Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).

  • FEAnalytics.com
  • FEInvest.net
  • FETransmission.com
  • Investegate.co.uk
  • Trustnet.hk
  • Trustnetoffshore.com
  • Trustnetmiddleeast.com

For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.

WHAT INFORMATION DO WE COLLECT ABOUT YOU?

We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.

COOKIES

In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.

HOW WE USE INFORMATION

We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.

ACCESS TO YOUR INFORMATION AND CORRECTION

We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.

WHERE WE STORE YOUR PERSONAL DATA

The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.

CHANGES TO OUR PRIVACY POLICY

Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.

OTHER WEBSITES

Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.

CONTACT

If you want more information or have any questions or comments relating to our privacy policy please email publishing@financialexpress.net in the first instance.

 Information  X 
Enter a valid email address

JSC Bank of Georgia (BGEO)

  Print      Mail a friend

Tuesday 27 May, 2008

JSC Bank of Georgia

1st Quarter Results

1.48 GEL/US$ Q1 2008 period end

   1.55 GEL/US$ Q1 2008 average
   1.70 GEL/US$ Q1 2007 period end
   1.71 GEL/US$ Q1 2007 average
                  Bank of Georgia
                  

JSC BANK OF GEORGIA ANNOUNCES CONSOLIDATED Q1 2008 RESULTS

-0-
*T
Millions, unless otherwise noted                                Q1 2008                    Growth y-o-y (1)
                                                     Bank of Georgia Consolidated
                                                    US$                     GEL
Bank of Georgia (Consolidated, Unaudited,
 IFRS Based)
Total Operating Income (Revenue)(2)                54.9                    81.1                         98%
Recurring Operating Costs                          30.1                    44.5                        103%
Normalised Net Operating Income(3)                 24.8                    36.6                         91%
Net Income                                         21.6                    31.9                        134%
Consolidated EPS (Basic), GEL & US$(4)             0.74                    1.09                        101%
Consolidated EPS (Fully Diluted), GEL &
 US$(5)                                            0.69                    1.02                        104%
ROAA(6)%                                                                    4.2
ROA (7) %                                                                   4.1
ROAE(8) %                                                                  19.6
ROE(9)%                                                                    17.1
*T

Bank of Georgia (LSE: BGEO, GSE: GEB), the leading Georgian universal bank,
announced today its Q1 2008 consolidated results (IFRS based, derived from
managementas accounts), reporting record quarterly Net Income of GEL 31.9
million, (up 133.6% y-o-y and 24.9% q-o-q) or consolidated Basic EPS of US$0.74
(up 101.5% y-o-y and 16.0% q-o-q).

(1) Compared to the same period in 2007; 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.

Q1 2008 Summary

Total Operating Income (Revenue) grew by 97.5% y-o-y (up 18.7% q-o-q) to GEL
81.1 million in Q1 2008. Net Interest Income of GEL 49.8 million grew by 91.1%
y-o-y (up 16.6% q-o-q), driven by the loan book growth, mainly in retail
banking. Strong growth of the retail loan book also contributed to the
strengthening of Net Interest Margin, which increased to 8.9% in Q1 2008 from
8.1% in Q4 2007. Net Non-Interest Income of GEL 31.3 million increased by 108.7%
y-o-y (up 22.2% q-o-q) and was mostly driven by solid growth in Foreign Currency
Related Income (GEL 13.2 million, up 209.3% y-o-y and 37.3% q-o-q), Net Fee and
Commission Income and Net Income from Documentary Operations (GEL 11.6 million,
up 76.2% y-o-y and 21.9% q-o-q), and Net Other Non-Interest Income (GEL 6.5
million, up 56.6% y-o-y and 0.2% q-o-q). Recurring Operating Costs(1) grew to
GEL 44.5 million, an increase of 103.1% y-o-y (up 31.8% q-o-q). The growth was
mostly driven by increased personnel and administrative expenses due to branch
and headcount expansion in Georgia, as well as rearrangement of compensation
structure and new senior hiring in Ukraine. Net Normalised Operating Income
('NNOI')(1) was up 91.1% y-o-y (up 5.9% q-o-q) to GEL 36.6 million in Q1 2008.

The bank's consolidated Total Assets reached GEL 3.2 billion by 31 March 2008,
up 92.7% y-o-y (up 6.6% year-to-date), while Gross Loans amounted to GEL 1,856
million, a 122.1% increase y-o-y (up 5.9% year-to-date). Corporate Gross Loans
to Clients in Georgia grew by 1.8% year-to-date to GEL 821.4 million, retail
Gross Loans to Clients in Georgia grew by 17.2% year-to-date to GEL 754.7
million and private banking Gross Loans To Clients in Georgia decreased by 21.1%
year-to-date to GEL 34.9 million. As of 31 March 2008 the combined share of
retail and private banking (excluding Universal Bank of Development and
Partnership ('UBDP'), the bank's Ukrainian Subsidiary) in Bank of Georgia's
Gross Loans To Clients, increased to 49.3% from 43.8% as of 31 March 2007.
UBDP's Total Assets grew by 2.8% year-to-date and amounted to GEL 360.0 million
and Gross Loans to Clients increased by 12.6% to GEL 254.9 million in Q1 2008.
UBDP accounted for approximately 11.4% and 13.7% of the Bank's Total Assets and
Total Gross Loans, respectively.

The bank's consolidated Total Liabilities reached GEL 2.4 billion by 31 March
2008, up 92.4% y-o-y (up 0.2% year-to-date). Client Deposits in Georgia reached
GEL 1.1 billion up 84.4% y-o-y (up 2.1% year-to-date), slower growth reflecting
intensifying competition for deposits in Georgia and 6.91% appreciation of
Georgian Lari against the US dollar year-to-date). Client Deposits in Ukraine
experienced a decrease of GEL 51.8 million (19.3% decrease year-to-date) caused
by the departure of several sizable depositors in Ukraine due to UBDP's
restructuring. Bank of Georgia's Consolidated Client Deposits were GEL 1,326
million as at 31 March 2008, representing an increase of 120.2% y-o-y and a
decrease of 2.2% year-to-date.

As of 31 March 2008 Bank of Georgia on standalone basis held market share of
33.7%, 32.2% and 28.3% in Georgia by total assets, gross loans, and deposits
respectively(2) . On a year-on-year basis, the bank's market shares grew by
0.7%, 4.6% and 3.4% by total assets, gross loans and deposits, respectively. The
strong P&L performance resulted in Bank of Georgia capturing
47.1%<superbanking market share by Net Income in Georgia on a
standalone basis in Q1 2008, which compares to 26.7% in Q1 2007.

Total Shareholders' Equity grew by GEL 361.4 million in Q1 2008 (GEL 188.7
million year-to-date) and amounted to GEL 746.7 million. The year-to-date growth
was mainly attributed to Q1 2008 Net Income of GEL 31.9 million, as well as a
capital increase through the placement of four million new ordinary shares in
the form of GDRs on 13 February 2008, which raised gross proceeds of US$100
million.

Despite the capital increase in February 2007, Bank of Georgia's Consolidated
ROAE increased to 19.6% in Q1 2008 as compared to consolidated ROAE of 14.4% in
Q1 2007 and 17.7% for the full year 2007. Consolidated ROAA grew to 4.2% in Q1
2008 from 3.8% in Q1 2007 and 3.8% for the full year 2007. Equity book value per
share stood at GEL 23.90 (US$16.19) as at 31 March 2008, up 55.3% y-o-y (up
15.9% year-to-date).

The Extraordinary Meeting of Shareholders (the 'EGM') held on 22 February 2007,
acknowledged the resignation of Lado Gurgenidze as the Chairman of the
Supervisory Board of Bank of Georgia and elected Mr. Kaha Kiknavelidze as a new
member of the Supervisory Board. Subsequently, Mr. Nicholas Enukidze, Vice
Chairman of the Supervisory Board since November 2006 and Acting Chairman since
November 2007, was elected as Chairman of the Supervisory Board by the
Supervisory Board.

(1) Starting in Q1 2008 Bonuses and Share Based Compensation Expense is included
in the calculation of the Recurring Operating Costs. For the purposes of this
press release for all previous reporting periods Recurring Operating Costs are
recalculated using the new methodology and NNOI is adjusted to the changes in
the calculation methodology of Recurring Operating Costs.

(2) 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 (non-IFRS, based on National Bank of Georgia requirements)
filed by Georgian banks. Deposit market share is calculated based on the amount
of total deposits, including client and interbank deposits

Strategic Business Unit and Business Unit Overview

Corporate Banking (CB)(3)

Discussion Of Results

In Q1 2008 CB continued to successfully leverage Bank of Georgia's position as
the leading financial institution in Georgia, increasing its operating
efficiency and profitability. Allocated Revenues grew 75.4% y-o-y to GEL 24.1
million (up 7.2% q-o-q). Operating leverage of CB has improved, as the growth
rate of allocated Recurring Costs (up 92.1% y-o-y and down by 13.6% q-o-q)
lagged the growth rate of the allocated Revenues. NNOI grew 69.4% y-o-y to GEL
17.1 million (up 18.9% q-o-q), contributing 46.7% to the consolidated NNOI. Net
Income grew 40.5% y-o-y to GEL 10.5 million (up 56.6% q-o-q), contributing 32.9%
to the consolidated Net Income. Gross Loans grew 82.2% y-o-y to GEL 821.4
million (up 1.8% year-to-date). Allocated Client Deposits stood at GEL 652.7
million up 109.5% increase y-o-y and down by 2.5% year-to-date, which was caused
by the notably increased competition for deposits in Q1 2008 driven by wholesale
funding constraints and higher interest rate environment resulting from
significant increase in benchmark interest rate. Allocated Total CB Assets
amounted to GEL 1,431 million, up 106.5% y-o-y (up 0.7% year-to-date), while
allocated Total CB Liabilities stood at GEL 1,079 million, up 78.6% y-o-y (down
by 2.1% year-to-date).

Highlights

    --  Major new corporate client acquisitions include Alon Group Israel, an
        investment company, JSC Caucasus Energy and Infrastructure, a fund
        investing in energy and infrastructure assets in Georgia, and Georgian
        Trading Company, a high end (Bali, Trussardi etc.) apparel retailer in
        Tbilisi.

    --  Increased the number of corporate clients using the bank's payroll
        services from approximately 700 at the end of 2006 to over 850 by 31
        March 2007. By the end of Q1 2008, the number of individual clients
        serviced through the corporate payroll programs administered by the bank
        increased from approximately 150,000 at the beginning of the year to
        153,984.

    --  Approximately 4,000 legal entities opened accounts at the bank in Q1
        2008, bringing the total to approximately 68,000.

(3) Previously Corporate Banking business unit was referred to as Corporate and
Investment Banking ('CIB')

Retail Banking (RB)

Discussion Of Results

In Q1 2008 we continued to witness vibrant demand for loans from our retail
customers. Retail banking business in Georgia continued its impressive growth
making significant contribution to the bank's loan portfolio growth and net
interest margin. Allocated Revenues grew 100.9% y-o-y to GEL 37.7 million (up
35.1% q-o-q). Operating leverage of RB has improved, as the growth rate of
allocated Recurring Costs (up 91.2% y-o-y and 93.2% q-o-q), driven primarily by
the branch and headcount expansion, lagged behind the growth rate of the
allocated Revenues. NNOI grew 110.6% y-o-y to GEL 19.7 million (up 5.9% q-o-q),
contributing 53.7% to the consolidated NNOI. Net Income grew 84.1% y-o-y to GEL
12.9 million (up 113.5% q-o-q), contributing 40.5% to the bank's consolidated
Net Income. Gross Loans grew 124.4% y-o-y to GEL 754.7 million (up 17.2%
year-to-date), driven by the increased lending activity due to high demand for
mortgages, car loans, consumer loans, credit cards and other retail banking
products. Allocated Client Deposits grew 56.5% y-o-y to GEL 363.6 million (up
6.9% year-to-date), reflecting increased competition for deposits. Allocated
Total RB Assets amounted to GEL 1,313 million, up 153.2% y-o-y (up 16.7%
year-to-date), while allocated Total RB Liabilities reached GEL 751.7 million,
up 66.8% y-o-y (up 5.9% year-to-date).

Highlights

    --  Increased the number of retail current accounts from approximately
        705,000 at the beginning of the year to over 770,000 as at 31 March
        2008.

    --  Opened 14 new branches (service centers) in Georgia, bringing the total
        number of branches to 131 by 31 March 2008.

    --  Remodeled four pilot branches based on new brand concept and design
        developed by Allen International, a UK based integrated strategic design
        consultancy. The pilot branches included two pioneering mortgage centers
        in Georgia.

    --  Stepped up the issuance of credit cards, as the number of credit cards
        issued reached approximately 38,500 during Q1 2008 compared to 5,861
        credit cards issued in Q1 2007. As of 31 March 2008, the number of
        credit cards outstanding amounted to 147,075, up from 108,616 at the
        beginning of the year. Increased the issuance of debit cards, with over
        70,000 debit cards issued in Q1 2008, compared to approximately 63,000
        debit cards issued during Q1 2007. The number of debit cards outstanding
        increased from approximately 538,000 at the beginning of the year to
        approximately 595,468 by 31 March 2008.

    --  Continued to make gains in merchant acquiring as the installed POS
        terminal footprint grew to 2,063 compared to 1,594 at year end 2007.

    --  Total number of cards serviced by Georgian Card grew from 876,263 at
        year end 2007 to 977,572 by 31 March 2008, while the number of
        transaction authorisations processed by Georgian Card in Q1 2008 grew
        146.3% y-o-y to approximately 7.2 million. The volume of transactions
        processed grew to GEL 496.7 million, up 189.8% y-o-y.

    --  Continued investing in the electronic banking channels, as the number of
        ATMs grew to 310 by 31 March 2008 (up from 250 at the end of 2007),
        number of mobile banking users reached 44,002 up 10.8% from the
        beginning of the year and number of registered Internet banking users
        grew 44.2% to over 165,000.

    --  Increased car loan originations for Q1 2008 to GEL 17.1 million (up
        419.7% y-o-y and 46.2% q-o-q). Car loans outstanding by 31 March 2008
        stood at GEL 46.5 million, up 305.0% y-o-y (25.4% year-to-date).
        Increased mortgage loan originations to GEL 77.5 million in Q1 2008 (up
        161.5% y-o-y and 18.9% q-o-q). Mortgage loans outstanding on 31 March
        2008 stood at GEL 222.4 million, up 175.2% y-o-y (up 23.1%
        year-to-date).

    --  Launched a new mortgage strategy in Georgia designed to provide
        integrated real estate development, real estate brokerage and mortgage
        lending service to retail clients. Under the new strategy the bank has
        entered into a joint venture with JSC Iberia Real Estate, a leading
        Georgian real estate development company, aimed at developing over
        55,000 sq/m of economy class residential housing over the next three
        years. Presto, a real estate brokerage established by Bank of Georgia
        which is leveraging the bank's extensive branch network to build its
        distribution capabilities, will serve as the exclusive sales agent and
        Bank of Georgia will provide customized mortgage products for the
        properties developed by the joint venture.

    --  Jointly with Magti, Georgia's leading Mobile Operator, launched a
        co-branded credit card (MagtiCard) distributed to Magti's top 60,000
        retail customers, which will serve as the platform for the introduction
        of Georgia's first credit based mobile service for retail customers. A
        50% discount on roaming services and 25% discount on international calls
        offered by Magti to MagtiCard holders makes this card particularly
        attractive for Magti's business-oriented customers.

    --  Won a tender for the exclusive right for management of municipal bus
        payment system, which will be seamlessly integrated with Tbilisi metro
        (subway) payment system already managed by the bank since September
        2006. As the result, Bank of Georgia will have access to an estimated
        900,000 residents of Tbilisi who use municipal transport regularly. Bank
        of Georgia's contactless debit cards will be introduced as the most
        convenient method of payment of transport fare. As a pilot project, a
        student contact less co-branded debit card (BaliCard), which can be used
        to pay metro fare, was successfully introduced in Q4 2007.

Wealth Management (WM)

Discussion Of Results

In Q1 2008 Bank of Georgia's WM unit focused on streamlining its operations in
Georgia, including the appointment of Mr. Givi Giorgadze, former head of
corporate business at Aldagi BCI, as the new Head of WM in Georgia, and
developing an offshore private banking offering for the markets with large
Georgian communities, which could provide an important source of client deposits
for the bank. Mr. Zurab Maisuradze, former Head of WM in Georgia will spearhead
the development of the offshore private banking. Allocated Revenues for WM was
GEL 1.6 million in Q1 2008 increasing 98.8% y-o-y (down by 0.7% q-o-q).
Allocated Recurring Costs of GEL 0.7 million grew 107.3% y-o-y (down 17.8%
q-o-q). Net Income grew 196.6% y-o-y (up 17.8% q-o-q) to GEL 0.7 million,
contributing 2.1% to the consolidated Net Income. Gross Loans which stood at GEL
34.9 million grew 17.2% y-o-y, but decreased 21.1% year-to-date due to the
repayment of several sizeable loans in Q1 2008. Allocated Client Deposits
increased by 40.8% y-o-y (up 10.1% year-to-date) to GEL 76.5 million. Allocated
Total WM Assets amounted to GEL 61.3 million, up 34.0% y-o-y (down 27.4%
year-to-date), while allocated Total WM Liabilities reached GEL 94.3 million, up
28.2% y-o-y (down 0.6% year-to-date).

Ukraine

Discussion Of Results

In Q1 2008 UBDP underwent a significant change in terms of its transparency,
organizational structure and risk processes, which resulted in the departure of
several corporate clients, a number of high-profile additions to the management
team and the rearrangement of UBDP's compensation structure. As a result, in Q1
2008, UBDP's Revenue decreased by 6.9% q-o-q to GEL 6.5 million and Net Loss for
the period stood at GEL 0.7 million, as compared to Net Income of GEL 1.7
million for Q4 2007. Gross Loans reached GEL 254.9 million, up 12.6%
year-to-date and Client Deposits amounted to GEL 216.0 million, down 19.3%
year-to-date. UBDP's Total Assets increased to GEL 360.0 million (up 2.8%
year-to-date), while Total Liabilities reached GEL 291.7 million (up 2.9%
year-to-date).

Galt & Taggart Securities

Discussion Of Results

Galt & Taggart Securities, Bank of Georgia's wholly-owned investment banking
subsidiary, was negatively affected by challenging capital markets and resulting
slowdown in trading activity and losses on proprietary trading book in Q1 2008.
Revenue of GEL 1.6 million in Q1 2008 represents a 14.2% increase y-o-y and a
26.6% decrease q-o-q. Recurring Operating Costs amounted to GEL 3.8 million, as
compared to the Recurring Operating Costs of GEL 1.0 million in Q1 2007. The
growth of Recurring Operating Costs reflects the build-out of Galt & Taggart
Securities operations in Ukraine and Georgia over the last year. Galt & Taggart
Securities recorded a net loss of GEL 1.9 million in Q1 2008.

In Q1 2008 Galt & Taggart Securities continued to hold the leading position in
equities trading in Georgia, with an approximately 86.3% market share in terms
of trading volume and ranked #10 among broker-dealers with an approximately 2.7%
market share by equities trading volume in Ukraine.

Asset Management

Galt & Taggart Asset Management (GTAM), the bank's asset management arm,
continued its strong development in Q1 2008. Assets Under Management of GTAM
stood at approximately US$125 million as of 31 March 2008, an increase of 65.2%
since the year end 2007 and 86.8% increase since its establishment in October
2007. Revenues grew to GEL 12.4 million in Q1 2008, up 3806.8% y-o-y (down 39.9%
q-o-q). Recurring Operating Costs increased 191.5% y-o-y (94.0% q-o-q) to GEL
2.8 million. Net Income stood at GEL 8.2 million in Q1 2008 and contributed
25.5% to the consolidated Net Income. Assets grew to GEL 94.3 million as at 31
March 2008, up 144.1% y-o-y (up 20.0% year-to-date). Liabilities reached GEL
32.7 million by 31 March 2008, up 87.0% y-o-y (down 2.7% year-to-date). Galt &
Taggart Capital and SB Real Estate, funds managed by GTAM and majority owned by
the bank, are currently fully consolidated in Bank of Georgia's financial
statements and are reported under Asset Management business unit.

Insurance

Discussion Of Results

Aldagi BCI, the bank's wholly-owned Georgian insurance subsidiary, showed a
strong growth in Gross Premiums Written combined with a marginal loss for the
quarter, which was mainly due to Aldagi BCI's participation in a the state
health care program for socially vulnerable citizens and school teachers
launched in Q4 2007, which brought 84,000 new clients to Aldagi BCI. This
program will end in September 2008. Unlike other major Georgian insurance
companies, Aldagi BCI chose not to participate in a new similar program aimed at
550,000 socially vulnerable citizens announced in Q1 2008. Gross Premiums
Written of Aldagi BCI, the bank's wholly-owned insurance subsidiary, increased
by 56.5% y-o-y to GEL 13.6 million (up 18.9% q-o-q). Net Premiums Earned grew
147.2% y-o-y to GEL 8.0 million (up 39.6% q-o-q). Revenues decreased by 17.7%
y-o-y to GEL 1.8 million (up 1120.5% q-o-q). Net Loss equaled GEL 0.4 million in
Q1 2008. Total Insurance Assets amounted to GEL 64.9 million, up 39.7% y-o-y (up
2.1% year-to-date) while Total Insurance Liabilities reached GEL 47.7 million,
up 14.3% y-o-y (up 5.2% year-to-date) as at 31 March 2008.

Highlights

    --  Major new corporate client acquisitions include EnergoPro, a leading
        energy distribution company in Georgia and Ashrom, an Israel-based main
        subcontractor of the Millennium Challenge Georgia's infrastructure
        projects in Georgia.

    --  Opened the third branch of Aldagi BCI's My Family Clinic in Tbilisi.

Comments

'We are very pleased to report strong Q1 2008 results. Our profitability remains
robust driven by our market-leading retail banking franchise and corporate
banking businesses in Georgia. Throughout Q1 2008, despite the interest rate
increase on loans, we continued to witness vibrant demand for lending products
from customers in Georgia. At the same time, competition for deposits has
increased notably driven by wholesale funding constraints and higher interest
rate environment resulting from significant increase in benchmark interest rate
of the National Bank of Georgia. In this challenging market conditions, we made
it our priority to continue capturing profitable growth opportunities while
maintaining a disciplined approach to capital management and risk control.

In Q1 2008 we continued our work on the integration and repositioning for growth
of our Ukrainian business and expect to see improvement in the operating results
later this year. Our investment banking business, which was negatively affected
by turbulent capital markets, concentrated on improving its operations and
closer alignment with the banking businesses in Georgia and Ukraine. At the same
time our investments made over last several years in funds managed by GTAM
showed impressive performance making important contribution to our bottom line',
commented Nicholas Enukidze, Chairman of the Supervisory Board.

SEGMENT RESULTS

-0-
*T
Total Operating Income
 (Revenue)                      Growth y-o-y    Q1 2008       Share      Q1 2007        Share
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          75.4%       24,085       29.7%       13,734         33.5%
Retail Banking                         100.9%       37,727       46.5%       18,783         45.8%
Wealth Management                       98.8%        1,641        2.0%          825         2.01%
Ukraine                                   NMF        6,503        8.0%         n.a.           n.a
Galt & Taggart Securities               14.2%        1,617        2.0%        1,417          3.5%
Asset Management                      3806.8%       12,402       15.3%          317          0.8%
Insurance                              -17.7%        1,801        2.2%        2,187          5.3%
Corporate Center/Eliminations             NMF       -4,681       -5.8%        3,791          9.2%
-------------------------------------------------------------------------------------------------
Total Operating Income
 (Revenue)                              97.5%       81,094      100.0%       41,055        100.0%
-------------------------------------------------------------------------------------------------

Total Recurring Operating
 Costs
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          92.1%        6,968       15.8%        3,628         16.6%
Retail Banking                          91.2%       18,052       40.6%        9,441         43.1%
Wealth Management                      107.3%          656        1.5%          316          1.4%
Ukraine                                   NMF        7,168       16.1%         n.a.           n.a
Galt & Taggart Securities              272.4%        3,799        8.5%        1,020          4.7%
Asset Management                       191.5%        2,815        6.3%          966          4.4%
Insurance                                9.9%        1,812        4.1%        1,650          7.5%
Corporate Center/Eliminations          -34.2%        3,207        7.2%        4,876         22.3%
-------------------------------------------------------------------------------------------------
Total Recurring Operating
 Costs                                 103.1%       44,478      100.0%       21,897       100.00%
-------------------------------------------------------------------------------------------------


Net Income
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          40.5%       10,498       32.9%        7,471         54.7%
Retail Banking                          84.1%       12,936       40.5%        7,027         51.4%
Wealth Management                      196.6%          670        2.1%          226          1.7%
Ukraine                                   NMF         -697       -2.2%         n.a.           n.a
Galt & Taggart Securities                 NMF       -1,854       -5.8%          317          2.3%
Asset Management                          NMF        8,147       25.5%         -156         -1.1%
Insurance                                 NMF         -371       -1.2%          401          2.9%
Corporate Center/Eliminations             NMF        2,588        8.1%       -1,623        -11.9%
-------------------------------------------------------------------------------------------------
Net Income                             133.6%       31,918     100.00%       13,663        100.0%
-------------------------------------------------------------------------------------------------

Basic EPS Contribution          Growth y-o-y  Contribution    Share    Contribution     Share
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          21.2%         0.36       33.0%         0.30         55.6%
Retail Banking                          58.8%         0.44       40.4%         0.28         51.9%
Wealth Management                      155.8%         0.02        1.8%         0.01          1.9%
Ukraine                                   NMF        -0.02       -1.8%         n.a.           n.a
Galt & Taggart Securities                 NMF        -0.06       -5.5%         0.01          1.9%
Asset Management                          NMF         0.28       25.7%        -0.01         -1.9%
Insurance                                 NMF        -0.01       -0.9%         0.02          3.7%
Corporate Center/Eliminations             NMF         0.09        8.3%        -0.06        -11.1%
-------------------------------------------------------------------------------------------------
Total                                  101.5%         1.09      100.0%         0.54        100.0%
-------------------------------------------------------------------------------------------------
*T

SEGMENT RESULTS CONT'D

-0-
*T
Total Assets                     Growth y-o-y    Q1 2008      Share      Q1 2007      Share
----------------------------------------------------------------------------------------------
Corporate & Investment Banking          106.5%    1,431,303      45.5%      693,108      42.4%
Retail Banking                          153.2%    1,313,114      41.7%      518,651      31.8%
Wealth Management                        34.0%       61,319       1.9%       45,765       2.8%
Ukraine                                    NMF      360,022      11.4%         n.a.        NMF
Galt & Taggart Securities               144.5%       82,549       2.6%       33,759       2.1%
Asset Management                        144.1%       94,303       3.0%       38,629       2.4%
Insurance                                39.7%       64,901       2.1%       46,454       2.8%
Corporate Center/Eliminations              NMF     -259,714      -8.3%      257,159      15.7%
----------------------------------------------------------------------------------------------
Total Assets                             92.7%    3,147,797     100.0%    1,633,525     100.0%
----------------------------------------------------------------------------------------------

Loans to Clients, Gross
----------------------------------------------------------------------------------------------
Corporate & Investment Banking           82.2%      821,373      44.3%      450,866      54.0%
Retail Banking                          124.4%      754,649      40.7%      336,253      40.3%
Wealth Management                        17.2%       34,867       1.9%       29,757       3.6%
Ukraine                                    NMF      254,923      13.7%         n.a.        NMF
Galt & Taggart Securities                  NMF            -        NMF            -        NMF
Asset Management                           NMF            -        NMF            -        NMF
Insurance                                  NMF            -        NMF            -        NMF
Corporate Center/Eliminations              NMF      -10,133      -0.5%       18,464       2.2%
----------------------------------------------------------------------------------------------
Total Loans to Clients                  122.1%    1,855,678     100.0%      835,339     100.0%
----------------------------------------------------------------------------------------------

Total Liabilities
----------------------------------------------------------------------------------------------
Corporate & Investment Banking           78.6%    1,078,595      44.9%      603,994      48.4%
Retail Banking                           66.8%      751,719      31.3%      450,539      36.1%
Wealth Management                        28.2%       94,261       3.9%       73,552       5.9%
Ukraine                                    NMF      291,663      12.1%         n.a.        NMF
Galt & Taggart Securities               105.2%       27,003       1.1%       13,161       1.1%
Asset Management                         87.0%       32,651       1.4%       17,456       1.4%
Insurance                                14.3%       47,695       2.0%       41,744       3.3%
Corporate Center/Eliminations            62.1%       77,474       3.2%       47,787       3.8%
----------------------------------------------------------------------------------------------
Total Liabilities                        92.4%    2,401,061     100.0%    1,248,233     100.0%
----------------------------------------------------------------------------------------------

Client Deposits
----------------------------------------------------------------------------------------------
Corporate Banking                       109.5%      652,712      49.2%      311,603      51.7%
Retail Banking                           56.5%      363,584      27.4%      232,392      38.6%
Wealth Management                        40.8%       76,460       5.8%       54,295       9.0%
Ukraine                                    NMF      215,991      16.3%         n.a.        NMF
Galt & Taggart Securities               345.9%       17,428       1.3%        3,909       0.6%
Asset Management                           NMF            -       0.0%            -       0.0%
Insurance                                  NMF            -       0.0%            -       0.0%
Corporate Center/Eliminations              NMF            -       0.0%            -       0.0%
----------------------------------------------------------------------------------------------
Total Client Deposits                   120.2%    1,326,175     100.0%      602,199     100.0%
----------------------------------------------------------------------------------------------

Book Value Per Share             Growth y-o-y  Contribution   Share    Contribution   Share
----------------------------------------------------------------------------------------------
Corporate & Investment Banking          238.1%        11.29      47.2%         3.53      23.1%
Retail Banking                          543.1%        17.97      75.2%         2.70      17.7%
Wealth Management                          NMF        -1.05      -4.4%         -1.1      -7.2%
Ukraine                                    NMF         2.19       9.2%         n.a.    NMF
Galt & Taggart Securities               117.9%         1.78       7.4%         0.82       5.4%
Asset Management                        135.3%         1.97       8.2%         0.84       5.5%
Insurance                               195.2%         0.55       2.3%         0.19       1.2%
Corporate Center/Eliminations              NMF       -10.79     -45.1%         8.29      54.3%
----------------------------------------------------------------------------------------------
Book Value Per Share                     56.6%        23.90     100.0%        15.26     100.0%
----------------------------------------------------------------------------------------------
*T

INCOME STATEMENT DATA

-0-
*T
Period Ended                                       Q1 2008                     Q1 2007            Growth(3)
Consolidated, IFRS Based                      US$(1)         GEL       US$(2)         GEL           Y-O-Y
000s, unless otherwise noted                     (Unaudited)                 (Unaudited)
   Interest Income                               62,724      92,580         25,326       43,054        115.0%
   Interest Expense                              29,007      42,815         10,005       17,008        151.7%
Net Interest Income                              33,716      49,765         15,321       26,046         91.1%
   Fee & Commission Income                        7,975      11,771          3,776        6,419         83.4%
   Fee & Commission Expense                       1,080       1,594            290          493        223.6%
Net Fee & Commission Income                       6,895      10,177          3,486        5,926         71.7%
   Income From Documentary Operations             1,319       1,947            689        1,171         66.2%
   Expense On Documentary Operations                339         500            294          500          0.0%
Net Income From Documentary Operations              980       1,447            395          671        115.7%
Net Foreign Currency Related Income               8,961      13,226          2,515        4,276        209.3%
   Net Insurance Income                           1,109       1,638          1,229        2,089        -21.6%
   Brokerage Income                                 864       1,275            594        1,010         26.2%
   Asset Management Income                          438         646              -            -        NMF(4)
   Realized Net Investment Gains (Losses)          (253)       (373)            42           71        NMF(4)
   Other                                          2,232       3,294            569          967        240.6%
Net Other Non-Interest Income                     4,390       6,480          2,434        4,137         56.6%
Net Non-Interest Income                          21,226      31,329          8,829       15,010        108.7%
Total Operating Income (Revenue)                 54,942      81,094         24,150       41,055         97.5%
   Personnel Costs                               17,432      25,730          7,586       12,897         99.5%
   Selling, General & Administrative
    Costs                                         7,659      11,304          2,594        4,409        156.4%
   Procurement & Operations Support
    Expenses                                      2,103       3,104          1,276        2,170         43.0%
   Depreciation & Amortization                    2,730       4,029          1,156        1,965        105.1%
   Other Operating Expenses                         211         312            269          457        -31.8%
Total Recurring Operating Costs                  30,134      44,478         12,881       21,897        103.1%
Normalized Net Operating Income                  24,808      36,616         11,269       19,158         91.1%
Net Non-Recurring Income (Costs)                  5,737       8,468            (22)         (37)       NMF(4)
Profit Before Provisions                         30,545      45,085         11,247       19,121        135.8%
Net Provision Expense                             5,048       7,451          1,186        2,017        269.5%
Pre-Tax Income                                   25,497      37,634         10,061       17,104        120.0%
   Income Tax Expenses                            3,873       5,716          2,024        3,441         66.1%
Net Income                                       21,624      31,918          8,037       13,663        133.6%


Weighted Average Number of Shares
 Outstanding (000s)                                          29,237                      25,217         15.9%
Fully Diluted Number of Shares Period End
 (000s)                                                      31,244                      27,230         14.7%
EPS (Basic)                                        0.74        1.09           0.32         0.54        101.4%
EPS (Fully Diluted)                                0.69        1.02           0.30         0.50        103.6%
*T

(1) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4760 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 March 2008

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7000 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 March 2007

(3)Growth calculations based on GEL values

(4) Not meaningful

BALANCE SHEET DATA

-0-
*T
                                    31-Mar-08       Growth(2)       31-Dec-07       Growth(2)         31-Mar-07
Consolidated, IFRS Based        US$(1)      GEL        YTD      US$(3)      GEL       Y-O-Y      US$(4)        GEL
000s, unless otherwise noted       (Unaudited)                      (Audited)                        (Unaudited)

Cash & Cash Equivalents          146,001    215,497     -41.8%   232,642    370,273     164.8%     47,871      81,381
Loans & Advances To Credit
 Institutions                    157,305    232,182      22.2%   119,413    190,057     -16.5%    163,647     278,199
   Mandatory Reserve With
    NBG/NBU                       59,344     87,591     -39.4%    90,872    144,631      46.9%     35,067      59,614
   Other Accounts With NBG/NBU    34,463     50,868      43.3%    22,303     35,497     278.1%      7,914      13,454
   Balances With & Loans To
    Other Banks                   63,498     93,723     844.0%     6,238      9,929     -54.3%    120,666     205,132
Available-For-Sale Securities     34,830     51,409       5.5%    30,616     48,729    9727.3%        308         523
Treasuries & Equivalents          18,726     27,639     -65.3%    50,111     79,757     -41.0%     27,552      46,838
Other Fixed Income Instruments   190,534    281,229     149.5%    70,814    112,708      43.7%    115,156     195,766
   Gross Loans To Clients      1,257,235  1,855,678       5.9% 1,100,842  1,752,100     122.1%    491,376     835,339
   Less: Reserve For Loan
    Losses                       -26,818    -39,584      33.1%   -18,689    -29,745      85.8%    -12,533     -21,307
Net Loans To Clients           1,230,416  1,816,094       5.4% 1,082,153  1,722,355     123.1%    478,843     814,033
Investments In Other Business
 Entities, Net                    45,623     67,339      67.2%    25,303     40,273     202.0%     13,116      22,297
Property & Equipment Owned,
 Net                             167,416    247,107      20.7%   128,585    204,656     144.1%     59,547     101,230
Intangible Assets Owned, Net       4,220      6,229      65.1%     2,370      3,772     109.7%      1,747       2,970
Goodwill                          74,679    110,227      -1.8%    70,505    112,216     163.9%     24,573      41,773
Tax Assets - Current &
 Deferred                          2,371      3,499     124.7%       978      1,557    1812.8%        108         183
Prepayments & Other Assets        60,533     89,346      32.8%    42,258     67,258      84.9%     28,431      48,333
Total Assets                   2,132,654  3,147,797       6.6% 1,855,750  2,953,611      92.7%    960,898   1,633,526
                                                                                                   11,591      19,705
Client Deposits                  898,493  1,326,175      -2.2%   851,644  1,355,476     120.2%    354,235     602,199
Deposits & Loans From Banks       29,541     43,602     -33.7%    41,349     65,811      22.4%     20,959      35,631
Borrowed Funds                   538,668    795,074      -4.9%   525,248    835,984      50.7%    310,265     527,451
Issued Fixed Income Securities     9,173     13,540     171.2%     3,137      4,993     -31.3%        671       1,141
Insurance Related Liabilities     29,221     43,130       4.4%    25,968     41,330    3681.5%     11,591      19,705
Tax Liabilities - Current &
 Deferred                         18,357     27,095     -27.2%    23,378     37,209     149.1%      6,399      10,878
Accruals & Other Liabilities     103,282    152,445     178.1%    34,441     54,817     197.6%     30,135      51,230
Total Liabilities              1,626,736  2,401,062       0.2% 1,505,165  2,395,620      92.4%    734,255   1,248,234

Ordinary Shares                   21,168     31,244      15.1%    17,061     27,155      23.8%     14,850      25,245
Share Premium                    302,975    447,191      41.8%   198,175    315,415      73.0%    152,081     258,538
Treasury Shares                   -1,250     -1,846       6.3%    -1,091     -1,737      59.3%       (681)     (1,158)
Retained Earnings                 97,705    144,213     125.8%    40,122     63,858     136.5%     35,869      60,977
Revaluation & Other Reserves      42,537     62,784      -6.8%    42,318     67,354     175.5%     13,407      22,791
Net Income For The Period         21,624     31,918     -57.8%    47,526     75,642     133.6%      8,037      13,663
Shareholders' Equity Excluding
 Minority Interest               484,759    715,505      30.6%   344,111    547,687      88.3%    223,562     380,055
Minority Interest                 21,159     31,230     203.1%     6,474     10,304     496.3%      3,081       5,237
Total Shareholders' Equity       505,918    746,735      33.8%   350,585    557,991      93.8%    226,642     385,292
Total Liabilities &
 Shareholders' Equity          2,132,654  3,147,797       6.6% 1,855,750  2,953,611      92.7%    960,898   1,633,526

Shares Outstanding                       31,244,092      15.1%           27,154,918      23.8%             25,244,609
Book Value Per Share               16.19      23.90      15.9%     12.95      20.62      55.3%       9.05       15.39

(1) Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.4760 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 March 2008

(2) Growth calculations based on GEL values

(3) Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.5916 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 2007

(4) Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7000 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 March 2007
*T

KEY RATIOS

-0-
*T
                                                                                  Q1 2008    Q1 2007
Profitability Ratios
ROAA( 1), Annualised                                                                 4.2%       3.8%
ROA                                                                                  4.1%       3.3%
ROAE(2), Annualised                                                                 19.6%      14.3%
ROE                                                                                 17.1%      14.2%
Interest Income To Average Interest Earning Assets (3), Annualised                  16.6%      15.1%
Cost Of Funds (4), Annualised                                                        7.7%       7.0%
Net Spread (5)                                                                       8.9%       8.1%
Net Interest Margin (6), Annualised                                                  8.9%       9.1%
Net Interest Margin Normalized (35), Annualised                                      8.9%       9.1%
Loan Yield (7), Annualised                                                          18.9%      21.2%
Interest Expense To Interest Income                                                 46.2%      39.5%
Net Non-Interest Income To Average Total Assets, Annualised                          4.1%       4.2%
Net Non-Interest Income To Revenue (8)                                              38.6%      36.6%
Net Fee And Commission Income To Average Interest Earning Assets (9),
 Annualised                                                                          1.8%       2.1%
Net Fee And Commission Income To Revenue                                            12.5%      14.4%
Operating Leverage (10)                                                             33.4%      38.6%
Total Operating Income (Revenue) To Total Assets, Annualised                        10.3%      10.0%
Recurring Earning Power (11), Annualised                                             4.8%       6.9%
Net Income To Revenue                                                               39.4%      33.3%

Efficiency Ratios
Operating Cost To Average Total Assets (12), Annualised                              5.8%       6.1%
Cost To Average Total Assets (13), Annualised                                        4.7%       6.2%
Cost / Income (14)                                                                  44.4%      53.4%
Cost / Income, Normalized (37)                                                      54.8%      53.3%
Cost / Income, Bank of Georgia, Standalone (15)                                     45.1%      50.1%
Cash Cost / Income                                                                  39.4%      48.6%
Total Employee Compensation Expense To Revenue (16)                                 31.7%      31.4%
Total Employee Compensation Expense To Cost                                         71.5%      58.8%
Total Employee Compensation Expense To Average Total Assets, Annualised              3.4%       3.6%

Liquidity Ratios
Net Loans To Total Assets (17)                                                      57.7%      49.7%
Average Net Loans To Average Total Assets                                           58.0%      52.9%
Interest Earning Assets To Total Assets                                             74.9%      81.6%
Average Interest Earning Assets To Average Total Assets                             73.1%      80.2%
Liquid Assets To Total Assets (18)                                                  22.9%      33.2%
Net Loans To Client Deposits                                                       136.9%     135.2%
Average Net Loans To Average Client Deposits                                       132.0%     129.8%
Net Loans To Total Deposits (19)                                                   132.6%     127.7%
Net Loans To Total Liabilities                                                      75.6%      65.2%
Total Deposits To Total Liabilities                                                 57.0%      48.2%
Client Deposits To Total Deposits                                                   96.8%      94.4%
Client Deposits To Total Liabilities                                                55.2%      48.2%
Current Account Balances To Client Deposits                                         43.8%      61.0%
Demand Deposits To Client Deposits                                                   7.0%       5.5%
Time Deposits To Client Deposits                                                    49.3%      33.5%
Total Deposits To Total Assets                                                      43.5%      39.0%
Client Deposits To Total Assets                                                     42.1%      36.8%
Client Deposits To Total Equity (Times) (20)                                        1.78       1.55
Due From Banks / Due To Banks (21)                                                 532.5%     780.8%
Total Equity To Net Loans                                                           41.1%      47.7%
Leverage (Times) (22)                                                                3.2        3.2
*T

KEY RATIOS CONT'D

-0-
*T
                                                                                   Q1 2008      Q1 2007
Asset Quality
NPLs (in GEL) 23                                                                   18,992       21,059
NPLs To Gross Loans To Clients (24)                                                   1.0%         2.5%
Cost of Risk 25, Annualized                                                           1.7%         1.0%
Cost of Risk Normalized (36), Annualized                                              1.7%         1.0%
Reserve For Loan Losses To Gross Loans To Clients (26)                                2.1%         2.6%
NPL Coverage Ratio (27)                                                             208.4%       101.2%
Equity To Average Net Loans To Clients                                               42.2%        51.5%

Capital Adequacy:
Equity To Total Assets                                                               23.7%        23.7%
BIS Tier I Capital Adequacy Ratio, consolidated (28)                                 25.2%        34.1%
BIS Total Capital Adequacy Ratio, consolidated (29)                                  25.8%        34.8%
NBG Tier I Capital Adequacy Ratio (30)                                               18.3%        19.2%
NBG Total Capital Adequacy Ratio (31)                                                16.3%        22.5%

Per Share Values:
Basic EPS (GEL) (32)                                                                 1.09         0.54
Basic EPS (US$)                                                                      0.74         0.32
Fully Diluted EPS (GEL) (33)                                                         1.02         0.50
Fully Diluted EPS (US$)                                                              0.69         0.30
Book Value Per Share (GEL) (34)                                                     23.90        15.39
Book Value Per Share (US$)                                                          16.19         9.05
Ordinary Shares Outstanding - Weighted Average, Basic                          29,237,387   25,216,510
Ordinary Shares Outstanding - Period End                                       31,244,092   25,244,609
Ordinary Shares Outstanding - Fully Diluted                                    31,244,092   27,230,351

Selected Operating Data:
Full Time Employees (FTEs)                                                          4,926        2,558
FTEs, Bank of Georgia Standalone                                                    3,056        1,933
Total assets per FTE (23 )(GEL Thousands)                                             639          640
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands)                    1,030          847
Number Of Active Branches                                                             131          103
Number Of ATMs                                                                        310          146
Number Of Cards (Thousands)                                                           743          344
Number Of POS Terminals                                                             2,063          497
*T

                               NOTES TO KEY RATIOS

(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) Loan Yield equals Interest Income, less Net Provision Expense, divided by
quarterly Average Gross Loans To Clients;

(8) Revenue equals Total Operating Income;

(9) Net Fee And Commission Income includes Net Income From Documentary
Operations of the period ;

(10) Operating Leverage equals percentage change in Revenue less percentage
change in Total Costs;

(11) Recurring Earning Power equals Profit Before Provisions of the period
divided by average Total Assets of the same period;

(12) Operating Cost equals Total Recurring Operating Costs;

(13) Cost includes Total Recurring Operating Costs and Net Non-Recurring Costs
(Income);

(14) Cost/Income Ratio equals Costs of the period divided by Total Operating
Income (Revenue);

(15) Cost/ Income, Bank of Georgia, standalone, equals non-consolidated Total
Costs of the bank of the period divided by non-consolidated Revenue of the bank
of the same period;

(16) Total Employee Compensation Expense includes Personnel Costs;

(17) Net Loans equal Net Loans To Clients;

(18) Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG,
Balances With And Loans To Other Banks, Treasuries And Equivalents and Other
Fixed Income Securities as of the period end and are divided by Total Assets as
of the same date;

(19) Total Deposits include Client Deposits and Deposits And Loans from Banks;

(20) Total Equity equals Total Shareholders' Equity;

(21) Due From Banks/ Due To Banks equals Loans And Advances To Credit
Institutions divided by Deposits And Loans From Banks;

(22) Leverage (Times) equals Total Liabilities as of the period end divided by
Total Equity as of the same date;

(23) NPLs (in GEL) equals total gross non-performing loans as of the period end;
non-performing loans are loans that have debts in arrears for more than 90
calendar days;

(24) Gross Loans equals Gross Loans To Clients;

25 Cost Of Risk equals Net Provision For Loan Losses of the period, plus
provisions for (less recovery of) other assets, divided by quarterly average
Gross Loans To Clients over the same period;

(26) 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;

(27) NPL Coverage Ratio equals Reserve For Loan losses as of the period end
divided by NPLs as of the same date;

(28) BIS Tier I Capital Adequacy Ratio equals 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 Accord I;

(29) 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 Accord I;

(30) 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;

(31) 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;

(32) Basic EPS equals Net Income of the period divided by the weighted average
number of outstanding ordinary shares over the same period;

(33) 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;

(34) Book Value Per Share equals Equity as of the period end, plus Treasury
Shares, divided by the total number of Outstanding Ordinary shares as of the
same date.

(35) Net Interest Margin Normalized equals Net Interest Income of the period,
less interest income generated by non-performing loans through the date of their
write-off, divided by quarterly Average Interest Earning Assets of the same
period;

(36) Cost Of Risk Normalized 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;

(37) Cost / Income Normalized equals Recurring Operating Costs divided by Total
Operating Income (Revenue) for the same period

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 33.7% market share by total assets (all data according to the NBG
as of March 31, 2008). The major component of the Galt & Taggart Index, the bank
has 131 branches and over 770,000 retail and more than 120,000 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:

-0-
*T
 Standard & Poor's        'B+/B'                                   Stable
 FitchRatings             'B+/B'                                   Stable
 Moody's                  'B3/NP' (FC) & 'Ba1/NP' (LC)
*T

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

-0-
*T
Nicholas Enukidze                              Irakli Gilauri                              Macca Ekizashvili
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 Q1 2008 and Q1 2007 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.banking market share by Net Income in Georgia on a
standalone basis in Q1 2008, which compares to 26.7% in Q1 2007.

Total Shareholders' Equity grew by GEL 361.4 million in Q1 2008 (GEL 188.7
million year-to-date) and amounted to GEL 746.7 million. The year-to-date growth
was mainly attributed to Q1 2008 Net Income of GEL 31.9 million, as well as a
capital increase through the placement of four million new ordinary shares in
the form of GDRs on 13 February 2008, which raised gross proceeds of US$100
million.

Despite the capital increase in February 2007, Bank of Georgia's Consolidated
ROAE increased to 19.6% in Q1 2008 as compared to consolidated ROAE of 14.4% in
Q1 2007 and 17.7% for the full year 2007. Consolidated ROAA grew to 4.2% in Q1
2008 from 3.8% in Q1 2007 and 3.8% for the full year 2007. Equity book value per
share stood at GEL 23.90 (US$16.19) as at 31 March 2008, up 55.3% y-o-y (up
15.9% year-to-date).

The Extraordinary Meeting of Shareholders (the 'EGM') held on 22 February 2007,
acknowledged the resignation of Lado Gurgenidze as the Chairman of the
Supervisory Board of Bank of Georgia and elected Mr. Kaha Kiknavelidze as a new
member of the Supervisory Board. Subsequently, Mr. Nicholas Enukidze, Vice
Chairman of the Supervisory Board since November 2006 and Acting Chairman since
November 2007, was elected as Chairman of the Supervisory Board by the
Supervisory Board.

(1) Starting in Q1 2008 Bonuses and Share Based Compensation Expense is included
in the calculation of the Recurring Operating Costs. For the purposes of this
press release for all previous reporting periods Recurring Operating Costs are
recalculated using the new methodology and NNOI is adjusted to the changes in
the calculation methodology of Recurring Operating Costs.

(2) 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 (non-IFRS, based on National Bank of Georgia requirements)
filed by Georgian banks. Deposit market share is calculated based on the amount
of total deposits, including client and interbank deposits

Strategic Business Unit and Business Unit Overview

Corporate Banking (CB)(3)

Discussion Of Results

In Q1 2008 CB continued to successfully leverage Bank of Georgia's position as
the leading financial institution in Georgia, increasing its operating
efficiency and profitability. Allocated Revenues grew 75.4% y-o-y to GEL 24.1
million (up 7.2% q-o-q). Operating leverage of CB has improved, as the growth
rate of allocated Recurring Costs (up 92.1% y-o-y and down by 13.6% q-o-q)
lagged the growth rate of the allocated Revenues. NNOI grew 69.4% y-o-y to GEL
17.1 million (up 18.9% q-o-q), contributing 46.7% to the consolidated NNOI. Net
Income grew 40.5% y-o-y to GEL 10.5 million (up 56.6% q-o-q), contributing 32.9%
to the consolidated Net Income. Gross Loans grew 82.2% y-o-y to GEL 821.4
million (up 1.8% year-to-date). Allocated Client Deposits stood at GEL 652.7
million up 109.5% increase y-o-y and down by 2.5% year-to-date, which was caused
by the notably increased competition for deposits in Q1 2008 driven by wholesale
funding constraints and higher interest rate environment resulting from
significant increase in benchmark interest rate. Allocated Total CB Assets
amounted to GEL 1,431 million, up 106.5% y-o-y (up 0.7% year-to-date), while
allocated Total CB Liabilities stood at GEL 1,079 million, up 78.6% y-o-y (down
by 2.1% year-to-date).

Highlights

    --  Major new corporate client acquisitions include Alon Group Israel, an
        investment company, JSC Caucasus Energy and Infrastructure, a fund
        investing in energy and infrastructure assets in Georgia, and Georgian
        Trading Company, a high end (Bali, Trussardi etc.) apparel retailer in
        Tbilisi.

    --  Increased the number of corporate clients using the bank's payroll
        services from approximately 700 at the end of 2006 to over 850 by 31
        March 2007. By the end of Q1 2008, the number of individual clients
        serviced through the corporate payroll programs administered by the bank
        increased from approximately 150,000 at the beginning of the year to
        153,984.

    --  Approximately 4,000 legal entities opened accounts at the bank in Q1
        2008, bringing the total to approximately 68,000.

(3) Previously Corporate Banking business unit was referred to as Corporate and
Investment Banking ('CIB')

Retail Banking (RB)

Discussion Of Results

In Q1 2008 we continued to witness vibrant demand for loans from our retail
customers. Retail banking business in Georgia continued its impressive growth
making significant contribution to the bank's loan portfolio growth and net
interest margin. Allocated Revenues grew 100.9% y-o-y to GEL 37.7 million (up
35.1% q-o-q). Operating leverage of RB has improved, as the growth rate of
allocated Recurring Costs (up 91.2% y-o-y and 93.2% q-o-q), driven primarily by
the branch and headcount expansion, lagged behind the growth rate of the
allocated Revenues. NNOI grew 110.6% y-o-y to GEL 19.7 million (up 5.9% q-o-q),
contributing 53.7% to the consolidated NNOI. Net Income grew 84.1% y-o-y to GEL
12.9 million (up 113.5% q-o-q), contributing 40.5% to the bank's consolidated
Net Income. Gross Loans grew 124.4% y-o-y to GEL 754.7 million (up 17.2%
year-to-date), driven by the increased lending activity due to high demand for
mortgages, car loans, consumer loans, credit cards and other retail banking
products. Allocated Client Deposits grew 56.5% y-o-y to GEL 363.6 million (up
6.9% year-to-date), reflecting increased competition for deposits. Allocated
Total RB Assets amounted to GEL 1,313 million, up 153.2% y-o-y (up 16.7%
year-to-date), while allocated Total RB Liabilities reached GEL 751.7 million,
up 66.8% y-o-y (up 5.9% year-to-date).

Highlights

    --  Increased the number of retail current accounts from approximately
        705,000 at the beginning of the year to over 770,000 as at 31 March
        2008.

    --  Opened 14 new branches (service centers) in Georgia, bringing the total
        number of branches to 131 by 31 March 2008.

    --  Remodeled four pilot branches based on new brand concept and design
        developed by Allen International, a UK based integrated strategic design
        consultancy. The pilot branches included two pioneering mortgage centers
        in Georgia.

    --  Stepped up the issuance of credit cards, as the number of credit cards
        issued reached approximately 38,500 during Q1 2008 compared to 5,861
        credit cards issued in Q1 2007. As of 31 March 2008, the number of
        credit cards outstanding amounted to 147,075, up from 108,616 at the
        beginning of the year. Increased the issuance of debit cards, with over
        70,000 debit cards issued in Q1 2008, compared to approximately 63,000
        debit cards issued during Q1 2007. The number of debit cards outstanding
        increased from approximately 538,000 at the beginning of the year to
        approximately 595,468 by 31 March 2008.

    --  Continued to make gains in merchant acquiring as the installed POS
        terminal footprint grew to 2,063 compared to 1,594 at year end 2007.

    --  Total number of cards serviced by Georgian Card grew from 876,263 at
        year end 2007 to 977,572 by 31 March 2008, while the number of
        transaction authorisations processed by Georgian Card in Q1 2008 grew
        146.3% y-o-y to approximately 7.2 million. The volume of transactions
        processed grew to GEL 496.7 million, up 189.8% y-o-y.

    --  Continued investing in the electronic banking channels, as the number of
        ATMs grew to 310 by 31 March 2008 (up from 250 at the end of 2007),
        number of mobile banking users reached 44,002 up 10.8% from the
        beginning of the year and number of registered Internet banking users
        grew 44.2% to over 165,000.

    --  Increased car loan originations for Q1 2008 to GEL 17.1 million (up
        419.7% y-o-y and 46.2% q-o-q). Car loans outstanding by 31 March 2008
        stood at GEL 46.5 million, up 305.0% y-o-y (25.4% year-to-date).
        Increased mortgage loan originations to GEL 77.5 million in Q1 2008 (up
        161.5% y-o-y and 18.9% q-o-q). Mortgage loans outstanding on 31 March
        2008 stood at GEL 222.4 million, up 175.2% y-o-y (up 23.1%
        year-to-date).

    --  Launched a new mortgage strategy in Georgia designed to provide
        integrated real estate development, real estate brokerage and mortgage
        lending service to retail clients. Under the new strategy the bank has
        entered into a joint venture with JSC Iberia Real Estate, a leading
        Georgian real estate development company, aimed at developing over
        55,000 sq/m of economy class residential housing over the next three
        years. Presto, a real estate brokerage established by Bank of Georgia
        which is leveraging the bank's extensive branch network to build its
        distribution capabilities, will serve as the exclusive sales agent and
        Bank of Georgia will provide customized mortgage products for the
        properties developed by the joint venture.

    --  Jointly with Magti, Georgia's leading Mobile Operator, launched a
        co-branded credit card (MagtiCard) distributed to Magti's top 60,000
        retail customers, which will serve as the platform for the introduction
        of Georgia's first credit based mobile service for retail customers. A
        50% discount on roaming services and 25% discount on international calls
        offered by Magti to MagtiCard holders makes this card particularly
        attractive for Magti's business-oriented customers.

    --  Won a tender for the exclusive right for management of municipal bus
        payment system, which will be seamlessly integrated with Tbilisi metro
        (subway) payment system already managed by the bank since September
        2006. As the result, Bank of Georgia will have access to an estimated
        900,000 residents of Tbilisi who use municipal transport regularly. Bank
        of Georgia's contactless debit cards will be introduced as the most
        convenient method of payment of transport fare. As a pilot project, a
        student contact less co-branded debit card (BaliCard), which can be used
        to pay metro fare, was successfully introduced in Q4 2007.

Wealth Management (WM)

Discussion Of Results

In Q1 2008 Bank of Georgia's WM unit focused on streamlining its operations in
Georgia, including the appointment of Mr. Givi Giorgadze, former head of
corporate business at Aldagi BCI, as the new Head of WM in Georgia, and
developing an offshore private banking offering for the markets with large
Georgian communities, which could provide an important source of client deposits
for the bank. Mr. Zurab Maisuradze, former Head of WM in Georgia will spearhead
the development of the offshore private banking. Allocated Revenues for WM was
GEL 1.6 million in Q1 2008 increasing 98.8% y-o-y (down by 0.7% q-o-q).
Allocated Recurring Costs of GEL 0.7 million grew 107.3% y-o-y (down 17.8%
q-o-q). Net Income grew 196.6% y-o-y (up 17.8% q-o-q) to GEL 0.7 million,
contributing 2.1% to the consolidated Net Income. Gross Loans which stood at GEL
34.9 million grew 17.2% y-o-y, but decreased 21.1% year-to-date due to the
repayment of several sizeable loans in Q1 2008. Allocated Client Deposits
increased by 40.8% y-o-y (up 10.1% year-to-date) to GEL 76.5 million. Allocated
Total WM Assets amounted to GEL 61.3 million, up 34.0% y-o-y (down 27.4%
year-to-date), while allocated Total WM Liabilities reached GEL 94.3 million, up
28.2% y-o-y (down 0.6% year-to-date).

Ukraine

Discussion Of Results

In Q1 2008 UBDP underwent a significant change in terms of its transparency,
organizational structure and risk processes, which resulted in the departure of
several corporate clients, a number of high-profile additions to the management
team and the rearrangement of UBDP's compensation structure. As a result, in Q1
2008, UBDP's Revenue decreased by 6.9% q-o-q to GEL 6.5 million and Net Loss for
the period stood at GEL 0.7 million, as compared to Net Income of GEL 1.7
million for Q4 2007. Gross Loans reached GEL 254.9 million, up 12.6%
year-to-date and Client Deposits amounted to GEL 216.0 million, down 19.3%
year-to-date. UBDP's Total Assets increased to GEL 360.0 million (up 2.8%
year-to-date), while Total Liabilities reached GEL 291.7 million (up 2.9%
year-to-date).

Galt & Taggart Securities

Discussion Of Results

Galt & Taggart Securities, Bank of Georgia's wholly-owned investment banking
subsidiary, was negatively affected by challenging capital markets and resulting
slowdown in trading activity and losses on proprietary trading book in Q1 2008.
Revenue of GEL 1.6 million in Q1 2008 represents a 14.2% increase y-o-y and a
26.6% decrease q-o-q. Recurring Operating Costs amounted to GEL 3.8 million, as
compared to the Recurring Operating Costs of GEL 1.0 million in Q1 2007. The
growth of Recurring Operating Costs reflects the build-out of Galt & Taggart
Securities operations in Ukraine and Georgia over the last year. Galt & Taggart
Securities recorded a net loss of GEL 1.9 million in Q1 2008.

In Q1 2008 Galt & Taggart Securities continued to hold the leading position in
equities trading in Georgia, with an approximately 86.3% market share in terms
of trading volume and ranked #10 among broker-dealers with an approximately 2.7%
market share by equities trading volume in Ukraine.

Asset Management

Galt & Taggart Asset Management (GTAM), the bank's asset management arm,
continued its strong development in Q1 2008. Assets Under Management of GTAM
stood at approximately US$125 million as of 31 March 2008, an increase of 65.2%
since the year end 2007 and 86.8% increase since its establishment in October
2007. Revenues grew to GEL 12.4 million in Q1 2008, up 3806.8% y-o-y (down 39.9%
q-o-q). Recurring Operating Costs increased 191.5% y-o-y (94.0% q-o-q) to GEL
2.8 million. Net Income stood at GEL 8.2 million in Q1 2008 and contributed
25.5% to the consolidated Net Income. Assets grew to GEL 94.3 million as at 31
March 2008, up 144.1% y-o-y (up 20.0% year-to-date). Liabilities reached GEL
32.7 million by 31 March 2008, up 87.0% y-o-y (down 2.7% year-to-date). Galt &
Taggart Capital and SB Real Estate, funds managed by GTAM and majority owned by
the bank, are currently fully consolidated in Bank of Georgia's financial
statements and are reported under Asset Management business unit.

Insurance

Discussion Of Results

Aldagi BCI, the bank's wholly-owned Georgian insurance subsidiary, showed a
strong growth in Gross Premiums Written combined with a marginal loss for the
quarter, which was mainly due to Aldagi BCI's participation in a the state
health care program for socially vulnerable citizens and school teachers
launched in Q4 2007, which brought 84,000 new clients to Aldagi BCI. This
program will end in September 2008. Unlike other major Georgian insurance
companies, Aldagi BCI chose not to participate in a new similar program aimed at
550,000 socially vulnerable citizens announced in Q1 2008. Gross Premiums
Written of Aldagi BCI, the bank's wholly-owned insurance subsidiary, increased
by 56.5% y-o-y to GEL 13.6 million (up 18.9% q-o-q). Net Premiums Earned grew
147.2% y-o-y to GEL 8.0 million (up 39.6% q-o-q). Revenues decreased by 17.7%
y-o-y to GEL 1.8 million (up 1120.5% q-o-q). Net Loss equaled GEL 0.4 million in
Q1 2008. Total Insurance Assets amounted to GEL 64.9 million, up 39.7% y-o-y (up
2.1% year-to-date) while Total Insurance Liabilities reached GEL 47.7 million,
up 14.3% y-o-y (up 5.2% year-to-date) as at 31 March 2008.

Highlights

    --  Major new corporate client acquisitions include EnergoPro, a leading
        energy distribution company in Georgia and Ashrom, an Israel-based main
        subcontractor of the Millennium Challenge Georgia's infrastructure
        projects in Georgia.

    --  Opened the third branch of Aldagi BCI's My Family Clinic in Tbilisi.

Comments

'We are very pleased to report strong Q1 2008 results. Our profitability remains
robust driven by our market-leading retail banking franchise and corporate
banking businesses in Georgia. Throughout Q1 2008, despite the interest rate
increase on loans, we continued to witness vibrant demand for lending products
from customers in Georgia. At the same time, competition for deposits has
increased notably driven by wholesale funding constraints and higher interest
rate environment resulting from significant increase in benchmark interest rate
of the National Bank of Georgia. In this challenging market conditions, we made
it our priority to continue capturing profitable growth opportunities while
maintaining a disciplined approach to capital management and risk control.

In Q1 2008 we continued our work on the integration and repositioning for growth
of our Ukrainian business and expect to see improvement in the operating results
later this year. Our investment banking business, which was negatively affected
by turbulent capital markets, concentrated on improving its operations and
closer alignment with the banking businesses in Georgia and Ukraine. At the same
time our investments made over last several years in funds managed by GTAM
showed impressive performance making important contribution to our bottom line',
commented Nicholas Enukidze, Chairman of the Supervisory Board.

SEGMENT RESULTS

-0-
*T
Total Operating Income
 (Revenue)                      Growth y-o-y    Q1 2008       Share      Q1 2007        Share
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          75.4%       24,085       29.7%       13,734         33.5%
Retail Banking                         100.9%       37,727       46.5%       18,783         45.8%
Wealth Management                       98.8%        1,641        2.0%          825         2.01%
Ukraine                                   NMF        6,503        8.0%         n.a.           n.a
Galt & Taggart Securities               14.2%        1,617        2.0%        1,417          3.5%
Asset Management                      3806.8%       12,402       15.3%          317          0.8%
Insurance                              -17.7%        1,801        2.2%        2,187          5.3%
Corporate Center/Eliminations             NMF       -4,681       -5.8%        3,791          9.2%
-------------------------------------------------------------------------------------------------
Total Operating Income
 (Revenue)                              97.5%       81,094      100.0%       41,055        100.0%
-------------------------------------------------------------------------------------------------

Total Recurring Operating
 Costs
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          92.1%        6,968       15.8%        3,628         16.6%
Retail Banking                          91.2%       18,052       40.6%        9,441         43.1%
Wealth Management                      107.3%          656        1.5%          316          1.4%
Ukraine                                   NMF        7,168       16.1%         n.a.           n.a
Galt & Taggart Securities              272.4%        3,799        8.5%        1,020          4.7%
Asset Management                       191.5%        2,815        6.3%          966          4.4%
Insurance                                9.9%        1,812        4.1%        1,650          7.5%
Corporate Center/Eliminations          -34.2%        3,207        7.2%        4,876         22.3%
-------------------------------------------------------------------------------------------------
Total Recurring Operating
 Costs                                 103.1%       44,478      100.0%       21,897       100.00%
-------------------------------------------------------------------------------------------------


Net Income
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          40.5%       10,498       32.9%        7,471         54.7%
Retail Banking                          84.1%       12,936       40.5%        7,027         51.4%
Wealth Management                      196.6%          670        2.1%          226          1.7%
Ukraine                                   NMF         -697       -2.2%         n.a.           n.a
Galt & Taggart Securities                 NMF       -1,854       -5.8%          317          2.3%
Asset Management                          NMF        8,147       25.5%         -156         -1.1%
Insurance                                 NMF         -371       -1.2%          401          2.9%
Corporate Center/Eliminations             NMF        2,588        8.1%       -1,623        -11.9%
-------------------------------------------------------------------------------------------------
Net Income                             133.6%       31,918     100.00%       13,663        100.0%
-------------------------------------------------------------------------------------------------

Basic EPS Contribution          Growth y-o-y  Contribution    Share    Contribution     Share
-------------------------------------------------------------------------------------------------
Corporate & Investment Banking          21.2%         0.36       33.0%         0.30         55.6%
Retail Banking                          58.8%         0.44       40.4%         0.28         51.9%
Wealth Management                      155.8%         0.02        1.8%         0.01          1.9%
Ukraine                                   NMF        -0.02       -1.8%         n.a.           n.a
Galt & Taggart Securities                 NMF        -0.06       -5.5%         0.01          1.9%
Asset Management                          NMF         0.28       25.7%        -0.01         -1.9%
Insurance                                 NMF        -0.01       -0.9%         0.02          3.7%
Corporate Center/Eliminations             NMF         0.09        8.3%        -0.06        -11.1%
-------------------------------------------------------------------------------------------------
Total                                  101.5%         1.09      100.0%         0.54        100.0%
-------------------------------------------------------------------------------------------------
*T

SEGMENT RESULTS CONT'D

-0-
*T
Total Assets                     Growth y-o-y    Q1 2008      Share      Q1 2007      Share
----------------------------------------------------------------------------------------------
Corporate & Investment Banking          106.5%    1,431,303      45.5%      693,108      42.4%
Retail Banking                          153.2%    1,313,114      41.7%      518,651      31.8%
Wealth Management                        34.0%       61,319       1.9%       45,765       2.8%
Ukraine                                    NMF      360,022      11.4%         n.a.        NMF
Galt & Taggart Securities               144.5%       82,549       2.6%       33,759       2.1%
Asset Management                        144.1%       94,303       3.0%       38,629       2.4%
Insurance                                39.7%       64,901       2.1%       46,454       2.8%
Corporate Center/Eliminations              NMF     -259,714      -8.3%      257,159      15.7%
----------------------------------------------------------------------------------------------
Total Assets                             92.7%    3,147,797     100.0%    1,633,525     100.0%
----------------------------------------------------------------------------------------------

Loans to Clients, Gross
----------------------------------------------------------------------------------------------
Corporate & Investment Banking           82.2%      821,373      44.3%      450,866      54.0%
Retail Banking                          124.4%      754,649      40.7%      336,253      40.3%
Wealth Management                        17.2%       34,867       1.9%       29,757       3.6%
Ukraine                                    NMF      254,923      13.7%         n.a.        NMF
Galt & Taggart Securities                  NMF            -        NMF            -        NMF
Asset Management                           NMF            -        NMF            -        NMF
Insurance                                  NMF            -        NMF            -        NMF
Corporate Center/Eliminations              NMF      -10,133      -0.5%       18,464       2.2%
----------------------------------------------------------------------------------------------
Total Loans to Clients                  122.1%    1,855,678     100.0%      835,339     100.0%
----------------------------------------------------------------------------------------------

Total Liabilities
----------------------------------------------------------------------------------------------
Corporate & Investment Banking           78.6%    1,078,595      44.9%      603,994      48.4%
Retail Banking                           66.8%      751,719      31.3%      450,539      36.1%
Wealth Management                        28.2%       94,261       3.9%       73,552       5.9%
Ukraine                                    NMF      291,663      12.1%         n.a.        NMF
Galt & Taggart Securities               105.2%       27,003       1.1%       13,161       1.1%
Asset Management                         87.0%       32,651       1.4%       17,456       1.4%
Insurance                                14.3%       47,695       2.0%       41,744       3.3%
Corporate Center/Eliminations            62.1%       77,474       3.2%       47,787       3.8%
----------------------------------------------------------------------------------------------
Total Liabilities                        92.4%    2,401,061     100.0%    1,248,233     100.0%
----------------------------------------------------------------------------------------------

Client Deposits
----------------------------------------------------------------------------------------------
Corporate Banking                       109.5%      652,712      49.2%      311,603      51.7%
Retail Banking                           56.5%      363,584      27.4%      232,392      38.6%
Wealth Management                        40.8%       76,460       5.8%       54,295       9.0%
Ukraine                                    NMF      215,991      16.3%         n.a.        NMF
Galt & Taggart Securities               345.9%       17,428       1.3%        3,909       0.6%
Asset Management                           NMF            -       0.0%            -       0.0%
Insurance                                  NMF            -       0.0%            -       0.0%
Corporate Center/Eliminations              NMF            -       0.0%            -       0.0%
----------------------------------------------------------------------------------------------
Total Client Deposits                   120.2%    1,326,175     100.0%      602,199     100.0%
----------------------------------------------------------------------------------------------

Book Value Per Share             Growth y-o-y  Contribution   Share    Contribution   Share
----------------------------------------------------------------------------------------------
Corporate & Investment Banking          238.1%        11.29      47.2%         3.53      23.1%
Retail Banking                          543.1%        17.97      75.2%         2.70      17.7%
Wealth Management                          NMF        -1.05      -4.4%         -1.1      -7.2%
Ukraine                                    NMF         2.19       9.2%         n.a.    NMF
Galt & Taggart Securities               117.9%         1.78       7.4%         0.82       5.4%
Asset Management                        135.3%         1.97       8.2%         0.84       5.5%
Insurance                               195.2%         0.55       2.3%         0.19       1.2%
Corporate Center/Eliminations              NMF       -10.79     -45.1%         8.29      54.3%
----------------------------------------------------------------------------------------------
Book Value Per Share                     56.6%        23.90     100.0%        15.26     100.0%
----------------------------------------------------------------------------------------------
*T

INCOME STATEMENT DATA

-0-
*T
Period Ended                                       Q1 2008                     Q1 2007            Growth(3)
Consolidated, IFRS Based                      US$(1)         GEL       US$(2)         GEL           Y-O-Y
000s, unless otherwise noted                     (Unaudited)                 (Unaudited)
   Interest Income                               62,724      92,580         25,326       43,054        115.0%
   Interest Expense                              29,007      42,815         10,005       17,008        151.7%
Net Interest Income                              33,716      49,765         15,321       26,046         91.1%
   Fee & Commission Income                        7,975      11,771          3,776        6,419         83.4%
   Fee & Commission Expense                       1,080       1,594            290          493        223.6%
Net Fee & Commission Income                       6,895      10,177          3,486        5,926         71.7%
   Income From Documentary Operations             1,319       1,947            689        1,171         66.2%
   Expense On Documentary Operations                339         500            294          500          0.0%
Net Income From Documentary Operations              980       1,447            395          671        115.7%
Net Foreign Currency Related Income               8,961      13,226          2,515        4,276        209.3%
   Net Insurance Income                           1,109       1,638          1,229        2,089        -21.6%
   Brokerage Income                                 864       1,275            594        1,010         26.2%
   Asset Management Income                          438         646              -            -        NMF(4)
   Realized Net Investment Gains (Losses)          (253)       (373)            42           71        NMF(4)
   Other                                          2,232       3,294            569          967        240.6%
Net Other Non-Interest Income                     4,390       6,480          2,434        4,137         56.6%
Net Non-Interest Income                          21,226      31,329          8,829       15,010        108.7%
Total Operating Income (Revenue)                 54,942      81,094         24,150       41,055         97.5%
   Personnel Costs                               17,432      25,730          7,586       12,897         99.5%
   Selling, General & Administrative
    Costs                                         7,659      11,304          2,594        4,409        156.4%
   Procurement & Operations Support
    Expenses                                      2,103       3,104          1,276        2,170         43.0%
   Depreciation & Amortization                    2,730       4,029          1,156        1,965        105.1%
   Other Operating Expenses                         211         312            269          457        -31.8%
Total Recurring Operating Costs                  30,134      44,478         12,881       21,897        103.1%
Normalized Net Operating Income                  24,808      36,616         11,269       19,158         91.1%
Net Non-Recurring Income (Costs)                  5,737       8,468            (22)         (37)       NMF(4)
Profit Before Provisions                         30,545      45,085         11,247       19,121        135.8%
Net Provision Expense                             5,048       7,451          1,186        2,017        269.5%
Pre-Tax Income                                   25,497      37,634         10,061       17,104        120.0%
   Income Tax Expenses                            3,873       5,716          2,024        3,441         66.1%
Net Income                                       21,624      31,918          8,037       13,663        133.6%


Weighted Average Number of Shares
 Outstanding (000s)                                          29,237                      25,217         15.9%
Fully Diluted Number of Shares Period End
 (000s)                                                      31,244                      27,230         14.7%
EPS (Basic)                                        0.74        1.09           0.32         0.54        101.4%
EPS (Fully Diluted)                                0.69        1.02           0.30         0.50        103.6%
*T

(1) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4760 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 March 2008

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.7000 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 March 2007

(3)Growth calculations based on GEL values

(4) Not meaningful

BALANCE SHEET DATA

-0-
*T
                                    31-Mar-08       Growth(2)       31-Dec-07       Growth(2)         31-Mar-07
Consolidated, IFRS Based        US$(1)      GEL        YTD      US$(3)      GEL       Y-O-Y      US$(4)        GEL
000s, unless otherwise noted       (Unaudited)                      (Audited)                        (Unaudited)

Cash & Cash Equivalents          146,001    215,497     -41.8%   232,642    370,273     164.8%     47,871      81,381
Loans & Advances To Credit
 Institutions                    157,305    232,182      22.2%   119,413    190,057     -16.5%    163,647     278,199
   Mandatory Reserve With
    NBG/NBU                       59,344     87,591     -39.4%    90,872    144,631      46.9%     35,067      59,614
   Other Accounts With NBG/NBU    34,463     50,868      43.3%    22,303     35,497     278.1%      7,914      13,454
   Balances With & Loans To
    Other Banks                   63,498     93,723     844.0%     6,238      9,929     -54.3%    120,666     205,132
Available-For-Sale Securities     34,830     51,409       5.5%    30,616     48,729    9727.3%        308         523
Treasuries & Equivalents          18,726     27,639     -65.3%    50,111     79,757     -41.0%     27,552      46,838
Other Fixed Income Instruments   190,534    281,229     149.5%    70,814    112,708      43.7%    115,156     195,766
   Gross Loans To Clients      1,257,235  1,855,678       5.9% 1,100,842  1,752,100     122.1%    491,376     835,339
   Less: Reserve For Loan
    Losses                       -26,818    -39,584      33.1%   -18,689    -29,745      85.8%    -12,533     -21,307
Net Loans To Clients           1,230,416  1,816,094       5.4% 1,082,153  1,722,355     123.1%    478,843     814,033
Investments In Other Business
 Entities, Net                    45,623     67,339      67.2%    25,303     40,273     202.0%     13,116      22,297
Property & Equipment Owned,
 Net                             167,416    247,107      20.7%   128,585    204,656     144.1%     59,547     101,230
Intangible Assets Owned, Net       4,220      6,229      65.1%     2,370      3,772     109.7%      1,747       2,970
Goodwill                          74,679    110,227      -1.8%    70,505    112,216     163.9%     24,573      41,773
Tax Assets - Current &
 Deferred                          2,371      3,499     124.7%       978      1,557    1812.8%        108         183
Prepayments & Other Assets        60,533     89,346      32.8%    42,258     67,258      84.9%     28,431      48,333
Total Assets                   2,132,654  3,147,797       6.6% 1,855,750  2,953,611      92.7%    960,898   1,633,526
                                                                                                   11,591      19,705
Client Deposits                  898,493  1,326,175      -2.2%   851,644  1,355,476     120.2%    354,235     602,199
Deposits & Loans From Banks       29,541     43,602     -33.7%    41,349     65,811      22.4%     20,959      35,631
Borrowed Funds                   538,668    795,074      -4.9%   525,248    835,984      50.7%    310,265     527,451
Issued Fixed Income Securities     9,173     13,540     171.2%     3,137      4,993     -31.3%        671       1,141
Insurance Related Liabilities     29,221     43,130       4.4%    25,968     41,330    3681.5%     11,591      19,705
Tax Liabilities - Current &
 Deferred                         18,357     27,095     -27.2%    23,378     37,209     149.1%      6,399      10,878
Accruals & Other Liabilities     103,282    152,445     178.1%    34,441     54,817     197.6%     30,135      51,230
Total Liabilities              1,626,736  2,401,062       0.2% 1,505,165  2,395,620      92.4%    734,255   1,248,234

Ordinary Shares                   21,168     31,244      15.1%    17,061     27,155      23.8%     14,850      25,245
Share Premium                    302,975    447,191      41.8%   198,175    315,415      73.0%    152,081     258,538
Treasury Shares                   -1,250     -1,846       6.3%    -1,091     -1,737      59.3%       (681)     (1,158)
Retained Earnings                 97,705    144,213     125.8%    40,122     63,858     136.5%     35,869      60,977
Revaluation & Other Reserves      42,537     62,784      -6.8%    42,318     67,354     175.5%     13,407      22,791
Net Income For The Period         21,624     31,918     -57.8%    47,526     75,642     133.6%      8,037      13,663
Shareholders' Equity Excluding
 Minority Interest               484,759    715,505      30.6%   344,111    547,687      88.3%    223,562     380,055
Minority Interest                 21,159     31,230     203.1%     6,474     10,304     496.3%      3,081       5,237
Total Shareholders' Equity       505,918    746,735      33.8%   350,585    557,991      93.8%    226,642     385,292
Total Liabilities &
 Shareholders' Equity          2,132,654  3,147,797       6.6% 1,855,750  2,953,611      92.7%    960,898   1,633,526

Shares Outstanding                       31,244,092      15.1%           27,154,918      23.8%             25,244,609
Book Value Per Share               16.19      23.90      15.9%     12.95      20.62      55.3%       9.05       15.39

(1) Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.4760 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 March 2008

(2) Growth calculations based on GEL values

(3) Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.5916 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 2007

(4) Converted to U.S. dollars for the convenience using a period-end exchange rate of GEL 1.7000 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 March 2007
*T

KEY RATIOS

-0-
*T
                                                                                  Q1 2008    Q1 2007
Profitability Ratios
ROAA( 1), Annualised                                                                 4.2%       3.8%
ROA                                                                                  4.1%       3.3%
ROAE(2), Annualised                                                                 19.6%      14.3%
ROE                                                                                 17.1%      14.2%
Interest Income To Average Interest Earning Assets (3), Annualised                  16.6%      15.1%
Cost Of Funds (4), Annualised                                                        7.7%       7.0%
Net Spread (5)                                                                       8.9%       8.1%
Net Interest Margin (6), Annualised                                                  8.9%       9.1%
Net Interest Margin Normalized (35), Annualised                                      8.9%       9.1%
Loan Yield (7), Annualised                                                          18.9%      21.2%
Interest Expense To Interest Income                                                 46.2%      39.5%
Net Non-Interest Income To Average Total Assets, Annualised                          4.1%       4.2%
Net Non-Interest Income To Revenue (8)                                              38.6%      36.6%
Net Fee And Commission Income To Average Interest Earning Assets (9),
 Annualised                                                                          1.8%       2.1%
Net Fee And Commission Income To Revenue                                            12.5%      14.4%
Operating Leverage (10)                                                             33.4%      38.6%
Total Operating Income (Revenue) To Total Assets, Annualised                        10.3%      10.0%
Recurring Earning Power (11), Annualised                                             4.8%       6.9%
Net Income To Revenue                                                               39.4%      33.3%

Efficiency Ratios
Operating Cost To Average Total Assets (12), Annualised                              5.8%       6.1%
Cost To Average Total Assets (13), Annualised                                        4.7%       6.2%
Cost / Income (14)                                                                  44.4%      53.4%
Cost / Income, Normalized (37)                                                      54.8%      53.3%
Cost / Income, Bank of Georgia, Standalone (15)                                     45.1%      50.1%
Cash Cost / Income                                                                  39.4%      48.6%
Total Employee Compensation Expense To Revenue (16)                                 31.7%      31.4%
Total Employee Compensation Expense To Cost                                         71.5%      58.8%
Total Employee Compensation Expense To Average Total Assets, Annualised              3.4%       3.6%

Liquidity Ratios
Net Loans To Total Assets (17)                                                      57.7%      49.7%
Average Net Loans To Average Total Assets                                           58.0%      52.9%
Interest Earning Assets To Total Assets                                             74.9%      81.6%
Average Interest Earning Assets To Average Total Assets                             73.1%      80.2%
Liquid Assets To Total Assets (18)                                                  22.9%      33.2%
Net Loans To Client Deposits                                                       136.9%     135.2%
Average Net Loans To Average Client Deposits                                       132.0%     129.8%
Net Loans To Total Deposits (19)                                                   132.6%     127.7%
Net Loans To Total Liabilities                                                      75.6%      65.2%
Total Deposits To Total Liabilities                                                 57.0%      48.2%
Client Deposits To Total Deposits                                                   96.8%      94.4%
Client Deposits To Total Liabilities                                                55.2%      48.2%
Current Account Balances To Client Deposits                                         43.8%      61.0%
Demand Deposits To Client Deposits                                                   7.0%       5.5%
Time Deposits To Client Deposits                                                    49.3%      33.5%
Total Deposits To Total Assets                                                      43.5%      39.0%
Client Deposits To Total Assets                                                     42.1%      36.8%
Client Deposits To Total Equity (Times) (20)                                        1.78       1.55
Due From Banks / Due To Banks (21)                                                 532.5%     780.8%
Total Equity To Net Loans                                                           41.1%      47.7%
Leverage (Times) (22)                                                                3.2        3.2
*T

KEY RATIOS CONT'D

-0-
*T
                                                                                   Q1 2008      Q1 2007
Asset Quality
NPLs (in GEL) 23                                                                   18,992       21,059
NPLs To Gross Loans To Clients (24)                                                   1.0%         2.5%
Cost of Risk 25, Annualized                                                           1.7%         1.0%
Cost of Risk Normalized (36), Annualized                                              1.7%         1.0%
Reserve For Loan Losses To Gross Loans To Clients (26)                                2.1%         2.6%
NPL Coverage Ratio (27)                                                             208.4%       101.2%
Equity To Average Net Loans To Clients                                               42.2%        51.5%

Capital Adequacy:
Equity To Total Assets                                                               23.7%        23.7%
BIS Tier I Capital Adequacy Ratio, consolidated (28)                                 25.2%        34.1%
BIS Total Capital Adequacy Ratio, consolidated (29)                                  25.8%        34.8%
NBG Tier I Capital Adequacy Ratio (30)                                               18.3%        19.2%
NBG Total Capital Adequacy Ratio (31)                                                16.3%        22.5%

Per Share Values:
Basic EPS (GEL) (32)                                                                 1.09         0.54
Basic EPS (US$)                                                                      0.74         0.32
Fully Diluted EPS (GEL) (33)                                                         1.02         0.50
Fully Diluted EPS (US$)                                                              0.69         0.30
Book Value Per Share (GEL) (34)                                                     23.90        15.39
Book Value Per Share (US$)                                                          16.19         9.05
Ordinary Shares Outstanding - Weighted Average, Basic                          29,237,387   25,216,510
Ordinary Shares Outstanding - Period End                                       31,244,092   25,244,609
Ordinary Shares Outstanding - Fully Diluted                                    31,244,092   27,230,351

Selected Operating Data:
Full Time Employees (FTEs)                                                          4,926        2,558
FTEs, Bank of Georgia Standalone                                                    3,056        1,933
Total assets per FTE (23 )(GEL Thousands)                                             639          640
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands)                    1,030          847
Number Of Active Branches                                                             131          103
Number Of ATMs                                                                        310          146
Number Of Cards (Thousands)                                                           743          344
Number Of POS Terminals                                                             2,063          497
*T

                               NOTES TO KEY RATIOS

(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) Loan Yield equals Interest Income, less Net Provision Expense, divided by
quarterly Average Gross Loans To Clients;

(8) Revenue equals Total Operating Income;

(9) Net Fee And Commission Income includes Net Income From Documentary
Operations of the period ;

(10) Operating Leverage equals percentage change in Revenue less percentage
change in Total Costs;

(11) Recurring Earning Power equals Profit Before Provisions of the period
divided by average Total Assets of the same period;

(12) Operating Cost equals Total Recurring Operating Costs;

(13) Cost includes Total Recurring Operating Costs and Net Non-Recurring Costs
(Income);

(14) Cost/Income Ratio equals Costs of the period divided by Total Operating
Income (Revenue);

(15) Cost/ Income, Bank of Georgia, standalone, equals non-consolidated Total
Costs of the bank of the period divided by non-consolidated Revenue of the bank
of the same period;

(16) Total Employee Compensation Expense includes Personnel Costs;

(17) Net Loans equal Net Loans To Clients;

(18) Liquid Assets include: Cash And Cash Equivalents, Other Accounts With NBG,
Balances With And Loans To Other Banks, Treasuries And Equivalents and Other
Fixed Income Securities as of the period end and are divided by Total Assets as
of the same date;

(19) Total Deposits include Client Deposits and Deposits And Loans from Banks;

(20) Total Equity equals Total Shareholders' Equity;

(21) Due From Banks/ Due To Banks equals Loans And Advances To Credit
Institutions divided by Deposits And Loans From Banks;

(22) Leverage (Times) equals Total Liabilities as of the period end divided by
Total Equity as of the same date;

(23) NPLs (in GEL) equals total gross non-performing loans as of the period end;
non-performing loans are loans that have debts in arrears for more than 90
calendar days;

(24) Gross Loans equals Gross Loans To Clients;

25 Cost Of Risk equals Net Provision For Loan Losses of the period, plus
provisions for (less recovery of) other assets, divided by quarterly average
Gross Loans To Clients over the same period;

(26) 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;

(27) NPL Coverage Ratio equals Reserve For Loan losses as of the period end
divided by NPLs as of the same date;

(28) BIS Tier I Capital Adequacy Ratio equals 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 Accord I;

(29) 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 Accord I;

(30) 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;

(31) 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;

(32) Basic EPS equals Net Income of the period divided by the weighted average
number of outstanding ordinary shares over the same period;

(33) 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;

(34) Book Value Per Share equals Equity as of the period end, plus Treasury
Shares, divided by the total number of Outstanding Ordinary shares as of the
same date.

(35) Net Interest Margin Normalized equals Net Interest Income of the period,
less interest income generated by non-performing loans through the date of their
write-off, divided by quarterly Average Interest Earning Assets of the same
period;

(36) Cost Of Risk Normalized 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;

(37) Cost / Income Normalized equals Recurring Operating Costs divided by Total
Operating Income (Revenue) for the same period

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 33.7% market share by total assets (all data according to the NBG
as of March 31, 2008). The major component of the Galt & Taggart Index, the bank
has 131 branches and over 770,000 retail and more than 120,000 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:

-0-
*T
 Standard & Poor's        'B+/B'                                   Stable
 FitchRatings             'B+/B'                                   Stable
 Moody's                  'B3/NP' (FC) & 'Ba1/NP' (LC)
*T

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

-0-
*T
Nicholas Enukidze                              Irakli Gilauri                              Macca Ekizashvili
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 Q1 2008 and Q1 2007 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.