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.
See all the news
Silknet signed Memorandum of Understanding with Global Communications Company One Web
Reuters: Dutch city tells floating Georgian monastery to cast off
The NBG hiked further as the GEL stays undervalued
World Bank expects slowdown of Georgia's economic growth in Q4 of 2019
Georgia-Estonia Business Forum is Held Today
Nestle Sees $250 Million Boost for Starbucks Products
GDP will be Calculated by the Updated Methodology from Today – What the Reform Will Cause
BM.GE: Giorgi Gakharia has selected a new business ombudsman
Tourist Number Hits a Record within 10Months and Exceeds 8 MLN Despite Putin’s Flight Ban
Galt & Taggart does not rule out slowdown of economic growth to 4% in 2020
Mamuka Khazaradze: finally, I also found out what we were accused of
Salmonella detected in frozen chicken meat imported from Ukraine
Talakvadze about Tskaltubo Development Project: special rules won’t apply to Ivanishvili
m2: we do not have any plans for Center Point at this stage
Georgia Capital to open 6 new hotels in Georgia under the new brand Amber Group
The CEO of m2 Group is changed - Shota Berekashvili replaces Irakli Burdiladze
The 30 Top Emerging Travel Destinations for 2020
"We hold rather comfortable shares on the market " – Does TBC Bank want to Buy Cartu?
Interview with Ahmed Bin Sulayem - Executive Chairman and CEO of DMCC
Agreement signed between Silknet and Euronews to launch “Euronews Georgia”