Page 42 - GEORptOct22

8.0 Financial & capital markets
Georgia - Commercial banks June 2022 2021 2020 2019 2018 2017 2016 lead indicators (end of period)
Interest income (GEL mn)
459.32 446.22 381.66 339.90 296.86 275.70 227.44
Net profit / loss (GEL mn)
154.15 114.01 100.73 132.02 119.10 152.56 112.52
Bank assets (GEL mn)
64,185.4 60,568.5 56,871.0 47,183.4 39,682.0 34,593.5 30,149.3
Bank deposits (GEL mn)
38,265.7 30,303.9 26,647.0 21,135.8 17,907.1 15,514.4 13,514.5
Bank loans (GEL mn)
42,804.5 42,189.4 37,374.3 31,078.6 25,918.1 21,761.9 18,512.3
ROA (%)
3.1% 3.9% -2.5% 2.5% 3.0% 3.1% 3.1% (2Q22)
ROE (%)
24.9% 34.4% -20% 20.3% 23.3% 23.3% 22.1% (2Q22)
CAR (%)
20.3% 19.6% 17.6% 19.0% 18.4% 19.1% 15.1% (2Q22)
NPL to total gross loans (%)
Source: National Bank of Georgia
4.7% 5.1% 8.2% 4.4% 5.5% 5.9% 7.3% (2Q22)
8.1 Bank sector overview
Bank rankings in Georgia by profit in 1H22
Georgian commercial banks have published their financial reports for the first half of 2022. According to the data, the volume of assets in the banking sector amounted to GEL64.1bn ($23.8bn). It is a 15% y/y increase.
The credit portfolio amounted to GEL43.6bn, a 12% y/y growth. The banking sector's net profit in 1H22 was GEL838mn. The overall profit of the sector would be higher if VTB Bank Georgia hadn't suffer a GEL91.5mn loss.
With GEL430.6mn in net profit, the first in the profit ranking is TBC Bank, followed by Bank of Georgia (GEL368.7mn). These two make up 95% of the total commercial bank net profit.
8.1.1 Earnings
Georgia’s banks post impressive 1H22 annualised return on equity
Georgian banks recorded enough profitability to post an impressive 1H22 annualised return on equity (ROE) ratio of 21% (down from 34% in 1H21) while the annualised return on assets (ROA) ratio was 2.7%, according to data published by the National Bank of Georgia (NBG).
In all, the banks reported an aggregated net profit of GEL836mn (€279mn) in the first half, down 21% y/y.
The banking system's average assets in January-May increased by 7.4% y/y to GEL61.78bn while the average equity for the same period surged by 29.5% y/y to GEL8.11bn.
42 GEORGIA Country Report October 2022 www.intellinews.com