Expected Q4 2009 Financial Performance
Real estate assets mark-down
GEL'000
Historical
Cost
Value Before
Write Down
Write
Down
Value After WD/VBWD
Write Down
VAWD/
HC
(VBWD)
(WD)
(VAWD)
LC investments
24,287
28,265 (13,525)
14,740
-47.8% 60.7%
SBRE investments
24,435
47,356 (15,396)
31,960
-32.5% 130.8%
Other real estate
assets
20,762
20,762 (6,507)
14,255
-31.3% 68.7%
Total
69,484
96,384 (35,428)
60,956
-36.8% 87.7%
Provided that current operation environment continues, the Bank does not expect further write-
downs in respect of either LC or SBRE investments in coming year
We have seen number of secondary real estate transactions picking up and real estate prices
stabilizing
The Bank originally invested a total of GEL 16.9 million in LC and SBRE
Net asset value of LC and SBRE attributable to the Bank after the write-down will amount to
GEL 20.5 million, well above the historical cost of the Bank's investment
After the write downs total regulatory capital ratio of Bank of Georgia is expected to decrease from Q3 2009
level 21.2% to 20.4% as of 1st of January 2010 and Tier I from 20.4% to 17.6%, respectively
Loka
BANK OF GEORGIA
www.bog.ge/ir
Page 28
January 2010
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