Weekly Market Watch

Bank lending increased by 18.6% y/y in Aug-24
In Aug-24, the banking sector loan portfolio increased by 18.6% y/y (+1.1% m/m), excluding FX effect, after a 18.3% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 20.1% y/y (+0.9% m/m), reaching GEL 57.7bn (US$ 21.4bn), after growing 19.6% y/y in Jul-24. By sector, corporate loans grew by 20.7% y/y (excluding FX effect), while retail loans increased by 16.8% y/y. Loan dollarization reduced further to 43.9% (-1.03ppts y/y and -0.34ppts m/m) in Aug-24.
On the deposits side, there was a 15.3% y/y increase (excluding FX effect) to GEL 56.1bn (US$ 20.9bn) in Aug-24, following a 15.0% y/y growth in the previous month. In terms of currency breakdown, GEL deposits increased by 21.2% y/y and FX deposits (exc. FX effect) were up 9.3% y/y. Consequently, deposit dollarization also reduced further to 47.8% (-1.91ppts y/y and -0.68ppts m/m) in Aug-24.

NBG purchased US$ 41.0mn in Aug-24
In Aug-24, NBG purchased US$ 41.0mn through the BMatch platform amid strong FX inflows. Overall, the NBG was a net buyer of US$ 109.8mn in 8M24, having purchased US$ 329.5mn and sold US$ 219.8mn.