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Annual profit margin of Georgian banks increases

Finance Materials 25 February 2021 12:20
Annual profit margin of Georgian banks increases

BAKU, Azerbaijan, Feb.25

By Tamilla Mammadova – Trend:

Georgian banks generated a net profit of 113 million lari ($34.1 million) in January 2021, Trend reports via the National Bank of Georgia.

The annual profit margin has increased by 18 percent.

The total income of the banks in January was 453 million lari ($136.9 million), which is an increase of 10 percent. Of this, interest income, or interest paid by consumers, amounted to 367 million lari ($110.9 million). Among them, income from loans to individuals amounted to 192.6 million lari ($), while income from loans to legal entities amounted to 128 million lari ($38.7 million) (an increase of 15 percent).

As for other income of banks, the sum of commissions is reduced by 4 percent on an annualized basis and amounts to 29 million lari ($8.7 million), while banks suffered a loss of 13 million lari ($3.9 million) from conversion operations instead of profits.

In total, banks spent 325 million lari ($98.2 million) in January. Of this, interest expenses were 197 million lari ($59.5 million). Among them, the interest accrued on deposits was 111 million lari ($33.5 million), while the service fee for other liabilities of banks was 63 million lari ($).

At the same time, the banks spent a total of 63 million lari ($19 million) on the maintenance of their equipment - offices, employees, and directors. 18.7 million lari ($5.6 million) were put in the buffer of possible asset losses. As a result, net profit amounted to 113 million lari ($34.1 million), while the amount paid as profit tax amounted to 14.7 million lari ($4.4 million).

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