NBG outlines current banking trends in Georgia

The number and sum of deposits made in Georgian banks is growing, shows current trends published by the National Bank of Georgia (NBG).

The total amount of non-bank deposits in the country's banking sector by November 1, 2015 was 13.9 billion GEL. This was an increase of 0.4 percent or by 49.4 million GEL compared to the previous month.

In October 2015 the volume of term deposits increased by 89 million GEL while demand deposits decreased by 39.7 million GEL.

NBG noted the larisation ratio of total non-bank deposits constituted 31.14 percent by November 1, 2015. It decreased by 0.8 percentage points compared to October 1, 2015.

The annual average weighted interest rate on term deposits was 5.1 percent. In particular, the interest rate for national currency denominated deposits was 10.9 percent and the interest rate for foreign currency denominated deposits was 4.2 percent.

The share of the US dollar in the total volume of foreign currency denominated deposits equalled 83 percent of all deposits while the Euro made up 14.6 percent of all deposits.

Current condition of commercial banks’ loan portfolio

The amount of lending by commercial banks (including loans to non-residents) in October 2015 increased by 70.1 million GEL or 0.4 percent compared to the previous month and exceeded 15.7 billion GEL by November 1, 2015. The change was caused by exchange rate movements.

The sum of loans taken out in the national currency decreased by 7 million GEL (0.1 percent) and the volume of loans in foreign currencies increased by 77.1 million GEL or by 0.8 percent in the same period.

By the end of October 2015, commercial banks issued 1.8 billion GEL worth of national currency-denominated loans and 5.9 billion GEL worth of loans in foreign currency to resident legal entities.

During October 2015 the volume of lending to resident individuals increased by 0.3 percent or by 24.9 million GEL, and reached 7.2 billion GEL by November 1, 2015.

The larisation ratio for total loans constituted 35.66 percent by November 1, 2015, while the same indicator for loans issued to households was 52.25 percent.

Current condition of commercial banks’ assets

As of November 1, 2015, the banking sector in Georgia was represented by 19 commercial banks including 17 foreign-controlled banks and one branch of a non-resident bank.

Compared to October 2015, the total assets of Georgian commercial banks decreased (in current prices) by 0.4 billion GEL, or 16 percent, to be valued at 24.4 billion GEL (exchange rate effect excluded in the above mentioned indicator decreased by 2 percent).

The banking sector's own funds (equity capital) equalled 3.4 billion GEL, which made up 13.8 percent of the commercial banks' total assets.

In October 2015 the banking sector finished with a net profit of 22.2 million GEL.

The five banks with the largest assets made up 78.5 percent of the banking sector's total assets.