Georgia Banks Assets Reach GEL 8.3 bln

Aggregate assets of banks operating in Georgia grew by 15.7% in the first five months of this year and reached GEL 8.342 billion, the National Bank of Georgian (NBG) said on July 1.

There are total of 22 banks currently operating in Georgia.

The share of assets of five largest banks – Bank of Georgia; TBC Bank; Bank Republic-Societe Generale Group; ProCreditBank and Cartu Bank – in aggregate bank assets decreased from 80.4% to 78.8% at the end of May, 2008.

NBG said that in January-May banks’ net profit reached GEL 51.6 million – 16.2% up from the same period of last year.

NBG also said that banks’ interest income increased by 65% as of end-May.

The NBG’s Monetary Policy Committee said after its monthly session on June 25 that in the second half of May commercial banks had to “sharply increase” interest rates because of a liquidity shortage in the banking system, following an increased rate of private sector lending. Although the Committee said “the increase in interest rates has not yet influenced, or caused a decline in the growth of private sector lending,” exact data about the step’s effect will only be available in next couple of months.

NBG also said on July 1 that bank loans as of end-May, rose by 61.2% over the same period of last year reaching GEL 5.3 billion. 46.8% of loans went to financing the trade sector. Industry got 19.8% and construction 13.5%. Loans issued to individuals have increased two-fold reaching GEL 2.1 billion, according to NBG.

It also said that deposits have also increased up by 38.5% in the first five months of 2008 over the same period of last year, reaching GEL 3 billion. Lari deposits increased by 58.2%, while deposits in the foreign currency – by 28.8%, according to the central bank.