Q2 results presentationbgeo.com/uploads/presentations/1156.pdfJSC Bank of Georgia Q2 and 1H 2010 results overview. August 2010 Page 4 Q2 and 1H 2010 P&L results highlights Millions

August 2010

GROWTH AT THE RIGHT PRICELSE: BGEO / GSE:GEB

JSC Bank of Georgia Q2 & 1H 2010 results overview

Page 2August 2010

Introduction to Bank of Georgia

Investment highlightsUndisputed leader of Georgian financial services industry with market-leading retail and corporate banking franchiseStrongly positioned to benefit from US$4.5 bln international assistance package pledged to Georgia by international donors in the aftermath of Russia-Georgia conflict in August 2008Disciplined capital management, low leverage, conservative liquidity position, no exposure to sub-primeSophisticated management team with Western banking & finance backgroundTransparency and good governance, over 89% institutionally owned. Supervisory Board includes two large institutional shareholders and two independent directors

The leading universal bank in Georgia

Leading corporate bank with approximately 88,100+ legal entities and over 164,800+ current accountsLeading card-processing, leasing, insurance, wealth management and asset management services providerThe only Georgian entity with credit ratings from all three global rating agencies

S&P: ‘B/B’ – at the sovereign ceilingFitch Ratings: ‘B+/B’Moody’s: ‘B3/NP (FC)’ & ‘Ba3/NP (LC)’

Listed on the London Stock Exchange (GDRs) and Georgian Stock ExchangeMarket Cap (LSE) US$ 388 mln as of September 1 2010Approximately 95% free float

Issue of the first ever Eurobonds in GeorgiaBloomberg: BKGEO; 5 year, 9%, US$200 mlnB/Ba2/B (composite B+)

No.1 by assets (35%), (1) gross loans (33%), (1) client deposits (30%) (1) and equity (40%) (1)

Leading retail banking, with top brand, best distribution network and broadest range of services of any bank in Georgia

394379387ATMs

140140137Branches

590,000+570,000+551,000+Cards Outstanding

935,000+996,000+953,000+Retail Accounts

200920102010

JuneMarchJune

(1) All data according to the NBG as of 30 June 2010

August 2010

JSC Bank of Georgia Q2 and 1H 2010 results overview

Page 4August 2010

Q2 and 1H 2010 P&L results highlightsQ2 2009Millions unless otherwise noted Q2 2010 Q1 2010 Growth1 Growth 2

Bank of Georgia (Consolidated, IFRS-Based) GEL US$ GEL US$ Q-O-Q GEL US$ Y-O-Y(Unaudited) (Unaudited) (Unaudited)

Net Interest Income 51.7 28.0 45.3 25.9 14.2% 49.5 29.8 4.5%Net Non-Interest Income 31.1 16.9 30.6 17.5 1.6% 31.1 18.8 -0.1%Total Operating Income (Revenue)2 82.8 44.9 75.9 43.4 9.1% 80.6 48.6 2.7%Recurring Operating Costs 47.8 25.9 46.3 26.4 3.3% 46.3 27.9 3.2%Normalized Net Operating Income3 35.0 19.0 29.6 16.9 18.1% 34.3 20.7 2.1%Net Non-Recurring Income (Costs) 1.9 1.0 (3.3) (1.9) NMF (0.3) (0.2) NMFProfit Before Provisions 36.8 20.0 26.4 15.1 39.8% 34.0 20.5 8.5%Net Provision Expense 13.1 7.1 7.4 4.2 77.6% 40.7 24.5 -67.9%Net Income/ (Loss) 19.5 10.6 16.8 9.6 16.3% (4.3) (2.6) NMF

1 Compared to Q1 2010, growth calculations based on GEL values.2 Compared to the same period in 2009; growth calculations based on GEL values.3 Revenue includes Net Interest Income and Net Non-Interest Income.4 Normalized for Net Non-Recurring Costs.

17.8%15.8%Tier I Capital Adequacy Ratio (NBG)18.4%14.5%Total Capital Adequacy Ratio (NBG)

1H 2009Millions unless otherwise noted 1H 2010 Growth 1

Bank of Georgia (Consolidated, IFRS-Based) GEL US$ GEL US$ Y-O-Y(Unaudited) (Unaudited)

Net Interest Income 96.9 52.6 101.9 61.4 -4.9%Net Non-Interest Income 61.7 33.5 60.4 36.4 2.2%Total Operating Income (Revenue)3 158.6 86.0 162.3 97.9 -2.2%Recurring Operating Costs 94.1 51.0 91.0 54.9 3.4%Normalized Net Operating Income4 64.6 35.0 71.3 43.0 -9.4%Net Non-Recurring Income (Costs) (1.4) (0.8) (0.5) (0.3) NMFProfit Before Provisions 63.2 34.3 70.8 42.7 -10.7%Net Provision Expense 20.4 11.1 72.8 43.9 -71.9%Net Income/ (Loss) 36.2 19.7 0.8 0.5 NMFTier I Capital Adequacy Ratio (BIS) 19.6% 23.4%Total Capital Adequacy Ratio (BIS) 32.5% 35.6%

Page 5August 2010

30 June 2010 Balance Sheet results highlights

13.69 22.70 11.17 19.53 11.24 20.73 Book Value Per Share, GEL & US$

428.2 709.9 349.6 611.7 352.1 649.3 Shareholders’ Equity

1,325.7 2,197.9 1,436.2 2,512.4 1,530.6 2,822.7 Total Liabilities

610.0 1,011.4 521.3 912.0 512.7 945.6 Borrowed Funds

643.2 1,066.4 841.8 1,472.7 947.8 1,747.9 Total Deposits

1,753.92,907.81,785.8 3,124.1 1,882.6 3,471.9 Total Assets

1,055.3 1,749.6 1,015.9 1,777.3 1,070.1 1,973.5 Net Loans

(Unaudited)(Unaudited)(Unaudited)

US$GELUS$GELUS$GELBank of Georgia (Consolidated, IFRS-Based)

Q2 2009Q1 2010Q2 2010Millions, unless otherwise noted

-8.7%6.1%Book Value Per Share,

-8.5%6.1%Shareholders’ Equity

28.4%12.3%Total Liabilities

-6.5%3.7%Borrowed Funds

63.9%18.7%Total Deposits

19.4%11.1%Total Assets

12.8%11.0%Net Loans

Q2 10/Q2 09Q2 10/Q1 10

ChangeChange

Page 6August 2010

Composition of revenue in Q2 and 1H 2010Revenue by segments, Q2 2010Composition of Revenue, Q2 2010

Consolidated

Total Revenue: GEL 82.8 million in Q2 2010 and GEL 158.6 in 1H 2010

Composition of Revenue, 1H 2010 Revenue by segments, 1H 2010

Net interest income 62.4%,GEL 51.7 mln

(+14.2% q-o-q)

Net income from documentary

operations 2.6%,GEL 2.2 mln

(-1.1% q-o-q)

Net foreign currency related

income 10.7%,GEL 8.8 mln

(+20.5% q-o-q)

Net fee and commision

income13.1%,GEL 10.9 mln(+5.2% q-o-q)

Net other non-interest income

11.2%,GEL 9.3 mln

(-14.3% q-o-q)

Net other non-interest income

12.6%,GEL 20.0 m ln(+12.3% y-o-y)

Net fee and commision

income13.3%,GEL 21.2 m ln(-6.8% y-o-y)

Net fore ign currency related

income 10.2%,GEL 16.2 m ln(+2.2% y-o-y)

Net income from documentary

operations 2.7%,GEL 4.3 m ln

(+7.8% y-o-y)

Net interest income 61.1%,GEL 96.9 m ln (-4.9% y-o-y)

Other2.7%,

GEL2.3 mln(-62.6% q-o-q )

Aldagi BCI 5.7%,

GEL4.7 mln(+4.4% q-o-q)

Belarus 3.6%,

GEL3.0 mln(+1.6% q-o-q)

Ukraine 4.9%,

GEL4.1 mln(+33.5% q-o-q)

BoG Standalone 83.0%,

GEL68.7 mln(+15.7% q-o-q)

BoG Standalone

80.7%,GEL128.1 mln(-0.7% y-o-y)

Ukraine 4.5%,

GEL7.2 mln(-35.3% y-o-y)

Belarus 3.7%,

GEL5.9 mln(+42.0% y-o-y)

Aldagi BCI 5.8%,

GEL9.3 mln(-3.6% y-o-y)

O ther5.2%,

GEL8.3 mln(-3.6% y-o-y )

Page 7August 2010

Analysis of revenue

Net fee & commission income & Income from documentary operations

Net foreign currency related incomeRevenue growth

Other non-interest income

Consolidated

30.9 33.542.8

49.855.8 58.9 56.4 52.4 49.5 48.9 46.0 45.3

51.7

21.322.7

25.3

31.330.3 27.1 30.2

29.3 31.1 30.4 31.3 30.631.1

0

10

20

30

40

50

60

70

80

90

100

Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

GEL mln

Net Interest Income Net Non-Interest Income

82.881.7

86.685.986.181.1

68.1

56.252.2

77.4 75.980.6 79.3

5.66.9 7.6

10.2 10.2

12.910.9 11.1 11.6 12.0 12.6

10.3 10.91.3

1.81.9

1.4 1.9

1.7

1.42.3 1.8

2.32.3

2.22.2

0

2

4

6

8

10

12

14

16

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

Net Fee & Commission Income Net Income From Documentary Operat ions

14.9

7.16.5

5.7

7.3

8.8

6.1 6.2

10.1

13.2

10.49.4 8.8

0

2

4

6

8

10

12

14

16

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

2.1

-0.11.6 1.7 2.5 3.2 3.0

5.1 4.93.7 4.2 4.2

1.0

1.3 1.6 0.10.3

1.3

1.9 0.2

0.6 0.20.1

0.22.4

-0.1 -0.4 -1.1

-3.4

0.0

0.61.9

1.9

2.63.3

4.7

1.4

1.03.6

3.7 3.0 4.4 4.4

4.6

1.4

0.51.4

1.9

0.40.2

0.20.3

0.21.8

0.03.0

-0.5-0.4

0.2

3.3

-6

-4

-2

0

2

4

6

8

10

12

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

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

Page 8August 2010

Analysis of recurring operating costsRecurring operating cost structure by segments,

Q2 2010Recurring operating cost structure, Q2 2010

Consolidated

Total recurring operating costs: GEL 47.8 million in Q2 2010 (up 3.3% q-o-q), and GEL 94.1 million in 1H 2010 (up 3.4% y-o-y)

Recurring operating cost structure, 1H 2010 Recurring operating cost structure by segments, 1H 2010

Other operating costs 6.4%

GEL 3.1 mln(+4.9% q-o-q)

Procurment & operations support

costs 6.9%,GEL 3.3 mln

(-5.7% q-o-q)

Depreciation & amortization 13.7%,

GEL 6.5 mln(-1.6% q-o-q )

Selling, general & administrative costs

19.3%,GEL 9.2 mln

(-5.7% q-o-q)

Personnel costs 53.7%,

GEL 25.6 mln(+9.7% q-o-q)

Personnel costs 52.1%,

GEL 49.0 mln(+8.5% y-o-y)Sell ing, general &

administrative costs 20.2%,

GEL 19.0 m ln(-12.1% y-o-y)

Depreciation & amortization 14.0%,

GEL 13.2 mln(+12.2% y-o-y )

Procurment & operations support

costs 7.2%,GEL 6.8 m ln(-0.5% y-o-y)

O ther operating costs 6.4%

GEL 6.0 mln(+8.3% y-o-y)

O ther, 11.0%GEL 5.3 mln

(-16.8% q-o-q)

Aldagi BCI, 8.0%

GEL 3.8 mln(+13.9% q-o- q)

BNB, 4.2%GEL 2.0 mln

(+12.1% q-o-q )

BG Bank, 8.9%GEL 4.2 mln

(+7.1% q-o-q)

BoG standalone,

67.9%GEL 32.5 mln(+5.6% q-o-q)

BoG standalone,

67.2%GEL 63.2 mln(+8.1% y-o-y)

BG Bank, 8.7%GEL 8.2 mln

(-19.9% y-o-y)

BNB, 4.0%GEL 3.8 mln

(+27.2% y-o-y )

Aldagi BCI, 7.2%

GEL 6.8 mln(-1.8% y-o-y )

O ther, 12.8%GEL 12.1 mln(-2.5% y-o-y)

Page 9August 2010

Analysis of recurring operating costs cont’d

Cost/Income ratio

Personnel costsEmployees

Normalized net operating income, Profit before provisions

Consolidated

17.8

25.727.3

23.122.0

23.2 22.3 22.5 23.425.6

28.4

0

5

10

15

20

25

30

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

30.8 29.635.036.8

32.426.4

36.834.336.6 37.3 36.3 38.7 37.1 34.334.0

45.140.5

33.7

8.7

(76.1)-80

-60

-40

-20

0

20

40

60

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

GEL mln

Normalised Net Opearting Income Profit Before P rovisions

4,911

2,692

3,056

3,619

3,853

2,741

2,692

2,665

2,669

2,674

2,825

2,968

821

824

836

842

786

757

707

617

621

393

279

5,048

4,781

4,798

4,914

4,964

4,977

6,196

5,911

4,926

4,459

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Group Consolidated BoG Standalone BG Bank

49.9% 55.5%

90.0%

60.8% 59.1%

198.3%

57.8%

52.9%44.4%

55.5%

65.3%

42.2%

54.9%44.0%

60.7%50.0% 50.5%50.8%

41.0%

45.1%56.6%49.6%

46.8%58.0% 53.9% 49.9%

230.0%

100.1%

35.7%

76.0%

109.2%

91.5%116.9%

74.7%

140.5%

106.5%

55.6%64.5%

62.8% 61.5% 66.6%84.6%

90.7%

67.9%60.6%80.4%

0%

40%

80%

120%

160%

200%

240%

Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010Cost/Income Ratio, ConsolidatedCost Income Ratio, Bank of Georgia StandaloneCost/Income Ratio, BG BankCost/Income Ratio, BNB

Page 10August 2010

Composition of assets as at 30 June 2010Consolidated

23.4 22.2 19.7 11.9 Intangible Assets Owned Net

GEL million 30-June-09 31-Dec-09 31-March-10 30-June-10Available-For-Sale & Trading Securities 28.4 21.7 17.8 16.8 Treasuries And Equivalents - 249.2 249.2 287.8 Other Fixed Income Instruments 59.1 - - -Insurance Related Assets 47.4 26.7 32.6 36.1 Investments In Other Business Entities & Investment Property 80.9 89.2 103.2 104.6

Goodwill 135.3 65.8 68.8 69.2 Tax Assets, Current And Deferred 8.3 23.5 23.8 24.5 Prepayments And Other Assets 48.9 36.6 52.6 60.3 Other Assets 420.2 532.3 570.2 622.7

Note: Net loans include Net finance lease receivables

622.7570.2532.3420.2

276.5280.4284.2

1,973.51,777.3

1,678.21,749.6

427.2

322.2265.5311.5

155.2

177.9

157.0142.4

293.4

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q2 2010Q1 2010YE 2009Q2 2009

Cash & Equivalents

Loans & Advances To CreditInstitutions

Net Loans

Property & Equipment

Other Assets

GEL mln

5.7%of total assets

56.9% of total assets



10.3% of total assets5.4% of total assets










2,913

3,124

2,908

3,472






Page 11August 2010

Composition of gross loan book as at 30 June 2010Consolidated

Georgia: RB & WM, CB

Ukraine: BG Bank

Belarus: BNB

Numbers do not include CC/Eliminations

Gross loan book Q2 2010: GEL 2,163.3 million

BG Bank, 255

BG Bank, 265 BG Bank, 194

BG Bank, 199

BG Bank, 190

BG Bank, 191

BG Bank, 201 BNB, 35

BNB, 36

BNB, 30

BNB, 27 BNB, 26

BNB, 25

BNB, 33

BNB, 41

CB, 881 CB, 919 CB, 870 CB, 821 CB, 796 CB, 806 CB, 755 CB, 880 CB, 951 CB, 1,017

RB & WM, 790 RB & WM, 965 RB & WM, 976 RB & WM, 1,050 RB & WM, 983 RB & WM, 854 RB & WM, 887 RB & WM, 910 RB & WM, 867 RB & WM, 966

BG Bank, 184 BG Bank, 257

BG Bank, 186

0

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 Q2 2010

GEL mln

47% of gross loans

39% of gross loans

46% of gross loans

42% of gross loans

4 3% of gross loans

44% of grossloans

48% of gross loans

42% of gross loans

48% of gross loans

44% of gross loans 42% of gross

loans

48% of gross loans

41% of gross loans

47% of gross loans

44% of gross loans

46% of gross loans

49% of gross loans

45% of gross loans

47% of gross loans

45% of gross loans

+17.2%

Page 12August 2010

Securities portfolio as at 30 June 2010Breakdown of securities investmentsBreakdown of securities portfolio,

30 June 2010

Consolidated

Total securities portfolio: GEL 16.8 million

16,7949,3687,426Total

---Other

---BNB (Belarus)

7,426-7,426BG Bank (Ukraine)

1,145 1,145 -SBRE

3,0153,015-Liberty Consumer

4,4184,418-Aldagi BCI

790790-BG Capital

TotalEquityDebtGEL '000s

Local Debt, 44%

Equities, 56%

Page 13August 2010

Liabilities breakdown as at 30 June 2010Consolidated

30-June-09 31-Dec-09 31-March-10 30-June-10Issued Fixed Income Securities 0.2 0.7 - 3.7 Insurance Related Liabilities 59.7 34.2 42.7 44.9 Tax Liabilities, Current And Deferred 19.4 25.2 27.3 31.4 Accruals And Other Liabilities 40.9 46.6 57.8 49.2 Other liabilities 120.1 106.8 127.8 129.2

Total liabilities 30 June 2010: GEL 2,822.7 million

249.378.222.541.1

1,498.5

1,394.41,272.5

1,025.3

945.6

912.0913.3

1,011.4

129.2

127.8106.8

120.1

649.3

611.7

598.4709.9

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q2 2010Q1 2010YE 2009Q2 2009

GEL mln

Total equity

Other Liabilites

Borrowed Funds

Client Deposits

Deposits And Loans From Banks

21% of total liabilities + equity















3,124

3,124

2,9132,908






Page 14August 2010

Client deposits breakdownConsolidated

Client deposits Q2 2010: GEL 1,498.5 millionNote: 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 , 605 CB , 595 CB , 588 CB , 683

BG Bank, 216

BG Bank, 180

BG Bank, 121

BG Bank, 115

BG Bank, 117

BG Bank, 139

BG Bank, 122

BG Bank, 142

BNB , 16

BNB , 20

BNB , 16

CB , 652 CB , 681 CB , 576 CB , 656

CB , 518

RB & WM, 458 RB & WM, 534 RB & WM, 396 RB & WM, 416 RB & WM, 374 RB & WM, 391 RB & WM, 463 RB & WM, 539 RB & WM, 595 RB & WM, 663

BG Bank, 171

BG Bank, 127 BNB , 27

BNB , 31

BNB , 25

BNB , 18

BNB , 12

0

200

400

600

800

1,000

1,200

1,400

1,600

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

GEL mln

CB RB & WM BG Bank BNB

34% of client deposits









1,326

1,395

1,2021,193

1,133



1,025

1,183


1,272







1,394

1,499



August 2010

Capital adequacy & wholesale funding

Page 16August 2010

Capital adequacy

Risk-weighted assets BIS vs. NBG

NBG capital adequacy ratios, BoG standaloneBIS capital adequacy ratios, BoG consolidated

Net loans/deposits & loans/(deposits+equity), BoG consolidated

18.3%

15.8%

18.2%16.6% 16.4%

17.8%

20.4% 19.7%17.7%

15.8%

16.3% 16.8% 15.9% 14.5%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 Q2 2010 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

161.2% 164.1%

135.4%129.6%

120.7%112.9%

88.6% 85.3% 82.3%

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 Q2 2010

Net Loans/Total Deposits Net Loans/(Total Deposits+Equity)

25.2% 25.0%23.4%

21.7% 21.4%19.6%

32.5%

24.9%22.6%21.7%

24.7%

36.2%35.6%34.3%

26.5%25.3%

25.8%25.8%

34.9% 33.8%

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 Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

2,7292,613 2,601 2,532

2,689

2,975

3,4583,302

3,0412,870

3,128

1,031

2,5932,734

2,516

2,944

1,724

3,100

3,605

3,1322,720

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 Q2 2010

GEL mln

BIS NBG

Page 17August 2010

International borrowings

International borrowings repayment schedule

International borrowings - fixed vs. floating rates, 30 June 2010

Selected international loans

International borrowings by currencies, 30 June 2010

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

Euro, 0.1%

US$, 99.9%

Fixed Interest Rate, 79%

Floating Interest Rate, 21%

30,31572,021

439,406

125,842

24,394 9,205 6,225 24,417

184,420

7,1450.9%

2.1%

13.0%

3.7%

5.5%

0.7%0.2%0.2%

0.3%0.7%

0.0

50,000.0

100,000.0

150,000.0

200,000.0

250,000.0

300,000.0

350,000.0

400,000.0

450,000.0

500,000.0

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%

Principle Amounts Outstanding as of June 30, 2010 (LHS) As % of June 30, 2010 Assets (RHS)

Key LendersPrinciple Amount

Outstanding as of June 30, 2010

Maturity

Syndicated Loan arranged by Citi and ADB, 3rd Tranche US$ 8.3 million 2010Eurobonds US$ 150.0 million 2012Senior Term Loan from FMO US$ 9.1 million 2014Senior Term Loan from WorldBusiness Capital US$ 6.2 million 2016Subordinated Loan from HBK Investments (Call in 2012) US$ 15.0 million 2017Subordinated Loan from Merrill Lynch (Call in 2012) US$ 35.0 million 2017Senior Term Loan from WorldBusiness Capital (GLC) US$ 4.4 million 2017Subordinated loan from FMO and DEG (Call in 2013) US$ 30.0 million 2018Senior Loan from OPIC US$ 27.4 million 2018Subordinated Loan from OPIC US$ 10.0 million 2018Senior Term Loan from IFC US$ 50.0 million 2013Senior Term Loan from EBRD US$ 50.0 million 2014Subordinated Loan from IFC US$ 24.0 million 2019Subordinated Loan from EBRD US$ 24.0 million 2019Convertible Loan from IFC US$ 26.0 million 2019Convertible Loan from EBRD US$ 26.0 million 2019Other, USD denominated US$ 4.7 million NMF Other, EUR denominated EUR 0.6 million NMF Total US$ 500.7 million

August 2010

Business overview

Page 19August 2010

Group structure

Page 19

BoG Group

Rep

ortin

g L

ines

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 BCIBG Capital Bank of Georgia BGB BNB

August 2010

BoG standalone results overview

Page 21August 2010

BoG standalone performance

Net income

Recurring operating cost structure, Q2 2010Revenue performance

Cost/Income Ratio

Standalone

45.3 50.1 52.2 51.1 50.4 45.5 44.5 44.8 42.647.9

21.321.0 19.2 18.5 16.3

16.8 17.0 17.516.8

20.8

0

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 Q2 2010

GEL mln

Net Interest Income Net Non-Interest Income

66.671.1 71.4 69.9 66.6

62.3 61.5 62.359.4

68.7

Personnel costs, 53.0%

GEL 17.2 mln(+11.3% q-o-q)Selling, general &

administrative expenses, 17.4%

GEL 5.6 mln(-6.8% q-o-q)

Procurement & operations support

expenses, 8.0%GEL 2.6 mln

(-8.3% q-o-q)

Depreciation & amortization,

17.1%GEL 5.5 m ln

(+0.8% q-o-q)

O ther operating expenses, 4.5%

GEL 1.5 m ln(+63.9% q-o-q)

25.4 28.4

-58.0

28.8

11.3

0.9

10.8 7.812.8

24.0

-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q121010

Q2 2010

GEL mln60.7%

53.9%

45.1%

41.0%

50.0%50.8%50.5%

44.0%

58.0%

49.9%

44.5%

44.7%

47.3%43.1% 43.2%

47.7%48.9%54.0% 51.8%

47.3%

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 2010Cost/income, Bank of Georgia standalone

Normalized Cost/Income, Bank of Gerorgia standalone

+9.1%

+16.3%

Page 22August 2010

Composition of assets as at 30 June 2010Standalone

GEL million Q2 09 YE 09 Q1 10 Q2 10

Treasuries And Equivalents - 249.2 249.2 268.2 Other Fixed Income Instruments 57.3 - - -Investments In Other Business Entities, Net and Investment Property 314.5 334.1 356.1 395.5 Intangible Assets Owned, Net 7.3 14.3 16.9 18.2 Goodwill 22.8 22.8 22.7 22.7 Tax Assets, Current And Deferred - 6.6 6.1 6.1

Prepayments And Other Assets 27.2 25.8 23.9 33.4 Other assets 429.0 652.9 674.9 744.2

744.2674.9652.9429.0

231.4216.0226.4

224.2

1,845.81,700.51,606.3

1,602.0

445.0

314.4222.8

321.2

114.7

134.0109.8

127.3

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q2 2010Q1 2010YE 2009Q2 2009

GEL mln

Cash & Equivalents

Loans & Advances To CreditInstitutions

Net Loans


Other Assets

4% of total assets

10% of total assets

56% of total assets

7% of total assets

22% of total assets

3,381

2,686

5% of total assets

8% of total assets

57% of total assets

8% of total assets

23% of total assets

3,033

4% of total assets

10% of total assets

56% of total assets

7% of total assets

22% of total assets

2,842

22% of total assets

55% of total assets

13% of total assets

7% of total assets

3% of total assets

Page 23August 2010

Analysis of the loan bookStandalone

* Other loans include car, POS and legacy retail loans

36.3

929.6

1,017.4

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Q2 2010

GEL mln

CB

RB

WM

1,983.4

Credit cards and overdrafts, 15%

Micro loans, 16%

Mortgage loans, 42%

Consumer and other, 27%

FMCG, 13%

Energy, 11%

Industry & State, 12%

Construction & Real Estate, 17%

Other, 14%Pharmaceuticals and Healthcare,

2%Trade, 31%

Page 24August 2010

Analysis of the loan book

Loans by maturity, 30 June 2010

Loan concentration , 30 June 2010Loans by currency, 30 June 2010

Loan book collateralization , 30 June 2010

Standalone

10.5%

13.4%

16.5%

19.5%

0%

5%

10%

15%

20%

25%

Q2 2009 Q2 2010Top 10 Borrowers Top 20 Borrowers

86.6% 88.0%

0%

20%

40%

60%

80%

100%

Q2 2009 Q2 2010

31.2% 27.5% 29.3%

68.8% 72.5% 70.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RB & WM CB TotalGEL Foreign Currency

4% 3%7%

19%

67%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Less than 1month

1 to 3 months 3 to 6 months 6 to 12 months Over 1 year

Page 25August 2010

Provisioning

Reserve for loan losses to gross loans

NPL coverage ratioNPLs & write-offs, 30 June 2010

Impairment seasoning, Q2 2010

Standalone

2.97% 3.54%

6.51%

1.52%

0.44%

1.08%

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% 106.5%

99.3%122.2%169.1%

138.3%

118.8%119.3% 102.6% 109.3%

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

BoG Standalone BoG Consolidated

9.2% 8.8%7.5% 6.9%

2.1% 2.1%

6.3% 5.0%

6.6%

8.1%

9.5%

9.4%

1.9% 2.0%

6.8%

4.9%

5.5%

6.7%

7.5%7.4%

1.6%

6.4%

1.7%

1.5%

19.8%

2.0%

12.2%8.4%

6.7%

2.5%4.2%1.7%

22.8%

-1.0%

10.0%

6.7%2.0%

4.3%2.8%

1.3%

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 Q2 2010-5%

0%

5%

10%

15%

20%

25%

Reserve for loan los ses to Gros s loans, BoG ConsolidatedReserve for loan los ses to Gros s loans, BoG StandaloneCost of risk , BoG Consolidated, annualisedCost of risk , BoG Standalone, annualised

4.0%4.5%

3.5%

1.3%2.0%

1.4%0.7%

1.2%0.4%

0.10%

1.8%0.84%

1.7%

1.7%

1.4%

1.5%

604.0

356.7

501.1

200.9

300.9

179.8

439.3

239.1

548.3

327.6

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 20100.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0GEL mln

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

NPLs include 90 days overdue loans, including principal amount and interest payments

Page 26August 2010

Provisioning cont’d – BoG standalone

RB & WM loan loss reserve breakdown by loan type, 30 June 2010

NPLsLoan loss reserve

CB loan loss reserve breakdown by loan type, 30 June 2010

Standalone

Other, 7.9%GEL (4.3 mln)

Pharmaceuticals & Healthcare,

0.5%GEL (0.2 mln)

Industry & State 3.4%

GEL (1.8 mln)

Construction & Real Estate

23.2%GEL (12.6 mln)

Fast Moving Consumer

Goods, 5.1%GEL (2.8 mln )

Energy, 13.3%GEL (7.3 mln)

Trade, 46.6%GEL (25.3 mln)

Mortgage loans, 21.4%

GEL (17.8 mln)

Consumer and other, 12.5%

GEL (10.4 mln)Credit cards and overdrafts,

61.1%GEL (50.8 mln)

Micro loans, 5.0%

GEL (4.2 mln)

16.5 14.5 22.2 29.849.8 57.7

67.9 67.9 70.9 76.7 83.2

11.4 16.310.8

83.6

46.9 55.6 57.461.0 54.4

48.3

44.9

2.0% 1.9% 2.0%

4.9%5.5%

7.5% 7.4% 7.5%6.9%

6.7%6.8%

0

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 Q2 2010

GEL mln

0%

1%

2%

3%

4%

5%

6%

7%

8%

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

8.7 8.1 9.7 12.022.7

46.367.4

54.535.9

67.6 70.3

16.6 10.922.4 11.3

41.6

41.1

51.361.4

75.4

69.2 58.9

1.7%1.2%

1.7%1.3%

3.2%

4.7%

6.9% 7.0%

6.4%

7.4%

6.5%

0

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 Q2 2010

GEL mln

0%

1%

2%

3%

4%

5%

6%

7%

8%

RB &WM CB % of Gross loans

Page 27August 2010

BoG standalone liabilitiesLeverage 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 3.12.8 2.8 2.8 3.0 3.23.3

0

1

2

3

4

5

2007 Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

796.1

57.7

945.6

1,346.6

235.1

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q2 2010

GEL m ln


Client Deposits

Borrowed Funds

Other Liabilities

Total Shareholders Equity

24% of Total Liabilities + equity




2% of Total Liabilitis + equity

3,381

34.2% 33.8%

27.2% 27.3%

38.0%

43.5%

35.6%38.8%

34.8%37.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Page 28August 2010

Analysis of deposits

CB, RB & WM deposits, BoG standalone

Client deposits by currency, 30 June 2010 Client deposit breakdown, 30 June 2010

Deposits by maturity, 30 June 2010

Standalone

Individual current accounts, 10.4%

Corporate time & demand deposits,

15.5%

Individual time & demand deposits,

38.9%

Corporate current accounts, 35.3%

22.1%

44.8%

2.4%

30.5%

77.9%69.5%55.2% 97.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RB CB WM TotalGEL Foreign Currency

55%

0%

5% 5%

22%

13%

0%

10%

20%

30%

40%

50%

60%

On Demand Less than 1month

1 to 3 months 3 to 6 months 6 to 12 months Over 1 year

363.6 326.0 319.8 280.4 283.1 331.2 376.1450.8

76.570.4 98.7

93.3 107.8131.4

163.1180.7

212.3

403.4 414.7

81.6

652.7 681.5 576.2 626.7 605.2 518.4 594.9 587.6656.1

683.5

0

200

400

600

800

1,000

1,200

1,400

1,600

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

GEL mln

RB Client Deposits WM Client Deposits CB Client Depos its

+11%

+4%

-19%

-15% +9%

-2%

-3%

-12% 1%

-14%+15%

17%

+22%+15%-5%+40%-14%+7% +24%

+14%

-1%

+10%

+12%

+11%+17%

+9%

+4%

Page 29August 2010

Deposit yieldsStandalone

9.1%8.2% 8.0%

10.4%

12.5%13.7% 14.1%

11.7%

9.6%9.0%

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%6.9%

6.8%

6.7%6.6% 7.3%

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 Q2 2010

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

Page 30August 2010

Risk managementCurrency risk managementLiquidity risk management, Q2 2010

Standalone

13.4

354.8

660.7644.8

237.9

665.3

-

397.0

568.7

344.5

209.0

1,089.5

(31.6)(45.0)(2.9)

(94.9)

(395.3)(424.2)-600

-400

-200

0

200

400

600

800

1,000

1,200

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%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Dec

-07

Mar

-08

Jun-

08

Sep-

08

Dec

-08

Mar

-09

Jun-

09

Sep-

09

Dec

-09

Mar

-10

Jun-

10

Open Foreign Currency Position (as % of Regulatory Capital)

Page 31August 2010

Corporate banking

Corporate client deposits, 30 June 2010

Corporate loan portfolio, 30 June 2010 Overview

Corporate gross loan portfolio growth

Standalone

Integrated client coverage in the following key sectors

Construction & Real EstateEnergyFast Moving Consumer GoodsFinancial InstitutionsForeign Organizations & Diplomatic MissionsPharmaceuticals & HealthcareRetail & Wholesale TradeState & IndustryTelecommunications, Media & TechnologyTransport & LogisticsSME

No.1 corporate bank in GeorgiaCirca 37.9% market share based on customer deposits(1)

Circa 29.6% market share based on corporate loans(2)

Integrated client coverage in key sectors88,000+ clients of which 9,330 served by dedicated relationshipbankersCirca 47% market share in trade finance and documentary operations(2)

Second largest leasing company in Georgia(2) – Georgian Leasing Company (GLC)Increased the number of corporate clients using the Bank’s payroll services from 1,475 in Q1 2010 to 1,567 in Q2 2010Approximately 5,000 corporate accounts were opened at the bank in Q2 2010, bringing the total number of current accounts to 164,818

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

Total corporate deposits: GEL 683.5 mln

874826

875

794

928870

806765

880

951

1,017

0

200

400

600

800

1,000

1,200

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 30-Jun-10

GEL mln

-5% +6% -9% +17% -5%-7%-6%+15% +8% +7%

FMCG, 13%

Energy, 11%


Construction & Real Estate, 17%

Other, 14%Pharmaceuticals and Healthcare,

2%Trade, 31%

Current Accounts &

Demand Deposits,

80%

Time Deposits,

20%

Page 32August 2010

Retail Banking – No. 1 retail bank in Georgia

Leadership in consumer lending

RB loan portfolio, 30 June 2010Retail loans originated

Retail gross loan portfolio growth

Standalone

Total retail loans: GEL 929.6 mln Note: does not include Ukraine & Belarus

74,51078,36197,308• Credit Cards Outstanding, of which

1,0434900• Number of Solo clients outstanding, (premier banking)19,6036,4000§ American Express cards

Q2 2009 Q1 2010 Q2 2010

Number of consumer loans outstanding 56,462 50,335 52,423• Volume of consumer loans outstanding (GEL mln) 130.1 116.7 130.9

122.1

177.5 183.3

235.6

266.9

317.6

140.2

74.9 68.8

97.5 104.9128.2

186.9

55.9

0

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 Q2' 10

GEL mln

Mortgage loans, 41%

Consumer and other*, 27%

Credit cards and overdrafts , 15%

Micro loans, 17%

656

755

931995

932861

809 807847

930922

-

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 Q2 10

GEL m ln

+15%+10%+22% +1% +7% -6% -6%-8% -0.2% +5%

Page 33August 2010

Loan origination

Micro loans (RB & WM)

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

Other RB & WM loans

Standalone

45.8

143.6

48.7

121.6

65.2

135.5

-

20

40

60

80

100

120

140

160

Volume of Consumer LoansOriginated

Volume of Consumer LoansOutstanding

GEL mln

Q2 2009 Q1 2010 Q2 2010

+34%

+6%

-15%+11%

267.5284.7

3.6 2.8

259.7

5.0-

50

100

150

200

250

300

Volume of Other RB & WMLoans Originated*

Volume of Other RB & WMLoans Outstanding

GEL mln

Q2 2009 Q1 2010 Q2 2010

-23%

-9%

+81%

-52%

+3%

373.7

11.5 27.0

385.1

46.7

406.1

-

50

100

150

200

250

300

350

400

450

Volume of MortgageLoans Originated

Volume of MortgageLoans Outstanding

GEL mln

Q2 2009 Q1 2010 Q2 2010

+3%

+135%

+73%

+5%

101.3

16.8

120.7

51.6

71.7

156.8

-

20

40

60

80

100

120

140

160

180

Volume of Micro LoansOriginated

Volume of Micro LoansOutstanding

GEL mln

Q2 2009 Q1 2010 Q2 2010

+207%

+19%

+39%

+30%

Page 34August 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

121.7 125.9 119.1100.2 94.8 99.0

112.8 113.7 116.7128.4

8.016.9

16.2

25.820.0

34.9

40.6 34.640.7

33.0

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

GEL mln

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

GEL mln

10,912

17,13617,855

19,403

12,051

15,312

18,322 18,739 19,092 18,518

-

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 Q2 2010

169.9 185.3120.9 95.6 95.2 93.6 105.4 118.8 128.5 139.4

39.2 36.9

18.618.0 16.3 20.7 34.8 43.1 50.1 62.8

231.1262.9

257.0 302.1262.2 276.6

322.4377.4

416.8461.0

0

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 Q2 2010

GEL mln

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

410.4 363.3 349.9 326.5382.3

322.9400.4 370.0

435.5 475.2

53.639.2 26.8 90.2

69.379.2

74.278.1

75.171.7

188.7 279.0

199.5186.6 153.6

116.3

112.0 139.4

145.6136.6

0

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 Q2 2010

GEL mln

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

Page 35August 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

2.22.4

2.7

3.03.2

3.33.5

3.13.0

2.8 2.8 2.7 2.8 2.8

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 31-Mar-10 30-Jun-100.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Number of clients (LHS) Number of products (LHS) Product/Client Ratio (RHS)

1.1% 1.1% 1.1% 1.1% 1.2%

9.2% 7.6% 7.6% 7.9%

2.2% 2.1% 1.9% 1.5% 0.8% 0.6% 0.6% 0.7%

35.8%39.3%

44.3%46.4% 47.9% 47.6%

44.5% 44.8%46.8%

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 Jun-10

Mortgage Loan Penetration Rate Consumer Loan Penetration RateMicro Loan Penetration rate Other Loans Penetration Rate

95.6% 98.7%104.0%

75.4% 73.2%67.6% 66.1% 66.18% 65.7%

23.6% 26.9%31.4%

24.8%20.6% 17.5% 15.0%

10.56% 11.38% 11.3%

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 Jun-10Debit Cards Penetration Rate Credit Cards Penetration Rate

111.2% 111.3% 112.8%

122.4% 121.7% 119.40%

9.7%9.2%7.6%7.1%8.9%7.3%6.7%5.6%

10.79%10.3%

110.8%111.1%114.3%105.0%

14.4%14.7%15.7%16.4%

19.0%19.5%19.8%20.0%14.3% 14.38%

0%

20%

40%

60%

80%

100%

120%

140%

Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10Demand & Time deposits Penetrartion rateUniversal Current Accounts Penetration RateStandard Current Accounts Penetration Rate

Page 36August 2010

Card processing

Transaction authorizations by Georgian Card

Number of cards serviced by Georgian CardClient banks

Georgian Card’s revenue & assets

Standalone

• 56% ownership of Georgian Card

1,105

1,7762,151

2,954 2,914

4,224

5,027

6,584

7,176

8,536 8,6139,014

8,406

7,660 7,660 7,8397,449

7,982

0

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 Q2 10

'000s

121203

286337

437 460

649721 776 774

658 636582

539.0 541 525 496

66

72

84

119

138

247

227

256

278 304

256 261

227230 237 227

186

186

370

456

575

706

876 914 897

809769 778

753

275

681

0

200

400

600

800

1,000

1,200

1,400

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 Jun-10

'000s

Bank of Georgia Other Banks

1,0781,054

978

5.5 5.5 5.5 5.4

2.5 2.6

3.1 3.3

3.84.0 4.0 4.0

4.2

4.7 4.7

1.41.4

0.5

0.4

1.7

1.0 1.1

2.2

1.1

1.31.3

1.11.4 1.5

1.2

0

1

2

3

4

5

6

Dec-06

Mar-07

Jun-07 Sep-07 Dec-07

Mar-08


Mar-09


Mar-10

Jun-10

GEL mln

0

1

2

3

Total Assets (LHS) Revenue (RHS)

Page 37August 2010

Analysis of mortgage portfolio

Typical mortgage terms

Volume of mortgage loans outstandingNumber of mortgage loans issued & outstanding

Volume of mortgage loans issued

Standalone

Rate: 14.0% - 19.0%Tenor: Normally 10 yearsCurrency: US$LTV: Normally 70-90%

231 259 423 437 517817

7,4767,967 7,994 7,916 7,809 7,796

8,240 8,415

455 678 8581,129

1,4261,915

850 691

2,365

1,166

3,409

4,230

5,340

6,881

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Number of mortgage loans issued Number of mortgage loans outstanding

101.6128.7

157.7

203.5

245.5

312.0 325.9

386.7 383.1 373.7358.8 370.5

385.1406.1

0

50

100

150

200

250

300

350

400

450

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

33.8 37.643.3

69.5

81.3

96.1

32.5

18.510.1 11.5

23.1 23.427.0

46.7

0

20

40

60

80

100

120

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

Page 38August 2010

Management (WM) performance review

WM loans, 30 June 2010

WM products penetrationWM 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) Q1 2010 (1.75) Q2 2010 (1.84)

(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

127.8108.8

87.869.3

59.060.955.4

73.366.8

64.866.463.4

48.348.2

6.7

117.5

1,341

1,4541,429

1,364

1,358

1,3411,3871,384

1,3821,304

1,2911,187

1,081943

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

Q2'10

US$ mln

0

200

400

600

800

1,000

1,200

1,400

1,600

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

Car Loans, 4.7%

Mortgage Loans, 76.6%

Consumer Loans, 12.7%

Credit Cards & Overdrafts, 6.1%

101.0%93.7% 96.2%

79.2%

21.2%25.5% 27.8%

62.7%60.5%

71.4%

54.0%55.3%

65.8%66.8%66.9%52.2%

65.8%64.0%

93.4%

111.2%114.2%

130.2%135.0%

66.9%

32.8%31.8%32.2%40.1% 40.8%

45.5%49.4%52.5%

57.1%62.5%

65.2%69.6%70.2%

76.4%78.2%80.7%

27.5%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 Q2 2010

OneCard Penetration Rate All Other Cards Penetration RateDemand & T erm Deposits Penetration Rate Internet Banking Penetration RateSMS Banking Penet ration Rate

49.531.5 35.7 35.1 38.4 47.9 52.1 57.2 62.9

32.139.0

61.0 58.269.4

83.6111.0

123.4149.4

0

50

100

150

200

250

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

GEL mln

Current Accounts & Demand Deposits Time Deposits

212

7182

181163

131

1089397

August 2010

BG Bank (Ukraine) standalone results overview

Page 40August 2010

BG Bank performance

Net income

Recurring operating cost structure, Q2 2010Revenue growth

Cost/Income Ratio

4.0 4.2

2.0

(1.6)

(2)

(1)

-

1

2

3

4

5

6

7

Q1 2010 Q2 2010

GEL mln

Recurring Operating Costs Provision Expense

4.85.5

6.4

3.82.9

4.3 4.0 4.22.7

3.6

1.7 0.8

2.61.2

1.3

(0.5)

0.3

0.5

2.75.5

10.4% 10.4%

12.6%

8.3%

9.7%

7.2%7.5%

8.3%

6.1%

11.3%

-2

0

2

4

6

8

10

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

GEL mln

0%

2%

4%

6%

8%

10%

12%

14%

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

9.2

6.36.5

9.3

5.55.6 5.3

3.8

3.14.1

(7.3)

(10.8)

(5.5)

(11.3)

0.3

(0.7)

0.7 0.7

(10.7)

(1.7)

(12)

(10)

(8)

(6)

(4)

(2)

0

2

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

109.2%116.9%

100.1%91.5%

74.7%

140.5%

76.0%

35.7%

230.0%

106.5%

0%

50%

100%

150%

200%

250%

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

Page 41August 2010

BG Bank assets as at 30 June 2010Asset growth

Gross loan book growth

No international loan

11.210.12.8Tax Assets, Current And Deferred

GEL million Q2 2009 Q1 2010 Q2 2010Available-For-Sale Securities 5.9 6.4 7.4Investments In Other Business Entities, Net 0.0 12.2 15.6Intangible Assets Owned, Net 0.6 0.9 0.9

Prepayments And Other Assets 2.1 0.9 0.5Other assets 11.4 30.6 35.6

35.630.6

11.4

9.811.5

14.0

143.4

131.9151.3

11.5

5.77.0

14.9

11.1

21.7

0

50

100

150

200

250

Q2 2010Q1 2010Q2 2009

Cash & Equivalents

Loans & Advances To Credit Institutions

Loan Portfolio


Other Assets

11% of Total Assets

3% of Total Assets

74% of Total Assets

7% of Total Assets

6% of Total Assets

3% of Total Assets

69% of Total Assets

6% of Total Assets

16% of Total Assets

205

GEL mln

6% of Total Assets

215

191

7% of Total Assets

17% of Total Assets

5% of Total Assets

67% of Total Assets

5% of Total Assets

357 360 350 337249 245 205 202 198 191 215

849923

1,217 1,213 1,150 1,129

965946

1,149

1,131

934

0.3

0.2 0.20.3 0.3

0.3

0.2 0.2 0.20.2 0.2

0

200

400

600

800

1000

1200

1400

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

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 257194 199 190 186 177 184 201

862

917896925862 871

729

876 889836 819

0.3

0.2

0.20.2

0.3

0.30.3

0.20.2

0.20.2

0

100

200300

400

500

600

700

800

900

1000

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

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 42August 2010

BG Bank loan portfolio

Retail loan portfolio breakdown, 30 June 2010

Corporate loan portfolio breakdown, 30 June 2010 Loan portfolio breakdown, 30 June 2010

Gross loans: GEL 201 million Gross corporate loans: GEL 164 million

Total retail loans: GEL 37 million

CB, 82%

RB & WM, 18%

Micro loans, 2.6%

Credit cards, 0.3%Other loans, 1.1%

Mortgage loans, 55.4%

Consumer and other*, 40.7%

Other, 8% SME, 8%


Construction & Real Estate, 13% Trade, 53%

Page 43August 2010

BG Bank analysis of the loan book

Loans by maturity, 30 June 2010

Top ten borrower concentrationLoans by currency, 30 June 2010

Loan book collateralization

UAH, 49.2%

Foreign currency,

50.8%

33.4%

15.6%

22.0%

29.0%

0%

5%

10%

15%

20%

25%

30%

35%

40%

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% 38.0%

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 Q2 2010

89.9%

91.5%90.9%

92.1%93.0%

95.8%96.6%

97.5%

96.2%

98.9%

84%

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 Q2 2010

Page 44August 2010

BG Bank provisioning policy

NPL coverage ratio

Loan loss reserveNPLs

Reserve for loan losses to gross loans

7.3 5.7 6.3 5.912.2 12.8 12.9 14.5 14.7 15.3

8.5

19.4

26.2

37.3 36.8 37.4

42.3

0.60.2 0.2

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

GEL mln

RB CB

2.6 2.9 2.7 2.6

8.75.6

17.6

11.5 12.2

17.5

4.0

7.2

22.1

6.314.2

16.6

24.4

0.1 0.7 1.01.7%

1.3%1.5%

4.6%

8.0%

14.6%

12.8%14.0%

15.1%

20.9%

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 Q2 2010

GEL m ln

0%

5%

10%

15%

20%

25%

RB CB NPL ratio

167.0%

319.4%

210.0%225.3%

140.9%

198.8%

168.2%

166.4% 204.3%

137.3%

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 Q2 2010

2.8% 2.2% 2.5%

10.5%

15.9%

20.5%

26.9%

31.6%30.8%

28.7%

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 Q2 2010

Page 45August 2010

BG Bank standalone liabilities breakdownLeverage ratio

Q2 2009 Q1 2010 Q2 2010Issued Fixed Income Securities 0.2 0.0 0.0Accruals And Other Liabilities 2.5 1.4 1.2Other liabilities 2.7 1.4 1.2

38.934.639.3

142.0

122.3114.8

1.2

2.7

33.2

32.548.6

1.4

0

50

100

150

200

250

Q2 2010Q1 2010Q2 2009

GEL mln

Total Shareholders Equity

Other Liabilites

Client Deposits














157182

158

4.3

2.3 2.1

2.9 3.0 3.2

3.9

5.44.9

5.5

0

1

2

3

4

5

6

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Page 46August 2010

BG Bank client deposits

Client deposits

Deposit yieldsClient deposits, by currencies

Deposits by maturity, Q2 2010

270216

180 171127 121 115 117 139 122 142.0

656

554609

559528558588614592

730856

0.220.23

0.210.210.220.220.22

0.280.30

0.300.32

0

100

200

300

400

500

600

700

800

900

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

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

85.460.5 61.5

45.7 47.0 37.7 43.258.8

40.1 44.3

130.6

81.7 74.177.1 73.9 82.2

119.7 109.197.680.0

0

50

100

150

200

250

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

GEL mln

CB Client Deposits RB & WM Client Deposits

-29%

-8%

-9%

+2%

-25%

-26%

-9%

+3%

+4%

-20%

-4%

+15%+36%

+8% +3%

-32%

+10%

+19%

12.0%

10.9%

12.3%

13.1%

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 Q2 2010

33.4%

27.7%

12.0%

20.4%

6.5%

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 47August 2010

BG Bank analysis of depositsClient deposits by currency, Q2 2010Client deposits breakdown, Q2 2010

Client deposits: GEL 142 mln

Current accounts, 32%

Time&Demand deposits, 68%

UAH, 51%Foreign

currency, 49%

Page 48August 2010

BG Bank capital adequacy

Risk-weighted assets BIS vs. NBU

NBU capital adequacy ratiosBIS capital adequacy ratios

Net loans/deposits & Loans/(deposits+equity)

19.0%

30.6%

18.1%19.5%

17.3%

32.8%

21.1% 22.0%

18.6%

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 Q2 2010Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

244.1230.4

271.77

196.18

236.7

158.6 158.1177.9

282.1305.2

327.7355.0361.6

176.4178.2190.4

255.4

327.0

340.6352.9

0

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 Q2 2010

GEL mln

NBU BIS

77.7% 73.7% 74.6%68.1% 64.3%

69.7% 67.0%

85.9%76.6%

84.1%79.3%

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 Q2 2010

Net Loans/(Total Deposits + Equity) Net Loans/Total Deposits

244.1230.4

271.77

196.18

236.7

158.6 158.1177.9

282.1305.2

327.7

355.0361.6

176.4178.2190.4

255.4

327.0

340.6352.9

0

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 Q2 2010

GEL mln

NBU BIS

August 2010

Belarusky Narodny Bank (Belarus)

Page 50August 2010

BNB Bank performance

Net income

Recurring operating cost structure, Q2 2010Revenue growth

Cost/Income Ratio

1.52.0

-0.03

0.2

-1

0

1

2

3

4

Q2 2009 Q2 2010

GEL mln

Recurring Operating Costs Provision Expense

1.1 1.0 1.01.4 1.6

2.3 2.3

0.6 0.6

0.70.8

1.40.8

0.6

14.9%14.1%16.6%

12.7%

10.9%10.9%10.8%

0

1

2

3

4

5

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

GEL mln

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

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

1.7

2.4

1.92.1 2.2

2.9 3.0

(0.9)

0.5 0.60.6

0.2

0.7

(0.3)

(1.0)

(0.8)

(0.6)

(0.4)

(0.2)

0.0

0.2

0.4

0.6

0.8

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

GEL m ln

80.4%

61.5%

90.7%

60.6%67.9%

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 Q2 2010

Page 51August 2010

BNB loan portfolio as at 30 June 2010

RB Loan Portfolio Breakdown, 30 June 2010

Loan loss reserve, 30 June 2010Loan Portfolio Breakdown, 30 June 2010

CB Loan Portfolio Breakdown, 30 June 2010Gross loans: GEL 41.1 mln

RB loans: GEL 1.9 mln* Other loans include car, POS and legacy retail loans

Loan loss reserve: GEL 1.3 mln

CB loans: GEL 39.1 mln

CB, 95%

RB, 5%

CB, 1.21

RB, 0.13

Other loans, 1%

Consumer and other*, 98%

Mortgage loans, 1%

Other, 2%Industry & trade, 13%

Retail trade, 71%

Construction & real estate, 13%

Page 52August 2010

BNB client deposits as at 30 June 2010Client deposits breakdownClient deposits breakdown

4,519

11,188

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Jan-00

GEL '000

RB Deposits Outstanding CB Deposits Outstanding

Current Accounts Outstanding ,

64.7%

Time Deposits Outstanding ,

35.2%

Demand Deposits

Outstanding , 0.1%

August 2010

BG Capital

Page 54August 2010

BG Capital

Proprietary book

Net income/(loss)Revenue

20 22 22 18 15 16 13 13 15 15

27

2225 30

27

14 15

38 43 34

5865

56

4539 43

44 41

30 31

0

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

GEL mln

BG Capital Georgia BG Capital Ukraine

1.6

(1.9)

(2.8)

0.9 1.1 1.1

2.9

1.1

(1.0) (0.5)

(4)

(3)

(2)

(1)

0

1

2

3

4

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

GEL mln

(2.6)(2.3)

(4.6)

(1.6)

0.2

(1.7) (1.6)

0.8

-1.0

(5)

(4)

(3)

(2)

(1)

0

1

2

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

GEL mln

Headcount

19,276

36,968

3,9122,516

1,3642,790

5,289 5,292 5,334

1,693

-

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

GEL m ln

Page 55August 2010

Contact

Irakli GilauriChief Executive Officer+995 32 444 [email protected]

Macca EkizashviliHead of Investor Relations+995 32 444 [email protected]

Giorgi ChiladzeDeputy CEO, Finance+995 32 444 [email protected]

mailto:[email protected]



August 2010

Appendices

August 2010

Bank of Georgia shareholder structure & management

Page 58August 2010

Ownership structure

Supervisory board

Ownership structure, 30 June 2009

Management board

Broadly owned by over 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

Neil Janin Chairman of the Supervisory Board

David Morrison Vice Chairman of the Supervisory Board, independent member

Ian Hague Member, Firebird Management LLC

Jyrki Talvitie Member, East Capital

Kaha Kiknavelidze Independent member

Allan J. Hirst Independent member

Al Breach Independent member

GDR Holders*, 87.3%

Management & Employees**,

3.3%Local Shares

Held by Institutional

Shareholders, 5.6%

Local Shares Held by

Domestic and Foreign Retail Shareholders ,

3.8%

Name Number %GDR Holders* 27,332,559 87.3%Local Shares Held by Institutional Shareholders 1,751,343 5.6%Management & Employees** 1,047,488 3.3%Local Shares Held by Domestic and Foreign Retail Shareholders 1,193,076 3.8%Total Shares Outstanding 31,324,466 100.0%

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

Page 59August 2010

Analyst coverage

Analyst Email

Andrzej Nowaczek [email protected]

Analyst Email

David Nangle [email protected]

Analyst Email

Mikhail Shlemov [email protected]

Analyst Email

Pedro Fonseca [email protected]





August 2010

Georgian banking sector – key trends 2006- Q2 2010

Page 61August 2010

Georgian banking sector – key trends 2008/June 2010GEL/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

Q2 2010= 1.84

GrowthMarket Share Market Share Market Share

Q2 2010(YE 2008) (YE 2009)

GEL mln YE 2008 YE 2009 Q2 2010As % of GDP*

2008 Y-O-Y

2009 Y-O-Y

Q2 2010 YTD

Top 5 Banks

Bank of Georgia

Top 5 Banks

Bank of Georgia

Top 5 Banks

Bank of Georgia

Total Assets 8,866 8,293 9,215 51.34% 23.00% -6.5% 11.1% 79.26% 32.89% 78.1% 33.0% 78.6% 35.1%Gross Loans 5,993 5,185 5,735 31.95% 30.59% -13.5% 10.6% 81.78% 32.87% 81.4% 31.8% 81.9% 33.0%Deposits 3,845 4,174 4,692 26.14% 9.51% 8.6% 12.4% 75.00% 28.76% 77.70% 27.4% 81.0% 29.9%Equity 1,517 1,517 1,576 8.78% 3.14% 0.0% 3.9% 75.69% 40.03% 79.60% 38.6% 78.5% 39.6%Net Income/(Loss) (216) (65.3) 37.3 0.2% NMF NMF NMF NMF NMF NMF 37.3% NMF NMF

* As % of YE 2009 GDP

Ensuring solvency and stability of the banksHigh BIS Capital Adequacy Ratio: Banking Sector Average – 21%, Bank of Georgia – 32%High level of liquidity requirements from NBG at 20% of Liabilities, Bank of Georgia 38.7%Low Leverage in the banking sector: Banking Sector Average – 4.2x, Bank of Georgia – 3.0x

Resilient Banking SectorDemonstrated strong resilience towards domestic challenges during the August 2008 conflict as well as towards external shocks of global financial turmoil without single bank going bankruptNo nationalization of the banks have occurred, no government bail-out plans have been required, no Government ownership since 1995Excess liquidity and excess capital that has been accumulated by the banking sector to enable boosting the financing of the economic growthVery 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 Q2’10 at c. 7.4%)

Bank debt to GDP

24.3

30.0

33.1

45.7

47

47.3

49.5

67.9

76

76.9

90.4

114.6

186.0

0 50 100 150 200

Azerbaijan

Georgia

Turkey

Bulgaria

Russia

Poland

Belarus

Kuwait

Bahrain

Ukraine

UAE

USA*

EU*

Page 62August 2010

35%

24%

8% 7%5%

7%

14%

33%

22%

8%

10%7%

5%

16%

33%

21%

9% 10%

6%5%

17%

35%

21%

9% 8%

5% 5%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

BoG TBC ProCredit Bank Bank Republic Cartu VTB Other Banks

YE 2007

YE 2008

YE 2009Jun-10

Peer group’s market share in total assetsGEL/US$

Period End YE 2006 = 1.71

YE 2007=1.59

YE 2008=1.67

Q1 2009= 1.67

Q2 2009=1.66

Q3 2009=1.68

YE 2009= 1.69

Q1 2010= 1.75

Q2 2010= 1.84

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

http://www.nbg.gov.ge

Page 63August 2010

11%

8%8%7%8%

26%

33%

12%

6%6%

10%9%

24%

33%

13%

6%

8%

10%10%

22%

32%

13%

5%

8%9%

10%

23%

33%

0%

5%

10%

15%

20%

25%

30%

35%

BoG TBC ProCredit Bank Republic Cartu VTB Other Banks

YE 2007

YE 2008

YE 2009Jun-10

Peer group’s market share in gross loansGEL/US$


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

Q2 2010= 1.84



Page 64August 2010

31%

25%

8%9% 9%

2%

16%

29%

23%

8%9%

6% 7%

19%

27%

24%

9%

11%

6%

3%

20%

30%

25%

9% 9%

5%

2%

20%

0%

5%

10%

15%

20%

25%

30%

35%

BoG TBC ProCredit Bank Republic VTB Cartu Other Banks

YE 2007

YE 2008

YE 2009Jun-10

Peer group’s market share in depositsGEL/US$


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

Q2 2010= 1.84



Page 65August 2010Page 65

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, obligors 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

Documents

Q2 results presentationbgeo.com/uploads/presentations/1156.pdfJSC Bank of Georgia Q2 and 1H 2010 results overview. August 2010 Page 4 Q2 and 1H 2010 P&L results highlights Millions