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November 2010

GROWTH AT THE RIGHT PRICELSE: BGEO / GSE:GEB

JSC Bank of Georgia Q3 2010 & YTD 2010 results overview

November 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 five independent directors

The leading universal bank in Georgia

Leading corporate bank with approximately 90,500 legal entities and over 171,000 current accountsLeading insurance, card-processing, leasing, trade finance, wealth management and asset management services providerThe only Georgian entity with credit ratings from all three global rating agencies

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

Listed on the London Stock Exchange (GDRs) and Georgian Stock ExchangeMarket Cap (LSE) US$ 546 mln as of 8 November 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 (34%), (1) gross loans (34%), (1) client deposits (30%) (1) and equity (39%) (1)

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

380387388ATMs

140137137Branches

569,000+551,000+565,000+Cards Outstanding

895,000+953,000+986,000+Retail Accounts

200920102010

SeptemberJuneSeptember

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

November 2010

JSC Bank of Georgia Q3 2010 and YTD 2010 results overview

November 2010

Q3 and 9 months 2010 P&L results highlights

NMF0.05 0.08 6.3%0.31 0.56 0.33 0.60 EPS (diluted) NMF0.05 0.08 6.3%0.34 0.63 0.37 0.66 EPS (basic)

Q3 2009Millions unless otherwise noted Q3 2010 Q2 20103 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 56.5 31.3 51.7 28.0 9.4% 48.9 29.2 15.5%Net Non-Interest Income 34.7 19.2 30.9 16.7 12.3% 30.4 18.1 14.1%Total Operating Income (Revenue)4 91.2 50.5 82.5 44.8 10.5% 79.3 47.3 15.0%Recurring Operating Costs 51.0 28.2 47.8 25.9 6.7% 45.0 26.8 13.5%Normalized Net Operating Income5 40.1 22.2 34.7 18.8 15.6% 34.3 20.5 16.9%Net Non-Recurring Income (Costs) (1.6) (0.9) 1.5 0.8 NMF (1.9) (1.1) -13.6%Profit Before Provisions 38.5 21.3 36.2 19.6 6.2% 32.4 19.3 18.7%Net Provision Expense 14.2 7.9 12.6 6.8 12.8% 30.0 17.9 -52.6%Net Income/ (Loss) 20.8 11.5 19.6 10.6 6.3% 2.6 1.6 NMF

1 Compared to Q2 2010, growth calculations based on GEL values.2 Compared to the same period in 2009; growth calculations based on GEL values.3 Q2 2010 and 6 months 2010 Consolidated numbers have been Reviewed 4 Revenue includes Net Interest Income and Net Non-Interest Income.5 Normalized for Net Non-Recurring Costs.

NMF0.06 0.10 0.91 1.64 EPS (diluted) NMF0.06 0.11 1.01 1.83 EPS (basic)

9 months 2009Millions unless otherwise noted 9 months 2010 Growth 2

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

Net Interest Income 153.4 84.9 150.8 89.9 1.7%Net Non-Interest Income 96.2 53.3 90.8 54.1 5.9%Total Operating Income (Revenue)4 249.6 138.2 241.6 144.1 3.3%Recurring Operating Costs 145.1 80.3 135.9 81.1 6.7%Normalized Net Operating Income5 104.5 57.9 105.7 63.0 -1.1%Net Non-Recurring Income (Costs) (3.4) (1.9) (2.4) (1.4) 40.9%Profit Before Provisions 101.1 56.0 103.2 61.6 -2.1%Net Provision Expense 34.2 18.9 102.8 61.3 -66.8%Net Income/ (Loss) 57.2 31.7 3.4 2.0 NMF

November 2010

30 September 2010 Balance Sheet results highlights

14.5%15.7%Total Capital Adequacy Ratio (NBG)

15.8%15.2%Tier I Capital Adequacy Ratio (NBG)

32.7%32.6%Total Capital Adequacy Ratio (BIS)

20.3%19.9%Tier I Capital Adequacy Ratio (BIS)

13.69 22.96 11.25 20.74 12.01 21.69 Book Value Per Share, GEL & US$

428.4 718.5 352.3 649.8 376.2 679.6 Shareholders’ Equity

1,348.5 2,261.6 1,504.1 2,773.8 1,625.4 2,936.0 Total Liabilities

547.7 918.6 512.7 945.6 488.0 881.5 Borrowed Funds

705.1 1,182.5 806.4 1,487.2 918.1 1,658.5 Client Deposits

1,777.0 2,980.2 1,856.4 3,423.6 2,001.5 3,615.6 Total Assets

989.4 1,659.3 1,075.0 1,982.5 1,141.1 2,061.4 Net Loans

(Unaudited)(Unaudited)(Unaudited)

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

Q3 2009Q2 2010Q3 2010Millions, unless otherwise noted

-5.5%13.5%4.6%Book Value Per Share,

-5.4%13.6%4.6%Shareholders’ Equity

29.8%26.8%5.8%Total Liabilities

-4.0%-3.5%-6.8%Borrowed Funds

40.3%30.3%11.5%Client Deposits

21.3%24.1%5.6%Total Assets

24.2%22.8%4.0%Net Loans

Y-O-YYTDQ-O-Q

ChangeChangeChange

November 2010

Composition of revenue in Q3 and 9 months 2010Revenue by segments, Q3 2010Composition of Revenue, Q3 2010

Consolidated

Total Revenue: GEL 91.2 million in Q3 2010 and GEL 249.6 in 9 months 2010

Composition of Revenue, 9 months 2010 Revenue by segments, 9 months 2010

Net interest income 62.0%,GEL 56.5 mln

(+9.4% q-o-q)

Net income from documentary

operations 2.7%,GEL 2.5 mln

(+13.8% q-o-q)

Net foreign currency related

income 8.8%,GEL 8.0 mln

(-9.2% q-o-q)Net fee and commision

income15.1%,GEL 13.7 mln

(+26.5% q-o-q)

Net other non-interest income

11.5%,GEL 10.5 mln

(+15.9% q-o-q)

Net othe r n on -in te re st i ncom e

12.1%,GEL 30.3 mln

(+10.6% y-o-y)

Ne t fee an d comm i sion

i ncom e14.0%,GEL 34.9 mln(+0.4% y-o-y)

Ne t fore ign curre ncy re late d

i ncom e 9.7%,GEL 24.2 mln(+8.5% y-o-y)

Ne t i ncom e from docum e ntary

operati on s 2.7%,GEL 6.8 mln

(+7.0% y-o-y)

Ne t i nte re st in com e 61.5%,GEL 153.4 mln (1.7% y-o-y)

O ther6.5%,

GEL5.9 mln

Aldagi BCI 4.5%,

GEL4.1 mln(-31.2% q-o-q)

BNB 3.5%,

GEL3.2 mln(+6.3% q-o-q)

BG Bank 3.3%,

GEL3.0 mln(-30.1% q-o-q)

BoG Standalone

82.2%,GEL74.9 mln

(+8.4% q-o-q)

BoG Standalone

81.5%,GEL203.4 mln(+6.8% y-o-y)

BG Bank 4.2%,

GEL10.4 mln(-36.3% y-o-y)

BNB 3.6%,

GEL9.0 mln(+44.9% y-o-y)

Aldagi BCI 5.9%,

GEL14.6 mln(-6.5% y-o-y)

O ther4.8%,

GEL12.1 mln(-6.8% y-o-y )

November 2010

Analysis of revenue

Net fee & commission income & Income from documentary operations

Net foreign currency related incomeRevenue growth

Other non-interest income

Consolidated

33.542.8

49.8 55.8 58.9 56.4 52.4 49.5 48.9 46.0 45.3 51.7 56.5

22.7

25.3

31.330.3 27.1 30.2

29.3 31.1 30.4 31.3 30.630.9

34.7

0

10

20

30

40

50

60

70

80

90

100

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

GEL mln

Net Interest Income Net Non-Int erest Income

82.581.786.685.986.1

81.1

68.156.2

91.2

77.4 75.980.6 79.3

6.9 7.610.2 10.2

12.910.9 11.1 11.6 12.0 12.6

10.3 10.913.7

1.81.9

1.4 1.9

1.7

1.41.8

2.3 2.3

2.2 2.2

2.5

2.2

0

2

4

6

8

10

12

14

16

18

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL m ln

Net Fee & Commission Income Net Income From Documentary Operations

8.8

6.55.7

7.3

8.88.0

6.2

10.1

13.2

10.49.4

14.9

7.1

0

2

4

6

8

10

12

14

16

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

1.7 2.5 3.2 3.05.1 4.9

3.7 4.2 4.25.4

0.4 0.3

1.3

1.9 0.21.8

0.3

-0.4 -1.1 -0.5

4.7

1.4

1.03.6

3.7 3.0 4.4 4.4

4.6

4.0

1.6

1.3 1.6

1.9 0.5

0.10.20.6

0.10.2

0.2

0.1

0.1

0.2

2.0

-0.4

0.2

-3.4

0.6

0.30.5

0.0

3.3

-6

-4

-2

0

2

4

6

8

10

12

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

GEL mln

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

6.5

9.510.7

7.17.8

5.0

7.89.0

10.810.7 10.5

November 2010

Analysis of recurring operating costsRecurring operating cost structure by segments,

Q3 2010Recurring operating cost structure, Q3 2010

Consolidated

Total recurring operating costs: GEL 51.0 million in Q3 2010 (up 6.7% q-o-q), and GEL 145.1 million in 9 months 2010 (up 6.7% y-o-y)

Recurring operating cost structure, 9 months 2010 Recurring operating cost structure by segments, 9 months 2010

Other operating costs 5.5%

GEL 2.8 mln(-10.4% q-o-q)

Procurment & operations support

costs 7.5%,GEL 3.8 mln

(+16.1% q-o-q)

Depreciation & amortization 13.6%,

GEL 6.9 mln(+6.2% q-o-q )

S elling, general & administrative costs

20.5%,GEL 10.5 mln

(+17.9% q-o-q)

Personnel costs 52.9%,

GEL 27.0 mln(+3.9% q-o-q)

Personnel costs 52.6%,

GEL 76.3 mln(+13.0% y-o-y)Selling, general &

administrative costs 20.1%,

GEL 29.2 mln(-9.4% y-o-y)

Depreciation & amortization 13.9%,

GEL 20.1 mln(+11.4% y-o-y )

Procurment & operations support

costs 7.3%,GEL 10.7 mln(+8.7% y-o-y)

Other operating costs 6.1%

GEL 8.8 mln(+5.4% y-o-y)

Other, 15.7%GEL 8.0 mln

Aldagi BCI, 4.6%

GEL 2.4 mln(-48.6% q-o- q)

BNB, 4.9%GEL 2.5 mln

(+25.3% q-o-q )

BG Bank, 6.4%GEL 3.3 mln

(-32.9% q-o-q)

BoG standalone,

68.4%GEL 34.9 mln(+7.4% q-o-q)

BoG standalone,

67.6%GEL 98.1 mln

(+10.8% y-o-y)

BG Bank, 8.3%GEL 12.1 mln(-14.6% y-o-y)

BNB, 4.3%GEL 6.3 mln

(+42.0% y-o-y )

Aldagi BCI, 7.2%

GEL 10.4 mln(-1.0% y-o-y )

O ther, 12.5%GEL 18.2 mln(-0.5% y-o-y)

November 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

23.222.3 22.5

23.4

25.927.0

28.4

0

5

10

15

20

25

30

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

55.5%

54.9%

90.0%

198.3%

65.3%

59.1%60.8%52.9%57.8%

56.1%

44.4%

57.8%

42.2%50.8%

44.0%

60.7% 58.0%50.5%50.0%

41.0%

45.1%56.6%49.6%

53.9% 49.6% 49.0%

140.5%

91.5%100.1%

35.7%

116.9%

74.7%76.0%

230.0%

106.2%105.1%

0.0%

59.1% 55.6%64.5% 62.8% 80.4%

84.6%

90.7%

66.6%60.6%

69.0%67.8%

61.5%

0%

40%

80%

120%

160%

200%

240%

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

Cost/Income Ratio, ConsolidatedCost Income Ratio, Bank of Georgia StandaloneCost/Income Ratio, BG BankCost/Income Ratio, BNB

5,313

3,056

3,619

3,853

2,741

2,692

2,665

2,669

2,674

2,825

2,963

3,060

824

836

842

786

757

707

617

621

593

468

454

5,118

5,048

4,781

4,798

4,914

4,964

4,949

6,196

5,911

4,926

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

Q1 2008

Q2 2008

Q3 2008

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Group Consolidated BoG Standalone BG Bank

30.8 29.6

40.136.832.4

26.434.336.6 37.3 36.3 38.7 37.1 34.3 34.734.0

45.140.5

33.7

8.7

(76.1)

36.2 38.5

-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 Q3 2010

GEL mln

Norm alised Net Opeart ing Income P rofit /(Loss) Before P rovisions

November 2010

Composition of assets as at 30 September2010Consolidated

22.7 23.4 19.7 12.2 Intangible Assets Owned Net

GEL million 30-September-09 31-December-09 30-June-10 30-September-10Other Fixed Income Instruments 67.2 - - -Insurance Related Assets 45.6 26.7 34.4 33.6 Investments In Other Business Entities & Investment Property 75.5 89.2 104.8 119.3

Goodwill 135.7 65.8 69.2 69.2 Tax Assets, Current And Deferred 12.9 23.5 24.9 26.0 Prepayments And Other Assets 56.6 36.6 58.9 64.7 Other Assets 405.7 261.4 315.6 335.5 Note: Net loans include Net finance lease receivables

335.5315.6261.4405.7

293.0280.4299.9

2,061.41,982.5

1,678.21,659.3

480.2381.1

265.5

383.0

136.1

147.7

157.0

165.6

310.6

303.7

270.966.6

291.9

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2010Q2 2010YE 2009Q3 2009

Government Treasuries &Equivalents

Cash & Equivalents

Cash with other Banks

Net Loans

Property & Equipment

Other Assets

GEL m ln

4.3%of total assets

57.9% of total assets



11.1% of total assets5.4% of total assets










2,913

3,424

2,980

3,616






2.2% of total assets 9.3% of total assets



November 2010

Composition of gross loan book as at 30 September 2010Consolidated

Georgia: RB & WM, CB

Ukraine: BG Bank

Belarus: BNB

Numbers do not include CC/Eliminations

Gross loan book Q3 2010: GEL 2,247.3 million

21.4%

RB & WM, 1,022

BG Bank, 255

BG Bank, 265

BG Bank, 194

BG Bank, 199

BG Bank, 190 BG Bank, 184

BG Bank, 208 BG Bank, 192

BNB, -

BNB, - BNB, 35

BNB, 36

BNB, 26 BNB, 25

BNB, 33

BNB, 42 BNB, 52

CB, 999 CB, 981 CB, 869 CB, 811 CB, 770 CB, 806 CB, 796 CB, 821 CB, 866 CB, 968 CB, 881

RB & WM, 966 RB & WM, 887 RB & WM, 910 RB & WM, 887 RB & WM, 854

RB & WM, 983 RB & WM, 1,055 RB & WM, 976 RB & WM, 965 RB & WM, 790

BG Bank, 186

BG Bank, 257

BG Bank, 177

BNB, 27

BNB, 30

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 Q3 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

42% of gross loans

49% of gross loans

44% of gross loans

46% of gross loans

44% of gross loans

45% of gross loans

45% of gross loans

44% of gross loans

44% of gross loans

45% of gross loans

November 2010

Liabilities breakdown as at 30 September 2010Consolidated

30-September-09 31-December-09 30-June-10 30-September-10Issued Fixed Income Securities 0.7 0.7 3.7 3.6 Insurance Related Liabilities 52.2 34.2 44.4 44.0 Tax Liabilities, Current And Deferred 22.8 25.2 31.8 35.4 Accruals And Other Liabilities 41.4 46.6 42.8 54.0 Other liabilities 117.1 106.8 122.7 137.0

Total liabilities 30 September 2010: GEL 2,936.0 million

259.0218.422.543.4

1,658.51,487.2

1,272.51,182.5

881.5945.6

913.3918.6

137.0122.7

106.8117.1

679.6649.8

598.4718.5

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2010Q2 2010YE 2009Q3 2009

GEL mlnTotal equity

Other Liabilites

Borrowed Funds

Client Deposits

Deposits And Loans From Banks

21% of total liabilities + equity















3,616

3,424

2,9132,980






November 2010

Client deposits breakdownConsolidated

Client deposits Q3 2010: GEL 1,658.5 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 , 605 CB , 588 CB , 683

CB , 799

RB & WM, 713 BG Bank, 216

BG Bank, 180

BG Bank, 121

BG Bank, 115

BG Bank, 117

BG Bank, 139

BG Bank, 122

BG Bank, 142

BG Bank, 155

BNB , 16

BNB , 20

BNB , 16

BNB , 18

CB , 597 CB , 626 CB , 518 CB , 656

CB , 576 CB , 681 CB , 652

RB & WM, 660 RB & WM, 595 RB & WM, 539 RB & WM, 461 RB & WM, 391 RB & WM, 374 RB & WM, 419 RB & WM, 396 RB & WM, 534 RB & WM, 458

BG Bank, 127

BG Bank, 171

BNB , 12

BNB , 18

BNB , 25

BNB , 31 BNB , 27

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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

1,487



1,659



November 2010

Capital adequacy & wholesale funding

November 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

161.2% 164.1%

135.4%129.6%

120.7%116.2%

107.5%

88.6% 85.3% 84.2%79.4%

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 Q3 2010

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

25.2% 25.0%23.5% 22.4% 21.9%

20.3% 19.9%

25.0%

22.6%21.6%24.7%

36.4%35.6%34.3%

26.3%25.3%

25.8%25.8%

34.7%34.6%

32.7% 32.6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

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

15.8% 15.2%13.7%

16.3% 16.8% 15.9%14.5% 15.7%

14.2%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 Q3 2010 Q32010* Tier I Cap ital Adequacy Ratio Total Capital Adequacy Ratio

* Pro-forma according to new regulations

2,609 2,5922,455

2,626

2,9283,046

3,3023,041

2,720

3,1283,272

2,5932,734

2,516

2,9512,729

3,100

3,605

3,132

3,458

2,717 2,870

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

GEL mln

BIS NBG

November 2010

International borrowings

International borrowings repayment schedule

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

Selected international loans

International borrowings by currencies, 30 September 2010

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

Key LendersPrinciple Amount Outstanding as of

September 30, 2010

Maturity

Eurobonds US$ 149.0 million 2012Senior Term Loan from FMO US$ 8.0 million 2014Senior Term Loan from WorldBusiness Capital US$ 5.8 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$ 4.2 million 2017Subordinated loan from FMO and DEG (Call in 2013) US$ 30.0 million 2018Senior Loan from OPIC US$ 26.6 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$ 4.5 million NMF Other, EUR denominated EUR 0.3 million NMF Total US$ 488.5 million

9,29570,609

428,594

123,312

23,894 9,016 6,096 23,913

180,640

6,999

2.0%

12.2%

3.5%

5.1%

0.7%

0.2%0.2%0.3%

0.7%0.3%

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

GEL '000s

0%

2%

4%

6%

8%

10%

12%

14%

Principle Amounts Outs tanding as of September 30, 2010 (LHS) As % of September 30, 2010 Assets (RHS)

Euro, 0.1%

US$, 99.9%

Fixed Interest Rate, 82%

Floating Interest Rate, 18%

November 2010

Business overview

November 2010

Group structure

Commercial Banking

Georgia

Corporate Banking

Retail Banking

Wealth Management

BG Bank BNB BG

CapitalAldagi

BCI

JSC “Bank of Georgia”

Securities Insurance

November 2010

BoG standalone results overview

November 2010

45.350.1 52.2 51.1 50.4

45.5 44.5 44.8 42.648.3 52.5

21.321.0 19.2 18.5 16.3

16.8 17.0 17.516.8

20.822.5

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 Q3 2010

GEL mln

Net Interest Income Net Non-Interest Income

66.671.1 71.4 69.9

66.662.3 61.5 62.3

59.4

69.1

74.9

BoG standalone performance

Net income

Recurring operating cost structure, Q3 2010Revenue performance

Cost/Income Ratio

Standalone

8.4%

Personnel costs, 56.0%

GEL 19.5 mln(+13.4% q-o-q)

Sell ing, general & administrative

expenses, 16.6%GEL 5.8 m ln

(+2.7% q-o-q)

Procurement & operations support

expenses, 8.9%GEL 3.1 mln

(+18.8% q-o-q)

Depreciation & amortization,

16.2%GEL 5.6 mln

(+2.0% q-o-q)

O ther operating expenses, 2.3%

GEL 0.8 m ln(-44.7% q-o-q)

25.4 28.4 28.8

11.3

0.9

10.8 7.812.8

24.4 23.7

(58.0)-70

-60

-50

-40

-30

-20

-10

0

10

20

30

40

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q121010

Q22010

Q32010

GEL mln

60.7%

53.9%49.0%

45.1%

41.0%

50.0% 50.8%50.5%

44.0%

58.0%

49.6%

44.5%

44.7%

47.3%43.1% 43.2%

47.7%48.9%54.0% 51.8%

47.0% 46.5%

0%

10%

20%

30%

40%

50%

60%

70%

Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010Cost/income, Bank of Georgia s tandalone

Normalized Cost/Income, Bank of Gerorgia s tandalone

November 2010

Composition of assets as at 30 September 2010Standalone

GEL million Q3 09 YE 09 Q2 10 Q3 10

Investments In Other Business Entities, Net and Investment Property 304.4 334.1 395.5 409.9 Intangible Assets Owned, Net 6.5 14.3 18.2 17.7 Goodwill 23.2 22.8 22.7 22.7 Tax Assets, Current And Deferred - 6.6 6.6 6.6

Prepayments And Other Assets 36.8 25.8 32.4 34.2 Other assets 371 404 476 491

491476404371

231231226240

1,9261,8441,6061,528

463399

223386

112

134126

298268

249102

115

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2010Q2 2010YE 2009Q3 2009

GEL mln

Government Treasuries &Equivalents

Cash & Equivalents

Cash with other Banks

Net Loans


Other Assets

3% of total assets

12% of total assets

55% of total assets

7% of total assets

14% of total assets

3,522

2,753

5% of total assets

14% of total assets

56% of total assets

9% of total assets

13% of total assets

3,333

5% of total assets

8% of total assets

57% of total assets

8% of total assets

14% of total assets

2,842

14% of total assets

55% of total assets

13% of total assets

7% of total assets

3% of total assets

4% of total assets

9% of total assets

8% of total assets

8% of total assets

November 2010

Analysis of the loan bookStandalone

* Other loans include car, POS and legacy retail loans

1,038.9

41.1

980.6

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Q3 2010

GEL mln

CB

RB

WM

2,060.6

FMCG, 14%

Energy, 10%

Industry & State, 10%

Construction & Real Estate, 18%

Other, 16%Pharmaceuticals and Healthcare,

1%Trade, 30%

Credit cards and overdrafts, 14%

Micro loans, 19%

Mortgage loans, 40%

Consumer and other, 27%

November 2010

Analysis of the loan book

Loans by maturity, 30 September 2010

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

Loan book collateralization , 30 September 2010

Standalone

35.3%22.2%

28.7%

64.7%77.8%

71.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RB & WM CB Total

GEL Foreign Currency

4% 3%7%

19%

67%

0%

10%

20%

30%

40%

50%

60%

70%

Less than 1 month 1 to 3 months 3 to 6 months 6 to 12 months Over 1 year

86.8% 88.0%

0%

20%

40%

60%

80%

100%

Q3 2009 Q3 2010

9.7%

12.2%

16.3%

18.5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Q3 2009 Q3 2010

Top 10 Borrowers T op 20 Borrowers

November 2010

Provisioning

Reserve for loan losses to gross loans

NPL coverage ratioNPLs & write-offs, 30 September 2010

Impairment seasoning, Q3 2010

Standalone

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

1.78%2.90%

4.69%

2.31%

0.45%

1.85%

0%

1%

2%

3%

4%

5%

6%

7%

8%

CB RB & WM Total

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

4.1%4.6%

3.6%

1.3%2.1% 1.8%

1.0%

1.2%0.4%

0.06%0.17%

1.8% 2.60%1.08%

1.2%

1.3%

1.1%1.3%

356.7

485.9501.1

200.9

300.9

179.8

439.3

239.1

548.3

327.6

604.0

0%

1%

2%

3%

4%

5%

6%

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

208.4%

554.4%

96.7%110.4%152.6%

524.0%

117.6%166.8%

106.5%115.2% 100.7% 106.5%139.6%99.3%

116.1%169.1%

138.3%

118.8%124.1% 106.6% 113.5%141.4%

0%

100%

200%

300%

400%

500%

600%

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

BoG Standalone BoG Consolidated

9.2% 9.0%8.3%

7.5% 6.9% 6.5%

2.1% 2.1%

6.3%5.0%

6.3%

7.8%

9.1%

9.4%

1.9% 2.0%

6.8%

4.9%

5.5%

6.7%

7.5%7.4%

6.4%

1.6%2.6%

4.2%2.0%

1.7%

1.5%

19.8%

2.0%

6.1%

8.4%

6.7%

2.4%1.7%

22.8%

-1.0%

5.0%6.7%2.0%

4.3%2.8%

1.4%

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 Q3 2010-5%

0%

5%

10%

15%

20%

25%

Reserve for loan losses to Gross loans, BoG ConsolidatedReserve for loan losses to Gross loans, BoG StandaloneCost of risk, BoG Consolidated, annualisedCost of risk, BoG Standalone, annualised

November 2010

Provisioning cont’d – BoG standalone

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

NPLsLoan loss reserve

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

Standalone

Mortgage loans, 24.7%

GEL (17.9 mln)

Consumer and other, 14.5%

GEL (10.5 mln)Credit cards and

overdrafts, 54.7%

GEL (39.6 mln)

Micro loans, 6.0%

GEL (4.4 mln) Other, 18.6%GEL (11.6 mln)

Pharmaceuticals & Healthcare,

0.3%GEL (0.2 mln)

Industry & State 1.9%

GEL (1.2 mln)Construction &

Real Estate 24.3%

GEL (15.2 mln)Fast Moving

Consumer Goods, 9.0%

GEL (5.6 mln )

Energy, 7.0%GEL (4.3 mln)

Trade, 38.9%GEL (24.3 mln)

14.5 22.2 29.849.8 51.7

62.375.5 77.1 74.7 83.2

72.4

16.310.8

83.6 48.3

39.446.3 53.6

54.462.4

46.4

40.3

1.9% 2.0%

6.8%

5.5%

6.7%

7.4% 7.5%6.9%

6.5%

7.5%

4.9%

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 Q3 2010

GEL mln

0%

1%

2%

3%

4%

5%

6%

7%

8%

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

8.1 9.7 12.033.3

50.265.7

54.135.5

67.0 69.8 59.8

10.922.4 11.3

24.4

42.8

53.161.8

75.8

69.8 59.4

36.8

1.2% 1.3%

3.2%

5.0%

6.9% 7.0%6.4%

7.4%

6.5%

4.7%

1.7%

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 Q3 2010

GEL m ln

0%

1%

2%

3%

4%

5%

6%

7%

8%

RB &WM CB % of Gross loans

19.0

129.2136.8

111.3115.9

118.8

93.0

57.7

23.332.1

96.5

November 2010

BoG standalone liabilitiesLeverage ratio, BoG standalone

NBG Liquidity ratio, BoG standalone

Standalone

Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date

NBG Liquidity ratio is calculated by dividing liquid assets per NBG by Total liabilities per NBG

816

67

882

1,512

245

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Q3 2010

GEL mln


Client Deposits

Borrowed Funds

Other Liabilities

Total Shareholders Equity

23% of Total Liabilities + equity




3,522


34.2% 33.8%

27.2% 27.3%

38.0%

43.5%

35.6%

38.8%

34.8% 33.8%

37.7%

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 Q2 2010 Q3 2010

3.9

2.93.1 3.1 3.1

2.8 2.8 2.83.0

3.2 3.33.3

0

1

2

3

4

5

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

November 2010

Analysis of deposits

CB, RB & WM deposits, BoG standalone

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

Deposits by maturity, 30 September 2010

Standalone

Individual current accounts, 9.2%

Corporate time & demand deposits,

17.0%

Individual time & demand deposits,

37.9%

Corporate current accounts , 35.9%

20.8%

42.4%

2.7%

29.6%

79.2%70.4%57.6% 97.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

RB CB WM Total

GEL Foreign Currency

55%

0%

6% 6%

20%

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

363.6 326.0 320.4 280.4 283.1 326.3 376.1448.6 494.2

76.570.4 98.7

93.3 107.8131.4

163.1180.7

211.2218.7

403.4 414.7

81.6

652.7 681.5 576.2 626.2 605.2 518.4 596.7 587.6656.1

682.5 799.4

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 Q3 2010

GEL mln

RB Client Deposits WM Client Deposits CB Client Deposits

+11%

+4%

-19%

-15% +9%

-2%

-3%

-12% +1%

-14%+15%

+15%

+25%+15%-5%+40%-14%+7% +21%

+15%

-1%

+10%

+12%

+11%+17%

+8%

+4%

+17%

+4%

+10%

November 2010

Deposit yieldsStandalone

9.1%

8.2% 8.0%

10.4%

8.6%9.1%

9.6% 9.8%10.3%

9.9%10.3%

3.8% 4.0%

5.0%

7.7%

5.8% 5.7%

7.0% 6.9%

8.0% 7.9%7.3%

8.1%

5.6%5.4%7.2% 7.1%

5.8%

8.0%7.6%

8.4%

6.7%6.6%

7.9%8.2%

7.5%

0%

2%

4%

6%

8%

10%

12%

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

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

November 2010

Risk managementCurrency risk managementLiquidity risk management, Q3 2010

Standalone

29.1

361.4

701.2562.3

283.2

785.8

387.6

516.2436.0

174.5

1,195.8

12.8(16.3)10.0(175.0)

(301.3)

(410.0)-600

-400

-200

0

200

400

600

800

1,000

1,200

1,400

Up To 1 Month 1-3 Month 3 Month - 1 Year 1-5 Years Over 5 Years Past Due

GEL mln

Assets Liabilities Accumulated Liquidity Gap

16.0%

3.8%

6.2%

1.7%

4.1%3.5%

0.8%

5.8% 6.0%

0.6%1.5%

3.9%

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

Sep-10

Open Foreign Currency Position (as % of Regulatory Capital)

November 2010

Corporate banking

Corporate client deposits, 30 September 2010

Corporate loan portfolio, 30 September 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 30.0% market share based on customer deposits(1)

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

Integrated client coverage in key sectors90,508 clients of which 9,242 served by dedicated relationship bankersCirca 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 1,567 in Q2 2010 to 1,657 in Q3 2010More than 6,000 corporate accounts were opened at the bank in Q32010, bringing the total number of current accounts to 171,052

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

Total corporate deposits: GEL 799.4 mln

FMCG, 14%

Energy, 10%



Other, 16%Pharmaceuticals and Healthcare,

1%Trade, 30%

Current Accounts &

Demand Deposits,

81%

Time Deposits,

19%874

826875

794

928870

806765

880

951

1,016 1,039

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 30-Sep-10

GEL mln

-5% +6% -9% +17% -5%-7%-6% +15% +8% +7% +2%

35.9%

November 2010

Retail Banking – No. 1 retail bank in Georgia

Leadership in consumer lending

RB loan portfolio, 30 September 2010Retail loans originated

Retail gross loan portfolio growth

Standalone

Total retail loans: GEL 980.6 mln Note: does not include Ukraine & Belarus

Credit cards and overdrafts, 14%

Micro loans, 19%

Mortgage loans, 40%

Consumer and other, 27%

122.1

177.5 183.3

235.6

266.9

317.6

140.2

74.968.8

97.5104.9

128.2

186.9

211.3

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 Q3 '10

GEL mln

656

755

931

1,000

932

861831

807847

930981

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 Q2 10 Q3 10

GEL mln

+15%+10%+22% +1% +7% -7% -3%-8% -3% +5% +5%

21.6%

58,12152,42353,264§ Number of consumer loans outstanding146.9130.9125.6• Volume of consumer loans outstanding (GEL mln)

94,48081,119105,040• Credit Cards Outstanding, of which34,35919,600-§ American Express cards1,6081,043-• Number of Solo clients outstanding, (premier banking)

Q3 2009 Q2 2010 Q3 2010

• Number of Retail Clients 701,441 714,484 729,578

November 2010

Loan origination

Micro loans (RB & WM)

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

Other RB & WM loans

Standalone

358.8

23.1 46.7

406.1

58.7

417.3

-

50

100

150

200

250

300

350

400

450

Volume of MortgageLoans Originated

Volume of MortgageLoans Outstanding

GEL mln

Q3 2009 Q2 2010 Q3 2010

+16%

+103%+26%

+3%

60.3

143.3

65.3

135.5

79.9

159.7

-

20

40

60

80

100

120

140

160

180

Volume of Consumer LoansOriginated

Volume of Consumer LoansOutstanding

GEL mln

Q3 2009 Q2 2010 Q3 2010

+22%+8%

-5%+18%

92.3

25.7

156.8

71.778.3

182.7

-

20

40

60

80

100

120

140

160

180

200

Volume of Micro LoansOriginated

Volume of Micro LoansOutstanding

GEL mln

Q3 2009 Q2 2010 Q3 2010

+179%

+70%

+9%

+16%

272.5262.1

3.7 5.0

267.5

8.1-

50

100

150

200

250

300

Volume of Other RB & WMLoans Originated*

Volume of Other RB & WMLoans Outstanding

GEL mln

Q3 2009 Q2 2010 Q3 2010

+36%

-2 %

+62%

-2%

November 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 99.0 112.8 113.7 116.7 128.4

159.8

8.016.9 16.2

25.820.0

34.940.6 34.6 40.7

33.0

36.0

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 Q3 2010

GEL mln

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

10,912

17,13617,855

19,403

12,051

15,312

18,322 18,739 19,092 18,629

21,056

-

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 Q3 2010

410.4 363.3 349.9 350.2 382.3322.9

403.2 370.0435.5 475.2

542.3

53.639.2 26.8

90.2 69.379.2

74.278.1

75.171.7

104.6188.7 279.0

199.5185.8 153.6

116.3

119.3 139.4145.6

135.6

152.5

0

100

200

300

400

500

600

700

800

900

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

GEL mln

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

169.9 185.3120.9 98.1 95.2 93.6 102.5 118.8 128.5 139.4 139.4

39.2 36.9

18.618.0 16.3 20.7 34.8 43.1 50.1 62.8 71.0

231.1262.9

257.0 302.9262.2 276.6

323.4377.4

416.8457.7

502.6

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 Q3 2010

GEL mln

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

November 2010

RB cross-selling

Cards penetration rate*

RB loans penetration rate*Product/client ratio

Standalone

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

2.7

3.03.2

3.33.5

3.13.0

2.8 2.8 2.7 2.8 2.8 2.8

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

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-10 30-Sep-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% 1.2%

9.2% 7.6% 7.6% 7.9% 8.7%

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

35.8%39.3%

44.3%46.4% 47.9% 47.6%

44.5% 44.8%46.8% 45.5%

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 Sep-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% 66.2% 65.7% 64.4%

23.6% 26.9%31.4%

24.8%20.6% 17.5% 15.0%

10.56% 11.38% 11.3% 12.9%

62.6%

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-10 Sep-10Debit Cards Penetration Rate Credit Cards Penetration Rate

Current accounts & deposits penetration rate*

11.3%

111.2% 111.3% 112.8%122.4% 121.7% 119.4%

14.8%9.7%9.2%7.6%7.1%8.9%7.3%6.7%5.6%

10.8%10.3%

110.8%111.1%114.3%105.0% 121.5%

14.4%14.7%15.7%16.4%19.0%19.5%19.8%20.0%

14.3% 14.4%

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-10 Sep-10

Demand & Time deposits Penetrartion rateUniversal Current Accounts Penetration RateStandard Current Accounts Penetration Rate

November 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

5.5 5.5 5.5 5.45.6

2.5 2.6

3.1 3.3

3.84.0 4.0 4.0

4.2

4.7 4.7

1.4

0.5

0.4

1.7

1.0 1.1

2.2

1.1

1.31.3

1.1

1.4 1.51.2

1.4

1.3

0

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

Jun-10

Sep-10

GEL mln

0

1

2

3

Total Assets (LHS) Revenue (RHS)

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 7,958

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 Q3 10

'000s

203286

337437 460

649721

776 774

658 636582

539.0 541 525 496 52072

84

119

138

247

227

256

278 304

256 261

227230 237 227

186 175

275

456

575

706

876914

897

809

769 778753

681

370

695

0

200

400

600

800

1,000

1,200

1,400

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 Sep-10

'000s

Bank of Georgia Other Banks

1,0781,054

978

November 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%Tenor: Normally 10 yearsCurrency: US$LTV: Normally 75-85%

231 259 423 437 517817 766

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

8,240 8,2238,479

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

Q32010

Number of mortgage loans issued Number of mortgage loans outstanding

101.6128.7

157.7

203.5

245.5

312.0325.9

386.7 383.1 373.7358.8

370.5385.1

406.1 417.3

0

50

100

150

200

250

300

350

400

450

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

33.837.6

43.3

69.5

81.3

96.1

32.5

18.5

10.1 11.5

23.1 23.427.0

46.7

58.7

0

20

40

60

80

100

120

Q12007

Q22007

Q32007

Q42007

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

November 2010

Management (WM) performance review

WM loans, 30 September 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), 1.67 (Q2 2009), 1.68 (Q3 2009),1.69 (Q4 2009), 1.75 (Q1 2010), 1.84 (Q2 2010) 1.81 (Q3 2010) (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

Car Loans, 3.3%

Mortgage Loans, 61.4%

Consumer Loans, 31.9%

Credit Cards & Overdrafts, 3.4%

127.8136.9108.8

87.869.3

59.060.955.4

73.366.8

64.866.463.4

48.348.2

6.7

117.5

1,3411,454

1,3311,4291,364

1,358

1,3411,3871,384

1,3821,3041,291

1,1871,081

943873

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

Q3'10

US$ mln

0

200

400

600

800

1,000

1,200

1,400

1,600

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

49.531.5 35.7 35.1 38.4 47.9 52.1 57.2 62.9 56.7

32.139.0

61.0 58.269.4

83.6111.0

123.4

148.4 162.1

0

50

100

150

200

250

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

GEL mln

Current Accounts & Demand Deposits Time Deposits

211

71

82

181163

131

1089397

219

101.0%93.7% 96.2%

79.2%

21.2%25.5% 27.8%

62.7% 70.2%

64.0%

65.8%52.2%

66.9% 66.8% 65.8%

55.3% 54.0%

71.4%

60.5% 65.6%

66.9%

135.0% 130.2%

114.2% 111.2%

93.4%

45.5%40.8%40.1%

32.2% 31.8% 32.8%

53.5%

47.1%

80.7% 78.2%76.4%70.2% 69.6%

65.2%62.5%

57.1%

52.5%49.4%

15.3% 14.8% 15.4% 10.5% 20.6%21.9% 23.7% 23.7% 24.1%

27.5%

29.6%

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 Q3 2010

OneCard Penetration Rate All Other Cards Penetration RateDemand & Term Deposits Penetration Rate Internet Banking Penetration RateSMS Banking Penetration Rate

November 2010

BG Bank (Ukraine) standalone results overview

November 2010

BG Bank performance

Net income

Costs, Q3 2010Revenue growth

Cost/Income Ratio

4.85.5

6.4

3.82.9

4.3 4.0 4.22.7

3.82.4

1.7 0.8

2.61.2

1.3

(0.5)

0.3

0.5

0.6

2.75.5

10.4% 10.4%

12.6%

8.3%

10.3%

7.2%7.5%

8.3%

6.1%

11.3%

6.4%

-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 Q3 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

5.5 5.6 5.3

3.8

3.1

4.1

3.0

109.2%116.9%

100.1%91.5%

74.7%

140.5%

105.1%

76.0%

35.7%

230.0%

106.2%

0%

50%

100%

150%

200%

250%

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

4.9

3.3

3.82.0

-

1

2

3

4

5

6

7

8

Q2 2010 Q3 2010

GEL mln

Recurring Operating Costs Provision Expense

(7.3)

(10.8)

(5.5)

(11.3)

0.3

(3.1)

(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

Q32010

GEL mln

November 2010

BG Bank assets as at 30 September 2010Asset growth

Gross loan book growth

No international loan

11.811.28.2Tax Assets, Current And Deferred

GEL million Q3 2009 Q2 2010 Q3 2010Available-For-Sale Securities 6.1 7.4 -Investment Property - 15.7 15.4Intangible Assets Owned, Net 0.8 0.9 0.8

Prepayments And Other Assets 1.1 0.5 1.0Other assets 16.2 35.7 28.9

28.935.7

16.2

9.19.8

14.1

134.6

143.4

136.0

8.8

11.5

6.6

12.8

14.9

28.9

0

50

100

150

200

250

Q3 2010Q2 2010Q3 2009

Cash & Equivalents

Loans & Advances To Credit Institutions

Loan Portfolio


Other Assets

14% of Total Assets

3% of Total Assets

67% of Total Assets

7% of Total Assets

7% of Total Assets

5% of Total Assets

67% of Total Assets

5% of Total Assets

17% of Total Assets

202

GEL mln

8% of Total Assets

194

215

7% of Total Assets

15% of Total Assets

5% of Total Assets

69% of Total Assets

5% of Total Assets 360 350 337

249 245 205 202 198 191 215 194

923851

1,149 1,147 1,129

946 936965

1,2131,217

864

0.2 0.20.3

0.3

0.2 0.2 0.2 0.20.2

0.20.3

0

200

400

600

800

1000

1200

1400

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

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

255 265 257194 192 184 180 177 184 208 192

839

845886896871

925862

858 836 834890

0.2

0.20.20.2

0.30.3

0.2 0.2

0.20.2

0.3

0

100

200

300

400

500

600

700

800

900

1000

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

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

November 2010

BG Bank loan portfolio

Retail loan portfolio breakdown, 30 September 2010

Corporate loan portfolio breakdown, 30 September 2010

Loan portfolio breakdown, 30 September 2010

Gross loans: GEL 191.6 million Gross corporate loans: GEL 165.9 million

Total retail loans: GEL 25.7 million

CB, 86.6%

RB & WM, 13.4%

Other, 4%



Trade, 70%

Credit cards and Overdrafts, 1.2%

Mortgage loans, 46.2%

Consumer and other*, 51.6%

Micro loans, 1.0%

November 2010

BG Bank analysis of the loan book

Loans by maturity, 30 September 2010

Top ten borrower concentrationLoans by currency, 30 September 2010

Loan book collateralization 39.9%

19.7%

13.8%

26.7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Less than 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%

40.4%

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 Q3 2010

UAH, 42.8%Foreign currency,

57.2%

89.9%

91.5%90.9%

92.1%93.0%

95.8%96.6%

97.5%

96.2%

98.9%99.5%

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 Q3 2010

November 2010

BG Bank provisioning policy

NPL coverage ratio

Loan loss reserveNPLs

Reserve for loan losses to gross loans

2.8% 2.2% 2.5%

10.5%

13.0%

17.6%

24.2%

29.0%28.3%

30.9% 29.7%

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 Q3 2010

167.0%

319.4%

182.1%199.3%

174.3%

116.8%

156.9%

168.2%

166.4%

181.1%153.2%

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 Q3 2010

2.6 2.9 2.7 2.6

8.75.6

17.6

11.5 12.2

17.513.7

4.0

7.2

22.1

6.314.2

16.6

24.4

19.0

0.1 0.7 1.01.7%

1.3%1.5%

4.6%

8.3%

15.1%13.3%

14.5%15.6%

20.2%

17.1%

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 Q3 2010

GEL mln

0%

5%

10%

15%

20%

25%

RB CB NPL ratio

7.3 5.7 6.3 8.312.2 12.8 12.9 14.5 14.7 15.4 13.3

6.3

12.8

19.5

30.6

36.8 37.4

48.8

43.6

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 Q3 2010

GEL mln

RB CB

November 2010

BG Bank standalone liabilities breakdownLeverage ratio

Q3 2009 Q2 2010 Q3 2010Issued Fixed Income Securities 0.7 - -Accruals And Other Liabilities 1.5 1.2 1.1Other liabilities 2.2 1.2 1.1

9.2

38.941.3

155.2

142.0

117.1

1.12.2

28.8

33.2

41.4 1.2

0

50

100

150

200

250

Q3 2010Q2 2010Q3 2009

GEL mln

Total Shareholders Equity

Other Liabilites

Client Deposits









15% of Total Liabilities + equity15% of Total Liabilities + equity




202

194

215

4.3

2.3 2.1

2.9 3.0 3.2

3.9

5.34.9

5.55.7

0

1

2

3

4

5

6

7

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

November 2010

BG Bank client deposits

Client deposits

Deposit yieldsClient deposits, by currencies

Deposits by maturity, Q3 2010

270216

180 171127 121 115 117 139 122 142 155

656

554609

680

559528558588614592

730856

0.220.23 0.2

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

Q32010

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%

12.7%12.4%

13.0%

15.1%

14.0%15.8%

12.0%12.5%

12.8%12.8%

10%

11%

12%

13%

14%

15%

16%

17%

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

29.9%

24.7%

13.9%

22.6%

8.8%

0%

5%

10%

15%

20%

25%

30%

35%

On demand Less than 3 month 3 to 6 months 6 months to 1 year Over 1 year

85.460.5 61.5

45.7 44.6 37.7 43.2 39.2 44.3 43.2

130.6

119.7 109.1

81.7 76.477.1 73.9

83.7

83.097.6 112.0

55.2

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 Q3 2010

GEL mln

CB Client Deposits RB & WM Client Deposits

-29%

-8%

-9%

+2%

-25%

-26%

-6%

-2%

+1%

-15%

-4%

+15% +28%

+13% -1%

-29%

+18%

+13% -3%

+15%

November 2010

BG Bank analysis of depositsClient deposits by currency, Q3 2010Client deposits breakdown, Q3 2010

Client deposits: GEL 155.2 mln

Current accounts, 29%

Time&Demand deposits, 71%

UAH, 47%Foreign currency, 53%

November 2010

BG Bank capital adequacy

Risk-weighted assets BIS vs. NBU

NBU capital adequacy ratiosBIS capital adequacy ratios

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

77.7%73.7% 74.6%

68.1%64.3%

69.7% 67.0% 69.7%

85.9%76.6%

84.1%79.3% 81.9%

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 Q3 2010

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

19.0%

25.1%23.7%

19.5%17.3%

16.1%

27.5% 27.3%

22.0%

18.6%17.2%

28.7%

31.4%

35.6%

32.6%31.3% 31.0%

34.7%35.8%

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 2010 Q3 2010

Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

23.9% 23.3%

21.4% 21.1%

26.3% 25.8%

12.4% 12.9%14.0%

19.2%20.8% 21.8% 20.8%

13.7%14.5%

15.6%

21.0%

22.8% 23.8%

22.8%

21.6%21.2%

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 Q2 2010 Q3 2010

Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio

244.1230.4

196.2 196.2

236.7 231.5

123.3

158.1177.9

167.3

282.1305.2

327.7

355.0361.6

160.0165.1184.9184.5

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 Q3 2010

GEL mln

NBU BIS

November 2010

Belarusky Narodny Bank (Belarus)

November 2010

BNB Bank performance

Net income

Costs, Q3 2010Revenue growth

Cost/Income Ratio

1.1 1.0 1.01.4 1.6

2.3 2.3 2.2

0.6 0.6 1.0

0.70.8

1.40.8

0.6

14.9%14.1%16.6%

12.7%

10.9%

10.9%

10.8%

12.1%

0

5

Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 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 3.03.2

1.5

2.5

(0.2)

0.03

-1

0

1

2

3

4

Q3 2009 Q3 2010

GEL mln

Recurring Operating Costs Provision Expense

(0.9)

0.5 0.6

0.8

0.6

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

1.0

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

GEL mln

80.4%

61.5%

90.7%

60.6%67.8% 69.0%

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 Q3 2010

November 2010

BNB loan portfolio as at 30 September 2010

RB Loan Portfolio Breakdown, 30 September 2010

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

CB Loan Portfolio Breakdown, 30 September 2010Gross loans: GEL 51.7 mln

RB loans: GEL 2.4 mln* Other loans include car, POS and legacy retail loans

Loan loss reserve: GEL 1.3 mln

CB loans: GEL 49.3 mln

CB, 95%

RB, 5%

CB, 1.19

RB, 0.13

Card overdrafts, 2%

Consumer and other*, 97%

Mortgage loans, 1%

Other, 11%

Industry & state, 14%

Trade, 63%

Construction & real estate, 13%

November 2010

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

4,458

13,908

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Jan-00

GEL '000

RB Deposits Outstanding CB Deposits Outstanding

Time Deposits Outstanding ,

24.1%

Current Accounts Outstanding ,

75.9%

November 2010

Insurance

November 2010

GEL '000

656

1,699 1,640

(277)

1,060

871

1,329

(500)

-

500

1,000

1,500

2,000

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

Aldagi BCI

Recurring operating costs

RevenueGross premiums written/Net premiums earned

Net Income/Loss

+52.6%

GEL mln

3.4

6.3 6.1

4.94.6

6.0

4.2

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

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

GEL mln

2.9

4.03.8 3.7

3.1

4.9

2.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

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

-48.6%

15,62616,777

14,954

12,076 12,523 13,065

(500)

1,500

3,500

5,500

7,500

9,500

11,500

13,500

15,500

17,500

19,500

Q3 2009 Q2 2010 Q3 2010

GEL 000s

Gross Premiums Written Net Premiums Earned

November 2010

BG Capital

November 2010

BG Capital

Proprietary book

Net income/(loss)Revenue

Headcount

1.6

(1.0)

(1.9)

(2.8)

(0.5)

0.9 1.1 1.1

2.9

0.9

(0.6)

(4)

(3)

(2)

(1)

0

1

2

3

4

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

(2.6)(2.3)

(4.6)

(1.6)

0.2

(1.7) (1.6)

0.8

(1.1)

(2.4)

(5)

(4)

(3)

(2)

(1)

0

1

2

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

20 22 22 18 15 16 13 13 15 15 13

2722

25 30 27

14 1714

38 43 34

5865

56

4539 43 44 41

30 33 28

0

10

20

30

40

50

60

70

80

90

100

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

BG Capital Georgia BG Capital Ukraine

19,276

36,968

3,9122,588 1,364

2,7905,286 5,285 5,334

1,6854,734

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q12008

Q22008

Q32008

Q42008

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

GEL mln

November 2010

Contact

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

Macca EkizashviliHead of Investor RelationsHead of Representative Office, London84 Brook St, London, W1K 5EH+44 203 178 [email protected]

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

mailto:[email protected]



November 2010

Appendices

November 2010

Bank of Georgia shareholder structure & management

November 2010

Ownership structure

Supervisory board

Ownership structure, 30 September 2010

Management board

Broadly owned by over 100 institutional accounts

Head of Wealth ManagementVasil Revishvili

Deputy CEOMurtaz Kikoria

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

* Expected to be replaced by Hanna Loikkanen by the EGM to be held on 22 November 2010

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

Name Number %GDR Holders* 27,457,490 87.6%Local Shares Held by Institutional Shareholders 1,704,866 5.4%Local Shares Held by Domestic and Foreign Retail Shareholders 1,199,141 3.8%Management & Employees** 971,756 3.1%Total Shares Outstanding 31,333,253 100.0%

Adjusted for BG Capital's Proprietary Book (1 ) (4,734) Adjusted Total Shares Outstanding 31,328,519

(1) Treated as treasury shares as per IFRS*through BNY Nominees Limited** includes GDRs held as part of EECP

Management & Employees**, 3.1%

Local Shares Held by Domestic and Foreign Retail Shareholders,

3.8%Local Shares Held by

Institutional Shareholders, 5.4%

GDR Holders*, 87.6%

November 2010

Analyst coverage

Analyst Email

Andrzej Nowaczek [email protected]

Analyst Email

David Nangle [email protected]

Analyst Email

Mikhail Shlemov [email protected]

Analyst Email

Thomas Stögner [email protected]





November 2010

Georgian banking sector – key trends 2007- Q3 2010

November 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

Q3 2010= 1.81

GrowthMarket Share Market Share Market Share

Q3 2010(YE 2008) (YE 2009)

GEL mln YE 2008 YE 2009 Q3 2010As % of GDP*

2008 Y-O-Y

2009 Y-O-Y

Q3 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 9,869 55.0% 23.0% -6.5% 19.0% 79.26% 32.89% 78.1% 33.0% 78.0% 34.2%Gross Loans 5,993 5,185 5,844 32.6% 30.6% -13.5% 12.7% 81.78% 32.87% 81.4% 31.8% 82.6% 34.1%Deposits 3,845 4,174 5,378 30.0% 9.5% 8.6% 28.8% 75.00% 28.76% 77.70% 27.4% 79.9% 29.4%Equity 1,517 1,517 1,697 9.5% 3.1% 0.0% 11.8% 75.69% 40.03% 79.60% 38.6% 77.5% 39.2%Net Income/(Loss) (216) (65.3) 58.0 0.3% 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 – 32.6%High level of liquidity requirements from NBG at 20% of Liabilities, Bank of Georgia 33.8%Low Leverage in the banking sector: Banking Sector Average – 4.2x, Bank of Georgia – 4.3x

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 Q3’10 at c. 6.5%)

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*

November 2010

32.9%

22.0%

7.7%9.6%

7.0%

4.8%

15.9%

33.0%

20.8%

8.6%9.8%

5.9%4.6%

17.3%

34.2%

20.7%

8.4% 9.5%

5.2%3.6%

18.4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

BoG TBC ProCredit Bank Bank Republic Cartu VTB Other Banks

YE 2008

YE 2009

Sep-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

Q3 2010= 1.81

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

November 2010

12.2%

6.0%6.4%

10.1%8.7%

23.7%

32.9%

13.0%

5.6%

7.6%10.1%10.2%

21.6%

31.8%

18.5%

3.6%

5.2%

9.5%

8.4%

20.7%

34.1%

0%

5%

10%

15%

20%

25%

30%

35%

40%

BoG TBC ProCredit Bank Republic Cartu VTB Other Banks

YE 2008

YE 2009

Sep-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

Q3 2010= 1.81



November 2010

28.8%

22.5%

8.1%8.9%

6.5% 6.8%

18.5%

27.4%

24.1%

9.1%

10.8%

5.5%

2.7%

20.4%

29.4%

23.7%

8.5%

11.5%

3.6%2.0%

21.3%

0%

5%

10%

15%

20%

25%

30%

35%

BoG TBC ProCredit Bank Republic VTB Cartu Other Banks

YE 2008

YE 2009

Sep-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

Q3 2010= 1.81



November 2010Page 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, 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

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