Galt & Taggart published Weekly Market Watch. According to the document, in Jul-22, the banking sector loan portfolio growth slowed to 16.3% y/y (-0.4% m/m), excluding FX effect, after a 18.7% y/y growth in previous month. In unadjusted terms, loan portfolio growth was 6.3% y/y (-3.6% m/m) to GEL 42.1bn (US$ 15.2bn), after growing by 11.3% in June. The slowdown was mainly driven by corporate loan sector growing by 13.2% y/y (+16.9% y/y in previous month, exc. FX effect), while retail loans growth came in at 19.2% y/y (+20.4% y/y in previous month). The mortgages increased by 14.3% y/y in July after growing by 14.2% y/y in previous month. In Jul-22, loan dollarization reduced markedly to 45.8% (-6.15ppts y/y and -2.57ppts m/m) and NPLs stood at 2.0% (-0.30ppts y/y and +0.08ppts m/m).
Contrary to loans, deposits growth accelerated further to 20.5% y/y (+5.0% m/m, exc. FX effect) to GEL 38.8bn (US$ 14.0bn) in Jul-22, after a 17.4% y/y growth in previous month. By currency, in July, both GEL and FX (exc. FX effect) deposits growth accelerated, increasing by 18.9% y/y (from 16.6% y/y growth in previous month), and 21.6% y/y (from 17.9% y/y growth in previous month), respectively. The deposit dollarization reduced to 56.9% (-3.10ppts y/y and -1.02ppts m/m).
Ministry of Finance T-bills / T-notes:
5-year GEL 90.0mn (US$ 32.3mn) Benchmark bonds were sold at the auction held at NBG on August 23, 2022. Total demand was c.2.6x higher and the weighted average yield was fixed at 9.683%, down by 0.149ppts from previous auction held in July 2022. The nearest treasury security auction is scheduled for September 6, 2022, where GEL 20.0mn nominal value 6-month T-bills and GEL 80.0mn nominal value 2-year Benchmark bonds will be sold.
Corporate Eurobonds: Bank of Georgia Group Eurobonds (GEBGG) closed at 4.29% yield, trading at 101.50 (+0.26% w/w). Georgia Capital Eurobonds (GEOCAP) were trading at 94.30 (unchanged w/w), yielding 10.25%.
Georgian Railway Eurobonds (GRAIL) traded at 83.52 (-1.14% w/w), yielding 7.56%.
Georgian Sovereign Eurobonds (GEORG) closed at 86.90 (-0.06% w/w) at 6.88% yield to maturity.
Bank of Georgia Group (BGEO LN) shares closed at GBP 20.35/share (- 1.45% w/w and +42.51% m/m). More than 492k shares traded in the range of GBP 20.15 - 21.25/share. Average daily traded volume was 82k in the last 4 weeks. The volume of BGEO shares traded was at 1.00% of its capitalization.
TBC Bank Group (TBCG LN) closed the week at GBP 17.36/share (-3.02% w/w and +33.33% m/m). More than 232k shares changed hands in the range of GBP 17.06 - 18.00/share. Average daily traded volume was 53k in the last 4 weeks. The volume of TBCG shares traded was at 0.42% of its capitalization.
Georgia Capital (CGEO LN) shares closed at GBP 6.88/share (+1.93% w/w and +12.97% m/m). More than 209k shares traded in the range of GBP 6.70 - 6.95/share. Average daily traded volume was 60k in the last 4 weeks. The volume of CGEO shares traded was at 0.45% of its capitalization.
