BOGG Ranks the 1st With ROE

The market positions of the systemic bank are strengthened. According to credit investments, the share is 37.1%. According to the chartered capital - 33.6%.BOGG is number one by net profit. The bank ended 4 months with a profit of 357.2 million GEL.


Basisbank finished 4M with a profit of 16 mln

The bank firmly stands on the 3rd position in terms of business lending, both in terms of financing small and medium-sized companies, as well as corporate.As of 01.05.2023, with a net profit of 15.8 million GEL and a share of 2.06%, Basisbank is in the 5th position among the profitable ones (13).


Basisbank Supports Laurel Plantation Project by Farmer's House

The total cost of the project is GEL 357,000, of which the financial support provided by Basisbank amounts to more than GEL 107,000. The company also benefits from the co-funding of the Plant Your Future state project and the USAID program.The laurel plantation in the Khorga village was planted on a total area of 28 hectares, and approximately 7,200 laurel seedlings were planted per hectare. The plantation was fixed in 2022-2023 and so the entrepreneur expects to receive a full harvest starting from 2025.With the support of Basisbank and within the framework of the preferential agricredit program, Farmer's House plans to fully equip the laurel plantation with a modern drip system in the future. The company also owns a modern laurel processing plant, where it receives a decent amount of laurel from other farmers to export it, largely to the Chinese market."We are more than ready and willing to provide considerable support to the development of agro-entrepreneurship, which in turn helps strengthen the business and economic development in the country. We believe that Basisbank's financial involvement will be successful and our partnership will provide this entrepreneur even more opportunities for expansion. We are glad that Basisbank is a reliable financial partner of Farmer's House, focused on growth and development. We are ready for new challenges to help achieve sound agricultural sector in the country," said Shmagi Bregadze, head of Basisbank's Agribusiness Department.


Basisbank's Rating affirmed at 'B+' and Outlook upgraded from 'Stable'...

As Fitch explains, the upgrade on Outlook was driven by the stabilization of Basisbank's Profitability and strong capitalization as well as positive expectations regarding favourable economic conditions in Georgia, resulting in sustainable profit growth, strong asset quality, solid funding and capitalization for the bank.„We are pleased to continue our path to consistent development and strengthening of our positions on the local market. Last year, we ended with outstanding financial results that exceeded all our expectations and set new records across key financial indicators. We ended 2022 with almost doubled net profit and solid portfolio and capital growths of 68% and 29% respectively over the previous year. Our strong results and significant accomplishments have secured us a strong 4th position on the market, which were reflected in Fitch’s revised Outlook from Stable to Positive “, David Tsaava, General Director of Basisbank commented.About BasisBankBasisbank Group is the 4th largest financial group in Georgia with a market presence of 30 years. Steady organic growth boosted with successful acquisition of retail and corporate businesses in 2022, lead to dynamic transformation and mapping new strategic objectives for the Group.The Group, covering Insurance and Leasing markets as well, delivers top-notch services to more than 200,000 business and retail clients through its multi-channel distribution platform (with a strategic focus on digital channels) and a network of 40 branches throughout the Country.


John is counting on Mestvirishvili

According to James John, the change, which established a certain parity and indefinitely delayed the date of the election of the new president of the Central Bank, posed a threat to the independence of the country's central bank.“On the NBG Governor, there is a framework in place for selecting the new Governor and we look forward to that process proceeding. In the meantime there is a clear succession framework at the NBG for operational responsibility in the absence of a permanent Governor, so there is no problem in need of a solution and the NBG is in very good hands with acting Governor Mestvirishvili. As we made clear in our February statement there is no need for the recent proposal to change the NBG law and the amendments in our view risk undermining the independence and credibility of the NBG. We welcome the president’s veto of the law”, - James John says.


IMF Reaches Staff-Level Agreement on Second Review for Georgia’s Stand...

“Following productive discussions, the Georgian authorities and the IMF team reached staff-level agreement on policies for completion of the second review of the SBA. The agreement is subject to consideration by the Executive Board in June 2023. Completion of the review will make SDR30 million (about $40 million) available to Georgia. The authorities are treating the program as precautionary.“The Georgian economy has performed strongly since the pandemic, reflecting limited adverse spillovers from Russia’s war in Ukraine and prudent macroeconomic policies. Buoyant tourism and a surge in immigration, financial inflows, and transit trade triggered by the war in Ukraine have boosted growth and fiscal revenues, and strengthened the current account balance and the lari. The authorities have taken advantage of relatively favorable conditions to rebuild fiscal and foreign exchange buffers. The financial system remains sound and National Bank of Georgia (NBG) action to require banks to adhere to relevant sanctions has helped limit the impact of the war.“High inflation has fallen sharply recently and is now below the NBG’s 3 percent target due to lower commodity prices, lari appreciation, restrictive monetary, fiscal, and macroprudential policies, and tighter global financial conditions. Core inflation has also declined but remains somewhat elevated amid strong domestic demand and a tight labor market with high wage growth and low unemployment.“All but one of the quantitative performance criteria for the second review were met, including on inflation, the fiscal balance, and international reserves; a small overrun in budget lending has been corrected. The authorities implemented structural reforms in the areas of tax policy and administration, public investment management, fiscal risks, NBG communications, and financial supervision.“Looking ahead, growth is projected to converge to its potential rate of a little above 5 percent in 2023, while inflation would remain below the NBG’s 3 percent target, reflecting the factors described above including a continued tight monetary policy stance with positive real interest rates. Over the medium term, growth is expected to remain close to potential, supported by infrastructure investments and an expected improvement in global economic and financial conditions. Inflation is forecast to be close to target in 2024.“Given high uncertainty regarding global economic and financial developments and political conditions, policies should remain focused on entrenching macroeconomic and financial stability and maintaining the momentum for structural reforms.“We welcome the NBG’s continued commitment to the inflation-targeting framework, the floating exchange rate, and prudent international reserve management including to strengthen reserve coverage. Price pressures from strong domestic demand and a tight labor market will likely warrant a cautious and gradual approach to policy rate cuts to maintain a restrictive policy stance until core inflation durably falls. Increases in the policy rate could be needed if core inflation rises. Steps to improve bank resilience as well as monitoring and regulating virtual asset service providers will further enhance financial stability. Upholding the NBG’s independence and credibility is essential.“Fiscal policy has been appropriately focused on building buffers and managing risks. The authorities remain committed to the further adjustment called for in the 2023 budget to comply with the fiscal rule. Continued progress is necessary in revenue mobilization and public investment management to accommodate spending priorities, including on infrastructure and education, and to improve spending quality and efficiency. Successful implementation of the strategies adopted last year for state-owned enterprise governance and for renewable energy development are expected to enhance productivity and limit fiscal risks.“Implementation of the authorities’ comprehensive structural reform agenda will reduce entrenched high unemployment and support long term inclusive growth. Priorities include addressing skills mismatches and gender disparities through better education, training, and active labor market policies, improving competitiveness through strengthening corporate governance and anti-corruption frameworks, and prioritizing key infrastructure projects to foster economic diversification and regional connectivity.“The IMF team would like to thank the authorities, international development partners, and representatives of the private sector for the open and constructive discussions.”


5% of consumer loans in GEL are problematic

Among them, up to 5% are denominated in GEL and 3%-3% remain in foreign currency (Q1/2022 -5%, 4.3%, 3.6%)Compared to other credit products, consumer lending is characterized by a high attrition rate, even without the influence of pandemics, war crises and other global shocks.Before the pandemic, 9% of US dollar-denominated loans were non-performing, this figure has doubled to a maximum of 18% during the lockdown. It decreased to 6.3% in Q1/2023, and to 3.2% in Q1/2023. The share of problematic portfolio in Euro consumer loans does not exceed 3% (7.9 million GEL).


The yield of Georgian Eurobonds decreased slightly

Bank of Georgia Group Eurobonds (GEBGG) closed at 5.70% yield, trading at 100.04 (+0.01% w/w).Georgia Capital Eurobonds (GEOCAP) were trading at 97.78 (-0.11% w/w), yielding 8.93%. Georgian Railway Eurobonds (GRAIL) traded at 85.58 (-0.08% w/w), yielding 7.45%.Georgian Sovereign Eurobonds (GEORG) closed at 89.85 (-0.19% w/w) at 6.59% yield to maturity.


Loans’ Sharee To GDP Is Up To 61%

The highest was up to -117% in April 2021, and in April of the year before the pandemic it was 87.3%.The ratio of deposits to GDP is 68.6%, loans - up to 61%In determining the coefficients, the NBG was guided by the GDP of the last 4 quarters (74.1 million GEL at current prices).As a percentage of GDP (%)


Shares of Georgian companies rose in price on the LSE

TBC Bank Group (TBCG LN) closed the week at GBP 24.25/share (+2.97% w/w and +8.50% m/m). More than 279k shares changed hands in the range of GBP 23.05 - 24.35/share. Average daily traded volume was 66k in the last 4 weeks. The volume of TBCG shares traded was at 0.51% of its capitalization.Georgia Capital (CGEO LN) shares closed at GBP 7.96/share (-1.12% w/w and +3.11% m/m). More than 206k shares traded in the range of GBP 7.91 - 8.12/share. Average daily traded volume was 253k in the last 4 weeks. The volume of CGEO shares traded was at 0.46% of its capitalization.