NBG Approves 2025–2027 Market Conduct Supervision Strategy

According to the statistics of the National Bank, as of 1Q25, the amount of money in current and demand deposit accounts of retail clients of the bank has decreased. The share is 6.7% (2024 – 10%).According to the NBG's interactive statistics, the annual growth of foreign currency deposits is 18.9% and has maintained an upward trend in the last 3 months (05/2025 +18.2Y.Y; 04.2025 – 16.6%Y.Y).

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The issuer will use the raised funds for the construction of a logistics center in Tbilisi.Investor demand for the bonds exceeded the volume of securities.“This is the 8th transaction since 2016, 7 of which were carried out in cooperation with TBC Capital. This is also the 7th transaction for TBC Capital on the Georgian securities market this year: this year we participated in an issue of more than 300 million GEL. TBC Capital is the market leader with a 68% share,” - Otar Sharikadze, Director of TBC Capital said.

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The investment firm notes that the trend observed over recent months has remained stable: exports remain strong, largely due to re-exports of vehicles, while import growth remains weak, partly because of a decline in car imports.Remittance flows also showed positive momentum, increasing by 12.2% year-over-year in June. Meanwhile, tourism revenues grew 5% annually in the second quarter, up from 2.3% in the first quarter, despite short-term disruptions from the conflict in the Middle East.The European Union remained the largest source of foreign exchange inflows, accounting for 20.3% of total inflows in Q2, although slightly down from 21.7% in Q1.“As we’ve emphasized in previous reports, strong net foreign exchange inflows are one of the three key factors supporting the GEL (Georgian lari),” TBC Capital said.“Of the remaining two, the US dollar has strengthened slightly following the US-EU preliminary trade agreement, while the GEL deposit conversion dynamics in July present a more mixed picture.”Despite this, pressure for GEL appreciation remains strong, as reflected by the National Bank of Georgia’s (NBG) ongoing foreign exchange interventions. According to TBC Capital estimates, the NBG purchased more US dollars in July than in previous months, indicating significant foreign currency inflows.TBC Capital’s short- and long-term exchange rate models suggest that the GEL remains slightly undervalued compared to its equilibrium level.As of June, annual inflation reached 4.0%, showing a moderate acceleration from the previous month but remaining broadly in line with expectations. Food prices remain the primary driver of inflation, although service inflation was also elevated in June.It’s worth noting that the temporary effect of reduced internet fees, which had helped lower inflation by around 0.4 percentage points, is expected to expire in July and August.“If inflationary pressures intensify, which is not our base-case scenario, the excess of foreign currency in the economy would likely contribute to further appreciation of the GEL,” the review states.At its July 30 meeting, the NBG opted to keep the refinancing rate unchanged at 8%, citing a balance of risks.According to TBC Capital, non-cash spending remained stable across June and July, after three months of consecutive growth. This contributed to a slowdown in annual spending growth. Migrant and non-resident spending showed similar dynamics, with non-resident expenditures, a key real-time indicator of tourism, improving in July.Based on preliminary estimates from Geostat, Georgia’s economic growth in June was 6.3%, with an average of 7.1% for Q2.

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In total, in the first half of the year (H1/2025) it was 357 million GEL (H1/2024 – GEL 350 million. +2%Y.Y).According to the statistics of the National Bank of Georgia, conversion operating income in the TOP-10 with large assets increased to Cartu, Liberty, Credo and Bank of Georgia, while decreased to TBC, ProCredit and Basisbank.The consolidated figure also includes the trading of digital and microbanks. As of H1/2025, the largest amount, 322,000 GEL, falls on Paysera. Pave and MBC earned 150,000-150,000 GEL. Crystal has a loss of up to 3 million.Banks with profits from buying and selling currencies

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"Crystal" is the first microbank to join the Association," said Aleko Dzneladze, President of the Association. The banking lobby unites 14 members, including the digital Paysera Bank. The microbank market is currently represented by only 2 entities. The second, which preceded Crystal in obtaining a microbank license, is MBC. And the second microbank is expected to become a member of BAG."On behalf of the Association and the entire sector, we welcome Crystal as an organization with unique experience. Crystal will enrich the Association with experience in supporting micro and small entrepreneurs and their economic inclusion, experience in working with regions, and high corporate social responsibility. At the same time, by sharing the sector's experience, it will receive significant support from the Association in the implementation of banking processes, practices, and systems," noted Aleksandre Dzneladze, President of the Banking Association.

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As a result of the cancellation, the number of ordinary shares with voting rights in the group was determined at 36,537,357 (with an additional 30,000 shares in treasury).The program was approved by the Board of Directors in early July, increasing the previous USD 50 million share buyback and cancellation program by USD 18 million.The maximum price paid per share under the program shall not exceed the most recently published net asset value per share (NAV per share).The increase in the program represents the culmination of GCAP’s previously announced intention to allocate GEL 300 million for capital return by the end of 2026, a significant advance on this target.The 2025 Annual General Meeting (AGM) has approved a maximum of 5,233,275 shares to be repurchased. The program has been extended for three months, until October 2, 2025.

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As of the document, in June 2025, compared to the same period of the previous year, the estimated real growth in following activities contributed significantly: Information and communication, Manufacturing, Financial and insurance activities, Transportation and storage, Trade.Decline were registered in Construction and Energy sectors.

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About three-fourths of the all permits have been issued in four regions of the country, namely: 46.1% in Tbilisi, 12.3% in Kvemo Kartli region, 8.5% in Kakheti region and 6.8% in Mtskheta-Mtianeti region. It should be noted that in January-June of 2025, permissions were issued for the construction of multifunctional residential complexes, trade facilities, hotels, industrial enterprises, objects for agricultural purposes, and other buildings.1 540 objects (10.5% less compared to the previous year) with total area of 1 603.5 thousand square meters (0.2% more compared to the previous year) were completed in January-June of 2025.More than two-thirds of the completed constructions are distributed among four regions of the country, namely: 35.9 percent is located in Tbilisi, 12.6% - in Mtskheta-Mtianeti region, 11% - in Kakheti region, and 8.7% - in Kvemo Kartli region.

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