bank of georgia q3 2009 & ytd presentation 10bgeo.com/uploads/presentations/1151.pdfjsc bank of...

January 2010

GROWTH AT THE RIGHT PRICELSE: BGEO / GSE:GEB

JSC Bank of Georgia Q3 and YTD 2009 results overview

January 2010

Introduction to Bank of Georgia

Investment highlightsUndisputed leader of Georgian financial services industry with market-leading retail and corporate banking franchiseStrongly positioned to benefit from US$4.5 bln international assistance package pledged to Georgia by international donors in the aftermath of Russia-Georgia conflict in August 2008Disciplined capital management, low leverage, conservative liquidity position, no exposure to sub-primeSophisticated management team with Western banking & finance backgroundTransparency and good governance, over 89% institutionally owned. Supervisory Board includes two large institutional shareholders and two independent directors

The leading universal bank in Georgia

Leading corporate bank with approximately 81,000 legal entities and over 150,000 current accountsLeading card-processing, leasing, insurance, wealth management and asset management services providerThe only Georgian entity with credit ratings from all three global rating agencies

S&P: ‘B/B’ – at the sovereign ceilingFitch Ratings: ‘B/B’Moody’s: ‘B3/NP (FC)’ & ‘Ba3/NP (LC)’

Listed on the London Stock Exchange (GDRs) and Georgian Stock ExchangeMarket Cap (LSE) US$ 225 mln as of 6 November 2009Approximately 95% free float

Issue of the first ever Eurobonds in GeorgiaBloomberg: BKGEO; 5 year, 9%, US$200 mlnB/Ba2/B (composite B+)

No.1 by assets (33.6%),(1) loans (31.1%),(1) client deposits (29.3%)(1) and equity (40.4%)(1)Leading retail banking, with top brand, best distribution network and broadest range of services of any bank in Georgia

416394380ATMs

151140140Branches

639,000+590,000+569,000+Cards Outstanding

866,000+880,000+895,000+Retail Accounts

200820092009

December June September

January 2010

JSC Bank of Georgia Q3 2009 & 9 months 2009 results overview

January 2010

Q3 2009 & YTD 2009 P&L results highlights

11.6%18.2%14.3%17.8%20.4%Tier I Capital Adequacy Ratio (NBG)37.1%15.5%15.2%18.4%21.2%Total Capital Adequacy Ratio (NBG)

Q3 2008Millions unless otherwise noted Q3 2009 Q2 2009 Growth Growth 1

Bank of Georgia (Consolidated, IFRS Based) GEL US$ GEL US$ Q-O-Q GEL US$ Y-O-Y(Unaudited) (Unaudited) (Unaudited)

Net Interest Income 48.9 29.2 49.5 29.8 -1.1% 58.9 41.9 -16.9%Net Non-Interest Income 30.4 18.1 31.1 18.8 -2.4% 27.1 19.3 12.3%Total Operating Income (Revenue)2 79.3 47.3 80.6 48.6 -1.6% 85.9 61.1 -7.7%Recurring Operating Costs 45.0 26.8 46.3 27.9 -2.9% 49.6 35.3 -9.4%Normalized Net Operating Income3 34.3 20.5 34.3 20.7 0.3% 36.3 25.8 -5.4%Net Non-Recurring Income (Costs) (1.9) (1.1) (0.3) (0.2) NMF (2.6) (1.9) NMFProfit Before Provisions 32.4 19.3 34.0 20.5 -4.5% 33.7 24.0 -3.7%Net Provision Expense 30.0 17.9 40.7 24.5 -26.3% 103.2 73.4 -70.9%Net Income/ (Loss) 2.6 1.6 (4.3) (2.6) NMF (59.0) (42.0) NMFTier I Capital Adequacy Ratio (BIS) 25.4% 23.9% 6.0% 24.7% 2.7%Total Capital Adequacy Ratio (BIS) 34.6% 34.2% 1.3% 25.3% 37.0%

11.6%18.2%20.4%Tier I Capital Adequacy Ratio (NBG)37.1%15.5%21.2%Total Capital Adequacy Ratio (NBG)

Millions, unless otherwise noted 9 months 2009 9 months 2008 Growth 1

Bank of Georgia (Consolidated, IFRS Based) GEL US$ GEL US$ Y-O-Y(Unaudited) (Unaudited)

Net Interest Income 150.8 89.9 164.5 117.0 -8.3%Net Non-Interest Income 90.8 54.1 88.5 63.0 2.6%Total Operating Income (Revenue)2 241.6 144.1 252.9 180.0 -4.5%Recurring Operating Costs 135.9 81.1 143.0 101.8 -4.9%Normalized Net Operating Income3 105.7 63.0 110.0 78.3 -3.9%Net Non-Recurring Income (Costs) (2.4) (1.4) 9.3 6.6 -126.2%Profit Before Provisions 103.2 61.6 119.2 84.9 -13.4%Net Provision Expense 102.8 61.3 117.8 83.9 -12.8%Net Income/ (Loss) 3.4 2.0 1.3 0.9 161.2%Tier I Capital Adequacy Ratio (BIS) 25.4% 24.7% 2.7%Total Capital Adequacy Ratio (BIS) 34.6% 25.3% 37.0%

1 Compared to the same period in 2008; growth calculations based on GEL values.2 Revenue includes Net Interest Income and Net Non-Interest Income.3 Normalized for Net Non-Recurring Costs.

January 2010

September 2009 Balance Sheet results highlights

13.6422.7713.6922.70 13.69 22.96 Book Value Per Share, GEL & US$

426.3711.8428.2 709.9 428.4 718.5 Shareholders’ Equity

1,482.02,474.91,325.7 2,197.9 1,348.5 2,261.6 Total Liabilities

696.31,162.8610.0 1,011.4 547.7 918.6 Borrowed Funds

710.11,185.9643.2 1,066.4 731.0 1,225.9 Total Deposits

1,908.23,186.81,753.9 2,907.8 1,777.0 2,980.2 Total Assets

1,144.71,911.61,055.3 1,749.6 989.4 1,659.3 Net Loans

(Unaudited)(Unaudited)(Unaudited)

US$GELUS$GELUS$GELBank of Georgia (Consolidated, IFRS)

Q1 2009Q2 2009Q3 2009Millions, unless otherwise noted

0.8%1.1%Book Value Per Share,

0.9%1.2%Shareholders’ Equity

-8.6%2.9%Total Liabilities

-21.0%-9.2%Borrowed Funds

3.4%15.0%Total Deposits

-6.5%2.5%Total Assets

-13.2%-5.2%Net Loans

Q3/Q1Q3/Q2

ChangeChange

January 2010

Composition of revenue in Q3 2009 & 9 Months 2009

Composition of Revenue, 9 Months 2009

Revenue by segments, Q3 2009Composition of Revenue, Q3 2009

Revenue by segments, 9 Months 2009

Net interest income 61.7% of total revenue

GEL 48.9 mln (-1.1% q-o-q)

Net income from documentary operations 2.9% of total revenue.

GEL 2.3 mln(+30.6% q-o-q)

Net foreign currency related income 8.2% of

total revenue.GEL 6.5 mln(-8.4% q-o-q)

Net Fee and Commision Income13.3% of total

revenue.GEL 10.5 mln(-9.3% q-o-q)

Net Other Non-Interest Income 14.0% of total

revenue.GEL 11.1 mln(+3.5% q-o-q)

BoG Standalone

77.6% of Total Revenue

GEL61.5 mln(-1.3% q-o-q)

Ukraine 6.6% of Revenue

GEL 5.3mln(-5.9% q-o-q)

Belarus 2.6% of Revenue

GEL 2.1mln(+22.6% q-o-q)

Aldagi BCI 8.0% of Revenue

GEL6.3mln(+1.9% q-o-q)

Other 5.2% of Revenue

GEL 4.1 mln(-13.9% q-o-q)

Net interest income 62.4% of total revenue

GEL 150.8 mln (-8.3% y-o-y)

Net income from documentary operations 2.6% of total revenue .

GEL 6.3 mln(+26.4% y-o-y)

Net foreign currency related income 9.2% of

total revenue.GEL 22.3 mln(-32.5% y-o-y)

Net Fee and Commision Income13.8% of total

revenue.GEL 33.2 mln(-8.2% y-o-y)

Net Other Non-Interest Income 12.0% of total

revenue.GEL 28.9 mln

(+103.7% y-o-y)

BoG Standalone 78.8% of Revenue

GEL 190.4 mln(-8.9% y-o-y)

Ukraine 6.7% of Revenue

GEL 16.3 mln(-25.8% y-o-y)

Belarus 2.6% of Revenue

GEL 6.2 mln(+199.1% y-o-y)

Aldagi BCI 6.6% of Revenue

GEL 15.9mln(+145.1% y-o-y)

Other 8.5% of Revenue

GEL 12.7 mln(-4.8% y-o-y)

Consolidated

Total Revenue: GEL 79.3 million in Q3 2009 and GEL 241.6 million in 9 Months 2009

January 2010

Analysis of revenue

Net fee & commission income & Income from documentary operations

Net foreign currency related incomeRevenue growth

Other non-interest income

26.0 30.9 33.542.8

49.8 55.8 58.9 56.4 52.4 49.5 48.9

15.0

21.3 22.7

25.3

31.330.3 27.1 30.2

29.3 31.1 30.4

0

10

20

30

40

50

60

70

80

90

100

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Net Interest Income Net Non-Interest Income

1.4 2.1-0.1

1.6 1.7 2.5 3.2 3.05.1 4.91.4

1.0

1.3 1.60.4 0.3

1.9

2.20.6 0.2

0.2

3.02.4

-0.4 -0.4 -1.1-3.4

0.0 -0.5

3.3 1.9

2.63.3

4.7

3.4

5.8

3.6

3.7 4.6

2.1

1.00.5

1.3

0.1

0.3

0.2

1.8

0.10.1

0.3

-0.1

1.0

-6

-4

-2

0

2

4

6

8

10

12

14

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Net Insurance Income Brokerage Income Asset Management Income Realized Net Investment Gains Other

9.4 8.87.1 6.5

4.3

6.1 6.2

10.1

13.2

10.4

14.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Consolidated

5.9 5.6 6.9 7.610.2 10.2 10.9

6.1

11.1 11.6 10.50.7 1.3

1.8 1.9

1.4 1.9 1.7

1.4

2.3 1.8 2.3

02468

10121416

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Net Fee & Commision Income Net Income From Documentary Operations

January 2010

Analysis of recurring operating costs

Recurring operating cost structure, 9 months 2009

Recurring operating cost structure by segments, Q3 2009

Recurring operating cost structure, Q3 2009

Recurring operating cost structure by segments,9 months 2009

Pe rsonnel cotsts 49.6% of total re curring costs

GEL 22.3 mln(-3.8% q-o-q)Se l ling, Ge neral &

Administrative C osts 23.4% of total recurring

costsGEL 10.5 mln(+5.5 q-o-q)

De pre ciation &amortization 14.0% of

total re curring costsGEL 6.3 mln

(-4.0% q-o-q )

Procurme nt & O pe rations Support C osts 6.6% ovf total

recurring costsGEL 3.0 mln

(-24.0% q-o-q)

O the r O pe rating C osts 6.3% of total recurring

costsGEL 2.9 mln

(+5.9% q-o-q)

Other Operating Costs 6.2% of total


(+137.8% y-o-y)

Procurment & Operations Support Costs 7.2% ovf total


(-0.9% y-o-y )Depreciation

&amortization 13.3% of total recurring

costsGEL 18.1 mln

(+27.7% y-o-y )Selling, General &

Administrative Costs 23.7% of total

recurring costsGEL 32.2 mln(-5.4% y-o-y )

Personnel cotsts 49.7% of total

recurring costsGEL 67.5 mln(-17.0% y-o-y)

BoG S tandalone65.1% of Total Recurring Costs

GEL 88.6 mln(-5.7% y-o-y)

BG Bank10.4% of Total Recurring Costs

GEL 14.2 mln(-32.5% y-o-y)

BNB3.2% of Total Recurring CostsGEL 4.4 mln(+235.7% y-o-y)

Aldagi BCI7.7% of Total Recurring CostsGEL 10.5 mln(+58.0% y-o-y)

Other 13.4% of Total Recurring Costs GEL 18.3 mln (-9.2% y-o-y)

BoG Standalone66.9% of Total Recurring

CostsGEL 30.1 mln(+1.3% q-o-q)

BG Bank8.7% of Total Recurring

CostsGEL 3.9 mln

(-14.3% q-o-q)

BNB3.2% of Total Recurring CostsGEL 1.5 mln(-0.5% q-o-q)

Aldagi BCI8.2% of Total Recurring CostsGEL 3.7 mln(-7.1% q-o-q)

Other 12.9% of Total Recurring Costs GEL 5.8 mln (-12.2% q-o-q)

Consolidated

Total recurring operating costs: GEL 45.0 million in Q3 2009 (-3% q-o-q; -9% y-o-y) and GEL 135.9 mln in 9 months 2009 (-5% y-o-y)

January 2010

Analysis of recurring operating costs cont’d

Cost/Income ratio

Personnel costsEmployees

Normalized net operating income, Profit before provisions

821

824

778

789

786

757

707

617

2,692

3,056

3,619

3,853

2,741

2,692

2,660

2,663

4,459

4,926

5,909

6,165

4,979

4,989

4,914

4,798

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

BG Bank BoG Standalone Group Consolidated

53.4%49.9%

55.5%

50.0%

60.7%

42.2%50.5%

116.9%

76.0%

35.7%

91.5%

74.7%

62.8%

80.4%

66.6%

42.2%

44.4%52.9%

60.8%

90.0%

53.0%57.8% 59.1%

50.1% 46.8% 49.6%

56.6%

45.1% 41.0%

50.8%

109.2%

68.0%

100.1%

59.1% 55.6%64.5%

61.5%

84.6%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009Cost/Income Ratio, ConsolidatedCost Income Ratio, Bank of Georgia StandaloneCost/Income Ratio, BG BankCost/Income Ratio, BNB

17.8

25.727.3

23.1 22.0 23.2 22.3

28.4

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Consolidated

34.336.8

32.437.138.736.337.136.6

34.3

8.7

33.7

40.545.1

34.0

0.05.0

10.015.020.025.030.035.040.045.050.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Normalised Net Opearting IncomeProfit Before Provisions

January 2010

NIM & loan yields

CB loan yield (annualized)(Adjusted for provisions)

RB & WM loan yield (annualized)(Adjusted for provisions)

Net Interest Margin (annualized)

Blended loan yield (annualized)*(Adjusted for provisions)

9.1% 10.3%9.6%

17.2%

8.1%

8.9%

9.8%10.1%

9.3% 9.0% 9.1%

6.5%7.1% 7.7%

8.9%

6.2%5.6%

9.6%

7.5%8.6% 9.0%

9.8%9.9%

10.0%

9.3%8.4%

10.5%11.7% 13.0%

9.5%

9.3%

10.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Net Interest Margin, Group Consolidated Net Interest Margin, BG Bank

Net Interest Margin, BoG Standalone Net Interest Margin, BNB

13.5%14.4% 14.5% 14.0% 14.4% 15.0% 15.6% 15.2% 15.9%

14.8% 15.2%

5.0%

9.0%

13.0%

17.0%

21.0%

25.0%

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

24.8% 24.7% 24.3%21.6% 22.2% 21.8% 20.6% 20.4% 20.1%

23.2% 22.3%

10.0%

16.0%

22.0%

28.0%

34.0%

40.0%

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

21.2% 21.0% 20.6% 20.6% 20.9% 20.4% 19.6% 19.1% 19.3%20.4%20.7%

10.0%

16.0%

22.0%

28.0%

34.0%

40.0%

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Consolidated

* Based on consolidated data, including Corporate Center where all loan recoveries are allocated

January 2010

Composition of assets as at 30 September 2009Consolidated

472.1420.2379.4482.4

299.9284.2301.8291.2

1,659.31,749.62,080.61930.6

383.0311.5

99.6278.6 165.6142.4

397.6171.5

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q 3 2009Q2 2009YE 2008Q3 2008

Cash & Equivalents

Loans & Advances To CreditInstitutions

Net Loans

Property & Equipment

Other Assets

GEL mln

5.4% of total assets




15.4 % of total assets




9.8 % of total assets







2,9802,908

3,259

3,154






GEL million 30-Sep-08 YE 2008 30-Jun-09 30-Sep-09Available-For-Sale & Trading Securities 50.6 33.7 28.4 30.0Treasuries And Equivalents 18.1 8.3 - 36.6Other Fixed Income Instruments 16.5 14.6 59.1 67.1Insurance Related Assets 46.6 42.0 47.4 45.6Investments In Other Business Entities & Investment Property 104.2 64.0 80.9 75.4Intangible Assets Owned & Goodwill 144.0 152.5 147.2 147.9Tax Assets, Current And Deferred 0.9 12.8 8.3 12.9Prepayments And Other Assets 101.5 51.5 48.9 56.6Other Assets 482.4 379.4 420.2 472.1

Note: Net loans include Net finance lease receivables

January 2010

Composition of gross loan book as at 30 September 2009Consolidated

CB, 821 CB, 796 CB, 790 CB, 760

RB & WM, 897 RB & WM, 867

BG Bank, 255

BG Bank, 265 BG Bank, 257

BG Bank, 194

BG Bank, 199

BG Bank, 190 BG Bank, 186

BNB, 35

BNB, 36

BNB, 30

BNB, 27 BNB, 26

CB, 857 CB, 958 CB, 881

RB & WM, 974 RB & WM, 1050 RB & WM, 976 RB & WM, 965 RB & WM, 790

0

500

1,000

1,500

2,000

2,500

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

12% of gross loans

47% of gross loans

39% of gross loans

1 3% of gross loans

46% of gross loans

42% of gross loans

14% of gross loans

4 3% of gross loans

44% of grossloans

2% of gross loans

2% of gross loans

9% of gross loans

47% of gross loans

42% of gross loans

10% of gross loans

48% of gross loans

44% of gross loans

1% of gross loans

42% of gross loans

47% of gross loans

10% of gross loans

1% of gross loans

41% of gross loans

47% of gross loans

10% of gross loans

1% of gross loans

Georgia: RB & WM, CB

Ukraine: BG Bank

Belarus: BNB

Gross loan book Q3 2009: GEL 1,833.1 million

January 2010

Securities portfolio as at 30 September 2009Breakdown of securities investmentsBreakdown of securities portfolio,

30 September 2009

Consolidated

Equities, 79.5%

Local debt, 20.5%

Total securities portfolio: GEL 30 million

GEL ‘000s Debt Equity TotalGTS - 1,627 1,627 LC - 17,532 17,532 BG Bank (Ukraine) 6,146 - 6,146 BNB (Belarus) - - -Other - 4,730 4,730 Total 6,146 23,889 30,036

January 2010

Liabilities breakdown as at 30 September 2009Consolidated

43.441.179.0122.9

1182.51025.3

1,193.11202.0

918.61011.4

1,137.8947.8

117.1120.1

130.2142.2

718.5709.9

718.8739.3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q3 09Q2 09YE 2008Q3 08

GEL mln

Total equity

Other Liabilites

Borrowed Funds

Client Deposits

Deposits And Loans From Banks

22% of total liabilities + equity















2,9802,908

3,2593,154






Q3 08 YE 2008 Q2 09 Q3 09Issued Fixed Income Securities 4.7 - 0.2 0.7Insurance Related Liabilities 57.7 55.4 59.7 52.2Tax Liabilities, Current And Deferred 26.7 24.4 19.4 22.8Accruals And Other Liabilities 53.1 50.4 40.8 41.4Other liabilities 142.2 130.2 120.1 117.1

Total liabilities 30 September 2009: GEL 2,262 million

January 2010

Client deposits breakdownConsolidated

CB , 603 CB , 606CB , 497

CB , 579

BG Bank, 216

BG Bank, 180

BG Bank, 121

BG Bank, 115

BG Bank, 117

BNB , 16

CB , 652 CB , 681 CB , 575

RB & WM, 458 RB & WM, 534 RB & WM, 429 RB & WM, 432RB & WM, 381 RB & WM, 397

RB & WM, 469

BG Bank, 171

BG Bank, 127

BNB , 27 BNB , 31BNB , 25

BNB , 18

0

200

400

600

800

1,000

1,200

1,400

1,600

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

CB RB & WM BG Bank BNB

14% of client deposits















1,3261,395

1,2021,193

1,133





1,025

1,183




+15%





Client deposits Q3 2009: GEL 1,183 million

Note: RB & WM client deposits include deposits at BG Capital

Georgia: RB & WM, CB

Ukraine: BG Bank

Belarus: BNB

January 2010

Capital adequacy & wholesale funding

January 2010

Capital adequacy

Risk-weighted assets BIS vs. NBG

NBG capital adequacy ratios, BoG standaloneBIS capital adequacy ratios, BoG consolidated

Net loans/deposits & loans/(deposits+equity), BoG consolidated

25.2% 25.0% 23.9% 25.4%22.2%22.5%24.7%

34.6%34.2%31.7%27.3%25.3%25.8%25.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Tier I Cap ital Adequacy Ratio Total Capital Adequacy Ratio

2,7682,559 2,549

3,458 3,3023,041

1,031

2,593 2,7342,516

2,941

1,724

3,100

3,605

3,1322,720

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q1 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

BIS NBG

161.2% 164.1%

135.4%

85.3%

132.6% 135.7% 145.7%163.6%

85.8% 89.5% 93.5% 104.5% 100.7% 98.5%

0.0%

40.0%

80.0%

120.0%

160.0%

200.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Net Loans/Total Deposits Net Loans/(Total Deposits+Equity)

18.3%15.8%

18.2%16.6% 16.4%

17.8%20.4%

16.3% 15.1% 15.5% 13.5%17.4% 18.4%

21.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

January 2010

International borrowings

International borrowings repayment schedule

International borrowings - fixed vs. floating rates, 30 September 2009

Selected international loans

International borrowings by currencies, 30 September 2009

Note: Depicts final maturity dates Excluding credit lines as part of documentary business

35,059 74,000

483,448

114,44014,9080.5%

1.3%

17.6%

2.7%4.2%

-

100,000

200,000

300,000

400,000

500,000

600,000

2009 2010 2011 2012 20130.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

US$, 99.7%

Euro, 0.3%

Fixed interest rate, 28.1%

Floating interest rate, 71.9%

Key Lenders Principle Amount

Outstanding as at 30 September 2009

Maturity

Syndicated Loan arranged by Citi and ADB, 3rd Tranche US$ 16.7 million 2010Eurobonds US$ 200.0 million 2012Senior Term Loan from FMO US$ 10.3 million 2014Senior Term Loan from World Business Capital US$ 6.9 million 2016Subordinated Loan from Thames River Capital (Call in 2011) US$ 5.0 million 2016Subordinated Loan from HBK Investments (Call in 2012) US$ 15.0 million 2017Subordinated Loan from Merrill Lynch (Call in 2012) US$ 35.0 million 2017Senior Term Loan from World Business Capital (GLC) US$ 4.9 million 2017Subordinated loan from FMO and DEG (Call in 2013) US$ 30.0 million 2018Senior Loan from OPIC US$ 29.0 million 2018Subordinated Loan from OPIC US$ 10.0 million 2018Senior Term Loan from IFC US$ 50.0 million 2013Senior Term Loan from EBRD US$ 50.0 million 2014Subordinated Loan from IFC US$ 24.0 million 2019Subordinated Loan from EBRD US$ 24.0 million 2019Convertible Loan from IFC US$ 26.0 million 2019Convertible Loan from EBRD US$ 26.0 million 2019

Other, USD denominated US$ 4.8 million NMF Other, EUR denominated EUR 1.0 million NMF

Total US$ 569.1 million

January 2010

Business overview

January 2010

Group structure

Page 20

BoG Group

Rep

ortin

g L

ines

* Formerly Galt & Taggart SecuritiesNote: Following the sale of GTAM, its asset management arm, BoG owns approximately 65% of Liberty Consumer, which in turn owns approximately 52% of SBRE. Both Liberty Consumer and SBRE are fully consolidated in BoG financials

Securities Insurance

Aldagi BCIBG Capital *Bank of Georgia BGB BNB

January 2010

BoG standalone results overview

January 2010

BoG standalone performance

Net income

Recurring operating cost structure, Q3 2009Revenue performance

Cost/Income Ratio

Standalone

45.3 50.1 52.2 51.1 50.4 45.5 44.5

21.321.0 19.2 18.9 16.3

16.8 17.0

0.0

20.0

40.0

60.0

80.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Net Interest Income Net Non-Interest Income

66.671.1 71.4 69.9 66.7 62.3 61.5

25.4 28.4

-58.0

28.8

11.3

0.9

10.8

-70.0-60.0

-50.0

-40.0-30.0

-20.0-10.0

0.010.0

20.0

30.040.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

60.7%

45.1%

41.0%

50.0% 50.8% 50.5%

42.2%

42.7%

44.7%

47.3%43.1% 41.4%

47.7% 48.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009Cost/income, Bank of Georgia standalone

Normalized Cost/income, Bank of Georgia standalone*

Personne l costs48.9% of recurring

operating costsGEL 14.7 mln(-0.9% q-o-q)

Sell ing, gene ral & admini strative costs21.5% of re curring operating costsGEL 6.5 mln(+8.2% q-o-q)

Depre ciation & am ortization17.3% of re curring operating costsGEL 5.2mln(-0.3% q-o-q)

Procurem ent & operations support costs8.4% of recurring ope rating costsGEL 2.5 mln(-2.0% q-o-q)

O ther ope rating costs3.9% of recurring ope rating costsGEL 1.2 mln(+8.4% q-o-q )

January 2010

Composition of assets as at 30 September 2009Standalone

473.1429.1391.8427.1

239.8224.2232.1226.7

1,527.91,602.01,885.0

1,663.6

265.7163.0

249.2

113.0

246.1

229.4

286.0 267.9

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Q3 09Q2 09YE 2008Q3 08

GEL mln

Cash & Equivalents

Loans & Advances To CreditInstitutions

Net Loans


Other Assets

10% of total assets

6% of total assets

60% of total assets

8% of total assets

16% of total assets

2,716

2,987

11% of total assets

4% of total assets

61% of total assets

8% of total assets

16% of total assets

2,753

8% of total assets

8% of total assets

63% of total assets

8% of total assets

13% of total assets

2,686

16% of total assets

9% of total assets

56% of total assets

9% of total assets

10% of total assets

GEL million Q3 08 YE 2008 Q2 09 Q3 09

Treasuries And Equivalents 18.1 8.3 - 36.6

Other Fixed Income Instruments 16.5 14.6 57.3 65.6

Investments In Other Business Entities, Net 315.2 295.3 314.5 304.4

Intangible Assets Owned, Net 4.0 13.4 7.3 6.5

Goodwill 22.5 22.7 22.8 23.2

Tax Assets, Current And Deferred - 6.6 - -

Prepayments And Other Assets 50.8 30.8 27.2 36.8

Other assets 427.1 391.7 429.1 473.1

January 2010

Analysis of the loan bookStandalone

* Other loans include car, POS and legacy retail loans

754.6

57.8

809.1

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q3 2009

GEL m ln

CB

RB

WM

Credit cards and overdrafts,

17%

Micro loans, 11%

Mortgage loans, 41%

Consumer and other*, 31%

FMCG, 15%

Trade, 36%

Energy, 9%

Construction & Real Estate, 17%

Industry & State, 10%

Other, 11%

Pharmaceuticals and Healthcare,

2%

January 2010

Analysis of the loan book

Loans by maturity, 30 September 2009

Loan concentrationLoans by currency, 30 September 2009

Loan book collateralization

Standalone

22.6% 22.6% 22.4%

77.4% 77.4% 77.6%

0%10%20%30%40%50%60%70%80%90%

100%

RB & WM CB Total

GEL Foreign Currency

4% 3%6%

18%

69%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Less than 1month

1 to 3 months 3 to 6 months 6 to 12 months Over 1 year

11.3%

9.7%

16.5% 16.3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Q3 2008 Q3 2009

Top 10 Borrowers Top 20 Borrowers

87.0% 86.8%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Q3 2008 Q3 2009

January 2010

Provisioning policy

Reserve for loan losses to gross loans

NPL coverage ratioNPLs & write-offs, 30 September 2009

Impairment seasoning, Q3 2009

3.72% 3.30%

7.02%

3.74%

0.39% 2.29%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

CB RB & WM Total

NPLs as % of Gross Loans Write-offs as % of Gross Loans

9.5%

2.1% 2.1%

6.3%

5.0%

6.6%

8.1%

1.9%2.0%

6.8%4.9%

5.5%6.7%

7.5%

2.0%

16.9%

1.7%1.5%

19.8%

2.0%

6.6%8.3%

6.4%1.7%

22.8%

-1.0%

5.6%6.6%

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Reserve for loan losses to gross loans, BoG consolidatedReserve for loan losses to gross loans, BoG standaloneCost of risk , BoG consolidated, annualisedCost of risk , BoG standalone, annualised

208.4%

554.4%

96.7%117.4%152.6%

524.0%

117.6%166.8%106.5%

104.2%129.3%169.1%

138.3%

124.2%

0%

100%

200%

300%

400%

500%

600%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

BoG standalone BoG consolidated

2.1% 2.2% 2.2% 2.7%2.1% 2.3% 2.0%

0.0%

4.0%

1.8%1.3%

0.2% 0.0%

1.1%1.2%

0.9%

2.5%

0.4%

432.6491.3

632.3

548.3604.0

179.8 200.9239.1

292.4327.6

300.9

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0GEL mln

Write-Offs as % of Loans Issued (LHS) NPLs as % of Loans Issued (LHS) Loans Issued (RHS)

Standalone

January 2010

Provisioning policy cont’d – BoG standalone

RB & WM loan loss reserve breakdown by loan type, 30 September 2009

NPLs, 30 September 2009Loan loss reserve, 30 September 2009

CB loan loss reserve breakdown by loan type, 30 September 2009

16.5 14.5 22.2 29.849.8 57.7

67.9 67.9

11.4 16.310.8

83.6

36.4 43.1

45.238.2

2.0% 1.9% 2.0%

6.8%

4.9%5.5%

7.5%6.7%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

RB & WM CB Loan loss reserve as % of gross loans

Mortgage loans, 18.6%

GEL (12.6 mln)

Consumer and other, 17.5%

GEL (11.9 mln)Credit cards and

overdrafts, 58.2%

GEL (39.5 mln)

Micro loans, 5.7%

GEL (3.9 mln)

Trade, 38.5%GEL (16.6 mln)

Energy, 6.0%GEL (2.6 mln)

Fast Moving Consumer

Goods, 14.9%GEL (6.4 mln)

Construction & Real Estate

28.9%GEL (12.5 mln)

Industry & State 3.9%

GEL (1.7 mln)

Pharmaceuticals & Healthcare,

0.3%GEL (0.2 mln)

Other, 7.5%GEL (3.2 mln)

8.7 8.1 9.7 12.0 22.746.3

67.454.5

16.6 10.922.4 11.3

41.6

41.1

51.361.4

1.7%1.2%

1.7%1.3%

3.2%

4.7%

6.9% 7.0%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

RB &WM CB % of Gross loans

Standalone

January 2010

BoG standalone liabilitiesLeverage ratio, BoG standalone

Liquidity ratio, BoG standalone

Standalone

728.0

41.1

914.3

1,057.5

11.6

0

500

1,000

1,500

2,000

2,500

3,000

Q3 2009

GEL mln

Deposits And Loans From Banks

Client Deposits

Borrowed Funds

Other Liabilities

Total Shareholders Equity

26% of Total Liabilities +Equity

2% of Total Liabilities+Equity

38% of Total Liabilities + Equity



2,7533.9

2.9 3.1 3.13.3 3.1

2.8 2.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date

34.2% 33.8%

27.2% 27.3%

37.6%

43.5%

37.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

Liquidity ratio is calculated by dividing liquid assets by Total liabilities

January 2010

Analysis of deposits

CB, RB & WM deposits, BoG standalone

Client deposits by currency, 30 September 2009Client deposit breakdown, 30 September 2009

Deposits by maturity, 30 September 2009

Standalone

Individual Current

Accounts, 10.0%

Corporate Time & Demand

Deposits, 18.4%

Individual Time & Demand

Deposits, 33.8%

Corporate Current

Accounts, 37.9%

363.6 403.4 326.0 319.0 280.4 285.0 331.2

76.5 70.4 96.7 93.3 105.2131.4

652.7681.5

576.2626.7

605.2 519.0

594.9

81.6

0

200

400

600

800

1,000

1,200

1,400

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

RB Client Deposits WM Client Deposits CB Client Deposits

+11%

+4%

-19%

-15%

+13%

+2%

-3%

-12% -2%

-14% 14%

16%

+27%+11%-3%+37%-14%+7%

21.1%

50.3%

3.6%

35.3%

78.9%

49.7%

96.4%

64.7%

0%10%20%30%40%50%60%70%80%90%

100%

RB CB WM TotalGEL Foreign Currency

60%

0%5% 7%

18%

10%

0%

10%

20%

30%

40%

50%

60%

70%

On Demand Less than 1month

1 to 3 months 3 to 6 months 6 to 12 months Over 1 year

January 2010

Deposit yieldsStandalone

9.1%8.2% 8.1% 8.0%

10.4%

12.5%13.7% 14.1%

5.8% 5.7%6.6% 7.0%

7.5% 7.7%8.4%

5.6%5.4% 5.1%4.5%4.9%5.0%

4.0%3.8%

6.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

RB Deposit Yields, BoG Standalone CB Deposit Yields, BoG Standalone Blended Deposit Yields, BoG Standalone

January 2010

Risk managementCurrency risk management, Q3 2009Liquidity risk management, Q3 2009

Standalone

62.6

321.1

495.0

363.4

200.9

651.1

-

374.3

570.4

296.4

88.2

708.1

56.8(5.7)

47.4122.8

55.7

(56.9)-100

0

100

200

300

400

500

600

700

800

Up To 1 Month 1-3 Month 3 Month - 1 Year 1-5 Years Over 5 Years Past Due

GEL mln

Assets Liabilities Accumulated Liquidity Gap

5.8%

0.8%

3.5%4.1%

1.7%

6.2%

3.8%

16.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Q4 2007 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09

Open Foreign Currency Position (as % of Regulatory Capital)

January 2010

Corporate banking

Corporate client deposits, 30 September 2009

Corporate loan portfolio, 30 September 2009Overview

Corporate gross loan portfolio growth

Standalone

Integrated client coverage in the following key sectors

Construction & Real EstateEnergyFast Moving Consumer GoodsFinancial InstitutionsForeign Organizations & Diplomatic MissionsPharmaceuticals & HealthcareRetail & Wholesale TradeState & IndustryTelecommunications, Media & TechnologyTransport & LogisticsSME

No.1 corporate bank in GeorgiaCirca 35% market share based on customer deposits(1)

Circa 27% market share based on corporate loans(2)

Integrated client coverage in key sectors81,000+ clients of which 8,938 served by dedicated relationshipbankersCirca 45% market share in trade finance and documentary operations(2)

Second largest leasing company in Georgia(2) – Georgian Leasing Company (GLC)Increased the number of corporate clients using the Bank’s payroll services from approximately 1,035 at 31 December 2008 to 1,244 in Q3 2009Approximately 1,912 legal entities opened accounts at the bank in Q3 2009, bringing the total number of current accounts to approximately 150,000

Current Accounts &

Demand Deposit s,

80%GEL (474.6

mln)

T ime Deposits, 20%

GEL (120.4 mln)

Notes: (1) As of September 2009, source: National Bank of Georgia, does not include interbank deposits(2) Management estimates (based on the NBG data)

Total corporate deposits: GEL 595 mln

874821

881

796

919857

795755

0

100

200

300

400

500

600

700

800

900

1,000

YE 2007 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09

GEL mln

-6% +7% -10% +16% -4%-8%-7%%

Pharmaceuticals and Healthcare, 1.8%

Trade, 35.8%

Construction & Real Estate, 17.5%Fast Moving

Consumer Goods, 15.1%

Industry & State, 10.1%

Energy, 9.1%

Other, 10.6%

January 2010

Retail Banking – No. 1 retail bank in Georgia

Leadership in consumer lending

RB loan portfolio, 30 September 2009Retail loans originated

Retail gross loan portfolio growth

Standalone

34.5

64.187.3

114.0 122.1

177.5 183.3

235.6

317.6

140.2

74.955.9

68.8

97.5

266.9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09

GEL mln

(1) Monthly average

Micro loans, 11%

GEL (92 mln)

Credit cards and overdrafts , 17%GEL (144 mln)


GEL (271 mln)

Mortgage loans, 41%

GEL (359 mln)

Total retail loans: GEL 809 mln Note: does not include Ukraine & Belarus

YE 2007 YE 2008 Q3 2009

Number of Consumer Loans Outstanding* 50,120 67,252 53,027• Volume of Consumer Loans Outstanding (GEL mln)* 119.6 178.9 122.1• Credit Cards Outstanding 108,616 164,938 105,040

656

755

931995

923844 809

922

0

200

400

600

800

1000

1200

YE 2007 Q1 08 Q2 08 Q3 09 Q4 08 Q1 09 Q2 09 Q3 09

GEL mln

+15% +22% +1% +7% -7% -4%-9%

January 2010

Loan origination

Micro loans (RB & WM)

Consumer loans (RB & WM)Mortgage loans (RB & WM)

Other RB & WM loans

Standalone

386.8

18.5 11.5

366.1

23.1

358.8

-50.0

100.0150.0200.0250.0300.0350.0400.0450.0

Volume of MortgageLoans Originated

Volume of MortgageLoans Outstanding

GEL mln

Q4 2008 Q2 2009 Q3 2009

-5%

-38% +101%

-2%

15.2

148.3

16.8

100.4 92.3

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Volume of Micro Loans Originated Volume of Micro Loans Outstanding

GEL mln

Q4 2008 Q2 2009 Q3 2009

+11%

-32%

+53%

-8%

25.7

Note: does not include Ukraine & Belarus

Note: does not include Ukraine & Belarus

334.4

272.5

17.03.6

284.7

3.7-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Volume of Other RB & WMLoans Originated*

Volume of Other RB & WMLoans Outstanding

GEL mln

Q4 2008 Q2/Q1 Q3 2009

-79%

-15 %

+3%

-52%

-4%

33.5

180.5

45.8

143.6

60.3

143.3

-20.040.060.080.0

100.0120.0140.0160.0180.0200.0

Volume of ConsumerLoans Originated

Volume of ConsumerLoans Outstanding

GEL mln

Q4 2008 Q2 2009 Q3 2009

+32%

+37%

-20%

-5%

January 2010

Deposit origination

Number of RB & WM time deposits issued

Volume of deposits outstanding (CB)Volume of deposits outstanding (RB & WM)

Volume of RB & WM time deposits issued

Standalone

169.9 185.3120.9 99.2 95.2 92.4 105.4

39.2 36.9

18.6 18.0 16.3 20.7 34.8

231.1 262.9

257.0 302.1 262.2 275.6322.4

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Volume of RB & WM time deposits outstanding

Volume of RB & WM demand deposits outstanding

Volume of RB & WM current accounts outstanding

410.4 363.3 349.9 372.2 382.3 324.1 400.4

53.639.2 26.8

90.2 69.379.2

74.2

188.7 279.0199.5

186.6 153.6117.3

120.3

0.0100.0200.0300.0400.0

500.0600.0700.0800.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL m ln

Volume of CB time deposits outstanding

Volume of CB demand deposits outstanding

Volume of CB current accounts outstanding

10,912

17,136 17,85519,403

12,051

15,312

18,562

-

5,000

10,000

15,000

20,000

25,000

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

121.7 125.9 119.1100.2 94.8 99.0 112.8

8.016.9 16.2

25.8 20.034.9

40.6

0.020.040.060.080.0

100.0120.0140.0160.0180.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Volume of WM time deposits issued

Volume of RB time deposits issued

January 2010

RB cross-selling

Cards penetration rate*

RB loans penetration rate*Product/client ratio

Current accounts & deposits penetration rate*

Standalone

2.2 2.42.7

3.0 3.2 3.3 3.53.1 3.0 2.8 2.8

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-090.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Number of clients (LHS) Number of products (LHS) Product/Client Ratio (RHS)

1.1% 1.1%

9.2%

2.2% 2.1% 1.9% 1.5% 0.8%

35.8%39.3%

44.3% 46.4% 47.9% 47.6%

1.1%1.2%1.1%1.0%0.9%

11.8%

17.0%24.2%

29.1%30.9%31.7%

1.1%

2.0%

34.1%

0%

10%

20%

30%

40%

50%

60%

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

M ortgage Loan Penetration Rate Consumer Loan Penetration RateM icro Loan Penetration rate Other Loans Penetration Rate

95.6% 98.7% 104.0%

75.4% 73.2%67.6% 66.1%

23.6% 26.9% 31.4%24.8% 20.6% 17.5% 15.0%

0%

20%

40%

60%

80%

100%

120%


Debit Cards Penetration Rate Credit Cards Penetration Rate

111.2% 111.3% 112.8%

5.6% 6.7% 7.3% 8.9% 7.1% 7.6% 9.2%

105.0%114.3% 111.1% 110.8%

20.0% 19.8% 19.5% 19.0% 16.4% 15.7%14.7%

0%

20%

40%

60%

80%

100%

120%

140%


Demand & Term Deposits Penetration RateUniversal Current Accounts Penetration RateStandard Current Accounts Penetration Rate* Calculated as percentage of Bank of Georgia clients for the period

January 2010

Card processing

Transaction authorizations by Georgian Card

Number of cards serviced by Georgian CardClient banks

Georgian Card’s revenue & assets

Standalone

• 56% ownership of Georgian Card

• Migration to TietoEnatorTransmaster in 2005

• Enhanced functionality and new product support

90 121 203 286 337 414 437 460649 721 776 774

658 636 582 539

49 6672

84119

131 138247

227256

278 304

256 261227 230

0

200

400

600

800

1,000

1,200

Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 May-07

Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

'000s

Bank of Georgia Other Banks

186275

370456

139

575706

876978

1,054 1,078

914

545

769809897

1,1051,776 2,151

2,954 2,914

4,2245,027

6,5847,176

8,536 8,613 9,0148,406

7,6607,173

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09

'000s5.5

2.52.6

3.13.3

3.84.0 4.0 4.0

4.2

4.7 4.7

1.41.4

0.5 0.4

1.7

1.01.1

2.2

1.1

1.31.3

1.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09

GEL mln

0.0

0.5

1.0

1.5

2.0

2.5

Total Assets (LHS) Revenue (RHS)

January 2010

Analysis of mortgage portfolio

Typical mortgage terms

Volume of mortgage loans outstandingNumber of mortgage loans issued & outstanding

Volume of mortgage loans issued

Standalone

231 259 423

7,4767,967 7,994 7,916 7,809

455 678 858 1,129 1,4261,915

850 691

2,3651,166

3,4094,230

5,340

6,881

0

2,000

4,000

6,000

8,000

10,000

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Number of mortgage loans issued Number of mortgage loans outs tanding

Rate: 16% - 20%Tenor: Normally 10 yearsCurrency: US$LTV: Normally 70% - 80%

33.8 37.6 43.3

69.581.3

96.1

32.5

18.510.1 11.5

23.1

0

20

40

60

80

100

120

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

GEL mln

101.6128.7

157.7203.5

245.5

312.0 325.9

386.8 383.1 366.1 358.8

050

100150200250300350400450

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

GEL mln

January 2010

Management (WM) performance review

WM loans, 30 September 2009

WM products penetrationWM clients and client assets

WM Deposits

Standalone

0.06.7

48.2 48.3

63.4 66.4 64.866.8

73.3

55.460.9 59.0

69.3

87.8

0

1364

460

873943

1081

11871291 1304

1382

1384 1387 1341

1358

0.0

20.0

40.0

60.0

80.0

2004 2005 2006 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q32009

US$ mln

0

200

400

600

800

1,000

1,200

1,400

1,600

US$ mln Private Banking Client Assets (LHS)US$ mln Private Banking Clients (RHS)

Other, 5.2%

Mortgage Loans, 53.0%Consumer

Loans, 36.7%

Car Loans, 5.1%

Notes: (1) Converted at exchange rates of GEL/US$, 1.793(2005),1.714(2006), 1.70 (Q1 2007), 1.67 (Q2 2007), 1.66 (Q3 2007), 1.59 (Q4 2007), 1.48 (Q1 2008), 1.42 (Q2 2008) , 1.41 (Q3 2008), 1.67 (Q4 2008), 1.67 (Q1 2009) and 1.67 (Q2 2009) Q3 2009 (1.68)

(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

52.2%

101.0%93.7%

21.2% 25.5% 27.8%40.1%

71.4%54.0%55.3%65.8%66.8%66.9% 93.4%

111.2%114.2%

130.2%135.0%

32.8%31.8%32.2%

62.5%65.2%

69.6%70.2%76.4%

78.2%80.7%

23.7%21.9%20.6%

10.5%15.4%14.8%15.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

OneCard Penetration Rate All Other Cards Penetration RateDemand & Term Deposits Penetration Rate Internet Banking Penetration RateSMS Banking Penetration Rate

155.2

49.5 31.5 35.7 35.1 36.9 47.9

22.6

32.139.0

61.0 58.2 66.883.6

0.020.040.060.080.0

100.0120.0140.0160.0180.0200.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

Current Accounts & Demand Deposits Time Deposits

January 2010

BG Bank (Ukraine) standalone results overview

January 2010

BG Bank performance

Net income

Recurring operating cost structure, Q3 2009Revenue growth

Cost/Income Ratio

4.8 5.56.4

3.82.9

4.3 4.0

1.7 0.8

2.61.2 1.3

2.7 5.5

6.2%

9.6%10.3%

7.2%

7.5%

8.3%

5.6%

0.01.02.03.04.05.06.07.0

8.09.0

10.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Net interest income Net non-interest income Net interest margin, annualised

9.2

6.36.5

9.3

5.5 5.65.3

(7.3)

(10.8)

(5.5)

(0.7)

0.7 0.7

(10.7)(12.0)

(10.0)

(8.0)

(6.0)

(4.0)

(2.0)

0.0

2.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL m ln

4.6 3.9

11.0 12.9

-2.04.06.08.0

10.012.014.016.018.0

Q2 2009 Q3 2009

GEL mln

Recurring Operating Costs Provision expense

109.2%116.9%

100.1%91.5%

74.7%76.0%

35.7%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

January 2010

BG Bank assets as at 30 September 2009Asset growth

Gross loan book growth

Low leverage (at 3.9x)

No international loan

16.211.415.9

14.114.0

14.4

136.0151.3

179.8

6.6

7.0

11.0

28.921.7

27.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

Q3 2009Q2 2009YE 2008

Cash & Equivalents

Loans & Advances To Credit Institutions

Loan Portfolio


Other Assets

11% of Total Assets

4% of Total Assets

73% of Total Assets

6% o f T o ta l A s s ets

14% of Total Assets

3% of Total Assets

74% of Total Assets

7% of Total Assets

6% of Total Assets

248

GEL mln

6% of Total Assets

202205

GEL million YE 2008 30-Jun-09 30-Sep-09Available-For-Sale Securities 12.0 5.9 6.1 Intangible Assets Owned, Net 0.5 0.6 0.8 Tax Assets, Current And Deferred 0.2 2.8 8.2 Prepayments And Other Assets 3.2 2.1 1.1 Other assets 15.9 11.4 16.2

357 360 350 337249 245 205 202

1,131 1,1491,217 1,213

1,150 1,129965

946

0.30.3 0.3

0.3

0.2 0.20.2

0.2

0

200

400

600

800

1000

1200

1400

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

Assets (GEL mln) Assets (UAH mln) GEL/UAH exchange rate, e-o-p

230 255 265 257201 199 190 186

729

871 876 889

917930

925862

0.3

0.2 0.20.2

0.2

0.30.30.3

0100200300400500600700800900

1000

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.0

0.1

0.1

0.2

0.2

0.3

0.3

0.4

Loans (GEL mln) Loans (UAH mln) GEL/UAH exchange rate, e-o-p

January 2010

BG Bank loan portfolio

Retail loan portfolio breakdown, 30 September 2009

Corporate loan portfolio breakdown, 30 September 2009Loan portfolio breakdown, 30 September 2009

Gross loans: GEL 186 million

Corporate Loans, 81%

Retail Loans, 19%

Other loans, 0.1%

Credit cards, 3.4%

Micro loans, 5.6%

Mortgage loans, 15.8%

Consumer and other, 75.0%

Trade, 42%

Industry & State 18%

Construction & Real Estate, 28%

SME, 9%

Other, 3%

Gross corporate loans: GEL 152 million

January 2010

BG Bank analysis of the loan book

Loans by maturity, 30 September 2009

Top ten borrower concentrationLoans by currency, 30 September 2009

Loan book collateralization

UAH, 56.5%

Foreign currency, 43.5%

30.0% 31.3% 32.5%30.8% 31.4%

33.5%36.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

89.9%

91.5%90.9%

92.1%93.0%

95.8%96.6%

86.0%

88.0%

90.0%

92.0%

94.0%

96.0%

98.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

19.04%12.48%

18.06%

50.42%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

0 to 3 months 3 to 6 months 6 months to 1year

Over 1 year

January 2010

BG Bank provisioning policy

NPL coverage ratio

Loan loss reserveNPLs

Reserve for loan losses to gross loans

2.6 2.9 2.7 2.68.7

5.6 6.34.0

7.2

22.117.6

0.1 0.7 1.0

12.8%

1.7%1.3% 1.5%

3.3%

8.0%

14.6%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

0.0%2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%16.0%

CB RB NPL ratio

298.4%319.4%

210.0%

166.4%

174.7%

198.8%

140.9%

0%

50%

100%

150%

200%

250%

300%

350%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

7.3 5.7 6.312.6 12.2 12.8 12.9

8.5

19.4

26.2

37.3

0.60.2 0.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

RB CB

26.9%

2.8% 2.2% 2.5%

10.5%

15.9%

20.5%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

January 2010

BG Bank standalone liabilities breakdownLeverage ratio

Q4 2008 Q2 2009 Q3 2009Issued Fixed Income Securities - 0.2 0.7Tax Liabilities, Current And Deferred 0.1 - -Accruals And Other Liabilities 4.9 2.5 1.5Other liabilities 5.0 2.7 2.2

41.339.350.4

117.1114.8

127.4

2.2

5.0 41.448.6

65.6

2.7

0

50

100

150

200

250

300

Q3 2009Q2 2009Q4 2008

GEL mln

Total Shareholders Equity

Other Liabilites

Borrowed Funds

Client Deposits

Deposits And Loans From Banks 21% of Total Liabilities + Equity


2% of Total Liabilities+ Equity










4.3

2.3 2.1

2.9 3.03.2

3.9

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

January 2010

BG Bank client deposits

CB & RB client deposits

Deposit yieldsClient deposits

Deposits by maturity, 30 September 2009

270216 180 171 127 121 115 117

559856 730

592 614588 558 528

0.320.30 0.30

0.28

0.22 0.22 0.220.21

0100200300400500600700800900

Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

GEL mln UAH mln GEL/UAH exchange rate, e-o-p

32.7%

16.6%

30.9%

11.8%

8.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

On demand Less than 1 month 1 to 6 months 6 months to 1 year Over 1 year

12.0%

12.8%

14.0%

15.8%

11.8%

12.2%11.4%

10%

11%

12%

13%

14%

15%

16%

17%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

85.460.5 61.5

45.7 47.0 37.7 43.2

130.6

119.7 109.1

81.7 74.177.1 73.9

0.0

50.0

100.0

150.0

200.0

250.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL m ln

CB Client Deposits RB Client Deposits

-29%

-8%

-9%

+2%

-25%

-26%

-9%

+3%

+4%

-20%

-4%

+15%

January 2010

BG Bank analysis of depositsClient deposits by currency, 30 September 2009Client deposits breakdown, 30 September 2009

Time&Demand depos its , 69%

Current accounts , 31%

UAH, 51%Foreign

currency, 49%

Client deposits: GEL 117 mln

January 2010

BG Bank capital adequacy

Risk-weighted assets BIS vs. NBU

NBU capital adequacy ratiosBIS capital adequacy ratios

Net loans/deposits & Loans/(deposits+equity)

19.0%

30.6%32.8%

27.9%30.5%

24.9%

32.6%31.3%

28.4%

33.3%

25.8%

30.8%29.1%

16.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009


282.1244.1 230.4

176.4

361.6 355.0327.7

305.2

352.9 340.6 327.0

255.4

190.4178.2

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

NBU BIS

12.4% 12.9% 14.0%

21.0%22.8% 23.8% 22.8%

13.7% 14.5% 15.6%21.0% 22.8% 24.5% 22.8%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009


77.7% 73.7% 74.6%68.1%

85.9%

68.8%75.3%71.5%

98.2%91.9%

99.7%

116.5%113.7%

89.0%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009Net Loans/(Total Deposits+Equity) Net Loans/Total Deposits

January 2010

Belarusky Narodny Bank (Belarus)

January 2010

BNB Q3 2009 P&L

214.3%196 118 616 367 Net Income / (Loss)

170.5%95 57 257 153 Income Tax Expense / (Benefit)

200.0%291 175 873 521 Pre-Tax Income / (Loss)

517.9%(28)(17)(173)(103)Net Provision Expense

166.2%263 158 700 417 Profit / (Loss) Before Provisions

477.8%9 5 52 31 Net Non-Recurring Income / (Costs)

155.1%254 153 648 386 Normalized Net Operating Income / (Loss)

-0.5%1,458 879 1,451 865 Total Recurring Operating Costs

19.9%161 97 193 115 Other Operating Expenses

-42.0%138 83 80 48 Depreciation And Amortization

6.0%235 142 249 148 Procurement & Operations Support Expenses

22.4%156 94 191 114 Selling, General & Administrative Expenses

-3.9%768 463 738 440 Personnel Costs

22.6%1,712 1,032 2,099 1,252 Total Operating Income (Revenue)

-13.4%762 459 660 394 Net Non-Interest Income

-117.9%134 81 (24)(14)Net Other Non-Interest Income

-2.8%284 171 276 165 Net Foreign Currency Related Income

-1 ---Net Income From Documentary Operations

-----Expense On Documentary Operations

-1 ---Income From Documentary Operations

19.0%343 207 408 243 Net Fees & Commission Income

10.5%57 34 63 38 Fees & Commission Expense

17.8%400 241 471 281 Fees & Commission Income

51.5%950 573 1,439 858 Net Interest Income

12.6%478 288 538 321 Interest Expense

38.4%1,428 861 1,977 1,179 Interest Income

Q-O-QGELUS$GELUS$GEL '000s

GrowthQ3 2009 Q2 2009Standalone, IFRS Based

January 2010

BNB loan portfolio as at 30 September 2009

RB Loan Portfolio Breakdown, 30 September 2009

Loan loss reserve, 30 September 2009Loan Portfolio Breakdown, 30 September 2009

CB Loan Portfolio Breakdown, 30 September 2009

CB, 91%

RB, 9%

Gross loans: GEL 26.5 mln

Other loans, 1%


Mortgage loans, 2%

RB loans: GEL 2.4 mln* Other loans include car, POS and legacy retail loans

CB: GEL 0.85 mln

RB: GEL 0.16 mln

Loan loss reserve: GEL 1.1 mln

Other, 1%Industry & trade, 1%

Trade, 64%

Construction & real estate, 34%

CB loans: GEL 24.0 mln

January 2010

BNB client deposits as at 30 September 2009RB client deposits breakdown, 30 September 2009Client deposits breakdown, 30 September 2009

RB client deposits breakdown, 30 September 2009

3,831

14,063

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Jan-00

GEL mln

RB deposits outstanding CB deposits outstanding

RB time deposits outstanding,

92.3%

RB current accounts

outstanding, 7.5%

RB demand deposits

outstanding, 0.2%

CB time deposits oustanding,

51%

CB current accounts

outstanding, 49%

January 2010

BG Capital

January 2010

BG Capital

Proprietary book

Net income/(loss)Revenue

Headcount

1.2 1.5 1.8

(2.8)(1.9)(1.0)

1.6

(4.0)(3.0)(2.0)(1.0)0.01.02.03.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

19,276

36,968

3,912 2,516 1,364 2,790 1627

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL '000s

0.10.8 0.5

(4.6)

(2.3)(2.6)(1.9)

(6.0)

(5.0)

(4.0)

(3.0)

(2.0)

(1.0)

0.0

1.0

2.0

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009

GEL mln

20 2236

17 15 1630

45 43 22

20 22 2514

0

10

20

30

40

50

60

70

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009BG Capital Georgia BG Capital Ukraine

65 6558

3741 44

37

January 2010

Insurance

January 2010

Aldagi BCI, Insurance

Aldagi BCI market share by GPW (Q2 2009)

Georgian insurance market product breakdown (Q2 2009)

Aldagi BCI GPW, net premiums earned & net income/(loss)

15,60417,048

12,838 12,933

1,630 1,647(500)

1,5003,5005,5007,5009,500

11,50013,50015,50017,50019,500

Q2 2009 Q3 2009

GEL 000s

Gross Premiums Written Net Premiums Earned Net Income (Loss)

GPIH, 15%

People's Insurance, 9%

Other , 21.9%Aldagi BCI, 20%

Irao, 13%

Imedi L, 21%

Aviation, 0.32%

Property, 7.19%

Health, 72.56%

Personal accident, 1.24%

Credit liability , 0.01%M arine vessels, 0.12%

Financial risks, 0.25%

Life, 2.56%

Cargo, 0.44%

Civil liability , 1.95%

Source: State Insurance Supervision Service of Georgia

January 2010

ContactNick EnukidzeChairman of the Supervisory Board+ 995 32 444 [email protected]

Irakli GilauriChief Executive Officer+995 32 444 [email protected]

Macca EkizashviliHead of Investor Relations+995 32 444 [email protected]

mailto:[email protected]



January 2010

Appendices

January 2010

Bank of Georgia shareholder structure, management & price performance

January 2010

Ownership structure & share price performance

Supervisory board

Ownership structure, June 2009

Management board

Broadly owned by over 100 institutional accounts

Local Shares Held by

Institutional Shareholders

5.9%

Local Shares Held by

Domestic and Foreign Retail Shareholders

4.9%

Management & Employees**

4.0%

GDR Holders* 85.2%

Name Number %GDR Holders* 26,651,805 85.2%Local Shares Held by Institutional Shareholders 1,848,163 5.9%Management & Employees** 1,267,126 4.0%Local Shares Held by Domestic and Foreign Retail Shareholders 1,527,509 4.9%Total Shares Outstanding 31,294,603 100.0%

Adjusted for Galt & Taggart Securities' Proprietary Book (1 ) (5,289) Adjusted Total Shares Outstanding 31,289,314

(1) Treated as treasury shares as per IFRS*through BNY Nominees Limited** includes GDRs held as part of EECP

Irakli Gilauri Chief Executive Officer (CEO)

Sulkhan Gvalia Deputy CEO Chief Risk officer

George Chiladze Deputy CEO Finance

Irakli Burdiladze Deputy CEO Chief Operating Officer

Mikheil Gomarteli Deputy CEO Retail Banking

Avto Namicheishvili Deputy CEO Legal

Archil Gachechiladze Deputy CEO Corporate banking

Nikoloz Shurgaia Deputy CEO International Banking

Nicholas Enukidze Chairman of the Supervisory Board

Allan Hirst Vice Chairman of the Supervisory Board, independent member

Ian Hague Member, Firebird Management LLC

Jyrki Talvitie Member, East Capital

Kaha Kiknavelidze Independent member

David Morrison Independent member

Irakli Gilauri Member, Chief Executive Officer

January 2010

Analyst coverage

Analyst Email

Andrzej Nowaczek [email protected]

Analyst Email

David Nangle [email protected]

Analyst Email

Radena Georgieva [email protected]

Analyst Email

Pedro Fonseca [email protected]





January 2010

Georgian banking sector – key trends 2006-2009

January 2010

Georgian banking sector – key trends 2007/2009GEL/US$

Period End YE 2006= 1.71

YE 2007=1.59

YE 2008=1.67

Q1 2009=1.67

Q2 2009=1.66

Q3 2009= 1.68

GrowthMarket Share Market Share Market Share

(YE 2007) (YE 2008) (Q3 2009)

GEL mln YE 2007 YE 2008 Q3 '09As % of GDP*

2007 Y-O-Y

2008 Y-O-Y

Q3 '09, YTD

Top 5 Banks

Bank of Georgia

Top 5 Banks

Bank of Georgia

Top 5 Banks

Bank of Georgia

Total Assets 7,208 8,866 7,877 36.69% 70.90% 23.00% -11.2% 80.00% 35.20% 79.26% 32.89% 78.50% 33.60%Gross Loans 4,589 5,993 5,210 24.27% 71.50% 30.59% -13.1% 81.70% 32.70% 81.78% 32.87% 81.83% 31.13%Deposits 3,511 3,845 3,644 16.97% 50.90% 9.51% -5.2% 81.40% 31.40% 75.00% 28.76% 78.23% 28.12%Equity 1,471 1,517 1,511 7.04% 65.50% 3.14% -0.4% 73.30% 33.80% 75.69% 40.03% 81.18% 40.36%Net Income/(Loss) 109 (216) (82.0) NMF 17.50% NMF NMF NMF 41.90% NMF NMF NMF 12.02%

19 banks as at 30 September 2009Minimum capital requirement GEL 12 mln and growingSince 1 January 2007 local presence established by HSBC, Halyk, Privat, JSC Kor Bank

No state ownership since 1995Very open to foreign ownership

All leading banks have meaningful foreign capital participationSignificant IT/infrastructure and marketing spend drives increasing retail banking penetrationIncreasing adoption of the universal banking business model, following the lead of Bank of Georgia

The economy and consumers significantly underlent (all-in consumer debt per capita US$163 at 31 December 2008)

January 2010

Peer group’s market share in total assetsGEL/US$

Period End YE 2006 = 1.71

YE 2007=1.59

YE 2008=1.67

Q1 2009= 1.67

Q2 2009=1.66

Q3 2009=1.68

27.9%

22.5%

8.3%10.2%

7.3%

11.1%12.6%

35.4%

23.7%

6.9% 7.7%5.5%

6.7%

14.3%

32.9%

22.0%

9.6%

7.7% 7.0%

4.8%

15.9%

33.6%

22.0%

9.5% 8.7%

6.0%4.7%

15.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

BoG TBC Bank Republic ProCredit Bank Cartu VTB Other Banks

YE 2006

YE 2007

YE 2008

Sep-09

Note: all data 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

http://www.nbg.gov.ge

January 2010

Peer group’s market share in gross loansGEL/US$


YE 2007=1.59

YE 2008=1.67

Q1 2009= 1.67

Q2 2009=1.66

Q3 2009=1.68

9.5%

14.0%

8.8%

11.8%

7.3%

22.2%

26.5%

11.3%

7.5%7.6%8.3%

7.0%

25.6%

32.7%

12.2%

6.0%6.4%

8.7%10.1%

23.7%

32.9%

12.2%

6.0%

8.0%

9.8%10.6%

22.3%

31.1%

0%

5%

10%

15%

20%

25%

30%

35%

BoG TBC Republic ProCredit Bank Cartu VTB Other Banks

YE 2006

YE 2007

YE 2008Sep-09



January 2010

Peer group’s market share in depositsGEL/US$


YE 2007=1.59

YE 2008=1.67

Q1 2009= 1.67

Q2 2009=1.66

Q3 2009=1.68

24.5% 24.8%

11.3%9.6%

12.0%

3.6%

14.2%

31.4%

24.7%

8.9%7.9% 8.6%

2.1%

16.5%

28.8%

22.5%

8.9%8.1%

6.5%

6.8%

18.5%

28.1%

24.9%

10.2%9.4%

5.6%

2.9%

18.9%

0%

5%

10%

15%

20%

25%

30%

35%

BoG TBC Republic ProCredit Bank VTB Cartu Other Banks

YE 2006

YE 2007

YE 2008Sep-09



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