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JSC Bank of Georgia (BGEO)

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Monday 26 February, 2007

JSC Bank of Georgia

Final Results

Bank of Georgia
                  

1.71 GEL/US$ period end
1.73 GEL/US$ Q4 2006 average
1.78 GEL/US$ 2006 year average

    JSC BANK OF GEORGIA ANNOUNCES ITS CONSOLIDATED Q4 2006 AND FULL-YEAR 2006
                                     RESULTS

-0-
*T
Millions, unless otherwise noted                         Q4 2006       Growth y-o-y (1)
                                                        Unaudited
                                                         GEL       US$
Bank of Georgia (Consolidated, IFRS Based)
Total Operating Income (Revenue)(2)                    40.2      23.4              106%
Recurring Operating Costs                              17.2      10.0               74%
Normalized Net Operating Income(3)                     23.0      13.4              139%
Pre-Bonus Result                                       17.5      10.2              149%
Net Income                                             10.3       6.0              113%
Consolidated EPS (Basic), GEL & US$(4)                 0.55      0.32

Millions, unless otherwise noted                        YTD 2006       Growth y-o-y (1)
                                                        Unaudited
                                                         GEL       US$
Bank of Georgia (Consolidated, IFRS Based)
Total Operating Income (Revenue)(2)                   111.1      64.8               75%
Recurring Operating Costs                              49.6      28.9               56%
Normalized Net Operating Income(3)                     61.5      35.9               94%
Pre-Bonus Result                                       46.1      26.9               95%
Net Income                                             27.6      16.1              102%
Consolidated EPS (Basic), GEL & US$(4)                 1.67      0.97               47%
Consolidated EPS (Fully Diluted), GEL & US$(5)         1.01      0.59               12%
ROAA(6)                                                 3.5%
ROAE(7)                                                17.1%
*T

(1) Compared to the same period in 2005; growth calculations based on GEL.

(2) Revenue includes Net Interest Income and Net Non-Interest Income.

(3) Normalized for the Net Non-Recurring Costs.

(4) Basic EPS equals to Net Income of the period divided by weighted average
outstanding shares for the period.

(5) EPS Fully Diluted equals to Net Income of the period divided by the number
of outstanding ordinary shares as of the period end plus number of ordinary
shares in contingent liabilities.

(6) Return on Average Total Assets equals to Net Income for the year divided by
quarterly average Total Assets for the year.

(7) Return on Average Total Shareholders' Equity equals Net Income for the year
divided by quarterly average Total Shareholders' Equity for the year.

About Bank of Georgia

Bank of Georgia, a leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans and equity in Georgia. The
major component of the Galt & Taggart Index, the bank has 101 branches and over
400,000 retail and approximately 47,000 corporate current accounts. The bank
offers a full range of retail banking and corporate and investment banking
services to its customers across Georgia. The bank also provides a wide range of
corporate and retail insurance products through its wholly-owned subsidiary,
BCI, as well as asset & wealth management services.

Bank of Georgia has, as of the date hereof, the following credit ratings:

-0-
*T
Standard & Poor's    'B+/B'                             Stable
Moody's              'B3/NP' (FC) & 'Baa3/P-3' (LC)     Stable
FitchRatings         'B/B'                              Stable
*T

For further information, please visit www.bog.ge/ir or contact:

-0-
*T
 Lado Gurgenidze                   Irakli Gilauri              Macca Ekizashvili
Chairman of the Supervisory Board  Chief Executive Officer     Head of Investor Relations
+995 32 444 103                    +995 32 444 109             +995 32 444 256
lgurgenidze@bog.ge                 igilauri@bog.ge             ir@bog.ge
*T

This news report is presented for general informational purposes only and should
not be construed as an offer to sell or the solicitation of an offer to buy any
securities. Certain statements in this news report are forward-looking
statements and, as such, are based on the managements current expectations and
are subject to uncertainty and changes in circumstances.

The financial information as of the fourth quarter 2006 and the year ended 31
December 2006 contained in this news report is unaudited and reflects the best
estimates of management. The bank's actual results may differ significantly from
the amounts reflected herein as a result of various factors.

Bank of Georgia (LSE: BGEO, GSE: GEB), a leading Georgian universal bank,
announced today its Q4 2006 and full-year 2006 consolidated results (IFRS Based,
unaudited, derived from management accounts), reporting record Net Income of GEL
10.3 million in Q4 2006 (up 113% y-o-y), or GEL 0.55 per share (up 2% y-o-y).

For the full year 2006, the bank reported a record Net Income of GEL 27.6
million in 2006 (up 102% y-o-y), or GEL 1.67 per share (up 47% y-o-y).

Q4 2006 Summary

The bank's Q4 2006 Normalized Net Operating Income ('NNOI'), a key metric
observed by the management, increased 139% y-o-y to GEL 23.0 million, driven by
Net Interest Income of GEL 26.2 million, (up 122% y-o-y) and Net Non-Interest
Income of GEL 14.0 million (up 81% y-o-y). Pre-Bonus Result ('PBR'), another key
metric observed by the management, grew 149% y-o-y to GEL 17.5 million in Q4
2006.

Full-Year 2006 Summary

On a full year 2006 basis, the bank reported strong consolidated results with a
record Net Income of GEL 27.6 million, up 102% y-o-y. Revenue grew 75% y-o-y to
GEL 111.1 million, driven by a 74% increase y-o-y of Net Interest Income and a
76% increase y-o-y of Net Non-Interest Income, and more than offset the 56%
y-o-y growth of Recurring Operating Costs to GEL 49.6 million. As a result of
the improved operating leverage, NNOI grew 94% y-o-y to GEL 61.5 million. PBR
grew 95% y-o-y to a record GEL 46.1 million due to Net Non-Recurring Cost
containment and modest growth of Cost of Credit (2.9% in 2006 vs. 2.5% in 2005).
BCI and Galt & Taggart Securities, the key wholly-owned subsidiaries of the
bank, generated standalone Net Income of GEL 0.8 million and GEL 1.8 million,
respectively.

The bank's consolidated Total Assets reached GEL 1.2 billion by the year end
2006, up 169% y-o-y, with the bank overtaking in October 2006 the former leader
to become the largest Georgian bank by assets (as well as by loans and equity).
The bank's corporate, retail and private banking Gross Loans To Clients grew by
129%, 131% and 172% y-o-y, respectively, to GEL 409.2 million, GEL 281.6 million
and GEL 23.0 million, respectively, contributing to the 137% y-o-y growth of Net
Loans To Clients to GEL 714.2 million, up 137%. The balance sheet growth in 2006
resulted in an approximately 10% market share gain by assets and approximately
8% market share gain by gross loans, resulting in the market share of
approximately 28% and 27% by total assets and gross loans, respectively, at the
year end.(8) The bank's non-deposit funding base grew 347% y-o-y to GEL 223.5
million at the year end, which includes the debt funding raised from Citigroup,
Merrill Lynch, Thames River Capital, HBK Investments and World Business Capital,
among others. Client Deposits (GEL 579.2 million at the year end) increased by
115% y-o-y, contributing to a 5.5 % market share gain by total deposits.

Rapid growth across the board throughout the year, as well as the effect of the
equity increase following the listing of Bank of Georgia shares in the form of
GDRs on the London Stock Exchange in November 2006, resulted in ROAE of 17.1%
for the year, while ROAA remained flat compared at 3.5%. The equity book value
per share stood at GEL 14.8 at the year end, up 137% y-o-y.

(8) Market share data are derived from the information published by the National
Bank of Georgia (www.nbg.gov.ge) and represent an aggregation of standalone
financial information filed by Georgian banks.

Strategic Business Unit Overview

Corporate & Investment Banking (CIB)

Discussion Of Results

Allocated Revenues grew 58% y-o-y, impacted by the growth in Net Interest Income
and Net Non Interest Income. Operating leverage of CIB has improved, as the
growth rate of allocated Costs (13% y-o-y, driven primarily by the headcount
expansion and higher performance-based compensation) lagged the allocated
Revenues. Net Loans grew 133% y-o-y to GEL 394.2 million, driven by increased
lending to high-end corporates and rapid growth of the SME loan book. Client
Deposits grew 154% y-o-y to GEL 295.1 million.

Highlights

    --  Won the tender to service the Tbilisi municipal government account on an
        exclusive basis. The Tbilisi municipal budget was approximately GEL 470
        million last year, making it one of the top corporate/government clients
        in the country.

    --  Started servicing on an exclusive basis the Millennium Challenge
        account. Millennium Challenge is a US government structured aid program
        with approximately US$300 million earmarked over a five-year period for
        various infrastructure-related and reform-enhancing projects in Georgia.

    --  Continued financing and servicing on an exclusive basis the new Tbilisi
        Airport terminal construction project, executed on a BOT basis by TAV
        Urban, the leading airport operator in Turkey. The US$62 million new
        terminal was opened in February 2007.

    --  Expanded the number of corporate clients using the bank's payroll
        services to over 480. At the year end, approximately 83,500 individual
        clients were serviced through the corporate payroll programs
        administered by the bank.

Retail Banking (RB)

Discussion Of Results

Allocated Revenues grew 74% y-o-y, impacted by the growth in Net Interest Income
and Net Non Interest Income. Operating leverage of RB has improved, as the
growth rate of allocated Costs (57% y-o-y, driven primarily by the branch and
headcount expansion and higher performance-based compensation) lagged the
allocated Revenues. Net Loans grew 135% y-o-y to GEL 271.1 million, while Client
Deposits grew 43% y-o-y to GEL 205.7 million, driven primarily by the growth of
Current Account Balances and Demand Deposits.

Highlights

    --  Increased the number of retail current accounts from 141,000 at the
        beginning of the year to more than 415,000 at the year end.

    --  Launched several important client acquisition initiatives, including
        co-branded loyalty debit card products jointly with Aversi, the leading
        pharmacy chain, GeoCell, a leading mobile operator, and Populi, the
        leading branded grocery store chain.

    --  Increased the number of branches (service centers) from 56 at the
        beginning of the year to 99 at the year end, including 11 branches
        acquired from Intellect Bank and 23 branches opened in all stations of
        the Tbilisi Metro (subway).

    --  Increased the number of debit cards outstanding from 63,000 at the
        beginning of the year to 285,000 at the year end and continued to make
        gains in merchant acquiring as the installed POS footprint grew to 471.
        Total number of cards in service by Georgian Card grew from 91,000 at
        the beginning of the year to 370,000 at the year end, while the number
        of transaction authorisations processed by Georgian Card grew 400% y-o-y
        to approximately 8.0 million (compared to approximately 1.6 million in
        2005).

    --  Continued investing in the electronic channels, as the number of ATMs
        grew to 124 at the year end (up from 37 at the beginning of the year),
        number of mobile banking users reached 13,700, and number of registered
        Internet banking users grew 776% y-o-y to 37,377.

    --  Commenced point-of-sale (POS) consumer lending effort to complement the
        branch-based general-purpose consumer lending, installing 89 points of
        presence on the retailers' premises by year-end. POS loan originations
        of GEL 31.0 million in 2006 resulted in POS loans outstanding of GEL
        22.2 million at the year end.

    --  Mortgage loan originations of GEL 51.6 million resulted in mortgage
        loans outstanding at the year end of GEL 64.5 million, up 96% from the
        prior year.

    --  Car loan originations of GEL 9.8 million resulted in car loans
        outstanding at the year end of GEL 9.8 million, up 250% from the prior
        year.

    --  Credit cards were launched at the end of the year.

Insurance

Discussion Of Results

Standalone Revenues of BCI, the bank's wholly-owned insurance subsidiary, grew
44% y-o-y, impacted by the growth in both corporate and consumer lines of
business, with standalone Gross Premiums Written up 28% y-o-y to GEL 10.1
million. Standalone Operating Costs were GEL 4.1 million, up 37% y-o-y, and
standalone Net Claims Incurred were GEL 2.0 million, up 157% y-o-y, reflecting
the growth of the business.

Highlights

    --  Completed the integration of the business of Europace, the insurance
        company acquired in November 2005.

    --  Acquired in December 2006 Aldagi, a leading insurance company in
        Georgia. Total consideration was GEL 13.2 million, or approximately 0.94
        times Aldagi's Gross Premiums Written in 2006. The pro forma market
        share of BCI and Aldagi by Gross Premiums Written in 2006 exceeded 40%.
        Due to the fact that Aldagi was acquired substantially in December, its
        effect on the results on Insurance operations was immaterial.

    --  Launched Chemebi, the umbrella brand for all consumer lines of business.

Asset & Wealth Management (A&WM)

Discussion Of Results(9)

Allocated Revenues grew 217% y-o-y, impacted by the growth of Net Interest
Income (driven primarily by the growth of the Private Banking loan book) and Net
Non Interest Income (driven primarily by the 368% y-o-y growth of standalone
Revenues of Galt & Taggart Securities (Georgia)), to GEL 5.2 million. The growth
of standalone Revenues of Galt & Taggart Securities (Georgia) was driven
primarily by Commissions From Brokerage (GEL 1.6 million, up 239% y-o-y), Gains
From Trading Securities (GEL 0.6 million, up 2,656% y-o-y), and Asset Management
& Administration Fees (GEL 0.5 million, up 1,219% y-o-y). Allocated Costs grew
255% y-o-y, impacted primarily by the consolidation of Galt & Taggart Capital
and its portfolio companies into A&WM, growth of standalone Recurring Operating
Costs of Galt & Taggart Securities due to headcount growth and higher
performance-based and other compensation, and growth in Commissions, Depository
and Stock Exchange Fees at Galt & Taggart Securities (Georgia) due to the growth
of the brokerage volume of business, while allocated Private Banking Costs of
GEL 1.1 million were up 11% y-o-y. As the earnings contribution of Private
Banking and Galt & Taggart Securities (Georgia) were offset by the consolidated
loss of Galt & Taggart Capital (and certain portfolio companies), impacted
primarily by the start-up costs of the business, while the BCI Pension Fund had
negligible impact on earnings, allocated Net Income of A&WM was GEL 0.5 million.

(9) In 2006, A&WM comprised Private Banking, Galt & Taggart Securities
(Georgia), the asset management activities related to the BCI pension fund and
Galt & Taggart Capital.

Highlights

    --  The number of Private Banking clients grew from 460 at the beginning of
        the year to 873 at the year end.

    --  Private Banking Client Deposits grew 567% y-o-y to GEL 65.4 million at
        the year end, driven primarily by the growth of Current Account Balances
        and Time Deposits.

    --  Private Banking mortgage loan originations of GEL 13.9 million resulted
        in mortgage loans outstanding at the year-end of GEL 17.3 million, up
        248% from the prior year.

    --  Private Banking car loan originations of GEL 2.8 million resulted in car
        loans outstanding at the year-end of GEL 2.3 million, up 672% from the
        prior year.

    --  Galt & Taggart Securities (Ukraine) obtained the requisite licenses and
        commenced operations in November 2006.

    --  Assets Under Custody at Galt & Taggart Securities (Georgia) grew 391%
        y-o-y to GEL 339 million at the year end.

    --  The share of trading volume on the Georgian Stock Exchanges and OTC of
        Galt & Taggart Securities (Georgia) in 2006 was 90%, up from 43% in
        2005.

    --  Assets Under Management at the BCI Pension Fund grew 298% y-o-y to GEL
        0.5 million at the year end, while the number of BCI Pension Fund
        members grew from 1,049 at the beginning of the year to 2,154 at the end
        of the year.

    --  Galt & Taggart Capital raised GEL 6.2 million through a placement of
        ordinary shares and was admitted to trading on the Georgian Stock
        Exchange in November 2006.

    --  Named the best brokerage house in Georgia by the Foreign Exchange
        Association of Georgia

Comments

'In 2006, we continued to expand our business through a combination of organic
growth, development of alternative distribution channels and selected
acquisitions. We opened a record number of branches, gained over 250,000 new
retail clients, expanded our coverage of corporate clients and continued to
invest in our technology and people. In 2006, we achieved a number of
significant milestones: became the first Georgian company to have been listed on
the main market of the London Stock Exchange; became the first Georgian entity
to have been rated by all three major rating agencies; expanded into Ukraine
through the establishment of Galt & Taggart Securities (Ukraine) and purchase of
a small stake in a Ukrainian bank; and entered the merchant banking business
through the establishment of Galt & Taggart Capital. I am pleased that our
progress has been noticed, as both Euromoney and The Banker named us the bank of
the year in Georgia in 2006. Above all, I am delighted that we were able to grow
our Basic EPS 47% y-o-y to GEL 1.67', said Lado Gurgenidze, Chairman of the
Supervisory Board.

Commenting on 2007, Gurgenidze added, 'our 2007 objectives are clear: continuing
to invest in all areas of our domestic franchise to sustain growth, while
remaining highly disciplined in credit management, continuing our regional
expansion through selective acquisitions and investments in Ukraine and
elsewhere, and keeping a keen eye on the expansion-driven growth of our cost
base to ensure that we operate as effectively and efficiently as possible during
the current high-growth phase'.

                              INCOME STATEMENT DATA

-0-
*T
Period Ended 31 December                    Q4 '06       Y-O-Y        2006         Y-O-Y       2005
Consolidated, IFRS Based                 U$(1)      GEL Growth   US$(1)       GEL Growth   US$(2) GEL
 000s, unless otherwise noted               (Unaudited)            (Unaudited)               (Audited)
   Interest Income                     22,173   37,993     140% 59,011   101,116      95% 28,916  51,832
   Interest Expense                     6,897   11,818     193% 19,619    33,618     157%  7,298  13,081
Net Interest Income                    15,276   26,175     122% 39,392    67,498      74% 21,618  38,751
   Fee & Commission Income              3,453    5,917      66% 12,914    22,129      67%  7,402  13,268
   Fee & Commission Expense               981    1,680   N/A(3)  2,728     4,675     184%    918   1,646
Net Fee & Commission Income             2,473    4,237      18% 10,186    17,454      50%  6,484  11,622
   Income From Documentary Operations     667    1,142      26%  2,751     4,714      62%  1,625   2,913
   Expense On Documentary Operations      214      367     123%    734     1,257      70%    412     739
Net Income From Documentary Operations    453      776       5%  2,018     3,457      59%  1,213   2,174
Net Foreign Currency Related Income     2,409    4,127     124%  7,015    12,020      85%  3,630   6,507
    Net Insurance Income                  880    1,508      47%  2,716     4,654      44%  1,809   3,242
 Brokerage & Asset Management Income      726    1,244     974%  1,755     3,007     426%    319     572
 Realised Net Investment Gains            304      520   NMF(4)    715     1,226   NMF(4)      -       -
 Other                                    929    1,591     278%  1,015     1,740     207%    316     566
Net Other Non-Interest Income           2,839    4,864     212%  6,202    10,627     143%  2,443   4,380
Net Non-Interest Income                 8,173   14,004      81% 25,420    43,558      76% 13,770  24,683
Total Operating Income (Revenue)       23,448   40,179     106% 64,812   111,056      75% 35,389  63,434
 Personnel Costs                        4,812    8,246      86% 13,705    23,484      43%  9,136  16,376
 Selling, General & Administrative
  Expenses                              2,708    4,641     102%  8,298    14,219     112%  3,736   6,697
 Procurement & Operations Support
  Expenses                              1,425    2,441     197%  3,100     5,312     139%  1,241   2,224
 Depreciation & Amortization            1,011    1,732      58%  3,246     5,562      31%  2,360   4,230
 Other Operating Expenses                  71      122     -90%    570       976     -54%  1,194   2,140
Total Recurring Operating Costs        10,027   17,182      74% 28,919    49,554      56% 17,667  31,667
Normalized Net Operating Income        13,421   22,997     139% 35,893    61,502      94% 17,722  31,767
Net Non-Recurring Costs (Income)          538      922       0%    538       922     -53%  1,095   1,962
Profit Before Provisions And Bonuses   12,883   22,075     153% 35,355    60,580     103% 16,627  29,805
Net Provisions For Loan Losses          4,140    7,094     188% 10,364    17,759     120%  4,501   8,069
Provisions For (Recovery Of) Other
 Assets                                (1,475)  (2,528)    219% (1,907)   (3,268)     78% (1,027) (1,841)
Pre-Bonus Result                       10,218   17,509     149% 26,898    46,089      95% 13,153  23,577
Bonuses & Share Based Compensation
 Expenses                               2,399    4,111      86%  6,261    10,728      57%  3,817   6,843
Pre-Tax Income                          7,819   13,398     178% 20,637    35,361     111%  9,336  16,734
   Income Tax Expenses                  1,837    3,147   N/A(3)  4,557     7,809     151%  1,734   3,108
Net Income                              5,982   10,251     113% 16,079    27,552     102%  7,602  13,626
Weighted Average Shares Outstanding
 (thousands)                                                              16,506                  11,980
Fully Diluted Number Of Shares At Year
 End (thousands)                                                          27,229                  15,115
EPS (Basic)                                                       0.97      1.67      47%   0.63    1.14
EPS (Fully Diluted)                                               0.59      1.01      12%   0.50    0.90
BANK OF GEORGIA 2006 SEGMENT RESULTS
                           Total Operating Income (Revenues)                   Net Income
(GEL, thousands)                2006   Y-O-Y Growth       2005        2006   Y-O-Y Growth           2005
CIB                           33,222            58%     20,996      14,420            96%          7,365
RB                            42,809            74%     24,658       8,417           123%          3,775
A&WM(5)                        5,151           217%      1,626         461           246%            133
Insurance                      5,012            44%      3,470         271             8%            250
Corporate Center/Other        24,863            96%     12,684       3,983            89%          2,103
TOTAL                        111,056            75%     63,434      27,552           102%         13,626
*T

(1) Converted to U.S. dollars for convenience using a period end exchange rate
of GEL1.7135 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period end exchange rate as reported by National Bank of Georgia as at 31
December 2006.

(2) Converted to U.S. dollars for convenience using a period end exchange rate
of GEL1.7925 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period end exchange rate as reported by National Bank of Georgia as at 31
December 2005.

(3) Not Applicable

(4) Not Meaningful

(5) For the full year 2006, the bank's merchant banking operation including,
without limitation, G&T Capital results have been consolidated into A&WM. On a
standalone basis, i.e. excluding the start up cost of Galt & Taggart Capital,
A&WM posted standalone Net Income of GEL 1.8 million. In 2007, the bank intends
to separate A&WM into several business units and will report segment results
accordingly.

                               BALANCE SHEET DATA

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The Year Ended 31 December                    2006           Growth(2)           2005
Consolidated, IFRS Based                  US$(1)         GEL      Y-O-Y     US$(3)          GEL
000s, unless otherwise noted               (Unaudited)                         (Audited)
Cash And Cash Equivalents                74,053     126,890        140%    29,547       52,963
Loans And Advances To Credit
 Institutions                            41,791      71,609         90%    21,016       37,671
  Mandatory Reserve With NBG             35,869      61,461        112%    16,166       28,977
  Other Accounts With NBG                   138         236        -94%     2,384        4,273
  Balances With And Loans To Other
   Banks                                  5,785       9,912        124%     2,466        4,421
Treasuries And Equivalents              109,378     187,420       8120%     1,272        2,280
Other Fixed Income Instruments            3,387       5,804        -21%     4,081        7,315
  Gross Loans To Clients                433,076     742,075        133%   177,800      318,706
  Less: Reserve For Loan Losses         (16,291)    (27,914)        64%    (9,493)     (17,016)
Net Loans To Clients                    416,785     714,161        137%   168,307      301,690
Investments In Other Business
 Entities, Net                              952       1,632         61%       565        1,012
Property And Equipment Owned, Net        38,755      66,407         85%    19,980       35,815
Intangible Assets Owned, Net              2,040       3,495         79%     1,091        1,955
Goodwill                                 21,807      37,366        552%     3,197        5,730
Tax Assets - Current And Deferred           493         845        -67%     1,434        2,570
Prepayments And Other Assets             15,266      26,159        104%     7,159       12,832
Total Assets                            724,708   1,241,788        169%   257,647      461,833

Client Deposits                         338,007     579,175        115%   150,601      269,952
Deposits And Loans From Banks             7,627      13,069        -55%    16,098       28,855
Borrowed Funds                          130,444     223,516        347%    27,904       50,018
Insurance Related Liabilities             4,493       7,699         94%     2,210        3,962
Issued Fixed Income Securities              814       1,395         22%       638        1,143
Tax Liabilities - Current And
 Deferred                                 4,370       7,488        259%     1,164        2,087
Accruals And Other Liabilities           22,537      38,617        169%     8,008       14,354
Total Liabilities                       508,292     870,959        135%   206,623      370,371

Ordinary Shares                          14,708      25,202         71%     8,217       14,729
Share Premium                           154,520     264,770        704%    18,367       32,922
Treasury Shares                            (584)     (1,001)      1136%       (45)         (81)
Retained Earnings                        24,114      41,319         74%    13,278       23,801
Revaluation And Other Reserves            5,019       8,600         60%     2,995        5,369
Net Income For The Period                16,079      27,552        102%     7,602       13,626
Shareholders' Equity Excluding
 Minority Interest                      213,856     366,442        306%    50,413       90,366
Minority Interest                         2,560       4,387        300%       611        1,096
Total Shareholders' Equity              216,416     370,829        305%    51,024       91,462
Total Liabilities and Shareholder's
 Equity                                 724,708   1,241,788        169%   257,647      461,833

Shares Outstanding                               25,202,009                         14,728,704
Book Value Per Share(4)                    8.61       14.75        137%      3.47         6.22
*T

(1) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7135 per US$1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by National Bank of Georgia as at 31
December 2006.

(2) Compared to the same period of 2005; growth calculations based on GEL
values.

(3) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7925 per US$1.00, being the official Georgian Lari to U.S. dollar
period-end exchange rate as reported by National Bank of Georgia as at 31
December 2005.

(4 )Book Value Per Share equals to Equity plus Treasury Shares, divided by the
total number of outstanding Ordinary Shares.

                                   KEY RATIOS

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                                                               2006        2005
Consolidated Unless Otherwise Noted
IFRS Based, Unaudited
Profitability Ratios
ROAA( 1)                                                           3.5%          3.5%
ROAE(2)                                                           17.1%         20.1%
Interest Income To Average Interest Earning Assets (3)            16.7%         18.3%
Cost Of Funds (4)                                                  5.8%          4.2%
Net Spread (5)                                                    10.9%         14.1%
Net Interest Margin (6)                                           11.2%         13.7%
Loan Yield (7)                                                    17.2%         18.2%
Interest Expense To Interest Income                               33.2%         25.2%
Net Non-Interest Income To Average Total Assets                    5.6%          6.3%
Net Non-Interest Income To Revenue (8)                            39.2%         38.9%
Net Fee And Commission Income To Average Interest Earning
 Assets (9)                                                        3.5%          4.9%
Net Fee And Commission Income To Revenue                          18.8%         21.7%
Operating Leverage (10)                                           23.8%          1.5%
Recurring Earning Power (11)                                       7.8%          7.6%
Net Income To Revenue                                             24.8%         21.5%

Efficiency Ratios
Operating Cost To Average Total Assets (12)                        6.4%          8.1%
Cost To Average Total Assets (13)                                  7.8%         10.3%
Cost / Income (14)                                                55.1%         63.8%
Cost / Income, Bank of Georgia, Standalone (15)                   51.2%         62.0%
Total Employee Compensation Expense To Revenue (16)               30.8%         36.6%
Total Employee Compensation Expense To Cost                       55.9%         57.4%
Total Employee Compensation Expense To Average Total Assets        4.4%          5.9%

Liquidity Ratios
Net Loans To Total Assets (17)                                    57.5%         65.3%
Average Net Loans To Average Total Assets                         61.7%         58.6%
Interest Earning Assets To Total Assets                           78.8%         75.6%
Average Interest Earning Assets To Average Total Assets           77.5%         72.0%
Liquid Assets To Total Assets (18)                                26.6%         15.4%
Net Loans To Client Deposits                                     123.3%        111.8%
Average Net Loans To Average Client Deposits                     115.3%         90.7%
Net Loans To Total Deposits (19)                                 120.6%        101.0%
Net Loans To Total Liabilities                                    82.0%         81.5%
Total Deposits To Total Liabilities                               68.0%         80.7%
Client Deposits To Total Deposits                                 97.8%         90.3%
Client Deposits To Total Liabilities                              66.5%         72.9%
Current Account Balances To Client Deposits                       60.7%         42.0%
Demand Deposits To Client Deposits                                 6.2%         13.5%
Time Deposits To Client Deposits                                  33.1%         44.6%
Total Deposits To Total Assets                                    47.7%         64.7%
Client Deposits To Total Assets                                   46.6%         58.5%
Client Deposits To Total Equity (Times) (20)                      1.56          2.95
Due From Banks / Due To Banks (21)                                 548%          131%
Total Equity To Net Loans                                         51.9%         30.3%
Leverage (Times) (22)                                              2.3           4.0

Asset Quality
NPLs (in GEL) (23)                                          16,266,200    14,428,952
NPLs To Gross Loans To Clients (24)                                2.2%          4.5%
Cost Of Credit (25)                                                2.9%          2.5%
Reserve For Loan Losses To Gross Loans To Clients (26)             3.8%          5.3%
NPL Coverage Ratio (27)                                          171.6%        117.9%
Total Equity To Average Net Loans To Clients                      77.0%         39.7%

Capital Adequacy:
Equity To Total Assets                                            29.9%         19.8%
BIS Tier I Capital Adequacy Ratio (28)                            35.6%         23.0%
BIS Total Capital Adequacy Ratio (29)                             38.2%         24.0%
NBG Tier I Capital Adequacy Ratio (30)                            23.2%         11.1%
NBG Total Capital Adequacy Ratio (31)                             28.5%         13.0%
Note: Averages are calculated on a quarterly basis for the
 period
                                                                  2006          2005
Per Share Values:
Basic EPS (GEL) (32)                                              1.67          1.14
Basic EPS (US$)                                                   0.97          0.63
Fully Diluted EPS (GEL) (33)                                      1.01          0.90
Fully Diluted EPS (US$)                                           0.59          0.50
Book Value Per Share (GEL) (34)                                  14.75          6.22
Book Value Per Share (US$)                                        8.61          3.47
Change y-o-y                                                       137%           26%
Ordinary Shares Outstanding - Weighted Average              16,505,701    11,980,471
Ordinary Shares Outstanding - Period End                    25,202,009    14,728,704
Ordinary Shares Outstanding - Fully Diluted                 27,229,418    15,115,373

Selected Operating Data:
Full Time Employees (FTE)                                        2,226         1,174
FTEs, Bank of Georgia Standalone                                 1,601           914
Total Assets Per FTE (GEL Thousands)                               558           393
Total Assets Per FTE, Bank of Georgia Standalone (GEL
 Thousands)                                                        776           505
Branches                                                            99            56
ATMs                                                               124            37
Plastic Cards (Thousands)                                          286            63
POS Terminals                                                      471           N/A
Note: Averages are calculated on a quarterly basis for the
 period
*T

NOTES TO KEY RATIOS

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1    Return On Average Total Assets (ROAA) equals to Net Income of the period divided by
      quarterly Average Total Assets for the same period;
2    Return On Average Total Equity (ROAE) equals to Net Income of the period divided by
      quarterly Average Total Equity for the same period;
3    Average Interest Earning Assets are calculated on a quarterly basis; Interest Earning
      Assets include: Loans And Advances To Credit Institutions, Treasuries And Equivalents,
      Other Fixed Income Instruments and Net Loans to Clients;
4    Cost Of Funds equals to Interest Expense of the period divided by quarterly Average
      Interest Bearing Liabilities; Interest Bearing Liabilities Include: Client Deposits,
      Deposits And Loans From Banks, Borrowed Funds and Issued Fixed Income Securities;
5    Net Spread equals to Interest Income To Average Interest Earning Assets less Cost Of Funds;
6    Net Interest Margin equals to Net Interest Income of the period divided by quarterly
      Average Interest Earning Assets of the same period;
7    Loan Yield equals to Interest Income, less Net Provisions For Loan Losses, plus Recovery
      For Other Assets, divided by quarterly Average Gross Loans To Clients;
8    Revenue equals Total Operating Income;
9    Net Fee And Commission Income includes Net Income From Documentary Operations of the
      period;
10   Operating Leverage equals to percentage change in Revenue less percentage change in Total
      Costs;
11   Recurring Earning Power equals to Profit Before Provisions and Bonuses of the period
      divided by average Total Assets of the same period;
12   Operating Cost equals to Total Recurring Operating Costs;
13   Cost includes Total Recurring Operating Costs, Net Non-Recurring Costs (Income) and Bonuses
      & Share Based Compensation Expenses;
14   Cost/Income Ratio equals to Costs of the period divided by Total Operating Income
      (Revenue);
15   Cost/Income, Bank of Georgia, standalone, equals to non-consolidated Total Costs of the
      bank of the period divided by non-consolidated Revenue of the bank of the same period;
16   Total Employee Compensation Expense includes Personnel Costs and Bonuses & Share-Based
      Compensation Expenses;
17   Net Loans equal to Net Loans To Clients;
18   Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG, Balances With
      And Loans To Other Banks, Treasuries And Equivalents and Other Fixed Income Securities as
      of the period end and are divided by Total Assets as of the same date;
19   Total Deposits include Client Deposits and Deposits And Loans from Banks;
20   Total Equity equals Total Shareholders' Equity;
21   Due From Banks/Due To Banks equals to Loans And Advances To Credit Institutions divided by
      Deposits And Loans From Banks;
22   Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as
      of the same date;
23   NPLs (in GEL) equals to total gross non-performing loans as of the period end; non-
      performing loans are loans that have debts in arrears for more than 90 calendar days;
24   Gross Loans equals to Gross Loans To Clients;
25   Cost Of Credit equals to Net Provision For Loan Losses of the period, less recovery of
      other assets, divided by quarterly average Net Loans To Clients over the same period;
26   Reserve For Loan Losses To Gross Loans To Clients equals to reserve for loan losses as of
      the period end divided by gross loans to clients as of the same date;
27   NPL Coverage Ratio equals to Reserve For Loan losses as of the period end divided by NPLs
      as of the same date;
28   BIS Tier I Capital Adequacy Ratio equals to Tier I Capital as of the period end divided by
      Total Risk Weighted Assets as of the same date, both calculated in accordance with the
      requirements of Basel Capital Accord I;
29   BIS Total Capital Adequacy Ratio equals to Total Capital as of the period end divided by
      Total Risk Weighted Assets as of the same date, both calculated in accordance with the
      requirements of Basel Capital Accord I;
30   NBG Tier I Capital Adequacy Ratio equals to Tier I Capital as of the period end divided by
      Total Risk Weighted Assets as of the same date, both calculated in accordance with the
      requirements the National Bank of Georgia;
31   NBG Total Capital Adequacy Ratio equals to Total Capital as of the period end divided by
      Total Risk Weighted Assets as of the same date, both calculated in accordance with the
      requirements of the National Bank of Georgia;
32   Basic EPS equals to Net Income of the period divided by the weighted average number of
      outstanding ordinary shares over the same period;
33   Fully Diluted EPS equals to net income of the period divided by the number of outstanding
      ordinary shares as of the period end plus number of ordinary shares in contingent
      liabilities;
34   Book Value Per Share equals to Total Equity plus Treasury Shares, divided by the total
      number of outstanding Ordinary Shares.
*T