The Fitch rating for the Georgian banking sector is “Stable.” This signifies considerable reserves of local commercial banks will compensate for the quality of assets affected by GEL depreciation.
The 36% devaluation was the main challenge in 2015. The bank sector has shown steadiness amid GEL depreciation, GDP growth slowdown and a demand contraction in exports markets. The Georgian banking sector has maintained positive indicators.
Archil Kontselidze, the director general of VTB Bank Georgia reviews the last year’s banking performance on Georgian market.
VTB Bank Georgia is finishing the outgoing year with a success. Despite the economic complications, the bank has finished the year in profits. We have introduced new products, unveiled new service centers in Tbilisi and the regions. Our assets rose by over 20% and the capital grew by 35%.
The Bank has carried out important corporate social responsibility projects throughout the year and our total contribution marked 3 million GEL. The money was spent on promotion of Georgian sports, culture and on conducting charity projects.
The 30% devaluation of the national currency was the main challenge in 2015, but these problems arose in the whole region and the same scenario was developed in neighboring countries too.
Nevertheless, the Georgian economy maintained steadiness compared to the neighboring countries and the 2016 forecast will exceed 2%.
These processes have naturally affected the Georgian bank sector too. In 2016, we plan to maintain the growth pace, open new branches, introduce new products and expand our services.