Retail Banking Financial Update

GROWING AND WELL-CAPITALISED BANKING SECTOR • SUMMARY Prudent regulation and oversight ensuring financial stability Strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalisation of the banks and no government ownership since 1994 Resilience to different shocks to the economy, room for healthy credit growth Source: National Bank of Georgia, Geostat • BANKING SECTOR ASSETS, LOANS AND DEPOSITS 60 50 40 30 20 10 O 24.7% CAGR Source: NBG 56.9 38.2 34.6 Assets, GEL bn ■Loans, GEL bn ■Deposits, GEL bn NON-PERFORMING LOANS, LATEST 2020 BANKING SECTOR LOANS TO GDP, 2019 Source: World Bank Bulgaria 49.7% Czech Rep. 50.6% Lithuania Hungary Georgia Poland 50.8% Czech Rep. Russia Bosnia & Herz. Croatia Armenia 52.4% 54.2% Latvia Turkey Poland 54.4% 57.1% Estonia 59.0% Turkey 61.8% Slovakia 62.9% Georgia 64.8% Israel 65.4% EU 85.0% Romania Belarus Portugal Armenia Bulgaria Bosnia & Herz. Croatia Kazakhstan Russia Source: IMF, NBG 1.0% 1.2% 2.3% 2.8% 3.5% 3.9% 4.0% 4.1% 4.9% 5.5% 5.7% 6.3% 6.7% 7.0% 8.4% 9.3% 56

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