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8.0   Financial & capital markets
Georgia - Commercial banks lead Aug-18 Jun-18 Mar-18 Dec- 2017 Dec-2016 indicators (as of)
Interest income (GEL mn)
281.9 274.15 269.49 275.70 227.44
Net profit / loss (GEL mn)
513.4 410.4 234.2 869.80 679.11
Bank assets (GEL mn)
37,103.22 35,665.08 34,272.35 34,593.50 30,149.32
Bank deposits (GEL mn)
16,390.19 15,563.09 15,346.53 15,717.54 13,662.0
Bank loans (GEL mn)
23,700.87 22,388.53 21,708.98 21,761.90 18,512.30
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
The Georgian banking sector is dominated by TBC Bank and Bank of Georgia, two lenders that are listed on the London Stock Exchange and that, together, account for two thirds of total banking assets.   In total, 16 commercial banks operate in the country, after TBC Bank merged with Bank Republic, the country's fifth largest lender, last October. The sector has performed well in recent years, but financial services penetration in the market remains modest.
The net aggregated profits of Georgian banks contracted by 8.5% y/y to GEL513mn (€170mn) in January-August as provisions for loan losses were 3.3 times larger.
In 2017, the net profit of Georgia’s commercial banks reached GEL 870mn, up 28% y/y or GEL 191mn higher compared to 2016, according to the National Bank of Georgia.   Total revenues of the banking system for the period was GEL 3.58bn, including 77% from interest income (GEL 2.76bn) and 23% from interest-free income (GEL 821mn). Commercial banks received GEL 368mn from commission fees, GEL 202mn from currency sales-purchase operations and GEL 77mn from fines.
32  GEORGIA Country Report   November 2018    www.intellinews.com


































































































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