Record profit and for banks with losses - what are the indicators of the banking sector activities

2023-02-28 09:00:48

In 12 months of 2022, banks earned up to GEL 1.9 billion in net profit. Most sector players managed to make a profit in the second quarter, four representatives of the Georgian banking sector - "VTB Bank", "Silk Road Bank", "Pasha Bank", "Paysera Georgia" ended last year with a loss. "VTB" saw the worst loss of GEL 51 million, while in the same period of last year the bank was in profit. The second in the loss-making banks rating is "Pasha Bank", which did not make a profit in the past years either, followed by "Silk Bank” and "Paysera", a new player on the market which has not yet started operating.

Commercial banks ranking by profit/loss (12 months of 2022):

• TBC Bank - GEL 967,251,772

• Bank of Georgia - GEL 924,342,950

• BasisBank - GEL 53,210,417

• Liberty Bank - GEL 66,939,612

• ProCredit Bank - GEL 46,056,825

• Terrabank - GEL 27,859,725

• Cartu Bank - GEL 46,386,743

• Credo Bank - GEL 30,662,512

• Isbank - GEL 16,734,547

• Halyk Bank - GEL 10,105,451

• Ziraat Bank - GEL 6,102,205

• VTB Bank - loss of GEL 51,303,739

• Pasha Bank - loss of GEL 2,131,967

• Silk Bank - loss of GEL 2,883,983

• Paysera Bank Georgia — loss of GEL 269,855.

The reason for the loss was that "VTB Bank Georgia" was among the Russian banks under sanctions imposed by the USA, Great Britain, the European Union and other countries due to the military actions carried out by Russia in Ukraine. The sanctioned "VTB Bank" sold the portfolio of individuals and legal entities in Georgia. As a result of the transaction, "Basis Bank" purchased the retail loan and deposit portfolio, and Liberty Bank bought part of small and medium business portfolio.

"Silk Bank" was the only bank that ended the second quarter of the pandemic year with a profit, it earned GEL 253,512 in net profit in 6 months of 2020, while in the same period of 2019, the bank saw a loss of GEL 358,804. Last year, the bank changed its name from Silk Road Bank to Silk Bank.

"Paysera Bank Georgia" is the first digital bank in Georgia, which is currently working in test mode. The National Bank of Georgia granted a digital banking license to Paysera Georgia JSC, on November 17, 2022. Paysera Georgia JSC will be working in test mode for 7 months after obtaining the banking license and will be able to implement a limited number of banking activities in real environment. The bank will be authorized to implement banking activities in real environment step by step, as it meets the license requirements, subject to the NBG approval.