Loan portfolio growth slowed to 16.3% y/y in Jul-22
In Jul-22, the banking sector loan portfolio growth slowed to 16.3% y/y (-0.4% m/m), excluding FX effect, after a 18.7% y/y growth in previous month. In unadjusted terms, loan portfolio growth was 6.3% y/y (-3.6% m/m) to GEL 42.1bn (US$ 15.2bn), after growing by 11.3% in June. The slowdown was mainly driven by corporate loan sector growing by 13.2% y/y (+16.9% y/y in previous month, exc. FX effect), while retail loans growth came in at 19.2% y/y (+20.4% y/y in previous month). The mortgages increased by 14.3% y/y in July after growing by 14.2% y/y in previous month. In Jul-22, loan dollarization reduced markedly to 45.8% (-6.15ppts y/y and -2.57ppts m/m) and NPLs stood at 2.0% (-0.30ppts y/y and +0.08ppts m/m).
Contrary to loans, deposits growth accelerated further to 20.5% y/y (+5.0% m/m, exc. FX effect) to GEL 38.8bn (US$ 14.0bn) in Jul-22, after a 17.4% y/y growth in previous month. By currency, in July, both GEL and FX (exc. FX effect) deposits growth accelerated, increasing by 18.9% y/y (from 16.6% y/y growth in previous month), and 21.6% y/y (from 17.9% y/y growth in previous month), respectively. The deposit dollarization reduced to 56.9% (-3.10ppts y/y and -1.02ppts m/m).
