Expected Q4 2009 Financial Performance
•
.
Strategy from 2004 to 2008
Growth! Growth! Growth! -Universal banking model focusing on market share growth in Georgia
Particular emphasis on high margin retail banking business and number of retail customers driven by novel
product offerings
Investing in consumer driven non-core businesses to benefit from the growth of Georgia's economy
⚫ Expand in CIS banking markets through acquisitions in order to create new "pockets" of growth
What was done
.
Market share in total assets in Georgia grew from 17% to 33% - achieving 721% balance sheet growth over 4
years
Number of retail current accounts grew from c.50,000 to over 895,000 and share of retail portfolio in total loan
book increased from 38% to 53%
• Acquired banks in Ukraine and Belarus
Invested in two most rapidly growing sectors through Liberty Consumer, an investment company focusing on
consumer segment and SB Real Estate – real estate investment company
Shortfalls
Ukraine
⚫ Investing in non-core assets: profit contribution marginal for BoG, not worth of management time and conflict of
interest with the Bank's core banking activity
⚫ Having realized our shortfalls, we have adapted our strategy and further enhanced management team
Lobko
BANK OF GEORGIA.
www.bog.ge/ir
Page 34
January 2010
Page 34View entire presentation