PMC Research has launched a new periodic publication entitled Sector Snapshots. Each issue focuses on a specific sector of the Georgian economy, observing developments with respect to key indicators of the given sector as a whole, the sector’s dynamics, its role in the overall economy, and, finally, financial indicators of companies within that sector.
The publication will produce valuable insights for businesses engaged in the covered sectors, as it lays out the trajectory of development for each sector and its possible financial bottlenecks, thereby contributing to more informed and efficient decision-making.
In the first issue of our new publication, we focus on Georgia’s microfinance sector.
In 2017-2019 new regulations on microfinance institutions (MFIs) entered into force, which significantly altered the landscape of the industry;
Between Q1 2017 and Q4 2020, the number of MFIs and employees in the sector fell, with the former dropping to 40 and the latter to 4145 by Q4 2020 (52% and 16% decrease, respectively);
In Q4 2020, MFIs in Georgia held 1.48 bln GEL of assets and 0.98 bln GEL of liabilities. In this period, the consolidated assets and liabilities of MFIs increased, compared to Q4 2019 with a growth of 7% and 9%, respectively. Compared to Q1 of 2017, figures decreased by 10% and 22%, respectively;
In 2020, gross income (revenue) of MFIs decreased, compared to 2019, and dropped by 13% to 814.9 mln GEL, while net income increased to 47 mln GEL. Moreover, the net income margin increased by 15 percentage points and reached 6%;
In 2020, the total amount of loans issued by MFIs (both to individuals and to legal entities) amounted to 4.58 bln GEL, while the number of loans issued amounted to 2.71 mln loans, which is 4% and 26% decrease, respectively, compared to 2018.