Bank of Georgia Financial Analysis

GROWING AND WELL-CAPITALISED BANKING SECTOR Summary Prudent regulation and oversight ensuring financial stability Demonstrated strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalization of the banks and no government ownership since 1994 Resilient to different shocks to the economy, room for healthy growth with retail loans estimated at 35% of GDP and total loans at 64% of GDP 25 403005050 Banking sector assets, loans and deposits Source: NBG 25.4% CAGR 39.7 34.6 30.1 26.6 25.2 22.3 20.6 17.3 18.9 16.0 14.4 15 12.7 13.0 10.6 8.9 10.5 10 7.2 8.3 7.7 8.7 1.3 2.5 1.7 4.2 4.6 6.0 5.2 6.3 0.8 0.9 0.7 1.0 1.7 2.7 1.3 2.1 3.2 3.6 4.0 5.5 6.7 7.6 9.7 11.6 14.3 17.0 19.8 23.0 20 Source: National Bank of Georgia, GeoStat Banking Sector loans to GDP, 2017 Armenia 48.8% Czech Rep. 51.6% Bulgaria Russia 51.8% 52.7% Poland 52.7% Bosnia & Herz. 54.1% Croatia 57.7% Georgia 58.9% Slovakia 59.8% Latvia 60.2% Israel 66.0% Turkey 66.5% BANK OF GEORGIA Assets, GEL bn I Loans, GEL bn Deposits, GEL bn Non-performing loans, Latest-2018 Source: IMF, WB, NBG Source: IMF, NBG Czech Rep. 1.9% Georgia Lithuania 2.7% 2.7% Hungary 2.9% Turkey 3.0% Poland Belarus 4.0% 4.1% Romania Latvia Armenia Bulgaria Kazakhstan Bosnia & Herz. Russia Croatia Portugal 5.6% 6.0% 6.3% 8.7% 8.8% 9.4% 10.7% 11.1% 11.7% 50

View entire presentation