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Investor Presentaiton

Loan portfolio quality Bank of Georgia Loan quality under the following stress tests standalone NPLs declined 5.6% q- 0-q to GEL 129.2 million, while BG Bank' (Ukraine) NPLs grew 45.6% q-o- q to GEL 41.9 million Armed conflict with Russia in August 2008 17% devaluation of Lari against US$ in one day in November 2008 Political crisis in Georgia peak in Spring 2009 NPLs, BoG Standalone NPLs Consolidated GEL mln 200 180 160 140 1320 100 554.4% 30.1 23.9 28.6 600% 500% 32.1 44.6 400% 69.2 58.9 300% 88 80 208.4% 17.2 51.3 61.4 75.4 138.3% 60- 7.169.1% 200% 1211% 118.8% 99.3% 119.3% 102.6% 109.3% 40 100% 41.6 20 22.4 11.3 10.9 35.9 22.7 67.6 70.3 8.1 9.7 12.0 46.3 54.5 67.4 0 0% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 RB & WM CB Other* Q3 2009 NPL coverage ratio Q4 2009 Q1 2010 Q2 2010 * Other NPLs include BNB and BG Bank Loan loss reserve, Consolidated GEL mln GEL mln 160 8% 7.5% 7.5% 200.0 7.4% 9.1% 9.0% 10.0% 8.9% 8.8% 6.8% 140- 6.9% 6.9% 180.0 9.0% 7.4% 7% 7.8% 7.0% 160.0 8.0% 120 6.7% 6.4% 6.5% 6% 5.5% 140.0 6.3% 6.3% 7.0% 4.9% 100 80 5% 120.0 5.0% 6.0% 4.7% 100.0 189.8 5.0% 80 4% 3.2% 166.3 167.0 173.3 111.3 80.0 4.0% 118.7 136.8 147.7 129.2 115.9 60 3% 129.0 127.9 60.0 2.1% 2.1% 3.0% 40 -1.9% 2.0% 87.4 64.3 1.3% 1.7% 101.4 40.0 2.0% 2% 20.0 39.6 44.4 1.0% 20 H2% 32.1 23.3 19.0 0 Q1 2008 Q2 2008 1% 0.0 0.0% Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 04 2009 Q1 2010 NPLS % of Gross loans Loan loss reserve as % of gross loans 0% Q2 2010 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Loan loss reserves Reserve For Loan Losses To Gross Loans, BoG Consolidated Labo BANK OF GEORGIA www.bog.ge/ir September 2010 Page 27
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