BAKU, Azerbaijan, November 29. Fitch has revised the operating environment score for Georgian banks to 'bb'/Stable from 'bb-'/Stable, Trend reports via Fitch.
The upward revision reflects resilient bank performance amid heightened political uncertainty and a material strengthening of sector credit metrics since 2022, particularly capitalization and profitability.
These improvements are sector-wide, but most benefits accrue to the two largest banks, including TBC, which together constitute around 80% of sector assets.
Strong economic conditions continue to support banks' metrics, which have remained resilient to political tensions. A significant inflow of migrants, strong information and communication technology and tourism sectors, and a greater role in the transit trade have boosted the Georgian economy's dynamism, with real GDP growth averaging 9.5% in 2022-2024.
Fitch expects growth of 7.3% in 2025, and an average of 5.2% in 2026-2027. Increased political tensions in Georgia have not materially affected customer and investor confidence or banks' performance.
Fitch Rating has revised the outlooks for Bank of Georgia, ProCredit Bank (Georgia), TBC Bank JSC and JSC Halyk Bank Georgia to Stable from Negative.