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JSC Bank of Georgia (BGEO)

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Tuesday 13 November, 2007

JSC Bank of Georgia

3rd Quarter Results

Bank of Georgia
                  

1.66 GEL/US$ September 2007 period end
1.69 GEL/US$ 9 Month 2007 average
1.74 GEL/US$ September 2006 period end
1.79 GEL/US$ 9 Month 2006 average

   JSC BANK OF GEORGIA ANNOUNCES CONSOLIDATED Q3 AND YEAR-TO-DATE 2007 RESULTS

-0-
*T
Millions, unless otherwise noted                                      Q3 2007                         Growth y-o-y (1)
                                              Pro Forma Consolidated(a) Bank of Georgia Consolidated
                                                     GEL            US$          GEL              US$
Bank of Georgia (Consolidated, Unaudited,
 IFRS Based)
Total Operating Income (Revenue)(2)                 62.5           38.1         56.2             33.9             105%
Recurring Operating Costs                           26.6           16.2         21.6             13.0              62%
Normalized Net Operating Income(3)                  35.9           21.9         34.6             20.9             146%
Pre-Bonus Result                                    30.4           18.6         29.5             17.8             167%
Net Income                                          18.2           11.2         17.5             10.6             179%

Millions, unless otherwise noted                                9 Months 2007 (YTD)                   Growth y-o-y (1)
                                              Pro Forma Consolidated(a) Bank of Georgia Consolidated
                                                     GEL            US$          GEL              US$
Bank of Georgia (Consolidated, Unaudited,
 IFRS Based)
Total Operating Income (Revenue)(2)                171.0          103.1        149.4             90.1             107%
Recurring Operating Costs                           70.8           42.7         58.5             35.3              74%
Normalised Net Operating Income(3)                 100.2           60.4         90.8             54.8             134%
Pre-Bonus Result                                    91.0           54.9         82.8             50.0             190%
Net Income                                          56.0           33.8         49.9             30.1             188%
Consolidated EPS (Basic), GEL & US$(4)              2.18           1.32         1.95             1.17              84%
Consolidated EPS (Diluted), GEL & US$(5)            2.05           1.24         1.83             1.10             102%
ROAA(6)%, annualised                                 3.4                        3.5%
ROA (7)%, annualised                                 2.7                        2.8%
ROAE(8)%, annualised                                15.5                       16.2%
ROE(9)%, annualised                                 14.0                       14.3%
*T

(a) Pro Forma Consolidated Statements include 9 months 2007 financial results of
Ukrainian Bank for Restructuring and Development ('UBDP') on a pro forma basis.

Bank of Georgia (LSE:BGEO) (GSE:GEB), the leading Georgian universal bank,
announced today its Q3 2007 and YTD 2007 consolidated results (IFRS based,
derived from management accounts), reporting record quarterly Net Income of GEL
17.5 million in Q3 2007, (up 179.2% y-o-y) or US$0.40 per share (Basic, up 80.7%
y-o-y).

Net Income on the consolidated basis for the nine months reached GEL 49.9
million (up 188.2% y-o-y), or US$1.17 per share (Basic, up 84.4 % y-o-y).

(1) Compared to the same period in 2006; growth calculations based on GEL,
except for EPS growth

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

(3) Normalized for Net Non-Recurring Costs.

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

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

(6) Return on Average Total Assets equals annualised Net Income for the period
divided by the average Total Assets for the period.

(7) Return on Assets equals annualised Net Income for the period divided by the
Total Assets at the end of the period

(8) Return on Average Total Shareholders' Equity equals annualised Net Income
for the period divided by the average Total Shareholders' Equity for the period.

(9) Return on Equity equals annualised Net Income for the period divided by the
Total Equity at the end of the period

Q3 2007 Summary

Total Operating Income (Revenue) grew by 105.1% y-o-y to GEL 56.2 million in Q3
2007, a result of the 108.2% growth y-o-y of Net Interest Income to GEL 33.5
million and 100.8% growth y-o-y of Net Non-Interest Income to GEL 22.7 million.
The slower growth rate of Recurring Operating Costs up 61.8% y-o-y to GEL 21.6
million resulted in a 146.3% growth of Net Normalised Operating Income ('NNOI')
to GEL 34.6 million. The bank's Non-Recurring Costs amounted to GEL 2.0 million
and have led to the Pre-Bonus Result ('PBR') of GEL 29.5 million a 167.2% y-o-y.

In Q3 2007, Bank of Georgia continued the build-up of its capital and funding
base by raising the total of US$158.5 million in debt funding. This includes the
debut syndicated loan of US$123.5 million arranged by Citi and Asian Development
Bank and US$35 million subordinated loan, structured by Merrill Lynch. Bank of
Georgia increased its issued capital from 25.3 million shares as of June 2007 to
27.2 million shares by 30 September 2007. The increase, approved by the General
Meeting of Shareholders in June 2007, includes the conversion of the US$25
million subordinated convertible loan provided by a fund affiliated with HBK
Investments L.P., into 1,157,407 Bank of Georgia common shares and the 650,000
shares issued for the purpose of the bank Executive Equity Compensation Plan
('EECP').

9 Months 2007 Summary

The bank reported strong consolidated results with Net Income of GEL 49.9
million, up 188.2% y-o-y. Total Operating Income (Revenue) grew 106.5% y-o-y to
GEL 149.4 million, as Net Interest Income (GEL 90.4 million grew by 115.4% y-o-y
while Net Non-Interest Income (GEL 59.0 million) lagged slightly at a 94.1%
growth rate y-o-y. Non-banking operations generated approximately 30.9% (or GEL
18.2 million) of the Total Net Non-Interest Income, up 175.8% y-o-y. Total
Recurring Operating Costs increased by 74.3% y-o-y, reflecting the bank's growth
across the board and increased number of the personnel. The further improvement
of the operating leverage resulted in the NNOI of GEL 90.8 million, up 134.3%
y-o-y. PBR grew 189.7 % y-o-y to GEL 82.8 million.

The bank's consolidated Total Assets reached GEL 2.4 billion by 30 September
2007, up 180.5% y-o-y and up 98.1% YTD. The bank's corporate, retail and private
banking Gross Loans To Clients grew by 110.4%, 144.5% and 88.7% y-o-y and 81.7%,
89.5%, and 52.3% YTD, respectively, to GEL 715.3 million, GEL 533.6 million and
GEL 34.3 million, respectively, contributing to the 125.2% y-o-y growth of Net
Loans To Clients to GEL 1.3 billion (up 84.0% YTD). As of 30 September 2007, the
combined share of retail and private banking in Gross Loans To Clients increased
to 43.6% from 42.5% at the year end 2006. The balance sheet growth during the
nine months of 2007 resulted in an approximately 6.0% market share gain by
assets, and approximately 4.4% market share gain by gross loans. As of 30
September 2007, Bank of Georgia held the market share of approximately 34.0% and
30.8% by total assets and, gross loans, respectively.(8) The bank's non-deposit
funding base grew 231.7% y-o-y and 207.6% YTD to GEL 687.5 million as at 30
September 2007. Client Deposits (GEL 1,065 million as at 30 September 2007)
increased by 127.6% y-o-y and 90.3% YTD. As a result, the bank's market share by
Total Deposits grew 6.9% to 31.4% as at 30 September 2007.

Consolidated ROAE of 16.2% decreased slightly compared to the consolidated ROAE
of 16.5% as of 31 December 2006, while consolidated ROAA reached 3.5% during the
nine months of 2007, compared to 3.4% in 2006. The equity book value per share
stood at GEL 17.12 as at 30 September 2007, up 109.2% y-o-y and up 15.1% YTD.

Bank of Georgia also announced certain changes in the organizational structure,
following the acquisition of the Ukrainian Bank of Development and Partnership
('UBDP'), a mid-sized Ukrainian Bank in Q3 2007. The consolidated results for Q3
2007 have been presented also on a pro porma basis, and UBDP standalone results
have been shown in a separate Strategic Business Unit ('SBU'), the bank's fifth,
Ukraine SBU. The bank's Wealth Management BU now includes Galt & Taggart Bank,
formerly Cascade Bank, one of the smallest banks in Georgia acquired by Bank of
Georgia in July 2007.

(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 and Business Unit Overview

Corporate & Investment Banking (CIB)

Discussion Of Results

Allocated Revenues grew 80.0% y-o-y to GEL 49.1 million, impacted by the growth
of Net Interest Income and Net Non-Interest Income. Operating leverage of CIB
has improved, as the growth rate of allocated Recurring Costs (37.1% y-o-y),
lagged the growth rate of the allocated Revenues. PBR grew 123.6% y-o-y to GEL
33.8 million, contributing 40.8% to the consolidated PBR. Earnings grew 135.6%
y-o-y to GEL 22.1 million, contributing 44.2% to the consolidated Net Income.
Gross Loans grew 110.4% y-o-y and 81.7% YTD to GEL 715.3 million, driven by the
increased lending to corporate clients and rapid growth of the SME loan book.
Allocated Client Deposits grew 143.1% y-o-y and 137.3% YTD to GEL 670.8 million,
primarily due to the growth of current account balances. Allocated Total CIB
Assets amounted to GEL 1,235 million, up 167.9% y-o-y and up 130.8% YTD, while
allocated Total CIB Liabilities reached GEL 1,081 million, up 165.6% y-o-y and
up 137.3% YTD.

Highlights

    --  Major new corporate client acquisitions include the UAE-based Rakeen
        Development, Energo Pro, a leading energy distribution company in
        Georgia, and GPC, the country's third largest pharmacy chain.

    --  Increased the number of corporate clients using the bank's payroll
        services from 480 at the end of 2006 to over 675 by the end of September
        2007. By 30 September 2007, the number of individual clients serviced
        through the corporate payroll programs administered by the bank
        increased from approximately 83,500 at the beginning of the year to over
        135,000.

    --  Approximately 16,000 legal entities opened accounts at the bank during
        the nine months in 2007, bringing the total to over 60,000.

Retail Banking (RB)

Discussion Of Results

Allocated Revenues grew 120.5% y-o-y to GEL 65.3 million, impacted by the growth
of Net Interest Income and Net Non-Interest Income. Operating leverage of RB has
improved, as the growth rate of allocated Recurring Costs (66.7% y-o-y, driven
primarily by the branch and headcount expansion) lagged the growth rate of the
allocated Revenues. PBR grew 267.7% y-o-y to GEL 32.0 million, contributing
38.6% to the consolidated PBR. Earnings grew 297.9% y-o-y to GEL 20.9 million,
contributing 41.9% to the consolidated Net Income. Gross Loans grew 144.5% y-o-y
and 89.5% YTD to GEL 533.6 million, driven by the increased lending activity due
to high demand from customers. Allocated Client Deposits grew 82.3% y-o-y and
57.0% YTD to GEL 322.8 million, driven primarily by the growth of current
account balances and time deposits. Allocated Total RB Assets amounted to GEL
919.5 million, up 211.1% y-o-y and up 146.2% YTD, while allocated Total RB
Liabilities reached GEL 628.6 million, up 140.5% y-o-y and up 138.9% YTD.

Highlights

    --  Increased the number of retail current accounts from approximately
        420,000 at the beginning of the year to more than 595,000 by 30
        September, 2007.

    --  Increased the number of branches (service centers) from 100 at the
        beginning of the year to 109 by 30 September 2007.

    --  The purchase of commercial space previously rented by seven existing
        branches resulted in the implied cost savings of GEL 0.3 million per
        annum.

    --  Bought and leased premises for 34 new branches, 28 of which remain to be
        fitted out and are expected to be operational by Q2 2008.

    --  Stepped up the issuance of credit cards, as the number of credit cards
        issued reached approximately 46,227 in Q3 2007, compared to
        approximately 17,000 issued in Q2 2007 and approximately 5,800 issued in
        Q1 2007. As of 30 September 2007, the number of credit cards outstanding
        amounted to 69,224, up from 356 at the beginning of the year.

    --  Increased the issuance of debit cards, with over 229,000 debit cards
        issued during the nine months of 2007, compared to approximately 158,231
        debit cards issued during the first nine months of 2006. The number of
        debit cards outstanding increased from approximately 285,000 at the
        beginning of the year to approximately 459,000 by the end of September
        2007.

    --  Continued to make gains in merchant acquiring as the installed POS
        terminal footprint grew to 1,093.

    --  Total number of cards serviced by Georgian Card grew from 370,000 at the
        beginning of the year to 706,249 by 30 September 2007, while the number
        of transaction authorisations processed by Georgian Card during the nine
        months of 2007 grew 181.0% y-o-y to approximately 12.2 million.

    --  Continued investing in the electronic banking channels, as the number of
        ATMs grew to 185 by 30 September 2007 (up from 124 at the beginning of
        the year), number of mobile banking users reached 30,184, and number of
        registered Internet banking users grew 177.3% YTD to over 101,200.

    --  POS express consumer lending, commenced by the bank in 2006 to
        complement the branch-based general-purpose consumer lending, resulted
        in the 840 express loan POS contracts signed with merchants (of which
        548 outlets were served by 30 September 2007). POS express loan
        originations have reached GEL 63.6 million during nine months of 2007
        (up 387.9% y-o-y), while POS express loans outstanding amounted to GEL
        42.9 million at the end of September 2007, up 308.1% y-o-y and up 93.4%
        YTD.

    --  Stepped up mortgage loan originations to GEL 103.8 million during the
        nine months of 2007 (up 203.1% y-o-y) resulting in mortgage loans
        outstanding by 30 September 2007 of GEL 134.8 million, up 150.3% y-o-y
        and up 111.8% YTD.

    --  Car loan originations of GEL 27.2 million (up 275.6% y-o-y) resulted in
        car loans outstanding by 30 September 2007 of GEL 30.6 million, up
        259.0% y-o-y and up 213.2% YTD.

Insurance

Discussion Of Results

Revenues of Aldagi BCI, the bank's wholly-owned insurance subsidiary, grew 41.1%
y-o-y on to GEL 6.0 million, impacted by the growth in both corporate and
consumer lines of business, with Gross Premiums Written up 190.6% y-o-y to GEL
30.4 million. Operating Costs were GEL 4.5 million, up 20.3% y-o-y. PBR grew
124.7% y-o-y to GEL 1.3 million, while earnings grew 10.8% y-o-y to GEL 0.6
million during the nine months of 2007. Total Insurance Assets amounted to GEL
54.3 million, while Total Insurance Liabilities reached GEL 39.3 million as at
30 September 2007.

Highlights

    --  Major new corporate client acquisitions include Airzena Georgian
        Airlines for aviation insurance and Energo Pro, for property insurance.

Corporate Center (CC)

Significant decrease in the Allocated Revenues and Net Income of the Corporate
Center is a result of a significant increase in the elimination adjustment in Q2
and Q3 2007, driven by the adjustments of securities trading gains of Galt &
Taggart Securities, eliminated for the consolidation purposes as per IFRS
requirements. Allocated Total CC Assets amounted to GEL 15.1 million,
representing 0.6% of the consolidated Total Assets. Allocated Total CC
Liabilities reached GEL 60.1 million, representing 3.1% of the consolidated
Total Liabilities.

Wealth Management (WM)

Discussion Of Results

Allocated Revenues grew 115.4% y-o-y, impacted by the growth of Net Interest
Income (driven primarily by the growth of the Private Banking loan book) to GEL
3.5 million during nine months of 2007. Allocated Recurring Costs of GEL 1.1
million grew 52.1% y-o-y. PBR grew 277.8% y-o-y to GEL 2.1 million, contributing
2.5% to the consolidated PBR. Earnings grew 303.3% y-o-y to GEL 1.3 million,
contributing 2.7% to the consolidated Net Income. Gross Loans grew 88.7% y-o-y
and 52.3% YTD to GEL 34.3 million, while Allocated Client Deposits increased by
326.5% y-o-y and decreased by 2.2% YTD to GEL 64.0 million. Allocated Total WM
Assets amounted to GEL 70.1 million, up 185.3% y-o-y and 491.0% YTD, while
allocated Total WM Liabilities reached GEL 83.9 million, up 282.1% y-o-y and
45.1% YTD.

Highlights

    --  The number of private banking clients grew from 873 at the beginning of
        the year to 1,187 at the end of September 2007.

    --  Private banking mortgage loan originations of GEL 10.8 million (up 0.5%
        y-o-y) during nine months of 2007 resulted in mortgage loans outstanding
        of GEL 22.9 million as at 30 September 2007, up and 61.6% y-o-y and up
        32.8% YTD.

    --  Private Banking car loan originations of GEL 2.0 million, up 5.8% y-o-y
        during nine months of 2007 resulted in car loans outstanding of GEL 3.2
        million as at 30 September 2007, up 104.3% y-o-y and up 39.0% YTD.

    --  Deborah Fairlamb appointed as Kyiv-based group head of Wealth
        Management.

Galt & Taggart Securities

Discussion Of Results

The growth of Revenues to GEL 18.7 million during the nine months of 2007 (up
939.1% y-o-y) was driven primarily by increases in commissions from brokerage
and securities trading gains. Recurring Operating Costs increased 735.9% y-o-y
to GEL 3.3 million, largely reflecting the rapid growth pace of the operations
in Galt & Taggart Ukraine. The relatively high growth rate of the Recurring
Operating Costs notwithstanding, PBR increased 979.5% y-o-y to GEL 15.1 million.
Earnings grew 870.6% y-o-y, reaching GEL 10.9 million during nine months of 2007
and contributing 21.9% to the consolidated Net Income. Assets grew to GEL 51.4
million as at 30 September 2007, up 304.9% y-o-y and 157.5% YTD, mostly as a
result of the dramatic growth of the proprietary book. Liabilities reached GEL
14.2 million by 30 September 2007, up 265.2% y-o-y and up 114.3% YTD.

Highlights

    --  Proprietary book grew 244.9% YTD to GEL 25.4 million as at 30 September
        2007.

    --  Continued to hold the leading position by the equities trading volume in
        Georgia, with an approximately 62% market share.

    --  Fully staffed Galt & Taggart Securities Ukraine.

Asset Management

Highlights

    --  The market capitalization of Galt & Taggart Capital reached GEL 82.9
        million as at 30 September 2007, an increase of 54% YTD and an increase
        of 384% since the company was admitted to trading on the Georgian Stock
        Exchange in November 2006.

    --  Galt & Taggart Capital acquired a 51% equity interest in Planeta Forte,
        the leading operator of 47 newspaper kiosks in Tbilisi, allowing the
        development of the cross-sell opportunities between the bank's Retail
        Banking operations as well as GTC portfolio companies.

    --  Keren Shivta Capital management and BST, the Israel-based real estate
        investors signed an MOU pursuant to which they will invest US$4.8
        million in SB Real Estate. The proceeds will be invested in the
        development of the existing properties, as well as used for disciplined
        small-sized acquisitions.

    --  Assets Under Management at the Aldagi BCI Pension Fund grew 186.1% y-o-y
        (up 71.8% YTD) to GEL 0.9 million at the end of 1H 2007, while the
        number of Aldagi BCI Pension Fund members stood at 3,440 at the end of
        September 2007, up from 1,560 members at the end of September 2006.

Comments

'I am very pleased with our Q3 and YTD 2007 results. It's a pleasure to watch
the team working so well together. We are beginning to see our investment in
bringing the separate pieces together into a coherent diversified group pay off.
I am also delighted that the three-year anniversary of our team's commencing the
turnaround of Bank of Georgia has been marked by our first major cross-boarder
acquisition - the purchase of UBDP', commented Lado Gurgenidze, Chairman of the
Supervisory Board.

                                 SEGMENT RESULTS

-0-
*T
                                           Change y-o-y September - 2007, YTD     Share September - 2006, YTD      Share
Total Operating Income (Revenue)
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Corporate & Investment Banking                   80.02%                49,057    32.84%                27,251     37.66%
Retail Banking                                  120.54%                65,326    43.73%                29,621     40.94%
Wealth Management                               115.44%                 3,476     2.33%                 1,613      2.23%
Galt & Taggart Securities                       939.12%                18,703    12.52%                 1,800      2.49%
Asset Management                                424.46%                 2,403     1.61%                   458      0.63%
Insurance                                        41.09%                 6,032     4.04%                 4,275      5.91%
Corporate Center                                -40.29%                 4,381     2.93%                  7337     10.14%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Total Operating Income (Revenue)                106.45%               149,379   100.00%                72,355    100.00%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Ukraine                                             NMF                21,585    12.63%                  n.a.        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Pro Forma Total Operating Income (Revenue)          NMF               170,964       NMF                  n.a.        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------

Total Recurring Operating Costs
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Corporate & Investment Banking                   37.13%                 8,144    13.91%                 5,939     17.68%
Retail Banking                                   66.66%                28,040    47.90%                16,824     50.08%
Wealth Management                                52.12%                 1,103     1.88%                   725      2.16%
Galt & Taggart Securities                       735.91%                 3,339     5.70%                   399      1.19%
Asset Management                                170.76%                 3,617     6.18%                  1336      3.98%
Insurance                                        20.26%                 4,467     7.63%                 3,714     11.06%
Corporate Center                                111.29%                 9,835    16.80%                  4655     13.86%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Total Recurring Operating Costs                  74.28%                58,545   100.00%                33,593    100.00%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Ukraine                                             NMF                12,220    17.27%                  n.a.        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Pro Forma Total Recurring Operating Costs           NMF                70,765       NMF                  n.a.        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------

Pre-Bonus Result
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Corporate & Investment Banking                  123.64%                33,827    40.84%                15,126     86.12%
Retail Banking                                  267.68%                31,982    38.62%                 8,698     49.53%
Wealth Management                               277.83%                 2,061     2.49%                   545      3.11%
Galt & Taggart Securities                       979.47%                15,117    18.25%                 1,400      7.97%
Asset Management                                 43.32%                -1,258    -1.52%                  -878     -5.00%
Insurance                                       124.66%                 1,260     1.52%                   561      3.19%
Corporate Center                                    NMF                  -169    -0.20%                  3134     17.85%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Pre-Bonus Result                                189.71%                82,821   100.00%                28,588    100.00%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Ukraine                                             NMF                 8,130     8.94%                   n.a        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Pro Forma Pre-Bonus Result                          NMF                90,951       NMF                   n.a        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------

Net Income
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Corporate & Investment Banking                  135.58%                22,058    44.23%                 9,363     54.12%
Retail Banking                                  297.90%                20,891    41.89%                 5,250     30.35%
Wealth Management                               303.32%                 1,361     2.73%                   337      1.95%
Galt & Taggart Securities                       870.58%                10,926    21.91%                 1,126      6.51%
Asset Management                                 31.23%                -1,152    -2.31%                  -878     -5.07%
Insurance                                        10.85%                   645     1.29%                   582      3.37%
Corporate Center                               -420.07%                -4,863    -9.75%                 1,519      8.78%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Net Income                                      188.24%                49,868   100.00%                17,301    100.00%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Ukraine                                             NMF                 6,097    10.89%                  n.a.        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Pro Forma Net Income                                NMF                55,965       NMF                  n.a.        NMF
------------------------------------------ ------------ --------------------- --------- --------------------- ----------

Basic EPS Contribution                     Change y-o-y          Contribution     Share          Contribution      Share
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Corporate & Investment Banking                   42.82%                  0.87    44.23%                  0.61     54.12%
Retail Banking                                  141.22%                  0.83    41.89%                  0.34     30.35%
Wealth Management                               144.50%                  0.05     2.73%                  0.02      1.95%
Galt & Taggart Securities                       488.40%                  0.43    21.91%                  0.07      6.51%
Asset Management                                -20.45%                 -0.05    -2.31%                 -0.06     -5.07%
Insurance                                       -32.80%                  0.03     1.29%                  0.04      3.37%
Corporate Center                               -294.04%                 -0.19    -9.75%                  0.10      8.78%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
Total                                            74.74%                  1.98   100.00%                  1.13    100.00%
------------------------------------------ ------------ --------------------- --------- --------------------- ----------
*T

                             SEGMENT RESULTS CONT'D

-0-
*T
Total Assets                   Change y-o-y    September - 2007, YTD       Share September - 2006, YTD      Share
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Corporate & Investment
 Banking                              167.92%              1,235,060      51.39%               460,989     53.81%
Retail Banking                        211.07%                919,474      38.26%               295,583     34.50%
Wealth Management                     185.35%                 70,084       2.92%                 24561      2.87%
Galt & Taggart Securities             304.93%                 51,442       2.14%                12,704      1.48%
Asset Management                      451.42%                 57,822       2.41%                 10486      1.22%
Insurance                             227.66%                 54,339       2.26%                16,584      1.94%
Corporate Center                      -57.75%                 15,112       0.63%                 35767      4.18%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Total Assets                          180.54%              2,403,333     100.00%               856,674    100.00%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Ukraine                                   NMF                410,681      14.59%                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Pro Forma Total Assets                    NMF              2,814,014         NMF                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------

Loans to Clients, Gross
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Corporate & Investment
 Banking                              110.36%                715,338      54.91%               340,050     57.79%
Retail Banking                        144.45%                533,644      40.96%               218,303     37.10%
Wealth Management                      88.69%                 34,316       2.63%                18,186      3.09%
Galt & Taggart Securities                 NMF                      -       0.00%                     -        NMF
Asset Management                          NMF                      -       0.00%                     -        NMF
Insurance                                 NMF                      -       0.00%                     -        NMF
Corporate Center                       63.16%                 19,412       1.49%                11,897      2.02%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Total Loans to Clients                121.38%              1,302,711     100.00%               588,437    100.00%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Ukraine                                   NMF                333,884      20.40%                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Pro Forma Loans to Clients                NMF              1,636,594         NMF                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------

Total Liabilities
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Corporate & Investment
 Banking                              165.57%              1,081,302      55.78%               407,160     56.58%
Retail Banking                        140.53%                628,565      32.43%               261,330     36.31%
Wealth Management                     282.12%                 83,924       4.33%                 21963      3.05%
Galt & Taggart Securities             265.15%                 14,230       0.73%                 3,897      0.54%
Asset Management                     1747.43%                 30,926       1.60%                  1674      0.23%
Insurance                             265.70%                 39,258       2.03%                10,735      1.49%
Corporate Center                      366.46%                 60,136       3.10%                 12892      1.79%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Total Liabilities                     169.34%              1,938,341      100.0%               719,651    100.00%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Ukraine                                   NMF                341,350      14.97%                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Pro Forma Total Liabilities                                2,279,691         NMF                  n.a.
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------

Client Deposits
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Corporate & Investment
 Banking                              143.14%                670,781      62.97%               275,879     58.95%
Retail Banking                         82.26%                322,798      30.31%               177,107     37.84%
Wealth Management                     326.46%                 63,998       6.01%                15,007      3.21%
Galt & Taggart Securities                 NMF                  7,581       0.71%                     -      0.00%
Asset Management                          NMF                      -       0.00%                     -      0.00%
Insurance                                 NMF                      -       0.00%                     -      0.00%
Corporate Center                          NMF                      -       0.00%                     -      0.00%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Total Client Deposits                 127.60%              1,065,158      100.0%               467,993    100.00%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Ukraine                                   NMF                263,455      19.83%                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Pro Forma Client Deposits                 NMF              1,328,614         NMF                  n.a.        NMF
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------

Book Value Per Share             Change y-o-y           Contribution       Share          Contribution      Share
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Corporate & Investment
 Banking                               71.42%                   5.67      33.07%                  3.30     39.28%
Retail Banking                        409.69%                  10.72      62.56%                  2.10     25.00%
Wealth Management                    -419.70%                  -0.51      -2.98%                  0.16      1.90%
Galt & Taggart Securities             153.57%                   1.37       8.00%                  0.54      6.43%
Asset Management                       83.17%                   0.99       5.78%                  0.54      6.43%
Insurance                              54.74%                   0.56       3.24%                  0.36      4.27%
Corporate Center                     -218.12%                  -1.66      -9.68%                  1.40     16.69%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
Book Value Per Share                  103.66%                  17.13      100.0%                  8.41    100.00%
---------------------------- ---------------- ---------------------- ----------- --------------------- ----------
*T

                              INCOME STATEMENT DATA

-0-
*T
Period Ended                                                  9 Months, 2007      9 Months, 2007  9 Months,
                                                                                                      2006     Change(3)
Consolidated, IFRS Based                                 US$          GEL         US$(1)     GEL US$(2)    GEL   Y-O-Y
000s, unless otherwise noted                             (Pro Forma Consolidated)  (Unaudited)    (Unaudited)

 Interest Income                                              119,549     198,213 99,637 165,198 36,766 63,807   158.90%
 Interest Expense                                              55,285      91,663 45,115  74,800 12,586 21,843   242.44%
Net Interest Income                                            64,264     106,550 54,522  90,398 24,180 41,964   115.42%
 Fee & Commission Income                                       15,759      26,129 13,023  21,592  8,072 14,010    54.12%
 Fee & Commission Expense                                       2,344       3,886  1,908   3,163  1,253  2,175    45.44%
Net Fee & Commission Income                                    13,415      22,242 11,115  18,429  6,819 11,835    55.72%
 Income From Documentary Operations                             3,215       5,330  3,215   5,330  2,085  3,618    47.34%
 Expense On Documentary Operations                                907       1,503    907   1,503    513    890    68.84%
Net Income From Documentary Operations                          2,308       3,827  2,308   3,827  1,572  2,727    40.32%
Net Foreign Currency Related Income                            10,647      17,653  9,999  16,579  4,566  7,924   109.24%
 Net Insurance Income                                           3,380       5,605  3,380   5,605  2,319  4,025    39.25%
 Brokerage Income                                               1,735       2,877  1,735   2,877    752  1,304   120.54%
 Asset Management Income                                            9          14      9      14      -      -    NMF(4)
 Realised Net Investment Gains (Losses)                         3,321       5,506  3,321   5,605    446    774   611.73%
 Other                                                          4,035       6,689  3,706   6,144  1,039  1,803   240.73%
Net Other Non-Interest Income                                  12,480      20,691 12,151  20,146  4,555  7,906   154.82%
Net Non-Interest Income                                        38,850      64,414 35,574  58,981 17,512 30,392    94.07%
Total Operating Income (Revenue)                              103,115     170,964 90,096 149,379 41,691 72,355   106.45%
 Personnel Costs                                               18,819      31,201 16,545  27,431  8,490 14,735    86.16%
 Selling, General & Administrative Costs                       11,265      18,678  9,886  16,392  5,375  9,329    75.71%
 Procurement & Operations Support Expenses                      5,026       8,334  4,065   6,741  2,350  4,078    65.29%
 Depreciation & Amortization                                    4,524       7,501  4,047   6,710  2,116  3,672    82.73%
 Other Operating Expenses                                       3,046       5,051    767   1,272  1,025  1,779   -28.51%
Total Recurring Operating Costs                                42,681      70,765 35,311  58,545 19,356 33,593    74.28%
Normalized Net Operating Income                                60,434     100,199 54,785  90,834 22,335 38,763   134.33%
Net Non-Recurring Income (Costs)                                 (79)       (132)   (83)   (138)  (184)  (320)    NMF(4)
Profit Before Provisions & Bonuses                             60,354     100,068 54,702  90,696 22,151 38,443   135.92%
Provisions For Loan Losses                                      8,343      13,833  7,761  12,867  6,552 11,371    13.16%
Recovery Of Loans                                               2,842       4,711  2,842   4,711    407    706   567.81%
Provisions For (Recovery Of) Other Assets                         (3)         (5)   -170   (281)   -467  (810)   -65.27%
Net Provision Expense                                           5,498       9,116  4,749   7,874  5,679  9,855   -20.10%
Pre-Bonus Result                                               54,856      90,951 49,953  82,821 16,472 28,588   189.71%
Bonuses & Share Based Compensation Expenses                    12,332      20,446 12,332  20,446  3,818  6,626   208.58%
Pre-Tax Income                                                 42,524      70,505 37,621  62,376 12,654 21,962   184.02%
 Income Tax Expenses                                            8,770      14,540  7,544  12,508  2,686  4,661   168.36%
Net Income                                                     33,755      55,965 30,077  49,868  9,969 17,301   188.24%

Weighted Average Shares Outstanding (000s)                                                25,638        15,672
Diluted Number of Shares Period End (000s)                                                27,249        18,282
EPS (Basic)                                                                         1.17    1.95   0.64   1.10    76.20%
EPS (Diluted)                                                                       1.10    1.83   0.55   0.95    93.38%
*T

(1) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.6580 per U$S1.00 , such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 September 2007

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7355 per U$S1.00 , such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 September 2006

(3)Growth calculations based on GEL values

(4) Not meaningful

                               BALANCE SHEET DATA

-0-
*T
                                                    30-Sep-07              30-Sep-07       Growth(2)      30-Sep-06
Consolidated, IFRS Based                             US$(1)       GEL    US$(1)        GEL   Y-O-Y     US$(3)        GEL
000s, unless otherwise noted                 (Pro Forma Consolidated)     (Unaudited)                    (Unaudited)

Cash & Cash Equivalents                              63,624   105,489    56,280     93,312   128.06%   23,576     40,916
Loans & Advances To Credit Institutions             228,686   379,161   201,004    333,265   153.01%   75,898    131,721
 Mandatory Reserve With NBG                          56,174    93,136    45,548     75,518    54.50%   28,165     48,880
 Other Accounts With NBG                             55,064    91,296    55,064     91,296   951.96%    5,001      8,679
 Balances With & Loans To Other Banks               117,448   194,729   100,393    166,452   124.44%   42,733     74,163
Available-For-Sale Securities                         6,211    10,298     6,211     10,298    74.46%    3,401      5,903
Treasuries & Equivalents                             39,104    64,834    35,435     58,751    NMF(4)      295        512
Other Fixed Income Instruments                      151,159   250,621   144,272    239,203    NMF(4)        -          -
 Gross Loans To Clients                             987,089 1,636,594   785,712  1,302,711   121.38%  339,059    588,437
 Less: Reserve For Loan Losses                      -20,275  (33,615)  (15,401)   (25,535)    20.00% (12,261)   (21,280)
Net Loans To Clients                                966,815 1,602,979   770,311  1,277,176   125.19%  326,798    567,157
Investments In Other Business Entities, Net          87,899   145,736    87,899    145,736 21395.06%      391        678
Property & Equipment Owned, Net                      86,309   143,101    84,042    139,341   164.78%   30,322     52,624
Intangible Assets Owned, Net                          1,768     2,932     1,768      2,932    81.43%      931      1,616
Goodwill                                             26,149    43,355    26,149     43,355    81.14%   13,791     23,935
Tax Assets - Current & Deferred                       2,026     3,360     2,026      3,360    NMF(4)        -          -
Prepayments & Other Assets                           37,484    62,149    34,141     56,605    79.07%   18,214     31,611
Total Assets                                      1,697,235 2,814,015 1,449,538  2,403,334   180.54%  493,618    856,673

Client Deposits                                     801,335 1,328,614   642,436  1,065,158   127.60%  269,659    467,993
Deposits & Loans From Banks                          74,530   123,570    41,348     68,556   330.20%    9,182     15,936
Borrowed Funds                                      416,764   690,995   414,667    687,518   231.71%  119,428    207,267
Insurance Related Liabilities                        19,856    32,922    19,856     32,922   712.27%    2,335      4,053
Issued Fixed Income Securities                        7,906    13,108         -          -    NMF(4)      650      1,128
Tax Liabilities - Current & Deferred                 15,630    25,914    12,360     20,493   428.02%    2,236      3,881
Accruals & Other Liabilities                         38,943    64,568    38,416     63,694   228.44%   11,175     19,393
Total Liabilities                                 1,374,965 2,279,691 1,169,084  1,938,341   169.34%  414,666    719,651

Ordinary Shares                                      44,188    73,263    16,378     27,154    62.23%    9,644     16,738
Share Premium                                       183,117   303,607   183,117    303,607   407.15%   34,495     59,866
Treasury Shares                                     (1,074)   (1,781)   (1,074)    (1,781)   787.55%     -116      (201)
Retained Earnings                                    47,309    78,438    37,746     62,583    71.71%   21,000     36,446
Revaluation & Other Reserves                         11,335    18,794    10,570     17,525    NMF(4)    3,215      5,580
Net Income For The Period                            33,755    55,965    30,077     49,868   188.24%    9,969     17,301
Shareholders' Equity Excluding Minority
 Interest                                           318,629   528,287   276,813    458,956   238.14%   78,207    135,729
Minority Interest                                     3,641     6,037     3,641      6,037   366.73%      745      1,293
Total Shareholders' Equity                          322,270   534,324   280,454    464,993   239.36%   78,952    137,022
Total Liabilities & Shareholders' Equity          1,697,235 2,814,015 1,449,538  2,403,334   180.54%  493,618    856,673
Shares Outstanding                                                              27,154,099                    16,737,634
Book Value Per Share                                                      10.33      17.12   109.18%     4.72       8.19
*T

(1) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.6580 per US$1.00, such exchange rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 30 September 2007

(2) Compared to the same period in 2006; growth calculations based on GEL values

(3) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.7335 per US$1.00, such exchange rate being the official Georgia
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 30 September 2006

(4) Not meaningful

                                   KEY RATIOS

-0-
*T
                                                                          September 2007, YTD   2006 September 2006, YTD
Profitability Ratios
ROAA,(1) Annualised                                                                      3.5%   3.4%                3.2%
ROA, Annualised                                                                          2.8%   2.2%                2.7%
ROAE,(2) Annualised                                                                     16.2%  16.5%               20.5%
ROE, Annualised                                                                         14.3%   7.1%               16.8%
Interest Income To Average Interest Earning Assets, (3) Annualised                      14.4%  16.7%               15.2%
Cost Of Funds, (4) Annualised                                                            7.3%   5.8%                5.1%
Net Spread (5)                                                                           7.1%  10.9%               10.1%
Net Interest Margin (6) Annualised                                                       7.9%  11.1%               10.0%
Net Interest Margin, Normalised, (7) Annualised                                          7.9%  10.6%                9.5%
Loan Yield (8)                                                                          20.6%  17.4%               15.4%
Interest Expense To Interest Income                                                     45.3%  33.5%               34.2%
Net Non-Interest Income To Average Total Assets, Annualised                              4.2%   5.8%                5.7%
Net Non-Interest Income To Revenue (9)                                                  39.5%  40.4%               42.0%
Net Fee And Commission Income To Average Interest Earning Assets,
 (10)Annualised                                                                          1.6%   3.1%                2.8%
Net Fee And Commission Income To Revenue                                                12.3%  16.5%               16.4%
Operating Leverage (11)                                                                 11.3%  18.8%                 NMF
Total Operating Income (Revenue)/Total Assets, Annualised                                8.3%   9.2%               11.3%
Recurring Earning Power (12) Annualised                                                  6.4%   7.7%                7.2%
Net Income To Revenue                                                                   33.4%  23.9%               23.9%

Efficiency Ratios
Operating Cost To Average Total Assets, (13) Annualised                                  4.1%   6.8%                6.3%
Cost To Average Total Assets (14) Annualised                                             5.6%   8.2%                7.6%
Cost / Income (15)                                                                      53.0%  56.7%               56.0%
Cost /Income Normalised (16)                                                            52.9%  55.9%               55.6%
Cost / Income, Bank of Georgia, Standalone (18)                                         48.8%  51.2%               52.5%
Cash Cost/Income(17)                                                                    48.5%  51.4%               51.0%
Total Employee Compensation Expense To Revenue (19)                                     32.1%  29.7%               29.5%
Total Employee Compensation Expense To Cost                                             60.5%  52.5%               52.7%
Total Employee Compensation Expense To Average Total Assets, Annualised                  3.4%   4.3%                4.0%

Liquidity Ratios
Net Loans To Total Assets (20)                                                          53.1%  57.2%               66.2%
Average Net Loans To Average Total Assets                                               52.6%  61.3%               62.0%
Interest Earning Assets To Total Assets                                                 79.4%  78.4%               81.6%
Average Interest Earning Assets To Average Total Assets                                 81.1%  77.3%               78.2%
Liquid Assets To Total Assets (21)                                                      30.6%  25.0%               20.9%
Net Loans To Client Deposits                                                           119.9% 124.0%              121.2%
Average Net Loans To Average Client Deposits                                           125.4% 113.4%              106.8%
Net Loans To Total Deposits (22)                                                       112.7% 123.8%              117.2%
Net Loans To Total Liabilities                                                          65.9%  82.8%               78.8%
Total Deposits To Total Liabilities                                                     58.5%  66.8%               67.2%
Client Deposits To Total Deposits                                                       94.0%  99.8%               96.7%
Client Deposits To Total Liabilities                                                    55.0%  66.7%               65.0%
Current Account Balances To Client Deposits                                             57.2%  54.4%               55.7%
Demand Deposits To Client Deposits                                                       9.6%   6.4%                3.9%
Time Deposits To Client Deposits                                                        33.1%  39.2%               40.4%
Total Deposits To Total Assets                                                          47.2%  46.2%               56.5%
Client Deposits To Total Assets                                                         44.3%  46.1%               54.6%
Client Deposits To Total Equity (times) (23)                                             2.29   1.49                3.42
Due From Banks / Due To Banks (24)                                                       486%  7597%                827%
Leverage (times) (25)                                                                    4.17   2.20                5.25
*T

                                KEY RATIOS CONT'D

-0-
*T
                                                                      September 2007, YTD       2006 September 2006, YTD
Asset Quality
NPLs (in GEL) (26)                                                                 16,711     16,266              19,671
NPLs to Gross Loans (27)                                                             1.3%       2.3%                3.3%
Cost of Risk, Annualised (28)                                                        1.0%       2.7%                2.8%
Cost of Risk, Normalised, Annualised(29)                                             1.0%       2.2%                2.2%
Reserves for Loan Losses to Gross Loans (30)                                         2.0%       3.0%                3.6%
NPL Coverage ratio (31)                                                            152.8%     129.9%              108.2%
Equity to Average Net Loans to Clients                                              46.8%      78.8%               30.9%
Total Equity To Net Loans                                                           36.4%      54.0%               24.2%

Capital Adequacy:
Equity To Total Assets                                                              19.3%      30.9%               16.0%
BIS Tier I Capital Adequacy Ratio (32)                                              23.2%      44.9%               18.0%
BIS Total Capital Adequacy Ratio (33)                                               23.3%      41.8%               19.3%
NBG Tier I Capital Adequacy Ratio (34)                                              14.0%      23.2%                8.0%
NBG Total Capital Adequacy Ratio (35)                                               16.9%      28.5%               12.8%

Per Share Values:
Basic EPS (GEL) (36)                                                                 1.95       1.62                1.10
Basic EPS (US$)                                                                      1.17      $0.89                0.64
Diluted EPS (GEL) (37)                                                               1.83       0.98                0.95
Diluted EPS (US$)                                                                    1.10      $0.54                0.55
Book Value Per Share (GEL) (38)                                                     17.12      14.87                8.19
Book Value Per Share (US$)                                                          10.33      $8.14                4.72
Ordinary Shares Outstanding - Weighted Average, Basic                          25,637,740 16,505,701          15,672,016
Ordinary Shares Outstanding - Period End                                       27,154,099 25,202,009          16,737,634
Ordinary Shares Outstanding - Diluted                                          27,249,100 27,229,418          18,281,710

Selected Operating Data:
Full Time Employees (FTE)                                                           3,992      2,226               1,956
FTEs, Bank of Georgia Standalone                                                    2,388      1,601               1,479
Total Assets per FTE (GEL Thousands)                                                  602        558                 438
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands)                    1,006        776                 579
Branches                                                                              109        100                  92
ATMs                                                                                  185        124                  91
Plastic Cards (Thousands)                                                             529        286                 203
POS Terminals                                                                       1,093        471                 328
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Note: All annualized numbers presented throughout have been annualised by
dividing Income Statement component by the number of months in the period
multiplied by twelve.

                               NOTES TO KEY RATIOS

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1     Return On Average Total Assets (ROAA) equals Net Income of the period divided by quarterly Average Total Assets
       for the same period;
2     Return On Average Total Equity (ROAE) equals Net Income of the period divided by quarterly Average Total Equity
       for the same period;
3     Average Interest Earning Assets are calculated on a quarterly basis; Interest Earning Assets include: Loans And
       Advances To Credit Institutions, Treasuries And Equivalents, Other Fixed Income Instruments and Net Loans to
       Clients;
4     Cost Of Funds equals Interest Expense of the period divided by quarterly Average Interest Bearing Liabilities;
       Interest Bearing Liabilities Include: Client Deposits, Deposits And Loans From Banks, Borrowed Funds and Issued
       Fixed Income Securities;
5     Net Spread equals Interest Income To Average Interest Earning Assets less Cost Of Funds;
6     Net Interest Margin equals Net Interest Income of the period divided by quarterly Average Interest Earning Assets
       of the same period;
7     Net Interest Margin Normalised equals Net Interest Income of the period, less provisions for the interest income
       generated by non-performing loans through the date of their write-offs, plus provisions for (less recovery of)
       other assets, divided by quarterly average Gross Loans To Clients over the same period.
8     Loan Yield equals Interest Income, less Net Provision Expense divided by quarterly Average Gross Loans To Clients;
9     Revenue equals Total Operating Income;
10    Net Fee And Commission Income includes Net Income From Documentary Operations of the period;
11    Operating Leverage equals percentage change in Revenue less percentage change in Total Costs;
12    Recurring Earning Power equals Profit Before Provisions and Bonuses of the period divided by average Total Assets
       of the same period;
13    Operating Cost equals Total Recurring Operating Costs;
14    Cost includes Total Recurring Operating Costs, Net Non-Recurring Costs (Income) and Bonuses & Share Based
       Compensation Expenses;
15    Cost/Income Ratio equals Costs of the period divided by Total Operating Income (Revenue);
16    Cost/Income Normalised equals Recurring Operating Costs plus Bonuses & Share Based Compensation Expenses divided
       by Total Operating Income (Revenue) for the same period.
17    Cash Cost equals Cost minus Depreciation & Amortisation;
18    Cost/Income, Bank of Georgia, standalone, equals to non-consolidated Total Costs of the bank of the period divided
       by non-consolidated Revenue of the bank of the same period;
19    Total Employee Compensation Expense includes Personnel Costs and Bonuses & Share-Based Compensation Expenses;
20    Net Loans equal Net Loans To Clients;
21    Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG, Balances With And Loans To Other Banks,
       Treasuries And Equivalents and Other Fixed Income Securities as of the period end and are divided by Total Assets
       as of the same date;
22    Total Deposits include Client Deposits and Deposits And Loans from Banks;
23    Total Equity equals Total Shareholders' Equity;
24    Due From Banks/Due To Banks equals Loans And Advances To Credit Institutions divided by Deposits And Loans From
       Banks;
25    Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of the same date;
26    NPLs (in GEL) equals total gross non-performing loans as of the period end; non-performing loans are loans that
       have debts in arrears for more than 90 calendar days;
27    Gross Loans equals Gross Loans To Clients;
28    Cost Of Risk equals Net Provision For Loan Losses of the period, less recovery of other assets, divided by
       quarterly average Gross Loans To Clients over the same period;
29    Cost of Risk Normalised equals Net Provision For Loan Losses of the period, less provisions for the interest
       income generated by non-performing loans through the date of their write-off, plus provisions for (less recovery
       of) other assets, divided by quarterly average Gross Loans to Clients over the same period.
30    Reserve For Loan Losses To Gross Loans To Clients equals reserve for loan losses as of the period end divided by
       gross loans to clients as of the same date;
31    NPL Coverage Ratio equals Reserve For Loan losses as of the period end divided by NPLs as of the same date;
32    BIS Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total Risk Weighted Assets
       as of the same date, both calculated in accordance with the requirements of Basel Capital Accord I;
33    BIS Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total Risk Weighted Assets
       as of the same date, both calculated in accordance with the requirements of Basel Capital Accord I;
34    NBG Tier I Capital Adequacy Ratio equals Tier I Capital as of the period end divided by Total Risk Weighted Assets
       as of the same date, both calculated in accordance with the requirements the National Bank of Georgia;
35    NBG Total Capital Adequacy Ratio equals Total Capital as of the period end divided by Total Risk Weighted Assets
       as of the same date, both calculated in accordance with the requirements of the National Bank of Georgia;
36    Basic EPS equals Net Income of the period divided by the weighted average number of outstanding Ordinary Shares
       over the same period;
37    Diluted EPS equals Net Income of the period divided by the number of outstanding Ordinary Shares as of the period
       end plus number of ordinary shares in contingent liabilities;
38    Book Value Per Share equals Total Equity plus Treasury Shares, divided by the total number of outstanding Ordinary
       Shares.
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About Bank of Georgia

Bank of Georgia, the leading universal Georgian bank with operations in Georgia
and Ukraine, is the largest bank by assets, loans, deposits and equity in
Georgia, with 34% market share by total assets (all data according to the NBG as
of September 30 2007). The major component of the Galt & Taggart Index, the bank
has 109 branches and over 595,000 retail and more than 60,000 corporate current
accounts. The bank offers a full range of retail banking and corporate and
investment banking services to its customers across Georgia. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary, Aldagi BCI, as well as asset & wealth management
services.

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

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Standard & Poor's 'B+/B'                        Stable
Moody's           'B3/NP' (FC) & 'Ba1/P-3' (LC) Stable
FitchRatings      'B+/B'                        Stable
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For further information, please visit www.bog.ge/ir or contact:

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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
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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 nine months 2007 and nine months 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.