Bank lending grew by 15.1% y/y in May-25
In May-25, the banking sector loan portfolio grew by 15.1% y/y (+1.1% m/m), excluding FX effect, following a 15.5% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 14.7% y/y (+0.7% m/m), reaching GEL 64.7bn (US$ 23.7bn), after growing 17.8% y/y in Apr-25. By sector, loans to legal entities grew by 15.7% y/y (excluding FX effect), while retail loans increased by 14.5% y/y. Loan dollarization reduced to 42.9% (-0.39ppts m/m and -2.76ppts y/y) in May-25.
On the deposits side, there was a 11.9% y/y increase (excluding FX effect) to GEL 58.9bn (US$ 21.3bn) in May-25, following a 10.2% y/y growth in previous month. In terms of currency breakdown, GEL deposits growth accelerated, up by 9.1% y/y (+3.8% y/y in Apr-25) and FX deposits (exc. FX effect) increased by 15.9% y/y (+17.0% y/y in Apr-25). Notably, deposit dollarization reduced sizably by -1.40ppts m/m to 50.8% in May-25, but it is still up 0.98ppts y/y.
NBG purchased US$ 245.4mn in May-25
Supported by GEL appreciation in May 2025, the NBG intervened in the FX market and bought US$ 245.4mn to build reserves. Cumulatively, the NBG purchased US$ 613.5mn in 5M25.
