Page 44 - GEORptJun22

TBC Bank announces $76mnn net income for Q1
TBC Bank in Georgia announced its 1Q22 results on 18 May, showing the bank's net income amounted to GEL224mn ($76mn), up by 46% y/y, while the return on equity stood at 24.3%, compared to 20.3% in 2021. Operating income was GEL413mn because of the low base in 2021, caused by the partial lock-down in January and mid-February 2021.
"Our strong capital generation enables the board to recommend a final dividend for 2021 of GEL2.16/share at the upcoming 2022 AGM, which together with the interim dividend paid in September 2021, will equal a total dividend of GEL3.66/share", the bank said. The total dividend pay-out ratio for 2021 will be 25% in line with mid-term guidance of 25-35%.
The bank expects strong GDP growth in 2022 at around 5.5%, citing "the resilience of the Georgian economy" amid the war in Ukraine. The recovery started in the 2Q21, reaching 28.9% growth in real GDP, and gradually slowing down to 8.8% in Q421. "Despite the adverse impact of the war in Ukraine, this growth momentum continued in the beginning of 2022, only partially driven by the low base effect a year ago," the bank said. According to preliminary estimates of the National Statistics Office of Georgia, the Georgian economy expanded by 14.4% y/y in Q1, with a solid increase of 10.6% y/y in March. Bank credit increased by 18% y/y by the end of 1Q22, compared to 18.2% by the end of 4Q21. In terms of segments, retail lending growth accelerated the most, increasing from 18% at the end of 4Q21 to 19.7% at the end of 1Q22. MSME (micro, small and medium-sized enterprise) lending also grew from 22.3% at the end of 1Q21 to 22.5%, while in the same period corporate lending slowed by 2.8 pp, amounting to 12.8%.
8.2 Central Bank policy rate
National Bank of Georgia keeps refinancing rate at 11%
The Monetary Policy Committee of the National Bank of Georgia (NBG) at its meeting on May 11 kept the refinancing rate at 11%. “Increased inflation and inflationary risks again remain the global challenge of the last period,” the NBG said in a statement.
According to the National Bank, sanctions imposed on Russia because of its war against Ukraine and supply restrictions have led to a significant increase in prices for certain categories of goods on world markets. At the same time, according to the NBG, the recent strengthening of the lari contributed to slowing down inflation in relation to imported goods. The bank said that the increase in prices on the world market affected Georgia, and inflation remained at the level of 12.8%, and if not for the shock, it was expected to decline rapidly.
44 GEORGIA Country Report June 2022 www.intellinews.com