Page 41 - GEORptJul22

contributed to the robust profits in 2021. The increase in this year’s profit was thus partly an effect of the one-off financial incomes, just as last year’s losses reflected the build-up of provisions.
The annualised return on average assets for Georgia’s entire banking system improved to 3.7% in the first 10 months this year, according to bne IntelliNews calculations, compared to -0.2% in the same period of 2020 and 2.1% in 2019.
As regards the net interest income reported by the Georgian banks in January-October, it increased by 37% y/y and by 33% compared to the same period of 2019 to GEL2.98bn ($962mn). The annualised net interest to assets ratio thus improved to 6.2% this year, compared to 5.3% in the same period last year. However, the ratio dropped from 6.5% in the first 10 months of 2019.
*annualised return on assets ratios are calculated based on 9M average assets for each year, as the assets at the end of October will be released on November 25.
8.1.2 Loans
Georgian bank equity 13.2% of assets in March
The Georgian banking sector's equity capital equals GEL8.13bn, which makes up 13.2 percent of the commercial banks' total assets, the latest data from the National Bank of Georgia shows.
Commercial banks in Georgia loaned GEL43.32bn ($14bn) and received deposits of GEL37.10bn ($12bn) in March, NBG reported.
The volume of loans increased by GEL67.52mn ($22mn), or by 0.16 percent, in March compared to the previous month, while the number of deposits decreased by GEL531.63mn ($175mn), or 1.41 percent, month-on-month.
In March 2022, the sum of deposits made for a predetermined period of time decreased by GEL1.02bn, while on-demand deposits, which allow for flexible withdrawals, increased by GEL488.62mn, the NBG announced.
Loans taken out in the national currency increased by GEL281.95mn, while loans denominated in foreign currency decreased by GEL214.43mn.
The data of the central bank also shows the total volume of national currency-denominated loans issued by commercial banks to resident legal entities increased by 0.24 percent compared to the previous month, and amounted to GEL6.58bn in March. Foreign currency-denominated loans decreased by 0.81 percent and totaled GEL13.70 bn.
41 GEORGIA Country Report July 2022 www.intellinews.com