first-half-2016 | KPMG | GE

Georgian Banking Sector Overview

First Half 2016

The banking system remains the biggest part of the Georgian financial market. As of 30 June 2016, there were 19 commercial banks operating in Georgia.

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Compared with the same period of 2015, the banking system assets grew by 7.98% and reached GEL 25.27 billion as of 30 June 2016. 

For the 12 months period ended 30 June 2016 the return on assets (ROA)* for the Georgian banking system was 2.4%, while the same indicator amounted to 2.5% in the same period of 2015.

As of 30 June 2016 Bank of Georgia held the largest part of the total banking sector’s assets, while TBC Bank was the second largest. Bank Republic and Liberty Bank also held leading positions in the list. 

As of 30 June 2016 the total amount of outstanding loans grew by 10.7% compared with the same period of 2015 and reached GEL 16.48 billion.

As of 30 June 2016 the ratio of loan portfolio to total assets for the Georgian banking system was 65.2%, while the same ratio was around 63.6% as of 30 June 2015.


For the end of H1 2016 the total loan provision expenses of the Georgian banking sector increased by 1.15% compared with the same period of the 2015, and amounted to GEL 0.19 billion. On the other hand from 30 June 2015 to 30 June 2016 the ratio of loan loss reserves to total loan portfolio increased from 6.1% to 6.9%.


The balance of non-bank deposits as of 30 June 2016 increased by 13.5% compared with the same date of 2015, reaching GEL 14.34 billion. 

As of 30 June 2016 the loan portfolio/ non-bank deposit ratio for the Georgian banking system was 1.1. The ratio was higher (1.2) as of 30 June 2015.

As of 30 June 2016 the total equity of banks reached GEL 3.69 billion, showing 2.9% increase compared to the same figure as of 30 June 2015. 

For the 12 months period ended 30 June 2016 the return on equity (ROE)* for the Georgian banking system was 17.2%. The ratio of equity to assets as of the 30 June 2016 was 14.6%.

During the first half of 2016, the banking system had total income (interest income plus fee and commission income) of GEL 1.29 billion, which exceeded the total income for the same period of 2015 by 10.4%. The net profit of the banks for the period was GEL 0.28 billion, which is 11.1% higher compared with the same period of 2015.

 

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© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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