Return on equity (ROE) at leading banks in Georgia slumped last year as the eastern European country struggled with the impact of the Covid-19 pandemic. The country’s economy shrunk by 6.2% in 2020, according to the World Bank, as lockdown restrictions were implemented and tourism collapsed.
ROE at TBC Bank, the country’s largest bank by assets and Tier 1 capital, fell from 20.4% in 2019 to 11.0% in 2020, while at Bank of Georgia, the second-largest bank by both metrics, ROE dropped from 23.2% in 2019 to 11.6% in 2020, according to The Banker Database.
