Galt &Taggart published Weekly Market Watch. According to the report, in Apr-22, the banking sector loan portfolio increased by 17.9% y/y (+1.4% m/m), excluding FX effect, after a 18.0% y/y growth in the previous month. In unadjusted terms, loan portfolio growth was 7.5% y/y (-0.4% m/m) to GEL 43.2bn (US$ 14.1bn), after growing by 11.0% in March. By sector, corporate loan growth (exc. FX effect) slightly slowed to 15.8% y/y (from16.2% y/y growth in previous month) and retail loan growth stood at 19.9% y/y (+19.8% y/y in previous month) in April. The mortgages growth came in at 13.5% y/y in April after growing by 13.6% y/y in previous month.
In Apr-22, loan dollarization reduced further to 49.6% (-5.83ppts y/y and - 0.70ppts m/m) and NPLs came in at 1.9% (-0.32ppts y/y and +0.12ppts m/m). Bank deposits growth accelerated to 14.1% y/y (+1.7% m/m, exc. FX effect) to GEL 37.2bn (US$ 12.2bn) in Apr-22, after a 9.2% y/y growth in previous month. By currency, in April, GEL deposits growth slowed slightly to 13.6% y/y (from 13.9% y/y growth in previous month), while FX deposits growth (exc. FX effect) accelerated to 14.5% y/y (up from 6.5% y/y growth in previous month). The deposit dollarization stood at 59.5% (-3.28ppts y/y and +0.08ppts m/m).
NBG purchased US$ 10.0mn
On 24 May 2022, NBG intervened in the FX market and purchased USD 10.0mn, the first purchase since 7 June 2019. The GEL strengthened by 7.2% against dollar YTD.
Money market
Ministry of Finance T-Bills: 5-year GEL 80.0mn (US$ 27.8mn) Benchmark bonds were sold at the auction held at NBG on May 24, 2022. Total demand was c.3.0x higher and the weighted average yield was fixed at 10.397%, down by 0.206ppts from previous auction held in April 2022.
The nearest treasury security auction is scheduled for June 7, 2022, where GEL 20.0mn nominal value 6-month T-bills and GEL 70.0mn nominal value 2-year Benchmark bonds will be sold.
Fixed income
Corporate Eurobonds: Bank of Georgia Group Eurobonds (GEBGG) closed at 5.83% yield, trading at 100.22 (-0.02% w/w). Georgia Capital Eurobonds (GEOCAP) were trading at 96.63 (+0.76% w/w), yielding 8.20%.
Georgian Railway Eurobonds (GRAIL) traded at 85.08 (-0.06% w/w), yielding 7.08%.
Georgian Sovereign Eurobonds (GEORG) closed at 86.62 (+0.06% w/w) at 6.71% yield to maturity.
Equities
Bank of Georgia Group (BGEO LN) shares closed at GBP 15.50/share (+10.40% w/w and +25.61% m/m). More than 323k shares traded in the range of GBP 13.90 - 15.50/share. Average daily traded volume was 64k in the last 4 weeks. The volume of BGEO shares traded was at 0.66% of its capitalization.
TBC Bank Group (TBCG LN) closed the week at GBP 14.94/share (+13.18% w/w and +24.29% m/m). More than 131k shares changed hands in the range of GBP 13.28 - 15.08/share. Average daily traded volume was 35k in the last 4 weeks. The volume of TBCG shares traded was at 0.24% of its capitalization.
Georgia Capital (CGEO LN) shares closed at GBP 6.50/share (+8.33% w/w and +6.21% m/m). More than 222k shares traded in the range of GBP 6.00 - 6.56/share. Average daily traded volume was 62k in the last 4 weeks. The volume of CGEO shares traded was at 0.48% of its capitalization.
