Georgian Banking Sector Overview rd Quarter Results

Transcription

1 Georgian Banking Sector Overview 217 3rd Quarter Results December, 217

2 Contents Page Basis of Preparation 2 At a Glance 4 General Highlights 5 Sector Highlights 6 Bank Profiles 7 Appendix 1: Shareholding Structure & General Information 23 Appendix 2: Sector Insights 25 Appendix 3: Key Financial Indicators 27 Appendix 4: Bank Contact Details 31 Glossary of Terms KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 2

3 Basis of Preparation This report summarizes and analyzes the financial results of the 16 commercial banks of Georgia for the 3rd quarter of 217, as well as provides some insights into the recent developments in the sector. The financial information has been obtained from the published interim reports for the 3rd quarter of 217. The banks are listed in the alphabetical order throughout the publication. We have used simple headline numbers in our analysis unless stated otherwise; each bank has its own way of reporting performance and this has proved to be the most consistent method of presenting their results. All the key ratios are calculated based on the obtained data unless stated otherwise. The general information, such as the number of branches, employee headcount, etc., are mainly taken from the Notes to the Financial Statements prepared by the banks. The official websites of the banks serve as the only alternative source, however they are not always properly updated. Due to this, the figures presented may not necessarily be as of 3 September 217. There may be figures more up to date or of an earlier date depending on the latest available information published by the banks. The main source of news is the official websites of the banks and the National Bank of Georgia, as well as the official press releases published by various news agencies. 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of

4 At a Glance The banking system remains the biggest part of the Georgian financial market. As of 3 September 217, there were 16 commercial banks operating in Georgia, while the number of banks was 17 in the same period of 216. Key Financial Indicators of the Georgian Banking Sector (in million GEL)* Key Financial indicators** 217 Q Q / / *** 32,313 3,149 25, % 24.34% Loan portfolio 2,324 18,934 16, % 22.3% Liabilities 28,1 26,171 22, % 26.85% Deposits**** 18,349 16,991 14, % 23.16% 4,212 3,978 3, % 9.85% Share Capital (3.37%) (4.66%) ***** 2,314 2,75 1, % Interest income 1,996 2,366 1, % Provision Expenses (46.55%) Net profit after taxes % * The difference between the table and other information provided in the report might be caused by the different bases of preparation of financial information by the National Bank of Georgia. ** The indicators of the financial position are as of the last day of the corresponding period *** The change for the financial performance indicators is for the periods of the first 9 months of the years **** The figure does not contain bank deposits ***** The total income consists of interest income and fee and commission income Non-performing loan rates for the Georgian banking sector 9.% 8.7% 8.% 7.% 6.45% 6.% 5.% 4.% 3.% 2.% 1.%.% 217 Q3 216 Q3 Top Ten Banks of the Georgian Banking Sector as of 3 September 217 (in thousand GEL)****** 12,, 1,, 8,, 6,, 4,, 2,, 1,2, 1,, 8, 6, 4, 2, Loans (right axis)* Net profit after taxes (right axis) 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 4

5 General highlights Currently there are 16 commercial banks operating in the Georgian market. In November 216 National Bank of Georgia made the decision to revoke the banking license of JSC Capital Bank, in the first quarter of 217 NBG issued a banking license to JSC Credo Bank, while in May 217 TBC Bank and Bank Republic merged. From May 217 Ziraat Bankasi A.S. Tbilisi Branch offers services in Georgia as a Joint Stock Company called JSC Ziraat Bank Georgia. According to the new NBG regulation from June 217 commercial banks are obliged to disclose qualitative and quantitative information relating to a bank s regulatory capital elements, risk weighted assets, remuneration of senior management, etc., within the frameworks of Basel III. In July BGEO Group has released a statement on separation of banking and investment businesses. Namely, Bank of Georgia and the group s investment business will be demerged. Previously, BGEO Group united both Bank of Georgia and the investment business. At the end of July, the CEO of the Iran Chamber of Commerce, Rahim Abachi told CBW exclusively that Mellat Bank recently has been actively spreading information in the Iranian media about the plans on entering the Georgian market. According to Mr. Abachi, the talks about the entrance started in May. According to the Iranian Financial Tribune, Mellat Bank Yerevan, a subsidiary of Iran s Bank Mellat, was planning to open a new branch in Georgia by the end of the first half of the current Iranian year, said Bank Mellat s chief executive. On August 1 the National Bank of Georgia (NBG) amended the Regulation on Asset classification and the creation and use of Reserves for Losses by Commercial Banks. Namely, retail loans issued after November 3, 217 shall fulfill the minimum requirements of PTI (payment-to-income) and LTV (loan-to-value) ratios. On August 15 the National Bank of Georgia (NBG) amended the Regulation on Capital Adequacy Requirements for Commercial Banks based on Basel III. Namely, risk position limit of related borrowers has increased significantly (from GEL 35, to GEL 2 million). According to NBG, this will enable commercial banks to allocate SME loans to the retail assets class, therefore, SME financing will increase. In August JSC Bank of Georgia signed a one-year $75m trade finance facility arranged by Citi in collaboration with the bank s long-term partner international financial institutions Asian Development Bank and International Finance Corporation. On October 16 JSC Liberty Bank announced a change of control, whereby European Financial Group B.V. ( EFG ), a company established and organised under the laws of the Kingdom of Netherlands, purchased 74.64% of the equity interest in the Bank. In November TBC Bank has signed two guarantee agreements of EUR 94 million with European Investment Bank Group (EIB Group). The EUR 8 million guarantee agreement known as the EU Funding for Innovators (InnovFin) will be spent on development of innovative small and medium companies in Georgia; The EUR 14 million agreement known as the EU for Business will support the development of micro companies. Sources: Caucasus Business week 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 5

6 Sector Highlights Compared with the same period of 216, the banking system assets grew by 24.3% and reached GEL 32.3 billion as of 3 September % 22.% Loans Loan provision expenses (46.6)% 23.2% Nonbank deposits 17.9% income 3.5% Net profit 9.9% For the 12 months period ended 3 September 217 the return on assets (ROA) for the Georgian banking system was 2.%, while the same indicator amounted to 2.6% in the same period of 216. As of 3 September 217 TBC Bank held the largest part of the total banking sector s assets, while Bank of Georgia was the second largest. As of 3 September 217 the total amount of outstanding loans grew by 22.% compared with the same period of 216 and reached GEL 2.3 billion. As of 3 September 217 the ratio of customer loan portfolio to total assets for the Georgian banking system was 62.7%, while the same ratio was around 63.5% as of 3 September 216. For the end of Q3 217 the loan provision expenses of the Georgian banking sector decreased by 46.6% compared with the same period of the 216, and amounted to GEL.12 billion. From 3 September 216 to 3 September 217 the ratio of loan loss reserves to total loan portfolio decreased from 6.8% to 5.6%. The balance of non-bank deposits as of 3 September 217 increased by 23.2% compared with the same date of 216, reaching GEL 18.3 billion. As of 3 September 217 the loan portfolio/ non-bank deposit ratio for the Georgian banking system was 1.1. The ratio was higher 1.11 as of 3 September 216. As of 3 September 217 the total equity of banks reached GEL 4.2 billion, showing a 9.9% increase compared to the same figure as of 3 September 216. For the 12 months period ended 3 September 217 the return on equity (ROE)* for the Georgian banking system was 14.5%, while ROE for the same period of 216 was 17.9%. The ratio of equity to assets as of the 3 September 217 was 13.%, while the same ratio was around 14.8% as of 3 September 216. For the Q3 of 217, the banking system had total income (interest income plus fee and commission income) of GEL 2.3 billion, which exceeded the total income for the same period of 216 by 17.9%. The net profit of the banks for the period was GEL.6 billion, which is 3.5% higher compared with the same period of 216. ROA 2.% Loan portfolio/ assets 62.7% Loan loss reserve/ loans 5.6% Loan portfolio/ non-bank deposits 1.1 ROE 14.5% 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 6

7 Bank Profiles Bank of Georgia Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / ,762,515 1,765,87 8,616, % 2 (.3%) 24.9% Loan Portfolio 6,451,737 6,629,42 5,312, % 2 (2.67%) 21.43% Liabilities 9,513,969 9,499,861 7,522, % 2.15% 26.48% Deposits 6,148,37 5,773,512 4,643, % % 32.42% 1,248,546 1,265,946 1,94, % 2 (1.37%) 14.5% Share Capital 25,911 27,812 25, % 1 (6.84%).% **** 849,335 1,76, , % % Interest 72,137 98,42 69, % % Net Profit/ loss 286,71 289,94 15, % % * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, Key Indicators of Financial Performance, 12,, 1,, 8,, 6,, 4,, 2,, As of As of ,, 8, 6, 4, 2, As of As of Key Ratios Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity to Loan Portfolio 7.22% 3.76% 5.32% 11.8% 11.6% Liabilities Deposits 16.17% 22.21% 33.79% Share Capital.% 2.% 4.% 6.% 8.% 1.% Rankings 2 nd rank by the assets 2 nd rank by the loan portfolio 2 nd rank by the liabilities 2 nd rank by the deposits 2 nd rank by the equity 1 st rank by the net profit after tax 1 st rank by the total income 1 st rank by the interest income 1 th rank by the share capital July August September Interest Net Profit/ loss after Taxes Moody s Investors Service has upgraded the credit rating of JSC Bank of Georgia (local-currency deposit rating to Ba2 from Ba3, and foreigncurrency deposit rating to Ba3 from B1). In the light of the Group s proposed demerger BGEO separated the Group s and the Bank s CFO functions and repositioned the Bank s management team. 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 7

8 Bank Profiles (continued) Basis Bank Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Rank Change** / / ,25,898 94,157 86, % % 49.61% Loan Portfolio 72,797 69, , % % 58.6% Liabilities 1,23,2 754,388 64, % % 59.69% Deposits 67, ,27 519, % % 29.7% 182, , , % 5 (1.65%) 1.53% Share Capital 16,97 16,57 16, % 15.25%.25% **** 59,231 7,17 51, % % Interest 54,695 65,953 47, % % Net Profit/ loss 17,186 25,466 18, % 4 (7.55%) Key Indicators of Financial Position, Key Indicators of Financial Performance, 3,, 2,5, 2,, 1,5, 1,, 5, Key Ratios Loan Portfolio Liabilities Deposits As of As of Share Capital 3, 25, 2, 15, 1, 5, Rankings As of As of Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy 4.46% 13.6% 2.37% 4.41% 15.32% 16.19% Among the top ten banks by all financial indicators, except share capital Liquidity 36.56% to 15.15%.% 2.% 4.% 6.% 8.% 1.% Basis Bank announced attraction of USD 15 million from Chinese Development Bank. July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 8

9 Bank Profiles (continued) Cartu Bank Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % ,234,854 1,42,363 1,149, % 6 (13.6%) 7.46% Loan Portfolio 81,58 937,5 92, % 6 (13.5%) (1.18%) Liabilities 1,3,827 1,142,17 963, % 6 (9.75%) 6.99% Deposits 664,77 747,61 719, % 6 (11.8%) (7.58%) 24,27 278, , % 4 (26.66%) 9.87% Share Capital 114,43 114,43 114, % 3.%.% **** 63, ,311 76, % 7 (16.35%) Interest 6,21 18,92 72, % 7 (16.82%) Net Profit/ loss 11,766 75,252 33, % 7 (64.39%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, Key Ratios Loan Portfolio Liabilities Deposits As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, Rankings As of As of Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE 7.92% 33.49% 3 rd rank by the Share Capital Among the top ten banks by all financial indicators ROA 1.37% Net Interest Margin 4.55% Tier % Capital Adequacy Liquidity to 24.7% 16.52% 32.38%.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 9

10 Bank Profiles (continued) Credo Bank Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / , ,99 N/A 1.97% % N/A Loan Portfolio 482,23 453,55 N/A 2.37% % N/A Liabilities 526, ,651 N/A 1.87% % N/A Deposits , ,339 N/A 2.64% 8 (3.47%) N/A Share Capital 4,4 4,4 N/A.48% 16.% N/A **** Interest Net Profit/ loss 111, ,853 N/A 4.83% 4 N/A 82,55 127,568 N/A 4.13% 5 N/A 1,155 26,219 N/A 1.61% 9 N/A * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, Key Indicators of Financial Performance, 3,, As of , As of ,5, 25, 2,, 2, 1,5, 15, 1,, 1, 5, 5, Key Ratios Loan Liabilities Deposits Portfolio Share Capital Rankings Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity to.81% 11.8% 2.21% 11.38% 14.61% 15.58% 12.27% 17.45% Among the top ten banks by all financial indicators, except Share Capital..% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 1

11 Bank Profiles (continued) Finca Bank Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % , ,686 26,471.89% % 1.79% Loan Portfolio 221,249 26,376 18,47 1.9% % 22.64% Liabilities 253,213 24, ,891.9% % 12.1% Deposits 87,98 99,614 85,59.48% 1 (11.68%) 3.43% 35,356 37,53 34,58.84% 13 (5.79%) 2.24% Share Capital 2,214 2,214 2, % 14 (.%).% **** 45,368 59,468 44, % % Interest 41,179 59,29 4, % % Net Profit/ loss 1, % 13 1,182.36% * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, As of As of , 25, 2, 15, 1, Key Indicators of Financial Performance, As of As of , 5, Key Ratios Loan Liabilities Deposits Portfolio Share Capital Rankings Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity to 3.38% 5.17%.62% 12.12% 11.3% 14.2% 15.44% 12.25% 1 st rank by Net Interest Margin 1 th rank by Deposits, and Interest.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 11

12 Bank Profiles (continued) Halyk Bank Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / , , , % 1.35% 16.88% Loan Portfolio 291, , , % 1 4.4% 26.92% Liabilities 317, , , % 1.26% 16.76% Deposits 75,352 8,132 49,997.41% 11 (5.97%) 5.71% 59,892 59,413 5, % 11.81% 17.56% Share Capital 48, 48, 48, 5.21% 6.%.% **** 26,735 32,58 23, % % Interest 22,386 28,678 2, % % Net Profit/ loss 9,26 8,897 4, % % * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income 3,, 2,5, 2,, 1,5, 1,, 5, Key Indicators of Financial Position, Key Ratios Loan Portfolio Liabilities Deposits As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, Rankings As of As of Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE ROA Net Interest Margin 5.56% 3.44% 6.15% 21.95% 6 th rank by the Share Capital Tier 1 Capital Adequacy Liquidity to 1.44% 15.7% 2.1% 15.86%.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 12

13 Bank Profiles (continued) International Bank of Azerbaijan Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / , , ,659.28% 14 (38.26%) (23.27%) Loan Portfolio 28,316 81,613 76,496.14% 14 (65.3%) (62.98%) Liabilities 54,153 13,421 84,564.19% 14 (47.64%) (35.96%) Deposits 31,438 32,318 21,681.17% 14 (2.72%) 45.% 37,666 45,37 35,95.89% 12 (16.87%) 7.33% Share Capital 22,688 22,688 22, % 11.%.% **** 2,846 13,945 7,92.12% 14 (63.98%) Interest 1,934 12,6 6,544.1% 15 (7.45%) Net Profit/ loss 42 (1,499) 6,696.1% 15 (99.37%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, Key Indicators of Financial Performance, 3,, 2,5, As of As of , 25, As of As of ,, 2, 1,5, 15, 1,, 1, 5, 5, Loan Liabilities Deposits Portfolio Share Capital Interest Net Profit/ loss after Taxes Key Ratios Non Performing Loans/ Loans 29.32% Rankings 11 th rank by the Share Capital ROE ROA Net Interest Margin.15%.5% 1.91% Tier % Capital Adequacy 45.72% Liquidity 61.5% to 41.2%.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 13

14 Bank Profiles (continued) Isbank Georgia Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % ,88 276,5 225,99.84% 12 (1.15%) 2.79% Loan Portfolio 12,7 181, ,915.59% 12 (33.91%) (22.99%) Liabilities 239,219 24, ,74.85% 12 (.64%) 23.47% Deposits 88,869 65,1 56,662.48% % 56.84% 33,662 35,284 32,169.8% 14 (4.6%) 4.64% Share Capital 3, 3, 3, 3.26% 8.%.% **** 16,833 17,77 12,235.73% % Interest 15,359 16,373 11,24.77% % Net Profit/ loss Key Ratios 2,612 3,787 1,784.41% % * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, Non Performing Loans/ Loans ROE Loan Portfolio 4.81% 11.18% Liabilities Deposits As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, Rankings Interest Net Profit/ loss after Taxes 8 th rank by the Share Capital 9 th rank by deposits As of ROA Net Interest Margin Tier % 3.32% 12.78% Capital Adequacy Liquidity 28.8% 36.17% to 12.34%.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 14

15 Bank Profiles (continued) Liberty Bank Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % ,72,975 1,613,85 1,611, % % 6.78% Loan Portfolio 898,644 74, , % % 13.36% Liabilities 1,512,63 1,427,854 1,438, % % 5.12% Deposits 1,283,666 1,292,53 1,281,339 7.% 3 (.65%).18% 28, , , % % 2.6% Share Capital 43,992 49,918 43, % 7 (11.87%).35% **** 248, , , % % Interest 191,584 27, , % 3 9.% Net Profit/ loss 34,538 47,714 21, % % * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, As of As of Key Indicators of Financial Performance, 3, 25, 2, 15, 1, As of As of , 5, Key Ratios Loan Liabilities Deposits Portfolio Share Capital Rankings Interest Net Profit/ loss Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy 2.76% 1.36% 8.65% 13.32% 23.2% 18.84% 3 rd rank by the 3 rd rank by the Liabilities 3 rd rank by the Deposits 3 rd rank by the 3 rd rank by the 3 rd rank by the Interest 3 rd rank by the Net Profit/Loss Among the top ten banks by all financial indicators Liquidity 4.95% to 12.11%.% 2.% 4.% 6.% 8.% 1.% Moody s Investors Service has upgraded the credit rating of JSC Liberty Bank (reaffirmed the Bank's 'B1' long-term foreign and local currency deposit rating and changed the outlook from Stable to Positive). July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 15

16 Bank Profiles (continued) Pasha Bank Georgia Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % , , ,664.78% 13 (11.17%) (9.63%) Loan Portfolio 111,85 97,21 91,183.55% % 22.67% Liabilities 145, ,21 177,264.52% 13 (18.76%) (17.87%) Deposits 46,725 46,24 41,3.25% % 13.96% 15,332 13,284 1,4 2.5% % 4.91% Share Capital 13, 13, 13, 11.18% 4.%.% **** 14,357 23,96 17,413.62% 13 (17.55%) Interest 14,253 23,32 17,32.71% 13 (17.62%) Net Profit/ loss 4,126 4,881 6,559.65% 11 (37.9%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, As of As of Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, As of As of Loan Portfolio Liabilities Deposits Share Capital Interest Net Profit/ loss Key Ratios Rankings Non Performing Loans/ Loans.6% 4 th rank by the Share Capital ROE 5.32% ROA 2.19% Net Interest Margin 5.92% Tier % Capital Adequacy 33.19% Liquidity 17.58% to 41.98%.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 16

17 Bank Profiles (continued) Procredit Bank Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / ,27,169 1,394,862 1,233, % 5 (8.94%) 2.97% Loan Portfolio 932, , , % % 4.62% Liabilities 1,98,132 1,198,729 1,69, % 5 (8.39%) 2.68% Deposits 63,25 732, , % 7 (14.%).5% 172,36 196, ,51 4.8% 6 (12.29%) 4.87% Share Capital 88,915 88,915 88, % 5 (.%).% **** 67,46 115,367 82, % 6 (18.28%) Interest 6,24 14,532 72,64 3.2% 6 (17.12%) Net Profit/ loss 13,713 24,271 17, % 6 (22.52%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, Key Ratios Loan Portfolio Liabilities Deposits As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, Rankings As of As of Interest Net Profit/ loss Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity to 3.41% 1.36% 1.43% 3.88% 11.38% 15.25% 22.23% 13.54% Among the top ten banks by all financial indicators.% 2.% 4.% 6.% 8.% 1.% JSC Prcredit Bank funded 873 SME Projects in partmership with EIB July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 17

18 Bank Profiles (continued) Silk Road Bank Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / ,573 79,941 63,854.14% 16 (44.24%) (3.2%) Loan Portfolio 6,55 1,56 1,95.3% 16 (39.79%) (44.7%) Liabilities 17,139 42,931 35,213.6% 16 (6.8%) (51.33%) Deposits 14,997 32,799 31,929.8% 15 (54.28%) (53.3%) 27,433 37,1 28,641.65% 15 (25.88%) (4.22%) Share Capital 3, 3, 3, 3.26% 9.%.% **** 2,624 3,658 3,14.11% 15 (12.94%) Interest 2,265 3,446 2,734.11% 14 (17.13%) Net Profit/ loss (339) 729 (1,316) -.5% 16 (74.26%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, Key Ratios Loan Portfolio Liabilities Deposits As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, -5, Rankings As of As of Interest Net Profit/ loss Non Performing Loans/ Loans ROE* ROA* Net Interest Margin.%.% 3.86% 31.34% 9 th rank by the Share Capital Tier 1 Capital Adequacy Liquidity to 56.5% 56.14% 43.93% 61.55%.% 2.% 4.% 6.% 8.% 1.% * ROE and ROA are negative for Silk Road Bank - (1.63%) and (.76%) respectively. July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 18

19 Bank Profiles (continued) TBC Key Financial Indicators* Amount, 217 Q 3*** 216*** 216 Q 3*** Share in total sector, % Rank Change** / / ,89,595 1,761,759 7,368, % % 6.28% Loan Portfolio 7,772,734 7,358,725 4,954, % % 72.9% Liabilities 1,32,265 9,189,97 6,14, % % 68.6% Deposits 7,75,189 6,461,582 4,556, % 1 9.5% 55.29% 1,489,33 1,571,789 1,227, % 1 (5.25%) 21.35% Share Capital 21,16 2,617 2, % % 4.96% **** 834,69 99, , % % Interest 659, ,41 468, % % Net Profit/ loss 213, , , % % * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 12,, 1,, 8,, 6,, 4,, 2,, Key Ratios Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity to Loan Portfolio 3.42% 2.81% 4.62% 19.6% 1.79% 14.5% 21.7% 12.61% Liabilities Deposits TBC Bank s Startuper finances startups with GEL 2 mln. As of As of % 5.% 1.% Share Capital Key Indicators of Financial Performance, 1,, 8, 6, 4, 2, Rankings 1 st rank by the assets 1 st rank by the loan portfolio 1 st rank by the liabilities 1 st rank by the deposits 1 st rank by the equity 2 nd rank by the net profit after tax 2 nd rank by the total income 2 nd rank by the interest income 13 th rank by the share capital from The Asian Development Bank has named TBC Bank as a best partner in terms of trade financing for the third time. B1), July August September As of As of Interest Net Profit/ loss after Taxes Moody s Investors Service has upgraded the credit rating of JSC TBC Bank (local-currency deposit rating has been increased to Ba2 from Ba3 and its foreigncurrency deposit rating to Ba3 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 19

20 Bank Profiles (continued) Tera Bank Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % , ,64 684, % % 8.32% Loan Portfolio 516, , ,2 2.54% % 3.99% Liabilities 632,3 578, , % % 5.7% Deposits 521,181 52,62 514, % 8.11% 1.29% 19, ,498 86, % 9 (7.85%) 26.55% Share Capital 121, , , 13.17% 2.% 9.34% **** 5,56 65,837 51, % 9 (2.73%) Interest 44,11 63,93 46, % 9 (4.89%) Net Profit/ loss 1,67 5,536 (15,932) 1.69% 8 (166.97%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, Key Ratios Loan Liabilities Deposits Portfolio As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, -5, Rankings As of As of Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity 1.91% 13.6% 2.4% 4.34% 9.78% 14.16% 22.84% 2 nd rank by share capital Among the top ten banks by all financial indicators to 14.73%.% 2.% 4.% 6.% 8.% 1.% Netherlands Development Finance Company (FMO) has allocated USD 12.5 million to Terabank to promote small and medium business sectors and women involvement in business activities. July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 2

21 Bank Profiles (continued) VTB Bank-Georgia Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % ,525,263 1,546,14 1,31, % 4 (1.34%) 16.39% Loan Portfolio 957, ,91 862, % 3 (.72%) 11.6% Liabilities 1,36,78 1,349,586 1,163, % 4.83% 16.93% Deposits 962, , , % % 11.17% 164, , , % 7 (16.26%) 12.8% Share Capital 29,8 191, , % % 9.26% **** 12, ,941 96, % % Interest 84, ,816 8, % % Net Profit/ loss 15,76 27,444 16, % 5 (2.72%) * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** The total income consists of interest income and fee and commission income 3,, 2,5, 2,, 1,5, 1,, Key Indicators of Financial Position, 5, Key Ratios Loan Portfolio Liabilities Deposits As of As of Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, Rankings As of As of Interest Net Profit/ loss after Taxes Non Performing Loans/ Loans ROE ROA Net Interest Margin Tier 1 Capital Adequacy Liquidity to 5.31% 13.29% 1.43% 3.7% 1.7% 12.89% 26.66% 1.78% 1 st rank by share capital 3 rd rank by the Loan Portfolio Among the top ten banks by all financial indicators.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 21

22 Bank Profiles (continued) Ziraat Bank-Georgia Key Financial Indicators* Amount, Change** 217 Q 3*** 216*** 216 Q 3*** Share in total / / Rank sector, % ,177 67,353 1,416.24% % (23.14%) Loan Portfolio 19,32 15,562 13,263.9% % 43.5% Liabilities 54,75 45,7 79,62.19% % (31.6%) Deposits 46,419 45,58 74,886.25% % (38.1%) 23,11 21,653 21,354.55% % 8.18% Share Capital**** 22,268 N/A N/A 2.42% 12 N/A N/A ***** Interest Net Profit/ loss * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 9 months of the years *** The audited financial statements of the bank is the source of the 216 year end information, while 216 Q3 and 217 Q3 results are based on the NBG data **** From May 217 Ziraat Bankasi A.S. Tbilisi Branch offers services in Georgia under the new institution called JSC Ziraat Bank Georgia. ***** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, 3,, 2,5, 2,, 1,5, 1,, 5, Loan Portfolio 1,954 4,252 3,276.8% 16 (4.36%) 1,567 3,33 2,497.8% 16 (37.23%) 828 2,28 1,734.13% 14 (52.22%) As of As of Liabilities Deposits Share Capital Key Indicators of Financial Performance, 3, 25, 2, 15, 1, 5, As of As of Interest Net Profit/ loss Key Ratios Non Performing Loans/ Loans ROE ROA Net Interest Margin 2.33% 4.94% 1.48% 2.49% Rankings 12 th rank by the Share Capital Tier 1 Capital Adequacy 38.4% 39.33% Liquidity 65.19% to 29.93%.% 2.% 4.% 6.% 8.% 1.% July August September 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 22

23 Appendix 1 Shareholding Structure & General Information The shareholding structure of the Georgian banks is diverse. There are both resident and nonresident shareholders. Meanwhile, almost in all the Georgian banks non-resident shareholders are presented. The shareholding structure and information on branches and the staff for each bank is presented below. JSC Bank of Georgia List of Shareholders owning 1% and more of issued capital: BGEO Group 99.51% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Harding Loevner Management LP 8.36% Branches and Service centers: 278 Staff: 5283 employees JSC CARTU BANK List of Shareholders owning 1% and more of issued capital: Jsc Cartu Group 1% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Uta Ivanishvili 1% Branches and Service centers : 9 Staff: 21-5 employees JSC Credo Bank List of Shareholders owning 1% and more of issued capital: Access Microfinance Holding AG 6.2% Triodos Custody B.V., Triodos Fair Share Fund 9.9% Triodos SICAV II, Triodos Microfinance Fund 9.9% responsability Participations AG 9.34% responsability Management Company S.A., responsability Global Microfinance Fund (Luxembourg) 8.79% responsability SICAV (Lux) - responsability SICAV (Lux) Microfinance Leaders Fund 1.87% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: CDC Group PLC (UK) 8.36% European Investment Bank (Luxembourg) 8.36% International Finance Corporation (USA) 8.36% Kreditanstalt für Wiederaufbau (Germany) 8.36% LFS Financial Systems GmbH (Germany) 8.24% Omidyar Tufts Microfinance Fund (USA) 7.93% Branches and Service centers: 62 Staff: 15-2 JSC Basisbank Shareholders owning 1% and more of issued capital: Xinjiang HuaLing Industry & Trade (Group) Co LTD 92.8% Zaiqi Mi 6.95% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Enhua Mi 91.99% Zaiqi Mi 6.95% Branches and Service centers : 22 Staff: 348 employees JSC FINCA Bank Georgia List of Shareholders owning 1% and more of issued capital: FINCA Microfinance Coöperatief U.A. (Netherlands) 1% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: FINCA Microfinance Holding Company LLC 99 Voting right of FINCA Microfinance Coöperatief U.A. FINCA International, Inc. (New York, USA) 62.93% IFC 14.27% KfW 8.87% FMO 7.25% Branches and Service centers : 39 Staff: 7-75 employees JSC Halyk Bank Georgia List of Shareholders owning 1% and more of issued capital: JSC Halyk Bank of Kazakhstan-1% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Timur Kulibayev 36.77% Dinara Kulibayeva 36.77% Branches and Service centers : 5 Staff: 25-5 JSC International Bank of Azerbaijan- Georgia List of Shareholders owning 1% and more of issued capital: OJSC International Bank of Azerbaijan 75.% OJSC Azerbaijan Industry Bank 12.5% Natia Chkhartishvili 6.25% Mikheil Chkhartishvili 6.25% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: State Committee of State Property of Azerbaijan Republic 71.33% Leyla Gozal Kurt 7.7% Natia Chkhartishvili 6.25% Mikheil Chkhartishvili 6.25% Branches and Service centers : 1 Staff: 5-1 JSC Isbank Georgia List of Shareholders owning 1% and more of issued capital: Turkey Is Bank 1.% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Turkıye Is Bankası A,S, Employees Pensıon Fund 39.95% Turkey Republıcan People's Party 28.9% Branches and Service centers : 3 Staff: KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 23

24 Appendix 1 Shareholding Structure & General Information (continued) JSC Liberty Bank List of Shareholders owning 1% and more of issued capital: Liberty Holding Georgia LLC 71.83% BNY Limited (Nominees) 12.59% Vladimer Gurgenidze 4.71% ELVIN Solutions Limited 1.63% Stichting Liberty ESOP 1.43% OLIVE Capital Management Ltd 1.18% Others 6.64% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Denis Korotkov-Koganovich 24.88% Malik Ishmuratov 24.88% Nurlan Abduov 24.88% BNY Limited (Nominees) 12.59% Branches and Service centers : 698 Staff: 429 JSC Pasha Bank Georgia List of Shareholders owning 1% and more of issued capital: PASHA Bank OJSC 1.% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Arif Pashayev 1.% Arzu Aliyeva 45.% Leyla Aliyeva 45.% Branches and Service centers : 1 Staff: 5-1 JSC ProCredit Bank List of Shareholders owning 1% and more of issued capital: ProCredit Holding AG & Co. KGaA 1.% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Zeitinger Invest GmbH >15% to <2% KfW >1% to <15% DOEN Foundation >1% to <15% IFC >1% to <15% TIAA-CREF >5% to <1% Branches and Service centers :13 Staff: N/A JSC Silk Road Bank List of Shareholders owning 1% and more of issued capital: JSC Silk Road Financial Group 99.99% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Giorgi Ramishvili 61.99% Alexi Topuria 28.5% David Franz Borger, Germany 9.5% Branches and Service centers : 9 Staff: N/A JSC TBC Bank List of Shareholders owning 1% and more of issued capital: more of issued capital: TBC Bank Group PLC 98.67% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Mamuka Khazaradze 13.98% Badri Japaridze 6.84% EBRD 8.27% JPMorgan Asset Management Holdings 9.27% Schroder Investment Management 8.6% Dunross & Co. 5.48% Branches and Service centers : 159 Staff: 71 employees JSC Terabank (previously Kor Standard Bank) List of Shareholders owning 1% and more of issued capital: H.H Sheikh Nahayan Mabarak AL Nahayan 45% H.H. Sheikh Hamdan Bin Zayed AL Nehayan 2% H.H. Sheikh Mansoor Bin Zayed Bin Sultan AL Nehayan 15% H.E. Shaikh Mohammad Butti AL Hamed 15% LTD INVESTMENT TRADING GROUP 5% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: H.H Sheikh Nahayan Mabarak AL Nahayan 45% H.H. Sheikh Hamdan Bin Zayed AL Nehayan 2% H.H. Sheikh Mansoor Bin Zayed Bin Sultan AL Nehayan 15% H.E. Shaikh Mohammad Butti AL Hamed 15% JSC VTB Bank (Georgia) List of Shareholders owning 1% and more of issued capital: JSC VTB Bank 97.14% LTD Lakarpa Enterprises Limited 1.5% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: Russian Federation 59.3% Branches and Service centers: 38 Staff: 1-15 JSC ZIRAAT Bank (Georgia) List of Shareholders owning 1% and more of issued capital: JSC ZIRAAT Bank of Turkish Republic - 1% List of bank beneficiaries, direct or indirect holders of 5% or more of shares: N/A Branches and Service centers : 4 Staff: N/A Branches and Service centers: 18 Staff: KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 24

25 Appendix 2 Sector Insights As of 3 September 217 the assets grew in almost all the banks, and only four banks suffered decreases as compared with the same period of 216. As of 3 September 217 TBC Bank had the highest value of assets - about GEL 11.8 billion, which is 36.55% of the total assets of the banking sector. Silk Road Bank had the lowest level GEL.45 billion (.14% in total assets). It is worth mentioning that, as of 3 September 217, the top two banks (ranked by assets) held 69.86% of the assets of the banking system, while the top five banks held 83.83% of the total assets. Loan portfolio The total amount of loans issued at the end of the 3 rd quarter of 217 amounted to GEL 2.32 billion (Q3 216: GEL billion). The major part of the loans was borrowed by households (55%), trade (11%) and industry (11%), while education held only 1% of the total loans issued as of 3 September 217. As at 3 September 217 the Herfindahl-Hirschman Index amounted to 2,67, which implies that the Georgian banking sector is highly concentrated. Structure of banks in Georgia by loan volume, Q % 1% 3% 4% Households 1% 3% 3% Agriculture, Forestry, Fishing Industry Construction Trade 11% Hotels and Restaurants 5% 55% Transport and Communications Financial Intermediation Transactions in Real Estates, Researches Education 11% Health Care and Social Services 2% Other services *Analysis is done based on Loans Net of Provision (NBG) 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 25

26 Appendix 2 Sector Insights (continued) Liabilities As of 3 September 217 the banking system total liabilities grew by 26.8%, compared with the same figure as of 3 September 216, to reach GEL 28.1 billion. Deposits As of 3 September 217 non-bank deposits represented 65.3% of the total liabilities of the banking sector (GEL 18.3 billion). As of 3 September % of the deposits were placed in foreign currencies, while the remaining 34.% in national currency, same figures stood at 69.8% and 3.2% for the Q3 216 respectively. 43.4% of the total deposits were time deposits, while current accounts and demand deposits represented 29.4% and 27.2% of the total deposits respectively. Around 72.7% of the time deposits were placed in foreign currencies, while 6.8% of total of current accounts and demand deposits were placed in foreign currency. Structure of deposits 34.% 43.4% 29.4% 66.% 27.2% GEL Foreign Currency Current Accounts Demand Deposits Time Deposits *Analysis of the Structure of Deposits are based on NBG aggregate data of Deposits, which includes bank deposits. At the end of the Q3 217 the total equity to total assets ratio was 13.4%, which is slightly lower compared to the same ratio of 216 (14.76%). As of 3 September 217 TBC Bank had the highest level of equity - about GEL 1.49 billion, which is 35% of the total equity of the banking system. Ziraat Bank Georgia had the lowest level GEL.23 billion (.5% in total equity). 79% of the total equity of the banking system belonged to the top five banks (ranked by the equity) as of 3 September 217. Interest income For the period the interest income amounted to GEL 2.6 billion. Eleven banks out of the sixteen increased their interest income compared to the same period of 216. Profit/loss Financial performance of the sector was positive during the third quarter of 217. Comparing with the same period last year, interest income, holding the highest share in the total income, rose by 22.8% and reached GEL 2.6 billion. fee and commission income increased by 4.9% and amounted to GEL.44 billion, while net profit of the banks for the first three quarters was GEL.63 billion, 3.5% higher when compared with the same period of 216. During the first quarter of 217, 15 banks operating in Georgia were profitable. Only one bank incurred a loss after taxes. 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 26

27 Appendix 3 Key Financial Indicators Key Indicators of the Financial Position as of GEL Thousands Loans Liabilities Deposits Share Capital JSC TBC Bank 11,89,595 7,772,734 1,32,265 7,75,189 1,489,33 21,16 JSC Bank of Georgia 1,762,515 6,451,737 9,513,969 6,148,37 1,248,546 25,911 JSC Liberty Bank 1,72, ,644 1,512,63 1,283,666 28,372 43,992 JSC VTB Bank-Georgia 1,525, ,986 1,36,78 962, ,483 29,8 JSC ProCredit Bank 1,27, ,916 1,98,132 63,25 172,36 88,915 JSC Cartu Bank 1,234,854 81,58 1,3, ,77 24,27 114,43 JSC TeraBank 741, , ,3 521,181 19, ,372 JSC BasisBank 1,25,898 72,797 1,23,2 67, ,698 16,97 JSC Finca Bank Georgia 288, , ,213 87,98 35,356 2,214 JSC Halyk Bank Georgia 377, , ,783 75,352 59,892 48, JSC PASHA Bank Georgia 25, ,85 145,591 46,725 15,332 13, JSC Isbank Georgia 272,88 12,7 239,219 88,869 33,662 3, JSC Credo 638, ,23 526, ,337 4,4 JSC The International Bank of Azerbaijan-Georgia 91,819 28,316 54,153 31,438 37,666 22,688 JSC Ziraat Bank Georgia 77,177 19,32 54,75 46,419 23,11 22,268 JSC Silk Road Bank 44,573 6,55 17,139 14,997 27,433 3, 32,312,513 2,324,178 28,1,44 18,348,467 4,212, , KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 27

28 Appendix 3 Key Financial Indicators (continued) Key Indicators of the Financial Results for the period ended GEL Thousands Interest Net Interest Fee and commission income Net fee and commission income Provision Expense Net profit/ loss before taxes Net profit/ loss after taxes JSC TBC Bank 659, , , ,11 6, , ,511 JSC Bank of Georgia 72,137 46, ,198 8,928 8, ,18 286,71 JSC Liberty Bank 191,584 18,38 57,152 49,94 2,784 4,814 34,538 JSC VTB Bank-Georgia 84,916 4,71 17,276 12,56-3,851 16,994 15,76 JSC ProCredit Bank 6,24 37,24 7,256 1,569 2,54 15,625 13,713 JSC Cartu Bank 6,21 39,21 3,744-1,55 6,616 16,388 11,766 JSC TeraBank 44,11 22,666 6,396 2, ,67 1,67 JSC BasisBank 54,695 32,71 4,535 1,224 4,84 19,4 17,186 JSC Finca Bank Georgia 41,179 25,829 4, ,543 1,45 1,33 JSC Halyk Bank Georgia 22,386 16,491 4,349 2, ,591 9,26 JSC PASHA Bank Georgia 14,253 11, ,126 4,126 JSC Isbank Georgia 15,359 7,16 1, ,715 2,612 JSC The International Bank of Azerbaijan-Georgia 1,934 1, , JSC Credo 82,55 52,27 29,259 23,891 9,4 1,526 1,155 JSC Ziraat Bank Georgia 1,567 1, JSC Silk Road Bank 2,265 1, ,56,758 1,155,26 441,82 288, ,85 77,31 631, KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 28

29 Appendix 3 Key Financial Indicators (continued) Key Indicators of the Financial Position as of GEL Thousands Loans Liabilities Deposits Share Capital JSC Bank of Georgia 8,616,885 5,312,938 7,522,185 4,643,25 1,94,7 26,835 JSC TBC Bank 7,368,162 4,954,47 6,14,891 4,556,145 1,227,271 2,22 JSC Liberty Bank 1,611, ,748 1,438,964 1,281, ,785 43,84 JSC VTB Bank-Georgia 1,31, ,561 1,163, , , ,293 JSC ProCredit Bank 1,233, ,732 1,69,55 629, ,51 88,915 JSC Cartu Bank 1,149,149 92, , ,26 185,74 114,43 JSC TeraBank 684, ,2 598, ,529 86, , JSC BasisBank 86,42 443,126 64, , ,292 16,57 JSC Finca Bank Georgia 26,471 18,47 225,891 85,59 34,58 2,214 JSC Halyk Bank Georgia 323, , ,171 49,997 5,946 48, JSC PASHA Bank Georgia 277,664 91, ,264 41,3 1,4 13, JSC Isbank Georgia 225,99 155, ,74 56,662 32,169 3, JSC The International Bank of Azerbaijan-Georgia 119,659 76,496 84,564 21,681 35,95 22,688 JSC Ziraat Bank Georgia 1,416 13,263 79,62 74,866 21,354 JSC Silk Road Bank 63,854 1,95 35,213 31,929 28,641 3, JSC Bank Republic* 1,744,16 1,237,144 1,47,775 72,1 273,241 76,31 JSC Capital Bank** 91,482 3,836 76,27 67,114 15,455 24, 25,987,123 16,655,63 22,152,395 14,878,295 3,834, ,324 * Merged with TBC Bank in May 217 ** License For Banking Activity Cancelled during KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 29

30 Appendix 3 Key Financial Indicators (continued) Key Indicators of the Financial Results for the period ended GEL Thousands Interest Net Interest Fee and commission income Net fee and commission income Provision Expense Net profit/ loss before taxes Net profit/ loss after taxes JSC Bank of Georgia 69, ,321 18,533 71,552 17,324 26,17 15,542 JSC TBC Bank 468, ,26 18,778 64,858 26,315 27, ,86 JSC Liberty Bank 175,757 86,778 46,641 4,34 11,773 21,788 21,788 JSC VTB Bank-Georgia 8,373 41,68 16,19 11,35 6,9 18,19 16,21 JSC ProCredit Bank 72,64 47,14 9,912 4,468 8,46 2,822 17,699 JSC Cartu Bank 72,371 44,851 4, ,67 37,3 33,37 JSC TeraBank 46,378 17,619 5,548 2,571 22,43-17,28-15,932 JSC BasisBank 47,515 28,18 3,751 1,363 1,72 2,674 18,589 JSC Finca Bank Georgia 4,462 26,794 3,686-1,327 5, JSC Halyk Bank Georgia 2,335 13,652 2,939 1,286 3,864 5,92 4,524 JSC PASHA Bank Georgia 17,32 11, ,69 6,559 6,559 JSC Isbank Georgia 11,24 5,742 1, ,825 1,784 JSC The International Bank of Azerbaijan-Georgia 6,544 5,295 1,358 1,94-1,813 6,696 6,696 JSC Ziraat Bank Georgia 2,497 2, ,734 1,734 JSC Silk Road Bank 2,734 1, ,313-1,316 JSC Bank Republic* 118,575 72,224 23,97 19,3 12,681 47,744 41,584 JSC Capital Bank** 2,522 2,423 4, ,13-3,121-3,121 1,795,968 1,48, , , ,711 58, ,277 * Merged with TBC Bank in May 217 ** License For Banking Activity Cancelled during KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 3

31 Appendix 4 Bank Contact Details JSC Bank of Georgia CEO Kakhaber Kiknavelidze Members of Board of Directors: Levan Kulijanishvili Mikheil Gomarteli Archil Gachechiladze Giorgi Chiladze Alexander Katsman Ramaz Kukuladze David Tsiklauri Address: 29a Gagarini Street Tel./Fax: (995 32) , welcome@bog.ge Website: SWIFT: BAGAGE22 Basisbank CEO David Tsaava Members of Board of Directors: Lia Aslanikashvili David Kakabadze Levan Gardaphkhadze Li Hui Address: 1, Ketevan Tsamebuli Ave. Tel./Fax: (995 32) info@basisbank.ge Website: SWIFT:CBASGE22 JSC CARTU BANK CEO Nato Khaindrava Members of Board of Directors: David Galuashvili Zurab Gogua Beqa Kvaratskhelia Givi Lebanidze Address: 39a Chavchavadze Tel./Fax: (995 32) info@cartubank.ge Website: SWIFT: CRTUGE22 JSC Credo Bank CEO Zaal Pirtskhelava Members of Board of Directors: Erekle Zatiashvili Zaza Tkeshelashvili Address: 9 Asatiani Street Tel./Fax: +995 (32) Info@credo.ge Website: Swift: N/A JSC FINCA Bank Georgia CEO Vusal Verdiyev Members of Board of Directors: Giorgi Mirotadze Giorgi Samadashvili Address: Vazha Pshavela Ave 71 Tel./Fax: fincageo@finca.ge Website: SWIFT: FGEOGE22 JSC Halyk Bank Georgia CEO Nikoloz Geguchadze Members of Board of Directors: Konstantin Gordeziani Shota Chkoidze Marina Tankarova Address: Shartava str. 4 Tel./Fax: info@hbg.ge Website: SWIFT: HABGGE22 JSC International Bank of Azerbaijan- Georgia CEO Emil Abasbayli Members of Board of Directors: Tamar Gogolashvili Shalva Goduadze Address: 18 Bochorma Street Tel./Fax: info@ibaz.ge Website: SWIFT: IBAZGE22 JSC Isbank Georgia CEO Ozan gur Members of Board of Directors: Mehmet Ihsan Aqhun Teimuraz Pirmisashvili Address: Agmashenebeli Ave.14b Tel./Fax: S6621@isbank.com.tr Website: SWIFT: ISBKGE22 JSC Liberty Bank CEO Giorgi Kalandarishvili* Members of Board of Directors: Zurab Tsulaia Aleksander Liparteliani Armen Matevosyan David Verulashvili David Melikidze Taras (Tato) Chantladze Address: 74 Chavchavadze Street Tel./Fax: info@libertybank.ge Website: SWIFT: LBRTGE22 *Was appointed as CEO in October 217, replacing Aleksi Khoroshvili 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 31

32 Appendix 4 Bank Contact Details (continued) JSC Pasha Bank Georgia CEO Shahin Mammadov Members of Board of Directors: Chingiz Abdullayev George Japaridze Address: 15 Rustaveli Avenue Tel./Fax: office@pashabank.ge Website: SWIFT: PAHAGE22 JSC ProCredit Bank CEO Ketevan Khuskivadze Members of Board of Directors: Alex Matua Davit Gabelashvili Natia Tkhilaishvili Address: 21 Al. Kazbegi Ave Tel./Fax: ( ) ( ) info@procreditbank.ge Website: SWIFT: MIBGGE22 JSC Silk Road Bank CEO Alexander Dzneladze Members of Board of Directors: Natia Merabishvili Adress: 2 Saarbrucken Square Tel./Fax: ( ) ( ) info@silkroadbank.ge Website: SWIFT: DISNGE22 JSC TBC bank CEO Vakhtang Butskhrikidze Members of Board of Directors: Paata Ghadzadze Vano Baliashvili Nino Masurashvili Giorgi Tkhelidze Giorgi Shagidze David Chkonia Nikoloz Kurdiani Address: Marjanishvili Street 7 Tel./Fax: +(995 32) info@tbcbank.ge Website: SWIFT: TBCBGE22 JSC Terabank (previously Kor Standard Bank) CEO Thea Lortkipanidze Members of Board of Directors: Vakhtang Khutsishili Zurab Azarashvili Temur Abuladze Sophia Jugeli Address: 3. K.Tsamebuli Av.,13 Tel. : info@terabank.ge Website: SWIFT: TEBAGE2222 JSC VTB Bank Georgia CEO Archil Kontselidze Members of Board of Directors: Mamuka Menteshashvili Niko Chkhetiani Valerian Gabunia Vladimer Robakidze Irakli Dolidze Address: 14, G. Chanturia St., 18 Tbilisi, Georgia Tel: (995 32) Fax: (995 32) info@vtb.ge Website: SWIFT: UGEBGE22 JSC Ziraat Bank Georgia CEO Mehmet Ucar Members of Board of Directors HALUK CENGIZ BURCU EROL Address: Aghmashenebeli Ave. No: 61, Tbilisi, Georgia Tel./Fax: ( ) tbilisi@ziraatbank.com Website: SWIFT: TCZBGE KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 32

33 Glossary of Terms Herfindahl-Hirschman Index Calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. Index below 1, indicates an unconcentrated index; index between 1, and 1,8 indicates moderate concentration; index above 1,8 indicates high concentration. to assets Calculated as the total equity divided by the total assets. Return on The ratio of annualized net profit to average annual assets. Return on The ratio of annualized net profit to average annual share capital. Net Interest Margin The ratio of annualized net interest income to annual average assets. Tier 1 Ratio The ratio of Tier 1 Capital of the bank defined according to the rule set by NBG (based on Basel III framework) to risk weighted assets. Required minimum by the National Bank of Georgia 8.5%. Capital Adequacy Ratio The ratio of regulatory Capital of the bank defined according to the rule set by NBG (based on Basel III framework) to risk weighted assets. Required minimum by the National Bank of Georgia 1.5% Liquidity Ratio Calculated as the liquid assets divided by the total assets. 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 33

34 Contacts The contacts at KPMG in connection with this report are: Andrew Coxshall Managing Partner KPMG in Georgia T E acoxshall@kpmg.com Irina Gevorgyan Partner Head of Advisory T E igevorgyan@kpmg.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 217 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights The KPMG name and logo are registered trademarks or trademarks of KPMG International.