Georgian Banks Keep Growing
06 September, 2012
Georgian Banks Keep Growing

Total assets of Georgian commercial banks  increased by GEL 1billion in a month, the loan and deposit portfolios increased by GEL 124.4 million and GEL 643.2 million respectively. 

As of August 1, 2012, the banking sector in Georgia is represented by 19 commercial banks, including 15 foreign-controlled banks and three branches of non-resident banks. Compared with the previous month, total assets of Georgian commercial banks (in current prices) increased by GEL1 billion (by 7.8%) and constituted GEL 14.1 billion, National Bank

of Georgia, informed on August 30.2012.

The banking sector's own funds (equity capital) equal to GEL 2.3 billion which makes up 16.5% percent of commercial banks' total assets. The share of foreign capital in banks' total paid-in capital constituted 75.8%.

Georgian banking sector finished July of 2012 with the net profit of GEL 14.2 million.  The share of five banks having the largest assets within the total amount of the banking sector still makes a lion’s share by 82.9% of total assets of the sector.

The volume of lending by commercial banks (including loans to non-residents) increased by GEL 124.4 million (1.5%) in July and exceeded GEL 8.4 billion by August 1, 2012. The volume of loans in the national and foreign currency increased by GEL 31.6 million (1.2%) and GEL 92.7 million (1.6%) respectively.

Loans to legal entities decreased by 1.2% in local currency and increased with the similar rate of 1.2% in foreign currencies: GEL 952.9 million worth of national currency-denominated loans were issued that lags by GEL 11.2 million behind the previous month data; and GEL 3.7 billion worth of loans were issued in a foreign currency (by GEL 44.6 million more respectively).

78.2% percent of the total volume of lending to the legal entities falls only on three sectors - industry, construction and trade. The biggest share traditionally falls on trade - 46.6%. Compared with the previous month, in July the volume of loans provided for trade increased by 0.4% that translates into GEL 8.7 million and constituted GEL 2.2 billion.

Industry is the runner up in the loan portfolio. Share of loans provided to the industrial sector constituted 22.3% of all loans to legal entities and amounted to GEL 1049.7 million by August 1, 2012 (3.1% or GEL 31.5 million  more compared to the previous month). 9.3% fall on construction, covering GEL 439.4 million (5.3% or 24.7 million less).

The volume of lending to resident individuals increased by 2% or GEL 69.1 million and hit GEL 3.5 billion.

The volume of the non-bank deposits portfolio of Georgian commercial banks went up by 9% or GEL 643.2 million within reported period, and exceeded GEL 7.8 billion. In July compared to the previous month, the volume of demand deposits increased by GEL 392.2 million (12.1%) and term deposits increased by GEL 251.3 million (6.4%).

The share of US dollar in the total volume of foreign currency denominated deposits equals to 80.8% and the share of Euro equals to 16.6%.

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