BGEO Group Financial Update

Corporate Banking (CB) PL | Corporate Banking CB Consolidated Income statement Highlights Change Change Change 3Q15 3Q14 2Q15 9M15 9M14 GEL thousands, unless otherwise noted y-o-y q-0-q y-o-y Net banking interest income 32,126 25,557 25.7% 33.949 -5.4% 101,494 73,044 38.9% Net fee and commission income 8,705 6,197 40.5% 8,316 4.7% 23,022 18,211 26.4% Net banking foreign currency gain 7,272 6,561 10.8% 9,769 -25.6% 24,875 17,572 41.6% Net other banking income 2,288 806 183.9% 1,819 25.8% 5,177 2,498 107.2% Revenue 50,391 39,121 28.8% 53,853 -6.4% 154,568 111,325 38.8% Salaries and other employee benefits (9,392) (8,938) 5.1% (8,853) 6.1% (26,733) (24,634) 8.5% Administrative expenses (3,000) (2,348) 27.8% (3,773) -20.5% (9,280) (8,109) 14.4% Banking depreciation and amortisation (1,065) (958) 11.2% (957) 11.3% (3,012) (2,847) 5.8% Other operating expenses (107) (121) -11.6% (188) -43.1% (507) (692) -26.7% Operating expenses (13,564) (12,365) 9.7% (13,771) -1.5% (39,532) (36,282) 9.0% Operating income before cost of credit risk 36,827 26,756 37.6% 40,082 -8.1% 115,036 75,043 53.3% Cost of credit risk (10,531) (7,659) 37.5% (14,146) -25.6% (44,057) (31,533) 39.7% Net non-recurring items (1,401) (115) NMF (199) NMF (2,199) (2,568) -14.4% Profit before income tax 24,895 18,982 31.2% 25,737 -3.3% 68,780 40,942 68.0% Income tax expense (2,698) (2,840) -5.0% (4,119) -34.5% (10,163) (5,193) 95.7% Profit 22,197 16,142 37.5% 21,618 2.7% 58,617 35,749 64.0% Loan Yields | Corporate Banking, standalone CB standalone Deposit Costs | Corporate Banking, standalone CB standalone 100% 16% 100% 8% 13.9% 7.2% 12.4% 14% 7% 80% 10.6% 10.6% 80% 12% 6% 50.3% 50.9% 51.4% 51.4% 10% 5% 60% 60% 8% 4.6% 4% 2.9% 3.0% 40% 6% 40% 3% 83.6% 83.2% 86.8% 89.0% 4% 49.7% 49.1% 48.6% 48.6% 2% 20% 20% 2% 1% 16.4% 16.8% 13.2% 11.0% 0% 0% 0% 0% 2012 2013 2014 9M 2015 2012 2013 2014 9M 2015 Net loans, CB, GEL Client deposits, CB, FC Net loans, CB, FC Currency-blended loan yield, CB Client deposits, CB, GEL Currency-blended cost of client deposits, CB Holding company of BANK OF GEORGIA BGEO www.bgeo.com GROUP November 2015 page 36

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