Page 43 - GEORptOct22

Georgian banks earn combined net profit of $285mn in 1H22
Out of the total aggregated net profit, 95% was generated by the country’s two big banks, TBC and Bank of Georgia, according to the Georgian Banking Association.
The decrease experienced by the banking system’s profit in 1H this year was prompted by loan loss provisions (GEL64mn) compared to GEL154mn provisions reversed (hence registered as revenues) in the first half of 2021. Otherwise, the banks’ revenues increased by 17% y/y to GEL3.36bn while expenses increased by 39% y/y to GEL 2.36bn.
Notably, interest expenses increased by only 15% y/y to GEL1.30bn, while interest revenues rose by 18% y/y to GEL2.66bn.
Georgian commercial banks' financial reports indicate that 14 banks in the country together earned a net profit of GEL836mn ($285mn) in the first half of 2022.
According to the Banking Association of Georgia, 95% of these profits were attributed to the country's two largest banks, TBC and Bank of Georgia.
In 1H22, the banks received interest income of GEL2.7bn ($919mn), most of which stemmed directly from loans made to citizens and businesses.
Banks' non-interest income amounted to GEL674mn ($223mn); half of that was profit received from currency exchange operations, while commission income made up GEL287mn ($98mn).
As for expenses, the banks spent GEL1.3bn ($443mn) on servicing deposits and other funds, of which GEL733 ($250mn) was accrued directly on deposits. Non-interest expenses of the banks were GEL926mn ($315mn), including salaries paid to employees.
In total, the banks earned a profit of GEL1bn ($340mn), of which GEL164mn ($56mn) was paid as profit tax. The shareholders were left with a net profit of GEL836mn ($285mn).
43 GEORGIA Country Report October 2022 www.intellinews.com