Loan portfolio growth accelerated to 18.1% y/y in December 2021 In December 2021, the banking sector loan portfolio growth accelerated to 18.1% y/y (+3.7% m/m), excluding FX effect, after a 16.4% y/y growth in previous month. In unadjusted terms, loan portfolio was up 12.6% y/y (+3.9% m/m) to GEL 43.0bn (US$ 13.9bn). By sector, both corporate and retail loans growth (exc. FX effect) accelerated to 17.7% y/y (from 16.2% y/y in previous month) and to 18.4% y/y (from 16.7% y/y in previous month), respectively, in December. Notably, mortgage loan portfolio increased by 12.0% y/y in December after growing by 11.3% y/y in previous month. In December 2021, loan dollarization stood at 50.6% (- 4.70ppts y/y and +0.26ppts m/m) and NPLs stood at 1.9% (-0.39ppts y/y and -0.32ppts m/m).
Bank deposits grew by 12.0% y/y (+3.7% m/m, exc. FX effect) to GEL 37.2bn (US$ 12.0bn) in December 2021, after a 11.8% y/y in previous month. By currency, GEL deposits were up 11.3% y/y and FX deposits increased 12.4% y/y (exc. FX effect) in December. The deposit dollarization reduced to 60.0% (-1.44ppts y/y and -0.54ppts m/m).
Tbilisi residential property price index in 4Q21
Residential property price index (RPPI) was up 1.2% y/y in 4Q21, after a 8.9% y/y growth in previous quarter, according to Geostat. Notably, flats and detached houses prices growth slowed to 1.0% y/y (down from 7.3% y/y growth in previous quarter) and to 1.6% y/y (down from 13.5% y/y growth in previous quarter), respectively. On a quarterly basis, prices increased in both segments, up 1.6% q/q for detached houses and up 2.3% q/q for flats, which led to a 2.1% q/q rise in total RPPI in 4Q21.
Ministry of Finance Benchmark Bonds:
5-year GEL 80.0mn (US$ 26.0mn) Benchmark bonds were sold at the auction held at NBG on January 25, 2022. Total demand was c.1.8x higher and the weighted average yield was fixed at 9.795%, down by 0.070ppts from previous auction held in December, 2021. The nearest treasury security auction is scheduled for February 1, 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 2.63% yield, trading at 104.88 (-1.15% w/w). Georgia Capital Eurobonds (GEOCAP) were trading at 100.95 (+0.09% w/w), yielding 5.64%.
Georgian Railway Eurobonds (GRAIL) traded at 98.85 (-1.15% w/w), yielding 4.21%. Georgian Sovereign Eurobonds (GEORG) closed at 97.69 (-1.32% w/w) at 3.34% yield to maturity.
Equities
Bank of Georgia Group (BGEO LN) shares closed at GBP 14.58/share (- 0.95% w/w and -5.20% m/m). More than 295 000 shares traded in the range of GBP 14.08 - 15.06/share. Average daily traded volume was 58k in the last 4 weeks. The volume of BGEO shares traded was at 0.60% of its capitalization.
TBC Bank Group (TBCG LN) closed the week at GBP 14.10/share (-5.11% w/w and -12.64% m/m). More than 196 000 shares changed hands in the range of GBP 13.90 - 14.88/share. Average daily traded volume was 28k in the last 4 weeks. The volume of TBCG shares traded was at 0.36% of its capitalization.
Georgia Capital (CGEO LN) shares closed at GBP 6.54/share (-0.46% w/w and +2.99% m/m). More than 748 000 shares traded in the range of GBP 6.15 - 6.58/share. Average daily traded volume was 141 000 in the last 4 weeks. The volume of CGEO shares traded was at 1.58% of its capitalization.
