Investor Presentaiton
STRONG CAPITAL ADEQUACY POSITION
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NBG'S COVID-19 RESPONSE AND CURRENT UPDATE
Release of capital buffers: In April 2020, as part of its updated
supervisory plan as a response to the COVID-19 pandemic, the NBG
released Pillar 2 and conservation buffers, which reduced the
minimum regulatory capital requirements at the time.
Capital distribution: During the period that banks partially or fully
utilised the reduced buffers, banks have not been able to make any
form of capital distribution.
General COVID-19-related loan loss provision: The Bank has
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, and thus
strong capital position, to ensure flexibility on capital distribution to
shareholders, the Bank has confirmed to the NBG that since May
2021, it is no longer utilising, or expects to utilise, any of the Pillar 2
or conservation buffers that were waived last year. Consequently,
there is no longer any regulatory restriction for Bank of Georgia on
making any capital distributions.
CAPITAL ADEQUACY RATIOS
18.6%
19.1%
18.1%
17.4%
17.3%
17.6%
15.3%
14.4%
13.6%
13.3%
12.0%
12.0%
12.4%
12.5%
11.5%
10.6%
11.2%
10.4%
9.9%
9.9%
8.3%
Dec-19
Mar-20 Jun-20
■CET1 Capital Adequacy Ratio
Total Capital Adequacy Ratio
Sep-20
Dec-20 Mar-21
Jun-21
Tier I Capital Adequacy Ratio
MINIMUM REGULATORY REQUIREMENTS
17.7%
17.1%
13.3%
13.3%
13.8%
13.3%
13.8% 13.4%
12.2%
11.1%
10.1%
8.7%
8.7%
8.7%
9.2%
9.8%
7.4%
7.8%
6.9%
6.9%
6.9%
Dec-19
Mar-20 Jun-20 Sep-20
■CET1 Capital Adequacy Ratio
Total Capital Adequacy Ratio
Dec-20
Mar-21
Jun-21
Tier I Capital Adequacy RatioView entire presentation