
As stated in the congratulatory letters, the central banks of the mentioned countries express their hope for deepening cooperation with the National Bank of Georgia and are confident that during the presidency of Natia Turnava, Georgia’s financial stability and development will be further strengthened.Natia Turnava’s appointment as NBG Governor was also congratulated by the Presidents of the Central Banks of Moldova, Azerbaijan, Armenia and Belarus, the Executive Director and Alternate Director of the International Monetary Fund, the Black Sea Trade and Development Bank, and the Korea Financial Telecommunications and Clearing Institute (KFTC).Last week, Mikheil Kavelashvili appointed Natia Turnava as NBG President. Natia Turnava’s candidacy was presented to Mikheil Kavelashvili by the NBG board, whose 4 new members were approved by the Georgian Parliament on February 6. The NBG board consists of 9 members.
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Before receiving the microbank license, JSC "Crystal" was one of the largest players in the microfinance market (with assets of up to 600 million GEL). Its main business direction is financing small entrepreneurs, which was the main condition for obtaining a bank license.The National Bank of Georgia hopes that microbanking will allow "Crystal" to provide comprehensive services and add products.In addition, inclusion in the real-time settlement system (RTGS) will allow it to increase its competitiveness and become an even stronger player in the financial sector.
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Receipt of a microbank license rightly confirms Crystal’s position as a strong, responsible, stable, transparent and reliable financial institution not only in Georgia, but also in the entire region. With its robust business processes, high profitability, solid reputation and values, the company fully complies with modern, European standards of financial sector, as evidenced by numerous international and local awards.The company applied to the National Bank of Georgia for a microbank license at the end of 2023. The application was preceded by an intensive, complex and multifaceted process, so that Crystal could fully and effectively adapt to new legislation, regulations and the specifics of the entire banking sector with its products and processes, legal framework, digital technologies, internal organizational structure and risk management systems.Crystal will shortly continue to operate in the Georgian financial market with a new status. Under the brand promise “Bank of your Opportunities,” the company will take significant steps to offer diversified products and digital solutions to existing and new customers, meantime putting special focus on the agricultural sector and micro entrepreneurs.As key priority, the company will stay committed to customer-centric approach, flexible and innovative services, increased access to finances, knowledge, and technologies.„This is a major success and is a sequel of the dynamic steps Crystal has been taking in recent years. I’d like to express my gratitude to the National Bank of Georgia, which played a crucial role in this process, to local and international partners and investors for their support, to our team above all, for the great work that accompanied the process, and definitely to our loyal customers – everyone who took part in this difficult and interesting journey of obtaining a license. We are proud to be serving Georgia with our activities spanning over 27 years, strengthening our economy with the belief that Georgia has always been, is and will be Europe!“, – says Ilia Revia Chief Executive Officer of Crystal.The company stands out in the financial sector for its reputation as a reliable and responsible partner. Multiyear experience, expertise and new status, all serve to create additional incentives and opportunities for both existing and new customers.Notably, after obtaining a microbank license, Crystal, which boasts of the best standards of corporate governance, will continue to uphold core principles of social responsibility.
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Additionally, newly elected Council member Nino Jeladze will move to the executive branch and serve as Vice-President of the bank.Last week, Kavelashvili appointed Natia Turnava as President of the National Bank. Her candidacy was nominated by the National Bank Council, which gained four new members approved by Parliament on February 6.The National Bank Council consists of nine members.
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Ex-dividend Date: 5 June 2025Record Date: 6 June 2025Currency Conversion Date: 13 June 2025Payment Date: 11 July 2025The Georgian Lari to Pound Sterling exchange rate that will apply to the final dividend payments on the conversion date of 13 June 2025 will be the average exchange rate of the National Bank of Georgia for the period of 9 June 2025 to and including of 13 June 2025 (5 days average).The Final Dividend, together with the interim dividend of GEL 2.55 per TBC PLC share paid on 11 November 2024, will equate to a total dividend in respect of the year ended 31 December 2024 of GEL 8.10 per share, up by 12% year-on-year. This brings the total dividend payout ratio for 2024 to 35% and total distribution as a share of net profit to 39%, including a buyback of GEL 50 million.
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Once again, to illustrate the relative importance of FX flows, TBC Capital highlights the major sources (4Q23-3Q24): imports of goods ($14.7 bn); exports of goods ($8.3 bn); gross tourism revenues w/o migration (c. $4.0 bn); migration impact (c. $1.1 bn); tourism outflows ($490 mn); net remittances ($4.0 bn); net dividends ($1.1 bn); net reinvestment ($1.0 bn); net FDI without reinvestment (-$147 mn); net portfolio investments, loans and other investments by sector: government ($309 mn), private sector ($192 mn), commercial banks (-$133 mn). Which of these flows are most impacted? Tourism inflows, including the import component of up to 45%; demand for durables, which are almost entirely imported in Georgia; and investments;While looking at the latest data, including February, the impact appears to be growth-negative, especially on imports, but not GEL-negative;Furthermore, as of early February, TBC capital observes some recovery in tourism revenues, while the demand on durables has remained subdued;Not to forget the so-called good time buffer, estimated at around or more than a billion USD, stemming from higher deposit dollarization and credit larization, with the latter stocks, as of Dec-24, standing at a sizeable $12.6 bn (USD equivalent) for GEL credit, $9.6 bn for FX credit, $9.8 bn for GEL deposits and $10.9 bn for FX deposits;In this regard, lately TBC Capital has observed no significant further deposit conversions, while, on the credit side, FX loans have relatively accelerated, which is GEL-positive;Last but not least, in the context of the GEL/EUR/USD strategy, considering heightened uncertainty, TBC Capital reiterates our recommendation for diversification and for staying medium-to-long run indicators-oriented, so as to avoid short-term overreaction, which often, if not always, has led to significant losses.
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Lion Finance Group (BGEO LN) shares closed at GBP 48.15/share (+1.26% w/w and +3.10% m/m). More than 254k shares traded in the range of GBP 45.50 - 48.40/share. Average daily traded volume was 50k in the last 4 weeks. The volume of BGEO shares traded was at 0.57% of its capitalization.TBC Bank Group (TBCG LN) closed the week at GBP 35.40/share (+5.99% w/w and +15.88% m/m). More than 262k shares changed hands in the range of GBP 32.75 - 35.40/share. Average daily traded volume was 67k in the last 4 weeks. The volume of TBCG shares traded was at 0.47% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 12.00/share (-0.99% w/w and -1.96% m/m). More than 249k shares traded in the range of GBP 11.76 - 12.28/share. Average daily traded volume was 68k in the last 4 weeks. The volume of CGEO shares traded was at 0.63% of its capitalization.
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Up to 91% falls on the total portfolio of 4 banks (BOGG, TBC, LB, BB).TOP 4 banks by retail deposits
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According to the interactive statistics of the National Bank of Georgia, in the last reporting month, banks granted 146 million GEL equivalent loans to non-resident companies in foreign currency in December. This is an increase compared to the previous month (+ 416%m.m).However, December 2024 is not the most productive. In October 2023, 2 times more loans were granted (10/2023 – 317 million GEL).In recent years, a similar boom was recorded in April 2023 (04/2023 – 276 million GEL)As of 01.01.2025, a total of 2 billion GEL in loans were issued to non-local individuals and legal entities and 1.2 billion GEL in loans were issued to companies. (Retail - 867 million GEL).Of this, a portfolio of 883 million GEL is allocated to long-term loans (-5-10 years). Georgian banks have issued 2,200 loans to non-residents with a maturity of more than 10 years for a total of 300 million GEL.
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The annual trend is still absent, although the ratio has improved. It was -11.1% in December and is -8.7% at the end of January.The NBG announced the replenishment of reserves on November 25. The NBG President (then acting) announced the purchase of $124 million. Then she mentioned December's $28.6 million, via the Bmatch platform.She has not yet said anything about January's trading. During a visit to 1TV.ge last week (at a business partner), she stated that she does not believe that the volume of reserves is at a critical level. Reserves are also accumulated so that, if necessary, it will be possible to provide liquidity to the system at once.
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