Bank of Georgia Financial Analysis

BANK OF GEORGIA GROUP RESULTS HIGHLIGHTS Bank of Georgia Group Consolidated Balance Sheet Banking Business** Discontinued Operations** Chan GEL thousands unless otherwise noted Dec-18 Dec-17 Change y-o-y Sep-18 Change 9-0-9 Dec-18 Dec-17 Change y-o-y Change Change Sep-18 Liquid assets 4,540,032 Cash and cash equivalents 1,215,799 Amounts due from credit institutions 1,305,216 Investment securities 2,019,017 Loans to customers and finance lease receivables 9,397,747 Property and equipment. 344,059 988,436 Assets of disposal group held for sale 1,136,417 Total assets Client deposits and notes Amounts due to credit institutions. Borrowings from DFI 14,798,303 15,168,669 8,133,853 2,994,879 6,712,482 3,155,839 1,302,679 Short-term loans from NBG 1,118,957 4,373,251 3.8% 1,582,435 -23.2% 1,225,947 6.5% 1,564,869 29.0% 7,690,450 22.2% -65.2% NMF -2.4% 21.2% -5.1% 1,624,347 -19.8% 793,528 4,696,808 1,237,867 1,398,061 2,060,880 8,762,413 315,980 -3.3% -1.8% -6.6% -2.0% 7.3% 8.9% 4,540,032 4,346,509 4.5% 1,215,799 1,516,401 -19.8% 1,305,216 1,216,349 7.3% 2,019,017 1,613,759 25.1% 9,397,747 7,741,420 21.4% 344,059 322,925 6.5% ge 9-o-q 4,696,808 -3.3% Dec-18 Dec-17 Sep-18 y-o-y 9-0-9 445,501 NMF 1,237,867 -1.8% 374,301 NMF 1,398,061 -6.6% 2,060,880 -2.0% 8,762,413 7.3% 315,980 8.9% 38,141 NMF 33,059 NMF 661,176 NMF 1,165,182 NMF 14,314,932 7,932,536 3,006,739 1,261,960 Loans and deposits from commercial banks 573,243 737,964 Debt securities issued 1,730,414 1,709,152 Liabilities of disposal group held for sale Total liabilities Total equity Book value per share 13,000,030 1,798,273 516,663 12,436,299 2,732,370 37.59 41.0% -22.3% 1.2% NMF 4.5% -34.2% 65.22 -42.4% 1,016,431 728,348 1,578,532 3.4% 2.5% -0.4% 3.2% 10.1% -21.3% 14,798,303 12,907,678 8,133,853 7,078,058 2,994,879 2,778,338 1,302,679 1,297,749 14.6% 14.9% 7.8% 14,314,932 3.4% 7,932,536 2.5% 3,006,739 -0.4% 2,763,913 NMF 377,501 NMF 0.4% 1,261,960 3.2% 326,598 NMF 1,118,957 793,528 41.0% 1,016,431 10.1% 9.6% 573,243 1,730,414 687,061 -16.6% 1,386,412 24.8% 728,348 -21.3% 1,578,532 50,903 NMF 9.6% 357,442 NMF 619,026 NMF 12,644,984 1,669,948 34.89 2.8% 7.7% 7.7% 13,000,030 11,354,976 1,798,273 1,552,702 14.5% 15.8% 12,644,984 2.8% 1,669,948 7.7% 1,584,245 NMF 1,179,668 NMF Key Ratios* 4Q18 4Q17 3Q18 2018 2017 ROAA*** ROAE*** Net Interest Margin Loan Yield Liquid assets yield Cost of Funds Cost of Client Deposits and Notes 3.2% 3.4% 3.2% 3.2% 3.2% 26.2% 27.8% 26.8% 26.1% 25.2% 6.0% 7.3% 6.4% 6.5% 7.3% 12.8% 14.3% 13.5% 13.5% 14.2% 3.8% 3.4% 3.8% 3.8% 3.4% 5.0% 4.8% 5.0% 5.0% 4.7% 3.4% 3.5% 3.6% 3.5% 3.5% Cost of Amounts Due to Credit Institutions 7.9% 6.5% 7.4% 7.3% 6.4% Cost of Debt Securities Issued 7.8% 7.8% 7.8% 7.8% 7.4% Cost Income 36.9% 38.3% 36.1% 36.7% 37.7% NPLs to Gross Loans to Clients 3.3% 3.8% 3.5% 3.3% 3.8% NPL Coverage Ratio 90.5% 92.7% 91.7% 90.5% 92.7% NPL Coverage Ratio, Adjusted for discounted value of collateral Cost of Credit Risk 129.9% 130.6% 136.9% 129.9% 130.6% 1.1% 2.1% 2.0% 1.6% 2.2% NBG (Basel III) Tier I Capital Adequacy Ratio NBG (Basel III) Total Capital Adequacy Ratio 12.2% 16.6% 12.4% 17.9% 11.0% 15.9% 12.2% 12.4% 16.6% 17.9% * For the definition of Key Ratios, refer to page 70 BANK OF GEORGIA ** Banking Business and Discontinued Operations financials do not include inter-business eliminations. Detailed financials, including inter-business eliminations are provided on pages 58-60 *** 2018 annual results adjusted for GEL 30.3mln demerger related costs, GEL 8.0mln demerger related corporate income tax gain, and GEL 30.3mln one-off impact of re- measurement of deferred tax balances 8

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