Georgian Banking Sector Slightly Dwindles
28 February, 2013
Georgian Banking Sector Slightly Dwindles
Total assets of Georgian commercial banking sector shrunk by 1.3% over a month in January, the loan portfolio decreased by 1.1%; however, the volume of deposits increased by 0.3% and the sector finished January by profit, National Bank of Georgia informed on February 25, 2013.
Total assets of Georgian banking sector represented by 20 commercial banks [including 15 foreign-controlled banks and three branches of non-resident banks] as of February 1, 2013, decreased compared with the previous month by 1.3% or
GEL 193.2 million GEL (by 1.3 %) and constituted GEL 14.2 billion. The banking sector’s own funds (equity capital) equal to GEL 2.5 billion which makes up 17.4 % of commercial banks’ total assets. The share of foreign capital in banks’ total paid-in capital constituted 77.5 %.
The banking sector finished January with profit of GEL 13 million. The sector remains monopolized as five largest banks make 80.8 % of the entire sector’s assets.
Total volume of the non-bank deposits in the country’s banking sector increased by 0.3 % or GEL 21.9 million compared with the January 1, 2013, and reached GEL 7.7 billion by February 1, 2013. In this past January compared to December of 2012, the volume of demand deposits increased by GEL 40.9 million (1.3 %) and term deposits decreased by GEL 19.1 million (0.4%).
The deposit portfolio remains heavily dollarized: dollarization ratio of the total non-bank deposits increased by 0.13 %age points compared in January of 2013 and constituted 64.21% by February 1st.
The share of US dollar in the total volume of foreign currency denominated deposits equals to 79.8% and the share of Euro equals to 18%.
The annual average weighted interest rate on term deposits constituted 8.6%. In particular, the interest rate for national currency denominated deposits was 11.4% and the interest rate for foreign currency denominated deposits 7.7%.
The volume of loan portfolio (including loans to non-residents) decreased by GEL 45.5 million (0.5 %) in the reported period and constituted GEL 8.7 billion by February 1, 2013. The volume of the national and foreign currency-denominated loans decreased by GEL 29.8 million (1.1 %) and 15.7 million GEL (0.3 %) respectively.
The biggest share 77.3 % of lending to legal entities falls only on three sectors - industry, construction and trade. The leader is trade covering 47.5 %. Compared with the previous month, in January of 2013 the volume of loans for trade increased by 0.04 % or GEL 0.9 million and exceeded GEL 2.2 billion.
Share of loans provided to the industrial sector constituted 20.9 % of all loans to legal entities and amounted to GEL 982.4 million (1.1 % or GEL 10.8 million less compared to the previous month). 8.9 % fall on construction amounting to GEL 420.5 million (3.5 % or GEL 15.2 million less, respectively).
The volume of lending to resident individuals increased by 0.1 % or GEL 5.1 million during January 2013, and exceeded GEL 3.6 billion.
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