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CEO of Halyk Bank Georgia Evaluates the Year of 2015

The Fitch rating for the Georgian bank sector is “Stable”. This signifies considerable reserves of commercial banks will compensate the quality of assets affected by the GEL depreciation. The 36% devaluation was the main challenge in 2015. The bank sector has showed steadiness amid the GEL depreciation, GDP growth slowdown and a demand contraction in exports markets. The Georgian bank sector has maintained positive indicators.

According to the International Monetary Fund (IMF), the conservative approaches in the supervision part has maintained the positive indicators. According to the Financial Sector Assessment Program (FSAP), the Georgian practice is recognized as the most advanced one.

The risk-oriented supervision frameworks enabled to identify risks in the early phase (all potential bank risks are assessed).

Loan interest rates have considerably decreased. They have halved for the last 5 years.

Shota Chkoidze The Deputy CEO of Halyk Bank Georgia reviews the year and notes that 2015 has been challenging for the bank and next year will be more innovative and productive.

Halyk Bank Georgia, a member of Halyk Group Kazakhstan, operates in Georgia since 2008. We run an universal banking business targeting corporate, SME and retail sectors. Although 2015 can be characterized as the one of many challenges for the Bank, especially currency devaluation and related debt service deterioration, as well as increased competition, still the Bank forecasts achievement of all strategic goals by the end of the year. Namely, Halyk Bank Georgia received an international credit rating from Fitch as BB-, outlook stable; is going to reach more than 55% growth of loan portfolio and almost to double the net profit.

At the same time, the bank follows conservative approach in credit activities, which in turn realized in the one of the best quality portfolios in the market.

This year bank opened another branch in Tbilisi reaching total number of branches to 6, had significant progress in cards business, ecommerce, became a principle member of VISA and associated member of MasterCard; Halyk Bank Georgia was the first and still is the only one who offers SME and corporate businesses mobile POS terminals enabling them a more attractive way of accepting payments. As a result the Bank managed to improve overall service portfolio.

Halyk Bank Georgia continues to emphasize on increasing the quality of services provided and in 2016 plans to propose to customers new and interesting products.