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Georgian Banking Sector Overview Q3 2016

Georgian Banking Sector Overview Q3 2016

This report summarizes and analyzes the financial results of the 17 commercial banks of Georgia for the 3rd quarter of 2016, as well as provides some insights into the recent developments in the sector.



Irina Gevorgyan

Partner, Advisory

KPMG in Georgia


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General highlights

In September 2016, more than 60% of the Georgian Banking sector was traded under the Premium Listing on the London Stock Exchange.

In September 2016, TBC Bank Group PLC announced that, together with its subsidiary, JSC TBC Bank, it had entered into a definitive agreement with Societe Generale S.A. to acquire its 93.64% stake in its Georgian subsidiary, JSC Bank Republic for GEL 315 million. In October TBC Bank has become owner of 100% stake in Bank Republic. Nikoloz Kurdiani was appointed as a CEO of the bank. TBC bank plans subsequent merger of the two banks.

In September 2015 NBG revoked the banking license of Caucasus Development Bank -Georgia and the bank moved to a liquidation regime.

In October 2016, Progress Bank cancelled its license for banking activates and became a non-banking service operator institution. Later TBC Bank announced about acquisition of Progress Bank's portfolio.

In October 2016, TBC acquired Kopenbur insurance company.

In November 2016, the National Bank of Georgia made a decision to revoke the banking license of JSC Capital Bank. As a result, the bank has moved to a liquidation regime. The NBG Auditing process detected that the bank had ignored requirements for prevention of legalizing illegal revenues, as well as various facts of violation of NBG regulations, resolutions and instructions.

In November 2016, shareholders of Terabank took a decision to increase the bank’s stock capital by GEL10,372,000.

In December 2016, Bank of Georgia plans to buy ProCredit Bank’s portfolio of micro and small business loans. The parties have already reached agreement and payment will be fulfilled in cash. Through this deal Bank of Georgia plans to strengthen positions in segment of small and micro business. As a result of this deal, Bank of Georgia will attract 2 400 new micro and small business clients and increase net value of loans portfolio by 120 million GEL.

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© 2020 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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