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Georgian Banking Sector Overview

2017 1st Quarter Results

June, 2017

2© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of

independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved.

Contents

Page

Basis of Preparation

2

At a Glance 3

Sector Highlights 4

General Highlights 5

Bank Profiles 6

Appendix 1: Shareholding Structure & General Information 23

Appendix 2: Sector Insights 26

Appendix 3: Key Financial Indicators 28

Appendix 4: Bank Contact Details 32

Glossary of Terms 34

Basis of Preparation

This report summarizes and analyzes the financial results of the

17 commercial banks of Georgia for the 1st quarter of 2017, as

well as provides some insights into the recent developments in

the sector.

The financial information has been obtained from the published

interim reports for the 1st quarter of 2017. The banks are listed

in the alphabetical order throughout the publication. We have

used simple headline numbers in our analysis unless stated

otherwise; each bank has its own way of reporting performance

and this has proved to be the most consistent method of

presenting their results.

All the key ratios are calculated based on the obtained data

unless stated otherwise.

The general information, such as the number of branches,

employee headcount, etc., are mainly taken from the Notes to

the Financial Statements prepared by the banks. The official

websites of the banks serve as the only alternative source,

however they are not always properly updated. Due to this, the

figures presented may not necessarily be as of 31st March

2017. There may be figures more up to date or of an earlier date

depending on the latest available information published by the

banks.

The main source of news is the official websites of the banks

and the National Bank of Georgia, as well as the official press

releases published by various news agencies.

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of


reserved.



reserved.

At a Glance

Key Financial Indicators of the Georgian Banking Sector (in million GEL)*

* The difference between the table and other information provided in the report might be caused by the different bases of preparation of financial

information by the National Bank of Georgia.

** The indicators of the financial position are as of the last day of the corresponding period

*** The change for the financial performance indicators is for the periods of the first 3 months of the years

**** The figure does not contain bank deposits

***** The total income consists of interest income and fee and commission income

The banking system remains the biggest part of the Georgian financial market. As of 31 March 2017, there were 17

commercial banks operating in Georgia, while the number of banks was 18 in the same period of 2016.

Key Financial

indicators**2017 Q 1 2016 2016 Q 1

31.03.2017/

31.12.2016

31.03.2017/

31.03.2016***

Assets 29,751 30,149 24,727 (1.32%) 20.32%

Loan portfolio 18,886 18,934 16,027 (0.26%) 17.84%

Liabilities 25,443 26,171 21,178 (2.78%) 20.14%

Deposits**** 16,069 16,991 14,271 (5.43%) 12.60%

Total Equity 4,308 3,978 3,549 8.29% 21.39%

Share Capital 957 953 998 0.41% (4.04%)

Total Income***** 742 2,705 647 - 14.69%

Interest income 647 2,366 582 - 11.14%

Provision Expenses -3 338 117 - (102.67%)

Net profit after taxes 258 679 110 - 134.59%

Top Ten Banks of the Georgian Banking Sector as of 31 March 2017 (in thousand GEL)******

****** TBC has acquired Bank Republic; merger was completed in May 2017

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Assets Loans Total Equity Total Income (right axis)* Net profit after taxes (right axis)

6.95%

7.77%

6.40%

6.60%

6.80%

7.00%

7.20%

7.40%

7.60%

7.80%

8.00%

2017 Q1 2016 Q1

Non-performing loan rates for the Georgian banking sector



reserved.

General highlights▪ On January 17 de-dollarization program was implemented together by Government and National

Bank. Individuals who had real estate bank loans in foreign currency had a chance to convert it

into national currency. Following this, loans of $75 million were converted to GEL by the end of

March.

▪ At the end of February Government decided to return Finance Sector Supervision functions to

National Bank of Georgia (NBG).

▪ In March, 2017 Georgian government with support of World Bank has approved legislative

amendments for introduction of deposits obligatory insurance system. The law is planned to be

adopted this year and will come into force on January 1, 2018.

▪ In March NBG issued a banking license to JSC Credo Bank, which has been operating on

Georgian market since 2007 as a microfinance organization.

▪ In March Netherlands Development Finance Company (FMO) has sold its own shares in TBC

Holding. Institutional investors of UK, USA and Europe have bought the shares under

accelerated deal managed by Barclays and Renaissance Capital.

▪ By the end of March the accounts of Bank Republic clients had been tied to TBC Bank and Bank

Republic cards were replaced by TBC Bank cards. Merger has successfully finished in May.

▪ In March Minimum Capital Requirement for banking license applicant was increased up to GEL

50 mln, in turn, for the banks licensed by NBG before coming into effect of official order,

supervisory capital should be not less than GEL 30 million (by December 31, 2017), not less

than GEL 40 million (by June 30, 2018), not less than GEL 50 million (by December 31, 2018).

To note, Silkroad bank, Finca bank and Ziraat bank will have to grow their capital by the end of

2018.

▪ On May 2 announcement was made that Turkey’s state-run Ziraat Bank will offer services in

neighboring Georgia under a new institution called JSC Ziraat Bank Georgia.

▪ On May 15 the official ceremony of signing declaration, concerning founding of Georgian

development bank was held in Beijing, China. The declaration was signed by Vice Prime

Minister, Dimitri Kumsishvili. The founders of the bank are largest Chinese corporations: „CEFC

China Energy Company Limited’’ and the company „Eurasian Invest LLC”.

▪ The Minimum Requirement Of Liquidity Coverage Ratio will be established for the Commercial

banks from September. The LCR ratio will be calculated as High Qualified Liquid Assets / Net

cash outflow (Net outflow represents difference between cash inflow and cash outflow over a

30-day stress period). The aim of the new limit is to ensure that banks have sufficient high

qualified liquid assets to survive the stress period.

Sources: Caucasus Business week



reserved.

Loan portfolio/non-bank deposits

1.2

ROA3.04%

ROE21.3%

Loan portfolio/

assets63.5%

Loan loss reserve/

loans5.9%

Sector HighlightsCompared with the same period of 2016, the banking system assets

grew by 20.3% and reached GEL 29.75 billion as of 31 March 2017.

For the 12 months period ended 31 March 2017 the return on assets

(ROA)* for the Georgian banking system was 3.0%, while the same

indicator amounted to 2.2% in the same period of 2016.

As of 31 March 2017 Bank of Georgia held the largest part of the total

banking sector’s assets, while TBC Bank was the second largest,

although it is worth mentioning that TBC has acquired Bank Republic,

which also held leading position in the list.

As of 31 March 2017 the total amount of outstanding loans grew by

17.8% compared with the same period of 2016 and reached GEL 18.89

billion.

As of 31 March 2017 the ratio of loan portfolio to total assets for the

Georgian banking system was 63.5%, while the same ratio was around

64.8% as of 31 March 2016.

For the end of Q1 2017 the loan provision expenses of the Georgian

banking sector decreased by 104.2% compared with the same period of

the 2016, and amounted to GEL -0.005 billion. From 31 March 2016 to

31 March 2017 the ratio of loan loss reserves to total loan portfolio

decreased from 6.9% to 5.9%.

The balance of non-bank deposits as of 31 March 2017 increased by

12.6% compared with the same date of 2016, reaching GEL 16.1 billion.

As of 31 March 2017 the loan portfolio/ non-bank deposit ratio for the

Georgian banking system was 1.2. The ratio was lower 1.1 as of 31

March 2016.

As of 31 March 2017 the total equity of banks reached GEL 4.31 billion,

showing 21.4% increase compared to the same figure as of 31 March

2016.

For the 12 months period ended 31 March 2017 the return on equity

(ROE)* for the Georgian banking system was 21.3%, while ROE for the

same period of 2016 was 15.7%. The ratio of equity to assets as of the

31 March 2017 was 14.5%, while the same ratio was around 14.4% as of

31 March 2016.

For the Q1 of 2017, the banking system had total income (interest

income plus fee and commission income) of GEL 0.7 billion, which

exceeded the total income for the same period of 2016 by 14.7%. The

net profit of the banks for the period was GEL 0.3 billion, which is

134.6% higher compared with the same period of 2016.

20.3%

Assets

17.8%

Loans

12.6%

Non-bank

deposits

Total income

14.7%

134.6%

Net profit

(104.2)%

Loan provision expenses

Total Equity

21.4%



reserved.

Amount , GEL, thousands Change**

2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.2017/ 31.03.2017/

31.12.2016 31.03.2016

Assets 9,811,766 10,765,807 8,292,994 32.98% 1 (8.86%) 18.31%

Loan Portfolio 6,051,035 6,629,042 5,181,875 32.04% 1 (8.72%) 16.77%

Liabilities 8,722,012 9,499,861 7,375,674 34.28% 1 (8.19%) 18.25%

Deposits 5,280,789 5,773,512 4,736,351 32.86% 2 (8.53%) 11.49%

Total Equity 1,089,754 1,265,946 917,320 25.30% 2 (13.92%) 18.80%

Share Capital 26,053 27,821 26,659 2.72% 11 (6.35%) (2.27%)

Total

Income****271,878 1,076,428 231,261 36.65% 1 17.56%

Interest

Income231,330 908,042 198,256 35.74% 1 16.68%

Net Profit/ loss

after Taxes118,359 289,094 26,753 45.91% 1 342.42%

Bank ProfilesBank of GeorgiaKey Financial Indicators*

Key RatiosRankings

1st

rank by the assets

1st

rank by the loan portfolio

1st

rank by the liabilities

2nd

rank by the deposits

2nd

rank by the equity

1st

rank by the net profit after tax

1st

rank by the total income

1st

rank by the interest income

11th

rank by the share capital

January February March

* The indicators of the financial position are as of the last day of the corresponding period.

** The change for the financial performance indicators is for the periods of the first 3 months of the years

*** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data

**** The total income consists of interest income and fee and commission income

Key Indicators of Financial Performance,

GEL, thousands

Key Indicators of Financial Position,

GEL, thousands

11.11%

22.81%

15.25%

9.47%

5.36%

4.77%

43.82%

8.21%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE

Non PerformingLoans/Total Loans

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

Assets LoanPortfolio

Liabilities Deposits TotalEquity

ShareCapital

As of 31.03.2017

As of 31.03.2016

0

50,000

100,000

150,000

200,000

250,000

300,000

Total Income Interest Income Net Profit/ loss afterTaxes

As of 31.03.2017

As of 31.03.2016



reserved.

Bank Profiles (continued)Bank RepublicKey Financial Indicators*

Key RatiosRankings

Among the top ten banks by all financial indicators, except

share capital







GEL, thousands


GEL, thousands


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 1,945,332 2,058,677 1,654,097 6.54% 3 (5.51%) 17.61%

Loan Portfolio 1,428,590 1,447,571 1,219,492 7.56% 3 (1.31%) 17.15%

Liabilities 1,647,490 1,750,174 1,409,512 6.48% 3 (5.87%) 16.88%

Deposits 675,248 813,821 743,987 4.20% 5 (17.03%) (9.24%)

Total Equity 297,842 305,913 244,584 6.91% 3 (3.46%) 21.77%

Share Capital 76,031 76,031 76,031 7.94% 6 (0.00%) 0.00%

Total

Income****48,802 193,905 47,532 6.58% 4 2.67%

Interest

Income41,478 175,923 40,223 6.41% 4 3.12%

Net Profit/ loss

after Taxes21,650 65,057 13,113 8.40% 3 65.10%

15.31%

15.84%

13.96%

10.96%

4.77%

4.50%

29.91%

2.68%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017

As of 31.03.2016



reserved.

Bank Profiles (continued)Basis BankKey Financial Indicators*

Key RatiosRankings


share capital







GEL, thousands


GEL, thousands


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 905,578 940,157 724,041 3.04% 8 (3.68%) 25.07%

Loan Portfolio 592,855 609,111 450,751 3.14% 8 (2.67%) 31.53%

Liabilities 732,540 754,388 568,537 2.88% 8 (2.90%) 28.85%

Deposits 552,246 562,270 440,807 3.44% 8 (1.78%) 25.28%

Total Equity 173,038 185,769 155,504 4.02% 7 (6.85%) 11.28%

Share Capital 16,057 16,057 16,013 1.68% 15 0.00% 0.28%

Total

Income****19,134 70,107 17,375 2.58% 9 10.13%

Interest

Income17,782 65,953 16,331 2.75% 9 8.89%

Net Profit/ loss

after Taxes7,984 25,466 7,078 3.10% 9 12.80%

Asian Development Bank has allocated credit

line to Basis Bank in order to support trade

development

19.11%

30.47%

18.73%

17.14%

4.78%

3.53%

18.63%

3.75%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017

As of 31.03.2016



reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 1,179,169 1,420,363 1,205,163 3.96% 7 (1.14%) (2.16%)

Loan Portfolio 834,862 937,005 904,980 4.42% 6 1.24% (7.75%)

Liabilities 981,514 1,142,170 981,155 3.86% 7 7.11% 0.04%

Deposits 627,908 747,610 620,893 3.91% 7 5.01% 1.13%

Total Equity 197,655 278,193 224,008 4.59% 4 (28.49%) (11.76%)

Share Capital 114,430 114,430 114,430 11.95% 3 0.00% 0.00%

Total

Income****22,869 116,311 24,942 3.08% 7 (8.31%)

Interest

Income21,618 108,902 23,566 3.34% 7 (8.26%)

Net Profit/ loss

after Taxes5,394 75,252 6,342 2.09% 8 (14.95%)

Bank Profiles (continued)Cartu BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings

3rd

rank by the Share Capital

4th

rank by the Total Equity


share capital

16.76%

28.96%

28.33%

14.43%

4.26%

1.77%

11.20%

29.29%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000

Total Income Interest Income Net Profit/ lossafter Taxes

As of 31.03.2017As of 31.03.2016



reserved.


GEL, thousands


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 574,633 543,990 N/A 1.93% 10 5.63% N/A

Loan Portfolio**** 466,685 443,429 N/A 2.47% 9 6.89% N/A

Liabilities 457,622 428,651 N/A 1.80% 10 6.76% N/A

Deposits - - N/A 0.00% 17 0.00% N/A

Total Equity 117,011 115,339 N/A 2.72% 9 1.45% N/A

Share Capital 4,400 4,400 N/A 0.46% 16 0.00% N/A

Total Income*****37,828 145,853 N/A 5.10% 5 N/A

Interest Income27,100 127,568 N/A 4.19% 6 N/A

Net Profit/ loss

after Taxes1,680 26,219 N/A 0.65% 12 N/A

Bank Profiles (continued)Credo BankKey Financial Indicators*

Key RatiosRankings


Net profit and Share Capital.





**** 2016 Loan portfolio represents the loans net of provision due to lack of available information



GEL, thousands

20.36%

16.60%

14.74%

13.75%

11.96%

1.14%

5.77%

3.69%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017

JSC Microfinance Organization Credo was granted

banking license by NBG and started operating as JSC

Credo Bank



reserved.

13.28%

27.21%

14.20%

12.90%

14.46%

0.06%

0.40%

3.01%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE



2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 274,820 277,686 240,347 0.92% 13 (1.03%) 14.34%

Loan Portfolio 211,290 206,376 183,549 1.12% 12 2.38% 15.11%

Liabilities 240,475 240,157 205,494 0.95% 13 0.13% 17.02%

Deposits 94,631 99,614 49,151 0.59% 10 (5.00%) 92.53%

Total Equity 34,345 37,530 34,853 0.80% 14 (8.49%) (1.46%)

Share Capital 20,214 20,214 20,214 2.11% 14 (0.00%) 0.00%

Total

Income****14,655 59,468 14,525 1.98% 11 0.89%

Interest

Income13,141 59,290 13,109 2.03% 11 0.24%

Net Profit/ loss

after Taxes283 676 358 0.11% 15 (20.80%)

Bank Profiles (continued)Finca BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings

10th

rank by Deposits

11th

rank by Total Income and Interest Income

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016



reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 342,427 376,357 265,653 1.15% 11 (9.02%) 28.90%

Loan Portfolio 254,014 278,954 208,409 1.34% 11 (8.94%) 21.88%

Liabilities 287,947 316,944 218,338 1.13% 11 (9.15%) 31.88%

Deposits 66,439 80,132 47,993 0.41% 12 (17.09%) 38.43%

Total Equity 54,481 59,413 47,314 1.26% 12 (8.30%) 15.15%

Share Capital 48,000 48,000 48,000 5.01% 7 0.00% 0.00%

Total

Income****9,489 32,580 7,246 1.28% 12 30.96%

Interest

Income7,635 28,678 6,736 1.18% 12 13.35%

Net Profit/ loss

after Taxes3,793 8,897 817 1.47% 9 364.49%

Bank Profiles (continued)Halyk BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings

7th rank by the Share Capital

9th

rank by Net Profit

15.91%

22.96%

17.99%

10.72%

6.21%

4.21%

28.71%

5.50%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016



reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 109,121 138,098 105,193 0.37% 15 (25.77%) 3.73%

Loan Portfolio 33,460 70,367 72,174 0.18% 15 (58.55%) (53.64%)

Liabilities 69,944 104,755 74,774 0.27% 15 (33.85%) (6.46%)

Deposits 40,854 32,296 15,701 0.25% 14 1.97% 160.20%

Total Equity 39,178 33,343 30,419 0.91% 13 (5.06%) 28.79%

Share Capital 22,688 22,688 22,688 2.37% 12 0.00% 0.00%

Total

Income****1,840 10,918 2,649 0.25% 15 (30.56%)

Interest

Income1,538 9,148 2,237 0.24% 15 (31.23%)

Net Profit/ loss

after Taxes1,754 4,943 1,614 0.68% 11 8.65%

Bank Profiles (continued)International Bank of AzerbaijanKey Financial Indicators*

Key RatiosRankings

11th rank by the Net Profit




*** Based on NBG data



GEL, thousands


GEL, thousands

35.90%

54.11%

86.47%

56.34%

4.02%

5.17%

19.61%

17.92%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017

As of 31.03.2016



reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 312,479 276,050 219,681 1.05% 12 46.66% 42.24%

Loan Portfolio 190,537 181,677 150,814 1.01% 13 28.71% 26.34%

Liabilities 281,728 240,766 187,788 1.11% 12 55.17% 50.03%

Deposits 88,695 65,100 63,680 0.55% 11 61.22% 39.28%

Total Equity 30,751 35,284 31,894 0.71% 15 (2.37%) (3.58%)

Share Capital 30,000 30,000 30,000 3.13% 9 0.00% 0.00%

Total

Income****4,941 17,707 4,075 0.67% 12 21.26%

Interest

Income4,729 16,373 3,869 0.73% 14 22.23%

Net Profit/ loss

after Taxes-298 3,787 1,509 -0.12% 17 (119.78%)

Bank Profiles (continued)Isbank GeorgiaKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings

9th rank by the Share Capital

9.84%

30.12%

29.65%

19.03%

2.44%

(0.38%)

(3.89%)

1.67%

(25.00%) 0.00% 25.00% 50.00% 75.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE

Non Performing Loans/TotalLoans

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017

As of 31.03.2016



reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 1,613,923 1,613,085 1,531,461 5.42% 4 0.05% 5.38%

Loan Portfolio 774,692 704,564 711,394 4.10% 7 9.95% 8.90%

Liabilities 1,417,959 1,427,854 1,393,447 5.57% 4 (0.69%) 1.76%

Deposits 1,239,678 1,292,053 1,228,100 7.70% 3 (4.05%) 0.94%

Total Equity 195,964 185,231 156,362 4.55% 5 5.79% 25.33%

Share Capital 43,840 54,233 43,840 4.58% 8 (19.16%) 0.00%

Total

Income****80,701 297,746 70,314 7.93% 3 14.77%

Interest

Income61,665 270,146 57,605 9.19% 3 7.05%

Net Profit/ loss

after Taxes9,717 47,714 4,343 3.77% 5 123.76%

Bank Profiles (continued)Liberty BankKey Financial Indicators*

Key Ratios Rankings







GEL, thousands


GEL, thousands

Rankings

Among the top ten banks by all financial indicators

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016

12.14%

44.67%

23.99%

15.25%

8.22%

2.36%

20.16%

10.29%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE




reserved.


GEL, thousands


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 263,740 282,485 267,679 0.89% 14 (6.64%) (1.47%)

Loan Portfolio 108,321 97,210 101,462 0.57% 14 11.43% 6.76%

Liabilities 161,111 179,201 171,989 0.63% 14 (10.10%) (6.33%)

Deposits 38,320 46,024 58,883 0.24% 15 (16.74%) (34.92%)

Total Equity 102,629 103,284 95,689 2.38% 11 (0.63%) 7.25%

Share Capital 103,000 103,000 103,000 10.76% 4 0.00% 0.00%

Total

Income****4,879 23,906 5,949 0.48% 14 (17.99%)

Interest

Income4,845 23,320 5,920 0.72% 13 (18.16%)

Net Profit/ loss

after Taxes1,424 4,881 1,848 0.55% 13 (22.97%)

Bank Profiles (continued)Pasha Bank GeorgiaKey Financial Indicators*

Key RatiosRankings







GEL, thousands

Rankings

4th


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016

38.91%

12.47%

48.57%

46.78%

5.51%

2.13%

5.56%

0.06%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE




reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 1,265,596 1,394,862 1,169,763 4.25% 6 (9.27%) 8.19%

Loan Portfolio 853,633 875,486 889,540 4.52% 5 (0.30%) (4.04%)

Liabilities 1,083,211 1,198,729 1,018,322 4.26% 6 (9.64%) 6.37%

Deposits 644,948 732,575 620,244 4.01% 6 (11.96%) 3.98%

Total Equity 182,384 196,133 151,441 4.23% 6 (7.01%) 20.43%

Share Capital 88,915 88,915 88,915 9.29% 5 (0.00%) 0.00%

Total

Income****22,496 115,367 28,422 2.21% 8 (20.85%)

Interest

Income20,001 104,532 25,254 2.98% 8 (20.80%)

Net Profit/ loss

after Taxes3,369 24,271 5,089 1.31% 10 (33.80%)

Bank Profiles (continued)Procredit BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017

As of 31.03.2016

14.41%

28.10%

17.08%

13.22%

3.52%

1.02%

7.44%

4.22%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


European Investment Fund and ProCredit Bank

signed an agreement that will benefit innovative

Georgian small and medium-sized enterprises

ProCredit Holding, the owner of ProCredit

Bank, has been listed in Frankfurt stock

exchange



reserved.

Rankings

10th



2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 56,419 79,941 61,000 0.19% 17 (11.87%) (7.51%)

Loan Portfolio 6,889 10,056 15,060 0.04% 17 (55.89%) (54.26%)

Liabilities 28,632 42,931 31,738 0.11% 17 5.11% (9.79%)

Deposits 20,083 32,799 21,476 0.12% 16 (6.03%) (6.49%)

Total Equity 27,787 37,010 29,263 0.65% 16 (24.45%) (5.04%)

Share Capital 30,000 30,000 30,000 3.13% 10 0.00% 0.00%

Total

Income****1,126 3,658 1,099 0.11% 16 2.52%

Interest

Income894 3,446 997 0.13% 16 (10.26%)

Net Profit/ loss

after Taxes15 729 (695) 0.01% 16 (102.20%)

Bank Profiles (continued)Silk road BankKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000

Total Income Interest Income Net Profit/ lossafter Taxes

As of 31.03.2017

As of 31.03.2016

49.25%

26.39%

67.87%

67.72%

4.01%

0.09%

0.22%

28.70%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE




reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 8,899,743 10,761,759 6,365,523 29.91% 2 (17.30%) 39.81%

Loan Portfolio 5,717,023 7,358,725 4,495,146 30.27% 2 (22.31%) 27.18%

Liabilities 7,419,602 9,189,970 5,243,996 29.16% 2 (19.26%) 41.49%

Deposits 5,373,705 6,461,582 3,885,951 33.38% 1 (16.84%) 38.29%

Total Equity 1,480,141 1,571,789 1,121,527 34.36% 1 (5.83%) 31.98%

Share Capital 21,016 20,617 20,022 2.20% 13 1.93% 4.96%

Total

Income****221,063 909,212 188,512 21.71% 2 17.27%

Interest

Income174,730 766,410 157,172 26.03% 2 11.17%

Net Profit/ loss

after Taxes66,517 299,685 36,707 25.80% 2 81.21%

Bank Profiles (continued)TBCKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

Rankings

2nd

rank by the assets

2nd

rank by the loan portfolio

2nd

rank by the liabilities

1st

rank by the deposits

1st

rank by the equity

2nd

rank by the net profit after tax

2nd

rank by the total income

2nd

rank by the interest income

13th

rank by the share capital

TBC Bank appointed new Chief

Risk Officer David Chkonia

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000



ShareCapital

As of 31.03.2017As of 31.03.2016

0

50,000

100,000

150,000

200,000

250,000

300,000


As of 31.03.2017As of 31.03.2016

16.63%

17.55%

15.09%

14.04%

4.44%

2.96%

18.38%

4.09%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


The Global Finance has named

TBC Bank as Georgia’s Best

Bank for the tenth time



reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 656,779 696,640 683,025 2.21% 9 (0.31%) (3.84%)

Loan Portfolio 452,768 466,827 491,297 2.40% 10 3.71% (7.84%)

Liabilities 552,815 578,142 579,525 2.17% 9 (0.61%) (4.61%)

Deposits 452,028 520,602 484,434 2.81% 9 0.28% (6.69%)

Total Equity 103,965 118,498 103,501 2.41% 10 1.34% 0.45%

Share Capital 121,372 121,372 111,000 12.68% 2 9.34% 9.34%

Total

Income****16,056 65,837 18,035 1.58% 10 (10.98%)

Interest

Income14,072 63,093 16,387 2.10% 10 (14.13%)

Net Profit/ loss

after Taxes5,437 5,536 1,279 2.11% 7 325.02%

Bank Profiles (continued)Tera BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016

0.00%

18.92%

16.74%

10.52%

4.05%

3.20%

21.23%

11.27%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE




reserved.


2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 1,458,621 1,546,014 1,299,879 4.90% 5 (5.65%) 12.21%

Loan Portfolio 892,805 964,910 820,491 4.73% 4 (7.47%) 8.81%

Liabilities 1,299,674 1,349,586 1,157,602 5.11% 5 (3.70%) 12.27%

Deposits 847,177 831,274 770,757 5.26% 4 1.91% 9.91%

Total Equity 158,946 196,428 142,276 3.69% 8 (19.08%) 11.72%

Share Capital 191,293 191,293 191,293 19.98% 1 (0.00%) 0.00%

Total

Income****33,325 121,941 31,235 3.27% 6 6.69%

Interest

Income27,884 116,816 26,137 4.15% 5 6.68%

Net Profit/ loss

after Taxes10,224 27,444 3,491 3.97% 4 192.87%

Bank Profiles (continued)VTB Bank-GeorgiaKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

Rankings

1st

rank by share capital


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016

10.90%

29.20%

13.39%

9.61%

3.71%

2.78%

26.41%

6.79%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE




reserved.

Bank Profiles (continued)Ziraat Bankasi A.S. Tbilisi BranchKey Financial Indicators*

Key RatiosRankings



GEL, thousands


GEL, thousands

Rankings

13th

rank by the Deposits

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 31.03.2017

As of 31.03.2016

0

20,000

40,000

60,000

80,000

100,000


As of 31.03.2017As of 31.03.2016

27.31%

74.90%

48.07%

46.36%

4.01%

2.57%

8.82%

4.17%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE





**** No share capital as it represents a branch



2017 Q 1*** 2016*** 2016 Q 1*** Share in total

sector, %Rank

31.03.17/ 31.03.17/

31.12.16 31.03.16

Assets 80,952 67,353 62,346 0.27% 16 26.37% 29.84%

Loan Portfolio 16,351 15,562 12,742 0.09% 16 19.56% 28.33%

Liabilities 58,841 45,700 42,250 0.23% 16 32.44% 39.27%

Deposits 57,975 45,058 38,848 0.36% 13 40.39% 49.23%

Total Equity 22,111 21,653 20,096 0.51% 17 12.64% 10.03%

Share Capital**** N/A N/A N/A N/A N/A N/A N/A

Total Income****1,084 4,252 1,062 0.11% 17 2.07%

Interest Income832 3,033 815 0.12% 17 2.07%

Net Profit/ loss

after Taxes483 2,028 474 0.19% 14 1.84%



reserved.

Appendix 1 Shareholding Structure & General Information

JSC Halyk Bank Georgia

List of Shareholders owning 1% and

more of issued capital:

JSC Halyk Bank of Kazakhstan-100%

List of bank beneficiaries, direct or

indirect holders of 5% or more of

shares:

Timur Kulibayev 36.77%

Dinara Kulibayeva 36.77%

Branches and Service centers : 5

Staff: 150-200

JSC Basisbank

Shareholders owning 1% and more

of issued capital:

Xinjiang HuaLing Industry & Trade

(Group) Co LTD 92.30%

Zaiqi Mi 6.97%



shares:

Enhua Mi 92.22%

Zaiqi Mi 6.97%


Staff: 348 employees

JSC Bank Republic



TBC Bank – 100%



shares:

N/A

JSC Isbank Georgia



Turkey Is Bank 100.00%



shares:

Turkıye Is Bankası A,S, Employees

Pensıon Fund 40.15%

Turkey Republıcan People's Party

28.09%


Staff: 37

JSC FINCA Bank Georgia



FINCA Microfinance Coöperatief U.A.

(Netherlands) 100%



shares:

FINCA Microfinance Holding Company

LLC 100 Voting right of FINCA

Microfinance Coöperatief U.A.

FINCA International, Inc. (New York,

USA) 62.64%

IFC 14.38%

KfW 8.94%

FMO 7.31%



JSC International Bank of

Azerbaijan- Georgia



OJSC International Bank of Azerbaijan

75.00%

OJSC Azerbaijan Industry Bank 12.50%

Natia Chkhartishvili 6.25%

Mikheil Chkhartishvili 6.25%



shares:

State Committee of State Property of

Azerbaijan Republic 71.33%

Leyla Gozal Kurt 7.07%

Natia Chkhartishvili 6.25%

Mikheil Chkhartishvili 6.25%


Staff: 11-50

JSC Bank of Georgia



BGEO Group 99.51%



shares:

Harding Loevner Management LP

8.09%

Branches and Service centers: 273


JSC CARTU BANK



Jsc Cartu Group 100%



shares:

Uta Ivanishvili 100%


Staff: 201- 500 employees

JSC Credo Bank

List of Shareholders owning 1% and more

of issued capital:

Access Microfinance Holding AG – 60.2%Triodos Custody B.V., Triodos Fair Share Fund– 9.9%Triodos SICAV II, Triodos Microfinance Fund – 9.9%responsAbility Participations AG – 9.34%responsAbility Management Company S.A., responsAbility Global Microfinance Fund (Luxembourg) – 8.79%responsAbility SICAV (Lux) -responsAbility SICAV (Lux) Microfinance Leaders Fund – 1.87%


indirect holders of 5% or more of shares:

CDC Group PLC (UK) - 7.57%European Investment Bank (Luxembourg) - 7.57%nternational Finance Corporation (USA) -7.57%LFS Financial Systems GmbH (Germany) -10.22%Omidyar Tufts Microfinance Fund (USA) -9.83%Dr. Bernd Zattler (Germany) - 6.13%


Staff: 1749

The shareholding structure of the Georgian banks is diverse. There are both resident and non-

resident shareholders. Meanwhile, almost in all the Georgian banks non-resident shareholders are

presented.

The shareholding structure and information on branches and the staff for each bank is presented

below.



reserved.

Appendix 1 Shareholding Structure & General Information (continued)

JSC ProCredit Bank



ProCredit Holding AG & Co. KGaA

100.00%



shares:

Zeitinger Invest GmbH >15% to <20%

KfW >10% to <15%

DOEN Foundation >10% to <15%

IFC >10% to <15%

TIAA-CREF >10% to <15%


Staff: N/A

JSC Pasha Bank Georgia



PASHA Bank OJSC 100.00%



shares:

Arif Pashayev 10.00%

Arzu Aliyeva 45.00%

Leyla Aliyeva 45.00%


Staff: 50-60

JSC Liberty Bank



Liberty Holding Georgia LLC 73.02%

BNY Limited (Nominees) 12.79%

Vladimer Gurgenidze 4.79%

ELVIN Solutions Limited 1.66%

OLIVE Capital Management Ltd 1.20%

Jaap Willem Rotgans 1.01%

Others 5.53%



shares:

Denis Korotkov-Koganovich 24.88%

Malik Ishmuratov 24.88%

Nurlan Abduov 24.88%

BNY Limited (Nominees) 12.59%


Staff: 4394

JSC Silk Road Bank



JSC Silk Road Financial Group 99.987%



shares:

Giorgi Ramishvili 61.992%

Alexi Topuria 28.496 %

David Franz Borger, Germany 9.499%


Staff: N/A

JSC TBC Bank



TBC Bank Group PLC 98.47%



shares:

Mamuka Khazaradze 13.98%

EBRD 12.03%

Badri Japaridze 6.98%

Societe Generale SA - 5.33%

Dunross & Co. 5.70%

Schroder Investment Management

7.72%

JPMorgan Asset Management

Holdings 7.77%


Staff: 4,919 employees

JSC Terabank (previously Kor

Standard Bank)



H.H Sheikh Nahayan Mabarak AL

Nahayan 45%

H.H. Sheikh Hamdan Bin Zayed AL

Nehayan 20%

H.H. Sheikh Mansoor Bin Zayed Bin

Sultan AL Nehayan 15%

H.E. Shaikh Mohammad Butti AL

Hamed 15%

LTD INVESTMENT TRADING GROUP

5%



shares:

H.H Sheikh Nahayan Mabarak AL

Nahayan 45%

H.H. Sheikh Hamdan Bin Zayed AL

Nehayan 20%

H.H. Sheikh Mansoor Bin Zayed Bin

Sultan AL Nehayan 15%

H.E. Shaikh Mohammad Butti AL

Hamed 15%


Staff: 368

JSC VTB Bank (Georgia)



JSC VTB Bank 97.14%

LTD Lakarpa Enterprises Limited

1.61%



shares:

Russian Federation 59.16%


Staff: 1160

T.C. ZIRAAT BANKASI A.S. TBILISI

BRANCH



The Undersecretariat of Treasury of the

Turkish Republic -100%



shares:

The Undersecretariat of Treasury of the

Turkish Republic - 100%


Staff: N/A



reserved.

Appendix 2

Sector InsightsAssets

As of 31 March 2017 the assets grew in almost all the banks, and only four banks suffered decreases

as compared with the same period of 2016.

As of 31 March 2017 Bank of Georgia had the highest value of assets - about GEL 9.8 billion, which is

32.98% of the total assets of the banking sector. Silk Road Bank had the lowest level – GEL 0.056

billion (0.19% in total assets). It is worth mentioning that, as of 31 March 2017, the top two banks

(ranked by assets) held 62.89% of the assets of the banking system, while the top five banks held

79.76% of the total assets.

Loan portfolio

The total amount of loans issued at the end of the 1st

quarter of 2017 amounted to GEL 18.89 billion

(Q1 2016: GEL 16.03 billion). The major part of the loans was borrowed by households (53%), trade

(12%) and industry (11%), while education held only 1% of the total loans issued as of 31 March

2017.

As at 31 March 2017 the Herfindahl-Hirschman Index amounted to 2,135, which implies that the

Georgian banking sector is highly concentrated.

Structure of banks in Georgia by loan volume, Q1 2017

53%

2%

11%

5%

12%

3%

2% 3%

4%

0% 2%

3%Households

Agriculture, Forestry, Fishing

Industry

Construction

Trade

Hotels and Restaurants

Transport and Communications

Financial Intermediation

Transactions in Real Estates, Researches

Education

Health Care and Social Services

Other services

*Analysis is done based on Loans Net of Provision (NBG)



reserved.

30.0%

70.0%

GEL Foreign Currency

*Analysis of the Structure of Deposits are based on NBG aggregate data of Deposits, which includes bank deposits.

Liabilities

As of 31 March 2017 the banking system total liabilities grew by 0.2%, compared with the same figure as of

31 March 2016, to reach GEL 25.44 billion, of which 68.3% are deposits.

Deposits

As of 31 March 2017 non-bank deposits represented 63.2% of the total liabilities of the banking sector (GEL

16.1 billion).

As of 31 March 2017 70.0% of the deposits were placed in foreign currencies, while the remaining 30.0% in

national currency. 44.2% of the total deposits were time deposits, while current accounts and demand

deposits represented 32.4% and 23.4% of the total deposits respectively.

Around 80.0% of the time deposits were placed in foreign currencies, while 62.1% of total of current

accounts and demand deposits were placed in foreign currency.

Appendix 2 Sector Insights (continued)

Structure of deposits

Equity

At the end of the Q1 2017 the total equity to total assets ratio was 14.5%, which is slightly higher compared

to the same ratio of 2016 (14.4%).

As of 31March 2017 TBC Bank had the highest level of equity - about GEL 1.48 billion, which is 34% of the

total equity of the banking system. Ziraat Bank had the lowest level – GEL 0.022 billion (0.5% in total equity).

76% of the total equity of the banking system belonged to the top five banks (ranked by the equity) as of 31

March 2017.

Interest income

For the period the interest income amounted to GEL 0.65 billion. Eleven banks out of the seventeen

increased their interest income compared to the same period of 2016.

Profit/loss

Financial performance of the sector was positive during the first quarter of 2017. Comparing with the same

period last year, interest income, holding the highest share in the total income, rose by 11.1% and reached

GEL 0.65 billion. Total fee and commission income increased by 46.7% and amounted to GEL 0.95 billion,

while net profit of the banks for the first quarter was GEL 0.26 billion, 134.6% higher when compared with

the same period of 2016.

During the first quarter of 2017, 16 banks operating in Georgia were profitable. Only one bank incurred loss

after taxes.

32.4%

23.4%

44.2%

Current Accounts Demand Deposits Time Deposits



reserved.

Appendix 3Key Financial IndicatorsKey Indicators of the Financial Position as of 31.03.2017

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC Bank of Georgia 9,811,766 6,051,035 8,722,012 5,280,789 1,089,754 26,053

JSC TBC Bank 8,899,743 5,717,023 7,419,602 5,373,705 1,480,141 21,016

JSC Liberty Bank 1,613,923 774,692 1,417,959 1,239,678 195,964 43,840

JSC Bank Republic 1,945,332 1,428,590 1,647,490 675,248 297,842 76,031

JSC VTB Bank-Georgia 1,458,621 892,805 1,299,674 847,177 158,946 191,293

JSC ProCredit Bank 1,265,596 853,633 1,083,211 644,948 182,384 88,915

JSC Cartu Bank 1,179,169 834,862 981,514 627,908 197,655 114,430

JSC TeraBank 656,779 452,768 552,815 452,028 103,965 121,372

JSC BasisBank 905,578 592,855 732,540 552,246 173,038 16,057

JSC Finca Bank Georgia 274,820 211,290 240,475 94,631 34,345 20,214

JSC Halyk Bank Georgia 342,427 254,014 287,947 66,439 54,481 48,000

JSC PASHA Bank Georgia 263,740 108,321 161,111 38,320 102,629 103,000

JSC Isbank Georgia 312,479 190,537 281,728 88,695 30,751 30,000

JSC The International Bank of

Azerbaijan-Georgia 109,121 33,460 69,944 40,854 39,178 22,688

JSC Credo Bank 574,633 466,685 457,622 0 117,011 4,400

JSC ZIRAAT BANKASI

A.S. Tbilisi Branch 80,952 16,351 58,841 57,975 22,111 0

JSC Silk Road Bank 56,419 6,889 28,632 20,083 27,787 30,000

Total 29,751,099 18,885,810 25,443,116 16,100,722 4,307,983 957,308



reserved.

Appendix 3Key Financial Indicators (continued)Key Indicators of the Financial Results for the period ended 31.03.2017

GEL Thousands

Interest

Income

Net Interest

Income

Fee and

commission

income

Net fee and

commission

income

Provision

Expense

Net profit/

loss before

taxes

Net profit/

loss after

taxes

JSC Bank of Georgia 231,330 133,028 40,548 26,103 -20,208 135,890 118,359

JSC TBC Bank 174,730 99,654 46,332 27,044 9,792 69,141 66,517

JSC Liberty Bank 61,665 33,808 19,036 16,692 4,831 9,717 9,717

JSC Bank Republic 41,478 22,962 7,325 5,293 -1,952 24,630 21,650

JSC VTB Bank-Georgia 27,884 13,668 5,442 4,000 -4,137 11,616 10,224

JSC ProCredit Bank 20,001 11,601 2,495 524 -380 3,853 3,369

JSC Cartu Bank 21,618 12,980 1,250 -504 4,939 6,610 5,394

JSC TeraBank 14,072 6,872 1,984 928 -3,152 5,437 5,437

JSC BasisBank 17,782 10,803 1,352 607 15 8,783 7,984

JSC Finca Bank Georgia 13,141 8,284 1,514 -158 1,790 287 283

JSC Halyk Bank Georgia 7,635 5,592 1,854 831 -343 4,393 3,793

JSC PASHA Bank Georgia 4,845 3,677 34 -11 277 1,424 1,424

JSC Isbank Georgia 4,729 1,907 212 -20 431 -196 -298


Azerbaijan-Georgia 1,538 1,365 301 201 -691 1,754 1,754

JSC Credo Bank 27,100 17,662 10,727 8,514 5,886 2,185 1,680

JSC ZIRAAT BANKASI

A.S. Tbilisi Branch 832 754 252 104 43 483 483

JSC Silk Road Bank 894 678 232 181 -256 15 15

Total 671,277 385,296 140,891 90,329 -3,115 286,021 257,785



reserved.

Appendix 3Key Financial Indicators (continued)Key Indicators of the Financial Position as of 31.03.2016

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC Bank of Georgia 8,292,994 5,181,875 7,375,674 4,736,351 917,320 26,659

JSC TBC Bank 6,365,523 4,495,146 5,243,996 3,885,951 1,121,527 20,022

JSC Liberty Bank 1,531,461 711,394 1,393,447 1,228,100 156,362 43,840

JSC Bank Republic 1,654,097 1,219,492 1,409,512 743,987 244,584 76,031

JSC VTB Bank-Georgia 1,299,879 820,491 1,157,602 770,757 142,276 191,293

JSC ProCredit Bank 1,169,763 889,540 1,018,322 620,244 151,441 88,915

JSC Cartu Bank 1,205,163 904,980 981,155 620,893 224,008 114,430

JSC TeraBank 683,025 491,297 579,525 484,434 103,501 111,000

JSC BasisBank 724,041 450,751 568,537 440,807 155,504 16,013

JSC Finca Bank Georgia 240,347 183,549 205,494 49,151 34,853 20,214

JSC Halyk Bank Georgia 265,653 208,409 218,338 47,993 47,314 48,000

JSC PASHA Bank Georgia 267,679 101,462 171,989 58,883 95,689 103,000

JSC Isbank Georgia 219,681 150,814 187,788 63,680 31,894 30,000


Azerbaijan-Georgia 105,193 72,174 74,774 15,701 30,419 22,688

JSC ZIRAAT BANKASI

A.S. Tbilisi Branch 62,346 12,742 42,250 38,848 20,096 0

JSC Silk Road Bank 61,000 15,060 31,738 21,476 29,263 30,000

JSC Progress Bank* 243,087 89,186 228,120 135,529 14,967 17,475

JSC Capital Bank* 63,844 21,223 61,168 44,564 2,675 17,120

Total 24,454,775 16,019,586 20,949,428 14,007,348 3,523,695 976,699

* License For Banking Activity Cancelled during 2016



reserved.

Appendix 3Key Financial Indicators (continued)Key Indicators of the Financial Results for the period ended 31.03.2016

GEL Thousands

Interest

Income

Net Interest

Income

Fee and

commission

income

Net fee and

commission

income

Provision

Expense

Net profit/

loss before

taxes

Net profit/

loss after

taxes

JSC Bank of Georgia 198,256 108,024 33,005 21,447 63,549 28,703 26,753

JSC TBC Bank 157,172 91,984 31,339 16,352 30,277 40,325 36,707

JSC Liberty Bank 57,605 28,119 12,709 10,651 3,636 4,343 4,343

JSC Bank Republic 40,223 23,379 7,309 5,715 3,599 15,263 13,113

JSC VTB Bank-Georgia 26,137 12,868 5,098 3,579 2,679 3,725 3,491

JSC ProCredit Bank 25,254 16,534 3,168 1,547 3,142 5,987 5,089

JSC Cartu Bank 23,566 14,170 1,376 -223 3,279 7,849 6,342

JSC TeraBank 16,387 6,527 1,648 733 2,875 1,279 1,279

JSC BasisBank 16,331 9,722 1,044 217 -83 7,930 7,078

JSC Finca Bank Georgia 13,109 9,145 1,416 -190 1,984 474 358

JSC Halyk Bank Georgia 6,736 4,420 510 318 1,989 878 817

JSC PASHA Bank Georgia 5,920 3,674 29 -7 -282 1,848 1,848

JSC Isbank Georgia 3,869 1,910 206 17 -999 1,532 1,509


Azerbaijan-Georgia 2,237 1,307 412 335 -150 1,614 1,614

JSC ZIRAAT BANKASI

A.S. Tbilisi Branch 815 777 247 118 30 474 474

JSC Silk Road Bank 997 685 102 46 208 -691 -695

JSC Progress Bank* 3,561 1,488 223 96 243 -482 -412

JSC Capital Bank* 1,975 1,857 1,499 330 -67 1,051 1,051

Total 600,150 336,591 101,340 61,082 115,909 122,101 110,759

* License For Banking Activity Cancelled during 2016



reserved.

Appendix 4

Bank Contact Details

JSC Bank of Georgia

CEO

Kakhaber Kiknavelidze

Members of Board of Directors:

Levan Kulijanishvili

Mikheil Gomarteli

Archil Gachechiladze

Giorgi Chiladze

Alexander Katsman

Tornike Gogichaishvili

Ramaz Kukuladze

David Tsiklauri

Address: 29a Gagarini Street

Tel./Fax: (995 32) 2 444 44, 514060

E-mail: [email protected]

Website: www.BOG.ge

SWIFT: BAGAGE22

JSC Credo Bank

CEO

Zaal Pirtskhelava


Johannes Mainhardt (Germany)

Zaza Tkeshelashvili

Address: 9 Asatiani Street

Tel./Fax: +995 (32) 242 4242


Website: www.credo.ge

Swift: N/A

JSC CARTU BANK

CEO

Nato Khaindrava


David Galuashvili

Zurab Gogua

Beqa Kvaratskhelia

Givi Lebanidze

Address: 39a Chavchavadze

Tel./Fax:995 32 292 55 92

(995 32) 2250 580

Website: www.cartubank.ge

SWIFT: CRTUGE22

JSC Liberty Bank

CEO

Aleksi Khoroshvili


Zurab Tsulaia

Aleksander Liparteliani

Armen Matevosyan

David Verulashvili

David Melikidze

Taras (Tato) Chantladze

Address: 74 Chavchavadze Street

Tel./Fax: 0322 55 55 00


Website: www.libertybank.ge

SWIFT: LBRTGE22

Basisbank

CEO

David Tsaava


Lia Aslanikashvili

David Kakabadze

Levan Gardaphkhadze

Li Hui

Address: 1, Ketevan Tsamebuli Ave.

Tel./Fax: (995 32) 2 922 922


Website: www.basisbank.ge

SWIFT:CBASGE22

JSC International Bank of Azerbaijan-

Georgia

CEO

Emil Abasbayli


Tamar Gogolashvili

Shalva Goduadze

Address: 1 Leonidze Street

Tel./Fax: +995 322 29 22 22


Website: www.ibaz.ge

SWIFT: IBAZGE22

JSC Halyk Bank Georgia

CEO

Nikoloz Geguchadze


Konstantin Gordeziani

Shota Chkoidze

Marina Tankarova

Nino Meparishvili

Address: Shartava str. 40

Tel./Fax: +995 32 2 24 07 07 ; +995 32 2

36 53 98


Website: www.hbg.ge

SWIFT: HABGGE22

JSC FINCA Bank Georgia

CEO

Vusal Verdiyev


Giorgi Mirotadze

Giorgi Samadashvili

Address: Vazha Pshavela Ave 71

Tel./Fax: 2244949


Website: www.finca.ge

SWIFT: FGEOGE22

JSC Isbank Georgia

CEO

Ozan gur


Mehmet Ihsan Aqhun

Ahmed Naji Narshaf

Address: Agmashenebeli Ave.140b

Tel./Fax: +995 32 231 05 15

E-mail: N/A

Website: www.isbank.ge

SWIFT: ISBKGE22



reserved.

Appendix 4

Bank Contact Details (continued)

JSC ProCredit Bank

CEO

Ketevan Khuskivadze


Alex Matua

Davit Gabelashvili

Natia Tkhilaishvili

Address: 21 Al. Kazbegi Ave

Tel./Fax: (+995 32) 220 2222 (+995 32)

220 2223


Website: www.procreditbank.ge

SWIFT: MIBGGE22

JSC Pasha Bank Georgia

CEO

Shahin Mammadov


Chingiz Abdullayev

George Japaridze

Address: 15 Rustaveli Avenue

Tel./Fax: +995 32 215 88 11 +995 32

215 88 22


Website: www.pashabank.ge

SWIFT: PAHAGE22

JSC Silk Road Bank

CEO

Alexander Dzneladze


Natia Merabishvili

Adress: 2 Saarbrucken Square

Tel./Fax: ( +995 32 ) 224 22 42

( +995 32) 224 22 22


Website: www.silkroadbank.ge

SWIFT: DISNGE22

JSC TBC bank

CEO

Vakhtang Butskhrikidze


Paata Ghadzadze

Vano Baliashvili

Nino Masurashvili

Giorgi Tkhelidze

Giorgi Shagidze

David Chkonia

Nikoloz Kurdiani

Address: Marjanishvili Street 7

Tel./Fax: +(995 32) 227 27 27


Website: www.tbcbank.ge

SWIFT: TBCBGE22

JSC Terabank (previously Kor

Standard Bank)

CEO

Thea Lortkipanidze


Vakhtang Khutsishili

Zurab Azarashvili

Temur Abuladze

Sophia Jugeli

Address: 3. K.Tsamebuli Av.,0103

Tel. : +995 32 2 55 00 00


Website: www.terabank.ge

SWIFT: TEBAGE2222

T.C. ZIRAAT BANKASI A.S. TBILISI

BRANCH

CEO

Mehmet Ucar

Members of Board of Directors

BOGACHAN SEFIK KARAMURSEL

HALUK CENGIZ

MURAT YILDIRIM

Address: Aghmashenebeli Ave. No:

61, Tbilisi, Georgia

Tel./Fax: (00 995 32) 294 37 04

294 37 14


Website: www.ziraatbank.com

SWIFT: TCZBGE22

JSC VTB Bank (Georgia)

CEO

Archil Kontselidze


Mamuka Menteshashvili

Niko Chkhetiani

Valerian Gabunia

Vladimer Robakidze

Irakli Dolidze

Address: 14, G. Chanturia St., 0108

Tbilisi, Georgia

Tel: (995 32) 224 24 24

Fax: (995 32) 293 32 91


Website: www.vtb.ge

SWIFT: UGEBGE22



reserved.

Glossary of Terms

Herfindahl-Hirschman Index

Calculated by squaring the market share of each firm competing in the market and then summing

the resulting numbers. Index below 1,000 indicates an unconcentrated index; index between 1,000

and 1,800 indicates moderate concentration; index above 1,800 indicates high concentration.

Equity to assets

Calculated as the total equity divided by the total assets.

Return on Assets

The ratio of annualized net profit to average annual assets.

Return on Equity

The ratio of annualized net profit to average annual share capital.

Net Interest Margin

The ratio of annualized net interest income to annual average assets.

Tier 1 Ratio

The ratio of Tier 1 Capital of the bank defined according to the rule set by NBG to risk weighted

assets. Required minimum by the National Bank of Georgia – 7.2%.

Capital Adequacy Ratio

The ratio of regulatory Capital of the bank defined according to the rule set by NBG to risk

weighted assets. Required minimum by the National Bank of Georgia – 10.8%

Liquidity Ratio

Calculated as the liquid assets divided by the total assets.

Andrew Coxshall

Managing Partner

KPMG in Georgia

T + 995 32 295-07-19

E [email protected]

Irina Gevorgyan

Director

Head of Advisory

T + 995 32 295-07-19

E [email protected]

Contacts

The contacts at KPMG in connection

with this report are:

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of

Georgia, a member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (“KPMG

International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of

KPMG International.

The information contained herein is of a general nature and is not

intended to address the circumstances of any particular individual or

entity. Although we endeavor to provide accurate and timely

information, there can be no guarantee that such information is

accurate as of the date it is received or that it will continue to be

accurate in the future. No one should act on such information without

appropriate professional advice after a thorough examination of the

particular situation.

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