Georgia's Economic Outlook 2020
STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION
CAPITAL MANAGEMENT
Capital Adequacy
Decline in capital ratios during 1Q20 was primarily due to GEL 400
million general provision created for the full economic cycle in relation to
COVID-19 impact
Existing additional capital buffers (within c.3.9% of RWAs) reflecting
differences in provisioning between NBG methodology and IFRS 9
Dividends
In March 2020, given the level of uncertainty with regard to the global
impact of COVID-19 and the potential length of time of that impact, the
Board of Directors decided not to recommend a dividend for the 2019
year to shareholders at the 2020 AGM. As a result of the ongoing
uncertainties, the Board has confirmed that the Group will not be
distributing a 2019 dividend to shareholders.
Tier 2 subordinated club facility
To further improve the Bank's capital position, in April 2020, the Bank
drew down a $55 million second tranche of a Tier 2 capital instrument
initially arranged in December 2019.
29
BOG EQUITY VS. CET1 REG. CAPITAL | 31 MAR 2020
% of
8.3%
RWAS
GEL millions
3.1%
0.8%
1.3%
1,988
194
123
449
1,222
3.9%
NBG
CET1
Capital
Loan
IP
Other
BOG
provisioning provisioning deductions*
methodology methodology
Equity
(IFRS)
difference
difference
* Revaluation reserve, investments in non-financial subsidiaries and intangible assets
CET1, TIER 1 AND TOTAL CAPITAL RATIOS EVOLUTION DURING 1Q20
Capital ratios
31 December
Business
growth
2019
1Q20 profit
(excl. general
provision)
General
provision -
COVID-19
GEL
devaluation
Other
Capital ratios
31 March
2020
Minimum
requirement
31 March
impact
2020
Impact of
additional
10% GEL
devaluation
CET1 capital adequacy ratio
11.5%
-0.1%
0.5%
-2.5%
-0.8%
-0.3%
8.3%
6.9%
-0.5%
Tier I capital adequacy ratio
13.6%
-0.1%
0.5%
-2.5%
-0.6%
-0.3%
10.6%
8.7%
-0.4%
Total capital adequacy ratio
18.1%
-0.1%
0.5%
-2.4%
-0.5%
-0.3%
15.3%
13.3%
-0.3%View entire presentation