Record Profits for Georgia’s Commercial Banks: A Snapshot of Q1 2025

In the first quarter of 2025, Georgia’s financial sector once again demonstrated its resilience and growth potential. According to financial reporting data released by the National Bank of Georgia (NBG), the net profit of commercial banks and microbanks reached 748.283 million GEL as of the end of March. This figure includes a remarkable 286.219 million GEL in net profits generated in March alone, up from 462.064 million GEL for January and February combined—further underlining the sector’s accelerating momentum.

One of the most striking findings is that over 91% of total net profit is concentrated in just two major banks: Bank of Georgia and TBC Bank. Bank of Georgia posted a net profit of 387.780 million GEL, while TBC Bank followed closely with 294.371 million GEL. These figures clearly reflect the high level of market concentration, which—while suggesting stability—also raise concerns about limited competition.

Other profitable banks reported significantly lower earnings. For example, Liberty Bank earned 29.791 million GEL, and BasisBank made 23.227 million GEL. Other banks in this tier include Credo Bank, Cartu Bank, Terabank, ProCredit Bank, Halyk Bank, Işbank Georgia, microbank Crystal, Ziraat Bank Georgia, and MBC, all of which demonstrated positive—albeit much smaller—net income, signaling progress toward stable growth trajectories.

However, not all institutions shared in the sector’s success. In Q1 2025, six banks reported net losses. The largest was VTB Bank Georgia, with a loss of 33.548 million GEL. Other loss-making banks included Silk Bank (-5.268 million GEL), HES Bank (-2.089 million GEL), Pasha Bank Georgia (-915,000 GEL), Payv Bank Georgia (-174,000 GEL), and Paysera Bank Georgia (-36,000 GEL).

In total, Georgia’s financial market comprised 17 commercial banks and 2 microbanks during this period. This structure reflects a continuing trend of consolidation within the sector, where a few major players dominate, while smaller institutions are still striving to establish solid market positions.

Several key factors contribute to the high profitability of commercial banks in Georgia. These include macroeconomic stability, relatively low inflation, a stable exchange rate for the Georgian lari, and rising demand for banking services from both businesses and individuals. In addition, the ongoing development of digital banking services, expanded remote customer support, and an increase in retail lending are all generating additional income streams for banks.

Yet the high level of market concentration also raises valid concerns about competitiveness and the long-term viability of smaller banks. If diversification is not achieved and smaller players are unable to scale their growth, the sector could face intensified consolidation, with even greater reliance on a handful of dominant institutions.

Against this backdrop, 2025 is shaping up to be a pivotal year for Georgia’s financial sector—marked by both notable successes and emerging challenges. The latest quarterly results confirm that strong economic fundamentals, adaptive regulations, and the strategic implementation of digital transformation remain the cornerstone of profit maximization for banks in Georgia.