Banking Sector’s Losses in January-May Amounted to 613 million GEL
Fifteen Georgia-based commercial banks ended the January-May period in losses of 613 million GEL, the financial reports published by the National Bank of Georgia (NBG) read.
According to the financial reports, the losses were primarily preconditioned by the 1.2 billion reserved by commercial banks against losses. On the whole, Georgia-based commercial banks booked 1.22 billion GEL as the buffer against possible losses of assets.
The NBG released explanations over the structures of losses in March 2020. Under the document, in previous years, the field recorded huge profits, and this factor enabled commercial banks to reserve adequate amounts of financial resources for crisis periods.
As for operations, in May consolidated incomes of 15 commercial banks amounted to 362 million GEL, up 1% year on year, including interest incomes amounted to 306 million GEL, up 6% year on year. The growth was primarily preconditioned by an 18% upturn in profits from business loans.
Meanwhile, incomes from retail loans declined by 4% as a result of 3-month grace period on loans.