Bank loan growth accelerated in April 2021
In April 2021, the banking sector loan portfolio growth accelerated to 9.8% y/y (+1.4% m/m), excluding FX effect, after a 7.7% y/y growth in previous month. In unadjusted terms, loan portfolio was up 17.4% y/y (+2.9% m/m), amounting to GEL 40.1bn (US$ 11.6bn). By sector, loan growth accelerated in both corporate and retail segments to 8.0% y/y and 11.6% y/y, respectively (exc. FX effect) in April. Notably, newly issued mortgages surged by 1,563% y/y, bringing mortgages stock growth to 11.3% y/y, after growing 9.8% y/y in previous month (exc. FX effect). In April 2021, loan dollarization stood at 55.4% (-2.29ppts y/y and +0.32ppts m/m) and NPLs stood at 2.3% (flat y/y and -0.11ppts m/m).
Bank deposits increased by 22.1% y/y (-2.2% m/m, exc. FX effect) to GEL 35.6bn (US$ 10.3bn) in April 2021, after growing 21.7% y/y in previous month. By currency, GEL deposit growth accelerated to 40.2% y/y, while FX deposit growth slowed to 12.6% y/y (exc. FX effect). The deposit dollarization stood at 62.7% (-2.94ppts y/y and -0.75ppts m/m).
