Sanctioned VTB Bank Georgia posts profit

By bne IntelliNews August 30, 2023

VTB Bank Georgia, subject to US Treasury sanctions, has reported a net profit of GEL15 million ($6mn) in the initial half of 2023, ranking eighth among the 15 commercial banks in the country. 

Despite divesting a significant portion of its assets and liabilities, VTB Bank Georgia maintains residual deposits and loans that continue to generate income. Formerly boasting GEL2.1 billion in assets, a GEL1.6 billion credit portfolio, and a GEL1.6 billion deposit portfolio, the bank's present financials reflect reduced figures, with assets at GEL413 million, a GEL202 million  loan portfolio, and a GEL22 million deposit portfolio.

The financial report highlights diverse revenue streams: GEL7.5 million  from loans, GEL0.7 million  from securities, and GEL17.7 million  in profit due to foreign exchange fund revaluation. Non-interest income totaled GEL19.6 million . The bank's interest expenses reached GEL5.4 million , while non-interest expenses, including GEL4.7 million  for administration, summed up to GEL9 million. Consequently, the bank's net profit stands at GEL15 million .

Russian VTB Bank holds a controlling 97% share of the bank, with the ultimate beneficial owner being the State of the Russian Federation, owning 60%.

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