Georgian Banking Sector Overview - KPMG...*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based

Georgian

Banking

Sector

Overview2016 H1 Results

August 2016

© 2016 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.

Basis of Preparation 2

At a Glance 3

Sector Highlights 4

Bank Profiles 5

Appendix 1: Shareholding Structure & General Information 24

Appendix 2: Sector Insights 27

Appendix 3: Key Financial Indicators 29

Appendix 4: Bank Contact Details 33

Glossary of Terms 35

Contents


Basis of PreparationThis report summarizes and analyzes the financial results of the 19 commercial banks of Georgia for the 1st half of 2016, 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 1st half of 2016. 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 30th June 2016. 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.

3


At a Glance

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

Top Ten Banks of the Georgian Banking Sector as of 30 June 2016 (in thousand 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 6 months of the years**** The figure does not contain bank deposits***** The total income consists of interest income and fee and commission income****** The figure does not include extraordinary items (GEL 14.49 million – H1 2016, -GEL 5.66 million – H1 2015)

The banking system remains the biggest part of the Georgian financial market. As of 30 June 2016, there were 19commercial banks operating in Georgia.

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

Key Financial indicators** 2016 H 1 2015 2015 H 1

30.06.2016/ 31.12.2015

30.06.2016/ 30.06.2015***

Assets 25,274 25,165 23,407 0.43% 7.98%

Loan portfolio 16,481 16,086 14,885 2.45% 10.72%

Liabilities 21,587 21,653 19,822 (0.31%) 8.90%

Deposits**** 14,338 14,347 12,631 (0.06%) 13.52%

Total Equity 3,688 3,513 3,585 4.99% 2.87%

Share Capital 998 998 960 0.00% 3.91%

Total Income***** 1,286 2,476 1,165 10.44%

Interest income 1,154 2,197 1,048 10.09%Net profit after taxes****** 276 553 249 11.07%

-

100,000

200,000

300,000

400,000

500,000

600,000

- 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000

Bank ofGeorgia

TBC Bank BankRepublic

Liberty Bank VTB Bank-Georgia

Cartu Bank ProCreditBank

BasisBank TeraBank Capital Bank

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

8.31% 8.14%

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

2015 H1 2016 H1

Non-performing loan rates for the Georgian banking sector

4


Loan portfolio/non-bank deposits

1.1

Sector Highlights

Compared with the same period of 2015, the banking system assets grewby 7.98% and reached GEL 25.27 billion as of 30 June 2016.

For the 12 months period ended 30 June 2016 the return on assets(ROA)* for the Georgian banking system was 2.4%, while the sameindicator amounted to 2.5% in the same period of 2015.

As of 30 June 2016 Bank of Georgia held the largest part of the totalbanking sector’s assets, while TBC Bank was the second largest. BankRepublic and Liberty Bank also held leading positions in the list.

As of 30 June 2016 the total amount of outstanding loans grew by 10.7%compared with the same period of 2015 and reached GEL 16.48 billion.

As of 30 June 2016 the ratio of loan portfolio to total assets for theGeorgian banking system was 65.2%, while the same ratio was around63.6% as of 30 June 2015.

For the end of H1 2016 the total loan provision expenses of the Georgianbanking sector increased by 1.15% compared with the same period of the2015, and amounted to GEL 0.19 billion. On the other hand from 30June 2015 to 30 June 2016 the ratio of loan loss reserves to total loanportfolio increased from 6.1% to 6.9%.

The balance of non-bank deposits as of 30 June 2016 increased by13.5% compared with the same date of 2015, reaching GEL 14.34 billion.

As of 30 June 2016 the loan portfolio/ non-bank deposit ratio for theGeorgian banking system was 1.1. The ratio was higher (1.2) as of 30June 2015.

As of 30 June 2016 the total equity of banks reached GEL 3.69 billion,showing 2.9% increase compared to the same figure as of 30 June 2015.

For the 12 months period ended 30 June 2016 the return on equity(ROE)* for the Georgian banking system was 17.2%. The ratio of equity toassets as of the 30 June 2016 was 14.6%.

During the first half of 2016, the banking system had total income (interestincome plus fee and commission income) of GEL 1.29 billion, whichexceeded the total income for the same period of 2015 by 10.4%. The netprofit of the banks for the period was GEL 0.28 billion, which is 11.1%higher compared with the same period of 2015.* Please refer to the Glossary of Terms for the methodology of calculation of this ratio.

7.98%

Assets

10.7%

Loans

13.5%

Non-bank deposits

Total income

10.4%

11.1%

Net profit

ROA2.4%

ROE17.2%

Loan portfolio/

assets65.2%

1.15%

Loan provision expenses

Loan loss reserve/

loans6.9%

5


Key Indicators of Financial Performance, GEL, thousands

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

Assets LoanPortfolio

LiabilitiesDeposits TotalEquity

ShareCapital

As of 30.06.2016As of 30.06.2015

Bank Profiles

Bank of GeorgiaKey Financial Indicators*

Key Indicators of Financial Position, GEL, thousands

Key Ratios

Amount , GEL, thousands Change**

2016 H 1*** 2015*** 2015 H 1*** Share in total sector, % Rank 30.06.16/ 30.06.16/

31.12.15 30.06.15Assets 8,468,927 9,003,545 8,431,120 33.51% 1 (5.94%) 0.45%Loan Portfolio 5,298,317 5,521,796 4,965,242 32.79% 1 (4.05%) 6.71%Liabilities 7,438,743 7,778,938 7,186,231 34.46% 1 (4.37%) 3.51%Deposits 4,553,901 5,025,677 3,985,565 31.81% 1 (9.39%) 14.26%Total Equity 1,030,184 1,224,607 1,244,889 27.93% 2 (15.88%) (17.25%) Share Capital**** 26,603 27,821 36,513 2.62% 11 (4.38%) (27.14%)

Total Income***** 466,921 1,022,872 429,719 33.22% 1 8.66%

Interest Income 397,571 865,343 371,651 33.41% 1 6.97%

Net Profit/Loss after Taxes 113,096 260,722 71,690 38.91% 1 57.76%

12.16%

25.88%

16.43%

10.01%

5.45%

2.72%

23.22%

9.43%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE

Non PerformingLoans/Total Loans

* 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data****The reason of the decrease in the share capital is the restructuring of the bank that took place in august 2015 (split of banking and investment business) ***** The total income consists of interest income and fee and commission income

050,000

100,000150,000200,000250,000300,000350,000400,000450,000500,000

Total Income Interest Income Net Profit/Loss afterTaxes

2016 H1 2015 H1

6



15.45%

22.94%

13.88%

10.40%

5.61%

3.22%

21.52%

3.91%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000


Liabilities Deposits TotalEquity

ShareCapital

As of 30.06.2016As of 30.06.2015

Bank Profiles (continued)

Bank RepublicKey Financial Indicators*


Key Ratios



31.12.15 30.06.15Assets 1,670,424 1,661,199 1,365,748 6.61% 3 0.56% 22.31%Loan Portfolio 1,201,717 1,184,096 1,041,696 7.44% 3 1.49% 15.36%Liabilities 1,412,319 1,404,204 1,160,335 6.54% 4 0.58% 21.72%Deposits 761,247 729,291 678,162 5.32% 4 4.38% 12.25%Total Equity 258,106 256,995 205,413 7.00% 3 0.43% 25.65%Share Capital**** 76,031 76,031 76,031 7.49% 6 (0.00%) 0.00%

Total Income***** 94,122 158,841 73,046 6.70% 4 28.85%

Interest Income 78,677 141,777 59,426 6.61% 4 32.39%


* 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000


2016 H1 2015 H1

7


21.88%

22.94%

13.88%

10.40%

5.61%

3.22%

21.52%

3.91%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0100,000200,000300,000400,000500,000600,000700,000800,000



ShareCapital

As of 30.06.2016

As of 30.06.2015


BasisBank


Key Financial Indicators*


Key Ratios



31.12.15 30.06.15Assets 727,056 798,280 727,983 2.88% 8 (8.92%) (0.13%) Loan Portfolio 451,430 449,530 399,763 2.79% 9 0.42% 12.92%Liabilities 568,010 637,425 593,617 2.63% 9 (10.89%) (4.31%) Deposits 453,239 479,791 341,999 3.17% 9 (5.53%) 32.53%Total Equity 159,045 160,855 134,366 4.31% 6 (1.13%) 18.37%Share Capital**** 16,013 15,941 15,976 1.58% 18 0.45% 0.23%

Total Income***** 34,015 62,063 28,563 2.42% 8 19.09%

Interest Income 31,563 57,583 25,926 2.65% 9 21.74%



05,000

10,00015,00020,00025,00030,00035,00040,000


2016 H1 2015 H1

8


4.12%

89.68%

8.40%

7.37%

1.62%

0.23%

8.43%

17.88%

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


020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000



ShareCapital

As of 30.06.2016As of 30.06.2015


Capital Bank




Key Ratios



31.12.15 30.06.15Assets 183,138 232,498 55,880 0.72% 15 (21.23%) 227.74%Loan Portfolio 8,377 11,836 22,322 0.05% 19 (29.22%) (62.47%) Liabilities 175,585 229,547 52,477 0.81% 15 (23.51%) 234.60%Deposits 162,098 228,972 40,690 1.13% 10 (29.21%) 298.37%Total Equity 7,553 2,951 3,403 0.20% 19 155.95% 121.97%Share Capital**** 18,000 24,000 17,120 1.77% 16 (25.00%) 5.14%

Total Income***** 5,513 9,282 4,433 0.39% 16 24.35%

Interest Income 2,335 2,460 1,278 0.20% 15 82.66%

Net Profit/Loss after Taxes 326 (3,257) (1,433) 0.11% 15 (122.73%)


-2,000-1,000

01,0002,0003,0004,0005,0006,000


2016 H1 2015 H1

9


18.58%

20.10%

29.14%

14.72%

4.88%

2.70%

14.82%

15.84%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE



Cartu Bank




Key Ratios



31.12.15 30.06.15Assets 1,261,425 1,192,724 996,741 4.99% 6 5.76% 26.55%Loan Portfolio 957,909 824,618 729,116 3.93% 7 16.16% 31.38%Liabilities 1,027,034 916,319 743,385 4.76% 7 12.08% 38.16%Deposits 622,138 597,946 494,913 4.35% 6 4.05% 25.71%Total Equity 234,391 276,405 253,357 6.36% 4 (15.20%) (7.49%) Share 114,430 114,430 114,430 11.27% 2 0.00% 0.00%CapitalTotal Income**** 50,197 117,870 50,655 3.57% 2 (0.90%)

Interest Income 47,474 111,065 48,217 3.99% 7 (1.54%)

Net Profit/Loss after Taxes 16,725 60,281 41,051 5.75% 7 (59.26%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

0

10,000

20,000

30,000

40,000

50,000

60,000


2016 H1 2015 H1

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000



ShareCapital

As of 30.06.2016As of 30.06.2015

10


51.15%

15.87%

51.53%

53.68%

3.08%

-12.93%

-26.34%

19.04%

-40.00% -20.00% 0.00% 20.00% 40.00% 60.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE

Non Performing Loans/Total Loans


Caucasus Development Bank - Georgia




Key Ratios



31.12.15 30.06.15Assets 34,936 41,687 41,724 0.14% 19 (16.19%) (16.27%) Loan Portfolio 13,765 14,720 15,428 0.09% 17 (6.49%) (10.78%) Liabilities 17,068 21,172 21,402 0.08% 19 (19.39%) (20.25%) Deposits 10,102 18,842 18,146 0.07% 19 (46.39%) (44.33%) Total Equity 17,869 20,515 20,323 0.48% 17 (12.90%) (12.08%) Share 20,039 20,039 20,039 1.97% 15 0.00% 0.00%CapitalTotal Income**** 1,179 2,854 1,267 0.08% 19 (6.94%)

Interest Income 1,148 2,761 1,170 0.10% 19 (1.81%)

Net Profit/Loss after Taxes (2,488) 150 116 (0.86%) 18 (2,250.34%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

05,000

10,00015,00020,00025,00030,00035,00040,00045,000



ShareCapital

As of 30.06.2016As of 30.06.2015

-3,000-2,500-2,000-1,500-1,000

-5000

5001,0001,500


2016 H1 2015 H1

11


13.97%

18.76%

13.79%

12.36%

15.41%

0.36%

2.46%

2.09%

0.00% 5.00% 10.00% 15.00% 20.00%

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



ShareCapital

As of 30.06.2016As of 30.06.2015


Finca Bank Georgia




Key Ratios



31.12.15 30.06.15Assets 250,041 217,439 222,118 0.99% 12 10.50% 27.36%Loan Portfolio 190,179 171,356 159,181 1.18% 11 7.10% 24.31%Liabilities 215,113 180,585 184,188 1.00% 12 13.80% 35.70%Deposits 78,765 30,936 13,135 0.55% 12 58.90% 512.27%Total Equity 34,928 36,854 37,930 0.95% 12 (5.40%) (6.50%) Share 20,214 20,214 20,214 1.99% 14 0.00% 0.00%CapitalTotal Income**** 29,442 53,834 26,219 2.09% 10 15.97%

Interest Income 26,731 53,712 23,163 2.25% 10 19.11%

Net Profit/Loss after Taxes 433 (318) 888 0.15% 14 (51.28%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000


2016 H1 2015 H1

12


15.99%

21.39%

19.53%

11.89%

6.44%

1.91%

10.86%

5.71%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

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

350,000



ShareCapital

As of 30.06.2016As of 30.06.2015


Halyk Bank Georgia




Key Ratios



31.12.15 30.06.15Assets 306,540 265,908 196,782 1.21% 10 15.28% 55.78%Loan Portfolio 214,529 201,610 145,321 1.33% 10 6.41% 47.62%Liabilities 257,517 215,392 152,970 1.19% 10 19.56% 68.34%Deposits 45,389 48,170 37,890 0.32% 15 (5.77%) 19.79%Total Equity 49,023 50,516 43,812 1.33% 11 (2.96%) 11.89%Share 48,000 48,000 48,000 4.73% 8 0.00% 0.00%CapitalTotal Income**** 14,774 23,008 9,220 1.05% 11 60.24%

Interest Income 13,136 21,788 8,846 1.10% 11 48.49%

Net Profit/Loss after Taxes 2,601 6,002 1,244 0.89% 11 109.06%* 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

02,0004,0006,0008,000

10,00012,00014,00016,000


2016 H1 2015 H1

13


13.97%

22.06%

30.27%

27.64%

3.53%

1.33%

9.22%

1.43%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000



ShareCapital

As of 30.06.2016As of 30.06.2015


Isbank Georgia




Key Ratios



31.12.15 30.06.15Assets 227,990 213,057 142,915 0.90% 14 7.01% 59.53%Loan Portfolio 160,440 148,037 114,422 0.99% 12 8.38% 40.22%Liabilities 196,143 181,560 130,224 0.91% 13 8.03% 50.62%Deposits 57,643 55,016 39,761 0.40% 14 4.77% 44.97%Total Equity 31,847 31,497 12,692 0.86% 14 1.11% 150.93%Share 30,000 30,000 - 2.96% 9 0.00% -CapitalTotal Income***** 8,115 13,570 5,697 0.58% 13 42.44%

Interest Income 7,495 12,767 5,571 0.63% 13 34.54%

Net Profit/Loss after Taxes 1,462 1,670 520 0.50% 12 181.20%* 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** Before 1 August 2015 the bank represented a branch of a Turkey based bank, for that reason no share capital given for the H1 2015***** The total income consists of interest income and fee and commission income

01,0002,0003,0004,0005,0006,0007,0008,0009,000


2016 H1 2015 H1

14


10.39%

46.60%

21.62%

12.57%

7.54%

1.65%

16.17%

9.23%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,000



ShareCapital

As of 30.06.2016As of 30.06.2015


Liberty Bank




Key Ratios



31.12.15 30.06.15Assets 1,586,548 1,573,746 1,553,776 6.28% 4 0.81% 2.11%Loan Portfolio 796,342 698,460 808,332 4.93% 6 14.01% (1.48%) Liabilities 1,421,674 1,442,896 1,383,030 6.59% 3 (1.47%) 2.79%Deposits 1,272,624 1,244,023 1,310,805 8.89% 3 2.30% (2.91%) Total Equity 164,873 130,850 170,746 4.47% 5 26.00% (3.44%) Share 43,779 53,863 53,383 4.31% 8 (18.72%) (17.99%) CapitalTotal Income**** 144,667 281,412 142,534 10.29% 3 1.50%

Interest Income 117,141 251,147 120,789 9.84% 3 (3.02%)

Net Profit/Loss after Taxes 12,760 32,146 14,257 4.39% 6 (10.51%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

020,00040,00060,00080,000

100,000120,000140,000160,000


2016 H1 2015 H1

15


33.72%

14.03%

44.86%

41.92%

5.42%

3.06%

9.11%

0.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

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

350,000



ShareCapital

As of 30.06.2016As of 30.06.2015


PASHA Bank Georgia




Key Ratios



31.12.15 30.06.15Assets 291,223 282,310 251,149 1.15% 11 3.16% 15.96%Loan Portfolio 102,822 109,913 115,064 0.64% 13 (6.45%) (10.64%) Liabilities 193,031 184,129 161,611 0.89% 14 4.83% 19.44%Deposits 45,143 21,288 10,634 0.32% 16 112.06% 324.52%Total Equity 98,192 98,181 89,537 2.66% 9 0.01% 9.67%

Share Capital103,000 103,000 103,000 10.15% 4 0.00% 0.00%

Total Income**** 11,795 19,592 7,613 0.84% 12 54.92%

Interest Income 11,735 19,045 7,579 0.99% 12 54.83%

Net Profit/Loss after Taxes 4,351 2,262 (1,611) 1.50% 9 (370.08%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

-4,000-2,000

02,0004,0006,0008,000

10,00012,00014,000


2016 H1 2015 H1

16



12.99%

22.52%

15.11%

10.37%

5.42%

2.13%

16.41%

7.70%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

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

1,400,000



ShareCapital

As of 30.06.2016

As of 30.06.2015


ProCredit BankKey Financial Indicators*


Key Ratios



31.12.15 30.06.15Assets 1,223,183 1,221,113 1,144,951 4.84% 7 0.17% 6.83%Loan Portfolio 889,400 926,221 866,214 5.50% 4 (3.98%) 2.68%Liabilities 1,064,246 1,049,251 1,009,007 4.93% 6 1.43% 5.47%Deposits 617,908 669,291 622,451 4.32% 7 (7.68%) (0.73%) Total Equity 158,937 171,862 135,944 4.31% 7 (7.52%) 16.91%Share 88,915 88,915 88,915 8.76% 5 0.00% 0.00%CapitalTotal Income**** 55,333 120,311 55,767 3.94% 6 (0.78%)

Interest Income 48,769 108,562 48,537 4.10% 6 0.48%


0

10,000

20,000

30,000

40,000

50,000

60,000


2016 H1 2015 H1

17


6.29%

19.14%

10.49%

9.77%

2.21%

-0.44%

-7.04%

3.55%

-10.00% 0.00% 10.00% 20.00% 30.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

50,000

100,000

150,000

200,000

250,000



ShareCapital

As of 30.06.2016As of 30.06.2015


Progress Bank




Key Ratios



31.12.15 30.06.15Assets 235,991 194,712 142,795 0.93% 13 21.20% 65.27%Loan Portfolio 90,816 98,043 70,966 0.56% 14 (7.37%) 27.97%Liabilities 221,139 181,702 127,215 1.02% 11 21.70% 73.83%Deposits 118,968 116,768 73,978 0.83% 11 1.88% 60.82%Total Equity 14,851 13,010 15,580 0.40% 18 14.15% (4.68%) Share 17,475 17,475 17,475 1.72% 17 0.00% 0.00%CapitalTotal Income**** 7,154 13,450 6,094 0.51% 14 17.39%

Interest Income 6,722 12,491 6,002 0.56% 14 11.99%

Net Profit/Loss after Taxes (528) (636) 707 (0.18%) 16 (174.72%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

-1,0000

1,0002,0003,0004,0005,0006,0007,0008,000


2016 H1 2015 H1

18


54.49%

39.72%

59.98%

63.64%

4.41%

-5.38%

-10.54%

30.13%

-20.00% 0.00% 20.00% 40.00% 60.00% 80.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE



Silk Road Bank




Key Ratios



31.12.15 30.06.15Assets 52,169 64,020 95,409 0.21% 18 (18.51%) (45.32%) Loan Portfolio 12,586 15,616 22,909 0.08% 18 (19.40%) (45.06%) Liabilities 23,743 27,240 64,016 0.11% 18 (12.84%) (62.91%) Deposits 19,333 21,371 24,112 0.14% 18 (9.54%) (19.82%) Total Equity 28,425 36,780 31,394 0.77% 15 (22.72%) (9.46%) Share 30,000 30,000 30,000 2.96% 10 0.00% 0.00%CapitalTotal Income**** 2,030 4,917 3,584 0.14% 17 (43.36%)

Interest Income 1,840 4,107 3,177 0.15% 18 (42.08%)

Net Profit/Loss after Taxes (1,532) 2,470 2,568 (0.53%) 17 (159.68%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

0

20,000

40,000

60,000

80,000

100,000

120,000



ShareCapital

As of 30.06.2016As of 30.06.2015

-2,000

-1,000

0

1,000

2,000

3,000

4,000


2016 H1 2015 H1

19


17.12%

21.84%

16.45%

12.44%

5.81%

2.86%

16.67%

6.89%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000



ShareCapital

As of 30.06.2016As of 30.06.2015


TBC Bank




Key Ratios



31.12.15 30.06.15Assets 6,541,346 6,934,995 6,076,061 25.88% 2 (5.68%) 7.66%Loan Portfolio 4,649,180 4,444,886 4,132,318 28.77% 2 4.60% 12.51%Liabilities 5,421,579 5,716,546 5,147,063 25.12% 2 (5.16%) 5.33%Deposits 4,188,559 4,177,931 3,784,888 29.25% 2 0.25% 10.67%Total Equity 1,119,767 1,218,449 928,998 30.36% 1 (8.10%) 20.53%Share 20,022 19,587 19,813 1.97% 16 2.22% 1.05%CapitalTotal Income**** 375,773 762,896 315,152 26.73% 2 19.24%

Interest Income 308,367 649,059 256,857 25.91% 2 20.05%


050,000

100,000150,000200,000250,000300,000350,000400,000


2016 H1 2015 H1

20


13.07%

20.52%

13.67%

10.02%

3.41%

-4.23%

-29.66%

12.10%

-40.00% -20.00% 0.00% 20.00% 40.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0100,000200,000300,000400,000500,000600,000700,000800,000



ShareCapital

As of 30.06.2016As of 30.06.2015


Terabank (previously Kor Standard Bank)




Key Ratios



31.12.15 30.06.15Assets 673,298 658,805 625,802 2.66% 9 2.20% 7.59%Loan Portfolio 488,013 436,584 427,499 3.02% 8 11.78% 14.16%Liabilities 585,303 556,215 531,814 2.71% 8 5.23% 10.06%Deposits 480,947 450,768 422,102 3.36% 8 6.70% 13.94%Total Equity 87,995 102,590 93,988 2.39% 10 (14.23%) (6.38%) Share 111,000 111,000 106,259 10.93% 3 0.00% 4.46%CapitalTotal Income**** 34,148 62,335 30,218 2.43% 9 13.01%

Interest Income 30,668 57,619 27,664 2.58% 8 10.86%

Net Profit/Loss after Taxes (14,226) 4,072 3,999 (4.89%) 19 (455.75%) * 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The total income consists of interest income and fee and commission income

-20,000

-10,000

0

10,000

20,000

30,000

40,000


2016 H1 2015 H1

21


27.59%

25.76%

56.01%

34.18%

5.95%

6.28%

22.22%

27.04%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


020,00040,00060,00080,000

100,000120,000140,000160,000180,000



ShareCapital

As of 30.06.2016As of 30.06.2015


The International Bank of Azerbaijan-Georgia




Key Ratios



31.12.15 30.06.15Assets 115,420 147,000 154,378 0.46% 16 (21.48%) (25.24%) Loan Portfolio 73,008 80,720 92,881 0.45% 15 (9.55%) (21.40%) Liabilities 83,570 105,736 125,444 0.39% 16 (20.96%) (33.38%) Deposits 26,095 40,065 21,281 0.18% 17 (34.87%) 22.62%Total Equity 31,850 41,264 28,935 0.86% 13 (22.81%) 10.07%Share 22,688 22,688 22,688 2.23% 13 0.00% 0.00%CapitalTotal Income**** 5,122 16,640 8,077 0.36% 15 (36.58%)

Interest Income 4,348 15,196 7,367 0.37% 16 (40.98%)


01,0002,0003,0004,0005,0006,0007,0008,0009,000


2016 H1 2015 H1

22


10.44%

27.57%

12.29%

9.07%

4.59%

1.50%

12.78%

6.44%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,000



ShareCapital

As of 30.06.2016As of 30.06.2015


VTB Bank-Georgia




Key Ratios



31.12.15 30.06.15Assets 1,336,483 1,224,049 1,119,160 5.29% 5 9.19% 19.42%Loan Portfolio 867,331 782,120 743,192 5.37% 5 10.89% 16.70%Liabilities 1,197,001 1,062,537 1,004,071 5.55% 5 12.66% 19.21%Deposits 738,946 669,605 655,525 5.16% 5 10.36% 12.73%Total Equity 139,481 161,512 115,089 3.78% 8 (13.64%) 21.19%Share 191,293 191,293 171,293 18.84% 1 0.00% 11.68%CapitalTotal Income**** 63,284 107,585 53,337 4.50% 5 18.65%

Interest Income 52,738 94,657 44,394 4.43% 5 18.79%


0

10,000

20,000

30,000

40,000

50,000

60,000

70,000


2016 H1 2015 H1

23


23.29%

68.31%

41.28%

38.86%

4.64%

2.82%

9.20%

3.59%

0.00% 20.00% 40.00% 60.00% 80.00%

Equity to Assets

Liquidity

Capital Adequacy

Tier 1

Net Interest Margin

ROA

ROE


010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000



ShareCapital

As of 30.06.2016As of 30.06.2015

Bank Profiles

ZIRAAT BANKASI A.S. Tbilisi Branch




Key Ratios



31.12.15 30.06.15Assets 88,240 64,057 62,864 0.35% 17 37.75% 40.37%Loan Portfolio 14,447 13,676 13,044 0.09% 16 5.64% 10.76%Liabilities 67,690 44,428 44,189 0.31% 17 52.36% 53.18%Deposits 64,684 41,296 34,645 0.45% 13 56.63% 86.71%Total Equity 20,550 19,629 18,675 0.56% 16 4.69% 10.04%Share - - - 0.00% 19 - -Capital****Total Income***** 2,142 3,706 1,854 0.15% 18 15.51%

Interest Income 1,611 2,811 1,436 0.14% 17 12.18%

Net Profit/Loss after Taxes 929 2,076 1,139 0.32% 13 (18.46%)

* 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 6 months of the years*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based on the NBG data**** The bank represents a branch of a Turkey based bank, for that reason no amount given for share capital***** The total income consists of interest income and fee and commission income

0

500

1,000

1,500

2,000

2,500


2016 H1 2015 H1

24


Appendix 1

Shareholding Structure & General InformationThe 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 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%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:H.H Sheikh Nahayan Mabarak ALNahayan 45%H.H. Sheikh Hamdan Bin Zayed ALNehayan 20%H.H. Sheikh Mansoor Bin Zayed BinSultan AL Nehayan 15%H.E. Shaikh Mohammad Butti ALHamed 15%

Branches and Service centers: 21Staff: 383

JSC Bank of Georgia

List of Shareholders owning 1% and more of issued capital:BGEO Group 99.51%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Different funds / schemes managed by Schroders Plc and its subsidiaries 6.49%Harding Loevner Management LP 9.63%

Branches and Service centers: 219Staff: 3622 employees

JSC CARTU BANK

List of Shareholders owning 1% and more of issued capital:Jsc Cartu Group 100%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Uta Ivanishvili 100%

Branches and Service centers : 10Staff: 201- 500 employees

T.C. ZIRAAT BANKASI A.S. TBILISI BRANCH

List of Shareholders owning 1% and more of issued capital:The Undersecretariat of Tresury of the Turkish Republic -100%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:The Undersecretariat of Tresury of the Turkish Republic - 100%

Branches and Service centers : 2Staff: 29 employees

JSC Capital Bank

List of Shareholders owning 1% and more of issued capital:ESOL B.V. LLC 60%TRENDFOR HOLDING LTD 40%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Gilbert Richard Armenta 60%Merab Chikhradze 40%


JSC VTB Bank (Georgia)

List of Shareholders owning 1% andmore of issued capital:JSC VTB Bank 97.1%LTD Lakarpa Enterprises Limited 1.6%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Russian Federation 59.2%


JSC TBC Bank

List of Shareholders owning 1% and more of issued capital:David Khazaradze - 1.34%Meijer Bob - 1.70%Vakhtang Butskhrikidze - 1.49%TBC HOLDINGS LTD - 15.83%LIQUID CRYSTAL INTERNATIONAL N.V - 5.41%BNY (NOMINEES) LIMITED - 69.99%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Different funds managed by Pioneer Investment Management LTD -6.10% (GDR holder)Dunross & Co. – 5.99% (GDR holder)Malone Financial - 6.27% (GDR holder)EBRD - 12.28% (GDR holder)IFC - 6.15% (GDR holder)Badri Japaridze - 7.33%Mamuka Khazaradze - 14.67%


JSC Silk Road Bank

List of Shareholders owning 1% and more of issued capital:JSC Silk Road Financial Group 99.987%List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Giorgi Ramishvili - 61.992%Alexi Topuria - 28.496 %David Franz Borger, Germany -9.499%Branches and Service centers : 9Staff: 211 employees

25


Appendix 1

Shareholding Structure & General Information (continued)

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 36.77%Dinara Kulibayeva 36.77%

Branches and Service centers : 5Staff: 150-200

JSC Basisbank

Shareholders owning 1% and more of issued capital:Xinjiang HuaLing Industry & Trade (Group) Co LTD 92.56%Zaiqi Mi 6.99%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Enhua Mi 92.47%Zaiqi Mi 6.99%Branches and Service centers : 18Staff: 296 employees

JSC ProCredit Bank

List of Shareholders owning 1% and more of issued capital:ProCredit Holding AG & Co. KGaA100.00%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:IPC 18.41%KfW 13.62%DOEN Foundation 13.32%IFC 10.30%TIAA-CREF 9.95%IPC-Invest GmbH & Co. KG 5.53%Omidayar 5.19%BIO 5.66%FMO 5.29%

Branches and Service centers : 43Staff: N/A

JSC Pasha Bank Georgia

List of Shareholders owning 1% and more of issued capital:PASHA Bank OJSC 100.00%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Arif Pashayev 10.00%Arzu Aliyeva 45.00%Leyla Aliyeva 45.00%


JSC Bank Republic

List of Shareholders owning 1% and more of issued capital:Societe Generale 93.64%EBRD 6.36%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:N/A

Branches and Service centers : 40 Staff: 942

JSC Isbank Georgia

List of Shareholders owning 1% and more of issued capital:Turkey Is Bank 100.00%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Turkıye Is Bankası A,S, Employees Pensıon Fund 40.15%Turkey Republıcan People"s Party 28.09%

Branches and Service centers : 2Staff: 24

JSC Caucasus Development Bank -Georgia

List of Shareholders owning 1% and more of issued capital:Transcaucasus Development Bank 100.00%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Eldar Ismailov 35.38%Fidan Ismailova 18.00%Tural Gurbanov 7.50%Rashadat Iskanderov 6.67%Aziz Pashaev 5.00%Ilkhama Iskanderova 6.67%Khalilbek Gunashev 6.67%Branches and Service centers : 2Staff: 43

JSC PROGRESS BANK

List of Shareholders owning 1% and more of issued capital:The company Pintex Group Corp 78.29%Bidzina Ivanishvili 21.71%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Ilya Gavrilov 78.29%Bidzina Ivanishvili 21.71%


JSC FINCA Bank Georgia

List of Shareholders owning 1% and more of issued capital:FINCA Microfinance Coöperatief U.A. (Netherlands) 100%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:FINCA Microfinance HoldingCompany LLC 100 Voting right ofFINCA Microfinance Coöperatief U.A.FINCA International, Inc (New York,USA) 62.64%IFC 14.38%KfW 8.94%FMO 7.31%


26


Appendix 1

Shareholding Structure & General Information (continued)

JSC Liberty Bank

List of Shareholders owning 1% and more of issued capital:Liberty Holding Georgia LLC 59.90%BNY Limited (Nominees) 12.50%Vladimer Gurgenidze 6.61%ELVIN Solutions Limited 8.03%OLIVE Capital Management Ltd 5.82%Others 7.14%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:Denis Korotkov-Koganovich 24.57%Malik Ishmuratov 24.57%BNY Limited (Nominees) 10.19%Alexey Yusfin 9.04%

Branches and Service centers : 629Staff: 4900

JSC International Bank of Azerbaijan- Georgia

List of Shareholders owning 1% and more of issued capital:OJSC International Bank of Azerbaijan 75.00%OJSC Azerbaijan Industry Bank 12.50%Natia Chkhartishvili 6.25%Mikheil Chkhartishvili 6.25%

List of bank beneficiaries, direct or indirect holders of 5% or more of shares:State Committee of State Property of Azerbaijan Republic 41.22%Leyla Gozal Kurt 7.07%Natia Chkhartishvili 6.25%Mikheil Chkhartishvili 6.25%


27


Appendix 2

Sector InsightsGeneral highlights▪ In Q2 2016 Kor-Standard Bank changed its name to TeraBank.▪ In October 2015 TBC Bank confirmed that it planned to seek a premium listing on the London

Stock Exchange in 2016. Further to the successful completion of its tender offer on 4 August 2016,TBC Bank Group PLC ("TBC PLC") announced that 49,159,880 of its ordinary shares have beenadmitted to the premium listing segment of the Official List of the UK Listing Authority and to tradingon London Stock Exchange plc's main market for listed securities under the ticker TBCG.LN.

▪ In July 2016 Societe Generale declared that preliminary agreement was reached with Chinesegroup Xinjiang Hualing regarding selling its share in Bank Republic. In the new combinationSociete Generale will own about 8% and will have one representative on the Supervisory Board.EBRD will hold about 3.9% of the shares and will also have own member in the Supervisory Board.The Chinese group plans to merge Basis Bank (which it already owns) with Bank Republic.

▪ On August 22 National Bank of Georgia made a decision to appoint temporary administration atCaucasus Development Bank-Georgia.

AssetsAs of 30 June 2016 the assets grew in almost all the banks, and only four banks suffered decreasesas compared with the same period of 2015.As of 30 June 2016 Bank of Georgia had the highest value of assets - about GEL 8.5 billion, which is33.51% of the total assets of the banking sector. Caucasus Development Bank - Georgia had thelowest level – GEL 0.035 billion (0.14% in total assets). It is worth mentioning that, as of 30 June2016, the top two banks (ranked by assets) held 59.39% of the assets of the banking system, whilethe top five banks held 77.56% of the total assets.

Loan portfolioThe total amount of loans issued at the end of the first half of 2016 amounted to GEL 16.38 billion (H12015: GEL 14.74 billion). The major part of the loans was borrowed by households (51%), trade(13%) and industry (12%), while education held only 1% of the total loans issued as of 30 June 2016.As at 31 March 2016 the Herfindahl-Hirschman Index amounted to 2,036, which implies that theGeorgian banking sector is highly concentrated.

Structure of banks in Georgia by loan volume, H1 2016

51%

13%

12%

4%

4%

4%

3%2%

2%1%1% 3% Households

Trade

Industry

Construction

Financial Intermediation

Transactions in Real Estates, Researches

Hotels and Restaurants

Transport and Communications

Agriculture, Forestry, Fishing

Health Care and Social Services

Education

Others

28


LiabilitiesAs of 30 June 2016 the banking system total liabilities grew by 8.9%, compared with the same figure as of 30June 2015, to reach GEL 21.59 billion, of which 72.0% are deposits.

DepositsAs of 30 June 2016 non-bank deposits represented 66.4% of the total liabilities of the banking sector (GEL21.59 billion).As of 30 June 2016 68.2% of the deposits were placed in foreign currencies, while the remaining 31.8% innational currency. 46.7% of the total deposits were time deposits, while current accounts and demanddeposits represented 30.8% and 22.5% of the total deposits respectively.Around 79.0% of the time deposits were placed in foreign currencies, while 58.8% of total of current accountsand demand deposits were placed in foreign currency.

Appendix 2 Sector Insights (continued)

Structure of deposits

EquityAt the end of the 1st half 2016 the total equity to total assets ratio was 14.6%, which is lower compared to thesame ratio of 2015 (15.3%).As of 30 June 2015 TBC Bank had the highest level of equity - about GEL 1.12 billion, which is 30.4% of thetotal equity of the banking system. Capital Bank had the lowest level – GEL 0.008 billion (0.2% in total equity).76.1% of the total equity of the banking system belonged to the top five banks (ranked by the equity) as of 30June 2016.

Interest incomeFor the period the interest income amounted to GEL 1.19 billion. Fourteen banks out of the nineteenincreased their interest income compared to the same period of 2015.

Profit/lossFinancial performance of the sector was positive during the first half of 2016. Comparing with the same periodlast year, interest income, holding the highest share in the total income, rose by 11.3% and reached GEL 1.19billion. Total fee and commission income increased by 16.6% and amounted to GEL 0.22 billion, while netprofit of the banks for the first half was GEL 0.29 billion, 19.6% higher when compared with the same periodof 2015.During the first half of 2016, 15 banks operating in Georgia were profitable. The others incurred total lossesafter taxes.

31.8%

68.2%

GEL Foreign Currency

30.8%

22.5%

46.7%

Current Accounts Demand Deposits Time Deposits

Source: National Bank of Georgia

29


Appendix 3

Key Financial IndicatorsKey Indicators of the Financial Position as of 30 June 2016

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC Bank of Georgia 8,468,927 5,298,317 7,438,743 4,553,901 1,030,184 26,603

JSC TBC Bank 6,541,346 4,649,180 5,421,579 4,188,559 1,119,767 20,022

JSC Bank Republic 1,670,424 1,201,717 1,412,319 761,247 258,106 76,031

JSC Liberty Bank 1,586,548 796,342 1,421,674 1,272,624 164,873 43,779

JSC VTB Bank-Georgia

1,336,483 867,331 1,197,001 738,946 139,481 191,293

JSC Cartu Bank 1,261,425 957,909 1,027,034 622,138 234,391 114,430

JSC ProCredit Bank 1,223,183 889,400 1,064,246 617,908 158,937 88,915

JSC BasisBank 727,056 451,430 568,010 453,239 159,045 16,013

JSC TeraBank 673,298 488,013 585,303 480,947 87,995 111,000

JSC Capital Bank 183,138 8,377 175,585 162,098 7,553 18,000

JSC PASHA Bank Georgia

291,223 102,822 193,031 45,143 98,192 103,000

JSC Halyk Bank Georgia

306,540 214,529 257,517 45,389 49,023 48,000

JSC PROGRESS BANK

235,991 90,816 221,139 118,968 14,851 17,475

JSC Finca Bank Georgia

250,041 190,179 215,113 78,765 34,928 20,214

JSC Isbank Georgia 227,990 160,440 196,143 57,643 31,847 30,000

JSC The International Bank of Azerbaijan-Georgia

115,420 73,008 83,570 26,095 31,850 22,688

JSC ZIRAAT BANKASI A.S. Tbilisi Branch

88,240 14,447 67,690 64,684 20,550 -

JSC Silk Road Bank 52,169 12,586 23,743 19,333 28,425 30,000

JSC Caucasus Development Bank -Georgia

34,936 13,765 17,068 10,102 17,869 20,039

Total 25,274,378 16,480,608 21,586,508 14,317,729 3,687,867 997,501

30


Appendix 3

Key Financial IndicatorsKey Indicators of the Financial Performance for the 6 months period ended 30 June 2016

GEL Thousands

Interest Income

Net Interest Income

Fee and commission

income

Net fee and commission

incomeProvision for

loan loss

Net profit/ loss before

taxes

Net profit/ loss after

taxes

JSC Bank of Georgia 397,571 226,767 69,350 45,895 86,908 111,944 113,096

JSC TBC Bank 308,367 187,468 67,406 38,582 51,456 101,921 92,376

JSC Liberty Bank 117,141 58,243 27,526 23,272 9,819 12,760 12,760

JSC Bank Republic 78,677 46,303 15,446 12,285 8,316 30,646 26,637

JSC VTB Bank-Georgia 52,738 27,386 10,546 7,650 5,212 9,889 8,927

JSC ProCredit Bank 48,769 31,939 6,565 3,313 6,273 14,806 12,585

JSC Cartu Bank 47,474 30,287 2,723 (563) 10,028 19,738 16,725

JSC TeraBank 30,668 11,461 3,480 1,589 21,184 (15,059) (14,226)

JSC BasisBank 31,563 18,687 2,452 751 756 14,323 12,773

JSC Finca Bank Georgia 26,731 18,302 2,711 (554) 3,634 511 433

JSC Halyk Bank Georgia 13,136 8,753 1,639 788 2,685 2,902 2,601

JSC PASHA Bank Georgia 11,735 7,719 59 (28) (1,783) 4,351 4,351

JSC Isbank Georgia 7,495 3,885 620 44 (112) 1,491 1,462

JSC PROGRESS BANK 6,722 2,631 432 205 350 (618) (528)JSC The International Bank of Azerbaijan-Georgia 4,348 3,272 774 610 (258) 3,450 3,450

JSC Capital Bank 2,335 2,259 3,178 635 (180) 326 326

JSC Silk Road Bank 1,840 1,256 190 87 (115) (1,529) (1,532)JSC ZIRAAT BANKASI A.S. Tbilisi Branch 1,611 1,530 531 294 213 929 929JSC Caucasus Development Bank - Georgia 1,148 594 30 (81) 2,461 (2,488) (2,488)

Total 1,190,069 688,738 215,659 134,773 206,847 310,294 290,655

31


Key Indicators of the Financial Position as of 30 June 2015GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC Bank of Georgia 8,431,120 4,965,242 7,186,231 3,985,565 1,244,889 36,513

JSC TBC Bank 6,076,061 4,132,318 5,147,063 3,784,888 928,998 19,813

JSC Liberty Bank 1,553,776 808,332 1,383,030 1,310,805 170,746 53,383

JSC Bank Republic 1,365,748 1,041,696 1,160,335 678,162 205,413 76,031

JSC ProCredit Bank 1,144,951 866,214 1,009,007 622,451 135,944 88,915

JSC Cartu Bank 996,741 729,116 743,385 494,913 253,357 114,430JSC VTB Bank-Georgia 1,119,160 743,192 1,004,071 655,525 115,089 171,293

JSC BasisBank 727,983 399,763 593,617 341,999 134,366 15,976

JSC TeraBank 625,802 427,499 531,814 422,102 93,988 106,259JSC PASHA Bank Georgia 251,149 115,064 161,611 10,634 89,537 103,000JSC Finca Bank Georgia 222,118 159,181 184,188 13,135 37,930 20,214JSC Halyk Bank Georgia 196,782 145,321 152,970 37,890 43,812 48,000JSC The International Bank of Azerbaijan-Georgia 154,378 92,881 125,444 21,281 28,935 22,688

JSC Isbank Georgia 142,915 114,422 130,224 39,761 12,692 -JSC PROGRESS BANK 142,795 70,966 127,215 73,978 15,580 17,475

JSC Silk Road Bank 95,409 22,909 64,016 24,112 31,394 30,000JSC ZIRAAT BANKASI A.S. Tbilisi Branch 62,864 13,044 44,189 34,645 18,675 -

JSC Capital Bank 55,880 22,322 52,477 40,690 3,403 17,120JSC Caucasus Development Bank -Georgia 41,724 15,428 21,402 18,146 20,323 20,039

Total 23,407,356 14,884,912 19,822,287 12,610,683 3,585,070 961,146

Appendix 3

Key Financial Indicators

32


Appendix 3

Key Financial IndicatorsKey Indicators of the Financial Performance for the 6 months period ended 30 June 2015

GEL Thousands

Interest Income

Net Interest Income

Fee and commission

income

Net fee and commission

incomeProvision for

loan loss

Net profit/ loss before

taxes

Net profit/ loss after

taxes

JSC Bank of Georgia 371,651 216,977 59,068 37,639 96,173 89,681 71,690

JSC TBC Bank 256,857 147,844 58,295 34,984 33,149 76,099 63,367

JSC Liberty Bank 120,789 63,206 21,746 21,746 19,119 14,257 14,257

JSC Bank Republic 59,426 39,024 13,620 11,003 8,174 24,850 21,509

JSC VTB Bank-Georgia 44,394 23,417 8,943 6,498 6,716 7,102 6,370

JSC ProCredit Bank 48,537 31,527 7,231 4,076 11,657 10,744 9,783

JSC Cartu Bank 48,217 35,560 2,437 (67) 12,941 47,232 41,051

JSC TeraBank 27,664 13,375 2,554 1,210 3,319 3,999 3,999

JSC BasisBank 25,926 16,553 2,637 1,070 7,683 5,697 5,420

JSC Finca Bank Georgia 23,163 17,504 3,056 480 3,648 1,097 888

JSC Halyk Bank Georgia 8,846 5,854 374 248 1,549 1,478 1,244

JSC PASHA Bank Georgia 7,579 5,940 34 (36) 3,214 (1,611) (1,611)

JSC Isbank Georgia 5,571 3,036 126 60 919 520 520

JSC PROGRESS BANK 6,002 3,145 92 (73) 234 919 707JSC The International Bank of Azerbaijan-Georgia 7,367 3,593 710 556 3,833 1,654 1,404

JSC Capital Bank 1,278 592 3,155 736 156 (1,433) (1,433)

JSC Silk Road Bank 3,177 2,333 407 161 (4,451) 2,568 2,568JSC ZIRAAT BANKASI A.S. Tbilisi Branch 1,436 1,259 418 236 88 1,139 1,139JSC Caucasus Development Bank - Georgia 1,170 966 97 18 318 116 116

Total 1,069,050 631,706 185,001 120,543 208,440 286,108 242,988

33


Appendix 4

Bank Contact Details

JSC VTB Bank (Georgia) CEOArchil KontselidzeMembers of Board of Directors: Mamuka MenteshashviliNiko ChkhetianiValerian GabuniaVladimer RobakidzeIrakli DolidzeAddress: 14, G. Chanturia St., 0114 Tbilisi, Georgia Tel: (995 32) 224 24 24 Fax: (995 32) 293 32 91E-mail: [email protected]: www.vtb.geSWIFT: UGEBGE22

JSC Terabank (previously Kor Standard Bank)

CEOThea LortkipanidzeMembers of Board of Directors:Vakhtang KhutsishiliZurab AzarashviliTemur AbuladzeAddress: 3. K.Tsamebuli Av.Tel. : +995 32 2 55 00 00 Fax: +995 32 2 50 77 07 E-mail: [email protected]: www.terabank.geSWIFT: KSBGGE22

JSC Capital BankCEOGiorgi GzirishviliMembers of Board of Directors:Giorgi GzirishviliSopio PanaetovaAddress: 1 Vertskhli StreetTel./Fax: +995 (32) 242 8888E-mail: [email protected]: www.capitalbank.geSWIFT: IJSMGE22

JSC CARTU BANKCEONato KhaindravaMembers of Board of Directors:David GaluashviliZurab GoguaBeqa KvaratskheliaGivi LebanidzeAddress: 39a ChavchavadzeTel./Fax:995 32 292 55 92(995 32) 2250 580 Website: www.cartubank.geSWIFT: CRTUGE22

JSC Bank of GeorgiaCEOMurtaz KikoriaMembers of Board of Directors:Levan KulijanishviliMikheil GomarteliArchil GachechiladzeGiorgi ChiladzeAlexander KatsmanTornike GogichaishviliAddress: 29a Gagarini StreetTel./Fax: (37410) 514040, 514060 E-mail: [email protected] Website: www.BOG.geSWIFT: BAGAGE22

JSC Silk Road BankCEOAlexander DzneladzeMembers of Board of Directors:Irakli KakabadzeNatia MerabishviliAdress: 2 Saarbrucken SquareTel./Fax: ( +995 32 ) 224 22 42 ( +995 32) 224 22 22 E-mail: [email protected]: www.silkroadbank.geSWIFT: DISNGE22

JSC TBC bankCEOVakhtang ButskhrikidzeMembers of Board of Directors:Paata GhadzadzeVano BaliashviliNino MasurashviliGiorgi TkhelidzeGiorgi ShagidzeDavid TsiklauriNikoloz KurdianiAddress: Marjanishvili Street 7 Tel./Fax: +(995 32) 227 27 27E-mail: [email protected]: www.tbcbank.geSWIFT: TBCBGE22

JSC Liberty BankCEOAleksi KhoroshviliMembers of Board of Directors:Zurab TsulaiaGeorge ArveladzeSandro RtveladzeAleksander LipartelianiArmen MatevosyanDavid VerulashviliDavid MelikidzeTaras (Tato) ChantladzeAddress: 74 Chavchavadze StreetTel./Fax: 0322 55 55 00 E-mail: [email protected]: www.libertybank.geSWIFT: LBRTGE22

T.C. ZIRAAT BANKASI A.S. TBILISI BRANCH

CEOMehmet UcarMembers of Board of Directors:BOGACHAN SEFIK KARAMURSELONUR FELENTENDER UNLUHALUK CENGIZAddress: D.Agmashenebeli Ave. No:148 Tbilisi, GeorgiaTel./Fax: (00 995 32) 294 37 04 294 37 14 E-mail: [email protected]: www.ziraatbank.comSWIFT: TCZBGE22

34


Appendix 4

Bank Contact Details (continued)

Bank REPUBLICCEOAntoine GabizonMembers of Board of Directors:Ramaz KukuladzeEric HauschildAddress: 2 Gr. Abashidze St Tel./Fax: (995 32) 2925 555 (995 32) 2925 544 E-mail: [email protected]: www.republic.geSWIFT: REPLGE22

BasisbankCEODavid TsaavaMembers of Board of Directors:Lia AslanikashviliDavid KakabadzeLevan GardaphkhadzeLi HuiAddress: 1, Ketevan Tsamebuli Ave. Tel./Fax: (995 32) 2 922 922 E-mail: [email protected] Website: www.basisbank.geSWIFT:CBASGE22

JSC Pasha Bank GeorgiaCEOShahin MammadovMembers of Board of Directors:Chingiz AbdullayevGeorge JaparidzeAddress: 15 Rustaveli AvenueTel./Fax: +995 32 215 88 11 +995 32 215 88 22 E-mail: [email protected] Website: www.pashabank.geSWIFT: PAHAGE22

JSC PROGRESS BANKCEOZviadi ImedidzeMembers of Board of Directors:Badri AreshidzeEkaterine MachavarianiAddress: 8 Baratashvili St Tel./Fax: (+995 32) 238 88 88E-mail: [email protected] Website: www.progressbank.geSWIFT: PRSGGE22

JSC FINCA Bank GeorgiaCEOVusal VerdiyevMembers of Board of Directors:Giorgi MirotadzeKetevan BurduliGiorgi SamadashviliAddress: Vazha Pshavela Ave 71 Tel./Fax: 2244949 E-mail: [email protected]: www.finca.geSWIFT: FGEOGE22

JSC International Bank of Azerbaijan-Georgia

CEOEmil AbasbayliMembers of Board of Directors:Ali HagverdiyevTamar GogolashviliAddress: 1 Leonidze Street Tel./Fax: +995 322 29 22 22E-mail: [email protected]: www.ibaz.geSWIFT: IBAZGE22

JSC Halyk Bank GeorgiaCEONikoloz GeguchadzeMembers of Board of Directors:Konstantin GordezianiShota ChkoidzeMarina TankarovaNino MeparishviliAddress: Kostava str. 74 Tel./Fax: +995 32 2 24 07 07 ; +995 32 2 36 53 98 E-mail: [email protected] Website: www.hbg.geSWIFT: HABGGE22

JSC Caucasus Development Bank –Georgia

CEORavil KaraevMembers of Board of Directors:Davit RusiaMariana PapavaAddress: 36 KhetagurovTel./Fax: (+995 32) 242 72 72 E-mail: [email protected] Website: www.cdb.geSWIFT: DEVGGE22

JSC Isbank Georgia

CEOAhmet TurkMembers of Board of Directors:Ozan gurMurat BilgicOmer KarakusAddress: L.Asatiani/Rustaveli Street Nr:1/25 Batumi Tel./Fax: 422 242 950 E-mail: N/AWebsite: www.isbank.geSWIFT: MIDLAM22

JSC ProCredit BankCEOKetevan KhuskivadzeMembers of Board of Directors:Davit GabelashviliAlex MatuaAddress: 21 Al. Kazbegi Ave Tel./Fax: (+995 32) 220 2222 (+995 32) 220 2223E-mail: [email protected]: www.procreditbank.geSWIFT: MIBGGE22

35


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 assetsCalculated as the total equity divided by the total assets.

Return on AssetsThe ratio of annualized net profit to average annual assets.

Return on EquityThe ratio of annualized net profit to average annual share capital.

Net Interest MarginThe ratio of annualized net interest income to annual average assets.

Tier 1 RatioThe ratio of Tier 1 Capital of the bank defined according to the rule set by NBG to risk weighted assets. Required minimum by the National Bank of Georgia – 7.2%.

Capital Adequacy RatioThe ratio of regulatory Capital of the bank defined according to the rule set by NBG to risk weighted assets. Required minimum by the National Bank of Georgia – 10.8%

Liquidity RatioCalculated as the liquid assets divided by the total assets.

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Documents

Georgian Banking Sector Overview - KPMG...*** The audited financial statements of the bank is the source of the 2015 year end information, while 2015 H1 and 2016 H1 results are based