armenian banking sector overview - kpmg...basis of preparation this report summarizes and analyzes...

Georgian Banking Sector Overview

2018 3rd Quarter Results

November, 2018

2© 2018 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of

independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights

reserved.

Contents

Page

Basis of Preparation

3

At a Glance 4

General Highlights 5

Sector Highlights 6

Bank Profiles 7

Appendix 1: Shareholding Structure & General Information 22

Appendix 2: Sector Insights 24

Appendix 3: Key Financial Indicators 26

Appendix 4: Bank Contact Details 30

Glossary of Terms 32

Basis of Preparation

This report summarizes and analyzes the financial results of the

15 commercial banks of Georgia for the 3rd quarter of 2018, as

well as provides some insights into the recent developments in

the sector.

The financial information has been obtained from the published

interim reports for the 3rd quarter of 2018. The banks are listed

in the alphabetical order throughout the publication. We have

used simple headline numbers in our analysis unless stated

otherwise; each bank has its own way of reporting performance

and this has proved to be the most consistent method of

presenting their results.

All the key ratios are calculated based on the obtained data

unless stated otherwise.

The general information, such as the number of branches,

employee headcount, etc., are mainly taken from the Notes to

the Financial Statements prepared by the banks. The official

websites of the banks serve as the only alternative source,

however they are not always properly updated. Due to this, the

figures presented may not necessarily be as of 30 September

2018. There may be figures more up to date or of an earlier date

depending on the latest available information published by the

banks.

The main source of news is the official websites of the banks

and the National Bank of Georgia, as well as the official press

releases published by various news agencies.

© 2018 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of


reserved.



reserved.

At a Glance

Key Financial Indicators of the Georgian Banking Sector (in million GEL)*

* The difference between the table and other information provided in the report might be caused by the different bases of preparation of financial

information by the National Bank of Georgia.

** The indicators of the financial position are as of the last day of the corresponding period

*** The change for the financial performance indicators is for the periods of the first 9 months of the years

**** The figure does not contain bank deposits

***** The total income consists of interest income and fee and commission income

The banking system remains the biggest part of the Georgian financial market. As of 30 September 2018, there were

15 commercial banks operating in Georgia, while the number of banks was 16 in the same period of 2017.

Key Financial

indicators**2018 Q 3 2017 2017 Q 3

30.09.2018/

31.12.2017

30.09.2018/

30.09.2017***

Assets 37,782 34,594 32,313 9.22% 16.93%

Loan portfolio 24,967 22,301 20,324 11.96% 22.85%

Liabilities 33,042 30,159 28,100 9.56% 17.59%

Deposits**** 21,889 19,782 18,349 10.65% 19.29%

Total Equity 4,740 4,435 4,212 6.89% 12.53%

Share Capital 986 929 921 6.20% 7.05%

Total Income***** 2,706 3,189 2,314 - 16.96%

Interest income 2,417 2,762 1,996 - 21.06%

Provision Expenses 337 201 115 - 192.91%

Net profit after taxes 602 870 632 - (4.67%)

Top Ten Banks of the Georgian Banking Sector as of 30 September 2018 (in thousand GEL)

5.61%

6.42%

5.20%

5.40%

5.60%

5.80%

6.00%

6.20%

6.40%

6.60%

2018 Q3 2017 Q3

Non-performing loan rates for the Georgian banking sector

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Assets LoansTotal Equity Total Income (right axis) Net profit after taxes (right axis)



reserved.

General highlights In July 2018 JSC International Bank of Azerbaijan (IBAR) - Georgia has taken decision on cancellation

of banking license and transformation into non-bank organization.

In May 2018 demerger of BGEO Group took place. Following the demerger, Bank of Georgia Group

(banking business) and Georgia Capital (investment business) started operating separately, leaving

BOG, Galt&Taggart and BNB (Bank in Belarus) operating as Bank of Georgia Group.

A member of supervisory board of Liberty Bank – Irakli Rukhadze announced that Liberty Bank is

planning on acquiring Cartu Bank. Timing and other details of acquisition are yet unknown.

Since June 2018 Liberty Bank is serving corporate clients providing the operational services, payroll

programs, deposits and certificates, business cards and remote channels services. Opening a

corporate account is available at any of 181 service centers and is handled by a banker who is

available to corporate clients.

According to the new National Bank of Georgia (NBG) regulation from September 2018 commercial

banks are obliged to report their leverage coefficients to NBG monthly. The aim of this rule is

prevention of accumulation of excess leverage in the banking sector.

By the end of 2018 NBG plans to enforce new regulations by introducing new crediting restrictions:

a. 15-year limit on mortgage loans, b. 10-year limit on consumer loans secured by real estate, c. 6-

year limit on auto loans, and d. 4-year limit on all other types of loans. Additionally,

financial institutions will be obliged to follow certain required procedures to examine solvency of

their clients prior to issuing loans. The same regulation introduces limits on PTI and LTV coefficients.

In September 2018 NBG approved Corporate Governance for commercial banks. The code is based

on international practice, including guide on the governance from Basel Committee on Banking

Supervision, principles of corporate governance of the Organization for Economic Cooperation and

Development (OECD), acting directives of the EU and various researches. Banks have to bring

membership of their supervisory councils and subordinated committees in compliance with

requirements of the code no later than 31 December 2019. By 1June 2019, they have to bring their

charters and related policy documents in compliance with the code.

In October 2018 NBG and China Banking and Insurance Regulatory Commission have signed a

memorandum on cooperation. Under the memorandum, the parties have agreed to ensure

information exchange on permanent basis and tight cooperation in the banking sector supervision

field.

In May 2018 TBC Bank launched its own cloud-based, digital-only neobank - SPACE. The application

offers various online banking products, such as remote account opening, money transfer, bill

payments, etc.

In October 2018 TBC Bank bought BONACO MFO. The portfolio was purchased via the auction held

on October 29. BONACO MFO had been in liquidation according to NBG’s decree.

Sources: Caucasus Business week, www.bfm.ge



reserved.

Loan portfolio/non-bank deposits

1.13

ROA2.4%

ROE18.4%

Loan portfolio/

assets65.7%

Loan loss reserve/

loans5.2%

Sector HighlightsCompared with the same period of 2017, the banking system assets

grew by 16.9% and reached GEL 37.8 billion as of 30 September 2018.

For the 12 months period ended 30 September 2018 the return on assets

(ROA) for the Georgian banking system was 2.4%, while the same

indicator amounted to 2.0% in the same period of 2017.

As of 30 September 2018 TBC Bank held the largest part of the total

banking sector’s assets, while Bank of Georgia was the second largest.

As of 30 September 2018 the total amount of outstanding loans grew by

22.9% compared with the same period of 2017 and reached GEL 25.0

billion.

As of 30 September 2018 the ratio of customer loan portfolio to total

assets for the Georgian banking system was 65.7%, while the same ratio

was around 62.7% as of 30 September 2017.

For the end of Q3 2018 the loan provision expenses of the Georgian

banking sector increased by 192.9% compared with the same period of

the 2017, and amounted to GEL 0.34 billion. From 30 September 2017

to 30 September 2018 the ratio of loan loss reserves to total loan

portfolio decreased from 5.6% to 5.2%.

The balance of non-bank deposits as of 30 September 2018 increased by

19.3% compared with the same date of 2017, reaching GEL 21.9 billion.

As of 30 September 2018 the loan portfolio/ non-bank deposit ratio for

the Georgian banking system was 1.13. The ratio was lower 1.10 as of

30 September 2017.

As of 30 September 2018 the total equity of banks reached GEL 4.7

billion, showing a 12.5% increase compared to the same figure as of 30

September 2017.

For the 12 months period ended 30 September 2018 the return on equity

(ROE)* for the Georgian banking system was 18.4%, while ROE for the

same period of 2017 was 14.5%. The ratio of equity to assets as of the

30 September 2018 was 12.6%, while the same ratio was around 13.0%

as of 30 September 2017.

For the Q3 of 2018, the banking system had total income (interest

income plus fee and commission income) of GEL 2.7 billion, which

exceeded the total income for the same period of 2017 by 17.0%. The

net profit of the banks for the period was GEL 0.6 billion, which is 4.7%

lower compared with the same period of 2017.

16.9%

Assets

22.9%

Loans

19.3%

Non-bank

deposits

Total income

17.0%

(4.7%)

Net profit

192.9%

Loan provision expenses

Total Equity

12.5%



reserved.

Amount , GEL, thousands Change**

2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 13,258,845 12,620,716 10,762,515 35.09% 2 5.06% 23.19%

Loan Portfolio 8,264,305 7,720,118 6,451,737 33.10% 2 7.05% 28.09%

Liabilities 11,940,230 11,138,797 9,513,969 36.14% 2 7.19% 25.50%

Deposits 7,554,803 7,123,866 6,148,307 34.51% 2 6.05% 22.88%

Total Equity 1,318,615 1,481,919 1,248,546 27.82% 2 (11.02%) 5.61%

Share Capital 26,636 27,821 25,911 2.70% 11 (4.26%) 2.80%

Total

Income****1,045,940 1,296,385 849,335 38.65% 2 23.15%

Interest

Income891,445 1,105,385 720,137 36.89% 1 23.79%

Net Profit/Loss

after Taxes183,474 338,907 286,710 30.46% 2 (36.01%)

Bank ProfilesBank of GeorgiaKey Financial Indicators*

Key RatiosRankings

1st

rank by the Interest income

2nd

rank by the Assets

2nd

rank by the Loan portfolio

2nd

rank by the Liabilities

2nd

rank by the Deposits

2nd

rank by the Equity

2nd

rank by the Net profit after tax

2nd

rank by the Total income

July August September

* The indicators of the financial position are as of the last day of the corresponding period.

** The change for the financial performance indicators is for the periods of the first 9 months of the years

*** The audited financial statements of the bank is the source of the 2017 year end information, while 2017 Q3 and 2018 Q3 results are based on the NBG data

**** The total income consists of interest income and fee and commission income

Key Indicators of Financial Performance,

GEL, thousands

Key Indicators of Financial Position,

GEL, thousands

JSC Bank of Georgia has received a

Digital Bank of distinction reward from

Global Finance.

JSC Bank of Georgia presented its program of open

banking development, BOG Fintech, and the

corresponding web site (www.fintech.ge).

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Assets LoanPortfolio

Liabilities Deposits TotalEquity

ShareCapital

As of 30.09.2018

As of 30.09.2017

9.95%

17.57%

15.89%

11.03%

5.26%

1.97%

18.68%

4.90%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE

Non PerformingLoans/Total Loans

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Total Income Interest Income Net Profit/Lossafter Taxes

As of 30.09.2018As of 30.09.2017

BOG declared about attraction of 5-year loan of

GEL 160 million from the Netherlands’

development bank FMO

https://urldefense.proofpoint.com/v2/url?u=http-3A__www.fintech.ge&d=DwMFaQ&c=vgc7_vOYmgImobMVdyKsCY1rdGZhhtCa2JetijQZAG0&r=YwHrmNm1n8VGB5r4bfgvB1Ri9Y8qVVBKGAKeuCf7d3o&m=xTFGYZNQ6WsWmV5otZiIRiICocpxIcVF5_l0KNodfUU&s=fTpy8c3zIML7-O6ptKzh2NO4gmcj3ZL3iQIUtdzixxQ&e=



reserved.

Bank Profiles (continued)Basis BankKey Financial Indicators*

Key RatiosRankings

Among the top ten banks by all financial

indicators, except share capital







GEL, thousands


GEL, thousands


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 1,322,739 1,231,599 1,205,898 3.50% 6 7.40% 9.69%

Loan Portfolio 881,716 774,251 702,797 3.53% 6 13.88% 25.46%

Liabilities 1,116,651 1,018,108 1,023,200 3.38% 6 9.68% 9.13%

Deposits 657,913 677,820 670,587 3.01% 6 (2.94%) (1.89%)

Total Equity 206,088 213,491 182,698 4.35% 5 (3.47%) 12.80%

Share Capital 16,138 16,057 16,097 1.64% 14 0.50% 0.25%

Total

Income****77,510 83,601 59,231 2.86% 6 30.86%

Interest

Income69,899 78,628 54,695 2.89% 6 27.80%

Net Profit/Loss

after Taxes23,436 29,889 17,186 3.89% 5 36.37%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

15.58%

22.22%

18.78%

17.63%

4.37%

2.62%

15.97%

4.36%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


Basis Bank, together with UnionPay announced an

introduction of innovative product – Diamond

Premium Card.

0

50,000

100,000

150,000

200,000

250,000

300,000

Total Income Interest Income Net Profit/Loss afterTaxes

As of 30.09.2018

As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 1,178,911 1,302,141 1,234,854 3.12% 7 (9.46%) (4.53%)

Loan Portfolio 815,151 869,723 810,508 3.26% 7 (6.27%) 0.57%

Liabilities 959,260 960,435 1,030,827 2.90% 7 (0.12%) (6.94%)

Deposits 696,261 690,657 664,770 3.18% 5 0.81% 4.74%

Total Equity 219,651 341,706 204,027 4.63% 4 (35.72%) 7.66%

Share Capital 114,430 114,430 114,430 11.60% 3 0.00% 0.00%

Total

Income****61,900 106,072 63,946 2.29% 9 (3.20%)

Interest

Income58,306 99,520 60,201 2.41% 8 (3.15%)

Net Profit/Loss

after Taxes10,572 49,718 11,766 1.76% 8 (10.15%)

Bank Profiles (continued)Cartu BankKey Financial Indicators*

Key Ratios Rankings







GEL, thousands


GEL, thousands

Rankings

3rd

rank by the Share Capital

Among the top ten banks by all financial indicators

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

0

50,000

100,000

150,000

200,000

250,000

300,000

Total Income Interest Income Net Profit/ lossafter Taxes

As of 30.09.2018As of 30.09.2017

18.63%

28.52%

31.33%

14.88%

4.21%

1.23%

6.25%

35.20%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE




reserved.


GEL, thousands


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 790,064 614,692 638,131 2.09% 9 28.53% 23.81%

Loan Portfolio 644,493 522,669 482,203 2.58% 9 23.31% 33.66%

Liabilities 676,811 494,222 526,794 2.05% 9 36.94% 28.48%

Deposits 17,474 - - 0.08% 15 N/A

Total Equity 113,253 120,470 111,337 2.39% 9 (5.99%) 1.72%

Share Capital 4,400 4,400 4,400 0.45% 15 0.00% 0.00%

Total

Income****126,909 150,402 111,764 4.69% 4 13.55%

Interest Income98,263 130,287 82,505 4.07% 4 19.10%

Net Profit/Loss

after Taxes7,633 20,131 10,155 1.27% 10 (24.83%)

Bank Profiles (continued)Credo BankKey Financial Indicators*

Key RatiosRankings

Among the top ten banks by all financial

indicators, except deposits and share capital.







GEL, thousands

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018

As of 30.09.2017

14.33%

9.40%

14.10%

12.85%

10.77%

1.43%

8.70%

1.39%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 305,632 295,354 288,569 0.81% 12 3.48% 5.91%

Loan Portfolio 228,789 225,090 221,249 0.92% 11 1.64% 3.41%

Liabilities 262,118 254,300 253,213 0.79% 11 3.07% 3.52%

Deposits 122,585 97,929 87,980 0.56% 9 25.18% 39.33%

Total Equity 43,513 41,054 35,356 0.92% 13 5.99% 23.07%

Share Capital 25,643 20,214 20,214 2.60% 12 26.86% 26.86%

Total

Income****48,923 61,421 45,368 1.81% 10 7.84%

Interest

Income43,687 59,862 41,179 1.81% 10 6.09%

Net Profit/Loss

after Taxes1,725 3,524 1,330 0.29% 13 29.67%

Bank Profiles (continued)Finca BankKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

Rankings

9th


Below the top ten banks by other indicators

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018

As of 30.09.2017

14.24%

23.47%

18.79%

15.43%

12.21%

0.78%

5.76%

4.01%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 450,261 427,661 377,675 1.19% 10 5.28% 19.22%

Loan Portfolio 355,227 333,162 291,234 1.42% 10 6.62% 21.97%

Liabilities 364,989 356,391 317,783 1.10% 10 2.41% 14.85%

Deposits 74,586 61,683 75,352 0.34% 11 20.92% (1.02%)

Total Equity 85,272 71,270 59,892 1.80% 11 19.65% 42.38%

Share Capital 62,000 48,000 48,000 6.29% 7 29.17% 29.17%

Total

Income****28,115 36,583 26,735 1.04% 11 5.16%

Interest

Income26,466 32,227 22,386 1.10% 11 18.23%

Net Profit/Loss

after Taxes7,662 11,857 9,206 1.27% 9 (16.77%)

Bank Profiles (continued)Halyk BankKey Financial Indicators*

Key Ratios Rankings







GEL, thousands


GEL, thousands

Rankings

7th


9th

rank by profit


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018

As of 30.09.2017

18.94%

17.58%

21.69%

17.18%

5.43%

2.34%

13.26%

5.81%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


Fitch Ratings declared about revision of outlook for Halyk Bank Georgia

to “Positive” from “Stable”. The bank’s rating was affirmed at “BB-”.

0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018

As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 247,973 237,574 272,880 0.66% 13 4.38% (9.13%)

Loan Portfolio 142,194 158,515 120,070 0.57% 13 (10.30%) 18.43%

Liabilities 174,580 200,711 239,219 0.53% 13 (13.02%) (27.02%)

Deposits 42,835 74,023 88,869 0.20% 13 (42.13%) (51.80%)

Total Equity 73,393 36,863 33,662 1.55% 12 99.10% 118.03%

Share Capital 69,162 30,000 30,000 7.01% 6 130.54% 130.54%

Total

Income****11,421 19,820 16,833 0.42% 13 (32.15%)

Interest

Income10,495 18,850 15,359 0.43% 13 (31.67%)

Net Profit/Loss

after Taxes102 1,524 2,612 0.02% 14 (96.09%)

Bank Profiles (continued)Isbank GeorgiaKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings

6th



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

29.60%

28.18%

27.65%

26.53%

3.43%

0.06%

0.30%

3.52%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 1,854,690 1,703,477 1,720,975 4.91% 3 8.88% 7.77%

Loan Portfolio 1,107,686 866,551 898,664 4.44% 3 27.83% 23.26%

Liabilities 1,592,978 1,486,144 1,512,603 4.82% 3 7.19% 5.31%

Deposits 1,497,795 1,346,288 1,283,666 6.84% 3 11.25% 16.68%

Total Equity 261,712 217,333 208,372 5.52% 3 20.42% 25.60%

Share Capital 44,536 50,090 43,992 4.52% 8 (11.09%) 1.24%

Total

Income****262,175 322,194 248,736 9.69% 3 5.40%

Interest

Income223,233 295,309 191,584 9.24% 3 16.52%

Net Profit/Loss

after Taxes36,204 53,014 34,538 6.01% 3 4.82%

Bank Profiles (continued)Liberty BankKey Financial Indicators*

Key Ratios Rankings







GEL, thousands


GEL, thousands

3rd

rank by the Assets

3rd

rank by the Loan Portfolio

3rd


3rd


3rd

rank by the Total Equity

3rd

rank by the Total Income

3rd

rank by the Interest Income

3rd

rank by the Net Profit/Loss after Taxes

JSC Liberty Bank made significant change and rebranded

its logo. BPI British and Georgian designers have worked

on the project.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018

As of 30.09.2017

14.11%

40.79%

16.86%

13.61%

9.61%

2.62%

19.57%

10.73%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018As of 30.09.2017



reserved.


GEL, thousands


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 316,139 272,804 250,923 0.84% 11 15.89% 25.99%

Loan Portfolio 149,993 114,777 111,850 0.60% 12 30.68% 34.10%

Liabilities 207,534 165,997 145,591 0.63% 12 25.02% 42.55%

Deposits 82,410 58,181 46,725 0.38% 10 41.64% 76.37%

Total Equity 108,606 106,807 105,332 2.29% 10 1.68% 3.11%

Share Capital 103,000 103,000 103,000 10.44% 4 0.00% 0.00%

Total

Income****15,347 20,111 14,357 0.57% 12 6.89%

Interest

Income15,160 19,442 14,253 0.63% 12 6.36%

Net Profit/Loss

after Taxes3,393 3,453 4,126 0.56% 11 (17.77%)

Bank Profiles (continued)Pasha Bank GeorgiaKey Financial Indicators*

Key RatiosRankings







GEL, thousands

Rankings

4th



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

34.35%

26.09%

31.52%

30.41%

5.38%

1.58%

4.23%

0.04%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018

As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 1,408,654 1,358,538 1,270,169 3.73% 5 3.69% 10.90%

Loan Portfolio 1,009,705 1,005,722 932,916 4.04% 5 0.40% 8.23%

Liabilities 1,238,426 1,160,434 1,098,132 3.75% 5 6.72% 12.78%

Deposits 600,922 629,059 630,025 2.75% 8 (4.47%) (4.62%)

Total Equity 170,228 198,104 172,036 3.59% 7 (14.07%) (1.05%)

Share Capital 88,915 88,915 88,915 9.02% 5 (0.00%) 0.00%

Total

Income****71,370 95,062 67,460 2.64% 7 5.80%

Interest

Income63,297 84,858 60,204 2.62% 7 5.14%

Net Profit/Loss

after Taxes22,188 22,661 13,713 3.68% 6 61.81%

Bank Profiles (continued)Procredit BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

12.08%

24.80%

17.92%

13.06%

4.14%

2.28%

15.74%

2.64%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018

As of 30.09.2017



reserved.

Rankings

9th




2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 71,109 58,567 44,573 0.19% 15 21.42% 59.54%

Loan Portfolio 17,699 7,936 6,055 0.07% 15 123.03% 192.32%

Liabilities 35,196 25,509 17,139 0.11% 15 37.97% 105.35%

Deposits 20,143 15,462 14,997 0.09% 14 30.27% 34.31%

Total Equity 35,914 33,058 27,433 0.76% 15 8.64% 30.91%

Share Capital 40,000 30,000 30,000 4.06% 9 33.33% 33.33%

Total

Income****3,475 3,215 2,624 0.13% 15 32.41%

Interest

Income2,384 2,810 2,265 0.10% 15 5.26%

Net Profit/Loss

after Taxes(1,363) (4,220) (339) -0.23% 15 302.30%

Bank Profiles (continued)Silk Road BankKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

* ROE and ROA are negative for Silk Road Bank - (5.91%) and (3.03%) respectively.

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

50.50%

41.70%

64.62%

49.55%

4.23%

16.95%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA*

ROE*


-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018

As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 14,060,800 12,937,198 11,809,595 37.22% 1 8.69% 19.06%

Loan Portfolio 9,589,559 8,553,217 7,772,774 38.41% 1 12.12% 23.37%

Liabilities 12,325,927 11,088,836 10,320,265 37.30% 1 11.16% 19.43%

Deposits 8,826,511 7,835,323 7,075,189 40.32% 1 12.65% 24.75%

Total Equity 1,734,874 1,848,362 1,489,330 36.60% 1 (6.14%) 16.49%

Share Capital 21,016 21,014 21,016 2.13% 13 0.01% 0.00%

Total

Income****1,047,864 1,226,461 834,690 38.72% 1 25.54%

Interest

Income832,787 1,033,709 659,462 34.46% 2 26.28%

Net Profit/Loss

after Taxes261,928 362,781 213,511 43.49% 1 22.68%

Bank Profiles (continued)TBCKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

Rankings

1st

rank by the Assets

1st

rank by the Loan portfolio

1st


1st


1st

rank by the Total equity

1st

rank by the Total income

1st

rank by the Net profit

2nd

rank by the Interest income

13th

rank by the Share capital

from

JSC TBC Bank expands on Azerbaijan

Market buying Nikoil Bank’s share.

JSC TBC Bank has been named as the leading partner

bank in Georgia for the fourth time by Asian

Development Bank in trade finance. in trade finance.

JSC TBC Bank has received a Commerzbank Award

from one of Germany’s largest banks for highly qualified

cooperation and outstanding partnership in the field of

trade financing.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

12.34%

20.49%

16.42%

12.84%

4.91%

2.72%

21.01%

3.79%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000


As of 30.09.2018

As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 898,646 838,751 741,497 2.38% 8 7.14% 21.19%

Loan Portfolio 662,114 594,548 516,846 2.65% 8 11.36% 28.11%

Liabilities 768,010 708,331 632,300 2.32% 8 8.43% 21.46%

Deposits 627,962 579,626 521,181 2.87% 7 8.34% 20.49%

Total Equity 130,635 130,420 109,198 2.76% 8 0.17% 19.63%

Share Capital 121,372 121,372 121,372 12.31% 2 0.00% 0.00%

Total

Income****62,290 66,451 50,506 2.30% 8 23.33%

Interest

Income55,566 63,080 44,110 2.30% 9 25.97%

Net Profit/Loss

after Taxes15,847 11,922 10,670 2.63% 7 48.51%

Bank Profiles (continued)Tera BankKey Financial Indicators*

Key RatiosRankings







GEL, thousands


GEL, thousands

Rankings

2nd



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

14.54%

22.19%

17.12%

12.04%

4.71%

2.50%

17.31%

8.36%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018

As of 30.09.2017



reserved.


2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 1,526,637 1,596,192 1,525,263 4.04% 4 (4.36%) 0.09%

Loan Portfolio 1,081,358 981,802 957,986 4.33% 4 10.14% 12.88%

Liabilities 1,330,108 1,368,387 1,360,780 4.03% 4 (2.80%) (2.25%)

Deposits 1,021,543 895,757 962,961 4.67% 4 14.04% 6.08%

Total Equity 196,529 227,805 164,483 4.15% 6 (13.73%) 19.48%

Share Capital 209,008 209,008 209,008 21.19% 1 0.00% 0.00%

Total

Income****107,258 129,442 102,192 3.96% 5 4.96%

Interest

Income87,789 122,902 84,916 3.63% 5 3.38%

Net Profit/Loss

after Taxes27,586 32,369 15,760 4.58% 4 75.04%

Bank Profiles (continued)VTB Bank-GeorgiaKey Financial Indicators*

Key Ratios







GEL, thousands


GEL, thousands

Rankings

1st



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018As of 30.09.2017

12.87%

23.38%

17.56%

13.86%

3.66%

2.38%

19.84%

5.47%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net InterestMargin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018As of 30.09.2017



reserved.

Bank Profiles (continued)Ziraat Bank-GeorgiaKey Financial Indicators*

Key RatiosRankings



GEL, thousands


GEL, thousands

Rankings

10th








2018 Q 3*** 2017*** 2017 Q 3*** Share in total

sector, %Rank

30.09.18/ 30.09.18/

31.12.17 30.09.17

Assets 91,221 93,650 77,177 0.24% 14 (2.59%) 18.20%

Loan Portfolio 22,874 18,843 19,032 0.09% 14 21.39% 20.18%

Liabilities 49,269 62,813 54,075 0.15% 14 (21.56%) (8.89%)

Deposits 45,424 61,631 46,419 0.21% 12 (26.30%) (2.14%)

Total Equity 41,952 30,837 23,101 0.89% 14 36.05% 81.60%

Share Capital 40,000 30,000 22,268 4.06% 10 0.00% 0.00%

Total

Income****4,244 4,525 1,954 0.16% 14 117.19%

Interest

Income3,494 3,408 1,567 0.14% 14 122.96%

Net Profit/Loss

after Taxes1,951 1,479 828 0.32% 12 135.55%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000



ShareCapital

As of 30.09.2018

As of 30.09.2017

45.99%

69.40%

65.23%

64.14%

5.20%

3.06%

7.35%

3.87%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000

300,000


As of 30.09.2018As of 30.09.2017



reserved.

Appendix 1 Shareholding Structure & General Information

JSC Halyk Bank Georgia

List of Shareholders owning 1% and

more of issued capital:

JSC Halyk Bank of Kazakhstan-100%

List of bank beneficiaries, direct or

indirect holders of 5% or more of

shares:

Timur Kulibayev 37.25%

Dinara Kulibayeva 37.25%

Branches and Service centers : 7

Staff: 250-500

JSC Basisbank

Shareholders owning 1% and more

of issued capital:

Xinjiang HuaLing Industry & Trade

(Group) Co LTD 91.85%

Zaiqi Mi 6.93%



shares:

Enhua Mi 91.76%

Zaiqi Mi 6.93%


Staff: 399 employees

JSC Isbank Georgia



Turkey Is Bank 100.00%



shares:

Turkıye Is Bankası A,S, Employees Pensıon

Fund 40.12%

Turkey Republıcan People's Party 28.09%


Staff: 60

JSC FINCA Bank Georgia



FINCA Microfinance Coöperatief U.A.

(Netherlands) 100%



shares:

FINCA Microfinance Holding Company

LLC 99 Voting right of FINCA

Microfinance Coöperatief U.A.

FINCA International, Inc. (New York,

USA) 62.93%

IFC 14.27%

KfW 8.87%

FMO 7.25%



JSC Bank of Georgia



JSC BGEO Group 79.62%

Bank of Georgia Group PLC 19.89%



shares:

Harding Loevner Management LP 7.1%

JSC Georgia Capital 19.9%

Branches and Service centers: 281


JSC CARTU BANK



Jsc Cartu Group 100%



shares:

Uta Ivanishvili 100%



JSC Credo Bank



Access Microfinance Holding AG –60.2%Triodos Custody B.V., Triodos Fair Share Fund– 9.9%Triodos SICAV II, Triodos Microfinance Fund – 9.9%responsAbility Participations AG – 9.34%responsAbility Management Company S.A., responsAbility Global Microfinance Fund (Luxembourg) – 8.79%responsAbility SICAV (Lux) -responsAbility SICAV (Lux) Microfinance Leaders Fund – 1.87%



shares:

CDC Group PLC (UK) – 7.38%European Investment Bank (Luxembourg) – 7.38%International Finance Corporation (USA) – 7.38%Kreditanstalt für Wiederaufbau(Germany) – 7.65%LFS Financial Systems GmbH (Germany) – 14.08%Omidyar Tufts Microfinance Fund (USA) – 8.45%

Branches and Service centers: 60-65

Staff: 1500-2000

The shareholding structure of the Georgian banks is diverse. There are both resident and non-

resident shareholders. Meanwhile, almost in all the Georgian banks non-resident shareholders are

presented.

The shareholding structure and information on branches and the staff for each bank is presented

below.

JSC Liberty Bank



Georgian Financial Group B.V. 75.00%

JSC Heritage Securities 18.01%

JSC Galt & Taggart 4.25%

JSC Georgian Central Securities

Depository 1.2%

Other Shareholders 1.54%



shares:

Irakli Otar Rukhadze 25.01%

Benjamin Albert Marson 25.00%

Igor Alexeev 25.00%


Staff: 4200-4300



reserved.

Appendix 1 Shareholding Structure & General Information (continued)

JSC ProCredit Bank

List of Shareholders owning 1% and more

of issued capital:

ProCredit Holding AG & Co. KGaA 100.00%


indirect holders of 5% or more of shares:

Zeitinger Invest GmbH 17.0%

KfW 13.2%

DOEN Foundation 12.5%

IFC 10.0%

TIAA-CREF 8.6%


Staff: N/A

JSC Pasha Bank Georgia



PASHA Bank OJSC 100.00%



shares:

Arif Pashayev 10.00%

Arzu Aliyeva 45.00%

Leyla Aliyeva 45.00%


Staff: 74

JSC Silk Road Bank



JSC Silk Road Financial Group 99.99%



shares:

Giorgi Ramishvili 61.99%

Alexi Topuria 28.5%

David Franz Borger, Germany 9.5%


Staff: N/A

JSC TBC Bank




TBC Bank Group PLC 99.88%



shares:

Mamuka Khazaradze 13.52%

Badri Japaridze 6.76%

EBRD 8.17%

JPMorgan Asset Management 8.43%

Schroder Investment Management

7.74%

Dunross & Co. 5.50%



JSC Terabank (previously Kor Standard

Bank)

List of Shareholders owning 1% and more

of issued capital:

H.H Sheikh Nahayan Mabarak AL Nahayan

45%

H.H. Sheikh Hamdan Bin Zayed AL Nehayan

20%

H.H. Sheikh Mansoor Bin Zayed Bin Sultan

AL Nehayan 15%

H.E. Shaikh Mohammad Butti AL Hamed

15%

LTD INVESTMENT TRADING GROUP 5%


indirect holders of 5% or more of shares:

H.H Sheikh Nahayan Mabarak AL Nahayan

45%

H.H. Sheikh Hamdan Bin Zayed AL Nehayan

20%

H.H. Sheikh Mansoor Bin Zayed Bin Sultan

AL Nehayan 15%

H.E. Shaikh Mohammad Butti AL Hamed

15%


Staff: 500-1000

JSC VTB Bank (Georgia)



JSC VTB Bank 97.38%

LTD Lakarpa Enterprises Limited

1.47%



shares:

Russian Federation 59.34%


Staff: 1000-1500

JSC ZIRAAT Bank (Georgia)



JSC ZIRAAT Bank of Turkish Republic -

100%



shares: N/A


Staff: N/A



reserved.

Appendix 2 Sector InsightsAssets

As of 30 September 2018 the assets grew in almost all the banks, and only two banks suffered

decreases as compared with the same period of 2017.

As of 30 September 2018 TBC Bank had the highest value of assets - about GEL 14.06 billion, which

is 37.22% of the total assets of the banking sector. Silk Road Bank had the lowest level – GEL 0.07

billion (0.19% in total assets). It is worth mentioning that, as of 30 September 2018, the top two

banks (ranked by assets) held 72.31% of the assets of the banking system, while the top five banks

held 84.99% of the total assets.

Loan portfolio

The total amount of loans issued at the end of the 3rd

quarter of 2018 amounted to GEL 24.97 billion

(Q3 2017: GEL 20.32 billion). The major part of the loans was borrowed by households (55%), trade

(10%) and industry (12%), while education held less than 1% of the total loans issued as of 30

September 2018.

As at 30 September 2018 the Herfindahl-Hirschman Index amounted to 2,664, which implies that the

Georgian banking sector is highly concentrated.

Loan portfolio of Georgian banking sector by loan types, Q3 2018

55%

2%

12%

4%

10%

4%

2%

3%

4%

0%

2% 2%Households

Agriculture, Forestry, Fishing

Industry

Construction

Trade

Hotels and Restaurants

Transport and Communications

Financial Intermediation

Transactions in Real Estates, Researches

Education

Health Care and Social Services

Other services



reserved.

*Analysis of the Structure of Deposits are based on NBG aggregate data of Deposits, which includes bank deposits.

Liabilities

As of 30 September 2018 the banking system total liabilities grew by 17.6%, compared with the same figure

as of 30 September 2017, to reach GEL 33.04 billion.

Deposits

As of 30 September 2018 non-bank deposits represented 66.2% of the total liabilities of the banking sector

(GEL 21.9 billion).

As of 30 September 2018 63.2% of the deposits were placed in foreign currencies, while the remaining

36.8% in national currency, same figures stood at 66.0% and 34.0% for the Q3 2017 respectively. 45.6% of

the total deposits were time deposits, while current accounts and demand deposits represented 27.1% and

27.4% of the total deposits respectively.

Around 67.0% of the time deposits were placed in foreign currencies, while 59.97% of total of current

accounts and demand deposits were placed in foreign currency.

Appendix 2 Sector Insights (continued)

Structure of deposits

Equity

At the end of the Q3 2018 the total equity to total assets ratio was 12.55%, which is slightly lower compared

to the same ratio of 2017 (13.04%).

As of 30 September 2018 TBC Bank had the highest level of equity - about GEL 1.73 billion, which is 36.6%

of the total equity of the banking system. Silk Road Bank had the lowest level – GEL 0.034 billion (0.8% in

total equity). 79% of the total equity of the banking system belonged to the top five banks (ranked by the

equity) as of 30 September 2018.

Interest income

For the period the interest income amounted to GEL 2.48 billion. Thirteen banks out of fifteen increased their

interest income compared to the same period of 2017.

Profit/loss

Financial performance of the sector was positive during the three quarters of 2018. Comparing with the

same period last year, interest income, holding the highest share in the total income, rose by 20.7% and

reached GEL 2.48 billion. Total fee and commission income increased by 11.5% and amounted to GEL 0.49

billion, while net profit of the banks for the first three quarters was GEL 0.60 billion, 4.7% lower when

compared with the same period of 2017.

During the three quarters of 2018, 14 banks operating in Georgia were profitable. Only one bank incurred a

loss after taxes.

36.8%

63.2%

GEL Foreign Currency

27.1%

27.4%

45.6%

Current Accounts Demand Deposits Time Deposits



reserved.

Appendix 3Key Financial IndicatorsKey Indicators of the Financial Position as of 30.09.2018

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC TBC Bank 14,060,800 9,589,559 12,325,927 8,826,511 1,734,874 21,016

JSC Bank of Georgia 13,258,845 8,264,305 11,940,230 7,554,803 1,318,615 26,636

JSC Liberty Bank 1,854,690 1,107,686 1,592,978 1,497,795 261,712 44,536

JSC VTB Bank-Georgia 1,526,637 1,081,358 1,330,108 1,021,543 196,529 209,008

JSC ProCredit Bank 1,408,654 1,009,705 1,238,426 600,922 170,228 88,915

JSC BasisBank 1,322,739 881,716 1,116,651 657,913 206,088 16,138

JSC Cartu Bank 1,178,911 815,151 959,260 696,261 219,651 114,430

JSC TeraBank 898,646 662,114 768,010 627,962 130,635 121,372

JSC Credo 790,064 644,493 676,811 17,474 113,253 4,400

JSC Halyk Bank Georgia 450,261 355,227 364,989 74,586 85,272 62,000

JSC Finca Bank Georgia 305,632 228,789 262,118 122,585 43,513 25,643

JSC PASHA Bank Georgia 316,139 149,993 207,534 82,410 108,606 103,000

JSC Isbank Georgia 247,973 142,194 174,580 42,835 73,393 69,162

JSC ZIRAAT Bank Georgia 91,221 22,874 49,269 45,424 41,952 40,000

JSC Silk Road Bank 71,109 17,699 35,196 20,143 35,914 40,000

Total 37,782,321 24,972,863 33,042,086 21,889,167 4,740,236 986,256



reserved.

Appendix 3Key Financial Indicators (continued)Key Indicators of the Financial Results for the period ended 30.09.2018

GEL Thousands

Interest

Income

Net Interest

Income

Fee and

commission

income

Net fee and

commission

income

Provision

Expense

Net profit/

loss before

taxes

Net profit/

loss after

taxes

JSC TBC Bank 832,787 473,031 215,077 144,241 118,335 317,036 261,928

JSC Bank of Georgia 891,445 488,941 154,496 93,679 158,394 249,334 183,474

JSC Liberty Bank 223,233 133,071 38,942 31,316 25,610 42,593 36,204

JSC VTB Bank-Georgia 87,789 42,523 19,468 13,910 10,789 31,346 27,586

JSC ProCredit Bank 63,297 40,223 8,073 2,505 -305 25,943 22,188

JSC Cartu Bank 58,306 36,179 3,594 -2,903 213 13,227 10,572

JSC TeraBank 55,566 29,807 6,724 3,543 3,010 15,847 15,847

JSC BasisBank 69,899 39,143 7,610 4,263 4,065 26,118 23,436

JSC Finca Bank Georgia 43,687 27,151 5,236 628 4,153 1,809 1,725

JSC Halyk Bank Georgia 26,466 17,803 1,648 1,036 1,688 8,739 7,662

JSC PASHA Bank Georgia 15,160 11,541 186 15 877 3,393 3,393

JSC Isbank Georgia 10,495 5,606 926 -111 406 695 102

JSC Credo 98,263 57,411 28,646 23,432 9,203 9,987 7,633

JSC ZIRAAT Bank Georgia 3,494 3,311 750 304 -33 1,951 1,951

JSC Silk Road Bank 2,384 1,905 1,090 925 694 (1,363) (1,363)

Total 2,482,273 1,407,645 492,467 316,785 337,098 746,654 602,339



reserved.

Appendix 3Key Financial Indicators (continued)Key Indicators of the Financial Position as of 30.09.2017

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC TBC Bank 11,809,595 7,772,734 10,320,265 7,075,189 1,489,330 21,016

JSC Bank of Georgia 10,762,515 6,451,737 9,513,969 6,148,307 1,248,546 25,911

JSC Liberty Bank 1,720,975 898,644 1,512,603 1,283,666 208,372 43,992

JSC VTB Bank-Georgia 1,525,263 957,986 1,360,780 962,961 164,483 209,008

JSC ProCredit Bank 1,270,169 932,916 1,098,132 630,025 172,036 88,915

JSC Cartu Bank 1,234,854 810,508 1,030,827 664,770 204,027 114,430

JSC BasisBank 1,205,898 702,797 1,023,200 670,587 182,698 16,097

JSC TeraBank 741,497 516,846 632,300 521,181 109,198 121,372

JSC Credo 638,131 482,203 526,794 0 111,337 4,400

JSC Halyk Bank Georgia 377,675 291,234 317,783 75,352 59,892 48,000

JSC Finca Bank Georgia 288,569 221,249 253,213 87,980 35,356 20,214

JSC Isbank Georgia 272,880 120,070 239,219 88,869 33,662 30,000

JSC PASHA Bank Georgia 250,923 111,850 145,591 46,725 105,332 103,000

JSC The International Bank of

Azerbaijan-Georgia* 91,819 28,316 54,153 31,438 37,666 22,688

JSC ZIRAAT Bank Georgia 77,177 19,032 54,075 46,419 23,101 22,268

JSC Silk Road Bank 44,573 6,055 17,139 14,997 27,433 30,000

Total 32,312,513 20,324,178 28,100,044 18,348,467 4,212,469 921,310

*In July 2018 JSC International Bank of Azerbaijan (IBAR) - Georgia has taken decision on cancellation of banking license and

transformation into non-bank organization.



reserved.

Appendix 3Key Financial Indicators (continued)Key Indicators of the Financial Results for the period ended 30.09.2017

GEL Thousands

Interest

Income

Net Interest

Income

Fee and

commission

income

Net fee and

commission

income

Provision

Expense

Net profit/

loss before

taxes

Net profit/

loss after

taxes

JSC TBC Bank 659,462 351,394 175,228 114,101 60,761 235,687 213,511

JSC Bank of Georgia 720,137 406,222 129,198 80,928 8,584 322,180 286,710

JSC Liberty Bank 191,584 108,308 57,152 49,940 20,784 40,814 34,538

JSC VTB Bank-Georgia 84,916 40,701 17,276 12,506 -3,851 16,994 15,760

JSC Credo 82,505 52,270 29,259 23,891 9,400 10,526 10,155

JSC ProCredit Bank 60,204 37,204 7,256 1,569 2,540 15,625 13,713

JSC Cartu Bank 60,201 39,021 3,744 -1,505 6,616 16,388 11,766

JSC BasisBank 54,695 32,071 4,535 1,224 4,840 19,004 17,186

JSC TeraBank 44,110 22,666 6,396 2,766 -640 10,670 10,670

JSC Finca Bank Georgia 41,179 25,829 4,189 -935 4,543 1,450 1,330

JSC Halyk Bank Georgia 22,386 16,491 4,349 2,071 240 10,591 9,206

JSC PASHA Bank Georgia 14,253 11,169 103 -34 12 4,126 4,126

JSC Isbank Georgia 15,359 7,160 1,474 815 -245 2,715 2,612

JSC The International Bank

of Azerbaijan-Georgia* 1,934 1,642 912 537 2,028 42 42

JSC ZIRAAT Bank Georgia 1,567 1,401 387 175 -77 828 828

JSC Silk Road Bank 2,265 1,710 359 242 -451 -339 -339

Total 2,056,758 1,155,260 441,820 288,293 115,085 707,301 631,815

*In July 2018 JSC International Bank of Azerbaijan (IBAR) - Georgia has taken decision on cancellation of banking license and

transformation into non-bank organization.



reserved.

Appendix 4Bank Contact Details

JSC Bank of Georgia

CEO

Kakhaber Kiknavelidze

Members of Board of Directors:

Levan Kulijanishvili

Mikheil Gomarteli

Archil Gachechiladze

Giorgi Chiladze

Ramaz Kukuladze

David Tsiklauri

Vasil Khodeli

Vakhtang Bobokhidze

Address: 29a Gagarini Street

Tel./Fax: (995 32) 2 444 44

[email protected]

Website: www.BOG.ge

SWIFT: BAGAGE22

JSC Credo Bank

CEO

Zaal Pirtskhelava


Erekle Zatiashvili

Zaza Tkeshelashvili

Address: 27 Tabukashvili Street

Tel./Fax: +995 (32) 242 4242

E-mail: [email protected]

Swift: N/A

JSC Cartu Bank

CEO

Nato Khaindrava


David Galuashvili

Zurab Gogua

Beqa Kvaratskhelia

Givi Lebanidze

Address: 39a Chavchavadze

Tel./Fax:*8080, (+995 032) 200 80 80


Website: www.cartubank.ge

SWIFT: CRTUGE22

JSC Liberty Bank

CEO

Giorgi Kalandarishvili


Levan Lekishvili

Levan Tkhelidze

Mamuka Kvaratskhelia

Armen Matevosyan

David Verulashvili

TAddress: 74 Chavchavadze Street

Tel./Fax: 0322 55 55 00


Website: www.libertybank.ge

SWIFT: LBRTGE22

JSC Basisbank

CEO

David Tsaava


Lia Aslanikashvili

David Kakabadze

Levan Gardaphkhadze

Li Hui

Address: 1, Ketevan Tsamebuli Ave.

Tel./Fax: (995 32) 2 922 922


Website: www.basisbank.ge

SWIFT:CBASGE22

JSC Halyk Bank Georgia

CEO

Nikoloz Geguchadze


Konstantin Gordeziani

Shota Chkoidze

Marina Tankarova

Tamar Goderdzishvili

Address: 74, Kostava str

Tel./Fax: +995 32 2 24 07 07


Website: www.halykbank.ge

SWIFT: HABGGE22

JSC FINCA Bank Georgia

CEO

Vusal Verdiyev


Giorgi Mirotadze

Giorgi Nadareishvili

David Zarandia

Address: Vazha Pshavela Ave 71

Tel./Fax:2 244 949


Website: www.finca.ge

SWIFT: FGEOGE22

JSC Isbank Georgia

CEO

Ozan gur


Mehmet Ihsan Aqhun

Teimuraz Pirmisashvili

Address: Agmashenebeli Ave.140b

Tel./Fax: +995 32 244 22 44


Website: www.isbank.ge

SWIFT: ISBKGE22

JSC Pasha Bank Georgia

CEO

Arda Yusuf Arkun


Chingiz Abdullayev

George Japaridze

Arda Yusuf Arkun

Address: 15 Rustaveli Avenue

Tel./Fax: (+995 322) 265 000


Website: www.pashabank.ge

SWIFT: PAHAGE22



reserved.

Appendix 4Bank Contact Details (continued)

JSC ProCredit Bank

CEO

Ketevan Khuskivadze


Alex Matua

Davit Gabelashvili

Natia Tkhilaishvili

Address: 21 Al. Kazbegi Ave

Tel./Fax: (+995 32) 220 2222 (+995 32)

220 2223


Website: www.procreditbank.ge

SWIFT: MIBGGE22

JSC Silk Road Bank

CEO

Alexander Dzneladze


Natia Merabishvili

George Gibradze

Adress: 2 Saarbrucken Square

Tel./Fax: ( +995 32 ) 224 22 42

( +995 32) 224 22 22


Website: www.silkroadbank.ge

SWIFT: DISNGE22

JSC TBC bank

CEO

Vakhtang Butskhrikidze


Paata Ghadzadze

Tornike Gogichaishvili

Nino Masurashvili

Giorgi Tkhelidze

Giorgi Shagidze

David Chkonia

Nikoloz Kurdiani

Address: Marjanishvili Street 7

Tel./Fax: +(995 32) 227 27 27


Website: www.tbcbank.ge

SWIFT: TBCBGE22

JSC Terabank

CEO

Thea Lortkipanidze


Vakhtang Khutsishili

Zurab Azarashvili

Temur Abuladze

Sophia Jugeli

Address: 3. K.Tsamebuli Av.,0103

Tel. : +995 32 2 55 00 00


Website: www.terabank.ge

SWIFT: TEBAGE2222

JSC Ziraat Bank Georgia

CEO

Mehmet Ucar

Members of Board of Directors

Haluk Cengiz

Mert Kojazioghlu

Address: Aghmashenebeli Ave. No: 61,

Tbilisi, Georgia

Tel./Fax: (00 995 32) 294 37 04

294 37 14


Website: www.ziraatbank.com

SWIFT: TCZBGE22

JSC VTB Bank Georgia

CEO

Archil Kontselidze


Mamuka Menteshashvili

Niko Chkhetiani

Valerian Gabunia

Vladimer Robakidze

Irakli Dolidze

Address: 14, G. Chanturia St., 0108

Tbilisi, Georgia

Tel: (995 32) 224 24 24

Fax: (995 32) 293 32 91


Website: www.vtb.ge

SWIFT: UGEBGE22



reserved.

Glossary of Terms

Herfindahl-Hirschman Index

Calculated by squaring the market share of each firm competing in the market and then summing

the resulting numbers. Index below 1,000 indicates an unconcentrated index; index between 1,000

and 1,800 indicates moderate concentration; index above 1,800 indicates high concentration.

Equity to assets

Calculated as the total equity divided by the total assets.

Return on Assets

The ratio of annualized net profit to average annual assets.

Return on Equity

The ratio of annualized net profit to average annual share capital.

Net Interest Margin

The ratio of annualized net interest income to annual average assets.

Tier 1 Ratio

The ratio of Tier 1 Capital of the bank defined according to the rule set by NBG (based on Basel III

framework) to risk weighted assets. Required minimum by the National Bank of Georgia – 8.5%.

Capital Adequacy Ratio

The ratio of regulatory Capital of the bank defined according to the rule set by NBG (based on

Basel III framework) to risk weighted assets. Required minimum by the National Bank of Georgia –

10.5%

Liquidity Ratio

Calculated as the liquid assets divided by the total assets.

Kakha Rukhadze

Managing Partner

KPMG in Georgia

T + 995 32 293-57-13

E [email protected]

Irina Gevorgyan

Partner

Head of Advisory

T + 995 32 293-57-13

E [email protected]

Contacts

The contacts at KPMG in connection

with this report are:

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particular situation.

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