Page 36 - GEORptDec19

Co-founder executives of Georgia’s TBC Bank Group charged with money laundering
other Georgian bank: GEL268.2mn (2.4% up y/y). This put its annualised ROA at 2.0%.
Bank of Georgia's assets amounted to GEL16.2bn (€5.5bn). Revenues amounted to GEL1.16bn and net profit stood at GEL262mn, 42% up y/y. This resulted in a 2.2% annualised ROA.
By assets, the third biggest bank is Liberty (GEL2.07bn ). In the first nine months of 2019, Liberty received GEL224.7mn in revenues and posted a net profit of GEL16.1mn. The bank of Uta Ivanishvili, the son of Georgian ruling party chairman Bidzina Ivanishvili, Cartu Bank, is seventh in terms of assets and fourth by net profit. The bank generated a net profit of GEL18.8mn (down 55% on an annual basis).
Also as of the end of the first nine months of 2019, there are only two banks at risk in the country, according to Georgia’s central bank. It said these were Pasha Bank and Silk Road Bank.
Meanwhile, Georgian prosecutors on July 24 charged TBC Bank founders Mamuka Khazaradze and Badri Japaridze, former chairman and deputy chairman of TBC Bank Group, with laundering $16.75mn in 2007-2008.
The group issued a release explaining that the two, as non-executives, were not involved in its day-to-day management. There has been no suggestion of any charges being brought against TBC Bank Group, TBC Bank or any other member of the group, the​ ​press release​ ​added.
Khazaradze said that the charge “aims to stop the construction of Anaklia Deep Sea Port,” a $2.5bn project that is Georgia’s flagship infrastructure investment, Agenda.ge​ ​reported​. ​It is being developed by TBC Bank in partnership with US partners.
The two bankers said that the money laundering charges were absurd and damaged prospects for attracting investment to the country.
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.
As of the end of the first nine months of the year, TBC was the market leader in Georgian banking with assets of GEL17.7bn (nearly €6bn) . TBC earned
36​ GEORGIA Country Report​ December 2019 ​ ​www.intellinews.com