JSC Bank of Georgia Q1 2010 results overview May 2010 Introduction - - PowerPoint PPT Presentation

May 2010

GROWTH AT THE RIGHT PRICE

LSE: BGEO / GSE:GEB

JSC Bank of Georgia Q1 2010 results overview

Page 2

May 2010

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 two independent directors

The leading universal bank in Georgia

Leading corporate bank with approximately 85,500 legal entities and over 157,600 current accounts Leading card-processing, leasing, insurance, wealth management and asset management services provider The only Georgian entity with credit ratings from all three global rating agencies S&P: ‘B/B’ – at the sovereign ceiling Fitch Ratings: ‘B/B’ Moody’s: ‘B3/NP (FC)’ & ‘Ba3/NP (LC)’ Listed on the London Stock Exchange (GDRs) and Georgian Stock Exchange Market Cap (LSE) US$ 313 mln as of 25 February 2010 Approximately 95% free float Issue of the first ever Eurobonds in Georgia Bloomberg: BKGEO; 5 year, 9%, US$200 mln B/Ba2/B (composite B+)

No.1 by assets (34.3%), (1) gross loans (32.7%), (1) client deposits (29.9%) (1) and equity (39.3%) (1) Leading retail banking, with top brand, best distribution network and broadest range of services of any bank in Georgia

420 382 379 ATMs 142 141 140 Branches 645,000+ 537,000+ 570,000+ Cards Outstanding 875,000+ 999,000+ 996,000+ Retail Accounts 2009 2009 2010 March December March

(1) All data according to the NBG as of 31 March 2009

May 2010

JSC Bank of Georgia Q1 2010 results overview

Page 4

May 2010

Q1 2010 P&L results highlights

16.4% 19.7% 17.7% Tier I Capital Adequacy Ratio (NBG) 17.4% 16.8% 15.9% Total Capital Adequacy Ratio (NBG) Q1 2009 Millions unless otherwise noted Q1 2010 Q4 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 45.3 25.9 46.0 27.3

• 1.7%

52.4 31.4

• 13.7%

Net Non-Interest Income 30.6 17.5 31.3 18.6

• 2.2%

29.3 17.5 4.6% Total Operating Income (Revenue)2 75.9 43.4 77.4 45.9

• 1.9%

81.7 48.9

• 7.1%

Recurring Operating Costs 46.3 26.4 46.6 27.6

• 0.7%

44.6 26.7 3.6% Normalized Net Operating Income3 29.6 16.9 30.8 18.3

• 3.7%

37.1 22.2

• 20.1%

Net Non-Recurring Income (Costs) (3.3) (1.9) (106.8) (63.4) NMF (0.2) (0.1) NMF Profit Before Provisions 26.4 15.1 (76.1) (45.1) NMF 36.8 22.1

• 28.5%

Net Provision Expense 7.4 4.2 30.3 18.0

• 75.7%

32.1 19.2

• 77.0%

Net Income/ (Loss) 16.8 9.6 (102.3) (60.7) NMF 5.1 3.0 229.8% Tier I Capital Adequacy Ratio (BIS) 22.1% 22.4% 22.2% Total Capital Adequacy Ratio (BIS) 32.3% 33.8% 31.7%

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 5

May 2010

31 March 2010 Balance Sheet results highlights

13.6 22.8 11.3 19.1 11.2 19.5

Book Value Per Share, GEL & US$

426.3 711.8 355.0 598.4 349.6 611.7

Shareholders’ Equity

1,482.0 2,474.9 1,373.2 2,315.0 1,436.2 2,512.4

Total Liabilities

696.3 1,162.8 541.8 913.3 521.3 912.0

Borrowed Funds

710.1 1,185.9 768.1 1,294.9 841.8 1,472.7

Total Deposits

1,908.2 3,186.8 1,728.2 2,913.4 1,785.8 3,124.1

Total Assets

1,144.7 1,911.6 995.5 1,678.2 1,015.9 1,777.3

Net Loans (Unaudited) (Unaudited) US$ GEL US$ GEL US$ GEL Bank of Georgia (Consolidated, IFRS Based) Q1 2009 YE 2009 Q1 2010 Millions, unless otherwise noted

• 14.2%

2.2%

Book Value Per Share,

• 14.1%

2.2%

Shareholders’ Equity

1.5% 8.5%

Total Liabilities

• 21.6%
• 0.1%

Borrowed Funds

24.2% 13.7%

Total Deposits

• 2.0%

7.2%

Total Assets

• 7.0%

5.9%

Net Loans Q1 10/Q1 09 Q1 10/YE 09 Change Change

Page 6

May 2010

Composition of revenue in Q1 2010

Revenue by segments, Q1 2010 Composition of Revenue, Q1 2010

Consolidated

Total Revenue: GEL 75.9 million in Q1 2009

Net interest income 59.6%, GEL 45.3 mln (-1.7% q-o-q) Net income from documentary

• perations 2.9%,

GEL 2.2 mln (-5.5% q-o-q) Net foreign currency related income 9.7%, GEL 7.3 mln +29.5% q-o-q) Net fee and commision income13.6%, GEL 10.3 mln (-18.2% q-o-q) Net other non- interest income 14.2%, GEL 10.8 mln (+0.6% q-o-q) Other 5.6%, GEL4.2 mln (+179.1% y-o- y ) Aldagi BCI 6.0%, GEL4.5 mln (+32.5% y-o-y) Belarus 3.8%, GEL2.9 mln (+20.0% y-o-y) Ukraine 4.0%, GEL3.1 mln (-44.0% y-o-y) BoG Standalone 80.6%, GEL61.2 mln (-11.2% y-o-y)

Page 7

May 2010

Analysis of revenue

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

Consolidated

9.4 8.8 7.1 6.5 5.7 7.3 4.3 6.1 6.2 10.1 13.2 10.4 14.9 2 4 6 8 10 12 14 16 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

5.9 5.6 6.9 7.6 10.2 10.2 12.9 10.9 11.1 11.6 12.0 12.6 10.3 0.7 1.3 1.8 1.9 1.4 1.9 1.7 1.4 2.3 1.8 2.3 2.3 2.2 2 4 6 8 10 12 14 16 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln Net Fee & Commission Income Net Income From Documentary Operations

26.0 30.9 33.5 42.8 49.8 55.8 58.9 56.4 52.4 49.5 48.9 46.0 45.3 15.0 21.3 22.7 25.3 31.3 30.3 27.1 30.2 29.3 31.1 30.4 31.3 30.6 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 Q4 2009 Q1 2010

GEL mln Net Interest Income Net Non-Interest Income

41.0 81.7 86.6 85.9 86.1 81.1 68.1 56.2 52.2 77.4 75.9 80.6 79.3

1.4 2.1

• 0.1

1.6 1.7 2.5 3.2 3.0 5.1 4.9 3.7 4.2 1.4 1.0 1.3 1.6 0.4 0.3 1.9 1.6 2.2 0.6 0.2 0.2 3.0 2.4

• 0.4
• 0.4
• 1.1
• 3.4
• 0.5

0.6 3.3 1.9 2.6 3.3 4.7 1.4 1.0 3.6 3.7 3.0 4.4 4.4 2.1 1.9 0.1 1.3 0.5 1.0 0.2 0.1 1.8 0.2 0.3 0.6

• 0.1

0.3 0.1 1.0

• 6
• 4
• 2

2 4 6 8 10 12 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln Net Insurance Income Brokerage Income Asset Management Income Realized Net Investment Gains Other

Page 8

May 2010

Analysis of recurring operating costs

Recurring operating cost structure by segments, Q1 2010 Recurring operating cost structure, Q1 2010

Consolidated

Total recurring operating costs: GEL 46.3 million in Q1 2010 (-0.7% q-o-q), (+3.6% y-o-y)

Other operating costs 6.3% GEL 2.9 mln (-0.1% q-o-q) Procurment &

• perations support

costs 7.6%, GEL 3.5 mln (-8.0% q-o-q) Depreciation & amortization 14.4%, GEL 6.7 mln (-3.8% q-o-q ) Selling, general & administrative costs 21.2%, GEL 9.8 mln (-6.4% q-o-q) Personnel costs 50.5%, GEL 23.4 mln (+4.0% q-o-q) Other, 14.7% GEL 6.8 mln (+120.8% q-o-q) Aldagi BCI, 6.4% GEL 2.9 mln (-18.9% q-o- q) BNB, 3.8% GEL 1.8 mln (-10.4% q-o-q ) BG Bank, 8.6% GEL 4.0 mln (-6.4% q-o-q) BoG standalone, 66.5% GEL 30.8 mln (-8.6% q-o-q)

Page 9

May 2010

Analysis of recurring operating costs cont’d

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

Consolidated

17.8 25.7 27.3 23.1 22.0 23.2 22.3 22.5 23.4 28.4 5 10 15 20 25 30 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

30.8 29.6 36.8 32.4 34.3 36.6 37.1 36.3 38.7 37.1 34.3 26.4 34.0 45.1 40.5 33.7 8.7

(76.1)

• 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

GEL mln Normalised Net Opearting Income Profit Before Provisions

53.4% 49.9% 55.5% 90.0% 201.8% 53.9% 140.5% 60.8% 52.9% 57.8% 59.1% 53.0% 44.4% 42.2% 65.3% 60.7% 50.0% 41.0% 50.8% 42.2% 45.1% 56.6% 49.6% 46.8% 50.1% 50.5% 58.0% 74.7% 35.7% 76.0% 116.9% 68.0% 100.1% 109.2% 91.5% 145.2% 59.1% 55.6% 64.5% 80.4% 84.6% 61.5% 66.6% 60.6% 89.4% 62.8%

0% 40% 80% 120% 160% 200% 240%

Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Cost/Income Ratio, Consolidated Cost Income Ratio, Bank of Georgia Standalone Cost/Income Ratio, BG Bank Cost/Income Ratio, BNB

2,692 3,056 3,619 3,853 2,741 2,692 2,665 2,669 2,674 2,825 821 824 836 842 786 757 707 617 621 392 5,048 4,781 4,798 4,914 4,964 4,977 6,196 5,911 4,926 4,459 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 Q4 2009 Q1 2010 Group Consolidated BoG Standalone BG Bank

Page 10

May 2010

NIM & loan yields

CB loan yield (annualized)

(Excluding provisions)

RB & WM loan yield (annualized)

(Excluding provisions)

Net Interest Margin (annualized) Blended loan yield (annualized)*

(Excluding provisions)

Consolidated

* Based on consolidated data, including Corporate Center where all loan recoveries are allocated

13.5% 14.4% 14.5% 14.0% 14.4% 15.0% 15.6% 15.2% 15.9% 14.9% 19.1% 14.8% 15.2% 10% 16% 22% 28% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 22.2% 20.9% 19.8% 19.9% 20.3% 19.7% 19.2% 19.9% 20.1% 19.8% 19.3% 20.5% 19.6% 10% 16% 22% 28% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

12.4% 7.8% 9.1% 17.2% 15.1% 8.0% 8.5% 9.1% 9.0% 9.1% 9.3% 10.1% 9.8% 8.9% 8.1% 10.2% 9.6% 5.6% 6.2% 8.9% 7.7% 7.1% 6.5% 8.1% 9.6% 10.0% 9.3% 9.9% 9.8% 9.0% 8.6% 7.5% 10.6% 9.3% 9.5% 13.0% 11.7% 10.5% 8.4% 13.4% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Net Interest Margin, Group Consolidated Net Interest Margin, BG Bank Net Interest Margin, BoG Standalone Net Interest Margin, BNB 24.8% 24.7% 24.3% 21.6% 22.2% 21.8% 20.6% 20.4% 20.1% 20.5% 23.7% 22.3% 23.2% 10% 16% 22% 28% 34% 40% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Page 11

May 2010

Composition of assets as at 31 March 2010

Consolidated

GEL million

YE 2008 31-March-09 31-Dec-09 31-March-10 Available-For-Sale & Trading Securities 33.7 40.5 21.7 17.8 Treasuries And Equivalents 8.3 38.3 249.2 249.2 Other Fixed Income Instruments 14.6 0.0

• Insurance Related Assets

42.0 52.6 26.7 32.6 Investments In Other Business Entities & Investment Property 64.0 36.5 89.2 103.2 Intangible Assets Owned & Goodwill 152.5 146.7 85.4 91.0 Tax Assets, Current And Deferred 12.8 6.7 23.5 23.8 Prepayments And Other Assets 51.4 27.9 36.6 52.6 Other Assets 379.4 349.3 532.3 570.2

Note: Net loans include Net finance lease receivables

570.2 532.3 349.3 379.4 280.4 339.9 301.8 1,777.3 1,678.2 1,911.6 2,080.6 322.2 265.5 414.9 99.6 177.9 157.0 171.1 397.6 276.5 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1 2010 Q4 2009 Q1 2009 YE 2008 Cash & Equivalents Loans & Advances To Credit Institutions Net Loans Property & Equipment Other Assets

GEL mln

5.4%of total assets 57.6% of total assets 18.3% of total assets 9.6% of total assets 9.1% of total assets 5.4% of total assets 13.0% of total assets 60.0% of total assets 10.7% of total 11.0% 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

3,187 2,913 3,259 3,124

18.3% of total assets 5.7% of total assets 10.3% of total assets 56.9% of total assets 8.9% of total assets

Page 12

May 2010

Composition of gross loan book as at 31 March 2010

Consolidated

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

Gross loan book Q1 2010: GEL 1,957.3 million

CB, 821 CB, 796 CB, 795 CB, 760 CB, 811 CB, 869 RB & WM, 895 RB & WM, 867 BG Bank, 255 BG Bank, 265 BG Bank, 257 BG Bank, 194 BG Bank, 199 BG Bank, 190 BG Bank, 186 BG Bank, 184 BNB, 35 BNB, 36 BNB, 30 BNB, 27 BNB, 26 BNB, 24 BNB, 32 CB, 881 CB, 958 CB, 857 RB & WM, 790 RB & WM, 965 RB & WM, 976 RB & WM, 1,050 RB & WM, 974 RB & WM, 854 RB & WM, 887 BG Bank, 177 500 1,000 1,500 2,000 2,500 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 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 gross loans 2% of gross 2% of gross loans 9% of gross loans 48% 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 44% of gross loans 46% of gross loans 1% of gross loans 10% of gross loans 44% of gross loans 45% of gross loans 9% of gross loans 2% of gross loans

Page 13

May 2010

Securities portfolio as at 31 March 2010

Breakdown of securities investments Breakdown of securities portfolio, 31 March 2010

Consolidated

Total securities portfolio: GEL 17.8 million

Local Debt, 36% Equities, 64% 17,750 11,353 6,397 Total

• Other
• BNB (Belarus)

6,397

• 6,397

BG Bank (Ukraine) 1,145 1,145

• SBRE

3,329 3,329

• Liberty Consumer

4,316 4,316

• Aldagi BCI

2,563 2,563

• BG Capital

Total Equity Debt GEL '000s

Page 14

May 2010

Liabilities breakdown as at 31 March 2010

Consolidated

YE 2008 31-March-09 31-Dec-09 31-March-10 Issued Fixed Income Securities

• 0.1

0.7

• Insurance Related Liabilities

55.4 63.8 34.2 42.7 Tax Liabilities, Current And Deferred 24.4 19.0 25.2 27.3 Accruals And Other Liabilities 50.4 43.3 46.6 57.8 Other liabilities 130.2 126.2 106.8 127.8

Total liabilities 31 March 2010: GEL 2,512.4 million

78.2 22.5 52.9 79.0 1,394.4 1,272.5 1,132.9 1,193.1 912.0 913.3 1,162.8 1,137.8 127.8 106.8 126.2 130.2 611.7 598.4 711.8 718.8 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1 2010 Q4 2009 Q1 2009 YE 2008

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 36% of total liabilities + equity 36% of total liabilities + equity 2% 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 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

3,124 2,913 3,187 3,259

20% of total liabilities + equity 3% of total liabilities + equity 45% of total liabilities + equity 29% of total liabilities + equity 4% of total liabilities + equity

Page 15

May 2010

Client deposits breakdown

Consolidated

Client deposits Q1 2010: GEL 1,394.4 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 , 629 CB , 606 CB , 521 CB , 595 CB , 588 BG Bank, 216 BG Bank, 180 BG Bank, 121 BG Bank, 115 BG Bank, 117 BG Bank, 139 BG Bank, 122 BNB , 16 BNB , 20 CB , 652 CB , 681 CB , 576 CB , 656 RB & WM, 458 RB & WM, 534 RB & WM, 396 RB & WM, 416 RB & WM, 374 RB & WM, 389 RB & WM, 463 RB & WM, 539 RB & WM, 595 BG Bank, 171 BG Bank, 127 BNB , 27 BNB , 31 BNB , 25 BNB , 18 BNB , 12 200 400 600 800 1,000 1,200 1,400 1,600 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

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 34% of client deposits 1,326 1,395 1,202 1,193 1,133 37% of client deposits 50% 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 43% of client deposits 47% of client deposits 43% of client deposits 1,394

May 2010

Capital adequacy & wholesale funding

Page 17

May 2010

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

25.2% 25.0% 23.9% 22.4% 22.1% 25.4% 22.2% 22.5% 24.7% 34.6% 34.2% 31.7% 27.3% 25.3% 25.8% 25.8% 33.8% 32.3% 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

Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

18.3% 15.8% 18.2% 16.6% 16.4% 17.8% 20.4% 19.7% 17.7% 16.3% 16.8% 15.9% 15.1% 15.5% 13.5% 17.4% 18.4% 21.2% 0% 5% 10% 15% 20% 25% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

161.2% 164.1% 135.4% 129.6% 120.7% 88.6% 85.3% 132.6% 135.7% 145.7% 163.6% 85.8% 89.5% 93.5% 104.5% 100.7% 98.5% 85.3% 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

Net Loans/Total Deposits Net Loans/(Total Deposits+Equity) 2,768 2,559 2,549 2,451 2,597 3,458 3,302 3,041 2,870 1,031 2,593 2,734 2,516 2,920 1,724 3,100 3,605 3,132 2,720 2,717

• 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 Q4 2009 Q1 2010 GEL mln BIS NBG

Page 18

May 2010

International borrowings

International borrowings repayment schedule International borrowings - fixed vs. floating rates, 31 March 2010 Selected international loans International borrowings by currencies, 31 March 2010

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

Euro, 0.2% US$, 99.8%

Fixed Interest Rate, 82% Floating Interest Rate, 18%

Key Lenders Principle Amount Outstanding as of March 31, 2010 Maturity Syndicated Loan arranged by Citi and ADB, 3rd Tranche US$ 8.3 million 2010 Eurobonds US$ 200.0 million 2012 Senior Term Loan from FMO US$ 9.1 million 2014 Senior Term Loan from WorldBusiness Capital US$ 6.4 million 2016 Subordinated Loan from HBK Investments (Call in 2012) US$ 15.0 million 2017 Subordinated Loan from Merrill Lynch (Call in 2012) US$ 35.0 million 2017 Senior Term Loan from WorldBusiness Capital (GLC) US$ 4.6 million 2017 Subordinated loan from FMO and DEG (Call in 2013) US$ 30.0 million 2018 Senior Loan from OPIC US$ 28.2 million 2018 Subordinated Loan from OPIC US$ 10.0 million 2018 Senior Term Loan from IFC US$ 50.0 million 2013 Senior Term Loan from EBRD US$ 50.0 million 2014 Subordinated Loan from IFC US$ 24.0 million 2019 Subordinated Loan from EBRD US$ 24.0 million 2019 Convertible Loan from IFC US$ 26.0 million 2019 Convertible Loan from EBRD US$ 26.0 million 2019 Other, USD denominated US$ 4.8 million NMF Other, EUR denominated EUR 0.9 million NMF Total US$ 552.6 million

31,982 68,376 504,289 119,373 23,140 8,732 5,905 23,162 174,940 6,778 1.1% 2.3% 16.6% 3.9% 5.8% 0.8% 0.2% 0.2% 0.3% 0.8% 0.0 100,000.0 200,000.0 300,000.0 400,000.0 500,000.0 600,000.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 GEL '000s 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Principle Amounts Outstanding as of March 31, 2010 (LHS) As % of March 31, 2010 Assets (RHS)

May 2010

Business overview

Page 20

May 2010

Group structure

Page 20

BoG Group

Reporting Lines

* Formerly Galt & Taggart Securities Note: Following the sale of GTAM, its asset management arm, BoG owns approximately 65% of Liberty Consumer, and 100% of SBRE. Both Liberty Consumer and SBRE are fully consolidated in BoG financials

Securities Insurance

Aldagi BCI BG Capital * Bank of Georgia

BGB BNB

May 2010

BoG standalone results overview

Page 22

May 2010

BoG standalone performance

Net income Recurring operating cost structure, Q1 2009 Revenue performance Cost/Income Ratio

Standalone

45.3 50.1 52.2 51.1 50.4 45.5 44.5 44.8 42.6 21.3 21.0 19.2 18.5 16.3 16.8 17.0 17.5 16.8 10 20 30 40 50 60 70 80 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

Net Interest Income Net Non-Interest Income 66.6 71.1 71.4 69.9 66.7 62.3 61.5 62.3 59.4 Personnel costs, 50.3% GEL 15.5 mln (-0.8% q-o-q) Selling, general & administrative expenses, 19.7% GEL 6.1 mln (-23.8% q-o-q) Depreciation & amortization, 17.9% GEL 5.5 mln (-11.0% q-o-q) Procurement &

• perations support

expenses, 9.3% GEL 2.8 mln (-0.3% q-o-q) Other operating expenses, 2.9% GEL 0.9 mln (-17.7% q-o-q)

25.4 28.4

• 58.0

28.8 11.3 0.9 10.8 7.8 12.8

• 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

GEL mln 60.7% 53.9% 45.1% 41.0% 50.0% 50.8%50.5% 42.2% 58.0% 44.5% 44.7% 47.3% 43.1% 41.4% 47.7% 48.9% 54.0% 51.8% 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 Cost/income, Bank of Georgia standalone Normalized Cost/Income, Bank of Gerorgia standalone

Page 23

May 2010

Composition of assets as at 31 March 2010

Standalone

GEL million YE 2008 Q1 09 YE 09 Q1 10 Treasuries And Equivalents 8 38 249 249 Other Fixed Income Instruments 15

• Investments In Other Business Entities, Net

295 315 334 356 Intangible Assets Owned, Net 13 7 14 17 Goodwill 23 23 23 23 Tax Assets, Current And Deferred 7

• 7

6 Prepayments And Other Assets 31 15 26 24 Other assets 392 398 653 675 675 653 398 392 216 226 231 232 1,700 1,606 1,750 1,885 258 165 324 249 184 214 229 192 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1 2010 Q4 2009 Q1 2009 YE 2008

GEL mln

Cash & Equivalents Loans & Advances To Credit Institutions Net Loans Property & Equipment Other Assets

7% of total assets 6% of total assets 57% of total assets 8% of total assets 23% of total assets

3,033 2,987

8% of total assets 8% of total assets 63% of total assets 8% of total assets 13% of total assets

2,842

7% of total assets 11% of total assets 60% of total assets 8% of total assets 14% of total assets

2,916

22% of total assets 56% of total assets 9% of total assets 7% of total assets 6% of total assets

Page 24

May 2010

Analysis of the loan book

Standalone

* Other loans include car, POS and legacy retail loans

Credit cards and

• verdrafts, 16%

Micro loans, 14% Mortgage loans, 43% Consumer and

• ther, 27%

FMCG, 15% Energy, 9% Industry & State, 17% Construction & Real Estate, 19% Other, 6% Pharmaceuticals and Healthcare, 2% Trade, 32%

40.6 951 846.6 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Q1 2010

GEL mln

CB RB WM 1,838.2

Page 25

May 2010

Analysis of the loan book

Loans by maturity, 31 March 2010 Loan concentration Loans by currency, 31 March 2010 Loan book collateralization

Standalone

3% 2% 4% 22% 69% 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 10.7% 13.8% 16.6% 19.6% 0% 5% 10% 15% 20% 25% Q1 2009 Q1 2010

Top 10 Borrowers Top 20 Borrowers

25.1% 24.0% 24.5% 74.9% 76.0% 75.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% RB & WM CB Total GEL Foreign Currency

86.2% 87.7% 0% 20% 40% 60% 80% 100% Q1 2009 Q1 2010

Page 26

May 2010

Provisioning policy

Reserve for loan losses to gross loans NPL coverage ratio NPLs & write-offs, 31 March 2010 Impairment seasoning, Q1 2010

Standalone

3.77% 3.68% 7.44% 0.75% 0.06% 0.69% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% CB RB & WM Total NPLs as % of Gross Loans Write-offs as % of Gross Loans

208.4% 554.4% 96.7% 117.4% 152.6% 524.0% 117.6% 166.8% 106.5% 115.2% 100.7% 104.2% 129.3% 169.1% 138.3% 124.2% 124.1% 106.6% 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 BoG Standalone BoG Consolidated 9.2% 2.1% 2.1% 6.3% 5.0% 6.6% 8.1% 9.5% 9.4% 7.5% 1.9% 2.0% 6.8% 4.9% 5.5% 6.7% 7.5% 7.4% 6.4% 1.5% 1.7% 1.5% 19.8% 2.0% 6.6% 8.3% 6.7% 16.9% 1.7% 22.8%

• 1.0%

5.6% 6.6% 2.0% 4.3% 2.8% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

• 5%

0% 5% 10% 15% 20% 25% Reserve for loan losses to Gross loans, BoG Consolidated Reserve for loan losses to Gross loans, BoG Standalone Cost of risk, BoG Consolidated, annualised Cost of risk, BoG Standalone, annualised

2.5% 2.6% 2.4% 3.0% 3.5% 3.8% 3.2% 2.0% 1.7% 1.2% 1.3% 1.1% 0.3% 1.2% 0.7% 1.3% 1.4% 2.9% 1.2% 1.1% 2.0% 1.6% 432.6 491.3 179.8 439.3 356.7 292.4 327.6 300.9 548.3 632.3 604.0 200.9 239.1 0% 1% 2% 3% 4% 5% 6% 7% 8% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 GEL mln

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

Page 27

May 2010

Provisioning policy cont’d – BoG standalone

RB & WM loan loss reserve breakdown by loan type, 31 March 2010 NPLs, 31 March 2010 Loan loss reserve, 31 March 2010 CB loan loss reserve breakdown by loan type, 31 March 2010

Standalone

Mortgage loans, 25.6% GEL (19.6 mln) Consumer and

• ther, 15.9%

GEL (12.2 mln) Credit cards and

• verdrafts,

54.2% GEL (41.6 mln) Micro loans, 4.3% GEL (3.4 mln)

8.7 8.1 9.7 12.0 20.0 46.3 67.4 54.5 35.9 67.6 16.6 10.9 22.4 11.3 36.6 41.1 51.3 61.4 75.4 69.2 1.7% 1.2% 1.7% 1.3% 3.2% 4.7% 6.9% 7.0% 6.4% 7.4% 20 40 60 80 100 120 140 160 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

0% 1% 2% 3% 4% 5% 6% 7% 8% RB &WM CB % of G ross loans

16.5 14.5 22.2 29.8 49.8 57.7 75.5 67.9 70.9 76.7 11.4 16.3 10.8 83.6 36.4 42.2 56.8 56.0 45.0 38.2 2.0% 1.9% 2.0% 4.9% 5.5% 7.5% 7.4% 7.5% 6.7% 6.8% 20 40 60 80 100 120 140 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

0% 1% 2% 3% 4% 5% 6% 7% 8% RB & WM CB Loan loss reserve as % of gross loans

Other, 4.0% GEL (2.1 mln) Pharmaceuticals & Healthcare, 0.2% GEL (0.1 mln) Industry & State 3.7% GEL (2.1 mln) Construction & Real Estate 29.9% GEL (16.7 mln) Fast Moving Consumer Goods, 13.2% GEL (7.4 mln ) Energy, 11.5% GEL (6.4 mln) Trade, 37.5% GEL (21.0 mln)

Page 28

May 2010

BoG standalone liabilities

Leverage ratio, BoG standalone Liquidity ratio, BoG standalone

Standalone

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

3.9 2.9 3.1 3.1 3.1 2.8 2.8 2.8 3.0 3.3 1 2 3 4 5 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

751.9 58.8 912.0 1,251.5 59.0 500 1,000 1,500 2,000 2,500 3,000 3,500 Q1 2010

GEL mln Deposits And Loans From Banks Client Deposits Borrowed Funds Other Liabilities Total Shareholders Equity

25% of Total Liabilities + equity 2% of Total Liabilities + equity 41% of Total Liabilities + equity 30% of Total Liabilities + equity 2% of Total Liabilitis + equity 3,033

34.2% 33.8% 27.2% 27.3% 37.6% 43.5% 35.6% 38.7% 37.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Page 29

May 2010

Analysis of deposits

CB, RB & WM deposits, BoG standalone Client deposits by currency, 31 March 2010 Client deposit breakdown, 31 March 2010 Deposits by maturity, 31 March 2010

Standalone

22.6% 50.1% 3.2% 34.2% 77.4% 65.8% 49.9% 96.8% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% RB CB WM Total GEL Foreign Currency

54% 0% 3% 9% 21% 13% 0% 10% 20% 30% 40% 50% 60% On Demand Less than 1 month 1 to 3 m

• nths

3 to 6 months 6 to 12 months Over 1 year

Individual current accounts, 10.3% Corporate time & demand deposits, 17.6% Individual time & demand deposits, 37.3% Corporate current accounts, 34.8%

363.6 403.4 326.0 319.8 280.4 282.8 331.2 376.1 414.7 76.5 70.4 98.7 93.3 107.5 131.4 163.1 180.7 652.7 681.5 576.2 626.7 605.2 519.0 594.9 587.6 656.1 81.6 200 400 600 800 1,000 1,200 1,400 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 GEL mln RB Client Deposits WM Client Deposits CB Client Deposits +11% +4%

• 19%
• 15%

+9%

• 2%
• 3%
• 12%

1%

• 14%

+15% 17% +22% +15%

• 5%

+37%

• 14%

+7% +24% +14%

• 1%

+10% +12% +11%

Page 30

May 2010

Deposit yields

Standalone 9.1% 8.2% 8.0% 10.4% 12.5% 13.7% 14.1% 11.7% 10.5% 3.8% 4.0% 5.0% 4.9% 4.5% 5.1% 4.9% 5.8% 5.7% 7.0% 7.5% 7.7% 8.4% 8.6% 7.6% 8.1% 5.6% 5.4% 7.2% 6.7% 6.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 RB Deposit Yields, BoG Standalone CB Deposit Yields, BoG Standalone Blended Deposit Yields, BoG Standalone

Page 31

May 2010

Risk management

Currency risk management, Q1 2010 Liquidity risk management, Q1 2010

Standalone

44.3 353.1 548.8 558.5 222.0 558.3

• 379.4

569.7 381.9 149.2 818.5 (13.7) (58.0) (31.7) (10.8) (187.4) (260.2)

• 400
• 200

200 400 600 800 1,000 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

0.8% 3.5% 4.1% 1.7% 6.2% 3.8% 16.0% 0.6% 6.0% 5.8% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 1-Dec-07 1-Mar-08 1-Jun-08 1-Sep-08 1-Dec-08 1-Mar-09 1-Jun-09 1-Sep-09 1-Dec-09 1-Mar-10 Open Foreign Currency Position (as % of Regulatory Capital)

Page 32

May 2010

Corporate banking

Corporate client deposits, 31 March 2010 Corporate loan portfolio, 31 March 2010 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 SME No.1 corporate bank in Georgia Circa 37.9% market share based on customer deposits(1) Circa 29.6% market share based on corporate loans(2) Integrated client coverage in key sectors 85,500+ clients of which 9,047 served by dedicated relationship bankers Circa 47% 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 1,424 at 31 December 2009 to 1,475 in Q1 2010 Approximately 4,169 corporate accounts were opened at the bank in Q1 2010, bringing the total number of current accounts to 157,632

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 656 mln

Current Accounts & Demand Deposits, 78% Time Deposits, 22%

FMCG, 15% Energy, 9% Industry & State, 17% Construction & Real Estate, 19% Other, 6% Pharmaceuticals and Healthcare, 2% Trade, 32%

874 826 875 794 928 870 806 765 880 951 100 200 300 400 500 600 700 800 900 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 31-Dec-09 31-Mar-10

GEL mln

• 5%

+6%

• 9%

+1 7%

• 5%
• 7%
• 6%

+1 5% +8%

Page 33

May 2010

Retail Banking – No. 1 retail bank in Georgia

Leadership in consumer lending RB loan portfolio, 31 March 2010 Retail loans originated Retail gross loan portfolio growth

Standalone

(1) Monthly average

Total retail loans: GEL 847 mln

Note: does not include Ukraine & Belarus

Q1 2009 YE 2009 Q1 2010 Number of Consumer Loans Outstanding* 61,593 48,614 50,335

• Volume of Consumer Loans Outstanding (GEL mln)*

144.8 114.0 116.7

• Credit Cards Outstanding

131,523 79,318 78,361

122.1 177.5 183.3 235.6 266.9 317.6 140.2 74.9 68.8 97.5 104.9 128.2 55.9 50 100 150 200 250 300 350 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

GEL mln

656 755 931 995 923 844 809 807 847 922

• 200

400 600 800 1,000 1,200 YE 2007 Q1 08 Q2 08 Q3 09 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

GEL mln +15% +22% +1% +7%

• 7%
• 4%
• 9%
• 0.2%

+5%

Credit cards and

• verdrafts, 16%

Micro loans, 14% Mortgage loans, 43% Consumer and

• ther, 27%

Page 34

May 2010

Loan origination

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

Standalone

386.5 10.1 23.4 370.5 27.0 385.1

• 50

100 150 200 250 300 350 400 450 Volume of Mortgage Loans Originated Volume of Mortgage Loans Outstanding

GEL mln

Q1 2009 Q4 2009 Q1 2010

• 4%

+130 +16% +4% 15.3 124.0 40.0 98.9 120.7 51.6

• 20

40 60 80 100 120 140 Volume of Micro Loans Originated Volume of Micro Loans Outstanding

GEL mln

Q1 2009 Q4 2009 Q1 2010 +162%

• 20%

+29% +22% 316.6 259.7 3.8 3.3 258.0 2.8

• 50

100 150 200 250 300 350 Volume of Other RB & WM Loans Originated* Volume of Other RB & WM Loans Outstanding

GEL mln Q1 2009 Q4 2009 Q1 2010

• 11%
• 19 %
• 17%
• 52%

+1%

32.1 155.5 43.7 126.9 48.7 121.6

• 20

40 60 80 100 120 140 160 180 Volume of Consumer Loans Originated Volume of Consumer Loans Outstanding

GEL mln

Q1 2009 Q4 2009 Q1 2010

+11% +89%

• 18%
• 4%

Page 35

May 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

121.7 125.9 119.1 100.2 94.8 99.0 112.8 113.7 116.7 8.0 16.9 16.2 25.8 20.0 34.9 40.6 34.6 40.7 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

GEL mln Volume of WM time deposits issued Volume of RB time deposits issued

GEL mln

10,912 17,136 17,855 19,403 12,051 15,312 18,322 18,739 19,092

• 5,000

10,000 15,000 20,000 25,000 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

169.9 185.3 120.9 95.6 95.2 101.7 105.4 118.8 128.5 39.2 36.9 18.6 18.0 16.3 20.7 34.8 43.1 50.1 231.1 262.9 257.0 302.1 262.2 266.3 322.4 377.4 416.8 100 200 300 400 500 600 700 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

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

410.4 363.3 349.9 326.5 382.5 329.4 400.4 370.0 435.5 53.6 39.2 26.8 90.2 69.3 79.2 74.2 78.1 75.1 188.7 279.0 199.5 186.6 153.6 117.3 112.0 139.4 145.6 100 200 300 400 500 600 700 800 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

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

Page 36

May 2010

RB cross-selling

Cards penetration rate* RB loans penetration rate* Product/client ratio Current accounts & deposits penetration rate*

Standalone

* Calculated as percentage of Bank of Georgia clients for the period

2.2 2.4 2.7 3.0 3.2 3.3 3.5 3.1 3.0 2.8 2.8 2.7 2.8

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-09 Dec-09 31- Mar-10 0.0 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) 95.6% 98.7% 104.0% 75.4% 73.2% 67.6% 66.1% 66.18% 23.6% 26.9% 31.4% 24.8% 20.6% 17.5% 15.0% 10.56% 11.38% 62.61% 0% 20% 40% 60% 80% 100% 120% Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Debit Cards Penetration Rate Credit Cards Penetration Rate 111.2% 111.3% 112.8% 122.4% 9.7% 9.2% 7.6% 7.1% 8.9% 7.3% 6.7% 5.6% 110.8% 111.1% 114.3% 105.0% 14.4% 14.7% 15.7% 16.4% 19.0% 19.5% 19.8% 20.0% 0% 20% 40% 60% 80% 100% 120% 140% Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09

Demand & Time deposits Penetrartion rate Universal Current Accounts Penetration Rate Standard Current Accounts Penetration Rate

1.1% 1.1% 1.1% 1.1% 9.2% 7.6% 7.6% 2.2% 2.1% 1.9% 1.5% 0.8% 0.6% 0.6% 35.8% 39.3% 44.3% 46.4% 47.9% 47.6% 44.5% 44.8% 1.2% 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 Dec-09 Mar-10 Mortgage Loan Penetration Rate Consumer Loan Penetration Rate Micro Loan Penetration rate Other Loans Penetration Rate

Page 37

May 2010

Card processing

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

• Migration to TietoEnator

Transmaster in 2005

• Enhanced functionality

and new product support

1,105 1,776 2,151 2,954 2,914 4,224 5,027 6,584 7,176 8,536 8,613 9,014 8,406 7,660 7,660 7,839 7,449 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 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 Q4 09 Q1 10

'000s

90 121 203 286 337 437 460 649 721 776 774 658 636 582 539.0 541 525 49 66 72 84 119 138 247 227 256 278 304 256 261 227 230 237 227

139 275 370 456 575 706 876 914 897 809 769 778 186 753 200 400 600 800 1,000 1,200 1,400 Mar-06 Jun-06 Sep-06 Dec-06 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

'000s

Bank of Georgia Other Banks 1,078 1,054 978

5.5 5.5 5.5 2.5 2.6 3.1 3.3 3.8 4.0 4.0 4.0 4.2 4.7 4.7 1.2 1.4 0.5 0.4 1.7 1.0 1.1 2.2 1.1 1.3 1.3 1.1 1.4 1.5 1 2 3 4 5 6 Dec-06 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

GEL mln

1 2 3 Total Assets (LHS) Revenue (RHS)

Page 38

May 2010

Analysis of mortgage portfolio

Typical mortgage terms Volume of mortgage loans outstanding Number of mortgage loans issued & outstanding Volume of mortgage loans issued

Standalone

Rate: 14.5% - 15.5% Tenor: Normally 10 years Currency: US$ and GEL LTV: Normally 70%%

231 259 423 437 517 7,476 7,967 7,994 7,916 7,809 7,796 8,240 455 678 858 1,129 1,426 1,915 850 691 2,365 1,166 3,409 4,230 5,340 6,881 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Number of mortgage loans issued Number of mortgage loans outstanding

33.8 37.6 43.3 69.5 81.3 96.1 32.5 18.5 10.1 11.5 23.1 23.4 27.0 20 40 60 80 100 120 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

101.6 128.7 157.7 203.5 245.5 312.0 325.9 386.7 383.1 373.7 358.8 370.5 385.1 50 100 150 200 250 300 350 400 450 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

Page 39

May 2010

Management (WM) performance review

WM loans, 31 March 2010 WM products penetration WM clients and client assets WM Deposits

Standalone

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) Q4 2009 (1.69) (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

101.0% 93.7% 96.2% 79.2% 21.2% 25.5% 27.8% 62.7% 59.5% 71.4% 54.0% 55.3% 65.8% 66.8% 66.9% 52.2% 65.8% 93.4% 111.2% 114.2% 130.2% 135.0% 32.8% 31.8% 32.2% 40.1% 40.8% 52.5% 57.1% 62.5% 65.2% 69.6% 70.2% 76.4% 78.2% 80.7% 24.1% 23.7% 23.7% 21.9% 20.6% 10.5% 15.4% 14.8% 15.3% 0% 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

OneCard Penetration Rate All Other Cards Penetration Rate Demand & Term Deposits Penetration Rate Internet Banking Penetration Rate SMS Banking Penetration Rate

Other, 10.0% Mortgage Loans, 72.4% Consumer Loans, 12.1% Car Loans, 5.5%

108.8 87.8 69.3 59.0 60.9 55.4 73.3 66.8 64.8 66.4 63.4 48.3 48.2 6.7 117.5 1,341 1,429 1,364 1,358 1,341 1,387 1,384 1,382 1,304 1,291 1,187 1,081 943 873 460

• 20

40 60 80 100 120 2004 2005 2006 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 US$ mln 200 400 600 800 1,000 1,200 1,400 1,600 Private Banking Client Assets (LHS) Private Banking Clients (RHS) 155.2 49.5 31.5 35.7 35.1 36.9 47.9 52.1 57.2 23 32 39 61 58 67 84 111 123 20 40 60 80 100 120 140 160 180 200 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

Current Accounts & Demand Deposits Time Deposits 178 71 82 181 163 131 104 93 97

May 2010

BG Bank (Ukraine) standalone results overview

Page 41

May 2010

BG Bank performance

Net income Recurring operating cost structure, Q1 2010 Revenue growth Cost/Income Ratio

4.8 5.5 6.4 3.8 2.9 4.3 4.0 4.3 2.7 1.7 0.8 2.6 1.2 1.3 (0.5) 0.3 2.7 5.5 9.9% 10.6% 12.9% 8.1% 7.2% 7.5% 8.3% 6.0% 11.3%

• 2

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

GEL mln

0% 2% 4% 6% 8% 10% 12% 14% Net Interest Income Net Non-Interest Income Net Interest Margin, annualized 9.2 6.3 6.5 9.3 5.5 5.6 5.3 3.8 3.1 5.7 4.0 8.5 (1.6) (4) (2)

• 2

4 6 8 10 12 14 16 Q4 2009 Q1 2010

GEL mln

Recurring Operating Costs Provision Expense

(7.3) (10.8) (5.5) (11.5) 0.3 (0.7) 0.7 0.7 (10.7) (14) (12) (10) (8) (6) (4) (2) 2 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

109.2% 116.9% 100.1% 91.5% 74.7% 140.5% 76.0% 39.6% 145.2% 0% 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

Page 42

May 2010

BG Bank assets as at 31 March 2010

Asset growth Gross loan book growth

No international loan 10.1 10.1 2.3 Tax Assets, Current And Deferred GEL million Q1 2009 YE 2009 Q1 2010 Available-For-Sale Securities 13.6 6.2 6.4 Investments In Other Business Entities, Net 0.0 7.3 12.2 Intangible Assets Owned, Net 0.5 1.0 0.9 Prepayments And Other Assets 1.4 1.2 0.9 Other assets 17.8 25.8 30.6

30.6 25.8 17.8 11.5 11.3 14.4 131.9 125.6 167.2 5.7 7.5 23.8 11.1 27.8 21.7 50 100 150 200 250 300 Q1 2010 Q4 2009 Q1 2009 Cash & Equivalents Loans & Advances To Credit Institutions Loan Portfolio Property & Equipment Other Assets

9% of Total Assets 10% of Total Assets 68% of Total Assets 6% of Total Assets 14% of Total Assets 4% of Total Assets 63% of Total Assets 6% of Total Assets 13% of Total Assets

245 GEL mln

7% of Total Assets

191 198

6% of Total Assets 16% of Total Assets 6% of Total Assets 69% of Total Assets 3% of Total Assets

357 360 350 337 249 245 205 202 198 191 849 1,217 1,213 1,150 1,129 965 946 1,149 1,131 934 0.3 0.2 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 200 400 600 800 1000 1200 1400 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 0.0 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 230 255 265 257 194 199 190 186 177 184 917 896 925 862 871 729 876 889 836 819 0.3 0.2 0.2 0.3 0.3 0.3 0.2 0.2 0.2 0.2 100 200 300 400 500 600 700 800 900 1000 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 0.0 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 43

May 2010

BG Bank loan portfolio

Retail loan portfolio breakdown, 31 March 2010 Corporate loan portfolio breakdown, 31 March 2010 Loan portfolio breakdown, 31 March 2010

Gross loans: GEL 184 million Gross corporate loans: GEL 148 million Total retail loans: GEL 36 million

CB, 80% RB & WM, 20%

Mortgage loans, 54.1% Consumer and

• ther*, 42.9%

Micro loans, 2.6% Credit cards, 0.4%

SME, 7% Other, 2% Industry & State, 21% Construction & Real Estate, 15% Trade, 55%

Page 44

May 2010

BG Bank analysis of the loan book

Loans by maturity, 31 March 2010 Top ten borrower concentration Loans by currency, 31 March 2010 Loan book collateralization

UAH, 52.8% Foreign currency, 47.2%

23.6% 13.7% 38.5% 24.1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1 to 3 months 3 to 6 months 6 months to 1 year Over 1 year 30.0% 31.3% 32.5% 30.8% 31.4% 33.5% 36.6% 38.9% 38.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

89.9% 91.5% 90.9% 92.1% 93.0% 95.8% 96.6% 97.5% 96.2% 86% 88% 90% 92% 94% 96% 98% 100% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Page 45

May 2010

BG Bank provisioning policy

NPL coverage ratio Loan loss reserve NPLs Reserve for loan losses to gross loans

2.8% 2.2% 2.5% 10.5% 15.9% 20.5% 26.9% 31.5% 28.3% 0% 5% 10% 15% 20% 25% 30% 35% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

2.6 2.9 2.7 2.6 8.7 5.6 17.6 11.5 12.2 4.0 7.2 22.1 6.3 14.2 16.6 0.1 0.7 1.0 1.7% 1.3% 1.5% 4.6% 8.0% 14.6% 12.8% 14.0% 15.6% 5 10 15 20 25 30 35 Q1 2008 Q2 2008Q3 2008Q4 2008 Q1 2009Q2 2009Q3 2009 Q4 2009Q1 2010

GEL mln

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% RB CB NPL ratio

7.3 5.7 6.3 5.9 12.2 12.8 12.9 14.5 14.7 8.5 19.4 26.2 37.3 36.8 37.4 0.6 0.2 0.2 10 20 30 40 50 60 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

RB CB 167.0% 319.4% 210.0% 224.8% 140.9% 198.8% 168.2% 166.4% 181.1% 0% 50% 100% 150% 200% 250% 300% 350% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Page 46

May 2010

BG Bank standalone liabilities breakdown

Leverage ratio

Q1 2009 YE 2009 Q1 2010 Issued Fixed Income Securities 0.1 0.7 0.0 Tax Liabilities, Current And Deferred 0.0 0.2 0.0 Accruals And Other Liabilities 1.6 1.8 1.4 Other liabilities 1.8 2.7 1.4

4.3 2.3 2.1 2.9 3.0 3.2 3.9 5.4 4.9 1 2 3 4 5 6 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

34.6 25.2 60.9 122.3 138.9 121.0 1.4 1.8 32.5 31.2 61.1 2.7 50 100 150 200 250 300 Q1 2010 Q4 2009 Q1 2009 GEL mln Total Shareholders Equity Other Liabilites Borrowed Funds Client Deposits Deposits And Loans From Banks 25% of Total Liabilities + equity 25% of Total Liabilities + equity 49% of Total Liabilities + equity 1% of Total Liabilities + equity 13% of Total Liabilities + equity 70% of Total Liabilities + equity 1% of Total Liabilities + equity 16% of Total Liabilities + equity 17% of Total Liabilities + equity 18% of Total Liabilities + equity 64% of Total Liabilities + equity 1% of Total Liabilities + equity 245 191 198

Page 47

May 2010

BG Bank client deposits

CB & RB client deposits Deposit yields Client deposits Deposits by maturity, 31 March 2010

270 216 180 171 127 121 115 117 139 122 656 554 856 730 592 614 588 558 528 559 0.22 0.32 0.30 0.30 0.28 0.22 0.22 0.22 0.21 0.21 100 200 300 400 500 600 700 800 900 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 0.00 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

12.0% 10.9% 12.3% 14.0% 15.8% 11.8% 12.2% 11.4% 12.8% 10% 11% 12% 13% 14% 15% 16% 17% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

85.4 60.5 61.5 45.7 47.0 37.7 43.2 58.8 40.1 130.6 119.7 109.1 81.7 74.1 77.1 73.9 80.0 82.2 50 100 150 200 250 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

CB Client Deposits RB Client Deposits

• 29%
• 8%
• 9%

+2%

• 25%
• 26%
• 9%

+3% +4%

• 20%
• 4%

+15% +36% +8% +3%

• 32%

31.2% 34.2% 9.7% 17.1% 7.8% 0% 5% 10% 15% 20% 25% 30% 35% 40% On demand Less than 3 month 3 to 6 months 6 months to 1 year Over 1 year

Page 48

May 2010

BG Bank analysis of deposits

Client deposits by currency, 31 March 2010 Client deposits breakdown, 31 March 2010

Client deposits: GEL 122 mln

Current accounts, 21% Time&Demand deposits, 79%

UAH, 43% Foreign currency, 57%

Page 49

May 2010

BG Bank capital adequacy

Risk-weighted assets BIS vs. NBU NBU capital adequacy ratios BIS capital adequacy ratios Net loans/deposits & Loans/(deposits+equity)

19.0% 30.6% 18.1% 19.5% 32.8% 21.1% 22.0% 27.9% 30.5% 24.9% 32.6% 31.3% 28.4% 33.3% 25.8% 30.8% 29.1% 16.3% 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 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio 17.3% 23.3% 19.0% 25.8% 12.4% 12.9% 14.0% 21.0% 22.8% 23.8% 22.8% 13.7% 14.5% 15.6% 21.0% 22.8% 23.8% 22.8% 0% 5% 10% 15% 20% 25% 30% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

244.1 230.4 271.77 196.18 158.65 158.13 282.1 305.2 327.7 355.0 361.6 176.4 178.2 190.4 255.4 327.0 340.6 352.9 50 100 150 200 250 300 350 400 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

NBU BIS

77.7% 73.7% 74.6% 68.1% 64.3% 69.7% 85.9% 76.6% 84.1% 68.8% 75.3% 71.5% 98.2% 91.9% 99.7% 116.5% 113.7% 89.0% 0% 20% 40% 60% 80% 100% 120% 140% Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Net Loans/(Total Deposits + Equity) Net Loans/Total Deposits

May 2010

Belarusky Narodny Bank (Belarus)

Page 51

May 2010

BNB Bank performance

Net income Recurring operating cost structure, Q1 2010 Revenue growth Cost/Income Ratio

1.1 1.0 1.0 1.4 1.6 2.3 0.618 0.6 0.8 1.4 0.8 0.7 15.0% 10.8% 10.6% 10.7% 13.4% 17.0% 3 5 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Net Interest Income Net Non Interest Income Net Interest Margin, annualized

1.8 2.4 1.9 2.1 2.2 2.9 1.5 1.8 0.03 0.4 1 2 3 4 Q1 2009 Q1 2010

GEL mln

Recurring Operating Costs Provision Expense

0.7 0.6 0.2 0.7 (0.3) (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009

GEL mln

80.4% 61.5% 89.4% 60.6% 66.6% 84.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

Page 52

May 2010

BNB loan portfolio as at 31 March 2010

RB Loan Portfolio Breakdown, 31 March 2010 Loan loss reserve, 31 March 2010 Loan Portfolio Breakdown, 31 March 2010 CB Loan Portfolio Breakdown, 31 March 2010

Gross loans: GEL 32 mln RB loans: GEL 1.7 mln

* Other loans include car, POS and legacy retail loans

Loan loss reserve: GEL 1.3 mln CB loans: GEL 30.6 mln

CB, 95% RB, 5%

CB, 1.17 RB, 0.11

Mortgage loans, 1% Consumer and

• ther*, 98%

Other loans, 1%

Other, 1% Industry & trade, 10% Retail trade, 72% Construction & real estate, 17%

Page 53

May 2010

BNB client deposits as at 31 March 2010

Client deposits breakdown, 31 March 2010 Client deposits breakdown, 31 March 2010

4,586 6,972 2,000 4,000 6,000 8,000 10,000 12,000 Jan-00

GEL mln

RB Deposits Outstanding CB Deposits Outstanding

Current Accounts Outstanding , 58.7% Time Deposits Outstanding , 38.7% Demand Deposits Outstanding , 2.6%

May 2010

BG Capital

Page 55

May 2010

BG Capital

Proprietary book Net income/(loss) Revenue Headcount

(2.6) (2.3) (4.6) 0.1 0.8 0.5 (3.9) 0.7 (5) (4) (3) (2) (1) 1 2 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010

GEL mln 19,276 36,968 3,912 2,516 1,364 2,790 5,289 5,292 5,334

• 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

GEL mln 20 22 22 18 15 16 13 13 15 27 22 25 30 27 14 38 43 34

58 65 56 45 39 43 44 41 30

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

GEL mln

BG Capital Georgia BG Capital Ukraine

1.6 (1.0) (1.9) (2.8) 1.2 1.5 1.8 0.4 2.9 (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

GEL mln

Page 56

May 2010

Contact

Nick Enukidze Chairman of the Supervisory Board + 995 32 444 800 nenukidze@bog.ge Irakli Gilauri Chief Executive Officer +995 32 444 109 igilauri@bog.ge Macca Ekizashvili Head of Investor Relations +995 32 444 256 ir@bog.ge

May 2010

Appendices

May 2010

Bank of Georgia shareholder structure & management

Page 59

May 2010

Ownership structure

Supervisory board Ownership structure, 31 December 2009 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, 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

Local Shares Held by Institutional Shareholders, 5.8% Management & Employees**, 6.2% Local Shares Held by Domestic and Foreign Retail Shareholders, 2.5% GDR Holders*, 85.4%

Name Number % GDR Holders* 26,745 85.4% Local Shares Held by Institutional Shareholders 1,831 5.8% Management & Employees** 1,957 6.2% Local Shares Held by Domestic and Foreign Retail Shareholders 773 2.5% Total Shares Outstanding 31,306 100.0%

• Adjusted for BG Capital' Proprietary Book

(1 )

(5.3) Adjusted Total Shares Outstanding 31,301

(1) Treated as treasury shares as per IFRS

*through BNY Nominees Limited ** includes GDRs held as part of EECP

Page 60

May 2010

Analyst coverage

Analyst Email Andrzej Nowaczek andrzej.nowaczek@uk.ing.com Analyst Email David Nangle Dnangle@rencap.com Analyst Email Radena Georgieva Radena.Georgieva@caib.unicreditgroup.eu Analyst Email Pedro Fonseca pedro.fonseca@macquarie.com

May 2010

Georgian banking sector – key trends 2006- Q1 2010

Page 62

May 2010

Georgian banking sector – key trends 2007/Q1 2010

GEL/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 YE 2009= 1.69 Q1 2010= 1.75

Growth Market Share Market Share Market Share Q1 2010 (YE 2008) (YE 2009) GEL mln YE 2008 YE 2009 Q1 2010 As % of GDP* 2008 Y-O-Y 2009 Y-O-Y Q1 2010 Q-O-Q Top 5 Banks Bank of Georgia Top 5 Banks Bank of Georgia Top 5 Banks Bank of Georgia Total Assets 8,866 8,293 8,473 47.21% 23.00%

• 6.5%

2.2% 79.26% 32.89% 78.1% 33.0% 78.8% 34.3% Gross Loans 5,993 5,185 5,344 29.77% 30.59%

• 13.5%

3.1% 81.78% 32.87% 81.4% 31.8% 81.5% 32.7% Deposits 3,845 4,174 4,284 23.87% 9.51% 8.6% 2.6% 75.00% 28.76% 77.70% 27.4% 79.96% 29.7% Equity 1,517 1,517 1,549 8.63% 3.14% 0.0% 2.1% 75.69% 40.03% 79.60% 38.6% 79.65% 39.3% Net Income/(Loss) (216) (65.3) 15.3 0.1% NMF NMF NMF NMF NMF NMF 37.3% NMF NMF

21 banks as at 31 March 2010 Minimum capital requirement GEL 12 mln and growing Since 1 January 2007 local presence established by HSBC, Halyk, Privat, JSC Kor Bank No state ownership since 1995 Very open to foreign ownership All leading banks have meaningful foreign capital participation Significant IT/infrastructure and marketing spend drives increasing retail banking penetration Increasing adoption of the universal banking business model, following the lead of Bank of Georgia The economy and consumers significantly underlet (all-in consumer debt per capita US$163 at 31 December 2008)

* As % of YE 2009 GDP

Page 63

May 2010

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% 33.0% 20.8% 9.8% 8.6% 5.9% 4.6% 17.3% 34.3% 21.3% 8.7% 9.1% 5.4% 4.9% 16.3% 0% 5% 10% 15% 20% 25% 30% 35% 40% BoG TBC Bank Republic ProCredit Bank Cartu VTB Other Banks YE 2007 YE 2008 YE 2009 Q1 2010

Peer group’s market share in total assets

GEL/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 YE 2009= 1.69 Q1 2010= 1.75

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 64

May 2010

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% 13.0% 5.6% 7.6% 10.2% 10.1% 21.6% 31.8% 13.0% 5.5% 7.5% 9.8% 9.6% 22.0% 32.7% 0% 5% 10% 15% 20% 25% 30% 35% BoG TBC Republic ProCredit Bank Cartu VTB Other Banks YE 2007 YE 2008 YE 2009 Q1 2010

Peer group’s market share in gross loans

GEL/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 YE 2009= 1.69 Q1 2010= 1.75

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 65

May 2010

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% 27.4% 24.1% 10.8% 9.1% 5.5% 2.7% 20.4% 29.7% 24.9% 9.3% 9.6% 6.5% 1.6% 18.4% 0% 5% 10% 15% 20% 25% 30% 35% BoG TBC Republic ProCredit Bank VTB Cartu Other Banks YE 2007 YE 2008 YE 2009 Q1 2010

Peer group’s market share in deposits

GEL/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 YE 2009= 1.69 Q1 2010= 1.75

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 66

May 2010

Page 66

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