NPLs at 2.3% in October 2020
In October 2020, the banking sector loan portfolio increased by 11.4% y/y and 0.9% m/m (exc. FX effect). In unadjusted terms, loan portfolio was up 18.2% y/y and flat m/m amounting to GEL 36.4bn (US$ 11.2bn). By currency, the GEL-denominated loans growth accelerated to 16.5% y/y (+1.3ppts m/m), after an average 14.6% y/y growth in August-September 2020. Meanwhile, foreign currency loan growth slowed to 7.3% y/y (exc. FX effect), after average growth of 10.0% in August-September 2020. By sector, corporate lending growth slowed to 11.3% y/y and 1.1% m/m, and retail loan growth remained flat at 11.5% y/y (exc. FX effect) in October. Notably, newly issued mortgages increased significantly (+76.0% y/y and +14.1% m/m), bringing mortgages stock growth to 10.8% y/y (exc. FX effects). In October 2020, loan dollarization stood at 55.7% (+0.40ppts y/y and -1.25ppts m/m) and NPLs stood at 2.3% (-0.31ppts y/y and +0.04ppts m/m).
Bank deposits increased by 15.8% y/y and reduced 0.8% m/m (exc. FX effect) to GEL 32.3bn (US$ 10.0bn) in October 2020. Both, GEL and FX deposit growth slowed in October and deposit dollarization reached 62.2% (-1.66ppts y/y and +0.65ppts m/m).
NBG sold US$ 46.6mn
On 25 November 2020, the NBG intervened on the FX market and sold US$ 46.6mn out of offered US$ 50mn to limit GEL volatility. This was 24th FX intervention YTD for a total sale of US$ 823.4mn through FX auctions.
