Final Results
Bank of Georgia
1.59 GEL/US$ 2007 period end
1.67 GEL/US$ 2007 average
1.71 GEL/US$ 2006 period end
1.78 GEL/US$ 2006 average
JSC BANK OF GEORGIA ANNOUNCES CONSOLIDATED Q4 2007 AND FULL YEAR 2007 RESULTS
-0-
*T
Millions, unless otherwise noted Q4 2007 Growth y-o-y
(1)
Bank of Georgia
Consolidated
US$ GEL
Bank of Georgia (Consolidated, Unaudited, IFRS Based)
Total Operating Income (Revenue)(2) 42.9 68.3 81%
Recurring Operating Costs 18.0 28.7 71%
Normalised Net Operating Income(3) 24.9 39.6 88%
Pre-Bonus Result 22.9 36.4 110%
Net Income 16.1 25.5 170%
Millions, unless otherwise noted 2007 (YTD) Growth y-o-y
(1)
Bank of Georgia
Consolidated
US$ GEL
Bank of Georgia (Consolidated, Unaudited, IFRS Based)
Total Operating Income (Revenue)(2) 136.8 217.7 94%
Recurring Operating Costs 54.8 87.2 66%
Normalised Net Operating Income(3) 82.0 130.4 119%
Pre-Bonus Result 74.9 119.2 160%
Net Income 47.4 75.4 182%
Consolidated EPS (Basic), GEL & US$(4) 1.82 2.89 78%
Consolidated EPS (Fully Diluted), GEL & US$(5) 1.74 2.77 181%
ROAA(6, )% 3.8
ROA (7) % 2.5
ROAE(8) % 17.7
ROE(9)% 13.5
*T
(1) Compared to the same period in 2006; growth calculations based on GEL values
(2) Revenue includes Net Interest Income and Net Non-Interest Income.
(3) Normalised for Net Non-Recurring Costs.
(4) Basic EPS equals Net Income of the period divided by weighted average
outstanding shares for the period.
(5) Fully Diluted EPS equals Net Income of the period divided by the number of
outstanding ordinary shares as of the period end plus number of ordinary shares
in contingent liabilities.
(6) Return on Average Total Assets equals Net Income for the period divided by
the average Total Assets for the period.
(7) Return on Assets equals Net Income for the period divided by the Total
Assets at the end of the period
(8) Return on Average Total Shareholders' Equity equals Net Income for the
period divided by the average Total Shareholders' Equity for the period.
(9) Return on Equity equals Net Income for the period divided by the Total
Equity at the end of the period
Bank of Georgia (LSE: BGEO, GSE: GEB), the leading Georgian universal bank,
announced today its Q4 2007 and full year 2007 consolidated results (IFRS based,
derived from management accounts), reporting record quarterly Net Income of GEL
25.5 million in Q4 2007, (up 169.8% y-o-y) or US$0.59 per share (Basic, up
106.8% y-o-y).
For the full year 2007, Net Income on the consolidated basis reached GEL 75.4
million (up 181.7% y-o-y), or US$1.82 per share (Basic, up 78.4 % y-o-y).
Q4 2007 Summary
Total Operating Income (Revenue) grew by 80.5% y-o-y to GEL 68.3 million in Q4
2007, a result of the 62.0% growth y-o-y of Net Interest Income to GEL 42.7
million and 123.0% growth y-o-y of Net Non-Interest Income to GEL 25.6 million.
The slower growth rate of Recurring Operating Costs, up 70.7% y-o-y to GEL 28.7
million, was reflected in the decrease of Normalised Cost/Income ratio from
56.0% in Q4 2006 to 49.4% in Q4 2007. Net Normalised Operating Income ('NNOI')
was up 88.4% to GEL 39.6 million, while Pre-Bonus Result ('PBR') grew by 110.3%
to GEL 36.4 million for the quarter.
In Q4 2007, Bank of Georgia raised the total of US$80 million in debt funding,
which comprises of US$15 million subordinated loan facility from a fund
affiliated with HBK Capital Management and a US$65 million senior loan facility
arranged through Merrill Lynch.
In October 2007 Bank of Georgia completed the acquisition of 98.77% of the
Ukrainian Bank of Development and Partnership ('UBDP'), a mid-sized Ukrainian
Bank and its Q4 2007 Profit & Loss results have been consolidated in the Bank of
Georgia Group's (the 'Bank') Q4 2007 results. UBDP's Q4 2007 results are
presented as separate Strategic Business Unit ('SBU') - Ukraine SBU ('Ukraine')
under segments results of the group.
In November 2007, Bank of Georgia announced changes in the Supervisory Board
after Lado Gurgenidze, resigned as a Chairman of the Supervisory Board to become
Prime Minister of Georgia. Following Mr. Gurgenidze's resignation, Nicholas
Enukidze, Vice Chairman of the Supervisory Board has been acting as Chairman of
the Supervisory Board. Nicholas Enukidze is expected to be appointed Chairman of
the Supervisory Board following the Extraordinary General Meeting of
Shareholders to be held in February 2008.
Full Year 2007 Summary
The Bank reported strong consolidated results with Net Income of GEL 75.4
million, up 181.7% y-o-y. Total Operating Income (Revenue) grew 94.3% y-o-y to
GEL 217.7 million, as Net Interest Income (GEL 133.1 million) grew by 99.4%
y-o-y while Net Non-Interest Income (GEL 84.6 million) lagged at an 86.9% growth
rate y-o-y. Non-banking operations generated approximately 31.4% (or
approximately GEL 26.6 million) of the Total Net Non-Interest Income, up 134.3%
y-o-y. Total Recurring Operating Costs increased by 66.1% y-o-y, mostly a result
of increased number of the personnel as the Bank continued to grow across its
product lines and geographies. Total Operating Income (Revenue) growth
accelerated from 76.6% in 2006 to 94.3% in 2007 resulting in Operating Leverage
of 24.4% in 2007, up from 18.8% in 2006, reflecting the Bank's improved
efficiency. NNOI increased to GEL 130.4 million up 119.3% y-o-y. PBR grew 159.8%
y-o-y to GEL 119.2 million.
The Bank's consolidated Total Assets reached GEL 3.0 billion by 31 December
2007, up 145.7% y-o-y. Gross Loans reached GEL 1,721 million, a 140.7% increase
y-o-y. UBDP accounted for approximately 11.7% (GEL 350.3 million) and 13.2% (GEL
226.4 million) of the Bank's Total Assets and Total Gross Loans, respectively.
In 2007, the Bank's non-deposit funding base grew by GEL 612.5 million to GEL
836.0 million, of which GEL 113.6 million (3.8% of YE 2007 Total Assets) matures
in 2008. Client Deposits (GEL 1,362 million as at 31 December 2007) increased by
143.4% y-o-y.
Bank of Georgia Group's Total Assets and Gross Loans to Clients, excluding UBDP,
grew 116.9% y-o-y to GEL 2,631 million and 109.1% y-o-y to GEL 1.5 billion,
respectively. Corporate, retail and private banking Gross Loans To Clients of
Bank of Georgia grew by 105.1%, 128.7% and 96.3% y-o-y, respectively, to GEL
807.2 million, GEL 644.0 million and GEL 44.2 million, respectively. As of 31
December 2007, the combined share of Bank of Georgia (excluding UBDP) retail and
private banking in Bank of Georgia's Gross Loans To Clients increased to 46.0%
from 42.5% at the year end 2006. Bank of Georgia's Client Deposits, excluding
UBDP, increased by 95.5% y-o-y, to GEL 1,094 million. The balance sheet growth
of Bank of Georgia, excluding UBDP, during 2007 resulted in an approximately
7.0% market share gain by assets, approximately 6.1% market share gain by gross
loans and approximately 6.8% market share gain by client deposits. As of 31
December 2007, Bank of Georgia held the market share of 35.4%, 32.7% and 31.4%
by total assets, gross loans, and client deposits respectively.(1)
Total Shareholders' Equity grew by GEL 185.0 million in 2007 and amounted to GEL
559.8 million. The growth was mainly attributed to 2007 Net Income of GEL 75.4
million, equity issuance in connection with the conversion of US$25 million
subordinated convertible loan by a fund affiliated with HBK Investment L.P. and
executive equity compensation and increase of revaluation & other reserve
account by GEL 68.3 million, of which GEL 62.0 million is due to the revaluation
of Bank of Georgia's fixed assets (real estate). As required by IFRS this
revaluation was conducted in December 2007 and previous revaluation of fixed
assets was performed in 2003.
The Bank's Consolidated ROAE increased to 17.7% from the consolidated ROAE of
16.5% in 2006. Consolidated ROAA grew to 3.8% during 2007, from 3.4% in 2006.
The equity book value per share stood at GEL 20.62 (US$12.96) as at 31 December
2007, up 38.6% y-o-y.
(1) Market share data are derived from the information published by the National
Bank of Georgia (www.nbg.gov.ge) and represent an aggregation of standalone
financial information filed by Georgian banks.
Strategic Business Unit and Business Unit Overview
Corporate & Investment Banking (CIB)
Discussion Of Results
Allocated Revenues grew 78.0% y-o-y to GEL 71.5 million, impacted by the growth
of Net Interest Income and Net Non-Interest Income. Operating leverage of CIB
has improved, as the growth rate of allocated Recurring Costs (up 70.9% y-o-y)
lagged the growth rate of the allocated Revenues. PBR grew 79.9% y-o-y to GEL
42.9 million, contributing 36.0% to the consolidated PBR. Earnings grew 94.6%
y-o-y to GEL 28.8 million, contributing 38.1% to the consolidated Net Income.
Gross Loans grew 105.1% y-o-y to GEL 807.2 million, driven by the increased
lending to corporate clients and growth of the SME loan book. Allocated Client
Deposits grew 138.3% y-o-y to GEL 673.7 million, primarily due to the growth of
time deposits and current account balances. Allocated Total CIB Assets amounted
to GEL 1,422 million, up 165.8% y-o-y, while allocated Total CIB Liabilities
reached GEL 1,138 million, up 149.7% y-o-y.
Highlights
-- Major new corporate client acquisitions include 15 subsidiary companies
of State Oil Company of Azerbaijan ('SOCAR'), including, inter alia,
Sheraton Metekhi Palace Hotel, Kaztransgaz (Tbilisi natural gas
distribution company) and Wissol, a leading Georgian gasoline retail
chain.
-- Increased the number of corporate clients using the bank's payroll
services from 480 at the end of 2006 to over 700 by the end of 2007. By
31 December 2007, the number of individual clients serviced through the
corporate payroll programs administered by the bank increased from
approximately 83,500 at the beginning of the year to over 150,000.
-- More than 16,000 legal entities opened accounts at the bank during 2007,
bringing the total to over 64,000.
Retail Banking (RB)
Discussion Of Results
Allocated Revenues grew 104.7% y-o-y to GEL 93.3 million, impacted by the growth
of Net Interest Income and Net Non-Interest Income. Operating leverage of RB has
improved, as the growth rate of allocated Recurring Costs (up 49.6% y-o-y,
driven primarily by the branch and headcount expansion) lagged the growth rate
of the allocated Revenues. PBR grew 154.8% y-o-y to GEL 40.3 million,
contributing 33.8% to the consolidated PBR. Earnings grew 177.9% y-o-y to GEL
27.0 million, contributing 35.7% to the consolidated Net Income. Gross Loans
grew 128.7% y-o-y to GEL 644.0 million, driven by the increased lending activity
due to high demand from clients. Allocated Client Deposits grew 66.4% y-o-y to
GEL 342.1 million, driven primarily by the growth of current account balances
and time deposits. Allocated Total RB Assets amounted to GEL 1,125 million, up
201.3% y-o-y, while allocated Total RB Liabilities reached GEL 709.8 million, up
169.8% y-o-y.
Highlights
-- Launched a co-branded student card (Bali Card) with Magti, Georgia's
leading Mobile Operator. Bali is Magti's sub-brand targeting the young
population segment. Bali Card combines debit chip card and transport
contactless application (a so called hybrid card), which can be used at
Tbilisi Metro (subway) for transit passes.
-- Acquired a 51% equity interest in JSC Nova Technology, which operates a
network of approximately 1,000 POS and 200 self-service terminals
offering a range of payment services, including, inter alia, mobile
top-up and utility payments. Other services are expected to be added in
the near future.
-- Increased the number of retail current accounts from approximately
420,000 at the beginning of the year to more than 700,000 by 31 December
2007.
-- Increased the number of branches (service centers) in Georgia from 100
at the beginning of the year to 117 by 31 December 2007.
-- Purchased commercial space previously rented for seven existing
branches, which resulted in cost savings of GEL 0.3 million per annum.
-- Bought and leased premises for 34 new branches, which are expected to be
fully renovated and operational by the end of 2008.
-- Stepped up the issuance of credit cards, as the number of credit cards
issued reached approximately 108,538 by the end of 2007 since the launch
in Q4 2006. As of 31 December 2007, the number of credit cards
outstanding amounted to 108,616, up from 356 at the beginning of the
year.
-- Increased the issuance of debit cards, with over 320,000 debit cards
issued in 2007, compared to approximately 240,000 debit cards issued
during 2006. The number of debit cards outstanding increased from
approximately 285,000 at the beginning of the year to approximately
538,000 by the end of December 2007.
-- Continued to make gains in merchant acquiring as the installed POS
terminal footprint grew to 1,594 compared to 471 at year end 2006.
-- Total number of cards serviced by Georgian Card grew from 370,000 at the
beginning of the year to 876,263 by 31 December 2007, while the number
of transaction authorisations processed by Georgian Card in 2007 grew
157.5% y-o-y to approximately 18.7 million. The volume of transactions
processed grew to GEL 1,202 million, up 134.6% y-o-y.
-- Continued investing in the electronic banking channels, as the number of
ATMs grew to 250 by 31 December 2007 (up from 124 at the beginning of
the year), number of mobile banking users reached 39,703, and number of
registered Internet banking users grew 206.6% to over 114,612.
-- POS express consumer lending, commenced by the bank in 2006 to
complement its branch-based general-purpose consumer lending, resulted
in the 969 express loan POS contracts signed with merchants (of which
640 outlets were served by 31 December 2007). POS express loan
originations have reached GEL 106.6 million in 2007 (up 244.6% y-o-y),
while POS express loans outstanding amounted to GEL 61.3 million at the
end of December 2007, up 176.4% y-o-y.
-- Increased mortgage loan originations to GEL 169.0 million in 2007 (up
227.8% y-o-y) resulting in mortgage loans outstanding by 31 December
2007 of GEL 180.7 million, up 183.8% y-o-y.
-- Car loan originations of GEL 38.9 million (up 298.6% y-o-y) resulted in
car loans outstanding by 31 December 2007 of GEL 37.1 million, up 279.6%
y-o-y.
Insurance
Discussion Of Results
Gross Premiums Written of Aldagi BCI, the bank's wholly-owned insurance
subsidiary, increased by 232.0% y-o-y to GEL 41.9 million. Net Premiums Earned
grew 163.2% y-o-y to GEL 16.7 million. Revenues decreased by 0.2% y-o-y to GEL
5.9 million. PBR decreased by 4.3% y-o-y to GEL -0.4 million resulting in net
loss of GEL 0.7 million in 2007. Net loss was mainly due to government's health
care program for socially vulnerable citizens and school teachers through which
Aldagi BCI acquired 84,000 clients. Total Insurance Assets amounted to GEL 63.5
million, while Total Insurance Liabilities reached GEL 45.3 million as at 31
December 2007.
Highlights
-- Nikoloz Gamkrelidze appointed as Chief Executive Officer of Aldagi BCI
(formerly the CEO of My Family Clinic, Aldagi BCI's wholly-owned
subsidiary).
-- Major new corporate client acquisitions include two mobile operators
GeoCell and Mobitel (Beeline) and Batumi International Cargo Terminal
for Terminal liability insurance.
-- Opened an additional branch of My Family Clinic in Tbilisi.
Wealth Management (WM)
Discussion Of Results
Allocated Revenues grew 103.6% y-o-y, impacted by the growth of Net Interest
Income (driven primarily by the growth of the Private Banking loan book) to GEL
5.1 million in 2007. Allocated Recurring Costs of GEL 1.8 million grew 76.4%
y-o-y. PBR grew 163.8% y-o-y to GEL 2.8 million, contributing 2.4% to the
consolidated PBR. Earnings grew 191.2% y-o-y to GEL 1.9 million, contributing
2.6% to the consolidated Net Income. Gross Loans grew 96.3% y-o-y to GEL 44.2
million, while Allocated Client Deposits increased by 6.7% y-o-y to GEL 69.8
million. Allocated Total WM Assets amounted to GEL 84.4 million, up 611.9%
y-o-y, while allocated Total WM Liabilities reached GEL 94.9 million, up 64.0%
y-o-y.
Highlights
-- The number of private banking clients grew from 873 at the beginning of
the year to 1,291 at the end of December 2007.
-- Private banking mortgage loan originations of GEL 15.2 million (up 9.4%
y-o-y) during 2007 resulted in mortgage loans outstanding of GEL 22.8
million as at 31 December 2007, up 32.1% y-o-y.
-- Private Banking car loan originations of GEL 2.4 million, down by 15.5%
y-o-y during 2007 resulted in car loans outstanding of GEL 3.0 million
as at 31 December 2007, up 33.1% y-o-y.
Galt & Taggart Securities
Discussion Of Results
The growth of Revenues to GEL 20.9 million during 2007 (up 633.3% y-o-y) was
driven primarily by increases in commissions from brokerage and securities
trading gains. Recurring Operating Costs increased to GEL 5.0 million, largely
reflecting the expansion of Galt & Taggart Ukraine operations. The relatively
high growth rate of the Recurring Operating Costs notwithstanding, PBR increased
619.0% y-o-y to GEL 15.8 million. Earnings grew 502.1% y-o-y, reaching GEL 10.6
million in 2007 and contributing 14.1% to the consolidated Net Income.
Highlights
-- Proprietary book grew 90.8% y-o-y to GEL 14.5 million as at 31 December
2007.
-- Galt & Taggart Securities continued to hold the leading position in
equities trading in Georgia, with an approximately 63% market share in
terms of trading volume.
-- Galt & Taggart Securities Georgia successfully introduced Teliani
Valley, a leading Georgian winery to the Georgian Stock Exchange (GSE:
WINE) and acted as sole placement agent on a GEL 6 million capital
increase for JSC Populi, the leading Georgian supermarket chain.
-- In its first full year of operation, Galt & Taggart Securities Ukraine
ranked #19 with an approximately 1.2% market share by equities trading
volume in Ukraine.
-- Galt & Taggart Securities Ukraine increased its staff to 35 full time
employees.
-- Successfully closed five M&A deals, including the acquisition of UBDP by
Bank of Georgia.
Ukraine
Discussion Of Results
UBDP's Revenue amounted to GEL 7.0 million in Q4 2007. PBR reached GEL 2.2
million, contributing 1.9% to the consolidated PBR of the Bank. Earnings equaled
1.7 million, contributing 2.2% to the consolidated Net Income. Gross Loans stood
at GEL 226.4 million. Client Deposits amounted to GEL 267.8 million. Total UBDP
Assets were GEL 350.3 million, while Total UBDP Liabilities reached GEL 283.4
million.
Highlights
-- Transition Team commenced work, with Sulkhan Gvalia, Deputy CEO and
Chief Risk Officer of Bank of Georgia, seconded to UBDP to spearhead the
integration process.
-- New hires include Giorgi Vakhtangishvili, Deputy CFO of Bank of Georgia
responsible for Ukraine and based in Kiev, and Ognjen Nastic, Head of
IT.
-- On 31 December 2007 UBDP had 40 branches and service centers, over
15,000 retail clients and 804 full-time employees.
-- Acquired real estates for two branches in Kharkiv Oblast and
Ivano-Frankivs Oblast, purchase price for both real estates was
approximately US$1.6 million.
Asset Management
Revenues grew to GEL 23.0 million during 2007. Recurring Operating Costs
increased 177.7% y-o-y to GEL 5.0 million. PBR reached GEL 17.4 million.
Earnings stood at GEL 14.8 million in 2007 and contributed 19.7% to the
consolidated Net Income. Assets grew to GEL 78.6 million as at 31 December 2007,
up 254.0% y-o-y. Liabilities reached GEL 33.5 million by 31 December 2007, up
320.4% y-o-y.
Highlights
-- Bidzina Bejuashvili, formerly a Vice President at JP Morgan responsible
for the equity research coverage of an oil & gas sector in CEEMEA and
LATAM, appointed as Chief Executive Officer of Galt & Taggart Asset
Management ('GTAM').
-- Launched Georgia's first ever Endowment Fund. GTAM will manage the funds
raised by Bank of Georgia and International Charity Fund Iavnana for the
benefit of the Fund.
-- The market capitalisation of Galt & Taggart Capital reached GEL 78.6
million as at 31 December 2007, an increase of 46.4% y-o-y and an
increase of 138.9% since the company was admitted to trading on the
Georgian Stock Exchange in November 2006.
-- Assets Under Management at the Aldagi BCI Pension Fund grew 142.4% y-o-y
to GEL 1.2 million at the end of 2007, while the number of Aldagi BCI
Pension Fund members stood at 3,820 at the end of December 2007, up from
2,154 members at the end of 2006.
Comments
'I am very pleased with Bank of Georgia's 2007 results. The Bank showed
significant growth across almost all business lines. Non-banking revenue and net
income has now become a significant portion of the Bank's revenue and net
Income. Our relentless stride toward achieving excellence in retail banking is
bearing fruit as reflected in the improved operational efficiency and continuous
market share gains across the board', noted Irakli Gilauri, Chief Executive
Officer.
'In 2007 we have continued our pioneering tradition as we completed our first
cross-border acquisition - purchased UBDP in Ukraine, issued the country's first
ever Eurobonds and a non-IFI syndicated loan. Bank of Georgia has demonstrated
its superior debt raising ability, raising a total of US$458.5 million from
international markets despite difficult market conditions in the second half of
the year. Our accomplishments throughout the year have been also recognized
internationally as Euromoney and The Banker named Bank of Georgia as the Best
Bank in the country in 2007. I would like to congratulate our team and our
shareholders with the successful completion of the year', commented Nicholas
Enukidze, Acting Chairman of the Supervisory Board.
SEGMENT RESULTS
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Growth y-o-y 2007(a) Share 2006 Share
Total Operating Income (Revenue)
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking 77.98% 71,519 32.86% 40,184 35.88%
Retail Banking 104.73% 93,255 42.84% 45,549 40.67%
Wealth Management 103.61% 5,128 2.36% 2,518 2.25%
Ukraine NMF 6,981 3.21% n.a. NMF
Galt & Taggart Securities 633.28% 20,906 9.60% 2,851 2.55%
Asset Management 3316.15% 23,029 10.58% 674 0.60%
Insurance -0.22% 5,855 2.69% 5,868 5.24%
Corporate Center/Eliminations -162.63% (8,993) -4.13% 14,360 12.82%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total Operating Income (Revenue) 94.35% 217,679 100.00% 112,005 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total Recurring Operating Costs
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking 70.85% 15,500 17.77% 9,072 17.27%
Retail Banking 49.64% 36,680 42.05% 24,512 46.67%
Wealth Management 76.37% 1,842 2.11% 1,044 1.99%
Ukraine NMF 4,785 5.48% n.a. NMF
Galt & Taggart Securities 658.89% 4,993 5.72% 658 1.25%
Asset Management 177.69% 5,005 5.74% 1,802 3.43%
Insurance -3.06% 6,080 6.97% 6,272 11.94%
Corporate Center/Eliminations 34.85% 12,352 14.16% 9,160 17.44%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total Recurring Operating Costs 66.10% 87,235 100.00% 52,520 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Pre-Bonus Result
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking 79.89% 42,875 35.96% 23,834 51.94%
Retail Banking 154.78% 40,268 33.78% 15,805 34.44%
Wealth Management 163.76% 2,810 2.36% 1,065 2.32%
Ukraine NMF 2,209 1.85% n.a NMF
Galt & Taggart Securities 618.99% 15,768 13.23% 2,193 4.78%
Asset Management NMF 17,412 14.61% (1,128) -2.46%
Insurance -4.26% (386) -0.32% (403) -0.88%
Corporate Center/Eliminations NMF (1,741) -1.46% 4,523 9.86%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Pre-Bonus Result 159.79% 119,215 100.00% 45,889 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Net Income
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking 94.56% 28,763 38.14% 14,784 55.22%
Retail Banking 177.94% 26,951 35.74% 9,697 36.22%
Wealth Management 191.24% 1,930 2.56% 663 2.48%
Ukraine NMF 1,656 2.20% n.a. NMF
Galt & Taggart Securities 502.12% 10,598 14.05% 1,760 6.57%
Asset Management NMF 14,829 19.66% (1,133) -4.23%
Insurance 13.83% (714) -0.95% (627) -2.34%
Corporate Center/Eliminations NMF (8,598) -11.40% 1,628 6.08%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Net Income 181.70% 75,416 100.00% 26,772 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Basic EPS Contribution Growth y-o-y Contribution Share Contribution Share
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking 23.24% 1.10 38.14% 0.90 55.22%
Retail Banking 76.06% 1.03 35.74% 0.59 36.22%
Wealth Management 84.49% 0.07 2.56% 0.04 2.48%
Ukraine NMF 0.06 2.20% n.a. NMF
Galt & Taggart Securities 281.41% 0.41 14.05% 0.11 6.57%
Asset Management NMF 0.57 19.66% (0.07) -4.23%
Insurance -27.90% (0.03) -0.95% (0.04) -2.34%
Corporate Center/Eliminations NMF (0.33) -11.40% 0.10 6.08%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total 78.44% 2.89 100.00% 1.62 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
(a) Q4 2007 results for Ukraine
*T
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Total Assets Growth y-o-y YE 2007 Share YE 2006 Share
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking 165.76% 1,421,870 47.69% 535,026 44.10%
Retail Banking 201.28% 1,125,152 37.74% 373,462 30.78%
Wealth Management 611.95% 84,422 2.83% 11,858 0.98%
Ukraine NMF 350,250 11.75% n.a. NMF
Galt & Taggart Securities 211.32% 62,184 2.09% 19,975 1.65%
Asset Management 254.03% 78,580 2.64% 22,196 1.83%
Insurance 65.45% 63,545 2.13% 38,408 3.17%
Corporate Center/Eliminations NMF (204,639) -6.86% 212,402 17.51%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Assets 145.72% 2,981,364 100.00% 1,213,326 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Loans to Clients, Gross
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking 105.08% 807,168 46.89% 393,596 55.04%
Retail Banking 128.70% 644,045 37.42% 281,612 39.38%
Wealth Management 96.25% 44,214 2.57% 22,529 3.15%
Ukraine NMF 226,393 13.15% n.a. NMF
Galt & Taggart Securities NMF - 0.00% - NMF
Asset Management NMF - 0.00% - NMF
Insurance NMF - 0.00% - NMF
Corporate Center/Eliminations NMF (578) -0.03% 17,324 2.42%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Loans to Clients 140.71% 1,721,242 100.00% 715,061 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Liabilities
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking 149.74% 1,137,858 46.99% 455,616 54.34%
Retail Banking 169.83% 709,797 29.31% 263,057 31.37%
Wealth Management 64.05% 94,867 3.92% 57,829 6.90%
Ukraine NMF 283,457 11.71% n.a. NMF
Galt & Taggart Securities 328.96% 28,490 1.18% 6,642 0.79%
Asset Management 320.38% 33,519 1.38% 7,973 0.95%
Insurance 83.65% 45,324 1.87% 24,680 2.94%
Corporate Center/Eliminations 289.07% 88,206 3.64% 22,671 2.70%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Liabilities 188.80% 2,421,518 100.00% 838,468 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Client Deposits
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking 138.31% 673,686 49.46% 282,688 50.51%
Retail Banking 66.35% 342,118 25.12% 205,662 36.75%
Wealth Management 6.72% 69,833 5.13% 65,436 11.69%
Ukraine NMF 267,758 19.66% n.a. NMF
Galt & Taggart Securities 47.26% 8,630 0.63% 5,860 1.05%
Asset Management NMF - 0.00% - 0.00%
Insurance NMF - 0.00% - 0.00%
Corporate Center/Eliminations NMF - 0.00% - 0.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Client Deposits 143.37% 1,362,025 100.00% 559,646 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Book Value Per Share Growth y-o-y Contribution Share Contribution Share
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking 28.27% 10.46 50.73% 8.15 54.82%
Retail Banking 169.60% 15.30 74.19% 5.67 38.14%
Wealth Management NMF (0.38) -1.87% 0.43 2.92%
Ukraine NMF 2.46 11.93% n.a. NMF
Galt & Taggart Securities 124.79% 1.24 6.02% 0.55 3.71%
Asset Management 183.30% 1.66 8.05% 0.59 3.94%
Insurance 315.09% 0.67 3.25% 0.16 1.09%
Corporate Center/Eliminations 1469.92% (10.78) -52.31% (0.69) -4.62%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Book Value Per Share 38.61% 20.62 100.00% 14.87 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
*T
INCOME STATEMENT DATA
-0-
*T
Period Ended Q4 2007 Q4 2006 Growth(3) 2007 2006 Growth(3)
Consolidated, IFRS Based US$(1) GEL US$(2) GEL Y-O-Y US$(1) GEL US$(2) GEL Y-O-Y
000s, unless otherwise
noted (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest Income 53,119 84,545 22,231 38,094 121.9% 156,913 249,742 58,518 100,271 149.1%
Interest Expense 26,312 41,878 6,857 11,749 256.4% 73,309 116,678 19,579 33,549 247.8%
Net Interest Income 26,807 42,667 15,374 26,344 62.0% 83,604 133,064 38,939 66,722 99.4%
Fee & Commission Income 7,472 11,892 3,119 5,345 122.5% 21,038 33,484 12,096 20,727 61.5%
Fee & Commission
Expense 2,789 4,438 283 485 815.2% 4,776 7,601 1,282 2,196 246.1%
Net Fee & Commission
Income 4,683 7,453 2,836 4,860 53.4% 16,262 25,883 10,815 18,531 39.7%
Income From Documentary
Operations 1,545 2,459 667 1,142 115.3% 4,894 7,789 2,751 4,714 65.2%
Expense On Documentary
Operations 236 375 214 366 2.3% 1,180 1,878 733 1,257 49.4%
Net Income From
Documentary Operations 1,310 2,084 453 776 168.7% 3,714 5,911 2,017 3,457 71.0%
Net Foreign Currency
Related Income 6,052 9,632 2,361 4,046 138.1% 16,468 26,211 6,968 11,939 119.5%
Net Insurance Income 36 58 504 864 -93.3% 3,558 5,662 2,678 4,589 23.4%
Brokerage Income 460 732 544 932 -21.4% 2,267 3,609 1,574 2,698 33.8%
Asset Management Income 1,530 2,435 n.a. n.a. n.a. 1,539 2,450 n.a. n.a. n.a.
Realised Net Investment
Gains (Losses) 73 116 n.a. n.a. n.a. 3,533 5,622 n.a. n.a. n.a.
Other 1,962 3,123 11 18 17068.3% 5,822 9,267 2,375 4,069 127.7%
Net Other Non-Interest
Income 4,061 6,464 1,059 1,814 256.3% 16,719 26,610 6,627 11,356 134.3%
Net Non-Interest Income 16,106 25,634 6,709 11,496 123.0% 53,163 84,615 26,427 45,283 86.9%
Total Operating Income
(Revenue) 42,913 68,300 22,083 37,840 80.5% 136,768 217,679 65,366 112,005 94.3%
Personnel Costs 7,854 12,501 4,139 7,093 76.2% 25,089 39,932 13,032 22,330 78.8%
Selling, General &
Administrative Costs 5,068 8,066 2,665 4,567 76.6% 15,367 24,458 8,951 15,337 59.5%
Procurement &
Operations Support
Expenses 1,564 2,490 1,424 2,440 2.0% 5,800 9,231 3,100 5,312 73.8%
Depreciation &
Amortization 1,964 3,126 1,200 2,057 52.0% 6,180 9,836 3,436 5,887 67.1%
Other Operating
Expenses 1,575 2,507 381 654 283.6% 2,374 3,779 2,132 3,654 3.4%
Total Recurring
Operating Costs 18,026 28,690 9,811 16,810 70.7% 54,810 87,235 30,651 52,520 66.1%
Normalised Net Operating
Income 24,887 39,610 12,273 21,029 88.4% 81,958 130,444 34,715 59,485 119.3%
Net Non-Recurring Income
(Costs) 3,109 4,949 - - NMF(4) 3,023 4,811 - - NMF(4)
Profit Before Provisions
& Bonuses 27,996 44,559 12,273 21,029 111.9% 84,980 135,255 34,715 59,485
127.4%
Net Provision Expense 5,131 8,166 2,171 3,720 119.5% 10,078 16,040 7,934 13,596 18.0%
Pre-Bonus Result 22,866 36,393 10,102 17,309 110.3% 74,902 119,215 26,781 45,889 159.8%
Bonuses & Share Based
Compensation Expenses 3,173 5,050 2,550 4,369 15.6% 16,019 25,496 6,412 10,987 132.1%
Pre-Tax Income 19,693 31,343 7,552 12,940 142.2% 58,883 93,719 20,369 34,903 168.5%
Income Tax Expenses 3,641 5,795 2,025 3,469 67.0% 11,499 18,303 4,745 8,131 125.1%
Net Income 16,052 25,549 5,527 9,470 169.8% 47,384 75,416 15,624 26,772 181.7%
Weighted Average Shares
Outstanding (000s) 26,057 16,506
Fully Diluted Number of
Shares Period End
(000s) 27,250 27,229
EPS (Basic) 1.82 2.89 0.95 1.62 78.44%
EPS (Fully Diluted) 1.74 2.77 0.57 0.98 181.49%
*T
(1 )Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.5916 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 31 December 2007
(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7135 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 31 December 2006
(3)Growth calculations based on GEL values
(4) Not meaningful
BALANCE SHEET DATA
-0-
*T
31-Dec-07 Growth(2) 31-Dec-06
Consolidated, IFRS Based US$(1) GEL Y-O-Y US$(3) GEL
000s, unless otherwise noted (Unaudited) (Unaudited)
Cash & Cash Equivalents 118,401 188,446 74.8% 62,918 107,809
Loans & Advances To Credit Institutions 260,590 414,756 531.2% 38,349 65,711
Mandatory Reserve With NBG 54,148 86,182 40.2% 35,869 61,461
Other Accounts With NBG 56,199 89,446 37777.4% 138 236
Balances With & Loans To Other Banks 150,244 239,128 5858.8% 2,342 4,013
Available-For-Sale Securities 5,833 9,285 67.8% 3,230 5,534
Treasuries & Equivalents 50,111 79,757 -57.4% 109,276 187,244
Other Fixed Income Instruments 95,652 152,240 3397.4% 2,540 4,353
Gross Loans To Clients 1,081,454 1,721,242 140.7% 417,310 715,061
Less: Reserve For Loan Losses (23,574) (37,521) 77.6% (12,330) (21,128)
Net Loans To Clients 1,057,880 1,683,721 142.6% 404,980 693,933
Investments In Other Business Entities, Net 27,077 43,096 3421.8% 714 1,224
Property & Equipment Owned, Net 127,005 202,142 202.5% 39,001 66,828
Intangible Assets Owned, Net 2,370 3,772 19.7% 1,838 3,150
Goodwill 72,001 114,597 184.5% 23,507 40,279
Tax Assets - Current & Deferred 3,769 5,998 NMF(4) - -
Prepayments & Other Assets 52,496 83,553 124.2% 21,745 37,261
Total Assets 1,873,186 2,981,363 145.7% 708,098 1,213,326
Client Deposits 855,758 1,362,025 143.4% 326,610 559,646
Deposits & Loans From Banks 19,290 30,701 3448.6% 505 865
Borrowed Funds 525,248 835,984 274.0% 130,444 223,516
Insurance Related Liabilities 25,968 41,330 436.8% 4,493 7,699
Issued Fixed Income Securities 3,137 4,993 365.3% 626 1,073
Tax Liabilities - Current & Deferred 19,221 30,593 275.9% 4,749 8,138
Accruals & Other Liabilities 72,815 115,892 208.8% 21,903 37,531
Total Liabilities 1,521,436 2,421,518 188.8% 489,331 838,468
Ordinary Shares 17,061 27,155 7.7% 14,708 25,202
Share Premium 196,051 312,035 12.5% 161,914 277,440
Treasury Shares (1,122) (1,786) 77.9% (586) (1,004)
Retained Earnings 39,836 63,403 71.5% 21,578 36,974
Revaluation & Other Reserves 46,211 73,549 1299.1% 3,068 5,257
Net Income For The Period 47,384 75,416 181.7% 15,624 26,772
Shareholders' Equity Excluding Minority Interest 345,421 549,772 48.3% 216,306 370,641
Minority Interest 6,329 10,073 138.9% 2,461 4,217
Total Shareholders' Equity 351,750 559,845 49.3% 218,767 374,858
Total Liabilities & Shareholders' Equity 1,873,186 2,981,363 145.7% 708,098 1,213,326
Shares Outstanding 27,154,918 25,202,009
Book Value Per Share 12.96 20.62 38.61% 8.68 14.87
*T
(1) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.5916 per US$1.00, such exchange rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 31 December 2007
(2) Growth calculations based on GEL values
(3) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.7135 per US$1.00, such exchange rate being the official Georgia
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 31 December 2006
(4) Not meaningful
KEY RATIOS
-0-
*T
2007 2006
Profitability Ratios
ROAA,( 1) 3.8% 3.4%
ROA, 2.5% 2.2%
ROAE,(2) 17.7% 16.5%
ROE, 13.5% 7.1%
Interest Income To Average Interest Earning Assets, (3) 15.4% 16.7%
Cost Of Funds, (4) 8.0% 5.8%
Net Spread (5) 7.4% 10.9%
Net Interest Margin (6) 8.2% 11.1%
Net Interest Margin, Normalised, (7) 8.2% 10.6%
Loan Yield (8) 21.3% 17.4%
Interest Expense To Interest Income 46.7% 33.5%
Net Non-Interest Income To Average Total Assets, 4.2% 5.8%
Net Non-Interest Income To Revenue (9) 38.9% 40.4%
Net Fee And Commission Income To Average Interest Earning Assets, (10) 1.6% 3.1%
Net Fee And Commission Income To Revenue 11.9% 16.5%
Operating Leverage (11) 24.4% 18.8%
Total Operating Income (Revenue)/Total Assets, 7.3% 9.2%
Recurring Earning Power (12) 6.7% 7.7%
Net Income To Revenue 34.6% 23.9%
Efficiency Ratios
Operating Cost To Average Total Assets, (13) 4.3% 6.8%
Cost To Average Total Assets (14) 5.4% 8.2%
Cost / Income (15) 49.6% 56.7%
Cost /Income Normalised (16) 51.8% 56.7%
Cost / Income, Bank of Georgia, Standalone (18) 51.1% 51.2%
Cash Cost/Income(17) 45.1% 51.4%
Total Employee Compensation Expense To Revenue (19) 30.1% 29.7%
Total Employee Compensation Expense To Cost 60.6% 52.5%
Total Employee Compensation Expense To Average Total Assets, 3.3% 4.3%
Liquidity Ratios
Net Loans To Total Assets (20) 56.5% 57.2%
Average Net Loans To Average Total Assets 53.2% 61.3%
Interest Earning Assets To Total Assets 78.2% 78.4%
Average Interest Earning Assets To Average Total Assets 80.9% 77.3%
Liquid Assets To Total Assets (21) 25.4% 25.0%
Net Loans To Client Deposits 123.6% 124.0%
Average Net Loans To Average Client Deposits 125.1% 113.4%
Net Loans To Total Deposits (22) 120.9% 123.8%
Net Loans To Total Liabilities 69.5% 82.8%
Total Deposits To Total Liabilities 57.5% 66.8%
Client Deposits To Total Deposits 97.8% 99.8%
Client Deposits To Total Liabilities 56.2% 66.7%
Current Account Balances To Client Deposits 42.1% 54.4%
Demand Deposits To Client Deposits 6.7% 6.4%
Time Deposits To Client Deposits 51.1% 39.2%
Total Deposits To Total Assets 46.7% 46.2%
Client Deposits To Total Assets 45.7% 46.1%
Client Deposits To Total Equity (times) (23) 2.43 1.49
Due From Banks / Due To Banks (24) 1351% 7597%
Leverage (times) (25) 4.3 2.2
*T
-0-
*T
2007 2006
Asset Quality
NPLs (in GEL) (26) 25,325 16,266
NPLs to Gross Loans (27) 1.5% 2.3%
Cost of Risk, Annualised (28) 1.5% 2.7%
Cost of Risk, Normalised (29) 1.5% 2.2%
Reserves for Loan Losses to Gross Loans (30) 2.2% 3.0%
NPL Coverage ratio (31) 148.2% 129.9%
Equity to Average Net Loans to Clients 52.3% 78.8%
Total Equity To Net Loans 33.3% 54.0%
Capital Adequacy:
Equity To Total Assets 18.8% 30.90%
BIS Tier I Capital Adequacy Ratio (32) 21.4% 44.90%
BIS Total Capital Adequacy Ratio (33) 20.8% 41.80%
NBG Tier I Capital Adequacy Ratio (34) 13.2% 23.20%
NBG Total Capital Adequacy Ratio (35) 13.1% 28.50%
Per Share Values:
Basic EPS (GEL) (36) 2.89 1.62
Basic EPS (US$) 1.82 0.95
Fully Diluted EPS (GEL) (37) 2.77 0.98
Fully Diluted EPS (US$) 1.74 0.57
Book Value Per Share (GEL) (38) 20.62 14.87
Book Value Per Share (US$) 12.96 8.68
Ordinary Shares Outstanding - Weighted Average, Basic 26,057,022 16,505,701
Ordinary Shares Outstanding - Period End 27,154,918 25,202,009
Ordinary Shares Outstanding - Fully Diluted 27,249,918 27,229,418
Selected Operating Data:
Full Time Employees (FTE) 4,459 2,226
FTEs, Bank of Georgia Standalone 2,692 1,601
Total Assets per FTE (GEL Thousands) 669 558
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands) 1,107 776
Branches 117 100
ATMs 250 124
Plastic Cards (Thousands) 647 286
POS Terminals 1,594 471
*T
NOTES TO KEY RATIOS
-0-
*T
1 Return On Average Total Assets (ROAA) equals Net Income of the period divided by quarterly Average Total Assets
for the same period;
2 Return On Average Total Equity (ROAE) equals Net Income of the period divided by quarterly Average Total Equity
for the same period;
3 Average Interest Earning Assets are calculated on a quarterly basis; Interest Earning Assets include: Loans And
Advances To Credit Institutions, Treasuries And Equivalents, Other Fixed Income Instruments and Net Loans to
Clients;
4 Cost Of Funds equals Interest Expense of the period divided by quarterly Average Interest Bearing Liabilities;
Interest Bearing Liabilities Include: Client Deposits, Deposits And Loans From Banks, Borrowed Funds and Issued
Fixed Income Securities;
5 Net Spread equals Interest Income To Average Interest Earning Assets less Cost Of Funds;
6 Net Interest Margin equals Net Interest Income of the period divided by quarterly Average Interest Earning Assets
of the same period;
7 Net Interest Margin Normalised equals Net Interest Income of the period, less provisions for the interest income
generated by non-performing loans through the date of their write-offs, plus provisions for (less recovery of)
other assets, divided by quarterly average Gross Loans To Clients over the same period.
8 Loan Yield equals Interest Income, less Net Provision Expense divided by quarterly Average Gross Loans To
Clients;
9 Revenue equals Total Operating Income;
10 Net Fee And Commission Income includes Net Income From Documentary Operations of the period;
11 Operating Leverage equals percentage change in Revenue less percentage change in Total Costs;
12 Recurring Earning Power equals Profit Before Provisions and Bonuses of the period divided by average Total Assets
of the same period;
13 Operating Cost equals Total Recurring Operating Costs;
14 Cost includes Total Recurring Operating Costs, Net Non-Recurring Costs (Income) and Bonuses & Share Based
Compensation Expenses;
15 Cost/Income Ratio equals Costs of the period divided by Total Operating Income (Revenue);
16 Cost/Income Normalised equals Recurring Operating Costs plus Bonuses & Share Based Compensation Expenses divided
by Total Operating Income (Revenue) for the same period.
17 Cash Cost equals Cost minus Depreciation & Amortisation;
18 Cost/Income, Bank of Georgia, standalone, equals to non-consolidated Total Costs of the bank of the period
divided by non-consolidated Revenue of the bank of the same period;
19 Total Employee Compensation Expense includes Personnel Costs and Bonuses & Share-Based Compensation Expenses;
20 Net Loans equal Net Loans To Clients;
21 Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG, Balances With And Loans To Other
Banks, Treasuries And Equivalents and Other Fixed Income Securities as of the period end and are divided by
Total Assets as of the same date;
22 Total Deposits include Client Deposits and Deposits And Loans from Banks;
23 Total Equity equals Total Shareholders' Equity;
24 Due From Banks/Due To Banks equals Loans And Advances To Credit Institutions divided by Deposits And Loans From
Banks;
25 Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date;
26 NPLs (in GEL) equals total gross non-performing loans as of the period end; non-performing loans are loans that
have debts in arrears for more than 90 calendar days;
27 Gross Loans equals Gross Loans To Clients;
28 Cost Of Risk equals Net Provision For Loan Losses of the period, less recovery of other assets, divided by
quarterly average Gross Loans To Clients over the same period;
29 Cost of Risk Normalised equals Net Provision For Loan Losses of the period, less provisions for the interest
income generated by non-performing loans through the date of their write-off, plus provisions for (less recovery
of) other assets, divided by quarterly average Gross Loans to Clients over the same period.
30 Reserve For Loan Losses To Gross Loans To Clients equals reserve for loan losses as of the period end divided by
gross loans to clients as of the same date;
31 NPL Coverage Ratio equals Reserve For Loan losses as of the period end divided by NPLs as of the same date;
32 BIS Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total Risk Weighted
Assets as of the same date, both calculated in accordance with the requirements of Basel Capital Accord I;
33 BIS Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total Risk Weighted Assets
as of the same date, both calculated in accordance with the requirements of Basel Capital Accord I;
34 NBG Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total Risk Weighted
Assets as of the same date, both calculated in accordance with the requirements the National Bank of Georgia;
35 NBG Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total Risk Weighted Assets
as of the same date, both calculated in accordance with the requirements of the National Bank of Georgia;
36 Basic EPS equals Net Income of the period divided by the weighted average number of outstanding Ordinary Shares
over the same period;
37 Fully Diluted EPS equals Net Income of the period divided by the number of outstanding Ordinary Shares as of the
period end plus number of ordinary shares in contingent liabilities;
38 Book Value Per Share equals Total Equity plus Treasury Shares, divided by the total number of outstanding
Ordinary Shares.
*T
About Bank of Georgia
Bank of Georgia, the leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with 35.4% market share by total assets (all data according to the NBG
as of December 31, 2007). The major component of the Galt & Taggart Index, the
bank has 117 branches and over 705,000 retail and more than 64,000 corporate
current accounts. The bank offers a full range of retail banking and corporate
and investment banking services to its customers across Georgia. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary, Aldagi BCI, as well as asset & wealth management
services.
Bank of Georgia has, as of the date hereof, the following credit ratings:
-0-
*T
Standard & Poor's 'B+/B' Stable
Moody's 'B3/NP' (FC) & 'Ba1/NP' (LC) Stable
FitchRatings 'B+/B' Stable
*T
For further information, please visit www.bog.ge/ir or contact:
-0-
*T
Nicholas Enukidze Irakli Gilauri Macca Ekizashvili
Acting Chairman of the Supervisory Board Chief Executive Officer Head of Investor Relations
+995 32 444 800 +995 32 444 109 +995 32 444 256
nenukidze@bog.ge igilauri@bog.ge ir@bog.ge
*T
This news report is presented for general informational purposes only and should
not be construed as an offer to sell or the solicitation of an offer to buy any
securities. Certain statements in this news report are forward-looking
statements and, as such, are based on the management's current expectations and
are subject to uncertainty and changes in circumstances.
The financial information as of 2007 and 2006 contained in this news report is
unaudited and reflects the best estimates of management. The bank's actual
results may differ significantly from the amounts reflected herein as a result
of various factors.
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