Foreign capital in Georgia’s banks reach 78% in May

Between April and May, 90 million GEL was returned to more than 300,000 citizens. Photo by N.Alavidze, 25 Jun 2014 - 15:34, Tbilisi,Georgia

The foreign capital portion of banks’ total assets added up to 74.7 percent in May 2014.

The National Bank of Georgia (NBG) today reported that compared with April, the total assets of Georgian commercial banks decreased (in current prices) by 0.1 billion GEL (down 0.8 percent) and constituted 17.8 billion GEL.

The banking sector’s own funds (equity capital) equaled 3 billion GEL, which made up 16.8 percent of commercial banks' total assets.

Meanwhile, at the end of May the banking sector finished with a net profit of 17.7 million GEL.

The five banks with the largest assets constituted 75.9 percent of the total share of assets in the banking sector.

Currently, Georgia’s banking industry is represented by 21 commercial banks, including 18 banks with foreign capital and the branches of two non-resident banks.

Banks' Loan Portfolio

According to NBG, the volume of lending by commercial banks, including loans to non-residents, in May 2014 increased by 54.7 million GEL (0.5 percent) compared to the previous month, exceeding 10.8 billion GEL by June 1, 2014.

The volume of loans provided in the national currency increased by 47.3 million GEL (1.1 percent) and the volume of loans in foreign currencies increased by 7.4 million GEL (0.1 percent).

Of the total volume of lending to legal entities, the biggest share falls on trade, at 44.5 percent.

The share of loans provided to the industrial sector consisted of 17.1 percent of all loans to legal entities. Eight percent went to construction.

Slightly less than 70 percent of the total volume of lending to legal entities was shared between three sectors - industry, construction and trade.

The volume of lending to resident individuals increased by 2.1 percent, or 103.8 million GEL, during May 2014 and exceeded 5.1 billion GEL by June 1, 2014.

Banks Deposits

The total volume of non-bank deposits in the country's banking sector increased 0.3 percent, or 32.4 million GEL, compared with May 1 2014, and constituted 9.9 billion GEL by June 1, 2014.

In May 2014, the volume of demand deposits increased by 0.9 percent and term deposits decreased by 0.1 percent compared to the previous month.

The dollarisation ratio of total non-bank deposits constituted 61.25 percent by June 1, 2014; decreasing by 0.62 percentage points compared to May 1, 2014.

The annual average weighted interest rate on term deposits constituted 6.0 percent. In particular, the interest rate for national currency denominated deposits was 7.7 percent and the interest rate for foreign currency denominated deposits was 5.3 percent.

The share of the US dollar in the total volume of foreign currency denominated deposits equaled 80.9 percent and the share of the Euro equaled 16.5 percent.