BAKU, Azerbaijan, October 21
By Tamilla Mammadova – Trend:
Georgian commercial banks suffered a total loss of 252 million lari ($78.7 million) from January through September 2020, Trend reports via the National Bank of Georgia (NBG).
As reported, the operating performance of financial institutions improved in September and as a result, net loss decreased to 252 million lari ($78.7 million) instead of 317 million lari ($99.01 million), fixed during the last 8 months.
According to the NBG, if similar operating figures of banks are maintained until the end of the year, the financial sector might end 2020 with a loss of less than 100 million lari ($31.2 million) despite the crisis. Moreover, the sector can finish this year with a net profit of several tens of millions.
As of the financial indicators, the main determinant of the existing loss is the accumulation of 1.2 billion lari ($374.8 million) by banks in the expected credit loss reserve.
In total, Georgian commercial banks have reserved 1.22 billion lari ($381.05 million) in the "possible losses on assets", which reflects the number of possible losses on loans due to the expected crisis.
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