January 2010
GROWTH AT THE RIGHT PRICELSE: BGEO / GSE:GEB
JSC Bank of Georgia Q3 and YTD 2009 results overview
Page 2January 2010
Introduction to Bank of Georgia
Investment highlightsUndisputed leader of Georgian financial services industry with market-leading retail and corporate banking franchiseStrongly positioned to benefit from US$4.5 bln international assistance package pledged to Georgia by international donors in the aftermath of Russia-Georgia conflict in August 2008Disciplined capital management, low leverage, conservative liquidity position, no exposure to sub-primeSophisticated management team with Western banking & finance backgroundTransparency and good governance, over 89% institutionally owned. Supervisory Board includes two large institutional shareholders and two independent directors
The leading universal bank in Georgia
Leading corporate bank with approximately 81,000 legal entities and over 150,000 current accountsLeading card-processing, leasing, insurance, wealth management and asset management services providerThe only Georgian entity with credit ratings from all three global rating agencies
S&P: ‘B/B’ – at the sovereign ceilingFitch Ratings: ‘B/B’Moody’s: ‘B3/NP (FC)’ & ‘Ba3/NP (LC)’
Listed on the London Stock Exchange (GDRs) and Georgian Stock ExchangeMarket Cap (LSE) US$ 225 mln as of 6 November 2009Approximately 95% free float
Issue of the first ever Eurobonds in GeorgiaBloomberg: BKGEO; 5 year, 9%, US$200 mlnB/Ba2/B (composite B+)
No.1 by assets (33.6%),(1) loans (31.1%),(1) client deposits (29.3%)(1) and equity (40.4%)(1)Leading retail banking, with top brand, best distribution network and broadest range of services of any bank in Georgia
416394380ATMs
151140140Branches
639,000+590,000+569,000+Cards Outstanding
866,000+880,000+895,000+Retail Accounts
200820092009
December June September
January 2010
JSC Bank of Georgia Q3 2009 & 9 months 2009 results overview
Page 4January 2010
Q3 2009 & YTD 2009 P&L results highlights
11.6%18.2%14.3%17.8%20.4%Tier I Capital Adequacy Ratio (NBG)37.1%15.5%15.2%18.4%21.2%Total Capital Adequacy Ratio (NBG)
Q3 2008Millions unless otherwise noted Q3 2009 Q2 2009 Growth Growth 1
Bank of Georgia (Consolidated, IFRS Based) GEL US$ GEL US$ Q-O-Q GEL US$ Y-O-Y(Unaudited) (Unaudited) (Unaudited)
Net Interest Income 48.9 29.2 49.5 29.8 -1.1% 58.9 41.9 -16.9%Net Non-Interest Income 30.4 18.1 31.1 18.8 -2.4% 27.1 19.3 12.3%Total Operating Income (Revenue)2 79.3 47.3 80.6 48.6 -1.6% 85.9 61.1 -7.7%Recurring Operating Costs 45.0 26.8 46.3 27.9 -2.9% 49.6 35.3 -9.4%Normalized Net Operating Income3 34.3 20.5 34.3 20.7 0.3% 36.3 25.8 -5.4%Net Non-Recurring Income (Costs) (1.9) (1.1) (0.3) (0.2) NMF (2.6) (1.9) NMFProfit Before Provisions 32.4 19.3 34.0 20.5 -4.5% 33.7 24.0 -3.7%Net Provision Expense 30.0 17.9 40.7 24.5 -26.3% 103.2 73.4 -70.9%Net Income/ (Loss) 2.6 1.6 (4.3) (2.6) NMF (59.0) (42.0) NMFTier I Capital Adequacy Ratio (BIS) 25.4% 23.9% 6.0% 24.7% 2.7%Total Capital Adequacy Ratio (BIS) 34.6% 34.2% 1.3% 25.3% 37.0%
11.6%18.2%20.4%Tier I Capital Adequacy Ratio (NBG)37.1%15.5%21.2%Total Capital Adequacy Ratio (NBG)
Millions, unless otherwise noted 9 months 2009 9 months 2008 Growth 1
Bank of Georgia (Consolidated, IFRS Based) GEL US$ GEL US$ Y-O-Y(Unaudited) (Unaudited)
Net Interest Income 150.8 89.9 164.5 117.0 -8.3%Net Non-Interest Income 90.8 54.1 88.5 63.0 2.6%Total Operating Income (Revenue)2 241.6 144.1 252.9 180.0 -4.5%Recurring Operating Costs 135.9 81.1 143.0 101.8 -4.9%Normalized Net Operating Income3 105.7 63.0 110.0 78.3 -3.9%Net Non-Recurring Income (Costs) (2.4) (1.4) 9.3 6.6 -126.2%Profit Before Provisions 103.2 61.6 119.2 84.9 -13.4%Net Provision Expense 102.8 61.3 117.8 83.9 -12.8%Net Income/ (Loss) 3.4 2.0 1.3 0.9 161.2%Tier I Capital Adequacy Ratio (BIS) 25.4% 24.7% 2.7%Total Capital Adequacy Ratio (BIS) 34.6% 25.3% 37.0%
1 Compared to the same period in 2008; growth calculations based on GEL values.2 Revenue includes Net Interest Income and Net Non-Interest Income.3 Normalized for Net Non-Recurring Costs.
Page 5January 2010
September 2009 Balance Sheet results highlights
13.6422.7713.6922.70 13.69 22.96 Book Value Per Share, GEL & US$
426.3711.8428.2 709.9 428.4 718.5 Shareholders’ Equity
1,482.02,474.91,325.7 2,197.9 1,348.5 2,261.6 Total Liabilities
696.31,162.8610.0 1,011.4 547.7 918.6 Borrowed Funds
710.11,185.9643.2 1,066.4 731.0 1,225.9 Total Deposits
1,908.23,186.81,753.9 2,907.8 1,777.0 2,980.2 Total Assets
1,144.71,911.61,055.3 1,749.6 989.4 1,659.3 Net Loans
(Unaudited)(Unaudited)(Unaudited)
US$GELUS$GELUS$GELBank of Georgia (Consolidated, IFRS)
Q1 2009Q2 2009Q3 2009Millions, unless otherwise noted
0.8%1.1%Book Value Per Share,
0.9%1.2%Shareholders’ Equity
-8.6%2.9%Total Liabilities
-21.0%-9.2%Borrowed Funds
3.4%15.0%Total Deposits
-6.5%2.5%Total Assets
-13.2%-5.2%Net Loans
Q3/Q1Q3/Q2
ChangeChange
Page 6January 2010
Composition of revenue in Q3 2009 & 9 Months 2009
Composition of Revenue, 9 Months 2009
Revenue by segments, Q3 2009Composition of Revenue, Q3 2009
Revenue by segments, 9 Months 2009
Net interest income 61.7% of total revenue
GEL 48.9 mln (-1.1% q-o-q)
Net income from documentary operations 2.9% of total revenue.
GEL 2.3 mln(+30.6% q-o-q)
Net foreign currency related income 8.2% of
total revenue.GEL 6.5 mln(-8.4% q-o-q)
Net Fee and Commision Income13.3% of total
revenue.GEL 10.5 mln(-9.3% q-o-q)
Net Other Non-Interest Income 14.0% of total
revenue.GEL 11.1 mln(+3.5% q-o-q)
BoG Standalone
77.6% of Total Revenue
GEL61.5 mln(-1.3% q-o-q)
Ukraine 6.6% of Revenue
GEL 5.3mln(-5.9% q-o-q)
Belarus 2.6% of Revenue
GEL 2.1mln(+22.6% q-o-q)
Aldagi BCI 8.0% of Revenue
GEL6.3mln(+1.9% q-o-q)
Other 5.2% of Revenue
GEL 4.1 mln(-13.9% q-o-q)
Net interest income 62.4% of total revenue
GEL 150.8 mln (-8.3% y-o-y)
Net income from documentary operations 2.6% of total revenue .
GEL 6.3 mln(+26.4% y-o-y)
Net foreign currency related income 9.2% of
total revenue.GEL 22.3 mln(-32.5% y-o-y)
Net Fee and Commision Income13.8% of total
revenue.GEL 33.2 mln(-8.2% y-o-y)
Net Other Non-Interest Income 12.0% of total
revenue.GEL 28.9 mln
(+103.7% y-o-y)
BoG Standalone 78.8% of Revenue
GEL 190.4 mln(-8.9% y-o-y)
Ukraine 6.7% of Revenue
GEL 16.3 mln(-25.8% y-o-y)
Belarus 2.6% of Revenue
GEL 6.2 mln(+199.1% y-o-y)
Aldagi BCI 6.6% of Revenue
GEL 15.9mln(+145.1% y-o-y)
Other 8.5% of Revenue
GEL 12.7 mln(-4.8% y-o-y)
Consolidated
Total Revenue: GEL 79.3 million in Q3 2009 and GEL 241.6 million in 9 Months 2009
Page 7January 2010
Analysis of revenue
Net fee & commission income & Income from documentary operations
Net foreign currency related incomeRevenue growth
Other non-interest income
26.0 30.9 33.542.8
49.8 55.8 58.9 56.4 52.4 49.5 48.9
15.0
21.3 22.7
25.3
31.330.3 27.1 30.2
29.3 31.1 30.4
0
10
20
30
40
50
60
70
80
90
100
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Net Interest Income Net Non-Interest Income
1.4 2.1-0.1
1.6 1.7 2.5 3.2 3.05.1 4.91.4
1.0
1.3 1.60.4 0.3
1.9
2.20.6 0.2
0.2
3.02.4
-0.4 -0.4 -1.1-3.4
0.0 -0.5
3.3 1.9
2.63.3
4.7
3.4
5.8
3.6
3.7 4.6
2.1
1.00.5
1.3
0.1
0.3
0.2
1.8
0.10.1
0.3
-0.1
1.0
-6
-4
-2
0
2
4
6
8
10
12
14
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Net Insurance Income Brokerage Income Asset Management Income Realized Net Investment Gains Other
9.4 8.87.1 6.5
4.3
6.1 6.2
10.1
13.2
10.4
14.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Consolidated
5.9 5.6 6.9 7.610.2 10.2 10.9
6.1
11.1 11.6 10.50.7 1.3
1.8 1.9
1.4 1.9 1.7
1.4
2.3 1.8 2.3
02468
10121416
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Net Fee & Commision Income Net Income From Documentary Operations
Page 8January 2010
Analysis of recurring operating costs
Recurring operating cost structure, 9 months 2009
Recurring operating cost structure by segments, Q3 2009
Recurring operating cost structure, Q3 2009
Recurring operating cost structure by segments,9 months 2009
Pe rsonnel cotsts 49.6% of total re curring costs
GEL 22.3 mln(-3.8% q-o-q)Se l ling, Ge neral &
Administrative C osts 23.4% of total recurring
costsGEL 10.5 mln(+5.5 q-o-q)
De pre ciation &amortization 14.0% of
total re curring costsGEL 6.3 mln
(-4.0% q-o-q )
Procurme nt & O pe rations Support C osts 6.6% ovf total
recurring costsGEL 3.0 mln
(-24.0% q-o-q)
O the r O pe rating C osts 6.3% of total recurring
costsGEL 2.9 mln
(+5.9% q-o-q)
Other Operating Costs 6.2% of total
recurring costsGEL 8.4 mln
(+137.8% y-o-y)
Procurment & Operations Support Costs 7.2% ovf total
recurring costsGEL 9.8 mln
(-0.9% y-o-y )Depreciation
&amortization 13.3% of total recurring
costsGEL 18.1 mln
(+27.7% y-o-y )Selling, General &
Administrative Costs 23.7% of total
recurring costsGEL 32.2 mln(-5.4% y-o-y )
Personnel cotsts 49.7% of total
recurring costsGEL 67.5 mln(-17.0% y-o-y)
BoG S tandalone65.1% of Total Recurring Costs
GEL 88.6 mln(-5.7% y-o-y)
BG Bank10.4% of Total Recurring Costs
GEL 14.2 mln(-32.5% y-o-y)
BNB3.2% of Total Recurring CostsGEL 4.4 mln(+235.7% y-o-y)
Aldagi BCI7.7% of Total Recurring CostsGEL 10.5 mln(+58.0% y-o-y)
Other 13.4% of Total Recurring Costs GEL 18.3 mln (-9.2% y-o-y)
BoG Standalone66.9% of Total Recurring
CostsGEL 30.1 mln(+1.3% q-o-q)
BG Bank8.7% of Total Recurring
CostsGEL 3.9 mln
(-14.3% q-o-q)
BNB3.2% of Total Recurring CostsGEL 1.5 mln(-0.5% q-o-q)
Aldagi BCI8.2% of Total Recurring CostsGEL 3.7 mln(-7.1% q-o-q)
Other 12.9% of Total Recurring Costs GEL 5.8 mln (-12.2% q-o-q)
Consolidated
Total recurring operating costs: GEL 45.0 million in Q3 2009 (-3% q-o-q; -9% y-o-y) and GEL 135.9 mln in 9 months 2009 (-5% y-o-y)
Page 9January 2010
Analysis of recurring operating costs cont’d
Cost/Income ratio
Personnel costsEmployees
Normalized net operating income, Profit before provisions
821
824
778
789
786
757
707
617
2,692
3,056
3,619
3,853
2,741
2,692
2,660
2,663
4,459
4,926
5,909
6,165
4,979
4,989
4,914
4,798
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
Q3 2009
BG Bank BoG Standalone Group Consolidated
53.4%49.9%
55.5%
50.0%
60.7%
42.2%50.5%
116.9%
76.0%
35.7%
91.5%
74.7%
62.8%
80.4%
66.6%
42.2%
44.4%52.9%
60.8%
90.0%
53.0%57.8% 59.1%
50.1% 46.8% 49.6%
56.6%
45.1% 41.0%
50.8%
109.2%
68.0%
100.1%
59.1% 55.6%64.5%
61.5%
84.6%
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009Cost/Income Ratio, ConsolidatedCost Income Ratio, Bank of Georgia StandaloneCost/Income Ratio, BG BankCost/Income Ratio, BNB
17.8
25.727.3
23.1 22.0 23.2 22.3
28.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Consolidated
34.336.8
32.437.138.736.337.136.6
34.3
8.7
33.7
40.545.1
34.0
0.05.0
10.015.020.025.030.035.040.045.050.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Normalised Net Opearting IncomeProfit Before Provisions
Page 10January 2010
NIM & loan yields
CB loan yield (annualized)(Adjusted for provisions)
RB & WM loan yield (annualized)(Adjusted for provisions)
Net Interest Margin (annualized)
Blended loan yield (annualized)*(Adjusted for provisions)
9.1% 10.3%9.6%
17.2%
8.1%
8.9%
9.8%10.1%
9.3% 9.0% 9.1%
6.5%7.1% 7.7%
8.9%
6.2%5.6%
9.6%
7.5%8.6% 9.0%
9.8%9.9%
10.0%
9.3%8.4%
10.5%11.7% 13.0%
9.5%
9.3%
10.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Net Interest Margin, Group Consolidated Net Interest Margin, BG Bank
Net Interest Margin, BoG Standalone Net Interest Margin, BNB
13.5%14.4% 14.5% 14.0% 14.4% 15.0% 15.6% 15.2% 15.9%
14.8% 15.2%
5.0%
9.0%
13.0%
17.0%
21.0%
25.0%
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
24.8% 24.7% 24.3%21.6% 22.2% 21.8% 20.6% 20.4% 20.1%
23.2% 22.3%
10.0%
16.0%
22.0%
28.0%
34.0%
40.0%
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
21.2% 21.0% 20.6% 20.6% 20.9% 20.4% 19.6% 19.1% 19.3%20.4%20.7%
10.0%
16.0%
22.0%
28.0%
34.0%
40.0%
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Consolidated
* Based on consolidated data, including Corporate Center where all loan recoveries are allocated
Page 11January 2010
Composition of assets as at 30 September 2009Consolidated
472.1420.2379.4482.4
299.9284.2301.8291.2
1,659.31,749.62,080.61930.6
383.0311.5
99.6278.6 165.6142.4
397.6171.5
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q 3 2009Q2 2009YE 2008Q3 2008
Cash & Equivalents
Loans & Advances To CreditInstitutions
Net Loans
Property & Equipment
Other Assets
GEL mln
5.4% of total assets
8.8% of total assets
61.2% of total assets
9.2% of total assets
15.4 % of total assets
4.9% of total assets
10.7% of total assets
60.2% of total assets
9.8 % of total assets
14.4% of total assets
12.2% of total assets
3.1% of total assets
63.8% of total assets
11.6% of total assets
9.3% of total assets
2,9802,908
3,259
3,154
15.7% of total assets
10.1% of total assets
55.7% of total assets
12.9% of total assets
5.6% of total assets
GEL million 30-Sep-08 YE 2008 30-Jun-09 30-Sep-09Available-For-Sale & Trading Securities 50.6 33.7 28.4 30.0Treasuries And Equivalents 18.1 8.3 - 36.6Other Fixed Income Instruments 16.5 14.6 59.1 67.1Insurance Related Assets 46.6 42.0 47.4 45.6Investments In Other Business Entities & Investment Property 104.2 64.0 80.9 75.4Intangible Assets Owned & Goodwill 144.0 152.5 147.2 147.9Tax Assets, Current And Deferred 0.9 12.8 8.3 12.9Prepayments And Other Assets 101.5 51.5 48.9 56.6Other Assets 482.4 379.4 420.2 472.1
Note: Net loans include Net finance lease receivables
Page 12January 2010
Composition of gross loan book as at 30 September 2009Consolidated
CB, 821 CB, 796 CB, 790 CB, 760
RB & WM, 897 RB & WM, 867
BG Bank, 255
BG Bank, 265 BG Bank, 257
BG Bank, 194
BG Bank, 199
BG Bank, 190 BG Bank, 186
BNB, 35
BNB, 36
BNB, 30
BNB, 27 BNB, 26
CB, 857 CB, 958 CB, 881
RB & WM, 974 RB & WM, 1050 RB & WM, 976 RB & WM, 965 RB & WM, 790
0
500
1,000
1,500
2,000
2,500
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
12% of gross loans
47% of gross loans
39% of gross loans
1 3% of gross loans
46% of gross loans
42% of gross loans
14% of gross loans
4 3% of gross loans
44% of grossloans
2% of gross loans
2% of gross loans
9% of gross loans
47% of gross loans
42% of gross loans
10% of gross loans
48% of gross loans
44% of gross loans
1% of gross loans
42% of gross loans
47% of gross loans
10% of gross loans
1% of gross loans
41% of gross loans
47% of gross loans
10% of gross loans
1% of gross loans
Georgia: RB & WM, CB
Ukraine: BG Bank
Belarus: BNB
Gross loan book Q3 2009: GEL 1,833.1 million
Page 13January 2010
Securities portfolio as at 30 September 2009Breakdown of securities investmentsBreakdown of securities portfolio,
30 September 2009
Consolidated
Equities, 79.5%
Local debt, 20.5%
Total securities portfolio: GEL 30 million
GEL ‘000s Debt Equity TotalGTS - 1,627 1,627 LC - 17,532 17,532 BG Bank (Ukraine) 6,146 - 6,146 BNB (Belarus) - - -Other - 4,730 4,730 Total 6,146 23,889 30,036
Page 14January 2010
Liabilities breakdown as at 30 September 2009Consolidated
43.441.179.0122.9
1182.51025.3
1,193.11202.0
918.61011.4
1,137.8947.8
117.1120.1
130.2142.2
718.5709.9
718.8739.3
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q3 09Q2 09YE 2008Q3 08
GEL mln
Total equity
Other Liabilites
Borrowed Funds
Client Deposits
Deposits And Loans From Banks
22% of total liabilities + equity
4% of total liabilities + equity
35% of total liabilities + equity
37% of total liabilities + equity
2% of total liabilities + equity
24% of total liabilities + equity
4% of total liabilities + equity
35% of total liabilities + equity
35% of total liabilities + equity
2% of total liabilities + equity
23% of total liabilities + equity
5% of total liabilities + equity
30% of total liabilities + equity
38% of total liabilities + equity
4% of total liabilities + equity
2,9802,908
3,2593,154
1% of total liabilities + equity
40% of total liabilities + equity
31% of total liabilities + equity
4% of total liabilities + equity
24% of total liabilities + equity
Q3 08 YE 2008 Q2 09 Q3 09Issued Fixed Income Securities 4.7 - 0.2 0.7Insurance Related Liabilities 57.7 55.4 59.7 52.2Tax Liabilities, Current And Deferred 26.7 24.4 19.4 22.8Accruals And Other Liabilities 53.1 50.4 40.8 41.4Other liabilities 142.2 130.2 120.1 117.1
Total liabilities 30 September 2009: GEL 2,262 million
Page 15January 2010
Client deposits breakdownConsolidated
CB , 603 CB , 606CB , 497
CB , 579
BG Bank, 216
BG Bank, 180
BG Bank, 121
BG Bank, 115
BG Bank, 117
BNB , 16
CB , 652 CB , 681 CB , 575
RB & WM, 458 RB & WM, 534 RB & WM, 429 RB & WM, 432RB & WM, 381 RB & WM, 397
RB & WM, 469
BG Bank, 171
BG Bank, 127
BNB , 27 BNB , 31BNB , 25
BNB , 18
0
200
400
600
800
1,000
1,200
1,400
1,600
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
CB RB & WM BG Bank BNB
14% of client deposits
36% of client deposits
48% of client deposits
16% of client deposits
35% of client deposits
49% of client deposits
13% of client deposits
38% of client deposits
49% of client deposits
11% of client deposits
36% of client deposits
50% of client deposits
3% of client deposits
11% of client deposits
34% of client deposits
1,3261,395
1,2021,193
1,133
2% of client deposits
11% of client deposits
39% of client deposits
48% of client deposits
1,025
1,183
53% of client deposits
2% of client deposits
2% of client deposits
+15%
50% of client deposits
39% of client deposits
10% of client deposits
1% of client deposits
Client deposits Q3 2009: GEL 1,183 million
Note: RB & WM client deposits include deposits at BG Capital
Georgia: RB & WM, CB
Ukraine: BG Bank
Belarus: BNB
January 2010
Capital adequacy & wholesale funding
Page 17January 2010
Capital adequacy
Risk-weighted assets BIS vs. NBG
NBG capital adequacy ratios, BoG standaloneBIS capital adequacy ratios, BoG consolidated
Net loans/deposits & loans/(deposits+equity), BoG consolidated
25.2% 25.0% 23.9% 25.4%22.2%22.5%24.7%
34.6%34.2%31.7%27.3%25.3%25.8%25.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Tier I Cap ital Adequacy Ratio Total Capital Adequacy Ratio
2,7682,559 2,549
3,458 3,3023,041
1,031
2,593 2,7342,516
2,941
1,724
3,100
3,605
3,1322,720
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Q1 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
BIS NBG
161.2% 164.1%
135.4%
85.3%
132.6% 135.7% 145.7%163.6%
85.8% 89.5% 93.5% 104.5% 100.7% 98.5%
0.0%
40.0%
80.0%
120.0%
160.0%
200.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Net Loans/Total Deposits Net Loans/(Total Deposits+Equity)
18.3%15.8%
18.2%16.6% 16.4%
17.8%20.4%
16.3% 15.1% 15.5% 13.5%17.4% 18.4%
21.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio
Page 18January 2010
International borrowings
International borrowings repayment schedule
International borrowings - fixed vs. floating rates, 30 September 2009
Selected international loans
International borrowings by currencies, 30 September 2009
Note: Depicts final maturity dates Excluding credit lines as part of documentary business
35,059 74,000
483,448
114,44014,9080.5%
1.3%
17.6%
2.7%4.2%
-
100,000
200,000
300,000
400,000
500,000
600,000
2009 2010 2011 2012 20130.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
US$, 99.7%
Euro, 0.3%
Fixed interest rate, 28.1%
Floating interest rate, 71.9%
Key Lenders Principle Amount
Outstanding as at 30 September 2009
Maturity
Syndicated Loan arranged by Citi and ADB, 3rd Tranche US$ 16.7 million 2010Eurobonds US$ 200.0 million 2012Senior Term Loan from FMO US$ 10.3 million 2014Senior Term Loan from World Business Capital US$ 6.9 million 2016Subordinated Loan from Thames River Capital (Call in 2011) US$ 5.0 million 2016Subordinated Loan from HBK Investments (Call in 2012) US$ 15.0 million 2017Subordinated Loan from Merrill Lynch (Call in 2012) US$ 35.0 million 2017Senior Term Loan from World Business Capital (GLC) US$ 4.9 million 2017Subordinated loan from FMO and DEG (Call in 2013) US$ 30.0 million 2018Senior Loan from OPIC US$ 29.0 million 2018Subordinated Loan from OPIC US$ 10.0 million 2018Senior Term Loan from IFC US$ 50.0 million 2013Senior Term Loan from EBRD US$ 50.0 million 2014Subordinated Loan from IFC US$ 24.0 million 2019Subordinated Loan from EBRD US$ 24.0 million 2019Convertible Loan from IFC US$ 26.0 million 2019Convertible Loan from EBRD US$ 26.0 million 2019
Other, USD denominated US$ 4.8 million NMF Other, EUR denominated EUR 1.0 million NMF
Total US$ 569.1 million
January 2010
Business overview
Page 20January 2010
Group structure
Page 20
BoG Group
Rep
ortin
g L
ines
* Formerly Galt & Taggart SecuritiesNote: Following the sale of GTAM, its asset management arm, BoG owns approximately 65% of Liberty Consumer, which in turn owns approximately 52% of SBRE. Both Liberty Consumer and SBRE are fully consolidated in BoG financials
Securities Insurance
Aldagi BCIBG Capital *Bank of Georgia BGB BNB
January 2010
BoG standalone results overview
Page 22January 2010
BoG standalone performance
Net income
Recurring operating cost structure, Q3 2009Revenue performance
Cost/Income Ratio
Standalone
45.3 50.1 52.2 51.1 50.4 45.5 44.5
21.321.0 19.2 18.9 16.3
16.8 17.0
0.0
20.0
40.0
60.0
80.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Net Interest Income Net Non-Interest Income
66.671.1 71.4 69.9 66.7 62.3 61.5
25.4 28.4
-58.0
28.8
11.3
0.9
10.8
-70.0-60.0
-50.0
-40.0-30.0
-20.0-10.0
0.010.0
20.0
30.040.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
60.7%
45.1%
41.0%
50.0% 50.8% 50.5%
42.2%
42.7%
44.7%
47.3%43.1% 41.4%
47.7% 48.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009Cost/income, Bank of Georgia standalone
Normalized Cost/income, Bank of Georgia standalone*
Personne l costs48.9% of recurring
operating costsGEL 14.7 mln(-0.9% q-o-q)
Sell ing, gene ral & admini strative costs21.5% of re curring operating costsGEL 6.5 mln(+8.2% q-o-q)
Depre ciation & am ortization17.3% of re curring operating costsGEL 5.2mln(-0.3% q-o-q)
Procurem ent & operations support costs8.4% of recurring ope rating costsGEL 2.5 mln(-2.0% q-o-q)
O ther ope rating costs3.9% of recurring ope rating costsGEL 1.2 mln(+8.4% q-o-q )
Page 23January 2010
Composition of assets as at 30 September 2009Standalone
473.1429.1391.8427.1
239.8224.2232.1226.7
1,527.91,602.01,885.0
1,663.6
265.7163.0
249.2
113.0
246.1
229.4
286.0 267.9
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q3 09Q2 09YE 2008Q3 08
GEL mln
Cash & Equivalents
Loans & Advances To CreditInstitutions
Net Loans
Property & Equipment
Other Assets
10% of total assets
6% of total assets
60% of total assets
8% of total assets
16% of total assets
2,716
2,987
11% of total assets
4% of total assets
61% of total assets
8% of total assets
16% of total assets
2,753
8% of total assets
8% of total assets
63% of total assets
8% of total assets
13% of total assets
2,686
16% of total assets
9% of total assets
56% of total assets
9% of total assets
10% of total assets
GEL million Q3 08 YE 2008 Q2 09 Q3 09
Treasuries And Equivalents 18.1 8.3 - 36.6
Other Fixed Income Instruments 16.5 14.6 57.3 65.6
Investments In Other Business Entities, Net 315.2 295.3 314.5 304.4
Intangible Assets Owned, Net 4.0 13.4 7.3 6.5
Goodwill 22.5 22.7 22.8 23.2
Tax Assets, Current And Deferred - 6.6 - -
Prepayments And Other Assets 50.8 30.8 27.2 36.8
Other assets 427.1 391.7 429.1 473.1
Page 24January 2010
Analysis of the loan bookStandalone
* Other loans include car, POS and legacy retail loans
754.6
57.8
809.1
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Q3 2009
GEL m ln
CB
RB
WM
Credit cards and overdrafts,
17%
Micro loans, 11%
Mortgage loans, 41%
Consumer and other*, 31%
FMCG, 15%
Trade, 36%
Energy, 9%
Construction & Real Estate, 17%
Industry & State, 10%
Other, 11%
Pharmaceuticals and Healthcare,
2%
Page 25January 2010
Analysis of the loan book
Loans by maturity, 30 September 2009
Loan concentrationLoans by currency, 30 September 2009
Loan book collateralization
Standalone
22.6% 22.6% 22.4%
77.4% 77.4% 77.6%
0%10%20%30%40%50%60%70%80%90%
100%
RB & WM CB Total
GEL Foreign Currency
4% 3%6%
18%
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less than 1month
1 to 3 months 3 to 6 months 6 to 12 months Over 1 year
11.3%
9.7%
16.5% 16.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Q3 2008 Q3 2009
Top 10 Borrowers Top 20 Borrowers
87.0% 86.8%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Q3 2008 Q3 2009
Page 26January 2010
Provisioning policy
Reserve for loan losses to gross loans
NPL coverage ratioNPLs & write-offs, 30 September 2009
Impairment seasoning, Q3 2009
3.72% 3.30%
7.02%
3.74%
0.39% 2.29%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
CB RB & WM Total
NPLs as % of Gross Loans Write-offs as % of Gross Loans
9.5%
2.1% 2.1%
6.3%
5.0%
6.6%
8.1%
1.9%2.0%
6.8%4.9%
5.5%6.7%
7.5%
2.0%
16.9%
1.7%1.5%
19.8%
2.0%
6.6%8.3%
6.4%1.7%
22.8%
-1.0%
5.6%6.6%
0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%
10.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Reserve for loan losses to gross loans, BoG consolidatedReserve for loan losses to gross loans, BoG standaloneCost of risk , BoG consolidated, annualisedCost of risk , BoG standalone, annualised
208.4%
554.4%
96.7%117.4%152.6%
524.0%
117.6%166.8%106.5%
104.2%129.3%169.1%
138.3%
124.2%
0%
100%
200%
300%
400%
500%
600%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
BoG standalone BoG consolidated
2.1% 2.2% 2.2% 2.7%2.1% 2.3% 2.0%
0.0%
4.0%
1.8%1.3%
0.2% 0.0%
1.1%1.2%
0.9%
2.5%
0.4%
432.6491.3
632.3
548.3604.0
179.8 200.9239.1
292.4327.6
300.9
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0GEL mln
Write-Offs as % of Loans Issued (LHS) NPLs as % of Loans Issued (LHS) Loans Issued (RHS)
Standalone
Page 27January 2010
Provisioning policy cont’d – BoG standalone
RB & WM loan loss reserve breakdown by loan type, 30 September 2009
NPLs, 30 September 2009Loan loss reserve, 30 September 2009
CB loan loss reserve breakdown by loan type, 30 September 2009
16.5 14.5 22.2 29.849.8 57.7
67.9 67.9
11.4 16.310.8
83.6
36.4 43.1
45.238.2
2.0% 1.9% 2.0%
6.8%
4.9%5.5%
7.5%6.7%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
RB & WM CB Loan loss reserve as % of gross loans
Mortgage loans, 18.6%
GEL (12.6 mln)
Consumer and other, 17.5%
GEL (11.9 mln)Credit cards and
overdrafts, 58.2%
GEL (39.5 mln)
Micro loans, 5.7%
GEL (3.9 mln)
Trade, 38.5%GEL (16.6 mln)
Energy, 6.0%GEL (2.6 mln)
Fast Moving Consumer
Goods, 14.9%GEL (6.4 mln)
Construction & Real Estate
28.9%GEL (12.5 mln)
Industry & State 3.9%
GEL (1.7 mln)
Pharmaceuticals & Healthcare,
0.3%GEL (0.2 mln)
Other, 7.5%GEL (3.2 mln)
8.7 8.1 9.7 12.0 22.746.3
67.454.5
16.6 10.922.4 11.3
41.6
41.1
51.361.4
1.7%1.2%
1.7%1.3%
3.2%
4.7%
6.9% 7.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
RB &WM CB % of Gross loans
Standalone
Page 28January 2010
BoG standalone liabilitiesLeverage ratio, BoG standalone
Liquidity ratio, BoG standalone
Standalone
728.0
41.1
914.3
1,057.5
11.6
0
500
1,000
1,500
2,000
2,500
3,000
Q3 2009
GEL mln
Deposits And Loans From Banks
Client Deposits
Borrowed Funds
Other Liabilities
Total Shareholders Equity
26% of Total Liabilities +Equity
2% of Total Liabilities+Equity
38% of Total Liabilities + Equity
33% of Total Liabilities + Equity
1% of Total Liabilities + Equity
2,7533.9
2.9 3.1 3.13.3 3.1
2.8 2.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date
34.2% 33.8%
27.2% 27.3%
37.6%
43.5%
37.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Liquidity ratio is calculated by dividing liquid assets by Total liabilities
Page 29January 2010
Analysis of deposits
CB, RB & WM deposits, BoG standalone
Client deposits by currency, 30 September 2009Client deposit breakdown, 30 September 2009
Deposits by maturity, 30 September 2009
Standalone
Individual Current
Accounts, 10.0%
Corporate Time & Demand
Deposits, 18.4%
Individual Time & Demand
Deposits, 33.8%
Corporate Current
Accounts, 37.9%
363.6 403.4 326.0 319.0 280.4 285.0 331.2
76.5 70.4 96.7 93.3 105.2131.4
652.7681.5
576.2626.7
605.2 519.0
594.9
81.6
0
200
400
600
800
1,000
1,200
1,400
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
RB Client Deposits WM Client Deposits CB Client Deposits
+11%
+4%
-19%
-15%
+13%
+2%
-3%
-12% -2%
-14% 14%
16%
+27%+11%-3%+37%-14%+7%
21.1%
50.3%
3.6%
35.3%
78.9%
49.7%
96.4%
64.7%
0%10%20%30%40%50%60%70%80%90%
100%
RB CB WM TotalGEL Foreign Currency
60%
0%5% 7%
18%
10%
0%
10%
20%
30%
40%
50%
60%
70%
On Demand Less than 1month
1 to 3 months 3 to 6 months 6 to 12 months Over 1 year
Page 30January 2010
Deposit yieldsStandalone
9.1%8.2% 8.1% 8.0%
10.4%
12.5%13.7% 14.1%
5.8% 5.7%6.6% 7.0%
7.5% 7.7%8.4%
5.6%5.4% 5.1%4.5%4.9%5.0%
4.0%3.8%
6.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
RB Deposit Yields, BoG Standalone CB Deposit Yields, BoG Standalone Blended Deposit Yields, BoG Standalone
Page 31January 2010
Risk managementCurrency risk management, Q3 2009Liquidity risk management, Q3 2009
Standalone
62.6
321.1
495.0
363.4
200.9
651.1
-
374.3
570.4
296.4
88.2
708.1
56.8(5.7)
47.4122.8
55.7
(56.9)-100
0
100
200
300
400
500
600
700
800
Up To 1 Month 1-3 Month 3 Month - 1 Year 1-5 Years Over 5 Years Past Due
GEL mln
Assets Liabilities Accumulated Liquidity Gap
5.8%
0.8%
3.5%4.1%
1.7%
6.2%
3.8%
16.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
Q4 2007 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09
Open Foreign Currency Position (as % of Regulatory Capital)
Page 32January 2010
Corporate banking
Corporate client deposits, 30 September 2009
Corporate loan portfolio, 30 September 2009Overview
Corporate gross loan portfolio growth
Standalone
Integrated client coverage in the following key sectors
Construction & Real EstateEnergyFast Moving Consumer GoodsFinancial InstitutionsForeign Organizations & Diplomatic MissionsPharmaceuticals & HealthcareRetail & Wholesale TradeState & IndustryTelecommunications, Media & TechnologyTransport & LogisticsSME
No.1 corporate bank in GeorgiaCirca 35% market share based on customer deposits(1)
Circa 27% market share based on corporate loans(2)
Integrated client coverage in key sectors81,000+ clients of which 8,938 served by dedicated relationshipbankersCirca 45% market share in trade finance and documentary operations(2)
Second largest leasing company in Georgia(2) – Georgian Leasing Company (GLC)Increased the number of corporate clients using the Bank’s payroll services from approximately 1,035 at 31 December 2008 to 1,244 in Q3 2009Approximately 1,912 legal entities opened accounts at the bank in Q3 2009, bringing the total number of current accounts to approximately 150,000
Current Accounts &
Demand Deposit s,
80%GEL (474.6
mln)
T ime Deposits, 20%
GEL (120.4 mln)
Notes: (1) As of September 2009, source: National Bank of Georgia, does not include interbank deposits(2) Management estimates (based on the NBG data)
Total corporate deposits: GEL 595 mln
874821
881
796
919857
795755
0
100
200
300
400
500
600
700
800
900
1,000
YE 2007 31-Mar-08 30-Jun-08 30-Sep-08 31-Dec-08 31-Mar-09 30-Jun-09 30-Sep-09
GEL mln
-6% +7% -10% +16% -4%-8%-7%%
Pharmaceuticals and Healthcare, 1.8%
Trade, 35.8%
Construction & Real Estate, 17.5%Fast Moving
Consumer Goods, 15.1%
Industry & State, 10.1%
Energy, 9.1%
Other, 10.6%
Page 33January 2010
Retail Banking – No. 1 retail bank in Georgia
Leadership in consumer lending
RB loan portfolio, 30 September 2009Retail loans originated
Retail gross loan portfolio growth
Standalone
34.5
64.187.3
114.0 122.1
177.5 183.3
235.6
317.6
140.2
74.955.9
68.8
97.5
266.9
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Q1 '06 Q2 '06 Q3 '06 Q4 '06 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09
GEL mln
(1) Monthly average
Micro loans, 11%
GEL (92 mln)
Credit cards and overdrafts , 17%GEL (144 mln)
Consumer and other*, 31%
GEL (271 mln)
Mortgage loans, 41%
GEL (359 mln)
Total retail loans: GEL 809 mln Note: does not include Ukraine & Belarus
YE 2007 YE 2008 Q3 2009
Number of Consumer Loans Outstanding* 50,120 67,252 53,027• Volume of Consumer Loans Outstanding (GEL mln)* 119.6 178.9 122.1• Credit Cards Outstanding 108,616 164,938 105,040
656
755
931995
923844 809
922
0
200
400
600
800
1000
1200
YE 2007 Q1 08 Q2 08 Q3 09 Q4 08 Q1 09 Q2 09 Q3 09
GEL mln
+15% +22% +1% +7% -7% -4%-9%
Page 34January 2010
Loan origination
Micro loans (RB & WM)
Consumer loans (RB & WM)Mortgage loans (RB & WM)
Other RB & WM loans
Standalone
386.8
18.5 11.5
366.1
23.1
358.8
-50.0
100.0150.0200.0250.0300.0350.0400.0450.0
Volume of MortgageLoans Originated
Volume of MortgageLoans Outstanding
GEL mln
Q4 2008 Q2 2009 Q3 2009
-5%
-38% +101%
-2%
15.2
148.3
16.8
100.4 92.3
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Volume of Micro Loans Originated Volume of Micro Loans Outstanding
GEL mln
Q4 2008 Q2 2009 Q3 2009
+11%
-32%
+53%
-8%
25.7
Note: does not include Ukraine & Belarus
Note: does not include Ukraine & Belarus
334.4
272.5
17.03.6
284.7
3.7-
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Volume of Other RB & WMLoans Originated*
Volume of Other RB & WMLoans Outstanding
GEL mln
Q4 2008 Q2/Q1 Q3 2009
-79%
-15 %
+3%
-52%
-4%
33.5
180.5
45.8
143.6
60.3
143.3
-20.040.060.080.0
100.0120.0140.0160.0180.0200.0
Volume of ConsumerLoans Originated
Volume of ConsumerLoans Outstanding
GEL mln
Q4 2008 Q2 2009 Q3 2009
+32%
+37%
-20%
-5%
Page 35January 2010
Deposit origination
Number of RB & WM time deposits issued
Volume of deposits outstanding (CB)Volume of deposits outstanding (RB & WM)
Volume of RB & WM time deposits issued
Standalone
169.9 185.3120.9 99.2 95.2 92.4 105.4
39.2 36.9
18.6 18.0 16.3 20.7 34.8
231.1 262.9
257.0 302.1 262.2 275.6322.4
0.0
100.0
200.0
300.0
400.0
500.0
600.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Volume of RB & WM time deposits outstanding
Volume of RB & WM demand deposits outstanding
Volume of RB & WM current accounts outstanding
410.4 363.3 349.9 372.2 382.3 324.1 400.4
53.639.2 26.8
90.2 69.379.2
74.2
188.7 279.0199.5
186.6 153.6117.3
120.3
0.0100.0200.0300.0400.0
500.0600.0700.0800.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL m ln
Volume of CB time deposits outstanding
Volume of CB demand deposits outstanding
Volume of CB current accounts outstanding
10,912
17,136 17,85519,403
12,051
15,312
18,562
-
5,000
10,000
15,000
20,000
25,000
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
121.7 125.9 119.1100.2 94.8 99.0 112.8
8.016.9 16.2
25.8 20.034.9
40.6
0.020.040.060.080.0
100.0120.0140.0160.0180.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Volume of WM time deposits issued
Volume of RB time deposits issued
Page 36January 2010
RB cross-selling
Cards penetration rate*
RB loans penetration rate*Product/client ratio
Current accounts & deposits penetration rate*
Standalone
2.2 2.42.7
3.0 3.2 3.3 3.53.1 3.0 2.8 2.8
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-090.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Number of clients (LHS) Number of products (LHS) Product/Client Ratio (RHS)
1.1% 1.1%
9.2%
2.2% 2.1% 1.9% 1.5% 0.8%
35.8%39.3%
44.3% 46.4% 47.9% 47.6%
1.1%1.2%1.1%1.0%0.9%
11.8%
17.0%24.2%
29.1%30.9%31.7%
1.1%
2.0%
34.1%
0%
10%
20%
30%
40%
50%
60%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
M ortgage Loan Penetration Rate Consumer Loan Penetration RateM icro Loan Penetration rate Other Loans Penetration Rate
95.6% 98.7% 104.0%
75.4% 73.2%67.6% 66.1%
23.6% 26.9% 31.4%24.8% 20.6% 17.5% 15.0%
0%
20%
40%
60%
80%
100%
120%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
Debit Cards Penetration Rate Credit Cards Penetration Rate
111.2% 111.3% 112.8%
5.6% 6.7% 7.3% 8.9% 7.1% 7.6% 9.2%
105.0%114.3% 111.1% 110.8%
20.0% 19.8% 19.5% 19.0% 16.4% 15.7%14.7%
0%
20%
40%
60%
80%
100%
120%
140%
Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
Demand & Term Deposits Penetration RateUniversal Current Accounts Penetration RateStandard Current Accounts Penetration Rate* Calculated as percentage of Bank of Georgia clients for the period
Page 37January 2010
Card processing
Transaction authorizations by Georgian Card
Number of cards serviced by Georgian CardClient banks
Georgian Card’s revenue & assets
Standalone
• 56% ownership of Georgian Card
• Migration to TietoEnatorTransmaster in 2005
• Enhanced functionality and new product support
90 121 203 286 337 414 437 460649 721 776 774
658 636 582 539
49 6672
84119
131 138247
227256
278 304
256 261227 230
0
200
400
600
800
1,000
1,200
Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 May-07
Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
'000s
Bank of Georgia Other Banks
186275
370456
139
575706
876978
1,054 1,078
914
545
769809897
1,1051,776 2,151
2,954 2,914
4,2245,027
6,5847,176
8,536 8,613 9,0148,406
7,6607,173
01,0002,0003,0004,0005,0006,0007,0008,0009,000
10,000
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09
'000s5.5
2.52.6
3.13.3
3.84.0 4.0 4.0
4.2
4.7 4.7
1.41.4
0.5 0.4
1.7
1.01.1
2.2
1.1
1.31.3
1.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09
GEL mln
0.0
0.5
1.0
1.5
2.0
2.5
Total Assets (LHS) Revenue (RHS)
Page 38January 2010
Analysis of mortgage portfolio
Typical mortgage terms
Volume of mortgage loans outstandingNumber of mortgage loans issued & outstanding
Volume of mortgage loans issued
Standalone
231 259 423
7,4767,967 7,994 7,916 7,809
455 678 858 1,129 1,4261,915
850 691
2,3651,166
3,4094,230
5,340
6,881
0
2,000
4,000
6,000
8,000
10,000
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
Number of mortgage loans issued Number of mortgage loans outs tanding
Rate: 16% - 20%Tenor: Normally 10 yearsCurrency: US$LTV: Normally 70% - 80%
33.8 37.6 43.3
69.581.3
96.1
32.5
18.510.1 11.5
23.1
0
20
40
60
80
100
120
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
GEL mln
101.6128.7
157.7203.5
245.5
312.0 325.9
386.8 383.1 366.1 358.8
050
100150200250300350400450
Q12007
Q22007
Q32007
Q42007
Q12008
Q22008
Q32008
Q42008
Q12009
Q22009
Q32009
GEL mln
Page 39January 2010
Management (WM) performance review
WM loans, 30 September 2009
WM products penetrationWM clients and client assets
WM Deposits
Standalone
0.06.7
48.2 48.3
63.4 66.4 64.866.8
73.3
55.460.9 59.0
69.3
87.8
0
1364
460
873943
1081
11871291 1304
1382
1384 1387 1341
1358
0.0
20.0
40.0
60.0
80.0
2004 2005 2006 Q1 '07 Q2 '07 Q3 '07 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q32009
US$ mln
0
200
400
600
800
1,000
1,200
1,400
1,600
US$ mln Private Banking Client Assets (LHS)US$ mln Private Banking Clients (RHS)
Other, 5.2%
Mortgage Loans, 53.0%Consumer
Loans, 36.7%
Car Loans, 5.1%
Notes: (1) Converted at exchange rates of GEL/US$, 1.793(2005),1.714(2006), 1.70 (Q1 2007), 1.67 (Q2 2007), 1.66 (Q3 2007), 1.59 (Q4 2007), 1.48 (Q1 2008), 1.42 (Q2 2008) , 1.41 (Q3 2008), 1.67 (Q4 2008), 1.67 (Q1 2009) and 1.67 (Q2 2009) Q3 2009 (1.68)
(2) PB Client Assets include: Balances on OneCard Accounts, Credit Balances on Other Cards, Credit Balances On Regular Current Accounts, Demand & Time Deposits, Brokerage & Asset Management Accounts, Pensions
52.2%
101.0%93.7%
21.2% 25.5% 27.8%40.1%
71.4%54.0%55.3%65.8%66.8%66.9% 93.4%
111.2%114.2%
130.2%135.0%
32.8%31.8%32.2%
62.5%65.2%
69.6%70.2%76.4%
78.2%80.7%
23.7%21.9%20.6%
10.5%15.4%14.8%15.3%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
OneCard Penetration Rate All Other Cards Penetration RateDemand & Term Deposits Penetration Rate Internet Banking Penetration RateSMS Banking Penetration Rate
155.2
49.5 31.5 35.7 35.1 36.9 47.9
22.6
32.139.0
61.0 58.2 66.883.6
0.020.040.060.080.0
100.0120.0140.0160.0180.0200.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
Current Accounts & Demand Deposits Time Deposits
January 2010
BG Bank (Ukraine) standalone results overview
Page 41January 2010
BG Bank performance
Net income
Recurring operating cost structure, Q3 2009Revenue growth
Cost/Income Ratio
4.8 5.56.4
3.82.9
4.3 4.0
1.7 0.8
2.61.2 1.3
2.7 5.5
6.2%
9.6%10.3%
7.2%
7.5%
8.3%
5.6%
0.01.02.03.04.05.06.07.0
8.09.0
10.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Net interest income Net non-interest income Net interest margin, annualised
9.2
6.36.5
9.3
5.5 5.65.3
(7.3)
(10.8)
(5.5)
(0.7)
0.7 0.7
(10.7)(12.0)
(10.0)
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL m ln
4.6 3.9
11.0 12.9
-2.04.06.08.0
10.012.014.016.018.0
Q2 2009 Q3 2009
GEL mln
Recurring Operating Costs Provision expense
109.2%116.9%
100.1%91.5%
74.7%76.0%
35.7%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Page 42January 2010
BG Bank assets as at 30 September 2009Asset growth
Gross loan book growth
Low leverage (at 3.9x)
No international loan
16.211.415.9
14.114.0
14.4
136.0151.3
179.8
6.6
7.0
11.0
28.921.7
27.2
0.0
50.0
100.0
150.0
200.0
250.0
300.0
Q3 2009Q2 2009YE 2008
Cash & Equivalents
Loans & Advances To Credit Institutions
Loan Portfolio
Property & Equipment
Other Assets
11% of Total Assets
4% of Total Assets
73% of Total Assets
6% o f T o ta l A s s ets
14% of Total Assets
3% of Total Assets
74% of Total Assets
7% of Total Assets
6% of Total Assets
248
GEL mln
6% of Total Assets
202205
GEL million YE 2008 30-Jun-09 30-Sep-09Available-For-Sale Securities 12.0 5.9 6.1 Intangible Assets Owned, Net 0.5 0.6 0.8 Tax Assets, Current And Deferred 0.2 2.8 8.2 Prepayments And Other Assets 3.2 2.1 1.1 Other assets 15.9 11.4 16.2
357 360 350 337249 245 205 202
1,131 1,1491,217 1,213
1,150 1,129965
946
0.30.3 0.3
0.3
0.2 0.20.2
0.2
0
200
400
600
800
1000
1200
1400
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.0
0.1
0.1
0.2
0.2
0.3
0.3
0.4
Assets (GEL mln) Assets (UAH mln) GEL/UAH exchange rate, e-o-p
230 255 265 257201 199 190 186
729
871 876 889
917930
925862
0.3
0.2 0.20.2
0.2
0.30.30.3
0100200300400500600700800900
1000
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.0
0.1
0.1
0.2
0.2
0.3
0.3
0.4
Loans (GEL mln) Loans (UAH mln) GEL/UAH exchange rate, e-o-p
Page 43January 2010
BG Bank loan portfolio
Retail loan portfolio breakdown, 30 September 2009
Corporate loan portfolio breakdown, 30 September 2009Loan portfolio breakdown, 30 September 2009
Gross loans: GEL 186 million
Corporate Loans, 81%
Retail Loans, 19%
Other loans, 0.1%
Credit cards, 3.4%
Micro loans, 5.6%
Mortgage loans, 15.8%
Consumer and other, 75.0%
Trade, 42%
Industry & State 18%
Construction & Real Estate, 28%
SME, 9%
Other, 3%
Gross corporate loans: GEL 152 million
Page 44January 2010
BG Bank analysis of the loan book
Loans by maturity, 30 September 2009
Top ten borrower concentrationLoans by currency, 30 September 2009
Loan book collateralization
UAH, 56.5%
Foreign currency, 43.5%
30.0% 31.3% 32.5%30.8% 31.4%
33.5%36.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
89.9%
91.5%90.9%
92.1%93.0%
95.8%96.6%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
19.04%12.48%
18.06%
50.42%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0 to 3 months 3 to 6 months 6 months to 1year
Over 1 year
Page 45January 2010
BG Bank provisioning policy
NPL coverage ratio
Loan loss reserveNPLs
Reserve for loan losses to gross loans
2.6 2.9 2.7 2.68.7
5.6 6.34.0
7.2
22.117.6
0.1 0.7 1.0
12.8%
1.7%1.3% 1.5%
3.3%
8.0%
14.6%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
0.0%2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%16.0%
CB RB NPL ratio
298.4%319.4%
210.0%
166.4%
174.7%
198.8%
140.9%
0%
50%
100%
150%
200%
250%
300%
350%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
7.3 5.7 6.312.6 12.2 12.8 12.9
8.5
19.4
26.2
37.3
0.60.2 0.2
0.0
10.0
20.0
30.0
40.0
50.0
60.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
RB CB
26.9%
2.8% 2.2% 2.5%
10.5%
15.9%
20.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Page 46January 2010
BG Bank standalone liabilities breakdownLeverage ratio
Q4 2008 Q2 2009 Q3 2009Issued Fixed Income Securities - 0.2 0.7Tax Liabilities, Current And Deferred 0.1 - -Accruals And Other Liabilities 4.9 2.5 1.5Other liabilities 5.0 2.7 2.2
41.339.350.4
117.1114.8
127.4
2.2
5.0 41.448.6
65.6
2.7
0
50
100
150
200
250
300
Q3 2009Q2 2009Q4 2008
GEL mln
Total Shareholders Equity
Other Liabilites
Borrowed Funds
Client Deposits
Deposits And Loans From Banks 21% of Total Liabilities + Equity
51% of Total Liabilities + Equity
2% of Total Liabilities+ Equity
26% of Total Liabilities+ Equity
24% of Total Liabilities + Equity
1% of Total Liabilities+ Equity
56% of Total Liabilities + Equity
19% of Total Liabilities + Equity
21% of Total Liabilities + Equity
1% of Total Liabilities + Equity
58% of Total Liabilities + Equity
20% of Total Liabilities + Equity
4.3
2.3 2.1
2.9 3.03.2
3.9
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Page 47January 2010
BG Bank client deposits
CB & RB client deposits
Deposit yieldsClient deposits
Deposits by maturity, 30 September 2009
270216 180 171 127 121 115 117
559856 730
592 614588 558 528
0.320.30 0.30
0.28
0.22 0.22 0.220.21
0100200300400500600700800900
Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 20090.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
GEL mln UAH mln GEL/UAH exchange rate, e-o-p
32.7%
16.6%
30.9%
11.8%
8.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
On demand Less than 1 month 1 to 6 months 6 months to 1 year Over 1 year
12.0%
12.8%
14.0%
15.8%
11.8%
12.2%11.4%
10%
11%
12%
13%
14%
15%
16%
17%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
85.460.5 61.5
45.7 47.0 37.7 43.2
130.6
119.7 109.1
81.7 74.177.1 73.9
0.0
50.0
100.0
150.0
200.0
250.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL m ln
CB Client Deposits RB Client Deposits
-29%
-8%
-9%
+2%
-25%
-26%
-9%
+3%
+4%
-20%
-4%
+15%
Page 48January 2010
BG Bank analysis of depositsClient deposits by currency, 30 September 2009Client deposits breakdown, 30 September 2009
Time&Demand depos its , 69%
Current accounts , 31%
UAH, 51%Foreign
currency, 49%
Client deposits: GEL 117 mln
Page 49January 2010
BG Bank capital adequacy
Risk-weighted assets BIS vs. NBU
NBU capital adequacy ratiosBIS capital adequacy ratios
Net loans/deposits & Loans/(deposits+equity)
19.0%
30.6%32.8%
27.9%30.5%
24.9%
32.6%31.3%
28.4%
33.3%
25.8%
30.8%29.1%
16.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio
282.1244.1 230.4
176.4
361.6 355.0327.7
305.2
352.9 340.6 327.0
255.4
190.4178.2
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
NBU BIS
12.4% 12.9% 14.0%
21.0%22.8% 23.8% 22.8%
13.7% 14.5% 15.6%21.0% 22.8% 24.5% 22.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio
77.7% 73.7% 74.6%68.1%
85.9%
68.8%75.3%71.5%
98.2%91.9%
99.7%
116.5%113.7%
89.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009Net Loans/(Total Deposits+Equity) Net Loans/Total Deposits
January 2010
Belarusky Narodny Bank (Belarus)
Page 51January 2010
BNB Q3 2009 P&L
214.3%196 118 616 367 Net Income / (Loss)
170.5%95 57 257 153 Income Tax Expense / (Benefit)
200.0%291 175 873 521 Pre-Tax Income / (Loss)
517.9%(28)(17)(173)(103)Net Provision Expense
166.2%263 158 700 417 Profit / (Loss) Before Provisions
477.8%9 5 52 31 Net Non-Recurring Income / (Costs)
155.1%254 153 648 386 Normalized Net Operating Income / (Loss)
-0.5%1,458 879 1,451 865 Total Recurring Operating Costs
19.9%161 97 193 115 Other Operating Expenses
-42.0%138 83 80 48 Depreciation And Amortization
6.0%235 142 249 148 Procurement & Operations Support Expenses
22.4%156 94 191 114 Selling, General & Administrative Expenses
-3.9%768 463 738 440 Personnel Costs
22.6%1,712 1,032 2,099 1,252 Total Operating Income (Revenue)
-13.4%762 459 660 394 Net Non-Interest Income
-117.9%134 81 (24)(14)Net Other Non-Interest Income
-2.8%284 171 276 165 Net Foreign Currency Related Income
-1 ---Net Income From Documentary Operations
-----Expense On Documentary Operations
-1 ---Income From Documentary Operations
19.0%343 207 408 243 Net Fees & Commission Income
10.5%57 34 63 38 Fees & Commission Expense
17.8%400 241 471 281 Fees & Commission Income
51.5%950 573 1,439 858 Net Interest Income
12.6%478 288 538 321 Interest Expense
38.4%1,428 861 1,977 1,179 Interest Income
Q-O-QGELUS$GELUS$GEL '000s
GrowthQ3 2009 Q2 2009Standalone, IFRS Based
Page 52January 2010
BNB loan portfolio as at 30 September 2009
RB Loan Portfolio Breakdown, 30 September 2009
Loan loss reserve, 30 September 2009Loan Portfolio Breakdown, 30 September 2009
CB Loan Portfolio Breakdown, 30 September 2009
CB, 91%
RB, 9%
Gross loans: GEL 26.5 mln
Other loans, 1%
Consumer and other*, 97%
Mortgage loans, 2%
RB loans: GEL 2.4 mln* Other loans include car, POS and legacy retail loans
CB: GEL 0.85 mln
RB: GEL 0.16 mln
Loan loss reserve: GEL 1.1 mln
Other, 1%Industry & trade, 1%
Trade, 64%
Construction & real estate, 34%
CB loans: GEL 24.0 mln
Page 53January 2010
BNB client deposits as at 30 September 2009RB client deposits breakdown, 30 September 2009Client deposits breakdown, 30 September 2009
RB client deposits breakdown, 30 September 2009
3,831
14,063
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Jan-00
GEL mln
RB deposits outstanding CB deposits outstanding
RB time deposits outstanding,
92.3%
RB current accounts
outstanding, 7.5%
RB demand deposits
outstanding, 0.2%
CB time deposits oustanding,
51%
CB current accounts
outstanding, 49%
January 2010
BG Capital
Page 55January 2010
BG Capital
Proprietary book
Net income/(loss)Revenue
Headcount
1.2 1.5 1.8
(2.8)(1.9)(1.0)
1.6
(4.0)(3.0)(2.0)(1.0)0.01.02.03.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
19,276
36,968
3,912 2,516 1,364 2,790 1627
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL '000s
0.10.8 0.5
(4.6)
(2.3)(2.6)(1.9)
(6.0)
(5.0)
(4.0)
(3.0)
(2.0)
(1.0)
0.0
1.0
2.0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009
GEL mln
20 2236
17 15 1630
45 43 22
20 22 2514
0
10
20
30
40
50
60
70
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009BG Capital Georgia BG Capital Ukraine
65 6558
3741 44
37
January 2010
Insurance
Page 57January 2010
Aldagi BCI, Insurance
Aldagi BCI market share by GPW (Q2 2009)
Georgian insurance market product breakdown (Q2 2009)
Aldagi BCI GPW, net premiums earned & net income/(loss)
15,60417,048
12,838 12,933
1,630 1,647(500)
1,5003,5005,5007,5009,500
11,50013,50015,50017,50019,500
Q2 2009 Q3 2009
GEL 000s
Gross Premiums Written Net Premiums Earned Net Income (Loss)
GPIH, 15%
People's Insurance, 9%
Other , 21.9%Aldagi BCI, 20%
Irao, 13%
Imedi L, 21%
Aviation, 0.32%
Property, 7.19%
Health, 72.56%
Personal accident, 1.24%
Credit liability , 0.01%M arine vessels, 0.12%
Financial risks, 0.25%
Life, 2.56%
Cargo, 0.44%
Civil liability , 1.95%
Source: State Insurance Supervision Service of Georgia
Page 58January 2010
ContactNick EnukidzeChairman of the Supervisory Board+ 995 32 444 [email protected]
Irakli GilauriChief Executive Officer+995 32 444 [email protected]
Macca EkizashviliHead of Investor Relations+995 32 444 [email protected]
January 2010
Appendices
January 2010
Bank of Georgia shareholder structure, management & price performance
Page 61January 2010
Ownership structure & share price performance
Supervisory board
Ownership structure, June 2009
Management board
Broadly owned by over 100 institutional accounts
Local Shares Held by
Institutional Shareholders
5.9%
Local Shares Held by
Domestic and Foreign Retail Shareholders
4.9%
Management & Employees**
4.0%
GDR Holders* 85.2%
Name Number %GDR Holders* 26,651,805 85.2%Local Shares Held by Institutional Shareholders 1,848,163 5.9%Management & Employees** 1,267,126 4.0%Local Shares Held by Domestic and Foreign Retail Shareholders 1,527,509 4.9%Total Shares Outstanding 31,294,603 100.0%
Adjusted for Galt & Taggart Securities' Proprietary Book (1 ) (5,289) Adjusted Total Shares Outstanding 31,289,314
(1) Treated as treasury shares as per IFRS*through BNY Nominees Limited** includes GDRs held as part of EECP
Irakli Gilauri Chief Executive Officer (CEO)
Sulkhan Gvalia Deputy CEO Chief Risk officer
George Chiladze Deputy CEO Finance
Irakli Burdiladze Deputy CEO Chief Operating Officer
Mikheil Gomarteli Deputy CEO Retail Banking
Avto Namicheishvili Deputy CEO Legal
Archil Gachechiladze Deputy CEO Corporate banking
Nikoloz Shurgaia Deputy CEO International Banking
Nicholas Enukidze Chairman of the Supervisory Board
Allan Hirst Vice Chairman of the Supervisory Board, independent member
Ian Hague Member, Firebird Management LLC
Jyrki Talvitie Member, East Capital
Kaha Kiknavelidze Independent member
David Morrison Independent member
Irakli Gilauri Member, Chief Executive Officer
Page 62January 2010
Analyst coverage
Analyst Email
Andrzej Nowaczek [email protected]
Analyst Email
David Nangle [email protected]
Analyst Email
Radena Georgieva [email protected]
Analyst Email
Pedro Fonseca [email protected]
January 2010
Georgian banking sector – key trends 2006-2009
Page 64January 2010
Georgian banking sector – key trends 2007/2009GEL/US$
Period End YE 2006= 1.71
YE 2007=1.59
YE 2008=1.67
Q1 2009=1.67
Q2 2009=1.66
Q3 2009= 1.68
GrowthMarket Share Market Share Market Share
(YE 2007) (YE 2008) (Q3 2009)
GEL mln YE 2007 YE 2008 Q3 '09As % of GDP*
2007 Y-O-Y
2008 Y-O-Y
Q3 '09, YTD
Top 5 Banks
Bank of Georgia
Top 5 Banks
Bank of Georgia
Top 5 Banks
Bank of Georgia
Total Assets 7,208 8,866 7,877 36.69% 70.90% 23.00% -11.2% 80.00% 35.20% 79.26% 32.89% 78.50% 33.60%Gross Loans 4,589 5,993 5,210 24.27% 71.50% 30.59% -13.1% 81.70% 32.70% 81.78% 32.87% 81.83% 31.13%Deposits 3,511 3,845 3,644 16.97% 50.90% 9.51% -5.2% 81.40% 31.40% 75.00% 28.76% 78.23% 28.12%Equity 1,471 1,517 1,511 7.04% 65.50% 3.14% -0.4% 73.30% 33.80% 75.69% 40.03% 81.18% 40.36%Net Income/(Loss) 109 (216) (82.0) NMF 17.50% NMF NMF NMF 41.90% NMF NMF NMF 12.02%
19 banks as at 30 September 2009Minimum capital requirement GEL 12 mln and growingSince 1 January 2007 local presence established by HSBC, Halyk, Privat, JSC Kor Bank
No state ownership since 1995Very open to foreign ownership
All leading banks have meaningful foreign capital participationSignificant IT/infrastructure and marketing spend drives increasing retail banking penetrationIncreasing adoption of the universal banking business model, following the lead of Bank of Georgia
The economy and consumers significantly underlent (all-in consumer debt per capita US$163 at 31 December 2008)
Page 65January 2010
Peer group’s market share in total assetsGEL/US$
Period End YE 2006 = 1.71
YE 2007=1.59
YE 2008=1.67
Q1 2009= 1.67
Q2 2009=1.66
Q3 2009=1.68
27.9%
22.5%
8.3%10.2%
7.3%
11.1%12.6%
35.4%
23.7%
6.9% 7.7%5.5%
6.7%
14.3%
32.9%
22.0%
9.6%
7.7% 7.0%
4.8%
15.9%
33.6%
22.0%
9.5% 8.7%
6.0%4.7%
15.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
BoG TBC Bank Republic ProCredit Bank Cartu VTB Other Banks
YE 2006
YE 2007
YE 2008
Sep-09
Note: all data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia www.nbg.gov.ge
Page 66January 2010
Peer group’s market share in gross loansGEL/US$
Period End YE 2006 = 1.71
YE 2007=1.59
YE 2008=1.67
Q1 2009= 1.67
Q2 2009=1.66
Q3 2009=1.68
9.5%
14.0%
8.8%
11.8%
7.3%
22.2%
26.5%
11.3%
7.5%7.6%8.3%
7.0%
25.6%
32.7%
12.2%
6.0%6.4%
8.7%10.1%
23.7%
32.9%
12.2%
6.0%
8.0%
9.8%10.6%
22.3%
31.1%
0%
5%
10%
15%
20%
25%
30%
35%
BoG TBC Republic ProCredit Bank Cartu VTB Other Banks
YE 2006
YE 2007
YE 2008Sep-09
Note: all data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia www.nbg.gov.ge
Page 67January 2010
Peer group’s market share in depositsGEL/US$
Period End YE 2006 = 1.71
YE 2007=1.59
YE 2008=1.67
Q1 2009= 1.67
Q2 2009=1.66
Q3 2009=1.68
24.5% 24.8%
11.3%9.6%
12.0%
3.6%
14.2%
31.4%
24.7%
8.9%7.9% 8.6%
2.1%
16.5%
28.8%
22.5%
8.9%8.1%
6.5%
6.8%
18.5%
28.1%
24.9%
10.2%9.4%
5.6%
2.9%
18.9%
0%
5%
10%
15%
20%
25%
30%
35%
BoG TBC Republic ProCredit Bank VTB Cartu Other Banks
YE 2006
YE 2007
YE 2008Sep-09
Note: all data based on standalone accounts as reported to the National Bank of Georgia and as published by the National Bank of Georgia www.nbg.gov.ge