In Q1 2026, microfinance organizations (MFOs) in Georgia saw a net profit of GEL 51.1 million, as per financial data provided to the National Bank. Consolidated figures show that sector-wide profit increased by 76% year-on-year, totaling an additional GEL 22.2 million compared to the same period of 2025.
MFOs saw GEL135 million in interest income in Q1 that is 43% mopre compared with the previous year. Loans secured by pawnshops were the main reason for growth generating GEL 91.8 million in interest, up 57% from last year. Commission and fee income plummeted by 18% to GEL 18 million. On the expense side, employee salaries remained unchanged at GEL 29 million, while rental costs reached GEL 4 million, depreciation GEL 2.6 million, and other non-interest expenses GEL 7.7 million.
The sector’s total loan portfolio reached GEL 2 billion, marking 32% annual growth, or an increase of GEL 501 million. This expansion also stems largely from pawnshop lending: the portfolio rose from GEL 1.17 billion a year earlier to GEL 1.63 billion - a 39% or GEL 456 million increase. Pawnshop loans now account for 79% of all lending in the microfinance sector.
MFOs currently hold GEL 1.48 billion in pledged gold and jewelry, GEL 135 million in pledged vehicles, and GEL 9.7 million worth of real estate.
