Bank of Georgia Financial Analysis
STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION
Capital adequacy requirements introduced by National Bank of Georgia in December 2017
Transition to Basel III Standards:
Systemic capital surcharge: 2.5% of risk weighted assets to be phased-in during the
following years as per below schedule:
Capital Adequacy Ratios
Systemic Buffer
31-Dec-17
0%
31-Dec-18
1.0%
31-Dec-19
1.5%
31-Dec-20
2.0%
31-Dec-21
2.5%
15%
Currency induced credit risk ("CICR") buffer was introduced instead of additional 75%
weighting of FX denominated loans. 56% of CICR buffer should be held on CET1 level,
75% on Tier 1 level and 100% on total capital
12.4%
12.5%
20%
17.3%
17.5%
16.6%
15.9%
12.2%
11.0%
10%
General Risk Assessment Program ("GRAPE") for individual banks: GRAPE buffer is set
at 2.2%. GRAPE buffer will be reviewed annually and will be phased-in on different
levels of capital according to the below schedule:
5%
31-Dec-17
31-Dec-18
31-Dec-19
31-Dec-20 31-Dec-21
CET 1
Tier 1
0%
15%
30%
45%
56%
0%
20%
40%
60%
75%
Total Capital
0%
100%
100%
100%
100%
Credit Portfolio Concentration buffer, effective from 1 April 2018 and phased in over
the four year period on different levels of capital according to the above schedule
Net Stress Test buffer effective from 1 January 2020
0%
1Q18
2Q18
3Q18
4Q18
■Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio
Risk Weighted Assets
In the view of above, Bank of Georgia became subject to the following minimum capital
requirements:
12,000
11,339
10,719
9,670
9,790
CET 1
Tier 1
Total Capital
31-Dec-17
31-Dec-18
31-Dec-19
Estimate⭑
31-Dec-20
Estimate*
8.1%
9.5%
10.4%
9.9%
11.4%
12.5%
11.1%
13.3%
11.1% 11.8%
13.2% 14.1%
12.4%
15.9%
16.5%
16.7%
16.0% 17.1%
Fully Loaded
range* from
31-Dec-21
9,000
GEL millions
6,000
3,000
* Indicated minimum capital adequacy ratios contain Pillar 1 and Pillar 2 buffer estimates. Range provides our
best minimum and maximum estimates of the variable buffers
Transition to Basel III is not expected to affect the Bank's growth prospects or its ability to
maintain dividend distributions within the existing dividend policy payout range
BANK OF GEORGIA
O
1Q18
2Q18
3Q18
4Q18
21
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