Posted: 1 year ago

Credo Bank Approaches ₾2 Billion in Portfolio: A Look at Georgia's Lending Landscape

Credo Bank, one of Georgia's leading financial institutions, is inching closer to a significant milestone with its lending portfolio approaching ₾2 billion.

Despite a slowdown in year-on-year lending growth from 17.8% to 13.3%, the bank continues to maintain a steady pace of growth. In February, the bank experienced a slight decrease of ₾9.5 million, which accounts for only 0.02% month-on-month.

The latest data from SEB Statistics reveals that as of March 1, 2023, the total lending portfolio of Georgian banks amounts to ₾44.45 billion. Of this total, ₾24.6 million is denominated in local currency, while ₾19.9 million is in foreign currency.

Looking more closely at the data, it becomes evident that the majority of the loans (₾19.7 billion) have been granted to resident legal entities for business financing. This figure includes ₾7.35 billion in local currency and ₾12.3 billion in foreign currency. As of March 1, 2023, the retail portfolio's share of the total investment has increased to 55.7% (up from 50.8% in 2022), amounting to ₾24.8 billion.

In terms of dollarization ratio, the business loans dollarization ratio has decreased to 62.8% (down from 67.9% in 2022), while the retail portfolio dollarization ratio has also decreased to 29.8% (down from 35.9% in 2022).

Overall, while there has been a slight slowdown in lending growth, the Georgian banking sector remains stable, with Credo Bank leading the way with its impressive portfolio nearing the ₾2 billion mark. As the economy continues to grow, it will be interesting to see how the lending landscape evolves and adapts to meet the changing needs of businesses and consumers alike.