April 2011 Introduction to Bank of Georgia The leading universal - - PowerPoint PPT Presentation

April 2011

GROWTH AT THE RIGHT PRICE

LSE: BGEO / GSE:GEB

JSC Bank of Georgia Q1 2011 results overview

April 2011

Page 2

Introduction to Bank of Georgia

Investment highlights Undisputed leader of Georgian financial services industry with market-leading retail and corporate banking franchise Strongly positioned to benefit from US$4.5 bln international assistance package pledged to Georgia by international donors in the aftermath

• f Russia-Georgia conflict in August

2008 Disciplined capital management, low leverage, conservative liquidity position, no exposure to sub-prime Sophisticated management team with Western banking & finance background Transparency and good governance,

• ver 89% institutionally owned.

Supervisory Board includes two large institutional shareholders and five independent directors

The leading universal bank in Georgia

Leading corporate bank with approximately 96,885 legal entities and over 186,044 current accounts (2) Leading insurance, card-processing, leasing, trade finance, wealth management and asset management services provider The only Georgian entity with credit ratings from all three global rating agencies S&P: „B/B‟ Fitch Ratings: „B+/B‟ – at the sovereign ceiling Moody‟s: „B1/NP (FC)‟ & „Ba3/NP (LC)‟ Listed on the London Stock Exchange (GDRs) and Georgian Stock Exchange Market Cap (LSE) US$ 586 mln as of 18 April 2011 Approximately 95% free float Issue of the first ever Eurobonds in Georgia Bloomberg: BKGEO; 5 year, 9%, US$200 mln S&P: B; Moody‟s: Ba3; Fitch: B+; (composite B+)

No.1 by assets (35.7%), (1) gross loans (35.3%), (1) client deposits (33.9%) (1) and equity 36.1%) (1) Leading retail banking, with top brand, best distribution network and broadest range of services of any bank in Georgia

March December March 2011 2010 2010 Retail Accounts 1,092,600+ 1,130,900+ 1,124,900+ Cards Outstanding 614,900+ 603,000+ 570,600+ Branches 143 142 140 ATMs 408 405 379

(1) All data according to the NBG as of 31 March 2011 (2) Includes SME and Micro from retail banking

April 2011

JSC Bank of Georgia Q1 2011 results overview

April 2011

Page 4

Q1 2011 P&L results highlights

Millions unless otherwise noted Q1 2011 Q4 2010 Growth1 Q1 2010 Growth 2 Bank of Georgia (Consolidated, Unaudited IFRS-Based) GEL US$ GEL US$ Q-O-Q GEL US$ Y-O-Y (Unaudited) (Unaudited) (Unaudited) Net Interest Income

56.9 33.4 57.5 32.4

• 1.0%

45.3 25.9 25.7%

Net Non-Interest Income

34.2 20.0 37.7 21.3

• 9.3%

30.6 17.5 11.7%

Total Operating Income (Revenue)3

91.1 53.4 95.2 53.7

• 4.3%

75.9 43.4 20.1%

Recurring Operating Costs

47.3 27.7 50.9 28.7

• 7.2%

46.3 26.4 2.2%

Normalized Net Operating Income4

43.8 25.7 44.3 25.0

• 1.0%

29.6 16.9 48.0%

Net Non-Recurring Income (Costs)

(2.3) (1.3) (1.4) (0.8) 67.7% (3.3) (1.9)

• 30.0%

Profit Before Provisions

41.5 24.3 42.9 24.2

• 3.2%

26.4 15.1 57.6%

Net Provision Expense

5.2 3.0 10.8 6.1

• 52.4%

7.4 4.2

• 30.0%

Net Income/ (Loss)*

30.6 17.9 25.7 14.5 19.0% 16.8 9.6 82.4%

EPS (basic)

0.97 0.57 0.82 0.46 18.9% 0.54 0.3 82.1%

EPS (diluted)

0.93 0.55 0.79 0.45 17.8% 0.54 0.3 74.4%

1 Compared to Q4 2010, growth calculations based on GEL values. 2 Compared to the same period in 2010; growth calculations based on GEL values. 3 Revenue includes Net Interest Income and Net Non-Interest Income. 4 Normalized for Net Non-Recurring Costs.

* Excluding extraordinary item

April 2011

Page 5

31 March 2011 Balance Sheet results highlights

Millions, unless otherwise noted Q1 2011 Q4 2010 Q1 2010 Bank of Georgia (Consolidated, unaudited IFRS-Based) GEL US$ GEL US$ GEL US$ (Unaudited) (Unaudited) (Unaudited) Net Loans

2,241.9 1,314.2 2,368.7 1,336.2 1,777.3 1,015.9

Total Assets

4,049.2 2,373.7 4,098.9 2,312.1 3,124.1 1,785.8

Client Deposits

1,976.9 1,158.9 2,011.2 1,134.5 1,394.4 797.1

Borrowed Funds

965.8 566.1 1,012.3 571.0 912.0 521.3

Total Liabilities

3,311.7 1,941.3 3,406.3 1,921.4 2,512.4 1,436.2

Shareholders‟ Equity

737.6 432.4 692.7 390.7 611.7 349.6

Book Value Per Share, GEL & US$

23.52 13.79 22.10 12.46 19.53 11.17

Tier I Capital Adequacy Ratio (BIS)

18.0% 17.5% 21.9%

Total Capital Adequacy Ratio (BIS)

28.8% 26.6% 34.6%

Tier I Capital Adequacy Ratio (NBG)

12.7% 13.0% 17.7%

Total Capital Adequacy Ratio (NBG)

15.6% 14.5% 15.9%

Change Change Q-O-Q 1 Y-O-Y 2 Net Loans

• 5.4%

26.1%

Total Assets

• 1.2%

29.6%

Client Deposits

• 1.7%

41.8%

Borrowed Funds

• 4.6%

5.9%

Total Liabilities

• 2.8%

31.8%

Shareholders‟ Equity

6.5% 20.6%

Book Value Per Share,

6.5% 20.4%

1 Compared to Q4 2010 growth calculations based on GEL values. 2 Compared to the same period in 2010; growth calculations based on GEL values.

April 2011

Page 6

Composition of revenue in Q1 2011

Revenue by segments, Q1 2011 Composition of revenue, Q1 2011

Consolidated

Total Revenue: GEL 91.1 million in Q1 2011

Net interest income 62.5%, GEL 56.9 mln (-1.0% q-o-q) Net other non- interest income 10.0%, GEL 9.2 mln (-16.6% q-o-q) Net fee and commision income 13.2%, GEL 12.0 mln (-14.6% q-o-q) Net foreign currency related income 10.5%, GEL 9.6 mln (+1.3% q-o-q) Net income from documentary

• perations 3.8%,

GEL 3.5 mln (+7.4% q-o-q) BoG Standalone 85.9%, GEL78.2 mln (-2.6% q-o-q) Belarus 4.5%, GEL4.2 mln (+14.5% q-o-q) Aldagi BCI 5.5%, GEL5.0 mln (-8.8% q-o-q) Other 4.1%, GEL3.7 mln (-35.5% q-o-q)

April 2011 13.2 10.4 9.4 14.9 8.8 7.1 6.5 5.7 7.3 8.8 8.0 9.4 9.6 2 4 6 8 10 12 14 16

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Page 7

Analysis of revenue

Net fee & commission income & Income from documentary operations Net foreign currency related income Revenue growth Net Other non-interest income

Consolidated

10.2 10.2 12.9 10.9 11.1 11.6 12.0 12.6 10.3 10.9 13.8 14.0 12.0 1.4 1.9 1.7 1.4 2.2 1.8 2.3 2.3 2.2 2.2 2.5 3.3 3.5 2 4 6 8 10 12 14 16 18 20

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Net Fee & Commission Income Net Income From Documentary Operations

49.8 55.8 58.9 56.4 52.4 49.5 48.9 46.0 45.3 51.7 56.1 57.5 56.9 31.3 30.3 27.1 30.2 29.3 31.1 30.4 31.3 30.6 30.9 34.2 37.7 34.2 81.1 86.1 85.9 86.6 81.7 80.6 79.3 77.4 75.9 82.5 90.3 95.2 91.1 10 20 30 40 50 60 70 80 90 100

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Net Interest Income Net Non-Interest Income

1.6 1.7 2.5 3.2 3.0 5.1 4.9 3.7 4.2 4.2 3.9 5.0 4.7 1.3 1.6 0.1 0.4 0.3 1.3 1.9 1.9 0.2 0.5 1.3 0.4 0.6 0.2 0.1 1.8 0.2 0.3 0.2 0.2 0.1 0.1 0.1

• 0.4 -0.4 -1.1
• 3.4

0.3

• 0.5

0.6 2.0 0.2 0.5 0.2 0.1 3.3 4.7 1.4 1.0 3.6 3.7 3.0 4.4 4.4 4.6 4.9 4.5 4.0 6.5 7.8 5.0 7.8 7.1 10.7 9.5 10.7 10.8 9.0 9.9 11.0 9.2

• 6
• 4
• 2

2 4 6 8 10 12 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln Other Net Investment gains Asset Management Income Brokerage Income Net Insurance Income

April 2011

Page 8

Composition of recurring operating costs in Q1 2011

Recurring operating cost structure by segments, Q1 2011 Recurring operating cost structure, Q1 2011

Consolidated

Total recurring operating costs: GEL 47.3 million in Q1 2011

Personnel costs 54.3%, GEL 25.7 mln (-5.1% q-o-q) Selling, general & administrative costs 20.1%, GEL 9.5 mln (-7.4% q-o-q) Depreciation & amortization 12.9%, GEL 6.1 mln (-10.3% q-o-q) Procurment &

• perations

support costs 7.2%, GEL 3.4 mln (+0.9% q-o-q) Other operating costs 5.5% GEL 2.6 mln (-25.1% q-o-q) BoG standalone, 72.4% GEL 34.2 mln (-0.2% q-o-q) BNB 6.6% GEL 3.1 mln (-0.9% q-o-q) Aldagi BCI 7.1% GEL 3.3 mln (-20.3% q-o-q) Other 13.9% GEL 6.6 mln (-29.2% q-o-q)

April 2011

Page 9

Analysis of recurring operating costs

Cost/Income ratio Personnel costs Employees Normalized net operating income, Profit before provisions

Consolidated

4,926 5,911 6,196 4,949 4,964 4,914 4,798 4,781 5,048 5,118 5,313 5,610 5226 3,056 3,619 3,853 2,741 2,692 2,665 2,669 2,674 2,825 2,963 3,060 3,110 3150

2,000 4,000 6,000 8,000

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

BoG Standalone Group Consolidated

25.7 27.3 28.4 23.1 22.0 23.2 22.3 22.5 23.4 25.9 27.4 27.1 25.7 5 10 15 20 25 30

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

44.4% 52.9% 60.8% 90.0% 54.9% 57.8% 59.1% 198.3% 65.3% 56.1% 58.7% 54.9% 54.4% 45.1% 41.0% 50.0% 60.7% 44.0% 50.8% 50.5% 58.0% 53.9% 49.6% 50.2% 42.9% 45.6%

0% 40% 80% 120% 160% 200% 240% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Cost/Income Ratio, Consolidated Cost Income Ratio, Bank of Georgia Standalone

36.6 37.3 36.3 38.7 37.1 34.3 34.3 30.8 29.6 34.7 39.0 44.3 43.8 45.1 40.5 33.7 8.7 36.8 34.0 32.4

(76.1)

26.4 36.2 37.3 42.9 41.5

• 80
• 60
• 40
• 20

20 40 60 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln Normalised Net Opearting Income Profit/(Loss) Before Provisions

April 2011

Page 10

Selected key ratios

Consolidated

Net interest margin Loan yields* Deposit yields Cost of funds

*Loan yields excluding provisions

8.0% 7.9% 7.1% 7.8% 8.0% 7.2% 6% 8% 10% Q1 2010 Q4 2010 Q1 2011 Net Interest Margin, Group Consolidated Net Interest Margin, BoG Standalone 7.9% 7.2% 6.6% 7.7% 6.7% 6.9% 4% 6% 8% Q1 2010 Q4 2010 Q1 2011 Deposit Yield, Group Consolidated Deposit Yield, BoG Standalone 8.6% 7.9% 7.5% 8.4% 7.7% 7.5% 6% 8% 10% Q1 2010 Q4 2010 Q1 2011 Cost of funds, Group Consolidated Cost of funds, BoG Standalone 20.1% 19.6% 19.3% 19.7% 19.8% 19.6% 18% 20% 22% Q1 2010 Q4 2010 Q1 2011 Loan Yield, Group Consolidated Loan Yield, BoG Standalone

April 2011

Page 11

Composition of assets

Consolidated

GEL million

31-December-09 31-March-2010 31-December-10 31 March-2011 Available for sale and Trading Securities 21.7 17.8 15.8 12.0 Insurance Related Assets 26.7 32.6 28.7 34.8 Investments In Other Business Entities & Investment Property 89.2 103.2 120.7 108.0 Intangible Assets Owned Net 19.7 22.2 22.2 23.1 Goodwill 65.8 68.8 69.2 69.2 Tax Assets, Current And Deferred 23.5 23.8 25.4 23.1 Prepayments And Other Assets 36.6 52.6 67.5 72.9 Total 283.1 321.0 349.4 694.6

Note: Net loans include Net finance lease receivables

343 349 321 283 283 292 276 280 2,242 2,369 1,777 1,678 352 280 249 249 674 600 322 266 156 208 178 157 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q1 2011 Q4 2010 Q1 2010 Q4 2009

Cash & Equivalents Cash with other Banks Government Treasuries & Equivalents Net Loans Property & Equipment Other Assets

GEL 5.1%of total assets 57.8% of total assets 8.5% of total assets 7.1% of total assets 14.6% of total assets 5.7% of total assets 10.3% of total assets 56.9% of total assets 8.9% of total assets 10.3% of total assets 5.4% of total assets 9.1% of total assets 57.6% of total assets 9.7% of total assets 9.6% of total assets

3,124 4,099 2,913 4,049

17.2% of total assets 3.9% of total 16.6%

• f total

55.4% of total 7.0% of total 8.6% of total assets 8.0% of total assets 6.8% of total assets 8.7% of total assets

April 2011

CB, 821 CB, 881 CB, 796 CB, 968 CB, 866 CB, 806 CB, 770 CB, 811 CB, 869 CB, 981 CB, 999 CB, 1,221 CB, 1,299 RB & WM, 790 RB & WM, 965 RB & WM, 976 RB & WM, 1,055 RB & WM, 983 RB & WM, 910 RB & WM, 887 RB & WM, 854 RB & WM, 887 RB & WM, 966 RB & WM, 1,019 RB & WM, 1,063 RB & WM, 1,047 BG Bank, 255 BG Bank, 265 BG Bank, 257 BG Bank, 194 BG Bank, 199 BG Bank, 190 BG Bank, 186 BG Bank, 177 BG Bank, 184 BG Bank, 208 BG Bank, 192 BG Bank, 200 BNB, - BNB, - BNB, 35 BNB, 36 BNB, 30 BNB, 27 BNB, 26 BNB, 24 BNB, 32 BNB, 42 BNB, 52 BNB, 77 BNB, 84

500 1,000 1,500 2,000 2,500 3,000 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 GEL mln

47% of gross loans 39% of gross loans 46% of gross loans 42% of gross loans 43% of gross loans 44% of gross loans 48% of gross loans 42% of gross loans 48% of gross loans 44% of gross loans 48% of gross loans 42% of gross loans 42% of gross loans 48% of gross loans 42% of gross loans 49% of gross loans 44% of gross loans 46% of gross loans 44% of gross loans 45% of gross loans 45% of gross loans 44% of gross loans 45% of gross loans 46% of gross loans 1,855.7 1,957.3 1,851.9 1,825.7 1,897.3 2,039.5 2,189.4 2,059.7 2,106.7 2,546.3 2.,228.4 2,179.7 2,361.3 55% of gross loans 44% of gross loans Page 12

Gross loan book breakdown

Consolidated

Georgia: RB & WM, CB Ukraine: BG Bank Belarus: BNB Numbers do not include CC/Eliminations

Gross loan book Q1 2011: GEL 2,361.3 million

+20.6%

April 2011

Page 13

Liabilities breakdown

Consolidated

GEL million 31-December-09 31-March-2010 31-December-10 31 March-2011 Issued Fixed Income Securities 0.7

• 21.3

96.5 Insurance Related Liabilities 34.2 42.7 37.1 43.1 Tax Liabilities, Current And Deferred 25.2 27.3 40.8 24.6 Accruals And Other Liabilities 46.6 57.8 68.4 68.5 Other liabilities 106.8 127.8 167.6 232.7

Total liabilities 31 March 2011: GEL 3,311.7 million

136 215 78 22 1,977 2,011 1,394 1,272 966 1,012 912 913 233 168 128 107 738 693 612 598 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q1 2011 Q4 2010 Q1 2010 Q4 2009

GEL mln

Total equity Other Liabilites Borrowed Funds Client Deposits Deposits And Loans From Banks

20% of total liabilities + equity 4% of total liabilities + equity 29% of total liabilities + equity 45% of total 3% of total liabilities + equity 17% of total liabilities + equity 4% of total liabilities + equity 25% of total liabilities + equity 49% of total liabilities + equity 5% of total liabilities + equity 21% of total liabilities + equity 4% of total liabilities + equity 31% of total liabilities + equity 44% of total liabilities + equity 1% of total liabilities + equity

4,049 4,099 3,124 2,913

18% of total liabilities + equity 3% of total liabilities + equity 49% of total liabilities + equity 24% of total liabilities + 6% of total liabilities + equity

April 2011

Page 14

Client deposits breakdown

Consolidated

Client deposits Q1 2011: GEL 1,977 million

Note: RB & WM client deposits include deposits at BG Capital

Georgia: RB & WM, CB Ukraine: BG Bank Belarus: BNB

Numbers do not include CC/Eliminations

CB , 652 CB , 681 CB , 576 CB , 626 CB , 605 CB , 518 CB , 597 CB , 588 CB , 656 CB , 683 CB , 799 CB , 1,006 CB , 1,066 RB & WM, 458 RB & WM, 534 RB & WM, 396 RB & WM, 419 RB & WM, 374 RB & WM, 391 RB & WM, 461 RB & WM, 539 RB & WM, 595 RB & WM, 660 RB & WM, 708 RB & WM, 803 RB & WM, 900 BG Bank, 216 BG Bank, 180 BG Bank, 171 BG Bank, 127 BG Bank, 121 BG Bank, 115 BG Bank, 117 BG Bank, 139 BG Bank, 122 BG Bank, 142 BG Bank, 155 BG Bank, 197 BNB , 27 BNB , 31 BNB , 25 BNB , 16 BNB , 18 BNB , 20 BNB , 12 BNB , 16 BNB , 18 BNB , 30 BNB , 37

200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln CB RB & WM BG Bank BNB

34% of client deposits 49% of client deposits 35% of client deposits 49% of client deposits 38% of client deposits 49% of client deposits 35% of client deposits 52% of client deposits 33% of client deposits

1,326 1,395 1,202 1,193 1,133

38% of client deposits 51% of client deposits

1,025 1,183

53% of client deposits

1,272

50% of client deposits 39% of client deposits 46% of client deposits 42% of client deposits 47% of client deposits 43% of client deposits

1,394 1,487

44% of client deposits 46% of client deposits

1,638

49% of client deposits 43% of client deposits

2,011

40% of client deposits 50% of client deposits

1,977

54% of client deposits 46% of client deposits

April 2011

Capital adequacy & wholesale funding

April 2011

Page 16

Capital adequacy

Risk-weighted assets BIS vs. NBG NBG capital adequacy ratios, BoG standalone BIS capital adequacy ratios, BoG consolidated Net loans/deposits & loans/(deposits+equity), BoG consolidated

18.3% 15.8% 18.2% 16.6% 16.4% 17.8% 20.4% 19.7% 17.7% 15.8% 15.2% 13.0% 12.7% 16.3% 15.1% 15.5% 13.5% 17.4% 18.4% 21.2% 16.8% 15.9% 14.5% 15.7% 14.5% 15.6%

0% 5% 10% 15% 20% 25%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio 132.6% 135.7% 145.7% 163.6% 161.2% 164.1% 135.4% 129.6% 120.7% 116.2% 111.8% 106.4% 106.1% 85.8% 89.5% 93.5% 104.5% 100.7% 98.5% 85.3% 88.6% 85.3% 84.2% 81.8% 81.1% 78.6%

0% 20% 40% 60% 80% 100% 120% 140% 160% 180%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Net Loans/Total Deposits Net Loans/(Total Deposits+Equity) 2,593 2,734 2,516 2,951 2,730 2,609 2,592 2,455 2,628 2,880 2,978 3,460 3,603 3,100 3,605 3,132 3,458 3,302 3,041 2,720 2,717 2,870 3,128 3,272 3,801 4,192

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

BIS NBG

25.2% 25.0% 24.7% 22.5% 22.6% 23.5% 25.0% 22.4% 21.9% 20.3% 20.2% 17.5% 18.0% 25.8% 25.8% 25.3% 27.3% 34.3% 35.6% 36.4% 34.7% 34.6% 32.7% 31.6% 26.6% 28.8%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

April 2011

Page 17

International borrowings

International borrowings repayment schedule International borrowings - fixed vs. floating rates, 31 March 2011 Selected international loans International borrowings by currencies, 31 March 2011

Note: Depicts final maturity dates; Excluding credit lines as part of documentary business

20,657 245,062 80,210 36,373 28,064 14,974 14,475 18,638 100,000 0.9% 10.6% 3.5% 1.6% 1.2% 0.6% 0.6% 0.8% 4.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 50,000 100,000 150,000 200,000 250,000 300,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 US$ '000s Principle Amounts Outstanding as of 31 March 2011 (LHS) As % of 31 March 2011 Assets (RHS)

US$, 100% Fixed Interest Rate, 67% Floating Interest Rate, 33%

Key Lenders Principle Amount Outstanding as of 31 March 2011 Maturity mil US$ Eurobonds US$ 147.7 million 2012 147.7 Senior Term Loan from IFC US$ 41.7 million 2013 41.7 Senior Term Loan from FMO US$ 6.8 million 2014 6.8 Senior Term Loan from EBRD US$ 42.9 million 2014 42.9 Senior Term Loan from EBRD US$ 20.0 million 2015 20.0 Senior Term Loan from WorldBusiness Capital US$ 5.3 million 2016 5.3 Subordinated Loan from HBK Investments (Call in 2012) US$ 15.0 million 2017 15.0 Subordinated Loan from Merrill Lynch (Call in 2012) US$ 35.0 million 2017 35.0 Senior Term Loan from WorldBusiness Capital (GLC) US$ 3.9 million 2017 3.9 Subordinated loan from FMO and DEG (Call in 2013) US$ 30.0 million 2018 30.0 Senior Loan from OPIC US$ 25.0 million 2018 25.0 Subordinated Loan from OPIC US$ 10.0 million 2018 10.0 Senior Term Loan from ADB US$ 25.0 million 2018 25.0 Senior Term Loan from EFSE US$ 50.0 million 2018 50.0 Subordinated Loan from IFC US$ 24.0 million 2019 24.0 Subordinated Loan from EBRD US$ 24.0 million 2019 24.0 Convertible Loan from IFC US$ 26.0 million 2019 26.0 Convertible Loan from EBRD US$ 26.0 million 2019 26.0 Other, USD denominated US$ 0.3 million NMF 0.3 Total US$ 558.5 million 558.5

April 2011

Business overview

April 2011

Page 19

Group structure

Bank of Georg rgia ia Group up

Comme mercia rcial l Banking ng Georgia rgia

Belarus rus Corporate rate Banking Retail l Banking Wealth h Managemen ent BNB BG Capital al Aldagi BCI BCI JSC “Bank of Georgia” Georgia ia Ukraine Belarus rus Georgia ia

Securi rities ties Insu surance rance

Israel UK

April 2011

BoG standalone results overview

April 2011

Personnel costs, 54.5% GEL 18.6 mln (+1.5% q-o-q) Selling, general & administrative expenses, 19.3% GEL 6.6 mln (+2.1% q-o-q) Procurement &

• perations

support expenses, 8.4% GEL 2.9 mln (+10.3 q-o-q) Depreciation & amortization, 14.6% GEL 5.0 mln (-10.2% q-o-q) Other operating expenses, 3.2% GEL 1.1 mln (-13.7% q-o-q) Page 21

BoG standalone performance

Net income Recurring operating cost structure, Q1 2011 Revenue performance Cost/Income Ratio

Standalone

25.4 28.4 (58.0) 28.8 11.3 0.9 10.8 7.8 12.8 24.4 23.9 30.0 31.5

• 70
• 60
• 50
• 40
• 30
• 20
• 10

10 20 30 40

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 21010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

45.1% 41.0% 50.0% 60.7% 44.0% 50.8% 50.5% 58.0% 53.9% 49.6% 50.2% 42.9% 45.6% 44.5% 44.7% 47.3% 43.1% 43.2% 47.7% 48.9% 54.0% 51.8% 47.0% 47.7% 42.7% 43.8%

0% 10% 20% 30% 40% 50% 60% 70%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Cost/income, Bank of Georgia standalone Normalized Cost/Income, Bank of Gerorgia standalone 45.3 50.1 52.2 51.1 50.4 45.5 44.5 44.8 42.6 48.3 52.3 55.0 55.2 21.3 21.0 19.2 18.5 16.3 16.8 17.0 17.5 16.8 20.8 22.5 25.3 23.0

66.6 71.1 71.4 69.6 66.6 62.3 61.5 62.3 59.4 69.1 74.7 80.3 78.2 10 20 30 40 50 60 70 80 90

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Net Interest Income Net Non-Interest Income

April 2011

Page 22

Composition of assets

Standalone

GEL Million

Q4 2009 Q1 2010 Q4 2010 Q1 2011

Investments In Other Business Entities & Investment Property 334.1 356.1 417.4 242.7 Intangible Assets Owned, Net 14.3 16.9 17.0 20.4 Goodwill 22.8 22.7 22.7 22.7 Tax Assets, Current And Deferred 6.6 6.1 6.6 13.6 Prepayments And Other Assets 25.8 23.9 31.4 35.8 Other assets 403.7 425.7 495.2 686.8

335 495 426 404 228 228 216 226 2,215 2,203 1,700 1,606 352 280 249 249 668 589 314 223 136 152 127 134 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Q1 2011 Q4 2010 Q1 2010 Q4 2009

GEL mln

Cash & Equivalents Cash with other Banks Government Treasuries & Equivalents Net Loans Property & Equipment Other Assets

4% of total assets 15% of total assets 56% of total assets 6% of total assets 13% of total assets

3,935 2,842

5% of total assets 8% of total assets 57% of total assets 8% of total assets 14% of total assets

3,948

4% of total assets 10% of total assets 56% of total assets 7% of total assets 14% of total assets

3,033

17% of total assets 56% of total assets 17% of total assets 6% of total assets 3% of total assets 9% of total assets 8% of total assets 7% of total assets 9% of total assets

April 2011 1,286.9 37.7 1,008.9 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Q1 2011

GEL mln

CB RB WM 2,333.5

Page 23

Loan book composition

Standalone

* Other loans include car, POS and legacy retail loans

Mortgage loans, 35% Consumer and

• ther, 30%

Credit cards and overdrafts, 12% Micro loans, 20% SME, 3%

RB & WM loan book breakdown, Q1 2011 CB loan book breakdown, Q1 2011

Trade, 21% Energy, 11% FMCG, 12% Construction & Real Estate, 20% Industry & State, 15% Pharmaceutical s and Healthcare, 9% Other, 13%

April 2011

Page 24

Analysis of the loan book

Loans by maturity, 31 March 2011 Loan concentration Loans by currency, 31 March 2011 Loan book collateralization

Standalone

38.5% 14.3% 25.2% 61.5% 85.7% 74.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% RB & WM CB Total

GEL Foreign Currency

3% 4% 8% 17% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% Less than 1 month 1 to 3 months 3 to 6 months 6 to 12 months Over 1 year 12.9% 15.8% 19.6% 22.2% 0% 5% 10% 15% 20% 25% Q1 2010 Q1 2011

Top 10 Borrowers Top 20 Borrowers

87.7% 87.6% 0% 20% 40% 60% 80% 100% Q1 2010 Q1 2011

April 2011

Page 25

Provisioning

Reserve for loan losses to gross loans NPL coverage ratio NPLs & write-offs, 31 March 2011 Impairment seasoning

Standalone

NPLs include 90 days overdue loans, including principal amount and interest payments 5.5% 1.6% 3.8% 0.1% 1.0% 0.5% 0% 1% 2% 3% 4% 5% 6% CB RB & WM Total

Write-offs as % of Gross Loans NPLs as % of Gross Loans

166.8% 117.6% 524.0% 152.6% 110.4% 96.7% 106.5% 115.2% 100.7% 106.5% 139.6% 148.1% 135.2% 208.4% 138.3% 554.4% 169.1% 116.1% 99.3% 118.8% 124.1% 106.6% 113.5% 146.1% 151.0% 132.2%

0% 100% 200% 300% 400% 500% 600%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

BoG Standalone BoG Consolidated

2.1% 2.1% 6.3% 5.0% 6.3% 7.8% 9.1% 9.4% 9.2% 9.0% 8.6% 7.0% 5.1% 1.9% 2.0% 6.8% 4.9% 5.5% 6.7% 7.5% 7.4% 7.5% 6.9% 6.5% 5.2% 5.1% 1.7% 1.5% 19.8% 2.0% 6.1% 8.4% 6.4% 6.7% 1.6% 2.4% 2.6% 1.8% 0.8% 1.7% 2.0% 22.8%

• 1.0%

5.0% 6.7% 4.2% 4.3% 2.8% 1.4% 2.0% 1.8% 1.0%

• 5%

0% 5% 10% 15% 20% 25% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

Q1 2008 Q3 2008 Q1 2009 Q3 2009 Q1 2010 Q3 2010 Q1 2011 Reserve for loan losses to Gross loans, BoG Consolidated Reserve for loan losses to Gross loans, BoG Standalone Cost of risk, BoG Consolidated, annualised

4.88% 3.88% 1.34% 2.18% 2.07% 1.67% 0.52% 0.17% 0.11% 0.23% 1.44% 1.18% 1.65% 0.04% 0.76% 1.11% 2.44% 3.29% 0.33% 0.36% 548.3 604.0 327.6 300.9 179.8 200.9 239.1 439.3 356.7 501.1 485.9 908.6 427.2

200 400 600 800 1000 0% 1% 2% 3% 4% 5% 6% 7%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

NPLs as % of Loans Issued (LHS) Write-Offs as % of Loans Issued (LHS) Loans Issued (RHS)

April 2011

Page 26

Provisioning cont’d – BoG standalone

CB loan loss reserve breakdown by industries, 31 March 2011 NPLs Loan loss reserve RB & WM loan loss reserve breakdown by loan type, 31 March 2011

Standalone

14.5 22.2 29.8 51.7 62.3 75.5 77.1 74.7 76.7 83.2 72.4 51.2 40.9 16.3 10.8 83.6 46.4 40.3 39.4 46.3 53.6 61.0 54.4 62.4 69.1 77.5 1.9% 2.0% 6.8% 4.9% 5.5% 6.7% 7.5% 7.4% 7.5% 6.9% 6.5% 5.2% 5.1%

0% 1% 2% 3% 4% 5% 6% 7% 8% 20 40 60 80 100 120 140 160

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

RB & WM CB Loan loss reserve as % of gross loans

8.1 9.7 12.0 33.3 50.2 65.7 54.1 35.5 67.0 69.8 59.8 27.0 17.1 10.9 22.4 11.3 24.4 42.8 53.1 61.8 75.8 69.8 59.4 36.8 54.2 70.5 1.2% 1.7% 1.3% 3.2% 5.0% 6.9% 7.0% 6.4% 7.4% 6.5% 4.7% 3.5% 3.8%

0% 1% 2% 3% 4% 5% 6% 7% 8% 20 40 60 80 100 120 140 160

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

RB &WM CB % of Gross loans

19.0 129.2 136.8 111.3 115.9 118.8 93.0 57.7 23.3 32.1 96.5 81.2 87.6 Trade, 21.9% GEL (17.0 mln) Energy, 14.6% GEL (11.3 mln) Fast Moving Consumer Goods, 5.8% GEL (4.5 mln) Construction & Real Estate 38.6% GEL (29.9 mln) Industry & State 1.3% GEL (1.0 mln) Pharmaceutic als & Healthcare, 0.9% GEL (0.7 mln) Other, 16.9% GEL (13.1 mln)

SME, 3.4% GEL (1.4 mln) Mortgage loans, 28.1% GEL (11.5 mln) Consumer and other, 22.7% GEL (9.3mln) Credit cards and

• verdrafts ,

37.2% GEL (15.2 mln) Micro loans, 8.7% GEL (3.6 mln)

April 2011

Page 27

BoG standalone liabilities

Leverage ratio, BoG standalone NBG Liquidity ratio, BoG standalone

Standalone

Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date NBG Liquidity ratio is calculated by dividing liquid assets per NBG by Total liabilities per NBG

737 159 951 1,967 121 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 31-Mar-11

GEL mln Deposits And Loans From Banks Client Deposits Borrowed Funds Other Liabilities Total Shareholders Equity 19% of Total Liabilities + equity 3% of Total Liabilities + equity 50% of Total Liabilities + equity 24% of Total Liabilities + equity

3,945

4% of Total Liabilities + equity 2.9 3.1 3.1 3.3 3.1 2.8 2.8 2.8 3.0 3.2 3.3 3.7 4.3

1 2 3 4 5

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

34.2% 33.8% 27.2% 27.3% 37.7% 38.0% 43.5% 35.6% 38.8% 34.8% 33.8% 34.7% 44.5%

0% 10% 20% 30% 40% 50%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

April 2011

Page 28

Analysis of deposits

CB, RB & WM deposits, BoG standalone Client deposits by currency, 31 March 2011 Client deposit breakdown, 31 March 2011 Deposits by maturity, 31 March 2011

Standalone

Corporate current accounts, 37.0% Individual time & demand deposits, 37.7% Corporate time & demand deposits, 17.3% 0Individual current accounts, 8.1% 22.9% 46.9% 2.9% 32.9% 77.1% 53.1% 97.1% 67.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

RB CB WM Total

GEL Foreign Currency

57% 0.1% 4% 7% 19% 13% 0% 10% 20% 30% 40% 50% 60%

On Demand Less than 1 month 1 to 3 months3 to 6 months 6 to 12 monthsOver 1 year

280.4 283.1 326.3 376.1 414.7 448.6 488.0 540.9 609.5 93.3 107.8 134.4 163.1 180.7 211.2 218.7 261.6 290.8 605.2 518.4 596.7 587.6 656.1 682.5 799.4 1,006.0 1,066.2

500 1,000 1,500 2,000 2,500

Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 GEL mln

RB Client Deposits WM Client Deposits CB Client Deposits

+1% +15 +25% +15% +10% +15% +12% +11%

• 2%

+15%

• 14%

+17% +8% +17 +9% +21% +4% +4% +11% +26 +20 +6% +13% +11%

April 2011

Page 29

Deposit yields

Standalone

9.1% 8.2% 8.1% 8.0% 10.4% 8.6% 9.1% 9.6% 10.5% 10.3% 9.9% 10.3% 9.5% 10.0% 3.8% 4.0% 5.4% 5.6% 5.0% 7.7% 8.4% 8.0% 8.3% 7.2% 7.1% 5.8% 6.2% 7.1% 5.8% 5.7% 6.6% 6.7% 7.0% 7.5% 8.0% 8.4% 8.5% 7.7% 7.3% 6.6% 6.7% 6.9% 0% 2% 4% 6% 8% 10% 12% Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

RB Deposit Yields, BoG Standalone CB Deposit Yields, BoG Standalone Blended Deposit Yields, BoG Standalone

April 2011

Page 30

Risk management

Currency risk management, 31 March 2011 Liquidity risk management, 31 March 2011

Standalone

16.0% 3.8% 6.2% 1.7% 4.1% 3.5% 0.8% 5.8% 6.0% 0.6% 1.5% 3.9% 13.0% 7.35% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11

Open Foreign Currency Position (as % of Regulatory Capital) 984.7 358.4 623.2 1,004.7 295.1 29.2 1,295.1 205.5 908.1 370.3 397.7 (310.4) (157.4) (442.4) 192.0 89.5 118.7

• 600
• 400
• 200

200 400 600 800 1,000 1,200 1,400

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

April 2011 Trade, 21% Energy, 11% FMCG, 12% Construction & Real Estate, 20% Industry & State, 15% Pharmaceuticals and Healthcare, 9% Other, 13%

826 875 794 928 870 806 765 880 951 1,016 1,039 1,260 1,287

200 400 600 800 1,000 1,200 1,400

Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11

GEL mln

Page 31

Corporate banking

Corporate client deposits, 31 March 2011 Corporate loan portfolio, 31 March 2011 Overview Corporate gross loan portfolio growth

Standalone

Integrated client coverage in the following key sectors Construction & Real Estate Energy Fast Moving Consumer Goods Financial Institutions Foreign Organizations & Diplomatic Missions Pharmaceuticals & Healthcare Retail & Wholesale Trade State & Industry Telecommunica tions, Media & Technology Transport & Logistics No.1 corporate bank in Georgia Circa 40% market share based on customer deposits(1) Circa 36% market share based on corporate loans(2) Integrated client coverage in key sectors 9,339 clients served by dedicated relationship bankers Circa 48% market share in trade finance and documentary

• perations(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 1,737 in Q4 2010 to 1,890 in Q1 2011 More than 500 corporate accounts were opened at the bank in Q1 2011, bringing the total number of current accounts to 32,712

Notes: (1) source: National Bank of Georgia, does not include interbank deposits (2) Management estimates (based on the NBG data)

Total corporate deposits: GEL 1,066 mln +35.3%

Current Accounts & Demand Deposits, 82% Time Deposits, 18%

April 2011

Page 32

Retail Banking – No. 1 retail bank in Georgia

Leadership in consumer lending RB loan portfolio, 31 March 2011 Retail loans originated Retail gross loan portfolio growth

Standalone

Total retail loans: GEL 1,099 mln

Note: does not include Ukraine & Belarus

Q1 2010 Q4 2010 Q1 2011

• Number of Retail Clients

811,086 823,859 845,391

• Number of consumer loans outstanding

50,335

67,243 71,440

• Volume of consumer loans outstanding (GEL mln)

116.7

162.3 168.9

• Credit Cards Outstanding, of which

83,580 106,809 105,354

• American Express cards

7,144 58,711 67,499

• Number of Solo clients outstanding, (premier banking)

410 2,303 2,683

266.9 317.6 140.2 74.9 55.9 68.8 97.5 104.9 128.2 186.9 211.3 226.0 196.4

50 100 150 200 250 300 350 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1' 10 Q2' 10 Q3 '10 Q4 '10 Q1 '11

GEL mln

4Mortgage loans, 35% Consumer and

• ther, 29%

Credit cards and

• verdrafts,

12% Micro loans, 21% SME, 4%

755 922 931 1,000 932 861 831 807 847 930 978 1,023 1,009

• 200

400 600 800 1,000 1,200 Q1 '08 Q2 '08 Q3 '09 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11

GEL mln

April 2011

Page 33

Retail loan book analysis

Micro loans (RB & WM) Consumer loans (RB & WM) Mortgage loans (RB & WM) Other RB & WM loans

Standalone

27.0 385.1 35.4 391.7 28.2 365.0

• 50

100 150 200 250 300 350 400 450

Volume of Mortgage Loans Originated Volume of Mortgage Loans Outstanding

GEL mln

Q1 2010 Q4 2010 Q1 2011

• 7%

+31% -20% +2%

48.7 121.6 88.1 178.8 69.3 186.6

• 20

40 60 80 100 120 140 160 180 200

Volume of Consumer Loans Originated Volume of Consumer Loans Outstanding

GEL mln

Q1 2010 Q4 2010 Q1 2011

• 21%

+81% +47% +4%

51.6 120.7 102.9 238.3 93.5 248.7

• 50

100 150 200 250 300 Volume of Micro Loans Originated Volume of Micro Loans Outstanding

GEL mln

Q1 2010 Q4 2010 Q1 2011

+100% +97%

• 9%

+4%

2.8 259.7 15.4 249.6 9.8 246.3

• 50

100 150 200 250 300 Volume of Other RB & WM Loans Originated* Volume of Other RB & WM Loans Outstanding

GEL mln

Q1 2010 Q4 2010 Q1 2011

+457%

• 4%
• 37%
• 1%

April 2011

Page 34

Deposit analysis

Number of RB & WM time deposits accepted Volume of deposits outstanding (CB) Volume of deposits outstanding (RB & WM) Volume of RB & WM time deposits accepted

Standalone

410.4 363.3 349.9 350.2 382.3 322.9 403.2 370.0 435.5 475.2 542.3 665.1 726.8 53.6 39.2 26.8 90.2 69.3 79.2 74.2 78.1 75.1 71.7 104.6 113.2 145.7 188.7 279.0 199.5 185.8 153.6 116.3 119.3 139.4 145.6 135.6 152.5 227.6 193.8 200 400 600 800 1000 1200 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Volume of CB time deposits outstanding Volume of CB demand deposits outstanding Volume of CB current accounts outstanding

121.7 125.9 119.1 100.2 94.8 99.0 112.8 113.7 116.7 128.4 159.8 163.8 184.8 8.0 16.9 16.2 25.8 20.0 34.9 40.6 34.6 40.7 33.0 36.0 120.0 55.8 50 100 150 200 250 300

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Volume of RB time deposits issued Volume of WM time deposits issued

10,912 17,136 17,855 19,403 12,051 15,312 18,322 18,739 19,092 18,629 21,056 24,546 24,185

• 5,000

10,000 15,000 20,000 25,000 30,000 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 169.9 185.3 120.9 98.1 95.2 93.6 102.5 118.8 128.5 139.4 134.2 140.8 159.3 39.2 36.9 18.6 18.0 16.3 20.7 34.8 43.1 50.1 62.8 71.0 73.8 74.5 231.1 262.9 257.0 302.9 262.2 276.6 323.4 377.4 416.8 457.7 502.6 588.0 666.5 100 200 300 400 500 600 700 800 900 1000 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Volume of RB & WM time deposits outstanding Volume of RB & WM demand deposits outstanding Volume of RB & WM current accounts outstanding

April 2011

Page 35

Card processing

Cars transaction authorizations by Georgian Card Number of cards serviced by Georgian Card Client banks Georgian Card’s revenue & assets

Standalone

• 56% ownership of

Georgian Card 2.9 4.2 5.0 6.6 7.2 8.5 8.6 9.0 8.4 7.7 7.2 7.8 7.4 8.0 8.0 9.3 8.7

1 2 3 4 5 6 7 8 9 10

Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 mln 2.6 3.1 3.3 3.8 4.0 4.0 4.0 4.2 4.7 4.7 5.5 5.5 5.5 5.4 5.6 5.3 5.2 0.5 0.4 1.7 1.0 1.1 2.2 1.1 1.3 1.2 1.1 1.4 1.5 1.2 1.4 1.3 1.4 1.2

1 2 3

1 2 3 4 5 6 Mar-07 Sep-07 Mar-08 Sep-08 Mar-09 Sep-09 Mar-10 Sep-10 Mar-11

GEL mln

Total Assets (LHS) Revenue (RHS)

337 437 460 649 721 776 774 658 636 582 539.0 541 525 496 520 589 605 119 138 247 227 256 278 304 256 262 227 230 236 227 186 175 132 137 456 575 706 876 978 1054 1078 914 897 809 769 777 753 681 695 720 743

200 400 600 800 1,000 1,200 1,400

Mar- 07 Jun- 07 Sep- 07 Dec- 07 Mar- 08 Jun- 08 Sep- 08 Dec- 08 Mar- 09 Jun- 09 Sep- 09 Dec- 09 Mar- 10 Jun- 10 Sep- 10 Dec- 10 Mar- 11 '000s

Bank of Georgia Other Banks

April 2011

Page 36

Analysis of mortgage portfolio

Typical mortgage terms Volume of mortgage loans outstanding, (RB & WM) Number of mortgage loans issued & outstanding, (RB &WM) Volume of mortgage loans issued, (RB & WM)

Standalone

Rate: 13% - 15% Tenor: Normally 6-120 months Currency: US$ LTV: Normally 75% - 90%

81.3 96.1 32.5 18.5 10.1 11.5 23.1 23.4 27.0 46.7 58.7 35.4 28.2 20 40 60 80 100 120 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

1,426 1,915 850 691 231 259 423 437 492 817 766 694 475 5,340 6,881 7,476 7,967 8,057 8,027 8,032 8,127 8,240 8,415 8,642 8,570 8,330

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Number of mortgage loans issued Number of mortgage loans outstanding 245.5 312.0 325.9 389.3 386.5 373.7 372.2 370.5 385.1 406.1 415.0 391.7 365.0 50 100 150 200 250 300 350 400 450

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

April 2011

Page 37

Wealth Management (WM) performance review

WM loans, 31 March 2011 WM deposits WM clients and client assets WM deposits

Standalone

Notes: WM 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

104.0 77.8 101.5 98.5 114.9 148.0 183.4 205.6 235.7 247.2 298.6 324.1 1,382 1,384 1,387 1,341 1,358 1,364 1,429 1,444 1,454 1,331 1,272 1,184

200 400 600 800 1,000 1,200 1,400 1,600 50 100 150 200 250 300 350 400 450 Q2 '08 Q3 '08 Q4 '08 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11

US$ mln

Private Banking Client Assets (LHS) Private Banking Clients (RHS)

Mortgage Loans, 48.0% Consumer Loans, 46.9% Credit Cards & Overdrafts, 3.3% Car Loans, 1.8% Current Accounts & Demand Deposits, 16.5% Time Deposits, 83.5% 49.5 31.5 35.7 35.1 38.4 47.9 52.1 57.2 62.9 56.7 48.3 48.0

32.1 39.0 62.8 58.2 69.4 86.6 111.0 123.4 148.4 162.1 213.3 242.8 50 100 150 200 250 300 350 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Time Deposits Current Accounts & Demand Deposits

211 71 82 181 163 134 108 93 99 219 262 291

April 2011

Belarusky Narodny Bank (BNB), Belarus

April 2011

Page 39

BNB performance

Net income Costs Revenue growth Cost/Income Ratio BNB

1.1 1.0 1.0 1.4 1.6 2.3 2.3 2.2 2.5 2.7 0.8 1.4 0.8 0.7 0.6 0.6 0.6 1.0 1.1 1.5 10.8% 10.9% 10.9% 16.6% 12.7% 14.9% 14.1% 12.1% 10.6% 11.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 1 2 3 4 5

Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

Net Interest Income Net Non Interest Income Net Interest Margin, annualized 1.7 2.4 1.9 2.1 2.2 2.9 3.0 3.2 3.6 4.2 1.8 3.1 0.4 0.1

1 2 3 4 Q1 2010 Q1 2011

GEL mln

Provision Expense Recurring Operating Costs (0.3) 0.7 0.2 0.6 (0.9) 0.5 0.6 0.8 0.5 0.8

(1.0) (0.8) (0.6) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

80.4% 61.5% 84.6% 66.6% 90.7% 60.6% 67.8% 68.5% 86.1% 74.7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

April 2011 9Consumer and other*, 98.8% Mortgage loans, 0.1% Card

• verdrafts,

1.0% Trade, 46% Construction & real estate, 11% Industry & state, 34% Other, 10% RB, 13% CB, 87%

Page 40

BNB loan portfolio as at 31 March 2011

RB loan portfolio breakdown Loan loss reserve Loan portfolio breakdown CB loan portfolio breakdown

Gross loans: GEL 84 mln RB loans: GEL 9mln

* Other loans include car, POS and legacy retail loans

Loan loss reserve: GEL 0.9 mln CB loans: GEL 75 mln

BNB

RB, 11% CB, 89%

April 2011

Page 41

BNB client deposits as at 31 March 2011

Client deposits breakdown BNB

10,014 27,130

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Jan-00

GEL '000

CB Deposits Outstanding RB Deposits Outstanding

Current Accounts Outstanding , 44.3% Demand Deposits Outstanding , 1.3% Time Deposits Outstanding , 54.3%

April 2011

Insurance

April 2011

Page 43

Aldagi BCI

Recurring operating costs Revenue Gross premiums written/Net premiums earned Net Income/Loss Aldagi BCI

19,009 11,534 18,734 12,287 12,366 12,700

(500) 2,500 5,500 8,500 11,500 14,500 17,500 20,500 Q1 2010 Q4 2010 Q1 2011

GEL ‘000

Gross Premiums Written Net Premiums Earned

656 1,699 1,640 (277) 1,060 871 1,331 1,759 1,222 (500)

• 500

1,000 1,500 2,000 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL '000

3.4 6.3 6.1 4.9 4.6 6.0 4.2 5.5 5.0

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 Q1 2009Q2 2009Q3 2009Q4 2009Q1 2010Q2 2010Q3 2010Q4 2010Q1 2011

GEL mln

2.9 4.0 3.8 3.7 3.1 4.9 2.5 4.2 3.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Q1 2009Q2 2009Q3 2009Q4 2009Q1 2010Q2 2010Q3 2010Q4 2010Q1 2011

GEL mln

April 2011

BG Capital

April 2011

Page 45

BG Capital

Proprietary book Net income/(loss) Revenue Headcount BG Capital

1.6 (1.0) (1.9) (2.8) (0.5) 0.9 1.1 1.1 2.9 0.9 (0.6) (0.7) (2.0)

(4) (3) (2) (1) 1 2 3 4

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

(2.6) (2.3) (4.6) (1.6) 0.2 (1.7) (1.6) 0.8 (1.1) (2.4) (2.3) (3.2)

(5) (4) (3) (2) (1) 1 2

Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

19,276 36,968 3,912 2,588 1,364 2,790 5,289 5,285 5,334 1,685 4,734 1,559 3,591

• 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 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

20 22 22 18 15 16 13 13 15 15 13 13 13 38 43 34 27 24 27 31 28 15 18 15 13 18 58 65 56 45 39 43 44 41 30 33 28 26 31 10 20 30 40 50 60 70 80 90 100 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

GEL mln

BG Capital Georgia BG Capital Ukraine

April 2011

Page 46

Contact

Irakli Gilauri Chief Executive Officer +995 32 444 109 igilauri@bog.ge Macca Ekizashvili Head of Investor Relations Head of Representative Office, London 84 Brook St, London, W1K 5EH +44 203 178 4052 ir@bog.ge Giorgi Chiladze Deputy CEO, Finance +995 32 444 249 gchiladze@bog.ge

April 2011

Appendices

April 2011

Bank of Georgia shareholder structure & management

April 2011

Page 49

Ownership structure

Supervisory board Ownership structure, 31 December 2010 Management board

Broadly owned by

• ver 100

institutional accounts

Irakli Gilauri Chief Executive Officer (CEO) Sulkhan Gvalia Deputy CEO, Chief Risk Officer George Chiladze Deputy CEO, Finance Irakli Burdiladze Deputy CEO Mikheil Gomarteli Deputy CEO, Retail Banking Avto Namicheishvili Deputy CEO, Legal Archil Gachechiladze Deputy CEO, Corporate banking Nikoloz Shurgaia Deputy CEO, International Banking Murtaz Kikoria Deputy CEO Vasil Revishvili Head of Wealth Management Neil Janin Chairman of the Supervisory Board David Morrison Vice Chairman of the Supervisory Board, independent member Ian Hague Member, Firebird Management LLC Hanna Loikkanen Member, East Capital Kaha Kiknavelidze Independent member Allan J. Hirst Independent member Al Breach Independent member

GDR Holders*, 88.1% Local Shares Held by Institutional Shareholders, 5.3% Management & Employees** , 3.3% Local Shares Held by Domestic and Foreign Retail Shareholders, 3.2%

31-Dec-11 Number % GDR Holders* 27,627,777 88.1% Local Shares Held by Institutional Shareholders 1,670,990 5.3% Management & Employees** 1,047,488 3.3% Local Shares Held by Domestic and Foreign Retail Shareholders 998,605 3.2% Total Shares Outstanding 31,344,860 100% Adjusted for BG Capital's Proprietary Book (1 ) (1,693) Adjusted Total Shares Outstanding 31,322,773 (1) Treated as treasury shares as per IFRS *through BNY Nominees Limited ** includes GDRs held as part of EECP

April 2011

Page 50

Analyst coverage

Analyst Email Andrzej Nowaczek andrzej.nowaczek@uk.ing.com Analyst Email David Nangle Dnangle@rencap.com Analyst Email Mikhail Shlemov mikhail.shlemov@vtbcapital.com Analyst Email Thomas Stögner thomas.stoegner@macquarie.com Analyst Email Renat Syzdykov res@visocap.com

April 2011

Georgian banking sector – key trends 2008- Q1 2011

April 2011

Page 52

Georgian banking sector – key trends 2008/2010

Growth Market Share Market Share Market Share March 2011 (YE 2009) (YE 2010) GEL mln YE 2009 YE 2010 March 2011 As % of GDP* 2009 Y-O-Y 2010 Y-O-Y Q1 2011 Q-O-Q Top 5 Banks Bank of Georgia Top 5 Banks Bank of Georgia Top 5 Banks Bank of Georgia Total Assets 8,293 10,564 10,682 51.4%

• 6.5%

27.4% 1.1%

78.1% 33.0%

78.1% 36.2% 78.1% 35.7%

Gross Loans 5,185 6,261 6,359 30.6% -13.5%

20.7% 1.6%

81.4% 31.8%

82.8% 35.9% 82.4% 35.3%

Deposits 4,174 5,818 5,648 27.2% 8.6%

39.4% 2.2% 77.70%

27.4%

80.1% 32.6% 80.9% 33.9%

Equity 1,517 1,788 1,751 8.4% 0.0%

17.8%

• 2.1% 79.60%

38.6%

78.8% 40.5% 77.8% 36.1%

Net Income/(Loss) (65.3) 156.3 44.0 0.2% NMF

NMF NMF

NMF 37.3%

NMF 85.6% NMF 22.8%

* As % of YE 2010 GDP

Ensuring solvency and stability of the banks High BIS Capital Adequacy Ratio: Banking Sector Average – 21%, Bank of Georgia –28.4% High level of liquidity requirements from NBG at 20% of Liabilities, Bank of Georgia 34.7% Low Leverage in the banking sector: Banking Sector Average – 4.2x, Bank of Georgia –4.9x Resilient Banking Sector Demonstrated strong resilience towards domestic challenges during the August 2008 conflict as well as towards external shocks of global financial turmoil without single bank going bankrupt No nationalization of the banks have occurred, no government bail-out plans have been required, no Government

• wnership since 1995

Excess liquidity and excess capital that has been accumulated by the banking sector to enable boosting the financing of the economic growth Very low leverage of population, with Bank Loans to GDP ratio of c. 30% resulted in contained number of defaults during the global crisis (Average Loan Loss Provisions by BoG standalone as of end Q3‟10 at c. 6.5%)

April 2011

32.9% 22.0% 7.7% 9.6% 7.0% 4.8% 15.9% 33.0% 20.8% 8.6% 9.8% 5.9% 4.6% 17.3% 36.2% 21.3% 8.2% 7.3% 5.0% 3.2% 18.8%

35.7% 23.0% 7.5% 6.3% 5.1% 3.5% 18.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% BoG TBC ProCredit Bank Bank Republic Cartu VTB Other Banks

YE 2008 YE 2009 YE 2010 Mar-11

Page 53

Peer group’s market share in total assets

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

April 2011

32.9% 23.7% 8.7% 10.1% 6.4% 6.0% 12.2% 31.8% 21.6% 10.2% 10.1% 7.6% 5.6% 13.0% 35.9% 23.8% 9.4% 6.8% 6.8% 3.7% 13.5%

35.3% 24.2% 8.8% 7.2% 6.9% 3.7% 14.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% BoG TBC ProCredit Bank Republic Cartu VTB Other Banks

YE 2008 YE 2009 YE 2010 Mar-11

Page 54

Peer group’s market share in gross loans

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

April 2011

28.8% 22.5% 8.1% 8.9% 6.5% 6.8% 18.5% 27.4% 24.1% 9.1% 10.8% 5.5% 2.7% 20.4% 32.6% 24.1% 8.1% 8.3% 3.1% 2.1% 21.7%

33.9% 25.2% 7.4% 7.0% 3.4% 2.4% 20.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% BoG TBC ProCredit Bank Republic VTB Cartu Other Banks

YE 2008 YE 2009 YE 2010 Mar-11

Page 55

Peer group’s market share in deposits

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

April 2011

Page 56

This presentation contains statements that constitute “forward-looking statements”, including, but not limited to, statements relating to the implementation of strategic initiatives and other statements relating to our business development and financial performance. While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macroeconomic, governmental, legislative and regulatory trends, (2) movements in local and international currency exchange rates, interest rates and securities markets, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers,

• bligors and counterparties and developments in the markets in which they operate, (6)

management changes and changes to our group structure and (7) other key factors that we have indicated could adversely affect our business and financial performance, which are contained elsewhere in this presentation and in our past and future filings and reports, including those filed with the NSCG. We are under no obligation (and expressly disclaim any such obligations) to update or alter our forward-looking statements whether as a result of new information, future events, or otherwise.

Caution Regarding Forward-Looking Statements