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At People’s Service
Georgian Banking Sector Highlights................................................... 4Introduction ......................................................................................... 7Branch and ATM Network across Georgia ......................................... 8Regional Coverage ............................................................................. 9Mission, Vision & Strategy .................................................................. 10Management Structure ....................................................................... 11Retail Customer Communication and Service Delivery ...................... 12Retail Banking - Prioritized Direction .................................................. 13Corporate Banking.............................................................................. 17Leader in Money Transfers ................................................................. 21Leader in Plastic Card Business......................................................... 22Social Projects .................................................................................... 23IT Infrastructure .................................................................................. 24Fixed Assets Overview ...................................................................... 25Daugther Companies.......................................................................... 26The Bank’s Standalone ...................................................................... 29International Relations ........................................................................ 31Future Co-operation ........................................................................... 32
CONTENT:2
GEORGIAN BANKING SECTOR HIGHLIGHTS 8 Months Overview of 2007
3
Market Share by Customers
Banking Sector 2004 2005 Since 2004 2006 Since 2005 Aug.07 Since 2006
Total Assets 1 699 154 2 548 267 50% 4 227 647 66% 6 482 463 53%
Loans 964 918 1 730 467 79% 2 681 495 55% 3 940 801 47%
Total Liabilities 1 326 641 2 068 780 56% 3 329 273 61% 5 303 838 59%
Deposits 982 968 1 538 063 56% 2 327 897 51% 3 289 911 41%
Net Profi t 27 482 61 756 125% 92 970 51% 77 108 24% (on an yearly basis)
Customer Allocation by Banks
People’s Bank market share by Customers
1,600,000
1,800,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
PeoplesBank
1,610,000
Bank ofGeorgia
280,353
ProcreditBank
VTB
138,838
BankRepublic
96,625
TBCBank
119,690
CartuBank
58,169
Other
52,960
64,6% 11,2% 5,8% 5,5% 3,8% 4,7% 2,3% 2,1%
145,678
Peoples Bank63%
Other37%
as of August 2007
GEORGIAN BANKING SECTOR HIGHLIGHTS4
Share in BankingSystem
GEORGIAN BANKING SECTOR HIGHLIGHTS
Branch Network in Georgian Banking System – 2007
Peer Group’s market shares in Net Commission Income
20
40
60
80
100
120
140
160
180
220
200 200
101
30 28
1913
5
19
PeoplesBank
Bank ofGeorgia
ProcreditBank
VTB BankRepublic
TBCBank
CartuBank
Other
48% 24% 7% 7% 5% 3% 1% 5%
0%
5%
10%
15%
20%
25%
30%
24%
2006 2007- August
8%
25%
23%
25%
7%
9%
6%7%
6%5% 5%
8% 8%
16%
18%
PeoplesBank
Bank ofGeorgia
ProcreditBank
VTB BankRepublic
TBCBank
CartuBank
Other
Shares of Net Commission IncomeNumber of units as of August 2007
5
PEOPLE’S BANK OF GEORGIAFigures and Curves
INTRODUCTION
Sound Customer Orientation and Communication
High Sense of Corporate Social Responsibility
The Biggest Number of Customers and Branch Network
Backbone of Georgian Economy
JSC People’s Bank of Georgia was founded by the end of 2002 year on the basis of AGRO Industrial Bank. By the Stockholders’ decision the bank all encompassed all the existing 30 branches, implementing high quality products in all regions. The result of all the taken activities is that People’s bank gained strong and stable position in the banking sector, with the biggest network in Georgia. Nowadays, the bank owns 200 units in total (branches, service centers, and pavilions) in 67 regions. In most of the regions People’s Bank is the only banking institution.
The largest branch network 200 branches 150 ATMs 1 610 000 retail account
The biggest number of International and Local Cards 550 000 International Visa Cards 850 000 Cards Issued
Leader in Money Transfer17 Money transfer systems1 local money transfer system
The only banking institution in Georgia initiating social projectsNo. 1 in net commission incomes (c. 25%)
Daughter Companies:People’s Insurance CompanyPeople’s PostReal Estate DevelopmentPublic Investment Management CenterPeople’s Fund
IT and Infrastructure:Own processing center
Partner of Georgian Government in: Distribution of Pensions and Allowances
Public Register ServicesNo. 1 Reformer in:
Establishing Plastic Card payment at Penitentiary system- prisonersEstablishing plastic card payment system in Tbilisi Public SchoolsPlanning to establish plastic cards payment system in high education
institutions and public transport
The Bank Today
People’s Bank 5 Years Ago
7
BRANCH AND ATM NETWORK ACROSS GEORGIA
200 Branches including 9 Pavilions
150 ATMs
8
Khulo Abasha
Adigeni
Ambrolauri
Aspindza
Akhalgori
Akhalkalaki
Akhmeta
Akhaltshikhe
Batumi
Baghdati
Bolnisi
Borjomi
Gardabani
Gori
Gurjaani
Dedoplistskaro
Dmanisi
Dusheti
Vani
Zemo Abkhazia
Zestaponi
Zugdidi
Tbilisi
Tetritskaro
Telavi
Terjola
Tianeti
Kaspi
Lagodekhi
LanchkhutiLentekhi
LiaxviMarneuliMartviliMestiaMtskhetaNinotsminda
Ozurgeti
OniRustavi
Sagarejo
Samtredia
Sachkhere
Senaki
Sighnaghi
Tkibuli
Poti
Kareli
Keda
Kobuleti
Kutaisi
Kazbegi
Kvareli
Shuakhevi
Chokhatauri
Chkhorotsku
Tsageri
Tsalenjikha
Tsalka
Tskaltubo
Chiatura
Kharagauli
Khashuri
Khelvachauri
Khobi
Khoni
REGIONAL COVERAGE9
MISSION, VISION & STRATEGY
Strategy
Our Mission
Our Vision
To provide universal, accessible and modern services to the population throughout the country
To deliver quality services at Bank’s offi ces. Our major priority is to ensure a steady increase of the clients’ satisfaction based on client-friendly, accurate and prompt services.
• To promote growth of the retail banking system• Maintain and solidify cuustomer oriented approach• Building banking operaations complying internationaational standards• Maintaining leading possition in servicing social projects by constant improvement of the service levelsocial projects by constant improvement of th• Offering innovative andd highly competitietitive broad-range products to population• Placing special emphassis on the divdiversity, simplicity and accessibility of services
Sound management
Cutting-edge expertise
Cross-selling synergies
Cost effi ciency
10
MANAGEMENT STRUCTURE
RB Committee Credit Committee
Board of Branch ManagersALCO Committee
MIS
Board of Directors
General Director
Infrastructure Development
Retail Banking
FinancialSupport
RiskManagement
11
1,610,000 Clients / 550,000 Visa Cards / 200,000 Client Relationships
People’s Credit
People’s Post
Branches 200 Branches including
9 Pavilions in Georgia,
5 Branches of People’s Credit
ATMs
POS
SMS Service
card processing centerProcessing Center
People’s Insurance
Brokerage Company
Real Estate
Development Company
OSMP
RETAIL CUSTOMER COMMUNICATION AND SERVICE DELIVERY12
RETAIL BANKING - MAJOR DIRECTION
Auto loan
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000Deposits Loans
37 642
31 593
45 115
33 155
45 644
34 682
45 753
36 336
51 502
41272
54 479
46 119
65 218
48 654
67 089
51 262
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
50
100
150
200
250
300
350
400
450
500Amount in tsd GEL Number of borrowers
271
31
302
33
359
38
357
45
450
62
445
58
360
47
349
48
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
Amounts in tsd GEL
Installment
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
990
2 852
1 118
3 356
1 213
3 709
1 217
3 603
1 273
3 558
1 469
3 559
1 529
3 572
1 675
3 626
Number of borrowers
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
Amount in tsd GEL
Retail loan portfolio and deposit growth
13
Consumer Loan
5 000
10 000
15 000
20 000
25 000
18 442
8 653
18 963
9 205
18 666
9 389
19 071
9 775
19 725
10 280
20 354
10 585
20 185
10 852
21 153
11 393
Amount in tsd GEL Number of borrowers
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
Overdraft
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
3 1952 971
4 223
3 736
4 307 4 226
5 275
7 145
Amount in tsd GEL Number of borrowers
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
870 804 873 8671 134 983
1 2431 460
RETAIL BANKING - MAJOR DIRECTION14
Pension Loan
20 000
40 000
60 000
80 000
100 000
120 000
6 443
72 896
Jan-07
7 308
78 315
Feb-07
8 598
95 202
Mar-07
8 847
100 406
Apr-07
8 920
99 360
May-07
9 001
99 943
Jun-07
8 844
99 501
Jul-07
8 417
Aug-07
92 915
Amount in tsd GEL Number of borrowers
Payroll
2 000
4 000
6 000
8 000
10 000
12 000
14 000
16 000
18 000
20 000Amount in tsd GEL Number of borrowers
4 577
7 997
Jan-07
4 658
8 185
Feb-07
4 972
9 152
Mar-07
5 977
10 150
Apr-07
9 771
12 341
May-07
13 866
15 247
Jun-07
16 49317 166
Jul-07
18 207
Aug-07
18 408
RETAIL BANKING - MAJOR DIRECTION15
Current accounts & demand deposits Term deposits
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
26,945,088
34,035,06633,356,935
32,974,972 32,739,571
29,760,436
32,649,86433,062,964
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
37,007,831
Sep-07
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
10,696,82511,079,882
12,287,152 12,778,263
18,762,783
24,718,115
32,567,906
34,025,644 34,680,979
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07
Retail deposits
DIVERSIFICATION OF DEPOSITS
37,008
34,681 Current accounts & demand deposits
Term deposits
Amounts in GEL
Amounts in tsd GEL
Amounts in GEL
RETAIL BANKING - PRIORITIZED DIRECTION
48%52%
16
Relationship with the corporate clients is one of the main strategic directions of the Bank. From January 2007 till August the number of corporate clients has signifi cantly increased, which subsequently increased account balances of the corporate clients.
The main portion of corporate loans disbursed by People’s Bank is covered by thecentral branch and the rest by other branches. As a total, according to the end of August data, the loans issued to the legal entities increased by 155%, compared tothe previous year, which is refl ected in the chart below.
CORPORATE LOANS GUARANTEES
5 000 000
10 000 000
15 000 000
20 000 000
25 000 000
30 000 000
35 000 000
20 345 41419 553 388
20 037 518
17 795 483
27 199 54228 495 639
29 806 320
32 340 599
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
From January 2007 including August the JSC People’s Bank has issued the various tyoes of guarantees to over 80 clients. Up to date the number of active guarantees exceeds 90, and the guar-antee portfolio equals to over GEL 10 000 000.
Total guaranteed amounts
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
120,000 56,670 58,650 96,500
848,187
26,869
2,750,395
6,501,261
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
Amounts in GEL
CORPORATE BANKING
Corporate Loan Portfolio Dynamics
17
Credit transactions of corporate customers
Top Ten Corporate Customers:
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
23,939,602
20,595,494
26,216,14824,676,370
36,573,593
27,145,524
30,212,587
38,586,272
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
KazTransGaz
Telasi
Magti
Georgian Railway
Energo-Pro Georgia
PSP Group
Wissol
GEOCELL
National Agency of Public Registry
National Agency of Citizen Registry
From January 2007 till August the credit transactions performed by the Corporate Clients has exceeded GEL 227 000 000.
CORPORATE BANKING
Amounts in GEL
18
Credit transactions of municipalities
10 000 000
20 000 000
30 000 000
40 000 000
19,168,904 19,220,513
24,787,881 26,785,185 24,290,616
34,333,397
27,927,549
32,850,582
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
JSC “People’s Bank” provides services for the local municipalities in different regions of Georgia. By August 2007, the number of the local municipalities, which cooperate with us reached 57 (Regions include: Abasha, Adigeni, Ambrolauri, Aspindza, Akhaltsikhe, Akhalgori, Akhal-kalaki, Akhmeta, Bagdati, Bolnisi, Tsageri, Chokhatauri, Chkhorotsku, Dedoplistskaro, Dmanisi, Dusheti, Poti, Gardabani, Gurjaani, Kaspi, Lagodekhi, Lanchkhuti, Lentekhi, Marneuli, Martvili, Mtskheta, Mestia, Ninotsminda, Oni, Kareli, Keda, Kurta, Kutaisi, Rustavi, Sachkhere, Sagarejo, Senaki, Sighnaghi, Shuakhevi, Telavi, Terjola, Tetri Tskaro, Tianeti, Tighva, Tkibuli, Vani, Tsalenjikha, Tsalka, Kharagauli, Khashuri, Khobi, Khoni, Khulo, Kazbegi, Kvareli, Zestaponi, Zugdidi), and their common credit transactions have exceeded GEL 209 000 000.
As a whole, from January 2007 till AAugust thehe credit transactions has exceeded GEL 436 000 000.
Amounts in GEL
CORPORATE BANKING19
Number of corporate customers participate in Payroll Programs provided by Peoples Bank, which simplifi es the payroll procedures for the em-ployees of the bank’s corporate customers. Apart from this the owners of the payroll plastic cards can use the overdraft facilities and have anaccess to the consumer loans. By August 2007 the payroll cards of our bank is being used by over 93 000 people throughout Georgia.
Income by Projects in 2007
PAYROLL PROJECTS
Tbilisi 33,521Kvemo Kartli 10,135Imereti 9,272Adjara 7,518Shida Kartli 7,517Samegrelo-ZemoSvaneti 6,642Kakheti 5,626Mtskheta-Mtianeti 5,182Samtskhe Javakheti 4,233Racha-Lechkhumi/KvemoSvaneti 2,171Guria 2,021
Amounts in GEL
Dynamics of plastic cards utilization in 2007
20 000
40 000
60 000
80 000
100 000
52,48759,206
63,18968,877
73,799
79,537
90,917 93,838
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
CORPORATE BANKING20
LEADER IN MONEY TRANSFERS
People’s Bank is the leading Bank in Georgian Market in fast money transfers – without account open-ing which is the most fl exible, fast and easy way. In 2007 fast money transfer system increased up to 18 added by “Caspian Money Trans-fer” and “Intelexpress” systems.
• Unistream
• Bistraia Pochta
• Anelik
• Money Gram
• Migom
• Contact
•• VTMVTM
• Privat Money
• Inter Xpress
• Intel Xpress
• Blizko B
• TMT T
• TTelegiros
• Xpress Money
• KavKavkazus
• Caspian Mon TransferMoney Transfer
Local Money Transfer SystemTurnover by Received Amounts
Express Money Transfer Systems Turnover by Received Amounts
Express Money Transfer Systems Commissions:
Express Money Transfers Systems
2006 2007
35.01
16.75
2006 2007
231.9
147.4
2006 2007
2.17
1.47
Amounts in mln USD
Amounts in mln USDAmounts in mln USD
21
LEADER IN PLASTIC CARD BUSINESS
Only People’s Bank provides Card Service throughout Georgia
Principal Member of International Payment System – VISA InternationalVisa IssuerVisa AcquirerOwn in-house processing center60 transaction per second
150 ATM-s
350 POS Terminals850,000 cards issued550,000 VISA cards
Plastic Card Market Share
Cards Issued
Card Turnover
Cards withdrawal via Channel
Other Banks50%
Peoples Bank 50%
Bank71,1%
Point of Sale 1,12% ATM
27,78%
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
2006
600 000
850 000
August 2007
50
100
150
200
250
300
350
2006
173
300
August 2007mln. GEL
22
SOCIAL PROJECTS
Distribution of pensions and allowances to the retirees, refugees and internally displaced persons Services the following social programs:● The Program on Overcoming the Unemployment● The Program for providing help to the mothers with many children● The Program to help socially unprotected groups
The biggest Tender ever announced in the banking system of Georgia won by the People’s Bank in 2006:Distribution of pensions and social allowances● Total Amount of 2,2 billion GEL● Duration 3 Years
Social programs Turnover
Incomes from Social programs
Turnover by Projects in 2007
Income Share by Projects in 2007
Pensions 379 182 866Social Support (Living) 48 612 124Refugee support 24 924 148Social Support (Family) 9 900 978Municipal 9 529 214One-time refugee support 683 900 President’s employment program 69 150
Pensions 6 066 925Social Support (Living) 777 793Refugee support 473 558Social Support (Family) 158 415Municipal 152 834One-time refugee support 11 737 President’s employment program 691
420 000 000
440 000 000
460 000 000
480 000 000
500 000 000
520 000 000
540 000 000
560 000 000
580 000 000
481 165 517
570 705 884
2006 Aug - 2007
9 000 000
9 200 000
9 400 000
9 600 000
9 800 000
10 000 000
10 200 000
10 400 000
10 600 000
10 800 000
2006
9 670 338
10 678 509
Aug - 2007
Amounts in GEL
Amounts in GEL
Amounts in GEL
Amounts in GEL
23
IT INFRASTRUCTURE
Bank in security policies supports Information Security Management Standard ISO 17999.Bank has two load balancing server rooms. All operations done centralized based. Bank uses servers from IBM and HP.Virtual Private Network (VPN) includes more then 180 points of services with 3500 users working. All accesses to VPN done from the one central point – Head Offi ce. Network is based on Cisco Systems equipment and uses Triple Data Encryption Standard for encryption. Physically network uses Fiber Optic connections, WiMax and GPRS. Bank has own processing center, connected to VISA. Communication standards comply VISA defi ned standards.Purchase of a new banking software Profi t from the Greek company INTRACOM
IT Expenses
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
650 000
500 000
810 000
Hardware Software
2005 2006
ATMs
820 000
1 200 000
1 835 000
Hardware Software ATMs
As of August 2007
594 933
881 810
1 906 128
Hardware Software ATMs
Amounts in GEL
24
FIXED ASSETS OVERVIEW
To be completed by the end of 2007TTTTTo bbbbbe complllllettttteddddd
On the 17th of January 2007 CB Richard Ellis has inspected the People’s bank central offi ce building and has made all appropriate enquiries in order to advise to Bank as to its opinion of the market values as at the date of valuation and as defi ned in the basis of valuation herewith:
Value assuming a complete renovation and transformation into a First Classoffi ce building
At the end of 2006 year the building was owned by Real Estate Develop-ment (RED) which is People’s Bank Daughter Company. In February 2007, the building became under People’s Bank ownership and was accounted p pin its balance with value of 24 mlln. GEL.
US$ 31,000,000
People’s bank owns:
5 Buildings in Tbilisi
69 Buildings in Regions
9 Pavilions
38 Armoured Vehicles
40 Passenger cars
Net Fixed Assets Types of Net Fixed Assets - August 2007
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000
50 000
46 528
Aug-2007
17 609
2006
11 116
2005
7 202
2004
Buildings 30 573Intangible Assets 2 586Computer equipment 2 539Leasehold improvements 2 422Vehicles 902Construction in progress 715Furniture and fi xtures 294Land 25
Amounts in tsd GEL
date “People’s Bank” has Up to dplaced 9 pavilions9 throughout the
of them offer the same ser-city. All od banking products as thoducts as thevices an
ches and servicservice centers do.branchesAmounts in tsd GEL
25
DAUGTHER COMPANIES
People’s Post was founded in October 2005 but it started active operations on Georgian postal market from October 2006. Nowadays, 187 branches of “People’s Post” are spread throughout the whole country. Company’s staff has its own auto park, which is equipped with 28 trucks and vehicles of special use. “People’s Post” participates in a communications network of “People’s Bank” and with its help provides quick and trustworthy postal service. Together with the 1.5 million clients of “People’s Bank”,
Already signed Agreement on conducting Money Transfer System Western Union.“People’s Post” offers to the customer’s wide range of postal and postal-fi nancial services across the country.Services offered:Postal Services:
• Letters and postcards• Parcels• Courier services• Commercial correspondence service, providded with pre-paid re
sponse;• Provision of mail boxes;• Establishment of an enclosed post-offi ce;• Delivery of utility and other bills;• Delivery of goods purchased online;• Facsimile service.
Financial Services:• Pension delivery, pecuniary aid to disadvanttaged d citizens and other
social allowances payment;• Money transfers;• Payments of utility and other bills;• Delivery of banking services “at their doors””;• Delivery of insurance policies or other servicces “a“at their doors”.
Sales Dynamics
People’s Post
1st Qtr
2nd Qtr
3rd Qtr
20 000 30 000 40 000 50 000 60 000 70 00010 000
26
People’s Insurance is fully licensed, international and Europe-an standards oriented Georgian Insurance company.2005, “People’s Bank” of Georgia bought 100% of stocks and became single shareholder.Company’s Capital amounts over GEL 2.040.000 – twice up than legislation standards require.Company is mostly oriented On Health Care Insurance. Com-pany’s Heath Care Policy holders are 4,000 People’s bank staff members and 10,000 individual persons. PIC’s strategy is focused on sustainable and profi table growth, on the effi cient use of capital and on close and mutually re-warding relationship with clients. We make business to look after every need of our clients. The Products business function actively promotess innovation and the development of new, superior products which meet the increasingly demanding requirements of clientts. Company seeks new target groups and is oriented on prommotion of in-surance culture.Key mandates of this business function include mmanaging th the insurance cycle to consistently optimize long-term profi t lelevels, and implementing client-focused claims manageementnt stan-dards in all markets and lines of business.
● Property Insurance● Cargo Insurance● Motor Insurance● Travel Insurance● Accident Insurance● Third Party Liability Insurance● Health Insurance●● Motor Accident InsuranceMotor Accident In● anceCredit Life Insura
Products for Individual and Corporate Clients
PIC Financial Information 2007 (2-nd quarter)
Gross Premium (GEL) 1.073.563
ROE 12.95%
ROA 9.45%
Loss Ratio 19.81%
Gross Profi t Margin 30.67%
PARTNERSHIP
People’s Insurance
DAUGTHER COMPANIES27
LTD Real Estate Development was founded by JSC People’sBank in 2005.The bank is single shaereholder and holds 100% of shares.Common Stock of the company totals GEL 89 250.The main directions:
● Real estate management
● Building – reconstruction
● Project creation
● Renting of commercial spaces ( 500 bus stops)
Public Investment Management Company (PIMC) is a daughter brokeragecompany of People’s Bank founded on July 31, 2006.It started its active operations last October after it had obtained general li-cense from the national commission of securities and become the member of national securities exchange. In the short period of time PIMC gained a popular image in the fi nancial mar-ket of the country. The company carries out its legal activities on the whole territory of Georgiathrough People’s Bank branches.PIMC offers the customers a wide choice of services in four main directions:
● Consulting service
● Brokerage service g
● Assets management
● Investment bankinbanking
PIMC considers the cooperation with leading companies of the country veryonsiders the cooperation with leading compacritical. In this case the company is not only guided by commercial interestscal. In this case the company is not only guided but also takes state interest into account. The projects to be implemented ined inbut also takes state interest into account. The projec
ects will consideonsiderably im-the nearest future prove the above. The future projey and attract foreign reign investments.prove the fi nancial market of the country and attract
Capital
Profit
Income
Assets
1 400 0001 200 0001 000 000800 000600 000400 000200 000
1 294 029
1 076 492
135 379
89 250
Financial information 2007
Real Estate Development (RED) Public Investment Management Company (PIMC)
DAUGTHER COMPANIES28
THE BANK’S STANDALONE
Total Assets
Total Liabilities
Gross Loans
Client’s Deposits
50 000
100 000
150 000
200 000
250 000
35 253
58 475
79 365
111 743
214 832
2003 2004 2005 2006 Aug. 2007
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
26 445
51 010
68 876
94 885
181 751
2003 2004 2005 2006 Aug. 2007
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
900 000
10 086
19 115
28 851
49 417
83 602
2003 2004 2005 2006 Aug. 2007
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
25 047
38 829
50 651
86 513
169 724
2003 2004 2005 2006 Aug. 2007
Amounts in tsd GEL
Amounts in tsd GEL
Amounts in tsd GEL
Amounts in tsd GEL
29
Interest Income Non Interest Income
Total Income
1000
2000
3000
4000
5000
6000
7000
8000
90008,499
Aug 2007
3,180
Aug 2006
2000
4000
6000
8000
10000
12000
14000
16000
18000
2000017,578
Aug 2007
12,895
Aug 2006
2000
4000
6000
8000
10000
1200026,077
Aug 2007
16,075
Aug 2006
Amounts in tsd GELAmounts in tsd GEL
Amounts in tsd GEL
THE BANK’S STANDALONE30
INTERNATIONAL RELATIONS
● Pilot Project with “Support of Retail Banking Project, Cadastre Project of KFW and People’s Bank” – fi nanced by People’s Bank (credit facilities to farmers in Adjara re-gion)
● Partner Bank of SBFIC (Savings Banks Foundation for international Cooperation) – Technical Assistance fi nanced by KFW and GTZ
● Member of Banking Associating for Central and Eastern Europe BACEE ● Principal Member of international payment system – VISA International● Swiss Agency for Development and Cooperation – Poverty reduction project for vul-
nerable families● S.W.I.F.T. – Society for Worldwide Interbank Financial Telecommunication● TGBR – The Global Banking Resourceanking Resource● Partnership with Ameerican Express – (500 thsd. USD Credit Line for Travelers . USD Credit Line
Cheques)● America’s Chamber of Commerce● Deutsche Bank AG● Dresdner Bank AG● DZ Bank AG● Wincor - Nixdorf – Straategic Partner for providing Banking Equipmentmentsgic Partner for providing Banking ● CHF- Co-fi nancing of aagrro sector across Georgia● IFC- Corporate governnannce project● Conducting Credit Asssessment of People’s Bank by FITCHsment of People’s Bank by FITCH
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FUTURE CO-OPERATION
“People’s Bank of Georgia” with its 200 branches (include 9 Pavilions) represent the widest network in Georgian banking system. By its placement bank’s 36 branches are distributed in regions wherethey are the only representatives of a banking system, which is the half of the whole Georgian ter-ritory. Majority of population every day uses the services of “People’s Bank” and this fact gives theconsideration that bank can strengthen trust between banks and customers. Beginning from its foundation, main goal of “People’s Bank” is to suggest unique, trustworthy, highquality and modern banking products to the all levels of population throughout the whole country. Short – Term Goals:
● Candidate for the second round of CGF (Credit Guarantee Fund) Project - fi nanced by KFW(SME Support in Georgia)
● Candidate for the second round Agriculture Development Project of the World Bank● Planning to be a Principal Member of international payment system – MasterCard
Long – Term Goals:● To build a sound regional fi nancial institution represented in Caucasus Regionented in Caucasus Reg
This presentation contains statemments that constitute “forward-looking statemenments”, including, but not nts that constitute “forward-lookinlimited to, statements relating to the implementation of strategic initiatives and othend other statements relat- implementation of strategic iniing to our business development annd fi nancial performance.While these forward looking statements re resent our ud ment sand future expectations concern-ns concern-ments represent our judgment saing the development of our business, a number of risks, uncertainties and other factors could causeauss, a number of risks, uncertainties and other factors could causeactual developments and results to differ materially from our expectations.ffer materially from our expectations.
Caution Regarding Forward-Looking Statements
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