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JSC Bank of Georgia (BGEO)

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Friday 01 February, 2008

JSC Bank of Georgia

Final Results

Bank of Georgia
                  1.59 GEL/US$ 2007 period end

1.67 GEL/US$ 2007 average

1.71 GEL/US$ 2006 period end

1.78 GEL/US$ 2006 average

  JSC BANK OF GEORGIA ANNOUNCES CONSOLIDATED Q4 2007 AND FULL YEAR 2007 RESULTS

-0-
*T
Millions, unless otherwise noted                                 Q4 2007                                 Growth y-o-y
                                                                                                               (1)
                                                            Bank of Georgia
                                                               Consolidated
                                                                   US$                     GEL
Bank of Georgia (Consolidated, Unaudited, IFRS Based)
Total Operating Income (Revenue)(2)                               42.9                    68.3                81%
Recurring Operating Costs                                         18.0                    28.7                71%
Normalised Net Operating Income(3)                                24.9                    39.6                88%
Pre-Bonus Result                                                  22.9                    36.4                110%
Net Income                                                        16.1                    25.5                170%

Millions, unless otherwise noted                               2007 (YTD)                                Growth y-o-y
                                                                                                               (1)
                                                            Bank of Georgia
                                                               Consolidated
                                                                   US$                     GEL
Bank of Georgia (Consolidated, Unaudited, IFRS Based)
Total Operating Income (Revenue)(2)                               136.8                   217.7               94%
Recurring Operating Costs                                         54.8                    87.2                66%
Normalised Net Operating Income(3)                                82.0                    130.4               119%
Pre-Bonus Result                                                  74.9                    119.2               160%
Net Income                                                        47.4                    75.4                182%
Consolidated EPS (Basic), GEL & US$(4)                            1.82                    2.89                78%
Consolidated EPS (Fully Diluted), GEL & US$(5)                    1.74                    2.77                181%
ROAA(6, )%                                                                                 3.8
ROA (7) %                                                                                  2.5
ROAE(8) %                                                                                 17.7
ROE(9)%                                                                                   13.5
*T

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

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

(3) Normalised for Net Non-Recurring Costs.

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

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

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

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

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

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

Bank of Georgia (LSE: BGEO, GSE: GEB), the leading Georgian universal bank,
announced today its Q4 2007 and full year 2007 consolidated results (IFRS based,
derived from management accounts), reporting record quarterly Net Income of GEL
25.5 million in Q4 2007, (up 169.8% y-o-y) or US$0.59 per share (Basic, up
106.8% y-o-y).

For the full year 2007, Net Income on the consolidated basis reached GEL 75.4
million (up 181.7% y-o-y), or US$1.82 per share (Basic, up 78.4 % y-o-y).

Q4 2007 Summary

Total Operating Income (Revenue) grew by 80.5% y-o-y to GEL 68.3 million in Q4
2007, a result of the 62.0% growth y-o-y of Net Interest Income to GEL 42.7
million and 123.0% growth y-o-y of Net Non-Interest Income to GEL 25.6 million.
The slower growth rate of Recurring Operating Costs, up 70.7% y-o-y to GEL 28.7
million, was reflected in the decrease of Normalised Cost/Income ratio from
56.0% in Q4 2006 to 49.4% in Q4 2007. Net Normalised Operating Income ('NNOI')
was up 88.4% to GEL 39.6 million, while Pre-Bonus Result ('PBR') grew by 110.3%
to GEL 36.4 million for the quarter.

In Q4 2007, Bank of Georgia raised the total of US$80 million in debt funding,
which comprises of US$15 million subordinated loan facility from a fund
affiliated with HBK Capital Management and a US$65 million senior loan facility
arranged through Merrill Lynch.

In October 2007 Bank of Georgia completed the acquisition of 98.77% of the
Ukrainian Bank of Development and Partnership ('UBDP'), a mid-sized Ukrainian
Bank and its Q4 2007 Profit & Loss results have been consolidated in the Bank of
Georgia Group's (the 'Bank') Q4 2007 results. UBDP's Q4 2007 results are
presented as separate Strategic Business Unit ('SBU') - Ukraine SBU ('Ukraine')
under segments results of the group.

In November 2007, Bank of Georgia announced changes in the Supervisory Board
after Lado Gurgenidze, resigned as a Chairman of the Supervisory Board to become
Prime Minister of Georgia. Following Mr. Gurgenidze's resignation, Nicholas
Enukidze, Vice Chairman of the Supervisory Board has been acting as Chairman of
the Supervisory Board. Nicholas Enukidze is expected to be appointed Chairman of
the Supervisory Board following the Extraordinary General Meeting of
Shareholders to be held in February 2008.

Full Year 2007 Summary

The Bank reported strong consolidated results with Net Income of GEL 75.4
million, up 181.7% y-o-y. Total Operating Income (Revenue) grew 94.3% y-o-y to
GEL 217.7 million, as Net Interest Income (GEL 133.1 million) grew by 99.4%
y-o-y while Net Non-Interest Income (GEL 84.6 million) lagged at an 86.9% growth
rate y-o-y. Non-banking operations generated approximately 31.4% (or
approximately GEL 26.6 million) of the Total Net Non-Interest Income, up 134.3%
y-o-y. Total Recurring Operating Costs increased by 66.1% y-o-y, mostly a result
of increased number of the personnel as the Bank continued to grow across its
product lines and geographies. Total Operating Income (Revenue) growth
accelerated from 76.6% in 2006 to 94.3% in 2007 resulting in Operating Leverage
of 24.4% in 2007, up from 18.8% in 2006, reflecting the Bank's improved
efficiency. NNOI increased to GEL 130.4 million up 119.3% y-o-y. PBR grew 159.8%
y-o-y to GEL 119.2 million.

The Bank's consolidated Total Assets reached GEL 3.0 billion by 31 December
2007, up 145.7% y-o-y. Gross Loans reached GEL 1,721 million, a 140.7% increase
y-o-y. UBDP accounted for approximately 11.7% (GEL 350.3 million) and 13.2% (GEL
226.4 million) of the Bank's Total Assets and Total Gross Loans, respectively.
In 2007, the Bank's non-deposit funding base grew by GEL 612.5 million to GEL
836.0 million, of which GEL 113.6 million (3.8% of YE 2007 Total Assets) matures
in 2008. Client Deposits (GEL 1,362 million as at 31 December 2007) increased by
143.4% y-o-y.

Bank of Georgia Group's Total Assets and Gross Loans to Clients, excluding UBDP,
grew 116.9% y-o-y to GEL 2,631 million and 109.1% y-o-y to GEL 1.5 billion,
respectively. Corporate, retail and private banking Gross Loans To Clients of
Bank of Georgia grew by 105.1%, 128.7% and 96.3% y-o-y, respectively, to GEL
807.2 million, GEL 644.0 million and GEL 44.2 million, respectively. As of 31
December 2007, the combined share of Bank of Georgia (excluding UBDP) retail and
private banking in Bank of Georgia's Gross Loans To Clients increased to 46.0%
from 42.5% at the year end 2006. Bank of Georgia's Client Deposits, excluding
UBDP, increased by 95.5% y-o-y, to GEL 1,094 million. The balance sheet growth
of Bank of Georgia, excluding UBDP, during 2007 resulted in an approximately
7.0% market share gain by assets, approximately 6.1% market share gain by gross
loans and approximately 6.8% market share gain by client deposits. As of 31
December 2007, Bank of Georgia held the market share of 35.4%, 32.7% and 31.4%
by total assets, gross loans, and client deposits respectively.(1)

Total Shareholders' Equity grew by GEL 185.0 million in 2007 and amounted to GEL
559.8 million. The growth was mainly attributed to 2007 Net Income of GEL 75.4
million, equity issuance in connection with the conversion of US$25 million
subordinated convertible loan by a fund affiliated with HBK Investment L.P. and
executive equity compensation and increase of revaluation & other reserve
account by GEL 68.3 million, of which GEL 62.0 million is due to the revaluation
of Bank of Georgia's fixed assets (real estate). As required by IFRS this
revaluation was conducted in December 2007 and previous revaluation of fixed
assets was performed in 2003.

The Bank's Consolidated ROAE increased to 17.7% from the consolidated ROAE of
16.5% in 2006. Consolidated ROAA grew to 3.8% during 2007, from 3.4% in 2006.
The equity book value per share stood at GEL 20.62 (US$12.96) as at 31 December
2007, up 38.6% y-o-y.

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

Strategic Business Unit and Business Unit Overview

Corporate & Investment Banking (CIB)

Discussion Of Results

Allocated Revenues grew 78.0% y-o-y to GEL 71.5 million, impacted by the growth
of Net Interest Income and Net Non-Interest Income. Operating leverage of CIB
has improved, as the growth rate of allocated Recurring Costs (up 70.9% y-o-y)
lagged the growth rate of the allocated Revenues. PBR grew 79.9% y-o-y to GEL
42.9 million, contributing 36.0% to the consolidated PBR. Earnings grew 94.6%
y-o-y to GEL 28.8 million, contributing 38.1% to the consolidated Net Income.
Gross Loans grew 105.1% y-o-y to GEL 807.2 million, driven by the increased
lending to corporate clients and growth of the SME loan book. Allocated Client
Deposits grew 138.3% y-o-y to GEL 673.7 million, primarily due to the growth of
time deposits and current account balances. Allocated Total CIB Assets amounted
to GEL 1,422 million, up 165.8% y-o-y, while allocated Total CIB Liabilities
reached GEL 1,138 million, up 149.7% y-o-y.

Highlights

    --  Major new corporate client acquisitions include 15 subsidiary companies
        of State Oil Company of Azerbaijan ('SOCAR'), including, inter alia,
        Sheraton Metekhi Palace Hotel, Kaztransgaz (Tbilisi natural gas
        distribution company) and Wissol, a leading Georgian gasoline retail
        chain.

    --  Increased the number of corporate clients using the bank's payroll
        services from 480 at the end of 2006 to over 700 by the end of 2007. By
        31 December 2007, the number of individual clients serviced through the
        corporate payroll programs administered by the bank increased from
        approximately 83,500 at the beginning of the year to over 150,000.

    --  More than 16,000 legal entities opened accounts at the bank during 2007,
        bringing the total to over 64,000.


Retail Banking (RB)

Discussion Of Results

Allocated Revenues grew 104.7% y-o-y to GEL 93.3 million, impacted by the growth
of Net Interest Income and Net Non-Interest Income. Operating leverage of RB has
improved, as the growth rate of allocated Recurring Costs (up 49.6% y-o-y,
driven primarily by the branch and headcount expansion) lagged the growth rate
of the allocated Revenues. PBR grew 154.8% y-o-y to GEL 40.3 million,
contributing 33.8% to the consolidated PBR. Earnings grew 177.9% y-o-y to GEL
27.0 million, contributing 35.7% to the consolidated Net Income. Gross Loans
grew 128.7% y-o-y to GEL 644.0 million, driven by the increased lending activity
due to high demand from clients. Allocated Client Deposits grew 66.4% y-o-y to
GEL 342.1 million, driven primarily by the growth of current account balances
and time deposits. Allocated Total RB Assets amounted to GEL 1,125 million, up
201.3% y-o-y, while allocated Total RB Liabilities reached GEL 709.8 million, up
169.8% y-o-y.

Highlights

    --  Launched a co-branded student card (Bali Card) with Magti, Georgia's
        leading Mobile Operator. Bali is Magti's sub-brand targeting the young
        population segment. Bali Card combines debit chip card and transport
        contactless application (a so called hybrid card), which can be used at
        Tbilisi Metro (subway) for transit passes.

    --  Acquired a 51% equity interest in JSC Nova Technology, which operates a
        network of approximately 1,000 POS and 200 self-service terminals
        offering a range of payment services, including, inter alia, mobile
        top-up and utility payments. Other services are expected to be added in
        the near future.

    --  Increased the number of retail current accounts from approximately
        420,000 at the beginning of the year to more than 700,000 by 31 December
        2007.

    --  Increased the number of branches (service centers) in Georgia from 100
        at the beginning of the year to 117 by 31 December 2007.

    --  Purchased commercial space previously rented for seven existing
        branches, which resulted in cost savings of GEL 0.3 million per annum.

    --  Bought and leased premises for 34 new branches, which are expected to be
        fully renovated and operational by the end of 2008.

    --  Stepped up the issuance of credit cards, as the number of credit cards
        issued reached approximately 108,538 by the end of 2007 since the launch
        in Q4 2006. As of 31 December 2007, the number of credit cards
        outstanding amounted to 108,616, up from 356 at the beginning of the
        year.

    --  Increased the issuance of debit cards, with over 320,000 debit cards
        issued in 2007, compared to approximately 240,000 debit cards issued
        during 2006. The number of debit cards outstanding increased from
        approximately 285,000 at the beginning of the year to approximately
        538,000 by the end of December 2007.

    --  Continued to make gains in merchant acquiring as the installed POS
        terminal footprint grew to 1,594 compared to 471 at year end 2006.

    --  Total number of cards serviced by Georgian Card grew from 370,000 at the
        beginning of the year to 876,263 by 31 December 2007, while the number
        of transaction authorisations processed by Georgian Card in 2007 grew
        157.5% y-o-y to approximately 18.7 million. The volume of transactions
        processed grew to GEL 1,202 million, up 134.6% y-o-y.

    --  Continued investing in the electronic banking channels, as the number of
        ATMs grew to 250 by 31 December 2007 (up from 124 at the beginning of
        the year), number of mobile banking users reached 39,703, and number of
        registered Internet banking users grew 206.6% to over 114,612.

    --  POS express consumer lending, commenced by the bank in 2006 to
        complement its branch-based general-purpose consumer lending, resulted
        in the 969 express loan POS contracts signed with merchants (of which
        640 outlets were served by 31 December 2007). POS express loan
        originations have reached GEL 106.6 million in 2007 (up 244.6% y-o-y),
        while POS express loans outstanding amounted to GEL 61.3 million at the
        end of December 2007, up 176.4% y-o-y.

    --  Increased mortgage loan originations to GEL 169.0 million in 2007 (up
        227.8% y-o-y) resulting in mortgage loans outstanding by 31 December
        2007 of GEL 180.7 million, up 183.8% y-o-y.

    --  Car loan originations of GEL 38.9 million (up 298.6% y-o-y) resulted in
        car loans outstanding by 31 December 2007 of GEL 37.1 million, up 279.6%
        y-o-y.

Insurance

Discussion Of Results

Gross Premiums Written of Aldagi BCI, the bank's wholly-owned insurance
subsidiary, increased by 232.0% y-o-y to GEL 41.9 million. Net Premiums Earned
grew 163.2% y-o-y to GEL 16.7 million. Revenues decreased by 0.2% y-o-y to GEL
5.9 million. PBR decreased by 4.3% y-o-y to GEL -0.4 million resulting in net
loss of GEL 0.7 million in 2007. Net loss was mainly due to government's health
care program for socially vulnerable citizens and school teachers through which
Aldagi BCI acquired 84,000 clients. Total Insurance Assets amounted to GEL 63.5
million, while Total Insurance Liabilities reached GEL 45.3 million as at 31
December 2007.

Highlights

    --  Nikoloz Gamkrelidze appointed as Chief Executive Officer of Aldagi BCI
        (formerly the CEO of My Family Clinic, Aldagi BCI's wholly-owned
        subsidiary).

    --  Major new corporate client acquisitions include two mobile operators
        GeoCell and Mobitel (Beeline) and Batumi International Cargo Terminal
        for Terminal liability insurance.

    --  Opened an additional branch of My Family Clinic in Tbilisi.

Wealth Management (WM)

Discussion Of Results

Allocated Revenues grew 103.6% y-o-y, impacted by the growth of Net Interest
Income (driven primarily by the growth of the Private Banking loan book) to GEL
5.1 million in 2007. Allocated Recurring Costs of GEL 1.8 million grew 76.4%
y-o-y. PBR grew 163.8% y-o-y to GEL 2.8 million, contributing 2.4% to the
consolidated PBR. Earnings grew 191.2% y-o-y to GEL 1.9 million, contributing
2.6% to the consolidated Net Income. Gross Loans grew 96.3% y-o-y to GEL 44.2
million, while Allocated Client Deposits increased by 6.7% y-o-y to GEL 69.8
million. Allocated Total WM Assets amounted to GEL 84.4 million, up 611.9%
y-o-y, while allocated Total WM Liabilities reached GEL 94.9 million, up 64.0%
y-o-y.

Highlights

    --  The number of private banking clients grew from 873 at the beginning of
        the year to 1,291 at the end of December 2007.

    --  Private banking mortgage loan originations of GEL 15.2 million (up 9.4%
        y-o-y) during 2007 resulted in mortgage loans outstanding of GEL 22.8
        million as at 31 December 2007, up 32.1% y-o-y.

    --  Private Banking car loan originations of GEL 2.4 million, down by 15.5%
        y-o-y during 2007 resulted in car loans outstanding of GEL 3.0 million
        as at 31 December 2007, up 33.1% y-o-y.

Galt & Taggart Securities

Discussion Of Results

The growth of Revenues to GEL 20.9 million during 2007 (up 633.3% y-o-y) was
driven primarily by increases in commissions from brokerage and securities
trading gains. Recurring Operating Costs increased to GEL 5.0 million, largely
reflecting the expansion of Galt & Taggart Ukraine operations. The relatively
high growth rate of the Recurring Operating Costs notwithstanding, PBR increased
619.0% y-o-y to GEL 15.8 million. Earnings grew 502.1% y-o-y, reaching GEL 10.6
million in 2007 and contributing 14.1% to the consolidated Net Income.

Highlights

    --  Proprietary book grew 90.8% y-o-y to GEL 14.5 million as at 31 December
        2007.

    --  Galt & Taggart Securities continued to hold the leading position in
        equities trading in Georgia, with an approximately 63% market share in
        terms of trading volume.

    --  Galt & Taggart Securities Georgia successfully introduced Teliani
        Valley, a leading Georgian winery to the Georgian Stock Exchange (GSE:
        WINE) and acted as sole placement agent on a GEL 6 million capital
        increase for JSC Populi, the leading Georgian supermarket chain.

    --  In its first full year of operation, Galt & Taggart Securities Ukraine
        ranked #19 with an approximately 1.2% market share by equities trading
        volume in Ukraine.

    --  Galt & Taggart Securities Ukraine increased its staff to 35 full time
        employees.

    --  Successfully closed five M&A deals, including the acquisition of UBDP by
        Bank of Georgia.

Ukraine

Discussion Of Results

UBDP's Revenue amounted to GEL 7.0 million in Q4 2007. PBR reached GEL 2.2
million, contributing 1.9% to the consolidated PBR of the Bank. Earnings equaled
1.7 million, contributing 2.2% to the consolidated Net Income. Gross Loans stood
at GEL 226.4 million. Client Deposits amounted to GEL 267.8 million. Total UBDP
Assets were GEL 350.3 million, while Total UBDP Liabilities reached GEL 283.4
million.

Highlights

    --  Transition Team commenced work, with Sulkhan Gvalia, Deputy CEO and
        Chief Risk Officer of Bank of Georgia, seconded to UBDP to spearhead the
        integration process.

    --  New hires include Giorgi Vakhtangishvili, Deputy CFO of Bank of Georgia
        responsible for Ukraine and based in Kiev, and Ognjen Nastic, Head of
        IT.

    --  On 31 December 2007 UBDP had 40 branches and service centers, over
        15,000 retail clients and 804 full-time employees.

    --  Acquired real estates for two branches in Kharkiv Oblast and
        Ivano-Frankivs Oblast, purchase price for both real estates was
        approximately US$1.6 million.

Asset Management

Revenues grew to GEL 23.0 million during 2007. Recurring Operating Costs
increased 177.7% y-o-y to GEL 5.0 million. PBR reached GEL 17.4 million.
Earnings stood at GEL 14.8 million in 2007 and contributed 19.7% to the
consolidated Net Income. Assets grew to GEL 78.6 million as at 31 December 2007,
up 254.0% y-o-y. Liabilities reached GEL 33.5 million by 31 December 2007, up
320.4% y-o-y.

Highlights

    --  Bidzina Bejuashvili, formerly a Vice President at JP Morgan responsible
        for the equity research coverage of an oil & gas sector in CEEMEA and
        LATAM, appointed as Chief Executive Officer of Galt & Taggart Asset
        Management ('GTAM').

    --  Launched Georgia's first ever Endowment Fund. GTAM will manage the funds
        raised by Bank of Georgia and International Charity Fund Iavnana for the
        benefit of the Fund.

    --  The market capitalisation of Galt & Taggart Capital reached GEL 78.6
        million as at 31 December 2007, an increase of 46.4% y-o-y and an
        increase of 138.9% since the company was admitted to trading on the
        Georgian Stock Exchange in November 2006.

    --  Assets Under Management at the Aldagi BCI Pension Fund grew 142.4% y-o-y
        to GEL 1.2 million at the end of 2007, while the number of Aldagi BCI
        Pension Fund members stood at 3,820 at the end of December 2007, up from
        2,154 members at the end of 2006.

Comments

'I am very pleased with Bank of Georgia's 2007 results. The Bank showed
significant growth across almost all business lines. Non-banking revenue and net
income has now become a significant portion of the Bank's revenue and net
Income. Our relentless stride toward achieving excellence in retail banking is
bearing fruit as reflected in the improved operational efficiency and continuous
market share gains across the board', noted Irakli Gilauri, Chief Executive
Officer.

'In 2007 we have continued our pioneering tradition as we completed our first
cross-border acquisition - purchased UBDP in Ukraine, issued the country's first
ever Eurobonds and a non-IFI syndicated loan. Bank of Georgia has demonstrated
its superior debt raising ability, raising a total of US$458.5 million from
international markets despite difficult market conditions in the second half of
the year. Our accomplishments throughout the year have been also recognized
internationally as Euromoney and The Banker named Bank of Georgia as the Best
Bank in the country in 2007. I would like to congratulate our team and our
shareholders with the successful completion of the year', commented Nicholas
Enukidze, Acting Chairman of the Supervisory Board.

                                 SEGMENT RESULTS

-0-
*T
                                                                 Growth y-o-y      2007(a)   Share         2006   Share
Total Operating Income (Revenue)
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                         77.98%       71,519  32.86%       40,184  35.88%
Retail Banking                                                        104.73%       93,255  42.84%       45,549  40.67%
Wealth Management                                                     103.61%        5,128   2.36%        2,518   2.25%
Ukraine                                                                   NMF        6,981   3.21%         n.a.     NMF
Galt & Taggart Securities                                             633.28%       20,906   9.60%        2,851   2.55%
Asset Management                                                     3316.15%       23,029  10.58%          674   0.60%
Insurance                                                              -0.22%        5,855   2.69%        5,868   5.24%
Corporate Center/Eliminations                                        -162.63%      (8,993)  -4.13%       14,360  12.82%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total Operating Income (Revenue)                                       94.35%      217,679 100.00%      112,005 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------

Total Recurring Operating Costs
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                         70.85%       15,500  17.77%        9,072  17.27%
Retail Banking                                                         49.64%       36,680  42.05%       24,512  46.67%
Wealth Management                                                      76.37%        1,842   2.11%        1,044   1.99%
Ukraine                                                                   NMF        4,785   5.48%         n.a.     NMF
Galt & Taggart Securities                                             658.89%        4,993   5.72%          658   1.25%
Asset Management                                                      177.69%        5,005   5.74%        1,802   3.43%
Insurance                                                              -3.06%        6,080   6.97%        6,272  11.94%
Corporate Center/Eliminations                                          34.85%       12,352  14.16%        9,160  17.44%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total Recurring Operating Costs                                        66.10%       87,235 100.00%       52,520 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------

Pre-Bonus Result
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                         79.89%       42,875  35.96%       23,834  51.94%
Retail Banking                                                        154.78%       40,268  33.78%       15,805  34.44%
Wealth Management                                                     163.76%        2,810   2.36%        1,065   2.32%
Ukraine                                                                   NMF        2,209   1.85%          n.a     NMF
Galt & Taggart Securities                                             618.99%       15,768  13.23%        2,193   4.78%
Asset Management                                                          NMF       17,412  14.61%      (1,128)  -2.46%
Insurance                                                              -4.26%        (386)  -0.32%        (403)  -0.88%
Corporate Center/Eliminations                                             NMF      (1,741)  -1.46%        4,523   9.86%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Pre-Bonus Result                                                      159.79%      119,215 100.00%       45,889 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Net Income
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                         94.56%       28,763  38.14%       14,784  55.22%
Retail Banking                                                        177.94%       26,951  35.74%        9,697  36.22%
Wealth Management                                                     191.24%        1,930   2.56%          663   2.48%
Ukraine                                                                   NMF        1,656   2.20%         n.a.     NMF
Galt & Taggart Securities                                             502.12%       10,598  14.05%        1,760   6.57%
Asset Management                                                          NMF       14,829  19.66%      (1,133)  -4.23%
Insurance                                                              13.83%        (714)  -0.95%        (627)  -2.34%
Corporate Center/Eliminations                                             NMF      (8,598) -11.40%        1,628   6.08%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Net Income                                                            181.70%       75,416 100.00%       26,772 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------

Basic EPS Contribution                                           Growth y-o-y Contribution   Share Contribution   Share
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                         23.24%         1.10  38.14%         0.90  55.22%
Retail Banking                                                         76.06%         1.03  35.74%         0.59  36.22%
Wealth Management                                                      84.49%         0.07   2.56%         0.04   2.48%
Ukraine                                                                   NMF         0.06   2.20%         n.a.     NMF
Galt & Taggart Securities                                             281.41%         0.41  14.05%         0.11   6.57%
Asset Management                                                          NMF         0.57  19.66%       (0.07)  -4.23%
Insurance                                                             -27.90%       (0.03)  -0.95%       (0.04)  -2.34%
Corporate Center/Eliminations                                             NMF       (0.33) -11.40%         0.10   6.08%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
Total                                                                  78.44%         2.89 100.00%         1.62 100.00%
------------------------------------------------------------- --------------- ------------ ------- ------------ -------
(a) Q4 2007 results for Ukraine
*T

-0-
*T
Total Assets                                                     Growth y-o-y      YE 2007   Share      YE 2006   Share
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                        165.76%    1,421,870  47.69%      535,026  44.10%
Retail Banking                                                        201.28%    1,125,152  37.74%      373,462  30.78%
Wealth Management                                                     611.95%       84,422   2.83%       11,858   0.98%
Ukraine                                                                   NMF      350,250  11.75%         n.a.     NMF
Galt & Taggart Securities                                             211.32%       62,184   2.09%       19,975   1.65%
Asset Management                                                      254.03%       78,580   2.64%       22,196   1.83%
Insurance                                                              65.45%       63,545   2.13%       38,408   3.17%
Corporate Center/Eliminations                                             NMF    (204,639)  -6.86%      212,402  17.51%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Assets                                                          145.72%    2,981,364 100.00%    1,213,326 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------

Loans to Clients, Gross
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                        105.08%      807,168  46.89%      393,596  55.04%
Retail Banking                                                        128.70%      644,045  37.42%      281,612  39.38%
Wealth Management                                                      96.25%       44,214   2.57%       22,529   3.15%
Ukraine                                                                   NMF      226,393  13.15%         n.a.     NMF
Galt & Taggart Securities                                                 NMF            -   0.00%            -     NMF
Asset Management                                                          NMF            -   0.00%            -     NMF
Insurance                                                                 NMF            -   0.00%            -     NMF
Corporate Center/Eliminations                                             NMF        (578)  -0.03%       17,324   2.42%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Loans to Clients                                                140.71%    1,721,242 100.00%      715,061 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------

Total Liabilities
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                        149.74%    1,137,858  46.99%      455,616  54.34%
Retail Banking                                                        169.83%      709,797  29.31%      263,057  31.37%
Wealth Management                                                      64.05%       94,867   3.92%       57,829   6.90%
Ukraine                                                                   NMF      283,457  11.71%         n.a.     NMF
Galt & Taggart Securities                                             328.96%       28,490   1.18%        6,642   0.79%
Asset Management                                                      320.38%       33,519   1.38%        7,973   0.95%
Insurance                                                              83.65%       45,324   1.87%       24,680   2.94%
Corporate Center/Eliminations                                         289.07%       88,206   3.64%       22,671   2.70%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Liabilities                                                     188.80%    2,421,518 100.00%      838,468 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------

Client Deposits
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                        138.31%      673,686  49.46%      282,688  50.51%
Retail Banking                                                         66.35%      342,118  25.12%      205,662  36.75%
Wealth Management                                                       6.72%       69,833   5.13%       65,436  11.69%
Ukraine                                                                   NMF      267,758  19.66%         n.a.     NMF
Galt & Taggart Securities                                              47.26%        8,630   0.63%        5,860   1.05%
Asset Management                                                          NMF            -   0.00%            -   0.00%
Insurance                                                                 NMF            -   0.00%            -   0.00%
Corporate Center/Eliminations                                             NMF            -   0.00%            -   0.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Total Client Deposits                                                 143.37%    1,362,025 100.00%      559,646 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------

Book Value Per Share                                             Growth y-o-y Contribution   Share Contribution   Share
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Corporate & Investment Banking                                         28.27%        10.46  50.73%         8.15  54.82%
Retail Banking                                                        169.60%        15.30  74.19%         5.67  38.14%
Wealth Management                                                         NMF       (0.38)  -1.87%         0.43   2.92%
Ukraine                                                                   NMF         2.46  11.93%         n.a.     NMF
Galt & Taggart Securities                                             124.79%         1.24   6.02%         0.55   3.71%
Asset Management                                                      183.30%         1.66   8.05%         0.59   3.94%
Insurance                                                             315.09%         0.67   3.25%         0.16   1.09%
Corporate Center/Eliminations                                        1469.92%      (10.78) -52.31%       (0.69)  -4.62%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
Book Value Per Share                                                   38.61%        20.62 100.00%        14.87 100.00%
----------------------------------------------------------- ----------------- ------------ ------- ------------ -------
*T

                              INCOME STATEMENT DATA

-0-
*T
Period Ended                  Q4 2007            Q4 2006       Growth(3)        2007              2006        Growth(3)
Consolidated, IFRS Based   US$(1)     GEL     US$(2)     GEL     Y-O-Y     US$(1)     GEL    US$(2)     GEL     Y-O-Y
000s, unless otherwise
 noted                      (Unaudited)        (Unaudited)                  (Unaudited)        (Unaudited)
 Interest Income              53,119 84,545      22,231 38,094    121.9%    156,913 249,742    58,518 100,271    149.1%
 Interest Expense             26,312 41,878       6,857 11,749    256.4%     73,309 116,678    19,579  33,549    247.8%
Net Interest Income           26,807 42,667      15,374 26,344     62.0%     83,604 133,064    38,939  66,722     99.4%
 Fee & Commission Income       7,472 11,892       3,119  5,345    122.5%     21,038  33,484    12,096  20,727     61.5%
 Fee & Commission
  Expense                      2,789  4,438         283    485    815.2%      4,776   7,601     1,282   2,196    246.1%
Net Fee & Commission
 Income                        4,683  7,453       2,836  4,860     53.4%     16,262  25,883    10,815  18,531     39.7%
 Income From Documentary
  Operations                   1,545  2,459         667  1,142    115.3%      4,894   7,789     2,751   4,714     65.2%
 Expense On Documentary
  Operations                     236    375         214    366      2.3%      1,180   1,878       733   1,257     49.4%
Net Income From
 Documentary Operations        1,310  2,084         453    776    168.7%      3,714   5,911     2,017   3,457     71.0%
Net Foreign Currency
 Related Income                6,052  9,632       2,361  4,046    138.1%     16,468  26,211     6,968  11,939    119.5%
 Net Insurance Income             36     58         504    864    -93.3%      3,558   5,662     2,678   4,589     23.4%
 Brokerage Income                460    732         544    932    -21.4%      2,267   3,609     1,574   2,698     33.8%
 Asset Management Income       1,530  2,435        n.a.   n.a.      n.a.      1,539   2,450      n.a.    n.a.      n.a.
 Realised Net Investment
  Gains (Losses)                  73    116        n.a.   n.a.      n.a.      3,533   5,622      n.a.    n.a.      n.a.
 Other                         1,962  3,123          11     18  17068.3%      5,822   9,267     2,375   4,069    127.7%
Net Other Non-Interest
 Income                        4,061  6,464       1,059  1,814    256.3%     16,719  26,610     6,627  11,356    134.3%
Net Non-Interest Income       16,106 25,634       6,709 11,496    123.0%     53,163  84,615    26,427  45,283     86.9%
Total Operating Income
 (Revenue)                    42,913 68,300      22,083 37,840     80.5%    136,768 217,679    65,366 112,005     94.3%
 Personnel Costs               7,854 12,501       4,139  7,093     76.2%     25,089  39,932    13,032  22,330     78.8%
 Selling, General &
  Administrative Costs         5,068  8,066       2,665  4,567     76.6%     15,367  24,458     8,951  15,337     59.5%
 Procurement &
  Operations Support
  Expenses                     1,564  2,490       1,424  2,440      2.0%      5,800   9,231     3,100   5,312     73.8%
 Depreciation &
  Amortization                 1,964  3,126       1,200  2,057     52.0%      6,180   9,836     3,436   5,887     67.1%
 Other Operating
  Expenses                     1,575  2,507         381    654    283.6%      2,374   3,779     2,132   3,654      3.4%
Total Recurring
 Operating Costs              18,026 28,690       9,811 16,810     70.7%     54,810  87,235    30,651  52,520     66.1%
Normalised Net Operating
 Income                       24,887 39,610      12,273 21,029     88.4%     81,958 130,444    34,715  59,485    119.3%
Net Non-Recurring Income
 (Costs)                       3,109  4,949           -      -    NMF(4)      3,023   4,811         -       -    NMF(4)
Profit Before Provisions
 & Bonuses                    27,996 44,559      12,273 21,029    111.9%     84,980 135,255    34,715  59,485    
127.4%
Net Provision Expense          5,131  8,166       2,171  3,720    119.5%     10,078  16,040     7,934  13,596     18.0%
Pre-Bonus Result              22,866 36,393      10,102 17,309    110.3%     74,902 119,215    26,781  45,889    159.8%
Bonuses & Share Based
 Compensation Expenses         3,173  5,050       2,550  4,369     15.6%     16,019  25,496     6,412  10,987    132.1%
Pre-Tax Income                19,693 31,343       7,552 12,940    142.2%     58,883  93,719    20,369  34,903    168.5%
 Income Tax Expenses           3,641  5,795       2,025  3,469     67.0%     11,499  18,303     4,745   8,131    125.1%
Net Income                    16,052 25,549       5,527  9,470    169.8%     47,384  75,416    15,624  26,772    181.7%

Weighted Average Shares
 Outstanding (000s)                                                                  26,057            16,506
Fully Diluted Number of
 Shares Period End
 (000s)                                                                              27,250            27,229
EPS (Basic)                                                                    1.82    2.89      0.95    1.62    78.44%
EPS (Fully Diluted)                                                            1.74    2.77      0.57    0.98   181.49%
*T

(1 )Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.5916 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 31 December 2007

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7135 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 31 December 2006

(3)Growth calculations based on GEL values

(4) Not meaningful

                               BALANCE SHEET DATA

-0-
*T
                                                                          31-Dec-07       Growth(2)      31-Dec-06
Consolidated, IFRS Based                                             US$(1)           GEL   Y-O-Y   US$(3)          GEL
000s, unless otherwise noted                                             (Unaudited)                    (Unaudited)

Cash & Cash Equivalents                                                118,401    188,446     74.8%   62,918    107,809
Loans & Advances To Credit Institutions                                260,590    414,756    531.2%   38,349     65,711
 Mandatory Reserve With NBG                                             54,148     86,182     40.2%   35,869     61,461
 Other Accounts With NBG                                                56,199     89,446  37777.4%      138        236
 Balances With & Loans To Other Banks                                  150,244    239,128   5858.8%    2,342      4,013
Available-For-Sale Securities                                            5,833      9,285     67.8%    3,230      5,534
Treasuries & Equivalents                                                50,111     79,757    -57.4%  109,276    187,244
Other Fixed Income Instruments                                          95,652    152,240   3397.4%    2,540      4,353
 Gross Loans To Clients                                              1,081,454  1,721,242    140.7%  417,310    715,061
 Less: Reserve For Loan Losses                                        (23,574)   (37,521)     77.6% (12,330)   (21,128)
Net Loans To Clients                                                 1,057,880  1,683,721    142.6%  404,980    693,933
Investments In Other Business Entities, Net                             27,077     43,096   3421.8%      714      1,224
Property & Equipment Owned, Net                                        127,005    202,142    202.5%   39,001     66,828
Intangible Assets Owned, Net                                             2,370      3,772     19.7%    1,838      3,150
Goodwill                                                                72,001    114,597    184.5%   23,507     40,279
Tax Assets - Current & Deferred                                          3,769      5,998    NMF(4)        -          -
Prepayments & Other Assets                                              52,496     83,553    124.2%   21,745     37,261
Total Assets                                                         1,873,186  2,981,363    145.7%  708,098  1,213,326

Client Deposits                                                        855,758  1,362,025    143.4%  326,610    559,646
Deposits & Loans From Banks                                             19,290     30,701   3448.6%      505        865
Borrowed Funds                                                         525,248    835,984    274.0%  130,444    223,516
Insurance Related Liabilities                                           25,968     41,330    436.8%    4,493      7,699
Issued Fixed Income Securities                                           3,137      4,993    365.3%      626      1,073
Tax Liabilities - Current & Deferred                                    19,221     30,593    275.9%    4,749      8,138
Accruals & Other Liabilities                                            72,815    115,892    208.8%   21,903     37,531
Total Liabilities                                                    1,521,436  2,421,518    188.8%  489,331    838,468

Ordinary Shares                                                         17,061     27,155      7.7%   14,708     25,202
Share Premium                                                          196,051    312,035     12.5%  161,914    277,440
Treasury Shares                                                        (1,122)    (1,786)     77.9%    (586)    (1,004)
Retained Earnings                                                       39,836     63,403     71.5%   21,578     36,974
Revaluation & Other Reserves                                            46,211     73,549   1299.1%    3,068      5,257
Net Income For The Period                                               47,384     75,416    181.7%   15,624     26,772
Shareholders' Equity Excluding Minority Interest                       345,421    549,772     48.3%  216,306    370,641
Minority Interest                                                        6,329     10,073    138.9%    2,461      4,217
Total Shareholders' Equity                                             351,750    559,845     49.3%  218,767    374,858
Total Liabilities & Shareholders' Equity                             1,873,186  2,981,363    145.7%  708,098  1,213,326
Shares Outstanding                                                             27,154,918                    25,202,009
Book Value Per Share                                                     12.96      20.62    38.61%     8.68      14.87
*T

(1) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.5916 per US$1.00, such exchange rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 31 December 2007

(2) Growth calculations based on GEL values

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

(4) Not meaningful

                                   KEY RATIOS

-0-
*T
                                                                                               2007                2006
Profitability Ratios
ROAA,( 1)                                                                                      3.8%                3.4%
ROA,                                                                                           2.5%                2.2%
ROAE,(2)                                                                                      17.7%               16.5%
ROE,                                                                                          13.5%                7.1%
Interest Income To Average Interest Earning Assets, (3)                                       15.4%               16.7%
Cost Of Funds, (4)                                                                             8.0%                5.8%
Net Spread (5)                                                                                 7.4%               10.9%
Net Interest Margin (6)                                                                        8.2%               11.1%
Net Interest Margin, Normalised, (7)                                                           8.2%               10.6%
Loan Yield (8)                                                                                21.3%               17.4%
Interest Expense To Interest Income                                                           46.7%               33.5%
Net Non-Interest Income To Average Total Assets,                                               4.2%                5.8%
Net Non-Interest Income To Revenue (9)                                                        38.9%               40.4%
Net Fee And Commission Income To Average Interest Earning Assets, (10)                         1.6%                3.1%
Net Fee And Commission Income To Revenue                                                      11.9%               16.5%
Operating Leverage (11)                                                                       24.4%               18.8%
Total Operating Income (Revenue)/Total Assets,                                                 7.3%                9.2%
Recurring Earning Power (12)                                                                   6.7%                7.7%
Net Income To Revenue                                                                         34.6%               23.9%

Efficiency Ratios
Operating Cost To Average Total Assets, (13)                                                   4.3%                6.8%
Cost To Average Total Assets (14)                                                              5.4%                8.2%
Cost / Income (15)                                                                            49.6%               56.7%
Cost /Income Normalised (16)                                                                  51.8%               56.7%
Cost / Income, Bank of Georgia, Standalone (18)                                               51.1%               51.2%
Cash Cost/Income(17)                                                                          45.1%               51.4%
Total Employee Compensation Expense To Revenue (19)                                           30.1%               29.7%
Total Employee Compensation Expense To Cost                                                   60.6%               52.5%
Total Employee Compensation Expense To Average Total Assets,                                   3.3%                4.3%

Liquidity Ratios
Net Loans To Total Assets (20)                                                                56.5%               57.2%
Average Net Loans To Average Total Assets                                                     53.2%               61.3%
Interest Earning Assets To Total Assets                                                       78.2%               78.4%
Average Interest Earning Assets To Average Total Assets                                       80.9%               77.3%
Liquid Assets To Total Assets (21)                                                            25.4%               25.0%
Net Loans To Client Deposits                                                                 123.6%              124.0%
Average Net Loans To Average Client Deposits                                                 125.1%              113.4%
Net Loans To Total Deposits (22)                                                             120.9%              123.8%
Net Loans To Total Liabilities                                                                69.5%               82.8%
Total Deposits To Total Liabilities                                                           57.5%               66.8%
Client Deposits To Total Deposits                                                             97.8%               99.8%
Client Deposits To Total Liabilities                                                          56.2%               66.7%
Current Account Balances To Client Deposits                                                   42.1%               54.4%
Demand Deposits To Client Deposits                                                             6.7%                6.4%
Time Deposits To Client Deposits                                                              51.1%               39.2%
Total Deposits To Total Assets                                                                46.7%               46.2%
Client Deposits To Total Assets                                                               45.7%               46.1%
Client Deposits To Total Equity (times) (23)                                                   2.43                1.49
Due From Banks / Due To Banks (24)                                                            1351%               7597%
Leverage (times) (25)                                                                           4.3                 2.2
*T

-0-
*T
                                                                                               2007                2006
Asset Quality
NPLs (in GEL) (26)                                                                           25,325              16,266
NPLs to Gross Loans (27)                                                                       1.5%                2.3%
Cost of Risk, Annualised (28)                                                                  1.5%                2.7%
Cost of Risk, Normalised (29)                                                                  1.5%                2.2%
Reserves for Loan Losses to Gross Loans (30)                                                   2.2%                3.0%
NPL Coverage ratio (31)                                                                      148.2%              129.9%
Equity to Average Net Loans to Clients                                                        52.3%               78.8%
Total Equity To Net Loans                                                                     33.3%               54.0%

Capital Adequacy:
Equity To Total Assets                                                                        18.8%              30.90%
BIS Tier I Capital Adequacy Ratio (32)                                                        21.4%              44.90%
BIS Total Capital Adequacy Ratio (33)                                                         20.8%              41.80%
NBG Tier I Capital Adequacy Ratio (34)                                                        13.2%              23.20%
NBG Total Capital Adequacy Ratio (35)                                                         13.1%              28.50%

Per Share Values:
Basic EPS (GEL) (36)                                                                           2.89                1.62
Basic EPS (US$)                                                                                1.82                0.95
Fully Diluted EPS (GEL) (37)                                                                   2.77                0.98
Fully Diluted EPS (US$)                                                                        1.74                0.57
Book Value Per Share (GEL) (38)                                                               20.62               14.87
Book Value Per Share (US$)                                                                    12.96                8.68
Ordinary Shares Outstanding - Weighted Average, Basic                                    26,057,022          16,505,701
Ordinary Shares Outstanding - Period End                                                 27,154,918          25,202,009
Ordinary Shares Outstanding - Fully Diluted                                              27,249,918          27,229,418

Selected Operating Data:
Full Time Employees (FTE)                                                                     4,459               2,226
FTEs, Bank of Georgia Standalone                                                              2,692               1,601
Total Assets per FTE (GEL Thousands)                                                            669                 558
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands)                              1,107                 776
Branches                                                                                        117                 100
ATMs                                                                                            250                 124
Plastic Cards (Thousands)                                                                       647                 286
POS Terminals                                                                                 1,594                 471
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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     Fully Diluted EPS equals Net Income of the period divided by the number of outstanding Ordinary Shares as of the
        period end plus number of ordinary shares in contingent liabilities;
38     Book Value Per Share equals Total Equity plus Treasury Shares, divided by the total number of outstanding
        Ordinary Shares.
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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 35.4% market share by total assets (all data according to the NBG
as of December 31, 2007). The major component of the Galt & Taggart Index, the
bank has 117 branches and over 705,000 retail and more than 64,000 corporate
current accounts. The bank offers a full range of retail banking and corporate
and investment banking services to its customers across Georgia. The bank also
provides a wide range of corporate and retail insurance products through its
wholly-owned subsidiary, Aldagi BCI, as well as asset & wealth management
services.

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

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Standard & Poor's       'B+/B'                            Stable
Moody's                 'B3/NP' (FC) & 'Ba1/NP' (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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Nicholas Enukidze                           Irakli Gilauri                     Macca Ekizashvili
Acting Chairman of the Supervisory Board    Chief Executive Officer            Head of Investor Relations
+995 32 444 800                             +995 32 444 109                    +995 32 444 256
nenukidze@bog.ge                            igilauri@bog.ge                    ir@bog.ge
*T

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

The financial information as of 2007 and 2006 contained in this news report is
unaudited and reflects the best estimates of management. The bank's actual
results may differ significantly from the amounts reflected herein as a result
of various factors.