01.May.2019 23:51

Profit of Banks Fall by 15% in First Quarter of 2019

Profit of Banks Fall by 15% in First Quarter of 2019
The profit of Georgian bank system has decreased. According to the statistics published by the National Bank of Georgia, bank system has generated the profit worth of 198,601,000 GEL in the first quarter of 2019, which is less by 15% compared to the same period of last year.

The March review of Georgian bank system suggests that percentage rate for the Return on Assets (ROA) has decreased to 1.9% from 2.1%. Return on Equity (ROE) has decreased by 1.5% amounting to 14.2% in the end.

According to these statistics, Georgian banks have gained 1,036,704,000 GEL in the first quarter of 2019, which is more by 10% compared to the same period of previous year. However, the expenses for banks have increased by 18% and that is why the decrease was noted for the ROA and ROE indicators.

Overall expenses of commercial banks amounted to 808,236,000 GEL, which includes:

• Interest expenses – 380,868,000 GEL, y/y increase by 13.6%
• Non-interest expenses (machine costs, other non-interest expenses) – 303,288,000 GEL, y/y increase by 6.4%;
• Damage from potential loss of shares – 124,080,000 GEL, y/y increase by 102%.

As a result, the overall profit of banks before taxes amounted to 228,468,000 GEL, which gives us a 13% decrease. Whereas, the taxed profit amounted to 198,601,000 GEL.

National Bank of Georgia reports about profit and expenditure rates in an aggregated manner, whereas the commercial banks have not published the information about their indicators in the first quarter of 2019. Thus, it is still unknown which banks experienced largest decrease in the abovementioned indicators.

21.May.2019 16:18

Government Will Not Cover Commercial Risks of Anaklia Port - Tskitishvili

20.May.2019 11:22

Christine Lagarde - Harnessing Reforms to Boost Inclusive Growth, Full Speech

18.May.2019 00:28

Kutaisi bypass road to be modernized as 4-line highway

17.May.2019 00:19

Geostat Sets 164 GEL as the New Subsistence Minimum

16.May.2019 23:10

Ryanair Might Start Operating in Georgia in 2020

16.May.2019 10:14

The most modern Tunnel Boring Machines to be used in Nenskra Hydropower Plant Project