Bank of Georgia Growth and Reform Strategy slide image

Bank of Georgia Growth and Reform Strategy

DELIVERING ON GROUP STRATEGY SUCCESSFUL TRACK RECORD OF DELIVERING STRONG RESULTS BANKING BUSINESS KEY TARGETS Nominal Real 1 25.2% 26.4% 26.1% 2 27.0% 22.2% Loan book 24.5% 21.4% ROAE 20%+ 17.4% growth 22.0% c.15% 19.0% 16.1% 15.9% T 2016 2017 2018* 2019** 2016 2017 2018 2019 3 Robust Capital Management Track Record Capital position: We aim to maintain +200bps buffer for CET1 and Tier 1 capital ratios over minimum regulatory requirement during the medium term Maintain regular dividend payouts: Aiming 25-40% dividend payout ratio BANK OF GEORGIA ** GEL 648mln+ cash dividend paid during 2013-2019, within the targeted payout range over past 7 years Regular Dividends Payout 30% 36% 33% 34% 32% 30% 30% 26% ratio: 4.7% 4.0% 4.2% 3.1% 3.1% 3.2% 2.4% 2.7% GEL millions 122 124 98 102 72 80 51 2013 2014 2015 2016 Total dividend paid during the year 2017 2018 2019 2020 Dividend yield* *** 2018 ROAE adjusted for GEL 30.3mln demerger related costs, GEL 8.0mln demerger related corporate income tax gain, GEL 30.3mln one-off impact of re-measurement of deferred tax balances and GEL 3.9mln (net of income tax) termination costs of the former CEO 2019 ROAE adjusted for GEL 14.2mln (net of income tax) termination costs of the former CEO and executive management Dividend yield for 2013-2019 years is calculated based on the closing price of the shares immediately prior to ex-dividend date. At the 2020 Annual General Meeting, the Board intends to recommend an annual dividend for 2019 of GEL 2.67 per share (GEL 130mln in total) payable in British Pounds Sterling at the prevailing rate. Dividend yield for 2020 is calculated based on the closing price of the shares on 31 January 2020 ST 5
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