Fiscal and Loan Portfolio Analysis

Lobko Targeted financial performance 2010 Target pre-provision profit 2010 GEL mln 160 135.0 127.9 5.73 13.03 120 106.8 21.85 80 40 0 2007 Profit before provisions Losses related to Real Estate Other 68.02 27.0 2008 2009 2010F Goodwill Impairment associated with BG Bank Losses related to investments Target net provision expense 2010 Assumptions 2010 real GDP growth of 2%* in Georgia 2010 inflation rate of 3.2%* in Georgia The GEL/US$ exchange rate remains stable during 2010 ☑Geo-political stability is sustained in the region GEL mln 160 120 80 40 17.0 130.4 128.7 50.0 0 2007 2008 2009 2010F * IMF Estimates BANK OF GEORGIA www.bog.ge/ir March 2010 Page 32

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