Bank of Georgia Growth and Reform Strategy slide image

Bank of Georgia Growth and Reform Strategy

CORPORATE AND INVESTMENT BANKING HIGHLIGHTS Income Statement Highlights* Market Position** Change Change GEL thousands unless otherwise noted 4Q19 4Q18 3Q19 2019 2018 y-o-y q-o-q Net interest income 65,642 43,696 50.2% 51,827 26.7% 217,874 165,723 Net fee and commission income 11,928 6,939 71.9% 9,826 21.4% 37,018 26,680 Change y-o-y 31.5% 38.7% Market Share by Loans Market Share by Deposits Net foreign currency gain 14,341 23,984 -40.2% 13,510 6.2% 49,355 54,702 -9.8% 33.1% Net other income / (expense) 9,212 (3,451) NMF 3,300 Operating income 101,123 71,168 42.1% 78,463 179.2% 28.9% 13,506 6,699 101.6% 317,753 253,804 25.2% 30.5% 31.0% 31.2% Salaries and other employee benefits (15,495) (14,645) 5.8% (15,304) 1.2% Administrative expenses (8,989) (4,921) 82.7% (5,866) 53.2% (57,975) (22,886) (17,409) (54,792) 5.8% 30.9% 30.3% 31.5% 28.9% 28.8% Depreciation, amortisation and impairment (2,387) (1,122) 112.7% (2,416) -1.2% (8,437) (4,945) 70.6% Other operating expenses (295) (347) -15.0% (241) 22.4% Operating expenses (27,166) (21,035) Operating income before cost of risk 73,957 50,133 29.1% 47.5% (23,827) 14.0% (1,042) (90,340) (78,321) (1,175) -11.3% 15.3% Cost of risk (7,389) (3,408) 116.8% Net operating income before non-recurring items 66,568 46,725 Net non-recurring items (217) (619) 42.5% -64.9% 54,636 1,239 55,875 35.4% 227,413 175,483 29.6% NMF (14,548) (25,888) -43.8% Profit before income tax expense and one-off 66,351 46,106 43.9% (3) 55,872 19.1% NMF 18.8% 212,865 149,595 42.3% costs Income tax expense (5,344) Profit adjusted for one-off costs 61,007 (3,570) 42,536 49.7% (7,444) -28.2% One-off costs (after tax) Profit 61,007 (922) 41,614 43.4% NMF 46.6% 48,428 26.0% 48,428 26.0% (293) 212,572 142,998 (19,819) (10,014) 192,753 132,984 44.9% (4,094) (13,846) -70.4% 188,659 119,138 58.4% (6,597) -95.6% 48.7% 97.9% 2016 2017 2018 2019 2016 2017 2018 2019 Loan Yield Deposit Cost 120% 5% 120% 100% 10.4% 10.7% 10.2% 9.1% 12% 3.9% 4.0% 4.1% 3.3% 100% 4% 9% 80% 80% 63.1% 61.2% 3% 65.9% 60% 74.8% 60% 83.3% 83.1% 82.3% 81.1% 6% 2% 40% 40% 3% 1% 20% 20% 36.9% 38.8% 34.1% 25.2% 16.7% 16.9% 17.7% 18.9% 0% 0% 0% 0% 2016 2017 2018 2019 2016 I Net loans, CIB, FC Net loans, CIB, GEL Currency-blended loan yield, CIB 2017 Client deposits, CIB, FC Client deposits, CIB, GEL Currency-blended cost of client deposits, CIB 2018 2019 BANK OF GEORGIA The full year 2019 income statement adjusted profit excludes GEL 4.1mln one-off employee costs (net-off income tax) related to the former CEO and executive management termination benefits. The amount is comprised of GEL 3.8mln (gross of income tax) excluded from salaries and other employee benefits and GEL 1.1mln (gross of income tax) excluded from non-recurring items. The income statement adjusted profit in 4Q18 excludes GEL 0.9min one-off employee costs (net-off income tax) related to the former CEO termination benefits, which is comprised of GEL 1.1mln (gross of income tax) excluded from non-recurring items. In addition to this, the full year 2018 income statement adjusted profit excludes GEL 12.9mln demerger related expenses (net of income tax) and one-off impact of re-measurement of deferred tax balances ** Market shares by Loans and Deposits to Legal entities 33
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