Nino Devdariani, Chairman of the Board of the Association of Microfinance Organizations, says that the main determining factor for the growth of the credit portfolio for lending entities in 2Q24, was related to the merger of lending entities with microfinance organizations.
In the 6 months of 2024, small creditors received a net profit of GEL 24.8 million from their activities.
According to the assessment of the chairman of the board of the Association of MFOs, the improved profitability rate is also noteworthy, as the increase was related to the optimization of the expenditure part. According to her, during this period the non-interest expense decreased and came to the level of 2019.
"Now we are observing the trend that non-interest expense is decreasing, if last year it stood at 13.4% in relation to the average portfolio, now the figure amounts to 11.7%. Such a low level has been observed in 2019.
The expectation is that the mentioned trend will be maintained and it will be possible to operate with cheaper resources in the longer term", says Nino Devdariani, Chairman of the Board of Association of the Microfinance Organizations.
