27.May .2020 18:58

Banks may finish 2020 with a loss – Koba Gvenetadze

Banks may finish 2020 with a loss – Koba Gvenetadze
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"It is possible that the banks will end the year with a loss of 2020," Koba Gvenetadze, President of the National Bank of Georgia, told at the press-conference today. According to him, the crisis of COVID-19 was met by the Georgian banking system with a high rate of profitability and adequate level of capital, but despite a good starting position, it is possible that the total loss in the sector will be much higher than profit.

"Given the stable operating income, it is expected that after the pandemic, banks and financial institutions will soon regain profitability," - said Koba Gvenetadze.

According to Koba Gvenetadze, the growth of the share of inactive loans in the Georgian banking system in 2020 is forecasted. At the same time, the annual growth rate of loans is projected from 0 to 5%.

In the first four months of 2020, 15 commercial banks operating in Georgia lost a total of GEL 667 million.