1

2

3

RB GROSS LOAN BOOK

442601

809 783 1,022

573

705

852 843

993

129

122

289 301

282

497

666

904 882

1,055

1,641

2,094

2,854 2,809

3,352

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2013 2014 2015 9M15 9M16

MSME loans

Credit card balances

Consumer loans

Mortgage loans

27.6%

20.1%

36.3%20.9%

19.3%

GEL

mill

ion

s

Nominal growth

Constant currency growth

4

RB GROSS LOAN BOOK BY PRODUCTS

30.5% Mortgage loans

24.1% General consumer loans

SME loans 11.9%

Micro loans 19.6%

Credit cards & overdrafts 8.8%

Pawn loans 1.8%

POS loans 3.3%

Total RB loans: GEL 3,352 million

5

439 560

724 701 823

648

790

1,156 1,105

1,261

1,087

1,350

1,8801,806

2,084

-

500

1,000

1,500

2,000

2,500

2013 2014 2015 9M15 9M16

Time deposts & CDs

Current & savings

accounts

RB DEPOSITS

Nominal growth

Constant currency growth

24.2%

16.4%

39.3%17.3%

15.4%

GEL

mill

ion

s

+17.4%

+14.1%

6

RB NIM

10.3% 9.8% 9.6% 9.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2013 2014 2015 9M16

DEPOSIT COSTSLOAN YIELDS

41.1% 50.5% 54.3% 58.2%

58.9% 49.5% 45.7% 41.8%

19.8%17.4% 17.6% 17.0%

-22.0%

-12.0%

-2.0%

8.0%

18.0%

0.0%

50.0%

100.0%

150.0%

2013 2014 2015 Sep-16

Loans, GEL

Loans, FC

63.6% 67.6% 74.1% 72.9%

36.4% 32.4% 25.9% 27.1%

5.2%3.8% 3.9% 3.4%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

0.0%

50.0%

100.0%

150.0%

2013 2014 2015 Sep-16Deposits, GEL

Deposits, FC

14% REDUCTION IN LOAN YIELDS SINCE 2013 35% REDUCTION IN DEPOSIT COST SINCE 2013

Note: 9M16 NIM is adjusted for excess liquidity. ProForma NIM is a hypothetical Net Interest Margin that would have been achieved, had

liquidity amounts of GEL and FC balances in excess of 35% minimum been used to repay respective funding sources at respective costs and

giving up respective liquid asset yields in the process

7

RB REVENUEG

EL

mill

ion

s

155.5

237.5262.9

41.5

57.0

63.4

15.2

18.6

20.1

212.2

313.1

346.4

-

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

9M14 9M15 9M16

Other operating

income

Net fee & commission

income

Net interest income

18.6%

47.5%

10.6%Nominal growth

Like-for-like growth

8

RB COST to INCOME

43.8% 43.9%

43.0%

40.3%40.5%

38.0%

39.0%

40.0%

41.0%

42.0%

43.0%

44.0%

45.0%

2012 2013 2014 2015 9M16

9

95.1 104.1

141.3

0.0

30.0

60.0

90.0

120.0

150.0

9M14 9M15 9M16

9M14

9M15

9M16

NET PROFITG

EL

mill

ion

s

9.4%

35.8%

10

segmentsEmerging Retail Mass Retail Mass Affluent

2 3MSME

Micro, Small and Medium

Business

41

Clients 446.2 k

GEL 18 mln

GEL 54

3.1

122

1,486.0 k

GEL 75 mln

GEL 61

1.7

144

17.0 k

GEL 17mln

GEL 1,606

7.0

10

123.0 k

GEL 33 mln

GEL 373

1.1

n/a

9m profit

Profit per client

P/C ratio

Branches

+51.6% y-o-y +26.9% y-o-y +91.9% y-o-y +58.9% y-o-y

11

segmentsEmerging Retail Mass Retail Mass Affluent

2 3

Double number of transactions

Product/client ratio growth to 3.0

from 1.7 (in 9M15)

Client growth to 40,000

from 8,507 (in Apr 2015)

StrategicFocus

MSMEMicro, Small and Medium

Business

4

Increasenumber of Clients

1

12

Aggressive client acquisition phase is over

We target growth through increasing product to client ratio

NUMBER OF RETAIL BANKING CLIENTS

733,643 806,473 823,859

888,794

1,054,248

1,245,048

1,451,777

1,999,869 2,072,138

500,000

700,000

900,000

1,100,000

1,300,000

1,500,000

1,700,000

1,900,000

2,100,000

2,300,000

2008 2009 2010 2011 2012 2013 2014 2015 9M16

CAGR 14.3%

OVER 2 MILLION RETAIL CLIENTS

Product to Client 2.0

13

Product

centric approach

Customer

centric approach

….. To….. From

ClientsUniversal bankers Clients

MOSRTGAGES

DEPOSITS

CURRENT ACCOUNTS

CREDIT CARDS

CONSUMER LOANS

Products

MOSRTGAGES

DEPOSITS

CURRENT ACCOUNTS

CREDIT CARDS

CONSUMER LOANS

ProductsProduct specialist

14

446.0K

17.0K

Express

1,609.0K Retail

Express

Number of customers

SOLO

Retail

From … … Aiming TO

SOLO

Number of customers

1,400.0K

40.0K

550.0K

122

10

144

Number of branches Number of branches

175

12

83

107%

142%

144%

150%

183%

245%

335%

510%

0% 100% 200% 300% 400% 500%

Branch #1

Branch #2

Branch #3

Branch #4

Branch #5

Branch #6

Branch #7

Branch #8

15

OUTSTANDING RESULTS of TRANSFORMATION

7,616Baseline

22,785Performance

LIVE LABS NUMBER OF PRODUCTS SOLD

1. New roles based on customer needs to support strong sales focus

2. Migrate transactions to self-service/remote channels

3. Daily performance management tools

4. New motivation system

TRANSFORMING RETAIL SALES

% growth in number of products sold, compared to the base-line

16

TRANSFORMING BRANCHES

17

EXPRESS BRANCH

EXPRESS BUSINESS MODEL

• Focused on transactional banking

• Cheap to launch & operate

• Capex per branch: US$ 50k

• Cost to Income: 35.0%

• Profit per client: GEL 54

18

0.7

3.2

10.9

10.7

70.8

1.2

3.3

13.3

14.7

82.9

1.8

4.1

15.3

21.4

90.3

Sep-16

Sep-15

Sep-14

28%Self service terminals

POS terminals

ATMs

Internet bank

Mobile bank

NUMBER OF TRANSACTIONS (millions)

100%

40%

30%

161%

19

3x more

new clients attracted per banker, compared to same period last year

Solo offers:• Tailor made

banking solutions• New financial

products such as bonds

• Concierge-style environment

• Access to exclusive products and events

• Lifestyle opportunities

OFFER LOUNGES

8.1 8.5

11.9

17.0

142

242

728

791

100

200

300

400

500

600

700

800

5.0

7.0

9.0

11.0

13.0

15.0

17.0

# of Solo clients # of total acquired clients

20

NUMBER OF SOLO CLIENTS: DOUBLED in 1 YEAR

Nu

mb

er

of

clie

nts

SOLO LAUNCH

21

SOLO LOANS & DEPOSITS: DOUBLED IN 1 YEARG

EL

mill

ion

s

357 405

507

702

351

424

570

724

Loan portfolio Accounts and deposits

SOLO LAUNCH

22

SOLO PROFITABILITY: PROFIT DOUBLED IN 1 YEARG

EL

mill

ion

s 8.7

16.8

9M15 9M16

• Total investment: US$ 11.1 million

• Number of Solo lounges: 10, up from 2 a year ago

• Number of clients 16,964

• Profit per client: GEL 1,606

• Cost to Income: 47.5%

• Product to client: 7.0

SOLO BUSINESS MODEL

91.9%

47.5%44.0%Cost to Income

23

Advisory model

Retail

Gold

Retail

Silver

Express

Bronze

SOLO

Key client contact

360° financial

planning light

True personal

advisory

Product-centric

cross-selling

Personal banker

Universal Banker

Teller-sellerExpress

Retail

SOLO

24

25

BOG Properties For Sale