Bank of Georgia Financial Analysis

STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION Capital Management Fully-loaded Common Equity Tier 1 (CET1) minimum requirement already achieved ■ CET1 ratio stood at 12.2% compared to 9.5% minimum requirement at 31 December 2018, and already above the estimated fully-loaded CET1 requirement range of 11.1% to 11.8% for 31 December 2021 Tier 1 Capital Adequacy Ratio Evolution 15% 12.4% 13% 1.6% 0.4% 1.1% 11% 9% JSC Bank of Georgia standalone 3.5% 0.5% 0.2% 12.2% 7% Capital Adequacy Robust internal capital generation of c. 350bps per annum Existing additional capital buffers (within c. 2.2% of RWAs) reflecting differences in provisioning between NBG methodology and IFRS 9 Capital Buffer We aim to maintain c.+200bps over minimum regulatory requirements Optimise Capital Structure NBG regulation now enables AT1 issuance in US Dollars. This can add currency diversification to our capital structure and is a natural hedge against balance sheet dollarisation 5% Dec-17 costs Business Demerger Dividend Growth 2018 profit One-off GEL regulatory Devaluation changes Dec-18 BOG Equity vs. Tier 1 Regulatory Capital | 31 Dec 2018 % of RWAs 12.2% GEL millions 1.4% 0.8% 1.1% 130 1,764 1,800 92 162 1,380 1,500 1,200 900 600 300 О NBG Tier 1 Capital Loan provisioning methodology difference IP provisioning methodology difference Other deductions* BOG Equity (IFRS) 3.3% BANK OF GEORGIA * Other deductions Include revaluation reserve, investments in non-financial subsidiaries and intangible assets 22

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