All commercial banks in Georgia finish 1Q2020 with loss
BAKU, Azerbaijan, May 8
By Tamilla Mammadova - Trend:
All 15 commercial banks, operating in Georgia, finished the first quarter of 2020 with a total loss of 747 million lari ($234.1 million), Trend reports referring to the financial report of National Bank of Georgia (NBG).
As reported, the main reason for the loss was making reserves of 1.2 billion lari ($376.1 million) by the banks for the possible losses. Thus, Georgian banks totally have reserved 1.22 billion lari ($382.4 million) in the buffer of possible loss of assets, which reflects the amount of possible losses on loans due to the expected crisis.
This is the amount that banks have shown to be as a possible loss due to the crisis created by COVID-19; however, their operating activities has been still profitable in the first quarter of 2020, and 14 out of 15 banks had a profit in the first quarter of 2020.
According to the NBG's report, as of the first quarter of 2020, TBC Bank has the largest net loss of 277,4 million lari ($86.9 million). Bank of Georgia is ranked second with a loss of 276 million lari ($86.5 million).
As for the volume of banks’ assets, TBC Bank still ranks as the first with assets exceeding 19.2 billion lari ($6 billion), followed by Bank of Georgia with assets of 17.9 billion lari ($5.6 billion) and Liberty Bank with assets of 2 billion lari ($626.9 million).
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