Bank of Georgia Financial Analysis

RETAIL BANKING HIGHLIGHTS Income Statement Highlights Market Position* Change Change GEL thousands unless otherwise noted 4Q18 4Q17 3Q18 2018 2017 y-o-y q-o-q Net interest income 136,894 134,517 1.8% 136,040 0.6% Net fee and commission income 32,915 28,511 15.4% 30,651 7.4% Net foreign currency gain 24,047 8,407 NMF 17,381 38.4% 546,872 118,858 56,358 480,955 Change y-o-y 13.7% Market Share by Loans Market Share by Deposits 99,790 19.1% 37.5% 28,937 94.8% Net other income (expense) (5,420) 4,531 NMF 2,022 NMF 1,371 5,029 -72.7% 35.5% Revenue 188,436 175,966 7.1% 186,094 1.3% 723,459 Salaries and other employee benefits (37,053) (35,778) 3.6% (34,830) 6.4% (138,635) (125,668) Administrative expenses (21,620) (22,461) -3.7% (22,619) -4.4% Depreciation and amortisation (9,857) (9,020) Other operating expenses (637) Operating expenses Profit from associate Operating income before cost of risk (69,167) 318 119,587 (1,098) (68,357) 255 107,864 9.3% -42.0% 1.2% (9,556) (592) 3.1% 7.6% 24.7% 10.9% Cost of risk (37,487) (22,867) 63.9% (67,597) 326 118,823 (35,155) 2.3% -2.5% Profit before non-recurring items and income tax 82,100 84,997 -3.4% Net non-recurring items (4,088) (74) NMF Profit before income tax 78,012 84,923 -8.1% Income tax expense Profit (5,785) (7,335) 72,227 77,588 -21.1% -6.9% 83,668 (1,947) 81,721 (5,998) 75,723 0.6% 6.6% -1.9% 110.0% -4.5% -3.6% -4.6% 17.7% 10.3% (84,323) (72,464) 16.4% (39,133) (34,741) 12.6% (2,333) (2,279) 2.4% (264,424) (235,152) 1,339 1,311 460,374 380,870 20.9% (130,714) (110,800) 18.0% 614,711 34.9% 36.9% 34.6% 33.2% 33.0% 32.4% 12.4% 0.0% (35,110) 294,550 (36,292) 258,258 329,660 270,070 22.1% (2,358) NMF 267,712 10.0% (18,046) 101.1% 249,666 3.4% 2015 2016 2017 2018 2015 2016 2017 2018 Loan Yield Deposit Cost 3.9% 120% 17.6% 20% 120% 4% 16.8% 16.1% 3.3% 2.9% 2.9% 15.1% 100% 100% 15% 3% 80% 80% 54.3% 48.8% 50.3% 60.8% 60% 10% 60% 74.1% 75.0% 72.1% 69.7% 2% 40% 40% 1% 5% 20% 45.7% 51.2% 49.7% 20% 39.2% 25.9% 25.0% 27.9% 30.3% 0% 0% 0% 0% 2015 2016 2017 2018 2015 2016 2017 2018 I Net loans, RB, FC I Client deposits, RB, FC Net loans, RB, GEL Client deposits, RB, GEL Currency-blended cost of client deposits, RB Currency-blended loan yield, RB BANK OF GEORGIA * Market shares by Loans and Deposits to Individuals 25

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