31.Mar .2020 17:28

TBC Research: bank deposits increased by 12.5% YoY to GEL 27.3bn

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TBC Research published weekly bulletin. According to the report, bank deposits increased by 12.5% YoY to GEL 27.3bn as of February 2020. The GEL-denominated deposits went up to GEL 10.3bn (+16.6% YoY), while foreign currency deposits reached GEL 17.0bn equivalent (+10.1% YoY2 ). As a result, the share of home currency deposits equaled 37.6% by the end of February 2020. A spread between the new GEL and the FX deposits’ interest rates was up by 1.4pp, as the rates on lari deposits increased MoM by 1.3pp, while the rates on FX were down by 0.1pp MoM.

Bank loans increased by 17.03% YoY to GEL 30.9bn equivalent by the end of February. The GEL-denominated loans went up to GEL 14.2bn (+25.2% YoY), while foreign currency loans reached GEL 16.6bn equivalent (+10.8% YoY4 ). Interest rates on new GEL and the FX loans converged in February 2020, compared to January, as market interest rates for GEL loans were down by 0.2pp MoM to 16.3%, while they increased by 0.1 pp MoM to 6.1% for FX-denominated loans. Loans to households, constituting for 51.3% of the total portfolio, reached GEL 15.8bn (+10.9 5% YoY) equivalent, as the loans to legal entities were up to GEL 15.0bn (+24.3 6% YoY) equivalent by the end of February 2020.

Current Account Balance was down 1.6pp YoY in Q4 2019. The improved balance of trade in goods (+1.6pp of GDP YoY) did not offset weaker balance of trade in services (-0.3pp of GDP YoY), current transfers (-0.5pp of GDP YoY), and decline in income (- 1.4pp YoY in USD terms).