In the first five months of 2020, 15 commercial banks operating in Georgia lost a total of 613 million GEL, according to statistics released by the National Bank of Georgia.
According to the financial indicators, the reserves of 1.2 billion GEL for possible losses made by the banks have become the main reason for the loss. In total, Georgian commercial banks have saved 1.22 billion GEL in the buffer of “possible losses of assets”, which reflects the amount of possible losses on loans due to the expected crisis.
The National Bank of Georgia has made an explanation regarding the structure of commercial banks’ losses, still after the publication of the March financial indicators. The NBG notes that in previous years, the sector has been highly profitable, allowing banks to create adequate volumes of buffers, which can be used in such crisis.
As for operating activities, in May 2020, the total income of 15 banks was 362 million GEL, which is an
increase of 1% year-on-year. Including, interest income has made up 306 million GEL, which is 6% more comparing to the last year. The main factor of growth is increase of business lending by 18%.
As for the revenues from private individuals’ lending is declined by 4%, which is related to the delay of citizens’ loan program by the banks.
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