Bank of Georgia 2007 Results Overview

Transcription

1 Standard & Poor s: B+/B Stable Moody s: B3/NP (FC) & Ba1/NP (LC); Stable Fitch Ratings: B+/B Stable LSE: BGEO GSE: GEB Berlin-Bremen Boerse: B7D1 Bank of Georgia 27 Results Overview Reuters: BGEO.L Bloomberg: BGEO.LI

2 Introduction To Bank of Georgia Market Leader In All Six Business Lines Retail Banking Corporate & Investment Banking Insurance Wealth Management Asset Management Securities No.1 by assets (circa 35.4%), (1) loans (circa 32.7%), (1) deposits (circa 31.4%) (1) and equity (circa 34.6%) (1) 7.% 27 market share gain in total assets (+1.2 % in 26) 6.1% 27 market share gain in gross loans (+8.2 % in 26) 6.8% 27 market share gain in total deposits (+5.5 % in 26) Leadership in retail banking, with The leading universal bank in Georgia March 28 YE 27 YE 26 Retail Accounts 77,+ 75,+ 425,+ Cards Outstanding 74,+ 64,+ 285,+ Branches ATMs Top brand, best distribution network and broadest range of services of any bank in Georgia Leading corporate and investment banking franchise Approximately 68, legal entities have opened accounts Top broker-dealer with circa 63% market share in equities trading by December 27 Leading card-processing, leasing, insurance, wealth management and asset management services provider The only Georgian entity with credit ratings from all three global rating agencies S&P: B+/B ; Stable at the sovereign ceiling Moody s: B3/NP (FC) & Ba1/NP (LC) ; Stable Fitch Ratings: B+/B ; Stable Listed on the London Stock Exchange (GDRs) and Georgian Stock Exchange Market Cap (LSE) US$749 mln as of 31 January 28 Approximately 95% free float 26 share price performance 383%, 27 share performance 31% Issue of the first ever Eurobonds in Georgia Bloomberg: BKGEO; 5 year, 9%, US$2 mln B+/Ba2/B+ (composite BB-) Notes: (1) As of 31 December 27; based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia www/nbg.gov.ge Investment Highlights A leveraged play on Georgia s economic growth Diversified revenue streams and disciplined capital management Domestic universal banking strategy driving profitable growth Domestic sector consolidator and aspirations for regional expansion Sophisticated management team with Western banking & finance background and education Transparency and good governance, circa 85%+ institutionally owned, majority of the Board seats held by large shareholders and an independent director Strategy Consolidate leading position in the domestic banking market Promote the future growth of the retail banking business Further diversify the business, including funding base and loan portfolio Continue improving risk management policies and procedures Actively pursue sensible regional expansion opportunities Page 2

3 Bank of Georgia 27 Results Overview Page 3

4 27 Results Highlights Millions, unless otherwise noted Growth, Y-O-Y 1 Bank of Georgia (Consolidated, IFRS Based) GEL US$ GEL US$ Unaudited Unaudited Net Interest Income % Net Non-Interest Income % Total Operating Income (Revenue) % Increasing Operating Leverage Recurring Operating Costs % Normalized Net Operating Income % Pre-Bonus Result % Net Income % Consolidated EPS (Basic), GEL & US$ % Consolidated EPS (Fully Diluted), GEL & US$ % ROAA 6 3.8% 3.4% ROA 2.5% 2.2% ROAE % 16.5% ROE 13.5% 7.1% Net Loans 1,684 1, % Total Assets 2,981 1,873 1, % Total Deposits 1, % Total Liabilities 2,422 1, % Shareholders Equity % Book Value Per Share % Despite Tier I CAR of 21.4% 1 Compared to the same period in 26; growth calculations based on GEL except for the EPS. 2 Revenue includes Net Interest Income and Net Non-Interest Income. 3 Normalized for Net Non-Recurring Costs. 4 Basic EPS equals Net Income of the period divided by weighted average outstanding shares for the period. 5 Fully Diluted EPS equals Net Income of the period divided by the number of outstanding ordinary shares as of the period end plus number of ordinary shares in contingent liabilities. 6 Return on Average Total Assets equals Net Income for the period divided by the average Total Assets for the period. 7 Return on Average Total Shareholders Equity equals Net Income for the period divided by the average Total Shareholders Equity for the period. Page 4

5 27 Performance Composition of Revenue (GEL mln) Revenue Market Share* GEL mln % +134% +12% +71% +4% +99% % 4% 35% 3% 25% 2% 15% 1% 24% 42% % Net Interest Income Net Fee & Commission Income % Net Income From Documentary Operations Net Foreign Currency Related Income Net Other Non-Interest Income Net Interest Income vs. Net Non-Interest Income (GEL mln) Net Other Non-Interest Income (GEL mln) GEL mln % GEL mln % % % NMF NMF Net Interest Income Net Non-Interest Income % % Net Insurance Income Brokerage Income Asset Management Income Realised Net Investment Gain Other *Based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia Page 5

6 27 Performance cont d Operating Cost Structure Normalised Net Operating Income GEL mln GEL mln % +3% +67% +74% +59% % % Personnel Costs Selling, General & Administrative Expenses Procurement & Operations Support Expenses Depreciation And Amortization Other Operating Expenses Pre-Bonus Result Net Income GEL mln % GEL mln % Page 6

7 Composition of the Balance Sheet Assets, +146% y-o-y Liabilities & Shareholders Equity GEL mln 3, +146% 2, GEL mln 3, +146% 2,981 1,362 CIB % y-o-y 2, ,5 1,684 CIB % y-o-y RB % y-o-y 2, 2, WM 7 +7% y-o-y RB % y-o-y 2,422 Ukraine 268 NMF 1,5 1,5 1,213 WM % y-o-y 1,213 1, CIB 39 RB 268 WM 22 CC 22 Ukraine 67 CC -3 Ukraine NMF NMF 1, CIB 283 RB 26 WM 65 Ukraine YE 26 YE 27 YE 26 YE 27 Other Assets Cash & Equivalents Property, Equipment & Intangible Assets Loans & Advances To Credit Institutions Loans To Clients, Net Loans & Advances To Credit Institutions Loans Cash To & Clients, Equivalents Net Property, Equipment & Intangible Other Assets Client Deposits Borrowed Funds Other Liabilities Equity Equity Other Liabilities Borrowed Funds Client Deposits Page 7

8 RB & WM Account for 46% of Gross Loans excluding UBDP Diversified Loan Book... Gross Loans, YE 27 (+141% y-o-y) UBDP GEL mln CIB GEL 87.2 mln (+15% y-o-y) RB GEL 644. mln (+129% y-o-y) Gross RB Loans excluding UBDP, YE 27 (+129% y-o-y) Consumer Loans GEL mln (+142% y-o-y) Mortgage Loans GEL 18.7 mln (+184% y-o-y) Other RB Loans GEL mln (+23% y-o-y) Micro Loans GEL mln (+54% y-o-y) Legacy Retail Loans GEL 27.9 mln (+4% y-o-y) POS Loans GEL 61.3 mln (+176% y-o-y) Card Overdrafts & Credit Card Balances GEL 63.1 mln (+1536% y-o-y) Car Loans GEL 37.1 mln (+28% y-o-y) Total Gross Loans GEL 1,721mln WM GEL 44.2 mln (+96% y-o-y) Total Gross RB Loans GEL 644. mln Gross CIB Loans excluding UBDP, YE 27 (+15% y-o-y) Pharmaceutical & Healthcare GEL 11.3 mln (-57% y-o-y) Industry & State GEL 75.4 mln (+126% y-o-y) Other GEL 87.8 mln (+94% y-o-y) SME GEL mln (+5% y-o-y) Gross WM Loans excluding UBDP, YE 27 (+96% y-o-y) Car Loans GEL 3. mln (+33% y-o-y) Other WM Loans GEL 1.9 mln (+57% y-o-y) Construction & Real Estate GEL 12.5mln (+51% y-o-y) Fast MovingConsumer Goods GEL 112.5mln (+165% y-o-y) Energy GEL 113. mln (+112% y-o-y) Trade GEL 13. mln (+84% y-o-y) Consumer Loans GEL 16.4 mln (+834% y-o-y) Mortgage Loans GEL 22.8 mln (+32% y-o-y) Total Gross CIB Loans GEL 87.2 mln Page 8 Total Gross WM Loans GEL 44.2 mln

9 And Conservative Provisioning Policy Loan Book Collateralisation 89.% in 27 NPLs/Gross Loans To Clients NPL Coverage Ratio 5.% 4.5% 4.% 3.5% 3.% 2.5% 4.5% 2.3% 16.% 14.% 12.% 1.% 8.% 117.9% 129.9% 148.2% 2.% 1.5% 1.%.5%.% 1.5% % 4.% 2.%.% Top Ten & Top 2 Borrower Concentration Reserve For Loan Losses To Gross Loans 3.% 25.% 24.3% 25.5% 6.% 5.% 5.3% 2.% 15.% 1.% 16.% 16.6% 15.3% 18.6% 4.% 3.% 2.% 2.5% 3.% 2.7% 2.2% 1.5% 5.% 1.%.% % Top Ten Borrower Concentration Top Twenty Borrower Concentration Reserve for loan losses to gross loans Cost of Risk Note: NPLs include 9 days overdue loans Page 9

10 Diversified Funding Base Funding Sources, YE 27 Client Deposits, YE 27 (+143% y-o-y) Interbank Loans, 1.% Other liabilities, 15.7% Demand Deposits, 7% Individual Current Accounts, 5.% International Borrowings, 28.% Corporate Time & Demand Deposits, 8.5% UBDP, 2% Current Accounts, 42% Equity, 18.8% Individual Time & Demand Deposits, 8.7% Corporate Current Accounts, 14.2% Time Deposits, 31% Total Liabilities GEL 2,422 mln Total Equity GEL 56 mln Note: Other Liabilities include Client Deposits of UBDP (GEL 268 mln) Total Client Deposits GEL 1,362 mln Liquidity Risk Management, YE 27 Currency Risk Management, YE 27 GEL mln 1, Up To 1 Month, Consolidated (224.6) Month 3 Month - 1 Year 1-5 Years Over 5 Years Past Due (129.) 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.% 5.5% 2.1% 4.9% 7.5% 1.8% 9.2% 15.1% 16.% Assets Liabilities Accumulated Liquidity Gap.% Q1 27 Q2 27 Q3 27 Q4 27 Open Currency Position As % Of Regulatory Capital Note: Liquidity & Currency Risk Management calculations are based on the National Bank of Georgia requirements Page 1

11 Business Overview Page 11

12 In 27 non-banking Total Operating Income contribution of 22.9% vs. 8.4% in 26 In 27 non-banking Pre-Bonus contribution of 27.5% vs. 1.4% in 26 In 27 non-banking Net Income contribution of 32.8% Bank of Georgia 27 Business Unit Results Total Operating Income (Revenue) Pre-Bonus Result Net Income (GEL, ) 27 Y-O-Y Y-O-Y Y-O-Y 26 Growth Growth Growth CIB 71,519 78% 4,184 42,875 8% 23,834 28,763 95% 14,784 RB 93,255 15% 45,549 4, % 15,85 26, % 9,697 WM 5,128 14% 2,518 2,81 164% 1,65 1,93 191% 663 Ukraine 6,981 NMF N/A 2,29 NMF N/A 1,656 NMF N/A Corporate Centre/Eliminations (8,993) NMF 14,36 (1,741) NMF 4,523 (8,598) NMF 1,628 Subtotal 167,889 64% 12,611 86,42 91% 45,227 5,73 89% 26,772 Galt & Taggart Securities 2,96 633% 2,851 15, % 2,193 1,598 52% 1,76 AM 23, % ,412 NMF (1,128) 14,829 NMF (1,133) Insurance 5, % 5,868 (386) -4% (43) (714) 14% (627) Subtotal 49,79 43% 9,393 32, % ,713 NMF (.4) Total 217,679 94% 112,5 119,215 16% 45,889 75, % 26,772 Total Operating Income (Revenue) Pre-Bonus Result Net Income (US$ ) 27 Y-O-Y Y-O-Y Y-O-Y 26 Growth Growth CIB 44,935 92% 23,451 26,938 94% 13,99 18,72 19% 8,628 RB 58,592 12% 26,583 25,3 174% 9,224 16, % 5,659 WM 3, % 1,47 1, % 622 1, % 387 Ukraine 4,386 NMF N/A 1,388 NMF N/A 1,41 NMF N/A Corporate Centre/Eliminations (5,651) NMF 8,381 (1,94) NMF 2,64 (5,42) NMF 95 Subtotal 15,484 76% 59,884 54,298 16% 26,395 31,857 14% 15,624 Galt & Taggart Securities 13, % 1,664 9,97 674% 1,28 6, % 1,27 AM 14, % 393 1,94 NMF (658) 9,317 NMF (661) Insurance 3, % 3,425 (243) 3% (235) (448) 23% (366) Subtotal 31, % 5,482 2, % ,527 NMF (.2) Total 136,768 19% 65,366 74,92 18% 26,781 47,384 23% 15,624 Page 12

13 Bank of Georgia 27 Business Unit Results cont d In % of Total Assets attributed to non-banking Assets vs. 6.6% in 26 In % of Total Liabilities attributed to non-banking liabilities vs. 4.7% in 26 Total Assets Total Liabilities (GEL ) YE 7 Y-O-Y YE 6 YE 7 Y-O-Y YE 6 Growth Growth CIB 1,421,87 166% 535,26 1,137,858 15% 455,616 RB 1,125,152 21% 373,462 79,797 17% 263,57 WM 84, % 11,858 94,867 64% 57,829 Ukraine 35,25 NMF N/A 283,457 NMF N/A Corporate Centre/Eliminations (24,639) NMF 212,42 88,26 289% 22,671 Subtotal 2,777,55 145% 1,132,748 2,314,185 19% 799,173 Galt & Taggart Securities 62, % 19,975 28,49 329% 6,642 AM 78,58 254% 22,196 33,519 32% 7,973 Insurance 63,545 65% 38,48 45,324 84% 24,68 Subtotal 24,39 154% 8,578 17, % 39,295 Total 2,981, % 1,213,326 2,421, % 838,468 Total Assets Total Liabilities (US$ ) YE 7 Y-O-Y YE 6 YE 7 Y-O-Y YE 6 Growth Growth CIB 893, % 312, , % 265,898 RB 76, % 217, ,964 19% 153,52 WM 53,42 666% 6,92 59,65 77% 33,749 Ukraine 22,62 NMF N/A 178,96 NMF N/A Corporate Centre/Eliminations (128,574) NMF 123,958 55,42 319% 13,231 Subtotal 1,744,82 164% 661,73 1,453, % 466,398 Galt & Taggart Securities 39,7 235% 11,657 17,9 362% 3,876 AM 49, % 12,953 21,6 353% 4,653 Insurance 39,925 78% 22,415 28,477 98% 14,43 Subtotal 128, % 47,25 67, % 22,933 Total 1,873, % 78,98 1,521, % 489,331 Page 13

14 Business Unit Highlights Corporate & Investment Banking (CIB) Major new corporate client acquisitions include 15 subsidiary companies of State Oil Company of Azerbaijan ( SOCAR ), Sheraton Metekhi Palace Hotel, Kaztransgaz (Tbilisi natural gas distribution company) and Wissol, a leading Georgian gasoline retail chain. Increased the number of corporate clients using the bank s payroll services from 48 at the end of 26 to over 7 by the end of 27. By 31 December 27, the number of individual clients serviced through the corporate payroll programs administered by the bank increased from approximately 83,5 at the beginning of the year to over 15,. More than 16, legal entities opened accounts at the bank during 27, bringing the total to over 64,. Retail Banking (RB) Launched a co-branded student card (Bali Card) with Magti, Georgia s leading Mobile Operator. Bali is Magti s sub-brand targeting the young population segment. Bali Card combines debit chip card and transport contactless application (a so called hybrid card), which can be used at Tbilisi Metro (subway) for transit passes. Acquired a 51% equity interest in JSC Nova Technology, which operates a network of approximately 1, POS and 2 self-service terminals offering a range of payment services, including, inter alia, mobile top-up and utility payments. Other services are expected to be added in the near future. Increased the number of retail current accounts from approximately 42, at the beginning of the year to more than 7, by 31 December 27. Increased the number of branches (service centers) in Georgia from 1 at the beginning of the year to 117 by 31 December 27. Purchased commercial space previously rented for seven existing branches, which resulted in cost savings of GEL.3 million per annum. Bought and leased premises for 34 new branches, which are expected to be fully renovated and operational by the end of 28. Stepped up the issuance of credit cards, as the number of credit cards issued reached approximately 18,538 by the end of 27 since the launch in Q4 26. As of 31 December 27, the number of credit cards outstanding amounted to 18,616, up from 356 at the beginning of the year. Increased the issuance of debit cards, with over 32, debit cards issued in 27, compared to approximately 24, debit cards issued during 26. The number of debit cards outstanding increased from approximately 285, at the beginning of the year to approximately 538, by the end of December 27. Continued to make gains in merchant acquiring as the installed POS terminal footprint grew to 1,594 compared to 471 at year end 26. Total number of cards serviced by Georgian Card grew from 37, at the beginning of the year to 876,263 by 31 December 27, while the number of transaction authorisations processed by Georgian Card in 27 grew 157.5% y-o-y to approximately 18.7 million. The volume of transactions processed grew to GEL 1,22 million, up 134.6% y-o-y. Continued investing in the electronic banking channels, as the number of ATMs grew to 25 by 31 December 27 (up from 124 at the beginning of the year), number of mobile banking users reached 39,73, and number of registered Internet banking users grew 26.6% to over 114,612. POS express consumer lending, commenced by the bank in 26 to complement its branch-based general-purpose consumer lending, resulted in the 969 express loan POS contracts signed with merchants (of which 64 outlets were served by 31 December 27). POS express loan originations have reached GEL 16.6 million in 27 (up 244.6% y-o-y), while POS express loans outstanding amounted to GEL 61.3 million at the end of December 27, up 176.4% y-o-y. Increased mortgage loan originations to GEL 169. million in 27 (up 227.8% y-o-y) resulting in mortgage loans outstanding by 31 December 27 of GEL 18.7 million, up 183.8% y-o-y. Car loan originations of GEL 38.9 million (up 298.6% y-o-y) resulted in car loans outstanding by 31 December 27 of GEL 37.1 million, up 279.6% y-o-y. Page 14

15 Business Unit Highlights cont d Insurance Nikoloz Gamkrelidze appointed as Chief Executive Officer of Aldagi BCI (formerly the CEO of My Family Clinic, Aldagi BCI s wholly-owned subsidiary). Major new corporate client acquisitions include two mobile operators GeoCell and Mobitel (Beeline) and Batumi International Cargo Terminal for liability insurance. Opened an additional branch of My Family Clinic in Tbilisi. Wealth Management (WM) The number of Private Banking Clients grew from 873 at the beginning of the year to 1,291 at the end of December 27. Private Banking mortgage loan originations of GEL 15.2 million (up 9.4% y-o-y) during 27 resulted in mortgage loans outstanding of GEL 22.8 million as at 31 December 27, up 32.1% y-o-y. Private Banking car loan originations of GEL 2.4 million, down by 15.5% y-o-y during 27 resulted in car loans outstanding of GEL 3. million as at 31 December 27, up 33.1% y-o-y. Galt & Taggart Securities Proprietary book grew 9.8% y-o-y to GEL 14.5 million as at 31 December 27. Galt & Taggart Securities continued to hold the leading position in equities trading in Georgia, with an approximately 63% market share in terms of trading volume. Galt & Taggart Securities Georgia successfully introduced Teliani Valley, a leading Georgian winery, to the Georgian Stock Exchange (GSE: WINE) and acted as sole placement agent on a GEL 6 million capital increase for JSC Populi, the leading Georgian supermarket chain. In its first full year of operation, Galt & Taggart Securities Ukraine ranked #19 among broker-dealers with an approximately 1.2% market share by equities trading volume in Ukraine. Galt & Taggart Securities Ukraine increased its staff to 35 full time employees. Advised on five successful M&A transactions, including the acquisition of UBDP by Bank of Georgia. Ukraine Transition Team commenced work, with Sulkhan Gvalia, Deputy CEO and Chief Risk Officer of Bank of Georgia, seconded to UBDP to spearhead the integration process. New hires include Giorgi Vakhtangishvili, Deputy CFO of Bank of Georgia responsible for Ukraine and based in Kiev, and Ognjen Nastic, Head of IT. On 31 December 27 UBDP had 4 branches and service centers, over 15, retail clients and 84 full-time employees. Acquired real estate for two branches in Kharkiv Oblast and Ivano-Frankivs Oblast, purchase price for both real estates was approximately US$1.6 million. Asset Management (AM) Bidzina Bejuashvili, formerly a Vice President at JP Morgan responsible for the equity research coverage of an oil & gas sector in CEEMEA and LATAM, appointed as Chief Executive Officer of Galt & Taggart Asset Management ( GTAM ). Launched Georgia s first ever Endowment Fund. GTAM will manage the funds raised by Bank of Georgia and International Charity Fund Iavnana for the benefit of the Fund. The market capitalisation of Galt & Taggart Capital reached GEL 78.6 million as at 31 December 27, an increase of 46.4% y-o-y and an increase of 138.9% since the company was admitted to trading on the Georgian Stock Exchange in November 26. Assets Under Management at the Aldagi BCI Pension Fund grew 142.4% y-o-y to GEL 1.2 million at the end of 27, while the number of Aldagi BCI Pension Fund members stood at 3,82 at the end of December 27, up from 2,154 members at the end of 26. Page 15

16 Bank of Georgia 27 Business Unit Results cont d CIB Revenue, PBR & Net Income RB Revenue, PBR & Net Income GEL thousands 8, 7, 6, 5, 4, 3, 2, 1, 4,184 23,834 14,784 71,519 42,875 28,763 GEL thousands 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, 45,549 15,85 9,697 93,255 4,268 26, Total Operating Income (Revenue) Pre-Bonus Result (PBR) Net Income WM Revenue, PBR & Net Income Total Operating Income (Revenue) Pre-Bonus Result (PBR) Net Income Insurance Revenue, PBR & Net Income GEL thousands 6, 5, 5,128 GEL thousands 7, 6, 5, 5,868 5,855 4, 4, 3, 2, 1, - 2,518 1, ,81 1,93 3, 2, 1, -1, -2, (43) (386) (627) (714) Total Operating Income (Revenue) Pre-Bonus Result (PBR) Net Income Total Operating Income (Revenue) Pre-Bonus Result (PBR) Net Income AM Revenue, PBR & Net Income GEL thousands 25 23, ,412 14, (1,128) (1,133) Total Operating Income (Revenue) Pre-Bonus Result (PBR) Net Income Galt & Taggart Securities Revenue, PBR & Net Income GEL thousands 25, 2,96 2, 15,768 15, 1,598 1, 5, 2,851 2,193 1, Total Operating Income (Revenue) Pre-Bonus Result (PBR) Net Income Page 16

17 Bank of Georgia 27 Business Unit Results CIB Total Assets & Liabilities RB Total Assets & Liabilities cont d GEL thousands 1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, - GEL thousands 1,421,87 1,2, 1,125,152 1,, 1,137,858 8, 79,797 6, 535,26 455, ,462 4, 263,57 2, - YE 26 YE 27 YE 26 YE 27 Total Assets Total Liabilities Total Assets Total Liabilities WM Total Assets & Liabilities Insurance Total Assets & Liabilities GEL thousands 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, - 94,867 84,422 57,829 11,858 YE 26 YE 27 GEL thousands 7, 6, 5, 4, 3, 2, 1, - 63,545 45,324 38,48 24,68 YE 26 YE 27 Total Assets Total Liabilities Total Assets Total Liabilities AM Total Assets & Liabilities Galt & Taggart Securities Total Assets & Liabilities GEL thousands 9, 8, 7, 6, 78,58 GEL thousands 7, 6, 5, 62,184 5, 4, 3, 2, 1, - 33,519 22,196 7,973 YE 26 YE 27 4, 3, 2, 1, - 28,49 19,975 6,642 YE 26 YE 27 Total Assets Total Liabilities Total Assets Total Liabilities Page 17

18 Corporate & Investment Banking Integrated client coverage in the following key sectors Construction & Real Estate Energy Fast Moving Consumer Goods Financial Institutions Foreign Organizations & Diplomatic Missions Pharmaceuticals & Healthcare Retail & Wholesale Trade State & Industry Telecommunica tions, Media & Technology Transport & Logistics SME Overview No.1 corporate and investment bank in Georgia Circa 4% market share based on customer deposits (1) Circa 3% market share based on corporate loans (2) Integrated client coverage in key sectors 64,+ clients of which 4,659 served by dedicated relationship bankers High-profile clients include Tbilisi Municipality Millennium Challenge Georgia Tbilisi Metro Rompetrol TAV Urban Lukoil Georgian Railway Magti GSM Geocell Port of Poti Port of Batumi Iberia Refreshments (Pepsi Bottler), Madneuli Beeline Saqcementi (Heidelberg Cement Georgia) GOGC Coca-Cola Bottlers Georgia Group Companies Rakeen Development EnergoPro Sheraton Metechi Palace Hotel Kaztransgaz Wissol Circa 45% market share in trade finance and documentary operations (2) Second largest leasing company in Georgia (2) Georgian Leasing Company (GLC) Galt & Taggart Securities investment banking relationship platform for key corporate clients Notes: (1) As of June 27, source: National Bank of Georgia (2) Management estimates (based on the NBG data) Corporate Loan Portfolio & Client Deposits (31 December 27) Pharmaceuticals & Healthcare, 1% Industry & State, 9% Total corporate loans GEL 87 mln Corporate Loan Portfolio & Client Deposits Growth (1) Growth, % GEL mln Other, 11% Construction & Real Estate, 13% Fast Moving Consumer Goods, 14% 394 SME, 22% Energy, 14% Note: (1)Client Deposits include current accounts, demand deposits and time deposits 283 Trade, 16% Total corporate deposits GEL 674 mln 87 YE 26 YE 27 CIB Loans Time Deposits, 29% CIB Deposits +15% y-o-y +138% y-o-y Current Accounts & Demand Deposits, 71% 674 Page 18

19 Retail Banking No. 1 Retail Bank In Georgia New Retail Sub-brand GEL mln 25. Retail Loans Originated RB Loan Portfolio & Client Deposits (31 December 27) Car Loans, 6% Legacy Retail Loans, 4% Card Overdrafts & Credit Card Balances, 1% POS Loans, 1% Consumer Loans, 19% Mortgage Loans, 28% Micro Loans, 24% Time Deposits, 59% Current Accounts & Demand Deposits, 41% Q1 '6 Q2 '6 Q3 '6 Q4 '6 Q1 '7 Q2 '7 Q3 '7 Q4 '7 (1) Monthly average Total retail loans GEL 644 mln Total retail deposits GEL 342 mln Leadership in Consumer Lending Feb-8 YE 27 YE 26 POS Contracts Signed 1, Exclusive Outlets Operating Outlets Served Number of Consumer Loans Outstanding* 52,551 5,12 23,338 Volume of Consumer Loans Outstanding (GEL mln)* Relationship With Car Dealers Exclusive Presence In Outlets Credit Cards Outstanding 132,177 18, Retail Loan Portfolio & Client Deposits Growth (1) Growth, % +129% y-o-y +66% y-o-y GEL mln YE 26 YE 27 RB Loans RB Deposits * data does not includes WM Consumer Loans Notes: (1) Deposits include current accounts, demand deposits and time deposits Page 19

20 RB & WM - Continuous Increase In Loan Origination Capacity Mortgage Loans Originated Consumer Loans Originated GEL mln % ,7 3,5 2,8 GEL mln % ,189 7, 56, ,323 2,1 1, ,432 42, 28, 14, Volume of mortgage loans originated (LHS) Number of mortgage loans originated (RHS) Volume of consumer loans originated (LHS) Number of consumer loans originiated (RHS) Micro Loans Originated Other Retail And WM Loans Originated* GEL mln % ,638 2, 16, GEL mln % ,78 18, 144, ,962 12, 8, 4, ,683 18, 72, 36, Volume of micro loans originated (LHS) Number of micro loans originated (RHS) Volume of other RB & WM loans originated (LHS) Number of other RB & WM loans originated (RHS) * Does not include Legacy Retail Loans and Card Overdrafts Page 2

21 RB Cross-Selling Gaining Momentum Product/Client Ratio RB Loans Penetration Rate 1,8, 1,5, 1,2, 9, 6, 3, Dec-6 Mar-7 Jun-7 Sep-7 Dec-7 Number of clients (RHS) Number of products (RHS) Product/Client Ratio (LHS) % 3% 25% 2% 15% 1% 5% % 28.% 27.5% 15.8% 17.6% 29.1% 21.4% 31.8% 32.% 26% 3% 1.8% 1.9% 2.% 2.1% 2.1%.5%.5%.6%.6%.7% Dec-6 Mar-7 Jun-7 Sep-7 Dec-7 Mortgage Loan Penetration Rate Consumer Loan Penetration Rate Micro Loan Penetration rate Other Loans Penetration Rate Cards Penetration Rate Current Accounts & Deposits Penetration Rate 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 92.2% 85.3% 79.% 68.% 72.1% 18.6% 12.8%.1% 1.3% 4.5% Dec-6 Mar-7 Jun-7 Sep-7 Dec-7 12% 1% 8% 6% 4% 2% % 1.6% 91.2% 83.5% 7.7% 73.5% 3.6% 23.1% 2.2% 19.2% 2.3% 4.4% 4.7% 4.7% 5.1% 5.4% Dec-6 Mar-7 Jun-7 Sep-7 Dec-7 Debit Cards Penetration Rate Credit Cards Penetration Rate Demand & Term Deposits Penetration Rate Universal Current Accounts Penetration Rate Standard Current Accounts Penetration Rate Page 21

22 Leadership In Card Processing Client Banks Number of Cards Serviced by Georgian Card 56% ownership of Georgian Card Migration to TietoEnator Transmaster in 25 Enhanced functionality and new product support 's YE 25 Mar-6 Jun-6 Sep-6 Dec-6 Mar-7 Jun-7 Sep-7 Dec-7 Bank of Georgia Other Banks Transaction Authorisations By Georgian Card Georgian Card s Revenue & Assets 's 7, 6, 5, 4, 3, 2, 1, 6,584 5,27 4,224 2,954 2, ,776 1,15 Q1 6 Q2 6 Q3 6 Q4 6 Q1 7 Q2 7 Q3 7 Q4 7 GEL mln Dec-5 Dec-6 Mar-7 Jun-7 Sep-7 Dec Total Assets (LHS) Revenue (RHS) Page 22

23 Superior Retail Footprint & Consumer Reach 25/Ongoing Investment Focus 131 Branches 31 ATMs POS Internet Call Center SMS Banking Banking Service Delivery Channels 88 flagship (full service) branches 13 on fiber optic network 2 new branches being bought or fitted out in 28 Utility & other payments (2 vendors) Visa/MasterCard Merchant Acquiring Licenses 2,63 POS terminals Full transactional functionality 128-bit SSL encryption Online payments (13 vendors) 24/7 25 operators Fully functional enterprise class IP call center supplied by Cisco Systems, scalable to up to 2 operators Balances Transactions & notifications Hypo+/Auto+/Micro Loan+/Deposits Product Pull MeloMoney/Student Loan+/ Traveler+/Ski+ As of 31 March 28: 59,+ debit cards/77,+ current accounts Approximately 15,+ employees served through Payroll Services Estimated 4% market share 26/27 Investment Focus Alternative Customer Acquisition Channels Chemebi Consumer Insurance brand since 26 Circa 2, clients Aversi 1+ outlets Co-branded cards/exclusive POS acquiring The largest supermarket chain with 31 outlets 19.9% owned by BoG Exclusive POS acquiring Co-branded cards/instore promotion of BoG products Travel agency with 4% market share 14 outlets 78 subagents 84% owned by BoG Full exclusivity on banking & insurance cross-selling 45% market share with 1.1 mln+ active mobile subscribers Co-branded loyalty debit cards 55% market share with 1.3+ mln active mobile subscribers Project launched jointly with Nokia & Magti in March 27 Selling 3G Nokia handsets on credit 1 mln+ passenger trips per year Sole servicing bank & fair collection operator Small service centers have been opened in all 23 subway stations Page 23

24 Extensive Distribution Network Of 131 Branches As of March 31, 28 Page 24

25 Wealth Management (WM) Performance Review US$ mln Private Banking Clients and Client Assets Nil , ,187 1, Q1 27 Q2 27 Q3 27 Q4 27 Private Banking Client Assets (LHS) Private Banking Clients (RHS) Notes: (1) Converted at exchange rates of GEL/US$, (25),1.714 (26), 1.7 (Q1 27), 1.67 (Q2 27), 1.66 (Q3 27) and 1.59 (Q4 27) (2) PB Client Assets include: Balances on OneCard Accounts, Credit Balances on Other Cards, Credit Balances On Regular Current Accounts, Demand & Time Deposits, Brokerage & Asset Management Accounts, Pensions Private Banking Loans and Deposits (31 December 27) % 14% 12% 1% 8% 6% 4% 2% % Private Banking Products Penetration 134% 138% 12% 16% 92% 8% 83% 82% 8% 8% 66% 63% 83% 8% 65% 42% 64% 64% 22% 22% 16% 16% 15% 14% 12% 14% 6% 17% 13% 13% Mar-7 3-Jun-7 Sep-7 Dec-7 OneCard Penetration Rate All Other Cards Penetration Rate Demand & Term Deposits Penetration Rate Internet Banking Penetration Rate SMS Banking Penetration Rate Private Banking Products Penetration 12% Car Loans, 7% Other, 4% 1% 99% 97% 8% 8% Consumer Loans, 37% Mortgage Loans, 52% Time Deposits, 31% Current Accounts & Demand Deposits, 69% 6% 4% 2% % 56% 51% 4% 39% 33% 31% 25% 19% 22% 12% 12% 12% 3% 5% 4% 4% 4% 3% 4% 3% 4% Mar-7 3-Jun-7 Sep-7 Dec-7 Loan Penetration Rate Insurance Products (Non-Life) Penetration Rate Life & Pensions Penetration Rate Brokerage & Asset Management Accounts Penetration Rate Total PB loans GEL 44 mln Total PB deposits GEL 7 mln Page 25

26 UBDP Progress Review Bank of Georgia Team Leading The Transition Sulkhan Gvalia Grigol Katamadze Dmytro Perepolkin Tornike Gogichaishvili Giorgi Vakhtangishvili Ognjen Nastic Ekaterina Kvantrishvili Spearheading integration of UBDP with Bank of Georgia group; Deputy CEO of Bank of Georgia since January 25; One of the founders of TbilUniversalBank ( TUB ), acquired by Bank of Georgia in December 24 Went through all aspects of integration of Bank of Georgia and TUB and Bank of Georgia and Intellectbank in February 26. Director of BOG International business development. Prior to joining BoG, Mr. Katamadze was an Ambassador of Georgia in Ukraine. Prior to this appointment, Mr. Katamadze served as the Deputy Minister of Defense of Georgia. Prior to that, Mr. Katamadze served in various positions at the Ministry of Foreign Affairs of Georgia, including as Ambassador of Georgia in Ukraine, Moldova and Romania in 21-23, as Deputy Ambassador of Georgia in Ukraine in and Deputy Head of Foreign Economic Relations Department in Mr. Katamadze obtained his graduate degree in International Law and International Relations from Taras Shevchenko University of Kyiv. Led the acquisition of UBDP from Bank of Georgia side; Spearheaded the establishment of Galt & Taggart Ukraine in 26-27; Worked as a Senior Associate at Concorde Capital (Kyiv, Ukraine) prior to joining Galt & Taggart Ukraine CFO of UBDP. Prior to UBDP worked within BOG group as CEO of Aldagi BCI. Prior to that was employed as CFO at PA Consulting Group/United Energy Distribution Company ( UEDC ) of Georgia. Prior to joining UEDC in 24, Mr. Gogichaishvili served in various positions at BCI, including as CFO in 24, Operations Director in 23 and 24 and as legal counsel in 22 and 23. Mr. Gogichaishvili holds an MBA from Caucasus School of Business and an LLM from Tbilisi State University, Faculty of International Law and International Relations. Deputy CFO of Bank of Georgia responsible for Ukraine. Joined from Ernst & Young LLC, Kyiv Office; Spearheading of transformation of budgeting, management and IFRS reporting and audit functions of UBDP Head of IT Ukraine Leads integration of IT systems Head of Retail Banking at UBDP. Joined from Investrustbank, Russia. Prior to joining Investrustbank, Russia Ms. Kvantrishvili served as the Head of Retail Banking at Bank of Georgia from July 25 through September 27. Prior to joining Bank of Georgia, Ekaterina Kvantrishvili was Head of Collections at Rusfinance (the Russian consumer lending joint venture between Sociйtй Gйnйrale and Baring Vostok Capital Partners). Ekaterina Kvantrishvili holds an undergraduate degree from Boston University School of Management. Key Tasks of UBDP Team in 27/1H 28 Comprehensive understanding of UBDP business processes. Design and enhance organisation structure Implement corporate and investment banking coverage model. Establish close cooperation with Galt & Taggart Establish close cooperation with Bank of Georgia CIB team to service Georgia-Ukraine trade and investment flow Import retail banking and microfinance expertise from Georgia Rebranding Aggressive hiring Page 26

27 UBDP Q4 27 Income Statement Period Ended Q4 27 IFRS Based US$ GEL Thousands, unless otherwise noted (Unaudited) Interest Income 7,48 11,217 Interest Expense 3,634 5,783 Net Interest Income 3,414 5,434 Fees & Commission Income 834 1,328 Fees & Commission Expense Net Fees & Commission Income 679 1,8 Income From Documentary Operations - - Expense On Documentary Operations - - Net Income From Documentary Operations - - Net Foreign Currency Related Income Net Insurance Income - - Brokerage Income - - Asset Management Income - - Realized Net Investment Gains (Losses) - - Other 8 12 Net Other Non-Interest Income 8 12 Net Non-Interest Income 972 1,547 Total Operating Income (Revenue) 4,386 6,981 Recurring Operating Costs Personnel Costs 1,128 1,795 Selling, General & Administrative Expenses 772 1,229 Procurement & Operations Support Expenses - - Depreciation And Amortization Other Operating Expenses 933 1,484 Total Recurring Operating Costs 3,6 4,785 Normalized Net Operating Income (Loss) 1,38 2,196 Net Non-Recurring Income (Costs) - - Profit Before Provisions And Bonuses 1,38 2,196 Provision For Loan Losses Recovery Of Loans - - Provisions For (Recovery Of) Other Assets (16) (169) Net Provision Expense (8) (12) Pre-Bonus Result 1,388 2,29 Guaranteed Compensation Expense - - EECP Expenses - - Cash Bonuses (Accrued) - - Bonuses & Share-Based Compensation Expenses - - Pre-Tax Income 1,388 2,29 Income Tax Expense (Benefit) Net Income 1,41 1,656 Page 27

28 UBDP YE 27 Balance Sheet 31-Dec-7 IFRS Based US$ GEL Thousands, unless otherwise noted (Unaudited) Cash And Cash Equivalents 39,583 63, Loans And Advances To Credit Institutions 14,835 23,611 Mandatory Reserves With NBU 2,579 4,15 Other Accoutns With NBU 7,98 11,298 Balances With And Loans To Other Banks 5,157 8,28 Available-For-Sale Securities - - Treasuries And Equivalents 22,423 35,688 Other Fixed Income Instruments - - Loans To Clients, Gross 142, ,393 Less: Reserve For Loan Losses (4,7) (6,478) Net Loans To Clients 138, ,915 Investments In Other Business Entities, Net - - Property And Equipment Owned, Net 3,972 6,322 Intangible Assets Owned, Net Goodwill - - Tax Assets, Current And Deferred - - Prepayments And Other Assets 84 1,338 Total Assets 22,62 35,25 Client Deposits 2,753 4,382 Deposits And Loans From Banks 168, ,758 Borrowed Funds - - Issued Fixed Income Securities 3,137 4,993 Insurance Related Liabilities - - Tax Liabilities, Current And Deferred 2,89 4,599 Accruals And Other Liabilities 1,84 1,725 Total Liabilities 178,95 283,457 Share Capital - Ordinary Shares 29,7 46,268 Share Premium - - Treasury Shares - - Retained Earnings 8,836 14,64 Revaluation And Other Reserves (13) (164) Net Income For The Period 4,163 6,626 Shareholders Equity Excluding Minority Interest 41,966 66,793 Minority Interest - - Total Shareholders Equity 41,966 66,793 Total Liabilities And Shareholders Equity 22,62 35,25 Page 28

29 Galt & Taggart Securities Client Assets Under Custody Revenue, Pre-Bonus Result & Net Income Placement of 12,495,519 shares & Introduction to the Georgian Stock Exchange Sole Placement Agent US$ mln GEL s 25, 2, 15, 1, 2,96 15,768 1,598 1 May 27 5, 2, GEL 1,8, Note: (1) Converted at exchange rates of GEL/US$ (24), (25), (26), 1.59 (27) Rights Issue 2,193 1, Revenue Pre-Bonus Result Net Income Total Assets, Proprietary Book & Equity Galt & Taggart Securities Overview Sole Placement Agent March 27 GEL s 7, 6, 5, 4, 3, 2, 1, 19,975 62,184 35,957 15,664 7,353 YE 26 YE 27 14,518 Georgia & Ukraine Agency brokerage, research, sales & trading M&A and Corporate Finance advisory DCM, ECM and corporate broking Registrar and custody services 14 FTEs in Georgia and 35 FTEs in Ukraine Total Assets Shareholders' Equity Proprietary Book Page 29

30 Asset Management Review The Owner BoG The Funds Aldagi BCI Pension Fund 2 nd largest pension fund in Georgia The Manager Iavnana Endownment Fund Paata Burchuladze s International Charity Foundation GTAM Bidzina Bejuashvili Chief Investment Officer Established in October 27 2.%/15% 1.5%/15% Galt & Taggart Capital Caucasus Energy & Infrastructure Consumer, Retail, TMT, Business Support Services, Real Estate 23% Free Float Energy, Infrastructure AUM circa US$125 million as of 31 March 28 Private Placement successfully completed in February 28; Raised US$5 million 1.5%/15% SB Real Estate In the process of being opened up to third parties Commercial, War ehousing, Leisure/ Vacation Home, Other % TBD New Funds (28) Page 3

31 Asset Management Review Cont d Galt & Taggart Capital (GTC) MCAP: US$5 million GSE: GTC Investments include consumer, retail, TMT, business support services & real estate sectors Selected Portfolio Companies Caucasus Energy & Infrastructure (CEI) MCAP: US$5 million GSE: NRGY Successfully completed its first private placement in February 28, raising US$5 million Aims at investing in small and medium-sized hydro plants in Georgia, as well as infrastructure projects in the region CEI Share Price Performance GEL 's 1,5 1, , Aldagi BCI Pension Fund NAV: GEL 1.2 million Second largest Pension Fund in Georgia 2, ,82 1, AUM (LHS) Number of Participants (RHS) 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Page 31 GEL Office 25.3% Land 2.% 2-Feb-8 21-Feb-8 22-Feb-8 SB Real Estate (SBRE) NAV: US$27 million 15+ properties in the portfolio Property Breakdown as % of NAV Mixed-use % Retail 26.5% Residential 13.4% Hospitality 2.7% Warehouse 12.2%

32 Claims Reimbursed Professional Indemnity Aviation Carriers Liability Personal Accident & Travel Civil Liability Casco Cargo MTPL Voluntary Property Health Pension Life Financial Risks Marine Vessels GEL mln Gross Premiums Written Size of the Georgian Insurance Market GEL mln YE 7 YE 6 YE 5 GPW Claims Reimbursed Aldagi BCI (Insurance) Overview Small insurance market (US$75 mln GPW in 27) (1)(2), but rapidly growing due to low insurance services penetration of circa.7% of GDP (3) Acquisition of BCI in November 24 (GEL 3.9 mln) Acquisition of EuroPace in October 25 Acquisition of Aldagi in December 26 (GEL13.2m) Launch of Chemebi brand in February 26 as umbrella for five consumer product lines motor, health, life, property and travel insurance Strict reinsurance policies with major reinsurers Hannover Re, Munich Re, AIG, Lloyds and SCOR Notes:(1) Source: State Insurance Supervision Service of Georgia (2)Converted at GEL/US$ (3) 27 GDP Aldagi BCI Market Share by Product (27) Imedi L 1% Irao 13% Georgian Insurance by GPW (31 December 27) Market Shares (%) Product Breakdown (%) Pensions Personal Accident & Travel Other Life 3%2% Others 5% Civil Liability 4% Aldagi BCI 4% 18% Health Aviation 5% 35% & Cargo 37% Financial Risks GPIH 24% Source: State Insurance Supervision Service of Georgia 14% 17% Gross Premiums Written & Total Claims Reimbursed 9% Casco Property 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % 79% 73% 54% 53% 48% 45% 42% 4% 35% 31% 29% 24% 15% 13% % 48% 16% 29% Net loss ratio* Source: State Insurance Supervision Service of Georgia Page 32 (8.5) (11.6) (7.4) (.7) (1.3) (.9) (13.7) (2.5) (3.6) (8.2) -1 Aldagi BCI* GPIH Irao Imedi L Others * Net Loss Ratio equals Claims Reimbursed by Companies divided by Total Premiums Written

33 Slovenia Greece Czech Republic Hungary Poland Slovakia Croatia Romania Bulgaria Turkey Serbia Russia Ukraine Kazakhstan Georgia Insurance Premium Per Capita (US$) Georgian Insurance Market vs. EU & CEE/CIS 8 Insurance Premiums Per Capita vs. GDP Per Capita 6 Czech Republic 4 Slovakia Hungary 2 Bulgaria Russia Poland Population: 1 million Georgia Ukraine Romania Serbia (26E) 5, 1, 15, GDP Per Capita (US$) Croatia Source: Swiss Re, Sigma No 5/26, Georgian State Pension Supervision Agency, Galt & Taggart Securities estimates Life Insurance Density* and Penetration**, 26 US$ Life Insurance Density (LHS) Density US$.2 Penetration.1% Life Insurance Penetration (RHS) Source: Swiss Re, Sigma No 4/27, Georgian State Pension Supervision Agency *Life Insurance Premium Written Per Capita ** Life Insurance Premiums as % of GDP 2.% 1.8% 1.6% 1.4% 1.2% 1.%.8%.6%.4%.2%.% GDP per Capita, PPP (26, US$) Penetration* (26) Density** (26, US$) Greece 23,5 1.8% 489 Czech Republic 21,6 3.8% 52 Hungary 17,3 3.4% 376 Poland 14,1 3.5% 31 Russia 12,1 2.3% 151 Bulgaria 1,4 2.6% 11 Turkey 8,9 1.6% 89 Ukraine 7,6 2.8% 6 Georgia 3,8.5% 9 Page 33 *Gross Premium Written As % of GDP **Gross Premiums Written Per Capita Source: Swiss Re, Sigma No 4/27, Georgian State Pension Supervision Agency, Galt & Taggart Securities estimates, CIA World Factbook

34 Selected Transactions 26 GEL 13,2, Acquisition of a 1% equity interest in Acquisition of assets and liabilities of GEL 2,57,52 Block Trade Admission to trading on the Georgian Stock Exchange US$159,843,723 Initial Public Offering on the London Stock Exchange JSC Aldagi 8,88,27 shares in the form of Global Depositary Receipts Sole Adviser Sole Adviser Broker Coordinator & Market-maker Selling Agent December 26 February 26 December 26 April 26 November 26 GEL 6,155,625 Placement of 1,259,375 Shares & Admission to trading on the Georgian Stock Exchange US$25,, Subordinated Convertible Loan Facility From US$5,, 1-year Subordinated Loan Facility from GEL 2,46,328 Placement of 25% of share capital to GEL 5,, Private placement of 15% one-year zero coupon bonds Sole Placement Agent Sole Adviser Sole Adviser Sole Placement Agent Sole Underwriter November 26 October 26 August 26 May 26 December 26 Page 34

35 Contact Nick Enukidze Chairman of the Supervisory Board nenukidze@bog.ge Irakli Gilauri Chief Executive Officer igilauri@bog.ge Macca Ekizashvili Head of Investor Relations ir@bog.ge Page 35

36 Appendices Page 36

37 Bank of Georgia Overview Page 37

38 The bank has tripled in size under new management Unique management team composition for a CIS bank Stellar acquisition and integration track record Increasingly diversified revenue stream An established borrower in international markets Unprecedented level of institutional interest. Institutional ownership c. 85% + unique for a CIS bank Bank of Georgia Development Milestones Development Period 2-3Q 24 4Q Growth Since YE 23 New Management Team Takes Over IFRS Consolidated (1) FY 23 FY 24 FY 25 FY 26 FY 27 Total Assets (e-o-p) US$111 mln US$199 mln US$257 mln US$725 mln US$1,873 mln 1588% Loan Book (e-o-p) US$73 mln US$14 mln US$175 mln US$433 mln US1,81 mln 1381% Client Deposits (e-o-p) US$57 mln US$138 mln US$151 mln US$338 mln US$856 mln 141% Equity (e-o-p) US$26 mln US$3 mln US$51 mln US$216 mln US$352 mln 1253% MCAP (e-o-p) US$2 mln US$35 mln US$69 mln US$567mln US$81 mln 399% Number of Western- Trained Professionals Key Acquisitions TUB Galt & Taggart IntellectBank, acquisition of assets & liabilities Merchant Banking Acquisitions BCI GLC Merchant banking acquisitions Georgian Card Europace Galt & Taggart Ukraine established 98.8% of UBDP acquired 9.9% of UBDP acquired Aldagi Key Business Lines Retail Banking Retail Banking Retail Banking Retail Banking Retail Banking Corporate Banking Corporate Banking Corporate Banking Corporate Banking Corporate Banking Trade Finance Trade Finance Trade Finance Trade Finance Trade Finance Foreign Exchange Foreign Exchange Foreign Exchange Foreign Exchange Foreign Exchange Investment Banking Investment Banking Investment Banking Investment Banking Investment Banking Insurance Insurance Insurance Insurance Leasing Leasing Leasing Pensions Pensions Pensions Private Banking Private Banking POS Consumer Loans POS Consumer Loans Merchant Banking Merchant Banking Asset Management Key Lenders BSTDB KfW US$3.5 mln guarantee facility World Business Capital US$1 mln loan with OPIC guarantee FMO US$12.5 mln loan* DEG EBRD US$1 mln facility Citigroup US$25 mln unsecured term loan AKA Bank GEL 2. mln bond placement Thames River Capital US$5 mln subordinated loan EBRD Commerzbank US$ 3.8 mln Merrill Lynch US$25 mln convertible subordinated loan IFC HBK Investments US$25 mln convertible subordinated loan Institutional Ownership 28% 37% 5% 85% 85% Notes: (1) Converted at exchange rates of GEL/US$ of 2.75 (23), (24), (25), (26) and (27) (2) Growth rates calculated using amounts in US$ * Signed in December 26, disbursed in January 27 US$2 mln debut Regulation S 5-year unsecured Eurobond US$123.5 mln syndicated loan arranged by Citi and ADB Merrill Lynch US$35 mln subordinated loan HBK Investments US$15 mln subordinated debt Merrill Lynch US$65 mln loan facility Page 38

39 Bank Of Georgia Our Vision & Mission One Firm Strong management Shared expertise Cross-sell synergies Shared services & infrastructure Cost efficiency Our vision is to be recognized as the best financial services company in Georgia Our mission is to create long-term value by building a relationship-driven, client-facing integrated financial services company based on the core values of excellence in execution, teamwork, integrity and trust Retail Banking Objectives set in October 24 Status YE 26 The largest Georgian retail bank, offering consumers the broadest range of services through multiple channels Achieved Corporate & Investment Banking A leader in corporate banking, bank of choice for inbound foreign corporates The undisputed leader in investment banking Integrated offering to large corporates through strong client coverage culture Achieved Achieved Achieved Insurance A leading player in the non-life sector, cross-selling insurance to corporates A leading life insurance and pensions provider Achieved Achieved Asset & Wealth Management The undisputed domestic leader in wealth management, with niche appeal to sophisticated non-resident investors A leading player in domestic private equity and venture capital Achieved Achieved Page 39

40 Bank of Georgia Price Performance Page 4

41 Sep-4 Oct-4 Nov-4 Dec-4 Jan-5 Feb-5 Mar-5 Apr-5 May-5 Jun-5 Jul-5 Aug-5 Sep-5 Oct-5 Nov-5 Dec-5 Jan-6 Feb-6 Mar-6 Apr-6 May-6 Jun-6 Jul-6 Aug-6 Sep-6 Oct-6 Nov-6 Nov-6 Dec-6 Jan-7 Feb-7 Mar-7 Apr-7 May-7 Jun-7 Jul-7 Aug-7 Sep-7 Oct-7 Nov-7 Dec-7 Jan-8 Feb-8 Ownership Structure & Share Price Performance The second highest free float (95%) of all emerging EMEA banks Broadly owned by over 1 institutional accounts Highly dispersed ownership Ownership structure, February 28 Local Institutional Shareholders 17.3% Individuals Management & 7.5% Employees 5.1% Non-Resident Institutional Shareholders 7.1% 22-Feb-8 Total % GDR Holders* 21,898, % Local Shares Held by Institutional Shareholders 5,44, % Management & Employees** 1,61, % Local Shares Held by Domestic and Foreign Retail Shareholders 2,339, % Total Shares Outstanding 31,244,92 1.% Adjusted for Galt & Taggart Securities' Proprietary Book (1) (31,378) Adjusted Total Shares Outstanding 3,933,714 *through BNY Nominees Limited ** includes GDRs held by Employee Benefit Trust (1) Treated as treasury shares as per IFRS Note: certain shareholder data is based on management s estimates Bank of Georgia Share Price Performance Bank of Georgia GDR Price Performance US$ New management team commences turnaround. September 24 share price US$2. MCAP US$2 mln; P/BV.8x as at September YE share price of US$4.7 MCAP US$68.7 mln Reg S offering of the GDRs on the LSE MCAP US$27 mln US$ Listing on the London Stock Exchnage on 29 November 26 Offer price US$18; MCAP US$44 mln 5. BUY/US$47.9 7BUY/US$44.7 HOLD/US$42.8 BUY/US$ BUY/US$35.8 BUY/US$ BUY/US$45.2 BUY/US$47.9 BUY/US$ BUY/US$44.7 BUY/US$ BUY/US$43 BUY/US$31 HOLD/US$47.2 BUY/US$ HOLD/US$ BUY/US$34 BUY/US$41.8 IPO Price BUY/US$ Page 41

42 26-27 Price Performance Bank of Georgia Price vs. Selected MSCI Indices, 26 Bank of Georgia Price vs. CIS Banks 27 & 28YTD Price Performance Bank of Georgia Price (US$) Bank of Georgia Price (US$) Kazkommertzbank MSCI EM Russia Price Index (US$) Alliance Bank MSCI EM Eastern Europe Price Index (US$) Halyk Ukrainian Banks Index MSCI EM Banks Index Ukrgazbank Vozrozhdenie MSCI EM EMEA Price Index (US$) Rodovid MSCI EM Turkey Price Index (US$) -1% 9% 19% 29% 39% 49% Ukrsotsbank Bank of Georgia Price vs. Selected MSCI Indices, 27 28YTD Ukrainian Banks Index MSCI EM Banks Index Bank of Moscow Raiffeisen Aval Bank Sberbank MSCI EM EMEA Price Index (US$) Rosbank MSCI EM Eastern Europe Price Index (US$) Bank of Georgia MSCI EM Russia Price Index (US$) Bank of Georgia MSCI EM Turkey Price Index (US$) VTB Forum Bank -3% -2% -1% % 1% 2% 3% 4% 5% 6% 7% 27 Y-O-Y Change 28 YTD Change -5% -3% -1% 1% 3% 5% 7% 9% 11% Source: Galt & Taggart Securities Page Y-O-Y Change 28 YTD Change Source: Bloomberg

43 Analyst Coverage Analyst Recommendation Date of Recommendation David Nangle BUY/US$ February 28 Analyst Recommendation Date of Recommendation Andrzej Nowaczek BUY/US$ February 28 Analyst Recommendation Date of Recommendation Milena Ivanova ivanovam@ca-ib.com BUY/US$ February 28 Page 43

44 Our Team Page 44

45 Our Team Nicholas Enukidze, 37, Chairman ABN AMRO, Concorde Capital, Global One MBA, University of Maryland Supervisory Board Ian Hague, 46, Member Firebird Management LLC, United Nations Secretariat MA, Monterey Institute of International Studies Allan Hirst, 58, Member Citigroup MBA, University of Texas Jyrki Talvitie, 41, Member UralSib, BNP Paribas, Bank of New York MBA, London Business School; LLM, University of Helsinki Kaha Kiknavelidze, Member Rioni Capital, UBS, Bank of Georgia MBA, Emory University Nicholas Enukidze, 37, Acting Chairman ABN AMRO, Concorde Capital, Global One MBA, University of Maryland Group Management Irakli Gilauri, 31, Chief Executive Officer EBRD MSc, Cass Business School of City University Macca Ekizashvili, 33, Head of Investor Relations IFC MBA, George Washington University Thea Jokhadze, CFA, 31, Head of Debt Capital Markets (Group Head of Funding) Pace Global Services, CMS Energy Corp MA degree, Johns Hopkins University, School of Advanced International Studies Gvantsa Shengelia, 37, Head of Compliance Deutsche Bank, Morgan Stanley MA Degree in Economic Geography, Tbilisi State University Avto Namicheishvili, 33, Group General Counsel Begiashvili & Co Limited LLM, Central European University David Vakhtangishvili, 29, Chief Financial Officer Ernst & Young LLC BBA, ESM-Tbilisi, 1 st Level CPA, US Alexander Oleshko, 31, Chief Information Officer Private Bank, Premier Bank, Control Pay BV, Superweb BA University of Dnepropetrovsk Page 45

46 Our Team Cont d Irakli Gilauri, 31, Chief Executive Officer EBRD MSc, Cass Business School of City University Commercial Banking, Georgia Ramaz Kukuladze, 35, Deputy Chief Executive Officer BCI, AbsolutBank, TbilCreditBank MA degree, Bank Academy of ESM Tbilisi, MBA degree from Instituto de Empresa expected in July 28 Lekso Liparteliani, 33, Co-Head of Corporate & Investment Banking Galt & Taggart Securities, State Department for Statistics of Georgia PhD in Mathematics, Tbilisi State University Gvantsa Shengelia, 37, Head of Compliance Deutsche Bank, Morgan Stanley MA Degree, Tbilisi State University Constantin Tsereteli, 35, Co-Head of Retail Banking Constanta Foundation, World Vision MA Degree in Legal Studies, Tbilisi State University; MA Degree in Medieval Studies, Central European University; Diploma in Byzantine Studies, University of Oxford Mikheil Gomarteli, 32, Co-Head of Retail Banking Bank of Georgia MA Degree in Economics, Tbilisi State University Vasil Khodeli, 31, Co-Head of Corporate & Investment Banking Bank of Georgia, TbilInterBank MA Degree in Economics, Tbilisi State University Deborah Fairlamb, 4, Group Head of Wealth Management UBS, Merrill Lynch BA in Literature, University of Delaware Irakli Burdiladze, 33, Chief Operating Officer GMT Group MA Degree, Johns Hopkins University, School of Advanced International Studies David Vakhtangishvili, 29, Chief Financial Officer Ernst & Young LLC BBA, ESM Tbilisi, 1 st Level CPA, US Galt & Taggart Asset Management Bidzina Bejuashvili, 37, Chief Executive Officer JP Morgan Chase, UniCredit, RZB MA Degree in Economics, Boston University Eli Enoch, 34, CEO, Galt & Taggart Capital Caucasus Financial Services, World Congress of Georgian Jews. TKTel MBA, Tel Aviv University Irakli Gogia, 25, Chief Financial Officer, Galt & Taggart Capital Deloitte & Touche, Ernst & Young BBA, ESM-Tbilisi Giorgi Nadareishvili, 37, CEO, SB Real Estate Klacken Corporation BA Degree in International Relations, Institute of Foreign Languages, Real Estate Sales Certificate, permitting to buy and sell real estate in New York State Archil Mamatelashvili, 34, CEO, Caucasian Energy Fund Energo Pro S.A., Ministry of Energy of Georgia MBA, Weatherhead School of Management of Case Western Reserve University/IMC Graduate School of Business Investment Banking Dmitry Kasatkin, 37, Chief Executive Officer ABN AMRO, PriceWaterHouseCoopers MBA, California State University Tamar Metivishvili, 26, Chief Financial Officcer PriceWaterHouseCoopers, Ernst & Young Audit LLC MBA, ESM Tbilisi Sergiy Lesyk, 35, Global Head of Equities Millennium Capital, Nomura, PriceWaterHouseCoopers MA Degree, Moscow State University Giorgi Paresishvili, 34, Global Co-Head of Sales Credit Suisse First Boston MBA, University of Michigan (Ross) Business School Lucas Romriell, 29, Head of Regional Development Concorde Capital, UralSib BA Degree in Russian Studies, University of Colorado Alexander Lisnichenko, 31, Equity Sales Kraft Foods, Nestle, Mondi Business Paper MBA, Creighton University Commercial Banking, Ukraine Genady Matuzenko, 39, CEO, Chairman of the Management Board Tax Administration, Blitz-Information Publishing Company, Bank Forum BA Degree in Applied Economics, Kyiv National Shevchenko University Igor Gordeev, 44, Deputy CEO Oschadbank, Bank Forum, Legbank BA in Banking Management, KROK Economics and Law University Sulkhan Gvalia, 33, Deputy CEO & Chief Risk Officer, BoG TbilUniversalBank BA Degree, MA in Law, Tbilisi State University Dmytro Perepolkin, 29, Head of CIB, Ukraine Concorde Capital, Five years in Consulting and Technology MBA, California State University Aleksey Teslenko, 27, Deputy CEO Finance & Credit, Legbank MA in Banking Management, Kyiv National Economic University Nick Piazza, Head of Sales Concorde Capital, Interfax BA from University at Lake Forest College in Chicago (Illinois) Jathan Tucker, Head of International Trading Concorde Capital, Goldman Sachs BA in Economics from Harvard University, MSc in Economics from London School of Economics Insurance Nikoloz Gamkrelidze, 27, Chief Executive Officer BCI Health Clinic, World Bank MSc in Health Management, Imperial College, London Ksenia Semiokhina, 33, Operations Department Director GPIH LLM, Tbilisi State University Giorgi Vakhtangishvili, Deputy CFO of Bank of Georgia responsible for Ukraine BBA from ESM-Tbilisi Ernst & Young LLC Ekaterina Kvantrishvili, Head of Retail Banking, UBDP BBA from Boston University School of Management Investrustbank, Bank of Georgia, Rusfinance Grigol Katamadze, Director of International Business Development, BoG Ambassador of Georgia in Ukraine, Ministry of Foreign Affairs of Georgia, Ministry of Defense of Georgia Graduate degree in International Law & International Relations from Taras Shevchenko University of Kyiv Tornike Gogichaishvili, Chief Financial Officer, UBDP Aldagi BCI, PA Consulting Group/United Energy Distribution Company of Georgia MBA from Caucasus School of Business, LLM from Tbilisi State University, Faculty of International Law and International Relations Page 46

47 Georgian Banking Sector Key Trends 26/27 Page 47

48 Georgian Banking Sector Key Trends 26/YTD 28 GEL/US$ Period End YE 25= 1.79 YE 26= 1.71 YE 27=1.59 Growth Market Share (YE 26) Market Share (YE 27) US$ mln YE 25 YE 26 YE 27 As % of GDP* 26 Y-O-Y 27 Y-O-Y Top 5 Banks Bank of Georgia Top 5 Banks Bank of Georgia Total Assets 1,421 2,467 4, % 65.9% 7.9% 8.1% 27.9% 8.% 35.4% Gross Loans 965 1,565 2, % 55.% 71.5% 83.2% 26.5% 81.7% 32.7% Deposits 858 1,359 2,26 2.7% 51.4% 5.9% 82.2% 24.5% 81.4% 31.4% Equity % 87.4% 65.5% 78.3% 39.9% 73.3% 34.6% Net Income % 5.5% 17.5% 8.8% 23.6% NMF 41.9% 22 banks as at 29 February 28 Minimum capital requirement GEL 12 mln and growing Consolidation underway No state ownership since 1995 Very open to foreign ownership All leading banks have meaningful foreign capital participation Significant IT/infrastructure and marketing spend drives increasing retail banking penetration Increasing adoption of the universal banking business model, following the lead of Bank of Georgia Increasing availability of non-deposit funding key to sustained growth Four top banks are rated Domestic bonds, Eurobonds, CLNs, unsecured term loans, syndicated loans, subordinated debt A small structural funding gap exists Real estate boom competes for consumer savings The economy and consumers significantly underlent (all-in consumer debt per capita US$155 at 31 January 28) Note: All data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia * YE 27Total Assets/27 GDP, YE 27 Gross Loans/27 GDP, YE 27 Deposits/27 GDP, YE 27 Equity/27 GDP, 27 Net Income/27 GDP Page 48

49 Bank of Georgia Market Share Evolution Total Assets Loans Deposits Equity YE % YE % YE % YE % YE % YE % YE % YE % YE % YE % YE % YE % % 2% 4% % 2% 4% % 2% 4% % 1% 2% 3% 4% Note: All data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia Page 49

50 Peer Group s Market Share In Total Assets Peer Group s market shares in Total Assets, YE % +79% +28% +42% +2% +28% +96% Total asset growth in 27 GEL/US$ Period End YE 25= 1.79 YE 26 = 1.71 YE 27=1.59 4% 35% 3% 25% 2% 15% 1% 5% % 46% 25% 4% 5%.3% 3% 17% Incremental market share in % 27.9% 23.7% 22.5% 14.3% 1.2% 11.1% 12.6% 7.7% 8.3% 6.9% 6.7% 7.3% 5.5% YE 26 YE 27 BoG TBC ProCredit Bank Republic VTB Ca rtu Other Banks Peer Group s market shares in Total Assets, YE % +65% +21% +31% +65% +23% +58% Total asset growth in 26 3% 43% 22% 5% 6% 8% 3% 24% 27.9% Incremental market share in 26 25% 22.6% 22.5% 2% 15% 1% 17.8% 15.3% 11.1% 12.9% 1.2% 8.3% 8.3% 9.8% 7.3% 13.2% 12.6% 5% % Bank of Georgia TBC Bank UGB ProCredit Bank Republic Cartu Other Banks Notes: (1) All data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia (2) Change in peer group total assets calculations based on GEL values YE 25 YE 26 Page 5

51 Peer Group s Market Share In Gross Loans Peer Group s market shares in Gross Loans, YE % +97% +21% +48% -8% +64% +12% Gross Loan growth in 27 GEL/US$ Period End YE 25= 1.79 YE 26 = 1.71 YE 27= % 3% 25% 2% 15% 1% 5% % 42% 3% 3% 6% NMF 7% 14% 26.5% 32.7% 22.2% 25.6% 14.% 11.8% 11.3% 8.3% 8.8% 7.6% 7.5% 7.3% 7.% 9.5% BoG TBC ProCredit Bank Cartu VTB Republic Other Banks Incremental market share in 27 YE 26 YE 27 Peer Group s market shares in Gross Loans, YE % +56% +23% +3% +37% +44% +43% Gross Loan growth in 26 3.% 25.% 2.% 27% 15% 5% 5% 4% 4% 5% 26.5% 22.% 22.2% 18.2% 17.6% Incremental market share in % 1.% 14.% 14.% 11.8% 1.% 8.8% 7.8% 7.3% 1.4% 9.5% 5.%.% Bank of Georgia TBC Bank UGB ProCredit Cartu Bank Republic Other Banks YE 25 YE 26 Notes: (1) All data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia (2) Change in peer group total assets calculations based on GEL values Page 51

52 Peer Group s Market Share In Deposits Peer Group s market shares in Deposits, YE % +5% +19% +8% +24% -12% +75% Deposit growth in 27 GEL/US$ Period End YE 25= 1.79 YE 26 = 1.71 YE 27= % 3% 25% 2% 15% 1% 5% % 45% 24% 4% 2% 5% NMF 21% 31.4% 24.5% 24.8% 24.7% 11.3% 12.% 8.9% 8.6% 9.6% 7.9% 3.6% 2.1% 14.2% 16.5% BoG TBC Republic VTB ProCredit Bank Cartu Other Banks Incremental market share in 27 YE 26 YE 27 Peer Group s market shares in Deposits, YE % +41% -1% +58% +61% +11% +9% Deposit growth in 26 3.% 25.% 35% 21% NMF 1% 13% 1% 2% 26.5% 24.5% 24.8% Incremental market share in 26 2.% 19.% 18.4% 15.% 1.% 12.% 9.2% 9.6% 1.6% 11.3% 11.3% 14.2% 5.% 4.9% 3.6% YE 25.% Bank of Georgia TBC Bank UGB ProCredit Bank Republic Cartu Other Banks YE 26 Notes: (1) All data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia (2) Change in peer group total assets calculations based on GEL values Page 52

53 The Georgian Financial Services Sector Overview Cont d GEL million 8, 7, 6, 5, 4, 3, 2, 1, GEL million Banking Sector Assets & ROA 3.9% 3.9% 1,116 1, % 1, % 2,548 Banking Sector Equity & ROE Tough regulatory regime with pronounced safety bias suppresses sector ROE CAR and prudential Liquidity requirements much higher than BIS 3.% % 2.2% 4,228 1,242 7,28 2.5% 1.9% 2, Banking Sector Assets (LHS) Banking Sector ROA (RHS) 13.8% 15.% 7.9% % % BoG Assets (LHS) BoG ROA (RHS) 15.9% Mandatory reserves 13% on FX and on GEL liabilities % 371 1, % Banking Sector Equity (LHS) Banking Sector ROE (RHS) BoG Equity (LHS) BoG ROE (RHS) 9.6% 56 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% All other segments of the financial services sector small and dominated by banks, very open to foreign ownership Insurance GPW of GEL 119 mln (.7% of GDP) in 27 YOY growth rate of 7% Health insurance growing rapidly No mandatory insurance growth drivers No salary schemes Bank-owned insurance companies account for 72% of GPW Top three insurance companies account for 71%+ of GPW Aldagi BCI, wholly-owned by BoG, has market share of approximately 35% Leasing Small, non-bank funding constrained Two bank-owned companies dominate the market Georgian Leasing Company, wholly-owned by BoG, has market share of approximately 25% Broker-Dealers 27 equities trading volume US$19mln Negligible local-currency fixed income issuance volumes Institutional investors increasingly active in the market, drive the volume Galt & Taggart Securities, wholly-owned by BoG, accounted for 63% of the equities trading volume during 27 Page 53

54 Georgia Kazakhstan Czech Republic Romania Turkey Hungary Bulgaria Poland Russia Ukraine Market Potential And High Degree Of Concentration The highest degree of market concentration in CEE benefits large, entrenched domestic players Market Shares of Top 5 & Top 3 Banks by Assets (26) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 8% 8% 64% 65% 63% 58% 61% 55% 58% 57% 51% 51% 48% 41% 4% 41% 34% 36% 34% 24% Top 5 (%) Top 3 (%) Note: data for Georgia as at 3 June 27 Sources: National Bank of Georgia, CA IB Banking Assets to GDP (%, 27E) Gross Loans to GDP (%, 27E) Israel South Africa Chile Kazakhstan Czech Republic Hungary Ukraine Turkey Poland Russia Brazil Georgia Colombia Mexico Azerbaijan Argentina Armenia % 2% 4% 6% 8% 1% 12% Note: data for South Africa, Chile, Brazil, Argentina, Colombia and Mexico is as of YE 26 Source: National Bank of Georgia, National Bank of Ukraine, data from Deutsche Bank Deposits to GDP (%, 27E) Israel Hungary South Africa Czech Republic Kazakhstan Chile Ukraine Turkey Poland Brazil Russia Argentina Georgia Colombia Mexico Azerbaijan Armenia % 2% 4% 6% 8% 1% 12% 14% 16% 18% Israel South Africa Chile Ukraine Kazakhstan Hungary Russia Poland Brazil Turkey Czech Republic Colombia Georgia Mexico Azerbaijan Armenia Argentina % 2% 4% 6% 8% 1% 12% 14% Note: data for South Africa, Chile, Turkey, Brazil, Argentina, Colombia and Mexico is as of YE 26 Source: National Bank of Georgia, National Bank of Ukraine, Deutsche Bank Note: data for South Africa, Chile, Brazil, Argentina, Colombia and Mexico is as of YE 26 Source: National Bank of Georgia, National Bank of Ukraine, Deutsche Bank Page 54

55 Hungary Russia Ukraine Kazakhstan Georgia Georgia Euro area Romania Poland Bulgaria Turkey Czech Republic Georgia Kazakhstan Ukraine Romania Bulgaria Czech Republic Turkey Hungary Poland Euro area Turkey Ukraine Hungary Bulgaria Russia Poland Romania Kazakhstan Georgia Georgia Kazakhstan Czech Republic Romania Turkey Bulgaria Hungary Poland Russia Ukraine Georgian Banking Sector vs. Peer Countries Market Shares of Top 5 & Top 3 Banks by Loans (26) Debit Cards Per Thousands Of People (26) 9% 8% 7% 6% 5% 4% 3% 2% 1% % 83% 66% 74% 64% 64% 55% 58% 57% 49% 52% 52% 48% 47% 39% 43% 41% 33% 37% 41% 29% Top 5 (%) Top 3 (%) Note: data for Georgia as at 3 June 27 Sources: National Bank of Georgia, CA IB Loans/Deposits (26) Source: CA IB Banking Sector Equity As % Of Balance Sheet (26) 16% 14% 12% 1% 8% 6% 4% 2% % 146% 143% 135% 127% 123% 116% 94% 87% 83% 71% 7% 25.% 2.% 15.% 1.% 5.%.% 21.2% 13.5% 12.% 11.8% 1.4% 1.2% 1.1% 8.7% 7.5% 5.6% Source: CA IB Source: CA IB Page 55

56 The Georgian Banking Sector In The Regional Context Banking Assets Per Capita YE 27E (US$) Gross Loans Per Capita YE 27E (US$) Deposits Per Capita YE 27E (US$) Israel 4,673 Israel 26,327 Israel 33,124 Czech Republic 19,953 Czech Republic 13,59 Czech Republic 14,967 Hungary 18,647 Hungary 8,765 Hungary 6,576 Poland 9,715 Kazakhstan 4,632 Poland 4,631 Kazakhstan Russia 6,287 5,467 Poland Russia Turkey 4,185 3,368 2,789 Turkey Russia Kazakhstan 3,626 3,57 2,94 Ukraine 2,518 Ukraine 1,512 Ukraine 1,143 Azerbaijan 98 Azerbaijan 663 Armenia 655 Georgia 975 Georgia 621 Georgia 475 Armenia 846 Armenia 466 Azerbaijan 214-1, 2, 3, 4, 5, - 7, 14, 21, 28, - 7, 14, 21, 28, 35, Source: Galt & Taggart Securities Page 56