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Investor Presentaiton

BANKING BUSINESS KEY RATIOS Profitability ROAA, annualised ** ROAA, annualised (unadjusted) ROAE, annualised ** RB ROAE ** CIB ROAE ** ROAE, annualised (unadjusted) Net interest margin, annualised RB NIM CIB NIM Loan yield, annualised RB Loan yield CIB Loan yield Liquid assets yield, annualised Cost of funds, annualised 4Q19 4Q18 3Q19 2019 2018 3.4% 3.3% 3.2% 3.1% 3.2% 3.4% 3.2% 3.2% 3.1% 2.8% 29.9% 27.0% 26.8% 26.1% 26.4% 31.4% 28.4% 30.7% 28.6% 30.3% 28.5% 28.5% 24.6% 25.6% 22.8% 29.9% 26.2% 26.8% 25.4% 22.9% 5.4% 6.0% 5.4% 5.6% 6.5% 5.7% 6.7% 6.1% 6.1% 7.5% 3.8% 3.2% 3.2% 3.6% 3.3% 11.4% 12.8% 11.5% 11.7% 13.5% 12.4% 14.2% 12.8% 12.9% 15.1% 9.2% 9.8% 8.9% 9.1% 10.2% 3.7% 3.8% 3.2% 3.5% 3.8% 4.7% 5.0% 4.5% 4.6% 5.0% Cost of client deposits and notes, annualised 3.0% 3.4% 2.9% 3.0% 3.5% RB Cost of client deposits and notes 2.5% 2.9% 2.6% 2.6% 2.9% CIB Cost of client deposits and notes 3.3% 4.0% 3.2% 3.3% 4.1% Cost of amounts owed to credit institutions, annualised 7.4% 7.9% 6.8% 7.1% 7.3% Cost of debt securities issued 7.9% 7.8% 7.7% 7.7% 7.8% Operating leverage, y-o-y *** -7.3% 3.8% -5.2% -3.2% 2.9% Operating leverage, q-o-q Efficiency Cost/Income *** RB Cost/Income CIB Cost/Income *** Cost Income (unadjusted) Liquidity *** -4.1% -2.3% 1.2% 0.0% 0.0% 39.3% 36.9% 37.9% 37.8% 36.7% 43.5% 36.7% 38.0% 38.8% 36.6% 26.9% 29.6% 30.4% 28.4% 30.9% 39.3% 36.9% 37.9% 38.9% 36.7% NBG liquidity ratio (minimum requirement 30%) 31.1% 31.9% 36.8% 31.1% 31.9% NBG liquidity coverage ratio (minimum requirement 100%) 136.7% 120.1% 118.5% 136.7% 120.1% Liquid assets to total liabilities 33.9% 34.9% 32.9% 33.9% 34.9% Net loans to client deposits and notes 118.4% 115.5% 118.0% 118.4% 115.5% Net loans to client deposits and notes + DFIs 103.2% 99.6% 103.4% 103.2% 99.6% Leverage (times) 7.6 7.2 7.6 7.6 7.2 Asset Quality: NPLs (in GEL) 252,695 NPLs to gross loans to clients 2.1% 318,356 3.3% 339,118 2.9% 252,695 2.1% 318,356 3.3% NPL coverage ratio 80.9% 90.5% 85.3% 80.9% 90.5% NPL coverage ratio, adjusted for discounted value of collateral 139.6% 129.9% 129.3% 139.6% 129.9% Cost of credit risk, annualised 0.2% 1.1% 0.5% 0.9% 1.6% RB Cost of credit risk 0.2% 1.7% 0.9% 1.2% 2.1% CIB Cost of credit risk 0.5% -0.2% -0.2% 0.2% 0.8% Capital Adequacy: NBG (Basel III) CET1 capital adequacy ratio 11.5% 12.2% 11.1% 11.5% 12.2% Minimum regulatory requirement 10.1% 9.5% 9.5% 10.1% 9.5% NBG (Basel III) Tier I capital adequacy ratio 13.6% 12.2% 13.3% 13.6% 12.2% Minimum regulatory requirement NBG (Basel III) Total capital adequacy ratio Minimum regulatory requirement 12.2% 11.4% 11.6% 12.2% 11.4% 18.1% 16.6% 16.8% 18.1% 16.6% 17.1% 15.9% 16.1% 17.1% 15.9% * For the description of Key Ratios, refer to page 77 BANK OF GEORGIA 4Q18 and the full year 2019 ratios are adjusted for one-off employee costs related to termination benefits of the former CEO and executive management. The full year 2018 ratios are adjusted for one-off employee costs related to termination benefits of the former CEO, demerger related expenses and one-off impact of re-measurement of deferred tax balances *** The full year 2019 results are adjusted for one-off employee costs related to termination benefits of the former executive management 70
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