Real GDP growth was 6.5% y/y in April 2018
Georgia’s economy grew by 6.5% y/y in April 2018 (highest since July 2014) after growing 5.6% y/y in previous month, according to GeoStat’s rapid estimates. In April 2018, the growth was posted in social and personal service activities, transport, manufacturing, financial intermediation, trade, and real estate sectors. Overall, real GDP growth was 5.5% y/y in 4M18. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
NPLs at 2.6% in April 2018
In April 2018, the banking sector loan portfolio increased 22.1% y/y after growing 21.6% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 19.8% y/y and up 2.2% m/m to GEL 22.7bn (US$ 9.2bn). Deposits were up 21.8% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 22.7% y/y and up 1.3% m/m to GEL 19.9bn (US$ 8.1bn). Deposit dollarization declined to 62.4% (-6.2ppts y/y and -0.4ppts m/m). NPLs stood at 2.6% in April 2018 (-1.2ppts y/y and +0.2ppts m/m).
BGEO demerger finalized
On 29 May 2018, Bank of Georgia Group PLC (new parent company of BGEO Group PLC) demerged into two separate companies – 1) Bank of Georgia Group PLC and 2) Georgia Capital PLC. Both companies are admitted to the premium listing segment of the Official list and to trading on the London Stock Exchange’s main market for listed securities. Bank of Georgia Group PLC retained its existing ticker “BGEO” and Georgia Capital PLC’s shares are traded under the ticker “CGEO”. After the demerger Bank of Georgia Group PLC remains in the FTSE 250 and Georgia Capital PLC has been included in the FTSE Small Cap index.
