the accumulation of provisions for the potential deterioration of loan portfolios, at the request of the GNB. In total, Georgian commercial banks have set aside GEL1.22bn ($370mn, 2.4% of banking sector assets and 3.8% of the volume of net loans as of March 2020) in the buffer, which reflects the amount of
34 GEORGIA Country Report March 2021 www.intellinews.com