In May-23, the Georgian banking sector loan portfolio grew by 12.8% y/y (+0.9% m/m), excluding FX effect, after a 13.2% y/y growth in previous month, reads the latest Weekly Market Watch of Galt & Taggart.
According to the report, in unadjusted terms, loan portfolio increased by 6.1% y/y (+2.1% m/m) to GEL 45.7bn (US$ 17.6bn), after growing by 3.7% in April.
By sector, corporate loans growth was 10.3% y/y in May (+10.9% y/y in April, exc. FX effect) and retail loans growth stood at 15.0% y/y (+15.2% y/y in April). Notably, the mortgages growth came in at 11.8% y/y in May, after a 11.5% y/y growth in previous month.
In May-23, loan dollarization stood at 44.5% (-4.28ppts y/y and +0.56ppts m/m) and NPLs at 1.8% (-0.16ppts y/y and +0.04ppts m/m).
As for bank deposits, the growth accelerated to 31.2% y/y (+3.8% m/m, exc. FX effect) to GEL 45.5bn (US$ 17.5bn) in May-23, after a 28.7% y/y growth in April.
In terms of currency breakdown, GEL deposits growth accelerated further to 44.8% y/y (+39.1% y/y in previous month) and FX deposits growth (exc. FX effect) slowed to 21.3% y/y (+21.5% in previous month). As a result, the level of deposit dollarization decreased further to 50.5% (-7.66ppts y/y and -0.82ppts m/m) in May-23.
