BGEO Group Financial Update

GROUP ■Loans ■Deposits Banking sector assets, loans and deposits GEL bln 25 Growing and well capitalised banking sector Summary Prudent regulation ensuring financial stability Sector total capital ratio (NBG standards) -17% in 2013 High level of liquidity requirements from NBG at 30% of liabilities, resulting in banking sector liquid assets to client deposits of 53% as of 31 Dec 2014 Resilient banking sector Demonstrated strong resilience towards both domestic and external shocks without single bank going bankrupt No nationalization of the banks and no government ownership since 1994 Very low leverage with retail loans 18.0% of GDP and total loans at 39.1% of GDP as at 31 December 2013 resulting in low number of defaults during the global crisis Source: National Bank of Georgia, Geostat 28.2% CAGR 25% 20.6 20 20 17.3 20% 14.4 15 12.7 13.0 15% 11.6 10.6 105.7 8.9 10 8.3 7.2 6.0 6.3.5 5.2 7.76.7 8.7.6 10% 4.2 4.6 5 1.8.8.7 1.8.9.0 2.3 2.3.1 3.2 3.6 4.0 5% 0% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Assets Holding company of BANK OF GEORGIA BGEO www.bgeo.com Source: National Bank of Georgia November 2015 Turkey Georgia Austria Belgium Source: WB, IMF Belarus Delaids Denmark Slovakia Latvia Czech Rep. NPLs, 2014 Armenia Russia Kosovo Malta Lithuania Macedonia Moldova Slovenia вшалок Ukraine Bos. & Herz. Croatia Hungary Kazakhstan Romania page 61

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