Retail Banking Financial Update

40% 30% 20% 10% 0% -10% Jan-14 Apr-14 Aug-14 M2, % change, y/y (LHS) 2012 2013 2014 FX RESERVES FLOATING EXCHANGE RATE - POLICY PRIORITY Source: NBG 5.0 1.42 130 1.30 1.36 1.6 1.31 1.25 1.23 1.24 1.27 ON WA 1.16 1.29 1.4 120 4.0 1.03 1.2 110 3.9 3.0 3.5 1.0 100 3.3 2.8 2.9 3.0 2.0 2.8 2.7 2.8 2.5 2.3 1.0 0.0 3 0.8 90 0.6 80 0.4 0.2 70 0.0 Official FX reserves, US$ bn -M2 multiplier • M2 AND ANNUAL INFLATION Nov-14 Mar-15 Jul-15 Oct-15 Feb-16 May-16 Sep-16 Jan-17 Apr-17 Aug-17 Dec-17 Mar-18 Jul-18 Oct-18 Feb-19 Jun-19 Sep-19 Annual inflation, eop (RHS) Jan-20 Apr-20 Aug-20 Dec-20 2018 2019 2020 Jan-14 Apr-14 Aug-14 M2 AND USD/GEL Source: NBG 8% 35% 30% 6% 25% 20% 4% 15% 2% 10% 5% 0% 0% -5% -2% -10% Jan-14 Apr-14 Aug-14 Nov-14 Mar-15 Jul-15 Oct-15 Feb-16 May-16 Sep-16 Jan-17 M2, % change, y/y (LHS) Apr-17 Aug-17 Dec-17 Nominal effective exchange rate Mar-18 Jul-18 Oct-18 Feb-19 Jun-19 Sep-19 - GEL/USD, % change, y/y (RHS) Jan-20 Apr-20 Aug-20 Dec-20 NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014=100) Aug-16 Nov-16 Mar-17 Jun-17 Oct-17 Jan-18 May-18 Aug-18 Dec-18 Mar-19 Jul-19 Oct-19 Real effective exchange rate Source: NBG 130 120 -5.6% y/y 110 100 -7.4% y/y 80 70 Feb-20 May-20 Sep-20 Dec-20 Source: NBG 40% 30% 20% 10% 0% -10% 06 55

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