Bank of Georgia Financial Analysis

BANKING BUSINESS KEY RATIOS 4Q18 4Q17 3Q18 2018 2017 Profitability ROAA, Annualised ** ROAE, Annualised ** RB ROAE ** CIB ROAE ** Net Interest Margin, Annualised RB NIM CIB NIM Loan Yield, Annualised RB Loan Yield CIB Loan Yield 3.2% 3.4% 3.2% 3.2% 3.2% 26.2% 27.8% 26.8% 26.1% 25.2% 27.3% 36.6% 30.9% 30.0% 31.6% 27.9% 18.1% 22.6% 22.6% 17.6% 6.0% 7.3% 6.4% 6.5% 7.3% 6.7% 8.4% 7.2% 7.5% 8.5% 3.2% 3.5% 3.4% 3.3% 3.4% 12.8% 14.3% 13.5% 13.5% 14.2% 14.2% 15.9% 14.8% 15.1% 16.1% 9.8% 11.2% 10.8% 10.2% 10.7% Liquid Assets Yield, Annualised 3.8% 3.4% 3.8% 3.8% 3.4% Cost of Funds, Annualised 5.0% 4.8% 5.0% 5.0% 4.7% Cost of Client Deposits and Notes, Annualised 3.4% 3.5% 3.6% 3.5% 3.5% RB Cost of Client Deposits and Notes 2.9% 2.8% 2.8% 2.9% 2.9% CIB Cost of Client Deposits and Notes 4.0% 4.0% 4.4% 4.1% 4.0% Cost of Amounts Due to Credit Institutions, Annualised 7.9% 6.5% 7.4% 7.3% 6.4% Cost of Debt Securities Issued 7.8% 7.8% 7.8% 7.8% 7.4% Operating Leverage, Y-O-Y 3.8% -2.9% 6.8% 2.9% -0.1% Operating Leverage, Q-O-Q -2.3% -0.2% 2.0% 0.0% 0.0% Efficiency Cost / Income RB Cost/Income CIB Cost/Income Liquidity NBG Liquidity Ratio 36.9% 38.3% 36.1% 36.7% 37.7% 36.7% 38.7% 36.3% 36.5% 38.3% 29.6% 31.0% 30.5% 30.9% 32.0% 31.9% 34.4% 32.5% 31.9% 34.4% Liquid Assets To Total Liabilities 34.9% 38.3% 37.1% 34.9% 38.3% Net Loans To Client Deposits and Notes 115.5% 109.4% 110.5% 115.5% 109.4% Net Loans To Client Deposits and Notes + DFIs 99.6% 92.4% 95.3% 99.6% Leverage (Times) 7.2 7.3 7.6 7.2 92.4% 7.3 Asset Quality: NPLs (in GEL) NPLs To Gross Loans To Clients 318,356 3.3% 301,268 312,203 NPL Coverage Ratio 90.5% 3.8% 92.7% 3.5% 318,356 3.3% 91.7% 90.5% 301,268 3.8% 92.7% NPL Coverage Ratio, Adjusted for discounted value of collateral 129.9% 130.6% 136.9% 129.9% 130.6% Cost of Credit Risk, Annualised 1.1% 2.1% 2.0% 1.6% 2.2% RB Cost of Credit Risk 1.7% 1.8% 2.4% 2.1% 2.5% CIB Cost of Credit Risk -0.2% 3.2% 1.5% 0.8% 1.5% Capital Adequacy: NBG (Basel III) Tier I Capital Adequacy Ratio 12.2% 12.4% 11.0% 12.2% 12.4% NBG (Basel III) Total Capital Adequacy Ratio 16.6% 17.9% 15.9% 16.6% 17.9% BANK OF GEORGIA *For the description of Key Ratios, refer to page 70 ** 2018 results adjusted for demerger related expenses and one-off impact of re-measurement of deferred tax balances 62 42

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