26.Mar .2021 14:00

Q1 2021 will be hard in terms of profitability – Bank

Q1 2021 will be hard in terms of profitability – Bank
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Vakhtang Butskhrikidze, General Director of TBC Bank, says that the first and second quarters will be quite difficult for the banking sector, due to the hard economic situation in the country and the vaccination process. Butskhrikidze has much more positive expectations for the second half of the year.

“Q1 - Q2 will be quite difficult due to the economic situation and the vaccination process. We have relatively better economic expectations for the second half of 2021. We think that the first half of 2021 will be difficult in terms of profitability, we have more positive results in the second half of the year. Therefore, the profitability of banks will be better in the second half of the year, "Vakhtang Butskhrikidze said.

According to him, the economy must be ready, the vaccination process should be conducted properly and demand for loans must increase in the economy.

"The banking sector has more liquidity than enough. The banking sector is ready, now the main thing is the readiness of the economy, if the vaccination goes properly and quickly, there will be a demand for loans in the economy," - said Butskhrikidze.

According to the NBG, the volume of loans issued by commercial banks (excluding interbank loans) in February 2021 increased by 258.56 million GEL or by 0.68% compared to the previous month (exchange rate effect excluded, increased by 0.29%) and constituted 38.43 billion GEL by March 1, 2021.