Bank of Georgia Financial Overview 2021
STRONG CAPITAL ADEQUACY POSITION
30
NBG'S COVID-19 RESPONSE AND CURRENT UPDATE
Release of capital buffers: In April 2020, as part of its updated supervisory plan in
response to the COVID-19 pandemic, the NBG released Pillar 2 and conservation
buffers, reducing the minimum regulatory capital requirements at the time
Capital distribution: During the period that banks partially or fully used the
released buffers, banks could not distribute capital in any form
General COVID-19-related loan loss provision: The Bank recorded c.GEL 400 million
general provision (c.3.3% of the Bank's lending portfolio) under the Bank's local
regulatory accounting basis in March 2020, reflecting the NBG's expectations of
estimated credit losses on the Bank's lending book for the full economic cycle
Subsequently, the NBG has announced a released capital buffers rebuild plan and
has updated the timeline for the phase-in of additional Basel III capital
requirements for the banking sector
Rebuild of capital buffers: As a result of robust operating performance and strong
internal capital generation, the Bank has confirmed to the NBG that since May
2021, it no longer uses or expects to use any of the Pillar 2 or conservation buffers
that were waived in 2020. Consequently, there is no longer any regulatory
restriction for Bank of Georgia on making any capital distributions
Capital distribution: In August 2021, the Group declared an interim dividend of GEL
1.48 per ordinary share for the period ended 30 June 2021, paid to shareholders on 5
November 2021. The Board intends to recommended a final dividend for 2021 of 2.33
GEL per ordinary payable in British Pounds Sterling at the prevailing rate. This will
make a total dividend paid in respect of the Group's 2021 earnings of GEL 3.81 per
share. In addition, the Board aims to implement a share buyback and cancellation
programme
CAPITAL ADEQUACY RATIOS
18.1%
18.6% 19.1% 19.2% 19.3%
17.4% 17.3% 17.6%
15.3%
13.6%
13.3%
11.5%
10.6%
12.0% 12.0%
9.9% 9.9%
12.4%
14.4% 14.6%
12.8%
12.5%
15.0%
13.2%
11.2%
10.4%
8.3%
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
■CET1 Capital Adequacy Ratio
■Tier I Capital Adequacy Ratio
Total Capital Adequacy Ratio
MINIMUM REGULATORY REQUIREMENTS
17.1%
17.7% 17.3% 17.7%
13.3%
13.3% 13.3% 13.8%
13.8% 13.4%
12.2%
11.1%
13.2% 13.6%
11.0% 11.5%
10.1%
9.8%
8.7% 8.7% 8.7% 9.2%
7.4% 7.8%
6.9% 6.9% 6.9%
Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21
■CET1 Capital Adequacy Ratio
■Total Capital Adequacy Ratio
■Tier I Capital Adequacy RatioView entire presentation