Bank of Georgia Financial Analysis

70% 50% 30% 10% -10% -30% Jan-03 Sep-03 Source: NBG 3.5 1.4 1.3 1.3 3.0 1.1 1.2 1.2 1.2 1.3 1.4 1.3 1.6 160 12 1.4 1.2 1.2 1.2 150 2.5 7.0 2.8 0.9 2.9 2.8 1.0 1.2 2.7 140 2.5 3.3 1.0 2.0 2.3 3.0 130 2.1 2.8 0.8 1.5 120 1.5 0.6 1.0 1.4 110 0.4 0.9 100 0.5 0.2 0.4 0.5 0.2 06 0.0 0.0 FLOATING EXCHANGE RATE - POLICY PRIORITY FX reserves Nominal and Real effective exchange rate (Jan2003-100) Official FX reserves, US$ bn 2010 2011 2012 2013 2014 2015 2016 2017 M2 and annual inflation May-04 Dec-04 Aug-05 Apr-06 Dec-06 Aug-07 Apr-08 Dec-08 Aug-09 Apr-10 Dec-10 Aug-11 Apr-12 Dec-12 BANK OF GEORGIA -M2, % change, y/y (LHS) -M2 multiplier 2018 Source: NBG 80% 15% 60% 12% 40% 9% 20% 6% 0% 3% -20% 0% -3% -40% -6% -60% Annual inflation, eop (RHS) Aug-13 3 Apr- Apr-14 Dec-14 Aug-15 Apr-16 Dec-16 Aug-17 Apr-18 Dec-18 Jan-03 Sep-03 May-04 Dec-04 Aug-05 Apr-06 Dec-08 -M2, % change, y/y (LHS) Jan-03 Sep-03 May-04 Dec-04 Aug-05 Apr-06 Dec-06 Aug-07 Apr-08 Dec-08 Aug-09 Aug-09 Real effective exchange rate Apr-10 Dec-10 Aug-11 Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 Apr-16 M2 and USD/GEL Aug-09 Apr-10 Dec-10 Aug-11 Apr-12 Apr-12 Dec-12 Aug-13 Aug-15 Apr-14 Apr-14 depreciation appreciation Dec-14 Aug-15 Aug-15 Apr-16 Dec-16 Aug-17 GEL/USD, % change (RHS) Dec-16 Nominal effective exchange rate Source: NBG 40% 30% 20% 10% 0% -10% -20% Apr-18 Dec-18 49 49 -30% Source: NBG 160 150 140 130 120 110 100 90 Aug-17 Apr-18 Dec-18

View entire presentation