Weekly Market Watch
Loan and deposit growth accelerated in October 2021
In October 2021, the banking sector loan portfolio growth was 16.1% y/y (+1.1% m/m), excluding FX effect, after a 15.8% y/y growth in previous month. In unadjusted terms, loan portfolio was up 14.7% y/y (+1.7% m/m), amounting to GEL 41.7bn (US$ 13.2bn). By sector, corporate loan growth slowed slightly to 16.5% y/y (exc. FX effect) in October, from a 16.9% y/y growth in previous month, while retail loan growth accelerated to 15.7% y/y from 14.8% y/y in previous month. In October 2021, loan dollarization came in at 51.3% (-4.37ppts y/y and -0.09ppts m/m) and NPLs stood at 2.1% (-0.21ppts y/y and -0.05ppts m/m).
Bank deposits growth accelerated to 14.2% y/y (+0.6% m/m, exc. FX effect) to GEL 36.4bn (US$ 11.5bn) in October 2021, from 12.7% y/y in previous month. By currency, GEL deposits were up 17.0% y/y and FX deposits increased 12.4% y/y (exc. FX effect) in October. The deposit dollarization stood at 60.8% (-1.46ppts y/y and +0.05ppts m/m).