BAKU, Azerbaijan, Nov. 24
By Tamilla Mammadova – Trend:
Georgian banks received 4 billion lari ($1.2 billion) of interest income in the first 10 months of 2020, which is 9.16 percent more than in the same period in 2019, Trend reports via the National Bank of Georgia (NBG).
In particular, income from loans to individuals amounted to 1.66 billion lari ($503.4 million), which is 3 percent more, and income from loans to legal entities - 1.16 billion lari ($351.8 million), which is 21 percent more.
Non-interest income amounts to 734 million lari ($222.6 million). This subgroup includes bank income, such as commissions, fines and others. Commission revenue for the first 10 months of 2020 amounted to 263 million lari ($79.7 million), which is 12 percent less than in the previous year, while revenue from fines and penalties decreased by 45 percent to 39.9 million lari ($12.1 million).
As for the total expenses, they amount to 4.1 billion lari ($1.2 billion), which is 41 percent more than in 2019. These expenses include 1.2 billion lari ($363.9 million) reserved for possible loan losses.
In addition to reserves, banks have also increased interest expenses. In particular, the interest rate on deposits increased by 214 million lari ($64.9 million) to 918 million lari ($278.4 million), and the interest rate on other borrowed funds attracted by banks increased by 33 percent to 632 million lari ($191.6 million).
Taking these factors into account, the loss of Georgian banks for the nine months of 2020 amounted to 86 million lari ($26.08 million).
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