Bank of Georgia Growth and Reform Strategy
STRONG NBG (BASEL III) CAPITAL ADEQUACY POSITION
Capital Management
Issuance of AT1 Capital Notes in March 2019
In March 2019, the Bank issued inaugural US$ 100
million Additional Tier 1 capital perpetual subordinated
notes. It is reflected in the capital ratios since April 2019
after the receipt of the regulatory approval on the
classification as AT1 instrument. At the time of issuance,
the instrument added approximately 230bps to the
Bank's Tier 1 capital ratio
Tier 2 subordinated club facility
In December 2019, the Bank signed a ten-year US$
107mln subordinated syndicated loan agreement
arranged by FMO. The facility is expected to be treated
as a Bank Tier 2 capital instrument (upon disbursement
and approval of the National Bank of Georgia). Of the
total facility, US$ 52mln was already drawn-down and
the regulatory approval on classification was received in
December 2019. The undrawn part of the facility is
expected to be utilised as needed within six months of
2020
Capital Adequacy
Tier 1 Capital Adequacy Ratio Evolution
15%
2.1%
JSC Bank of Georgia standalone
0.4%
13.6%
2.8%
1.0%
13%
12.2%
2.1%
11%
9%
7%
5%
Dec-18
Business
Growth
2019
profit
Dividend
Issuance of GEL
AT1 Capital Devaluation
Notes
Dec-19
BOG Equity vs. Tier 1 Regulatory Capital | 31 Dec 2019
% of RWAs
13.6%
1.5%
0.8%
1.1%
-2.1%
"
Robust internal capital generation per annum
Existing additional capital buffers (within c. 2.3% of
RWAS) reflecting differences in provisioning between
NBG methodology and IFRS 9
Capital Buffer
We aim to maintain c.+200bps for CET1 and Tier 1
capital ratios over minimum regulatory requirements in
the medium term
GEL millions
2,500
2,000
148
287
117
211
2,076
1,888
1,500
1,000
500
3.4%
О
NBG Tier 1
Capital
Loan
Other
provisioning provisioning deductions*
IP
AT1 Capital
Notes
methodologymethodology
difference difference
BOG
Equity
(IFRS)
BANK OF GEORGIA * Other deductions Include revaluation reserve, investments in non-financial subsidiaries and intangible assets
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