Expected Q4 2009 Financial Performance
Robust Banking Sector
Growth
As % of
GEL mln
YE 2007
Total Assets
7,208
YE 2008
8,866
Q3 '09
GDP*
2007
Y-O-Y
2008
Q3 '09,
Top 5
Y-O-Y
YTD
Banks
Georgia
Banks
Market Share
(YE 2007)
Bank of
Market Share
(YE 2008)
Top 5
Bank of
Market Share
(October 2009)
Top 5
Banks
Bank of
Georgia
Georgia
7,877
36.69%
70.90% 23.00%
-11.2%
80.00%
35.20%
79.26%
32.89% 78.50%
33.63%
Gross Loans
4,589
5,993 5,210
24.27%
Client Deposits**
3,511
3,845 3,644
Equity
1,471
1,517 1,511
16.97%
7.04%
71.50% 30.59%
50.90% 9.51%
65.50% 3.14%
-13.1% 81.70% 32.70% 81.78%
-5.2% 81.40% 31.40% 75.00% 28.76% 82.27%
-0.4% 73.30% 33.80% 75.69% 40.03% 81.18%
32.87% 81.83%
31.60%
29.30%
40.71%
*Q3 2009 banking sector data to 2009F GDP
** Total Deposits except for Q3 2009
Source: National Bank of Georgia
Bank debt to GDP, 2008
Ensuring solvency and stability of the banks
High BIS Capital Adequacy Ratio: Banking Sector Average - 21%, Bank
of Georgia -30%
High level of liquidity requirements from NBG at 20% of Liabilities
Low Leverage in the banking sector: Banking Sector Average -
Bank of Georgia - 3.1x
4.2x,
Financial Supervisory Agency established under the auspices of the
National Bank of Georgia - monitors liquidity /risks of the banks and takes
measures to ensure solvency of the commercial banks
Resilient Banking Sector
Demonstrated strong resilience towards domestic challenges during the
August 2008 conflict as well as towards external shocks of global financial
turmoil
No nationalization of the banks have occurred, no government bail-out
plans have been required, no Government ownership since 1995
No rampant liquidity issues on the market
No exposure to CDOs or other "toxic" assets
Loans to GDP ratio stands at circa 25%
Georgia
Turkey
Russia
Poland
Romania
Kazakhstan
Czech Republic
Hungary
Israel
Belgium
Italy
France
Germany
Portugal
Austria
Great Britain
Sweden
Ireland
Lobko
BANK OF GEORGIA
www.bog.ge/ir
0
50
100
150
200
250
Source: ING, Central Banks
Page 16
January 2010
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