NPLs at 3.9 y/y in July 2016
In July 2016, the banking sector loan portfolio increased 8.4% y/y after growing 8.2% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 10.5% y/y and 1.4% m/m to GEL 16.6bn (US$ 7.1bn). Deposits were up 13.2% y/y, excluding the exchange rate effect, driven by FX-denominated deposit growth, resulting pick up in deposit dollarization to 68.9% in July from 67.3% in previous month. In nominal terms, deposits were up15.3% y/y and 3.1% m/m to GEL 14.8bn (US$ 6.3bn). NPLs stood at 3.9% in July 2016, up 0.6ppts y/y and up 0.2ppts m/m.
NBG intervenes FX market
Last week, NBG intervened on the FX market 2 times. On 22 August the bank purchased US$ 20mn and sold the same amount on August 25, aimed at curbing excessive fluctuation of the national currency. Overall, NBG’s net interventions amounted to US$ 198mn YTD (purchase of US$ 278mn and sale of US$ 80mn). Last week, GEL strengthened 0.9% w/w and 4.3% YTD against US$.
