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Finance
The largest amount of currency enters the country with Zolotaia Korona

According to the NBG statistics, transfers in May amounted to $284.3 million, which was a decrease of more than $100 million annually.Transfers from Georgia have also decreased. In May, $30.1 million was transferred, and more than 1/3 comes from transfers through the Zolotaia Korona system

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Commercial Banks’ Income From Commissions Made up 233 Million GEL In 4...

More than 1/2 of the Bank of Georgia's income comes from various services provided to clients. It is 0.6% in relation to the portfolio, which as of 1.05.2024, amounts to 20.7 billion GEL.TBC's ratio is 0.4% (83.4 million), which is represented by the largest loan portfolio of 21.8 billion.Liberty Bank ranks the 3rd , whose credit investment totals 3.2 billion GEL, received 9 million GEL from commissions in January-April. Accordingly, the coefficient of Liberty Bank is 0.3%.

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Only Bank of Georgia shares have a positive trend on the London Stock...

Bank of Georgia Group (BGEO LN) shares closed at GBP 37.90/share (+1.34% w/w and -19.70% m/m). More than 1.36mn shares traded in the range of GBP 36.35 - 39.10/share. Average daily traded volume was 164k in the last 4 weeks. The volume of BGEO shares traded was at 2.99% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 23.70/share (- 6.14% w/w and -19.66% m/m). More than 557k shares changed hands in the range of GBP 23.00 - 25.80/share. Average daily traded volume was 87k in the last 4 weeks. The volume of TBCG shares traded was at 1.01% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 8.64/share (-0.69% w/w and -20.00% m/m). More than 931k shares traded in the range of GBP 8.30 - 8.72/share. Average daily traded volume was 168k in the last 4 weeks. The volume of CGEO shares traded was at 2.18% of its capitalization.

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Inflation calculated by the EU methodology is 0.4% higher than the nat...

As for individual components, according to the EU HICP methodology, the percentage change compared to the corresponding period in 2023 is distributed as follows:Food and non-alcoholic beverages 1.0%;Alcoholic beverages, tobacco 4.6%;Clothes and shoes 3.5%;Housing, water, electricity, gas and other types of heating -3.2%;Furniture, household items and decorations, home maintenance -2.9%;Health care 1.1%;Transport – 11.1%;Communication -1.2%; rest,Entertainment and culture -0.4%;Education 3.5%;Hotels, cafes and restaurants 9.2%;Various goods and services 2.8%.

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Economy Ministry official discusses Georgia’s integration with EU digi...

Kubusidze told the meeting, which also included Mariam Sulaberidze, the Director of Open Net - an organisation that creates neutral fibre-optic infrastructure in the regions - “[e]liminating digital inequality and promoting digital transformation” were “top priorities” for the Government.“The Ministry of Economy has been implementing programmes and projects to ensure maximum internet access in rural areas and actively involve the population in the digital ecosystem”, she said.Officials from the Ministry and Open Net told telecommunication businesses about the optical fibre infrastructure built as part of the state internetisation project, its progress and future development plans.The Ministry said one of the highlights of the meeting was a presentation of the Rural Empowerment Through Digital Involvement project, funded by the EU Development Cooperation Programme and the Ministry of Foreign Affairs of Poland.This project aims to bridge the digital development gap between villages and cities in Georgia by enhancing communication infrastructure and improving digital literacy.The meeting also discussed challenges faced by the companies.

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TBC Achieved Breakeven delivering a combined GEL 59 million profit in...

TBC UZ and Payme delivering a combined GEL 59 million profit in 2023, up sevenfold, with 26.0% ROE. TBC UZ became profitable and added 0.6 million digital MAU. Its loan book more than doubled in 2023 to GEL 797 million, driven by the popular instant cash loan product, ending the year with a meaningful contribution of 10% of total group retail loans. The deposit portfolio also saw strong growth, increasing by 76% to GEL 581 million, equivalent to 7% share of our total retail deposits.The bank has relied on annual capital contributions from its shareholders to support its lending growth and comply with prudential requirements. While we expect TBCU to receive additional large-scale capital injections in 2024-2025, its Fitch Core Capital (FCC) ratio will moderate to 13%-14% during this period from 15% at end-2023 in our base case.TBCU is largely funded by granular, albeit pricey, retail deposits (86% of end-2023 total liabilities). However, the bank has recently started to attract wholesale debt, including from the parent group, and we expect the share of external borrowings to increase in the medium term. The bank's liquidity position is modest, with total liquid assets covering around a quarter of customer deposits at end-2023.

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Initiates Coverage of TBC Bank Uzbekistan with a BB- Rating

with a Stable Outlook for its subsidiary, TBC Bank Uzbekistan, which is in line with the Uzbekistan sovereign rating.Nika Kurdiani, CEO of TBC Group operations in Uzbekistan, said: “This is a historic milestone for TBC Bank Uzbekistan, underscoring our outstanding results. Fitch's rating is a testament to our profitable growth, strong balance sheet, and dedication to building a best-in-class fintech ecosystem. We are one of few companies to achieve a credit rating of BB- in Uzbekistan, which is the same level as the current sovereign rating.”Oliver Hughes, Head of International Business at TBC Group, added: “TBC Bank Uzbekistan achieved profitability just two years after launch—a record time-to-profit among global digital banks. We are scaling our digital banking business and launching a wide range of digital financial services to improve the lives of the people of Uzbekistan. Operating a fully-licensed, consumer lending-led, and deposit-funded business model, we are committed to delivering further growth and long-term value for our shareholders.”

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Iinflation hits 2%, loans up by 18.4%, goods import up by 11.3%, int’l...

InflationThe Bank said annual inflation increased to two percent in May, up from the previous months but still below the three percent target rate. Prices also increased by 0.4 percent compared to April, mainly due to “higher fuel and some food prices”. Base inflation, excluding volatile items, decreased to 1.7 percent.Banking sectorLoans grew by 18.4 percent year-on-year in April, the central bank said. The dollarisation of deposits decreased to 48.3 percent, while the dollarisation of the total credit portfolio remained at 44.7 percent.Foreign sectorThe NBG said imports of goods increased by 11.3 percent year-on-year, mainly driven by investment and consumer goods. However, the registered export of goods decreased by 12.7 percent year-on-year in April, with a decrease in the export of intermediate, consumer and investment goods.The official international reserves increased by $37.4 million compared to the previous month, totalling $4.8 billion in April.

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Refinancing loans increased by 1.4 billion

In the last reporting month, refinancing loans increased by 1.4 billion GEL. There are no transactions in the secondary securities market either. The passivity in the treasury securities market has been observed since November.During the reporting period, the NBG made currency interventions and withdrew more than 300 million GEL from circulation.The National Bank of Georgia offered USD 60 million at the foreign exchange auction on Tuesday, of which USD 48.70 million was sold.The Bank said the average weighted rate of the operation was 2.7829. In today's currency rates, USD 1 costs GEL 2.7680, while EUR 1 costs GEL 3.0058.The Bank also intervened with a USD 60 million injection at a foreign exchange auction about two weeks ago, in response to “recent volatility” in the currency market.The NBG activities on Bmatch are reduced in May. And in April, according to NBG's monthly review, with internal governmental conversions in the banking system, NBG's net foreign exchange sales amounted to 68.3 million USD. Net purchases on BMatch were USD 73.1 million.Combined with domestic government conversions, foreign exchange interventions and the BMatch mechanism, net foreign assets increased by about $4.8 million in April.NBG’s Net (Purchases) Sales on Bmatch (2024-2023)

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MFOs’ Lending Is Up – TOP-4

However, the pace has slowed down. For the same period last year, the microfinance sector showed a growth of up to 13.5%.As of Q1/2024, total lending of 34 MFOs amounts to 1.747 billion GEL (Q1/2023 - 1.581 billion)More than half of the investments accounts for the 2 big MFOs, Rico and Crystal. MFO Crystal is transforming  into a microbank, while Rico remains the biggest player of the market, but with a narrow profile. MFO's portfolio is mainly a pawn shop.MBC is also entering the banking market. Microbank license fee is GEL 100,000; of the bank – GEL 200,000; MFO – GEL 50,000.TOP-4 MFOs by Loan Portfolio

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