Georgia's Economic Outlook 2020

CORPORATE AND INVESTMENT BANKING HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS* GEL thousands unless otherwise noted 41 1Q20 1Q19 Change y-o-y Change 4Q19 q-o-q Net interest income Net fee and commission income Net foreign currency gain Net other income Operating income Salaries and other employee benefits Administrative expenses Depreciation, amortisation and impairment Other operating expenses Operating expenses 69,341 48,541 42.9% 65,642 5.6% 8,955 8,151 9.9% 11,928 -24.9% 8,534 10,242 -16.7% 14,341 -40.5% 4,681 1,386 NMF 9,212 -49.2% 91,511 68,320 33.9% 101,123 -9.5% (10,561) (12,439) -15.1% (15,495) -31.8% (4,466) (4,027) 10.9% (8,989) -50.3% (2,473) (1,701) 45.4% (2,387) 3.6% (296) (203) 45.8% (295) 0.3% (17,796) (18,370) -3.1% (27,166) -34.5% Operating (loss) / income before cost of risk 73,715 49,950 47.6% 73,957 -0.3% Cost of risk (95,902) (1,824) NMF (7,389) NMF Net operating (loss)/income before non-recurring items (22,187) 48,126 NMF 66,568 NMF Net non-recurring items (1,406) (72) NMF (217) NMF (Loss) / profit before income tax expense and one-off costs (23,593) 48,054 NMF 66,351 NMF Income tax benefit / (expense) 1,847 (3,864) NMF (5,344) NMF (Loss)/profit adjusted for one off costs (21,746) 44,190 NMF 61,007 NMF One-off costs (after tax) (3,165) NMF (Loss)/profit (21,746) 41,025 NMF 61,007 NMF * The 1Q19 income statement adjusted profit excludes GEL 3.2mln one-off employee costs (net of income tax) related to the former CEO and executive management termination benefits. LOAN YIELD COST OF CLIENT DEPOSITS 10.7% 10.2% 8.9% 9.1% 4.0% 4.1% 3.3% 3.7% 63.1% 61.2% 65.9% 83.1% 82.3% 81.1% 82.5% 69.4% 36.9% 38.8% 34.1% 30.6% 16.9% 17.7% 18.9% 17.5% 2017 2018 2019 1Q20 2017 2018 2019 1Q20 Net loans, GEL Net loans, FC I Client deposits, FC Client deposits, GEL Currency-blended loan yield Currency-blended cost of deposits

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