Expected Q4 2009 Financial Performance
Labo
Immediate Priorities - Internationally
Belarus (Belarusky Narodny Bank - BNB):
Inject EUR 10.5 mln in order to meet new minimum regulatory capital requirement of EUR 25 mln
from 1st of January 2010
We also see new capital requirement as opportunity to acquire small bank(s), which can not meet new
minimum capital requirement in Belarus to leverage up BNB and gain synergies
We are also in discussion with IFIs as potential equity partners (and lenders), with BoG to maintain
majority stake
Lending to high margin, unattended SME sector, interest rates on SME lending vary between 18% to
22% in US$
Target 1% population of Belarus (c. 100,000) through novel Premier Banking offerings
Ukraine (BG Bank):
Focus on further downscaling retail business and stepping up trade finance, integrating wealth
management business with brokerage.
Number of branches has been decreased from 38 Q1 2008 to 18 branches by Q3 2009 and headcount
reduced from 824 to 617
Leverage on Georgian corporate banking and brokerage to build trade finance business in Ukraine to
capture part of the US$ 1.0 bln trade between Georgian and Ukraine and nearly US$ 4 bln trade
between Belarus and Ukraine
Focus on loan recovery. Loan loss reserves amounts to GEL 50 mln or 27% of gross loan book of BG
Bank
BANK OF GEORGIA
www.bog.ge/ir
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January 2010
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