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JSC Bank of Georgia (BGEO)

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Monday 01 September, 2008

JSC Bank of Georgia

Half-yearly Report

Bank of Georgia
                  
-0-
*T
1.42 GEL/US$ 1H 2008 period end
1.50 GEL/US$ 1H 2008 average
1.44 GEL/US$ Q2 2008 average
1.67 GEL/US$ 1H 2007 period end
1.70 GEL/US$ 1H 2007 average
1.69 GEL/US$ Q2 2007 average
*T

      JSC BANK OF GEORGIA ANNOUNCES CONSOLIDATED Q2 2008 & 1H 2008 RESULTS

-0-
*T
Millions, unless otherwise noted                              Q2 2008                  Growth y-o-y
                                                                                                 (1)

Bank of Georgia (Consolidated, Unaudited,                 US$                     GEL
 IFRS-based)
Total Operating Income (Revenue)(2)                      60.6                    85.9          64.8%
Recurring Operating Costs                                34.5                    48.9          74.6%
Normalised Net Operating Income(3)                       26.1                    37.1          53.4%
Consolidated EPS (Basic), GEL & US$(4)                   0.64                    0.91          22.7%
Consolidated EPS (Fully Diluted), GEL &
 US$(5)                                                  0.64                    0.91          22.8%
Net Income                                               20.0                    28.3          51.6%
ROAA,(6 )Annualised, %                                                           3.5%
ROA, (7) Annualised, %                                                           3.3%
ROAE,(8) Annualised, %                                                          14.8%
ROE,(9)Annualised, %                                                            14.5%
*T

-0-
*T
Millions, unless otherwise noted                              1H 2008                  Growth y-o-y
                                                                                                 (1)

Bank of Georgia (Consolidated, Unaudited,                 US$                     GEL
 IFRS-based)
Total Operating Income (Revenue)(2)                     117.8                   167.0          79.2%
Recurring Operating Costs                                65.8                    93.3          87.1%
Normalised Net Operating Income(3)                       52.0                    73.7          70.1%
Net Income                                               42.5                    60.3          86.2%
Consolidated EPS (Basic), GEL & US$(4)                   1.41                    2.00          56.3%
Consolidated EPS (Fully Diluted), GEL &
 US$(5)                                                  1.36                    1.93          62.4%
ROAA,(6 )Annualised, %                                                           3.8%
ROA, (7) Annualised, %                                                           3.5%
ROAE,(8) Annualised, %                                                          17.3%
ROE,(9)Annualised, %                                                            15.4%
*T

(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.

About Bank of Georgia

Bank of Georgia, the leading universal Georgian bank with operations in Georgia,
Ukraine and Belarus, is the largest bank by assets, loans, deposits and equity
in Georgia, with 34 % market share by total assets (all data according to the
NBG as of July 31, 2008). The bank has 142 branches and over 880,000 retail and
more than 128,000 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'
   FitchRatings            'B/B'
   Moody's                 'B3/NP' (FC) & 'Ba2/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 Q2 2008, six months 2008, Q2 2007 and six months
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.

Bank of Georgia (LSE: BGEO, GSE: GEB) (the 'Bank'), Georgia's leading universal
bank, announced today its Q2 2008 and 1H 2008 consolidated results (IFRS-based,
derived from management accounts), reporting a Q2 2008 Net Income of GEL 28.3
million (up 51.6% y-o-y) and Consolidated Basic EPS of US$0.64 (up 22.7% y-o-y)
and a 1H 2008 Net Income of GEL 60.3 million (up 86.2% y-o-y) and Consolidated
Basic EPS of US$1.41 (up 56.3% y-o-y).

Q2 2008 Summary

In Q2 2008 the Bank's Total Operating Income (Revenue) grew by 64.8% y-o-y (up
6.0% q-o-q(1)) to GEL 85.9 million. Net Interest Income increased to GEL 55.8
million (up 80.7% y-o-y and 12.2% q-o-q) and Net Non-Interest Income amounted to
GEL 30.1 million (up 41.6% y-o-y and down 4.0% q-o-q) . The Interest Income
growth during the quarter was mainly driven by the increased interest rates on
banking products and the increased share of higher-yielding retail loans in the
Bank's loan portfolio. The Net Interest Margin increased to 9.1% in Q2 2008 from
8.9% in Q1 2008 and 8.5% in Q2 2007. The q-o-q decrease in Net Non-Interest
Income (includes Foreign Currency Related Income, Net Fee and Commission Income,
Net Income from Documentary Operations and Net Other Non-Interest Income) was
mainly due to the decrease in Foreign Currency Related Income (GEL 10.4 million,
up 71.4 % y-o-y and down 21.3% q-o-q), which was caused by a lower volatility of
Lari in Q2 as compared to high volatility in Q1 2008. Net Fee and Commission
Income stood at GEL 10.2 million (up 81.5% y-o-y and down 0.1% q-o-q] and Net
Income from Documentary Operations increased to GEL 1.9 million (up 39.6% y-o-y
and 29.4% q-o-q). Net Other Non-Interest Income was GEL 7.7 million, down 7.2%
y-o-y and up 18.0% q-o-q).

Consolidated Recurring Operating Costs for the quarter grew 74.6% y-o-y (9.9%
q-o-q) to GEL 48.9 million driven mainly by the increase in personnel costs in
Georgia and Ukraine and costs associated with new branches in Georgia. Net
Normalized Operating Income ('NNOI') increased 53.4% y-o-y (up 1.2% q-o-q) to
GEL 37.1 million.

The Bank's Consolidated Net Non-Recurring Income of GEL 3.4 million in Q2 2008
is comparable to GEL 8.5 million it reported in Q1 2008. In Q1 and Q2 2008 the
Consolidated Net Non-Recurring Income was mainly driven by the revaluation of
the real estate properties held by JSC SB Real Estate, a real estate investment
company managed by Galt & Taggart Asset Management, in which the Bank
beneficially owns a significant equity stake. Currently, SB Real Estate
financial statements are fully consolidated into the Bank's financial
statements. The Bank reported a consolidated Net Income of GEL 28.3 million for
Q2 2008, a 51.6% growth on a year-on-year basis and a 11.2% decrease q-o-q.

The Bank's Consolidated ROAE amounted to 14.8% in Q2 2008 compared with a
consolidated ROAE of 19.6% in Q1 2008 and 14.4% in Q1 2007. Consolidated ROAA
was 3.5% in Q1 2008 compared with 4.2% in Q1 2008 and 3.8% in Q1 2007.

Bank of Georgia's banking operations in Georgia, which are provided through JSC
Bank of Georgia, reported a standalone Net Income of GEL 28.4 million (up 77.6%
y-o-y and 11.9% q-o-q). The Bank's subsidiaries showed mixed results in Q2 2008.
The Bank's Ukrainian subsidiary, Universal Bank for Development and Partnership
('UBDP'), reported a Net Income of GEL 0.7 million in Q2, reversing a Net Loss
of GEL 0.7 million in Q1 2008. Galt & Taggart Securities, the Bank's fully-owned
investment banking subsidiary, which witnessed rapidly deteriorating market
conditions in Ukraine and Georgia in Q2, reported a quarterly Net Loss of GEL
2.6 million. Aldagi BCI, the Bank's fully-owned Georgian Insurance subsidiary,
reported a quarterly Net Income of GEL 36,000 compared with Net Loss of GEL 0.4
million in Q1 2008.

On 13 May 2008 Bank of Georgia announced that it signed an agreement to acquire
70% equity interest in a Belarusian bank, Belarusky Narodny Bank ('BNB'), for
the total consideration of US$34.2 million (P/BV of circa 1.99x based on BNB's
2007 Audited Financial statements). The BNB acquisition was completed just a few
days before the end of the reporting period. Therefore, BNB's 1H 2008 results
were not included in the Bank's consolidated 1H 2008 results and the Bank's
equity interest in BNB was reported as Investments in Other Business Entities on
the Bank's 30 June 2008 consolidated Balance Sheet. As of 30 June 2008 BNB had
total assets of US$45.5 million, net loans of US$25.8 million, client deposits
of US$12.9 million and a total shareholders' equity of US$25.6 million. BNB's
net income for 1H 2008 amounted US$1.9 million.

(1) q-o-q compares Q2 2008 results with Q1 2008 results

In June 2008 Bank of Georgia Bank of Georgia and its fully-owned subsidiary Galt
& Taggart Bank (formerly Cascade Bank-Georgia, acquired by the Bank in July
2007) merged pursuant to the resolution of the Annual General Meeting of
Shareholders ('AGM') of Bank of Georgia, held on 30 May 2008. No consideration
was paid during the merger. Bank of Georgia became JSC Galt & Taggart Bank's
legal successor. Bank of Georgia's authorized share capital, existing
shareholders' ownership interests and the management structure remained
unchanged. The purpose of the merger was to simplify the Bank of Georgia's
corporate structure.

Despite continued difficult market conditions, Bank of Georgia raised US$166
million in debt funding in Q2 2008, including approximately US$26 million in
Lari-denominated short-term promissory notes, a US$30 million subordinated loan
from Dutch and German development banks FMO and DEG and US$110 million two-year
Loan Passthrough Notes (Bloomberg: BKGORG) arranged by JPMorgan (the facility
was increased by a further US$30 million in July 2008).

The Bank's AGM also approved an increase of Bank of Georgia's Authorized Share
Capital by 7,000,000 shares, which will be reserved for general funding
purposes. The issuance of newly authorized shares by the Management Board will
be possible only with the approval of the Supervisory Board within five years of
the AGM.

1H 2008 Summary

In 1H 2008 the Bank's Total Operating Income (Revenue) increased by 79.2% y-o-y
to GEL 167.0 million, driven by a 85.4% increase y-o-y in Net Interest Income
and a 69.4% increase y-o-y in Net Non-Interest Income. Total Recurring Operating
Costs increased by 87.1% y-o-y to GEL 93.3 million. NNOI grew 70.1% y-o-y to GEL
73.7 million and Net Income increased by 86.2% y-o-y to GEL 60.3 million.

On 30 June 2008 the Bank's consolidated Total Assets amounted to GEL 3.4 billion
(up 77.3% y-o-y, up 15.1% year-to-date and an 8.0% increase in Q2 2008 compared
with Q1 2008 or q-o-q). Gross Loans reached GEL 2,107 million (up 98.9% increase
y-o-y, up 20.2% year-to-date and up 13.5% q-o-q). Corporate Gross Loans to
Clients in Georgia stood at GEL 880.6 million (up 54.3% y-o-y, up 9.1%
year-to-date and up 7.2% q-o-q). Retail Gross Loans to Clients in Georgia
reached GEL 921.9 million (up 110.0% y-o-y, 43.1% year-to-date and 22.2% q-o-q).
Wealth Management Gross Loans To Clients in Georgia amounted to GEL 42.6 million
(up 30.3% y-o-y, down 3.6% year-to-date and up 22.3% q-o-q). UBDP accounted for
10.6% and 12.6% of the Bank's Total Assets and Total Gross Loans, respectively.

The combined share of Retail and Wealth Management (excluding UBDP) in Bank of
Georgia's Gross Loans To Clients increased to 52.4% as of 30 June 2008 from
46.0% as of 31 December 2007.

As of 30 June 2008 the Bank's consolidated Total Liabilities reached GEL 2.6
billion (up 72.9% y-o-y, up 9.3% year-to-date and up 9.1% q-o-q). Against the
background of intensifying competition for deposits in Georgia and a 10.9%
appreciation of Georgian Lari against the US dollar in 1H 2008, Client Deposits
in Georgia reached GEL 1.2 billion (up 46.8% y-o-y, up 11.7% year-to-date and up
9.5% q-o-q). Bank of Georgia's Consolidated Client Deposits increased to GEL
1,395 million (up 68.5% y-o-y, up 2.9% year-to-date and up 5.2% q-o-q).

As of 30 June 2008 Bank of Georgia on standalone basis held market share of
34.0%, 33.3% and 29.7% by total assets, gross loans, and deposits, respectively
in Georgia(2) . In 1H 2008 Bank of Georgia accounted for 61.0% of the total Net
Income in the Georgian banking sector compared with 35.5% in 1H 2007.

As of 30 June 2008 the Bank's Shareholders' Equity amounted to GEL 783.1
million, an increase of GEL 225.1 million year-to-date and GEL 379.0 million
y-o-y. The year-to-date growth was mainly due to 1H 2008 Net Income of GEL 60.3
million, as well as a capital increase implemented 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.

In 1H 2008 the Bank's Consolidated ROAE amounted to 17.3% compared with a
consolidated ROAE of 16.6% in 1H 2007 and 17.7% for the full year 2007.
Consolidated ROAA stood at 3.8% compared with an ROAA of 3.9% in 1H 2007 and
3.8% for the full year 2007. The Bank's equity book value per share stood at GEL
25.06 (US$17.67) as at 30 June 2008, up 57.0% y-o-y and up 22.0% year-to-date.

(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

Business Unit Overview

Corporate Banking (CB)(3)

Discussion of Results

Allocated Revenues grew 48.9% y-o-y to GEL 46.9 million in 1H 2008, while
Allocated Recurring Costs increased by 59.3% y-o-y. NNOI grew 44.8% y-o-y to GEL
32.7 million, contributing 44.4% to the consolidated NNOI. Net Income grew 49.2%
y-o-y to GEL 22.9 million, contributing 38.0% to the consolidated Net Income.

On a quarterly basis, Allocated Revenues in Q2 2008 grew 28.5% y-o-y to GEL 22.8
million, down 5.2% q-o-q, while Allocated Recurring Costs grew to GEL 7.2
million 36.8% y-o-y, up 3.8% q-o-q. Q2 2008 NNOI grew by 25.0% y-o-y to GEL 15.6
million, down 8.8% q-o-q, while Q2 2008 Net Income increased by 57.4% y-o-y to
GEL 12.4 million, up 18.0% q-o-q.

CB Gross Loans grew 54.3% y-o-y to GEL 880.6 million (up 9.1% year-to-date).
Allocated Client Deposits stood at GEL 681.5 million up 38.4% increase y-o-y and
up by 1.8% year-to-date.

Highlights

    --  Major new corporate client acquisitions include Turkish gas station
        chain Petrol Ofisi Georgia, a Ukrainian Airlines representative office
        and Electricity System Commercial Operator.

    --  Increased the number of corporate clients using the Bank's payroll
        services from approximately 700 at the end of 2007 to over 850 by 30
        June 2008.

    --  Approximately 6,000 legal entities opened accounts at the bank in 1H
        2008, bringing the total number of CB clients to approximately 71,000.

Retail Banking (RB)

Discussion of Results

Allocated Revenues grew 93.4% y-o-y to GEL 81.5 million in 1H 2008, while
Allocated Recurring Costs increased by 81.6% y-o-y to GEL 38.7 million. NNOI
grew 105.5% y-o-y to GEL 42.8 million, contributing 58.1% to the consolidated
NNOI. Net Income grew 74.6% y-o-y to GEL 25.8 million, contributing 42.7% to the
bank's consolidated Net Income.

On a quarterly basis, Allocated Revenues in Q2 2008 grew 87.4% y-o-y to GEL 43.8
million, up 16.0% q-o-q, while Allocated Recurring Costs grew to GEL 20.6
million 73.9% y-o-y, up 14.4% q-o-q. Q2 2008 NNOI grew by 101.4% y-o-y to GEL
23.1 million, up 17.6% q-o-q, while quarterly Net Income in Q2 2008 increased by
66.0% y-o-y to GEL 12.8 million, a decrease of 0.9% q-o-q.

RB Gross Loans grew 110.0% y-o-y to GEL 921.9 million (up 43.1% 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 47.8% y-o-y to GEL 403.4 million (up 18.6% year-to-date).

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

Highlights

    --  Increased the number of retail current accounts from approximately
        705,000 at the beginning of the year to over 880,000 as at 30 June 2008.

    --  Launched a new universal remote banking platform for multiple
        communication channels, including Internet, voice telephony and mobile.

    --  Jointly with Populi, the leading Georgian supermarket chain, launched a
        co-branded credit card, Populi Credit, which is targeted at Populi or
        any other convenience/grocery store customers; over 4,000 cards were
        issued since the launch with a total approved credit limit of GEL 2.1
        million.

    --  Opened 17 new branches (service centers) in Georgia, bringing the total
        number of branches to 134 by 30 June 2008.

    --  Stepped up the issuance of credit cards, as the number of credit cards
        issued reached approximately 68,800 in 1H 2008 compared with 22,701
        credit cards issued in 1H 2007. In 1H 2008 over 144,000 debit cards were
        issued, compared with approximately 164,500 debit cards issued during 1H
        2007

    --  Continued acquiring new merchants as the installed POS terminal
        footprint grew to 2,452 compared wtih 1,594 at the end of 2007.

    --  The total number of cards serviced by Georgian Card grew from 876,263 at
        year end 2007 to approximately 1,054,080 by 30 June 2008, while the
        number of transaction authorisations processed by Georgian Card in 1H
        2008 grew 120.1% y-o-y to approximately 15.7 million. The volume of
        transactions processed grew to GEL 1,035 million, up 149.7% y-o-y.

    --  Continued investing in electronic banking channels; the number of ATMs
        grew to 363 by 30 June 2008 (up from 250 at the end of 2007), number of
        mobile banking users reached 42,119, up 6.1% from the beginning of the
        year, and the number of registered Internet banking users grew 256.6%
        y-o-y to over 200,000. In Q2 2008, Person- to- Person Money transfer
        feature was added to Bank of Georgia's ATM network.

    --  Increased car loan originations for 1H 2008 to GEL 41.4 million (up
        158.5% y-o-y and 42.6% q-o-q). Car loans outstanding by 30 June 2008
        stood at GEL 63.2 million, up 184.2% y-o-y (70.6% year-to-date).

    --  Increased mortgage loan originations to GEL 164.4 million in 1H 2008 (up
        156.8% y-o-y and 12.1% q-o-q). Mortgage loans outstanding on 30 June
        2008 stood at GEL 283.1 million, up 167.7% y-o-y, (up 56.7%
        year-to-date).

Wealth Management (WM)

Discussion of Results

Allocated Revenues for WM was GEL 2.9 million in 1H 2008, an increase of 35.2%
y-o-y. Net Income grew 14.0% y-o-y to GEL 1.0 million, contributing 1.6% to
consolidated Net Income.

WM Gross Loans stood at GEL 42.6 million an increase of 30.3% y-o-y and a
decrease of 3.6% year-to-date due to the repayment of several sizeable loans in
Q1 2008. Allocated Client Deposits increased by 44.6% y-o-y and up 17.5%
year-to-date to GEL 81.6 million.

    --  Launched Club 24, a private club for Wealth Management clients in
        Georgia. At Club 24 the Bank's WM clients have access to a full range of
        banking products offered by Bank of Georgia and also benefit from the
        club's dining and entertainment facilities, conference rooms, onsite
        travel agent, real estate brokerage, tax advisory, insurance and a
        concierge services.

    --  Purchased office space and recruited head of the office for the Bank's
        Wealth Management business in Tel Aviv, Israel. Registration of the
        Bank's representative office with Bank of Israel is currently in
        progress.

Ukraine

Discussion of Results

UBDP's Total Operating Income (Revenue) amounted to GEL 13.3 million in 1H 2008,
while Recurring Costs stood at GEL 14.3 million), resulting in a Net Loss of GEL
40,000.

On a quarterly basis, UBDP's Revenue increased by 3.7% compared to Q1 2008 to
GEL 6.8 million and Q2 2008 Net Income reached GEL 0.66 million, reversing Q1
2008's Net Loss of GEL 0.70 million.

UBDP's Total Assets grew by 2.9% year-to-date to GEL 360.3 million and Gross
Loans to Clients increased by 17.2% to GEL 265.4 million in 1H 2008. Client
Deposits dropped 31.7% year-to-date to GEL 180.2 million, mostly a result of the
departure of several corporate clients and increased competition for deposits in
1H 2008. UBDP's Total Assets increased to GEL 360.3 million (up 2.9%
year-to-date), while Total Liabilities reached GEL 292.1 million (up 3.0%
year-to-date).

Highlights

    --  Shareholders' Meeting of UBDP held on 16 May 2008 approved the increase
        of UBDP's capital from UAH 140 million to UAH 265 million through the
        issue of 125 million new shares at UAH 1 per share.

    --  Launched Micro and Small Enterprise ('MSE') Lending Program, which is
        being implemented through a newly-established MSE department, which
        currently employs 20 MSE lending managers.

    --  Increased number of retail current accounts from approximately 44,000 at
        YE 2007 to over 45,7000 as at 30 June 2008

    --  Increased number of corporate current accounts from approximately 4,710
        at YE 2007 to over 5,000 as at 30 June 2008

    --  Launched the program for rationalization of UBDP operations, including
        headcount and branch network. An ongoing headcount optimization resulted
        in reduction of UBDP's staff from 814 at year-end 2007 to 781 on 30 June
        2008 and closure of five unprofitable branches.

Galt & Taggart Securities (GTS)

Discussion of Results

Difficult capital markets in Georgia (GTS Index decreased by 30.9% in 1H 2008)
and Ukraine (the PFTS Index decreased by 34.6% in 1H08) had a negative impact on
Galt & Taggart Securities ('GTS'), Bank of Georgia's fully-owned investment
banking subsidiary. In 1H 2008 GTS Revenue of GEL 0.6 million represents a 94.8%
decrease y-o-y and a Net Loss of GEL 4.4 million, compared with 1H 2007 Net
Income of GEL 7.7 million. GTS' Revenue and Net Loss for 1H 2008 includes the
loss from trading activities of GEL 2.3 million, which reflects loss on GTS'
proprietary trading book in Ukraine. Due to its bearish outlook on markets for
the remainder of 2008, GTS largely disposed of its proprietary trading book in
July and August 2008. GTS also launched a cost optimization program, which it
expects to complete by the end of September.

In 1H 2008 Galt & Taggart Securities continued to hold the leading position in
equities trading in Georgia, with an approximate market share of 84.6% in terms
of trading volume and ranked #4 among broker-dealers with an approximately 7.0%
market share by equities trading volume in Ukraine. In 1H 2008 GTS opened
corporate finance offices in Belarus and Azerbaijan and establishing a trading
presence in Uzbekistan.

Asset Management (AM)

The following key entities are included in the AM segment: Galt & Taggart Asset
Management ('GTAM'), the bank's asset management arm, majority owned by the
Bank; JSC Galt & Taggart Capital ('GTC'), a GSE-listed consumer-and retail-
oriented investment company managed by GTAM in which the Bank owns 65.24% equity
stake; and JSC SB Real Estate ('SBRE'), a real estate investment company managed
by GTAM in which GTC owns 52.08% equity stake. The financial results of GTAM,
GTC and SBRE are fully consolidated in the Bank's financial results. As of 30
June 2008 Assets Under Management of Galt & Taggart Asset Management (GTAM)
stood at approximately US$149 million, an increase of 89.5% since the year end
2007 and 14.7% since 31 March 2008. AM revenues grew to GEL 14.1 million in 1H
2008, up 719.5% y-o-y. Net Income stood at GEL 11.6 million in 1H 2008 and
contributed 19.2% to the consolidated Net Income. A gain of GEL 11.2 million
from the revaluation of real estate properties owned by SBRE is included in AM
revenues and Net Income. The gain has been included in the Net Non-Recurring
Income line of the Bank's Income Statement for 1H 2008.

Insurance

Discussion of Results

Gross Premiums Written of Aldagi BCI, the bank's fully-owned Georgian insurance
subsidiary, increased by 75.0% y-o-y to GEL 29.8 million. Net Premiums Earned
grew 170.9% y-o-y to GEL 17.5 million. Revenues increased by 0.8% y-o-y to GEL
4.4 million. Net Loss for 1H 2008 equaled GEL 0.4 million. The loss was mainly
due to Aldagi BCI's participation in the state healthcare program for socially
vulnerable citizens and school teachers launched in Q4 2007, which brought
84,000 new clients to Aldagi BCI. The program which was originally scheduled to
end in September - December 2008, was extended for another year at increased
premiums per participant. 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.

Highlights

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

    --  Opened two new branch of Aldagi BCI's My Family Clinic in Tbilisi and
        Batumi.

    --  Purchased a 55.0% equity stake in a newly opened 35 bed hospital in
        Kutaisi, the second largest city in Georgia.

    --  Acquired a 19.5% equity interest in JSC GPC, the third largest pharmacy
        chain in Georgia on 1 July 2008.

Comments

'We are pleased to report strong Q2 results despite operating in an increasingly
challenging market environment.

On the one hand, strict anti-inflationary measures successfully implemented by
the Georgian government, including a high benchmark interest rate and reduced
government spending, resulted in a slowdown in deposit formation in the Georgian
banking system and increased competition for deposits. On the other hand,
negative news flow from Abkhazia and South Ossetia, which started in April 2008
following the NATO summit in Bucharest, added to investors' concerns caused by
the global credit crisis and worrying macroeconomic news from several countries
in our region. This, in turn, presented further challenges to the Bank in terms
of the cost of wholesale funding and its availability. At the same time, in
Ukraine we witnessed a weakening macroeconomic environment, including a high
rate of inflation and liquidity shortages in the banking system.

Despite the challenging market environment, the Bank's Q2 2008 results were
strong and growth prospects were sound supported by our undisputed leadership
position in both corporate and retail banking segments. The strong development
of our retail business in Georgia was particularly satisfying. We also made good
progress in integrating our Ukrainian operation recruiting an experienced new
CEO for UBDP, as well as several other senior team members, rationalizing the
headcount and the branch network. We were also successful in entering a
promising Belarusian market through the acquisition of BNB.

Responding to the new realities in our target markets and globally, we made
adjustments to the Bank's strategy. In Q2 2008 the Bank's management
increasingly focused on maximizing the value of our key business units, such as
banking operation in Georgia, UBDP and BNB. Following the acquisition of BNB,
the Bank's international acquisition strategy was put on hold until 2009. We
also started reviewing of our positions in several non-core subsidiaries,
including Aldagi BCI, GTAM and GTC, with a view to minimizing our management
resource dedicated to these subsidiaries and optimizing their development
prospects. For example, in Q2 2008 we started searching for a strategic investor
for Aldagi BCI, and considered the sale of GTAM and a partial divestment of the
Bank's stake in GTC.

In the aftermath of the conflict between Russia and Georgia in August 2008,
sharp focus on the Bank's key asset - banking business in Georgia, is even more
important. Fortunately, the Bank's physical assets sustained a very limited
damage during the conflict. Two of our branches were damaged and three ATMs
destroyed. However, significant deposit outflow caused by the conflict and the
impact that the conflict will likely to have on the Bank's ability to raise
financing in the international capital markets in the short-term could have
negative implications for the Bank's short-and medium-term prospects.

Therefore, for the next several months the Bank's management's main focus shall
be on re-building our banking operations in Georgia and strengthening our
funding base.

    --  Working with our corporate and retail clients whose ability to repay
        loans has been temporarily impaired as the result of the conflict. In
        each case our objective is to find a customer-focused solution, which
        would allow our clients to resume servicing their loans on normal
        schedule;

    --  Working with our depositors, who withdrew their funds from Bank of
        Georgia and other banks with the goal of restoring the Bank's deposit
        base as soon as; and

    --  Working with the International Financial Institutions who expressed
        their confidence in the Georgian economy during the conflict and
        committed to providing considerable amount of financing to Georgian
        companies and the banking sector, in particular.

Finally, I would like to note the dedication, professionalism and discipline
demonstrated by our employees, who kept our branches working even during the
tensest days of the conflict', commented Nicholas Enukidze, Chairman of the
Supervisory Board.

In the opinion of Bank of Georgia's management, the report enables investors to
make an informed assessment of the results and activities in the group for the
period.

                                 SEGMENT RESULTS

-0-
*T
Total Operating Income
 (Revenue)                      Growth y-o-y      1H 2008    Share      1H 2007    Share
------------------------------- ------------ ------------ -------- ------------ --------
Corporate & Investment Banking         48.9%       46,926    28.1%       31,512    33.8%
Retail Banking                         93.4%       81,508    48.8%       42,143    45.2%
Wealth Management                      35.2%        2,888     1.7%        2,137     2.3%
Ukraine                                  NMF       13,248     7.9%         n.a.      n.a
Galt & Taggart Securities             -94.8%          612     0.4%       11,850    12.7%
Asset Management                      719.5%       14,081     8.4%        1,718     1.8%
Insurance                               0.8%        4,400     2.6%        4,364     4.7%
Corporate Center/Eliminations            NMF        3,353     2.0%        (516)    -0.6%
------------------------------- ------------ ------------ -------- ------------ --------
Total Operating Income
 (Revenue)                             79.2%      167,016   100.0%       93,207   100.0%
------------------------------- ------------ ------------ -------- ------------ --------

Total Recurring Operating Costs
------------------------------- ------------ ------------ -------- ------------ --------
Corporate & Investment Banking         59.3%       14,198    15.2%        8,914    17.9%
Retail Banking                         81.6%       38,699    41.5%       21,311    42.7%
Wealth Management                      56.6%        1,333     1.4%          851     1.7%
Ukraine                                  NMF       14,266    15.3%          n.a      n.a
Galt & Taggart Securities             168.6%        5,929     6.4%        2,207     4.4%
Asset Management                       91.0%        4,183     4.5%        2,190     4.4%
Insurance                              30.5%        4,429     4.7%        3,395     6.8%
Corporate Center/Eliminations          -6.5%       10,303    11.0%       11,016    22.1%
------------------------------- ------------ ------------ -------- ------------ --------
Total Recurring Operating Costs        87.1%       93,339   100.0%       49,885   100.0%
------------------------------- ------------ ------------ -------- ------------ --------


Net Income
------------------------------- ------------ ------------ -------- ------------ --------
Corporate & Investment Banking         49.2%       22,881    38.0%       15,337    47.4%
Retail Banking                         74.6%       25,754    42.7%       14,749    45.6%
Wealth Management                      14.0%          985     1.6%          864     2.7%
Ukraine                                  NMF         (40)    -0.1%         n.a.     n.a.
Galt & Taggart Securities                NMF      (4,407)    -7.3%        7,713    23.8%
Asset Management                         NMF       11,564    19.2%        (393)    -1.2%
Insurance                                NMF        (335)    -0.6%          762     2.4%
Corporate Center/Eliminations            NMF        3,849     6.4%      (6,679)   -20.6%
------------------------------- ------------ ------------ -------- ------------ --------
Net Income                             86.2%       60,253   100.0%       32,352   100.0%
------------------------------- ------------ ------------ -------- ------------ --------

Basic EPS Contribution          Growth y-o-y Contribution    Share Contribution    Share
------------------------------- ------------ ------------ -------- ------------ --------
Corporate & Investment Banking         25.1%         0.76    38.0%         0.61    47.4%
Retail Banking                         46.4%         0.86    42.7%         0.58    45.6%
Wealth Management                      -4.4%         0.03     1.6%         0.03     2.7%
Ukraine                                  NMF       (0.00)    -0.1%         n.a.     n.a.
Galt & Taggart Securities                NMF       (0.15)    -7.3%         0.31    23.8%
Asset Management                         NMF         0.38    19.2%       (0.02)    -1.2%
Insurance                                NMF       (0.01)    -0.6%         0.03     2.4%
Corporate Center/Eliminations            NMF         0.13     6.4%       (0.26)   -20.6%
------------------------------- ------------ ------------ -------- ------------ --------
Total                                  56.2%         2.00   100.0%         1.28   100.0%
------------------------------- ------------ ------------ -------- ------------ --------
*T

                             SEGMENT RESULTS CONT'D

-0-
*T
Total Operating Income                                                                                    Growth q-o-
 (Revenue)                 Growth y-o-y      Q2 2008    Share      Q1 2008    Share      Q2 2007    Share           q
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Corporate & Investment
 Banking                          28.5%       22,841    26.6%       24,085    29.7%       17,778    34.1%       -5.2%
Retail Banking                    87.4%       43,782    51.0%       37,727    46.5%       23,359    44.8%       16.0%
Wealth Management                 -4.9%        1,247     1.5%        1,641     2.0%        1,311     2.5%      -24.0%
Ukraine                             NMF        6,746     7.9%        6,503     8.0%            -     0.0%        n.a.
Galt & Taggart Securities           NMF      (1,006)    -1.2%        1,617     2.0%       10,434    20.0%         NMF
Asset Management                  19.8%        1,678     2.0%       12,402    15.3%        1,401     2.7%      -86.5%
Insurance                         19.4%        2,600     3.0%        1,801     2.2%        2,177     4.2%       44.4%
Corporate
 Center/Eliminations                NMF        8,034     9.4%      (4,681)    -5.8%      (4,308)    -8.3%         NMF
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Total Operating Income
 (Revenue)                        64.8%       85,921   100.0%       81,094   100.0%       52,152   100.0%        6.0%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------

Total Recurring Operating
 Costs
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Corporate & Investment
 Banking                          36.8%        7,230    14.8%        6,968    15.7%        5,287    18.9%        3.8%
Retail Banking                    73.9%       20,647    42.3%       18,052    40.6%       11,871    42.4%       14.4%
Wealth Management                 26.6%          677     1.4%          656     1.5%          535     1.9%        3.2%
Ukraine                             NMF        7,098    14.5%        7,168      n.a            -     0.0%       -1.0%
Galt & Taggart Securities         79.4%        2,130     4.4%        3,799     8.5%        1,187     4.2%      -43.9%
Asset Management                  11.7%        1,368     2.8%        2,815     6.3%        1,224     4.4%      -51.4%
Insurance                         49.9%        2,616     5.4%        1,812     4.1%        1,745     6.2%       44.3%
Corporate
 Center/Eliminations              15.6%        7,095    14.5%        3,207     7.2%        6,140    21.9%      121.2%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Total Recurring Operating
 Costs                            74.6%       48,861   100.0%       44,478    83.9%       27,988   100.0%        9.9%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------


Net Income
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Corporate & Investment
 Banking                          57.4%       12,383    43.7%       10,498    32.9%        7,866    42.1%       18.0%
Retail Banking                    66.0%       12,819    45.2%       12,936    40.5%        7,722    41.3%       -0.9%
Wealth Management                -50.7%          314     1.1%          670     2.1%          638     3.4%      -53.1%
Ukraine                             NMF          657     2.3%        (697)     n.a.            -     0.0%         NMF
Galt & Taggart Securities           NMF      (2,553)    -9.0%      (1,854)    -5.8%        7,396    39.6%       37.7%
Asset Management                    NMF        3,418    12.1%        8,147    25.5%        (237)    -1.3%      -58.1%
Insurance                        -89.9%           36     0.1%        (371)    -1.2%          360     1.9%         NMF
Corporate
 Center/Eliminations                NMF        1,261     4.5%        2,588     8.1%      (5,056)   -27.1%      -51.3%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Net Income                        51.6%       28,335   100.0%       31,918   102.2%       18,690   100.0%      -11.2%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------

                                                                                                          Growth q-o-
Basic EPS Contribution     Growth y-o-y Contribution    Share Contribution    Share Contribution    Share           q
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Corporate & Investment
 Banking                          28.8%         0.40    44.1%         0.36    32.9%         0.31    42.1%       11.7%
Retail Banking                    35.2%         0.41    45.4%         0.44    40.5%         0.31    41.3%       -6.7%
Wealth Management                -61.3%         0.01     1.1%         0.02     2.1%         0.03     3.4%      -57.3%
Ukraine                             NMF         0.02     2.5%       (0.02)     n.a.            -     0.0%         NMF
Galt & Taggart Securities           NMF       (0.08)    -9.1%       (0.06)    -5.8%         0.29    39.6%       30.8%
Asset Management                    NMF         0.11    11.6%         0.28    25.5%       (0.01)    -1.3%      -62.1%
Insurance                           NMF         0.00     0.2%       (0.01)    -1.2%         0.01     1.9%         NMF
Corporate
 Center/Eliminations                NMF         0.04     4.3%         0.09     8.1%       (0.20)   -27.1%      -55.6%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
Total                             23.0%         0.91   100.0%         1.09   102.2%         0.74   100.0%      -16.7%
-------------------------- ------------ ------------ -------- ------------ -------- ------------ -------- -----------
*T

                             SEGMENT RESULTS CONT'D

-0-
*T
Total Assets                   Growth y-o-y      1H 2008    Share      1H 2007    Share
----------------------------- ------------- ------------ -------- ------------ --------
Corporate & Investment
 Banking                              49.8%    1,451,055    42.7%      968,859    50.5%
Retail Banking                       103.8%    1,509,137    44.4%      740,564    38.6%
Wealth Management                     27.1%       70,060     2.1%       55,125     2.9%
Ukraine                                 NMF      360,276    10.6%         n.a.      NMF
Galt & Taggart Securities            100.3%      105,627     3.1%       52,722     2.7%
Asset Management                     120.9%      117,629     3.5%       53,239     2.8%
Insurance                             60.9%       71,084     2.1%       44,189     2.3%
Corporate Center/Eliminations           NMF    (284,160)    -8.4%        3,135     0.2%
----------------------------- ------------- ------------ -------- ------------ --------
Total Assets                          77.3%    3,400,708   100.0%    1,917,833   100.0%
----------------------------- ------------- ------------ -------- ------------ --------

Loans to Clients, Gross
----------------------------- ------------- ------------ -------- ------------ --------
Corporate & Investment
 Banking                              54.3%      880,574    41.8%      570,618    53.9%
Retail Banking                       110.0%      921,933    43.8%      439,112    41.5%
Wealth Management                     30.3%       42,627     2.0%       32,712     3.1%
Ukraine                                 NMF      265,360    12.6%         n.a.     n.a.
Galt & Taggart Securities               NMF            -     0.0%            -     0.0%
Asset Management                        NMF            -     0.0%            -     0.0%
Insurance                               NMF            -     0.0%            -        -
Corporate Center/Eliminations           NMF      (3,750)    -0.2%       16,756     1.6%
----------------------------- ------------- ------------ -------- ------------ --------
Total Loans to Clients                98.9%    2,106,744   100.0%    1,059,197   100.0%
----------------------------- ------------- ------------ -------- ------------ --------

Total Liabilities
----------------------------- ------------- ------------ -------- ------------ --------
Corporate & Investment
 Banking                              47.4%    1,159,402    44.3%      786,613    52.0%
Retail Banking                        80.3%      899,135    34.3%      498,748    32.9%
Wealth Management                     42.6%      104,433     4.0%       73,233     4.8%
Ukraine                                 NMF      292,064    11.2%         n.a.     n.a.
Galt & Taggart Securities            166.6%       54,232     2.1%       20,342     1.3%
Asset Management                      21.4%       34,878     1.3%       28,734     1.9%
Insurance                             29.5%       52,231     2.0%       40,346     2.7%
Corporate Center/Eliminations           NMF       21,284     0.8%       65,810     4.3%
----------------------------- ------------- ------------ -------- ------------ --------
Total Liabilities                     72.9%    2,617,659   100.0%    1,513,826   100.0%
----------------------------- ------------- ------------ -------- ------------ --------

Client Deposits
----------------------------- ------------- ------------ -------- ------------ --------
Corporate Banking                     38.4%      681,546    48.8%      492,580    59.5%
Retail Banking                        47.8%      403,427    28.9%      272,899    33.0%
Wealth Management                     44.5%       81,594     5.8%       56,448     6.8%
Ukraine                                 NMF      180,212    12.9%         n.a.     n.a.
Galt & Taggart Securities            702.7%       48,599     3.5%        6,054     0.7%
Asset Management                        NMF            -     0.0%            -     0.0%
Insurance                               NMF            -     0.0%            -     0.0%
Corporate Center/Eliminations           NMF            -     0.0%            -     0.0%
----------------------------- ------------- ------------ -------- ------------ --------
Total Client Deposits                 68.5%    1,395,376   100.0%      827,981   100.0%
----------------------------- ------------- ------------ -------- ------------ --------

Book Value Per Share           Growth y-o-y Contribution    Share Contribution    Share
----------------------------- ------------- ------------ -------- ------------ --------
Corporate & Investment
 Banking                              29.5%         9.33    37.2%         7.21    45.1%
Retail Banking                       104.2%        19.52    77.9%         9.56    59.9%
Wealth Management                     53.6%        -1.10    -4.4%        -0.72    -4.5%
Ukraine                                 NMF         2.18     8.7%         n.a.     n.a.
Galt & Taggart Securities             28.5%         1.64     6.6%         1.28     8.0%
Asset Management                     173.3%         2.65    10.6%         0.97     6.1%
Insurance                            297.1%         0.60     2.4%         0.15     1.0%
Corporate Center/Eliminations        294.4%        -9.77   -39.0%        -2.48   -15.5%
----------------------------- ------------- ------------ -------- ------------ --------
Book Value Per Share                  56.9%        25.06   100.0%        15.97   100.0%
----------------------------- ------------- ------------ -------- ------------ --------
*T

                          1H 2008 INCOME STATEMENT DATA

-0-
*T
Period Ended                                       1H 2008                   1H 2007            Growth(3)
Consolidated, IFRS Based                          US$(1)        GEL      US$(2)            GEL       Y-O-Y
000s, unless otherwise noted                     (Unaudited)               (Unaudited)
 Interest Income                                 138,770    196,777         59,377      99,130       98.5%
 Interest Expense                                 64,300     91,177         25,267      42,183      116.1%
Net Interest Income                               74,471    105,599         34,110      56,946       85.4%
 Fee & Commission Income                          17,088     24,230          7,834      13,079       85.3%
 Fee & Commission Expense                          2,744      3,890            932       1,555      150.2%
Net Fee & Commission Income                       14,344     20,340          6,903      11,524       76.5%
 Income From Documentary Operations                2,988      4,237          1,807       3,016       40.5%
 Expense On Documentary Operations                   647        917            601       1,003       -8.6%
Net Income From Documentary Operations             2,341      3,320          1,206       2,013       64.9%
Net Foreign Currency Related Income               16,665     23,631          6,197      10,346      128.4%
 Net Insurance Income                              2,379      3,373          2,110       3,523       -4.2%
 Brokerage Income                                  2,003      2,841            911       1,521       86.7%
 Asset Management Income                             629        892              -           -         NMF
 Realized Net Investment Gains (Losses)            (528)      (748)          1,840       3,072     -124.4%
 Other                                             5,477      7,767          2,552       4,261       82.3%
Net Other Non-Interest Income                      9,961     14,125          7,414      12,377       14.1%
Net Non-Interest Income                           43,312     61,416         21,719      36,261       69.4%
Total Operating Income (Revenue)                 117,782    167,016         55,829      93,207       79.2%
 Personnel Costs                                  37,369     52,989         18,195      30,377       74.4%
 Selling, General & Administrative Costs          16,435     23,305          5,934       9,906      135.3%
 Procurement & Operations Support
  Expenses                                         4,475      6,346          2,693       4,496       41.1%
 Depreciation & Amortization                       6,131      8,694          2,540       4,241      105.0%
 Other Operating Expenses                          1,415      2,006            518         866      131.8%
Total Recurring Operating Costs                   65,825     93,339         29,880      49,885       87.1%
Normalized Net Operating Income                   51,958     73,676         25,949      43,322       70.1%
Net Non-Recurring Income (Costs)                   8,365     11,862          1,157       1,932      513.9%
Profit Before Provisions                          60,323     85,538         27,106      45,254       89.0%
Net Provision Expense                             10,328     14,645          2,877       4,803      204.9%
Pre-Tax Income                                    49,995     70,893         24,230      40,452       75.3%
 Income Tax Expenses                               7,504     10,640          4,851       8,099       31.4%
Net Income                                        42,491     60,253         19,379      32,352       86.2%

Weighted Average Number of Shares
 Outstanding (000s)                                          30,106                     25,258       19.2%
Fully Diluted Number of Shares Period End
 (000s)                                                      31,248                     27,248       14.7%
EPS (Basic)                                         1.41       2.00           0.77        1.28       56.3%
EPS (Fully Diluted)                                 1.36       1.93           0.71        1.19       62.4%
*T

(1 )Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4180 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2008

(2) Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.6695 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2007

(3)Growth calculations based on GEL values

(4) Not meaningful

                          Q2 2008 INCOME STATEMENT DATA

-0-
*T
Period Ended                             Q2 2008               Q1 2008        Growth(3)      Q2 2007       Growth
Consolidated, IFRS Based              US$(1)        GEL        US$(2)     GEL   Q-O-Q    US$(4)    GEL        Y-O-Y
000s, unless otherwise noted           (Unaudited)              (Unaudited)
 Interest Income                      73,481    104,196     62,724     92,580     12.5%   33,589   56,076     85.8%
 Interest Expense                     34,106     48,362     29,007     42,815     13.0%   15,080   25,175     92.1%
Net Interest Income                   39,375     55,834     33,716     49,765     12.2%   18,509   30,901     80.7%
 Fee & Commission Income               8,787     12,460      7,975     11,771      5.9%    3,990    6,661     87.1%
 Fee & Commission Expense              1,619      2,296      1,080      1,594     44.1%      636    1,063    116.1%
Net Fee & Commission Income            7,167     10,163      6,895     10,177     -0.1%    3,353    5,598     81.5%
 Income From Documentary
  Operations                           1,615      2,290      1,319      1,947     17.6%    1,105    1,845     24.1%
 Expense On Documentary Operations       294        417        339        500    -16.6%      301      503    -17.1%
Net Income From Documentary
 Operations                            1,321      1,873        980      1,447     29.4%      804    1,342     39.6%
Net Foreign Currency Related
 Income                                7,338     10,405      8,961     13,226    -21.3%    3,636    6,071     71.4%
 Net Insurance Income                  1,224      1,736      1,109      1,638      6.0%      859    1,434     21.0%
 Brokerage Income                      1,104      1,566        864      1,275     22.9%      306      512    206.1%
 Asset Management Income                 174        246        438        646    -61.9%        -        -    NMF(5)
 Realized Net Investment Gains
  (Losses)                              -265      (375)       -253      (373)      0.7%    1,797    3,000   -112.5%
 Other                                 3,154      4,472      2,232      3,294     35.8%    1,973    3,294     35.8%
Net Other Non-Interest Income          5,392      7,645      4,390      6,480     18.0%    4,936    8,240     -7.2%
Net Non-Interest Income               21,218     30,087     21,226     31,329     -4.0%   12,729   21,251     41.6%
Total Operating Income (Revenue)      60,593     85,921     54,942     81,094      6.0%   31,238   52,152     64.8%
 Personnel Costs                      19,224     27,260     17,432     25,729      6.0%   10,471   17,481     55.9%
 Selling, General & Administrative
  Costs                                8,463     12,001      7,659     11,304      6.2%    3,293    5,497    118.3%
 Procurement & Operations Support
  Expenses                             2,286      3,242      2,103      3,104      4.5%    1,393    2,326     39.4%
 Depreciation & Amortization           3,289      4,664      2,730      4,029     15.8%    1,363    2,276    105.0%
 Other Operating Expenses              1,195      1,695        211        312    443.9%      245      408    314.9%
Total Recurring Operating Costs       34,458     48,862     30,134     44,478      9.9%   16,765   27,988     74.6%
Normalized Net Operating Income       26,135     37,059     24,808     36,617      1.2%   14,473   24,163     53.4%
Net Non-Recurring Income (Costs)       2,393      3,394      5,737      8,468    -59.9%    1,180    1,969     72.3%
Profit Before Provisions              28,528     40,453     30,545     45,085    -10.3%   15,653   26,133     54.8%
Net Provision Expense                  5,073      7,194      5,048      7,451     -3.4%    1,669    2,786    158.2%
Pre-Tax Income                        23,455     33,259     25,497     37,634    -11.6%   13,984   23,347     42.5%
 Income Tax Expenses                   3,473      4,924      3,873      5,716    -13.8%    2,790    4,658      5.7%
Net Income                            19,982     28,335     21,625     31,918    -11.2%   11,194   18,689     51.6%

Weighted Average Number of Shares
 Outstanding (000s)                              31,247                29,237      6.9%            25,289     23.6%
Fully Diluted Number of Shares Period
 End (000s)                                      31,248                31,244     0.01%            27,248     14.7%
EPS (Basic)                             0.64       0.91       0.74       1.09    -16.9%     0.44     0.74     22.7%
EPS (Fully Diluted)                     0.64       0.91       0.69       1.02    -11.2%     0.44     0.74     22.8%
*T

(1 )Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4180 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2008

(2 )Converted to U.S. dollars for convenience using a period-end exchange rate
of GEL 1.4760 per US$1.00, 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

(3) Growth calculations based on GEL values

(4)Converted to U.S. dollars for convenience using a period-end exchange rate of
GEL 1.6695 per U$S1.00, such rate being the official Georgian Lari to U.S.
dollar period-end exchange rate as reported by the National Bank of Georgia as
at 30 June 2007

(5) Not meaningful

                               BALANCE SHEET DATA

-0-
*T
                                    30-Jun-08       Growth(2)      31-Dec-07       Growth(2)      30-Jun-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          110,338    156,460    -57.7%   232,642    370,273     61.4%    58,054     96,922
Loans & Advances To Credit
 Institutions                    271,852    385,487    102.8%   119,413    190,057     54.4%   149,545    249,666
 Mandatory Reserve With
  NBG/NBU                         66,263     93,962    -35.0%    90,872    144,631     43.4%    39,254     65,534
 Other Accounts With NBG/NBU      65,179     92,424    160.4%    22,303     35,497     20.2%    46,073     76,918
 Balances With & Loans To
  Other Banks                    140,410    199,102   1905.3%     6,238      9,929     85.7%    64,219    107,214
Available-For-Sale Securities     58,357     82,750     69.8%    30,616     48,729   1067.9%     4,244      7,085
Treasuries & Equivalents          12,689     17,993    -77.4%    50,111     79,757    -68.6%    34,288     57,244
Other Fixed Income Instruments    61,860     87,717    -22.2%    70,814    112,708    -62.6%   140,610    234,748
 Gross Loans To Clients        1,485,715  2,106,744     20.2% 1,100,842  1,752,100     98.9%   634,440  1,059,197
 Less: Reserve For Loan Losses  (31,289)   (44,368)     49.2%   -18,689    -29,745     91.5%  (13,878)   (23,170)
Net Loans To Clients           1,454,426  2,062,376     19.7% 1,082,153  1,722,355     99.1%   620,561  1,036,027
Investments In Other Business
 Entities, Net                   103,516    146,786    264.5%    25,303     40,273    516.8%    14,255     23,799
Property & Equipment Owned,
 Net                             183,888    260,752     27.4%   128,585    204,656    119.7%    71,093    118,690
Intangible Assets Owned, Net       5,618      7,967    111.2%     2,370      3,772    168.2%     1,779      2,970
Goodwill                          78,842    111,798     -0.4%    70,505    112,216    158.8%    25,880     43,206
Tax Assets - Current &
 Deferred                            752      1,066    -31.5%       978      1,557    -80.9%     1,273      2,125
Prepayments & Other Assets        56,106     79,559     18.3%    42,258     67,258     76.9%    27,164     45,350
Total Assets                   2,398,242  3,400,708     15.1% 1,855,750  2,953,611     77.3% 1,148,747  1,917,832

Client Deposits                  984,045  1,395,376      2.9%   851,644  1,355,476     68.5%   495,945    827,981
Deposits & Loans From Banks       88,125    124,962     89.9%    41,349     65,811    129.2%    32,651     54,510
Borrowed Funds                   637,266    903,644      8.1%   525,248    835,984     73.0%   312,803    522,225
Issued Fixed Income Securities     3,333      4,726     -5.3%     3,137      4,993    258.4%       790      1,319
Insurance Related Liabilities     33,950     48,141     16.5%    25,968     41,330     89.0%    15,261     25,478
Tax Liabilities - Current &
 Deferred                         27,390     38,840      4.4%    23,378     37,209    203.1%     7,837     13,084
Accruals & Other Liabilities      71,912    101,971     86.0%    34,441     54,817     47.4%    41,466     69,228
Total Liabilities              1,846,022  2,617,659      9.3% 1,505,165  2,395,620     73.0%   906,753  1,513,825

Ordinary Shares                   22,036     31,248     15.1%    17,061     27,155     23.5%    15,157     25,304
Share Premium                    319,040    452,399     43.4%   198,175    315,415     81.3%   149,460    249,523
Treasury Shares                    (882)    (1,251)    -28.0%   (1,091)    (1,737)      2.4%     (732)    (1,222)
Retained Earnings                 96,017    136,152    113.2%    40,122     63,858    117.2%    37,541     62,675
Revaluation & Other Reserves      43,619     61,852     -8.2%    42,318     67,354     96.8%    17,120     28,582
Net Income For The Period         42,491     60,253    -20.3%    47,526     75,642    100.8%    19,379     32,352
Shareholders' Equity Excluding
 Minority Interest               522,322    740,653     35.2%   344,111    547,687     86.2%   237,924    397,214
Minority Interest                 29,899     42,396    311.5%     6,474     10,304    524.1%     4,069      6,793
Total Shareholders' Equity       552,221    783,049     40.3%   350,585    557,991     93.6%   241,993    404,007
Total Liabilities &
 Shareholders' Equity          2,398,243  3,400,708     15.1% 1,855,750  2,953,611     77.3% 1,148,746  1,917,832

Shares Outstanding                       31,247,511                     27,154,918                     25,304,087
Book Value Per Share               17.67      25.06     21.4%     12.95      20.62     56.8%      9.56      15.97
*T

(1) Converted to U.S. dollars for the convenience using a period-end exchange
rate of GEL 1.4180 per US$1.00, such exchange rate being the official Georgian
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 30 June 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 1.6695 per US$1.00, such exchange rate being the official Georgia
Lari to U.S. dollar period-end exchange rate as reported by the National Bank of
Georgia on 30 March 2007

                                   KEY RATIOS

-0-
*T
                                                                                  1H 2008   1H 2007
Profitability Ratios
------------------------------------------------------------------------------- --------- ---------
ROAA( 1), Annualised                                                                 3.8%      3.9%
------------------------------------------------------------------------------- --------- ---------
ROA                                                                                  3.5%      3.4%
------------------------------------------------------------------------------- --------- ---------
ROAE(2), Annualised                                                                 17.3%     16.6%
------------------------------------------------------------------------------- --------- ---------
ROE                                                                                 15.4%     16.0%
------------------------------------------------------------------------------- --------- ---------
Interest Income To Average Interest Earning Assets (3), Annualised                  16.3%     14.6%
------------------------------------------------------------------------------- --------- ---------
Cost Of Funds (4), Annualised                                                        8.0%      7.2%
------------------------------------------------------------------------------- --------- ---------
Net Spread (5)                                                                       8.3%      7.5%
------------------------------------------------------------------------------- --------- ---------
Net Interest Margin (6), Annualised                                                  8.7%      8.4%
------------------------------------------------------------------------------- --------- ---------
Net Interest Margin Normalized (35), Annualised                                      8.7%      8.4%
------------------------------------------------------------------------------- --------- ---------
Loan Yield (7), Annualised                                                          19.2%     21.0%
------------------------------------------------------------------------------- --------- ---------
Interest Expense To Interest Income                                                 46.3%     42.6%
------------------------------------------------------------------------------- --------- ---------
Net Non-Interest Income To Average Total Assets, Annualised                          3.9%      4.4%
------------------------------------------------------------------------------- --------- ---------
Net Non-Interest Income To Revenue (8)                                              36.8%     38.9%
------------------------------------------------------------------------------- --------- ---------
Net Fee And Commission Income To Average Interest Earning Assets (9),
 Annualised                                                                          1.7%      1.7%
------------------------------------------------------------------------------- --------- ---------
Net Fee And Commission Income To Revenue                                            12.2%     12.4%
------------------------------------------------------------------------------- --------- ---------
Operating Leverage (10)                                                              9.3%     13.9%
------------------------------------------------------------------------------- --------- ---------
Total Operating Income (Revenue) To Total Assets, Annualised                         9.8%      9.7%
------------------------------------------------------------------------------- --------- ---------
Recurring Earning Power (11), Annualised                                             5.4%      7.0%
------------------------------------------------------------------------------- --------- ---------
Net Income To Revenue                                                               36.1%     34.7%
------------------------------------------------------------------------------- --------- ---------

Efficiency Ratios
------------------------------------------------------------------------------- --------- ---------
Operating Cost To Average Total Assets (12), Annualised                              5.9%      4.5%
------------------------------------------------------------------------------- --------- ---------
Cost To Average Total Assets (13), Annualised                                        5.1%      5.8%
------------------------------------------------------------------------------- --------- ---------
Cost / Income (14)                                                                  48.8%     51.4%
------------------------------------------------------------------------------- --------- ---------
Cost / Income, Normalized (37)                                                      55.9%     53.5%
------------------------------------------------------------------------------- --------- ---------
Cost/Income Distributed Non-Recurring                                               53.0%     51.5%
------------------------------------------------------------------------------- --------- ---------
Cost / Income, Bank of Georgia, Standalone (15)                                     43.0%     48.3%
------------------------------------------------------------------------------- --------- ---------
Cost/Income, Normalized, Bank of Georgia, Standalone                                43.7%     50.7%
------------------------------------------------------------------------------- --------- ---------
Cash Cost / Income                                                                  43.6%     46.9%
------------------------------------------------------------------------------- --------- ---------
Total Employee Compensation Expense To Revenue (16)                                 31.7%     32.6%
------------------------------------------------------------------------------- --------- ---------
Total Employee Compensation Expense To Cost                                         65.0%     63.3%
------------------------------------------------------------------------------- --------- ---------
Total Employee Compensation Expense To Average Total Assets, Annualised              3.3%      3.7%
------------------------------------------------------------------------------- --------- ---------

Liquidity Ratios
------------------------------------------------------------------------------- --------- ---------
Net Loans To Total Assets (17)                                                      60.6%     54.0%
------------------------------------------------------------------------------- --------- ---------
Average Net Loans To Average Total Assets                                           58.4%     52.7%
------------------------------------------------------------------------------- --------- ---------
Interest Earning Assets To Total Assets                                             75.1%     82.3%
------------------------------------------------------------------------------- --------- ---------
Average Interest Earning Assets To Average Total Assets                             76.0%     81.6%
------------------------------------------------------------------------------- ---------
Liquid Assets To Total Assets (18)                                                  18.7%     30.2%
------------------------------------------------------------------------------- --------- ---------
Net Loans To Client Deposits                                                       147.8%    125.1%
------------------------------------------------------------------------------- --------- ---------
Average Net Loans To Average Client Deposits                                       136.2%    129.7%
------------------------------------------------------------------------------- --------- ---------
Net Loans To Total Deposits (19)                                                   135.7%    117.4%
------------------------------------------------------------------------------- --------- ---------
Net Loans To Total Liabilities                                                      78.8%     68.4%
------------------------------------------------------------------------------- --------- ---------
Total Deposits To Total Liabilities                                                 58.1%     58.3%
------------------------------------------------------------------------------- --------- ---------
Client Deposits To Total Deposits                                                   91.8%     93.8%
------------------------------------------------------------------------------- --------- ---------
Client Deposits To Total Liabilities                                                53.3%     54.7%
------------------------------------------------------------------------------- --------- ---------
Current Account Balances To Client Deposits                                         39.3%     56.4%
------------------------------------------------------------------------------- --------- ---------
Demand Deposits To Client Deposits                                                   5.5%     10.0%
------------------------------------------------------------------------------- --------- ---------
Time Deposits To Client Deposits                                                    55.2%     33.7%
------------------------------------------------------------------------------- --------- ---------
Total Deposits To Total Assets                                                      44.7%     46.0%
------------------------------------------------------------------------------- --------- ---------
Client Deposits To Total Assets                                                     41.0%     43.2%
------------------------------------------------------------------------------- --------- ---------
Client Deposits To Total Equity (Times) (20)                                         1.78      2.05
------------------------------------------------------------------------------- --------- ---------
Due From Banks / Due To Banks (21)                                                 308.5%    458.0%
------------------------------------------------------------------------------- --------- ---------
Total Equity To Net Loans                                                           38.0%     39.0%
------------------------------------------------------------------------------- --------- ---------
Leverage (Times) (22)                                                                 3.3       3.7
------------------------------------------------------------------------------- --------- ---------
*T

                                KEY RATIOS CONT'D

-0-
*T
                                                                                   1H 2008     1H 2007
Asset Quality
------------------------------------------------------------------------------ ----------- -----------
NPLs (in GEL) (23)                                                                  32,086      18,012
------------------------------------------------------------------------------ ----------- -----------
NPLs To Gross Loans To Clients (24)                                                   1.5%        1.7%
------------------------------------------------------------------------------ ----------- -----------
Cost of Risk (25), Annualized                                                         1.5%        1.1%
------------------------------------------------------------------------------ ----------- -----------
Cost of Risk Normalized (36), Annualized                                              1.5%        1.1%
------------------------------------------------------------------------------ ----------- -----------
Reserve For Loan Losses To Gross Loans To Clients (26)                                2.1%        2.2%
------------------------------------------------------------------------------ ----------- -----------
NPL Coverage Ratio (27)                                                             138.3%      128.6%
------------------------------------------------------------------------------ ----------- -----------
Equity To Average Net Loans To Clients                                               42.2%       46.1%
------------------------------------------------------------------------------ ----------- -----------

Capital Adequacy
------------------------------------------------------------------------------ ----------- -----------
Equity To Total Assets                                                               23.0%       21.1%
------------------------------------------------------------------------------ ----------- -----------
BIS Tier I Capital Adequacy Ratio, consolidated (28)                                 25.0%       24.7%
------------------------------------------------------------------------------ ----------- -----------
BIS Total Capital Adequacy Ratio, consolidated (29)                                  25.8%       24.5%
------------------------------------------------------------------------------ ----------- -----------
NBG Tier I Capital Adequacy Ratio (30)                                               15.8%       15.8%
------------------------------------------------------------------------------ ----------- -----------
NBG Total Capital Adequacy Ratio (31)                                                15.1%       19.2%
------------------------------------------------------------------------------ ----------- -----------

Per Share Values
------------------------------------------------------------------------------ ----------- -----------
Basic EPS (GEL) (32)                                                                  2.00        1.28
------------------------------------------------------------------------------ ----------- -----------
Basic EPS (US$)                                                                       1.41        0.77
------------------------------------------------------------------------------ ----------- -----------
Fully Diluted EPS (GEL) (33)                                                          1.93        1.19
------------------------------------------------------------------------------ ----------- -----------
Fully Diluted EPS (US$)                                                               1.36        0.71
------------------------------------------------------------------------------ ----------- -----------
Book Value Per Share (GEL) (34)                                                      25.06       15.97
------------------------------------------------------------------------------ ----------- -----------
Book Value Per Share (US$)                                                           17.67        9.56
------------------------------------------------------------------------------ ----------- -----------
Ordinary Shares Outstanding - Weighted Average, Basic                           30,106,091  25,258,491
------------------------------------------------------------------------------ ----------- -----------
Ordinary Shares Outstanding - Period End                                        31,247,511  25,304,087
------------------------------------------------------------------------------ ----------- -----------
Ordinary Shares Outstanding - Fully Diluted                                     31,247,511  27,248,162
------------------------------------------------------------------------------ ----------- -----------

Selected Operating Data
------------------------------------------------------------------------------ ----------- -----------
Full Time Employees (FTEs)                                                           5,909       2,796
------------------------------------------------------------------------------ ----------- -----------
FTEs, Bank of Georgia Standalone                                                     3,619       2,103
------------------------------------------------------------------------------ ----------- -----------
Total assets per FTE (23 )(GEL Thousands)                                              576         686
------------------------------------------------------------------------------ ----------- -----------
Total Assets per FTE, Bank of Georgia Standalone (GEL Thousands)                       940         912
------------------------------------------------------------------------------ ----------- -----------
Number Of Active Branches                                                              134         104
------------------------------------------------------------------------------ ----------- -----------
Number Of ATMs                                                                         363         166
------------------------------------------------------------------------------ ----------- -----------
Number Of Cards (Thousands)                                                            847         432
------------------------------------------------------------------------------ ----------- -----------
Number Of POS Terminals                                                              2,452         616
------------------------------------------------------------------------------ ----------- -----------
*T

                               NOTES TO KEY RATIOS

-0-
*T
      Return On Average Total Assets (ROAA) equals Net Income of the period divided by quarterly
    1  Average Total Assets for the same period;
      Return On Average Total Equity (ROAE) equals Net Income of the period divided by quarterly
    2  Average Total Equity for the same period;
      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
    3  Income Instruments and Net Loans to Clients;
      Cost Of Funds equals Interest Expense of the period divided by quarterly Average Interest
       Bearing Liabilities; Interest Bearing Liabilities Include: Client Deposits, Deposits And
    4  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;
      Net Interest Margin equals Net Interest Income of the period divided by quarterly Average
    6  Interest Earning Assets of the same period;
      Loan Yield equals Interest Income, less Net Provision Expense, divided by quarterly Average
    7  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;
      Recurring Earning Power equals Profit Before Provisions of the period divided by average
   11  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);
      Cost/ Income, Bank of Georgia, standalone, equals non-consolidated Total Costs of the bank of
   15  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;
      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
   18  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;
      Due From Banks/ Due To Banks equals Loans And Advances To Credit Institutions divided by
   21  Deposits And Loans From Banks;
      Leverage (Times) equals Total Liabilities as of the period end divided by Total Equity as of
   22  the same date;
      NPLs (in GEL) equals total gross non-performing loans as of the period end; non-performing
   23  loans are loans that have debts in arrears for more than 90 calendar days;
   24 Gross Loans equals Gross Loans To Clients;
      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
   25 Clients over the same period;
      Reserve For Loan Losses To Gross Loans To Clients equals reserve for loan losses as of the
   26  period end divided by gross loans to clients as of the same date;
      NPL Coverage Ratio equals Reserve For Loan losses as of the period end divided by NPLs as of
   27  the same date;
      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
   28  requirements of Basel Accord I;
      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
   29  requirements of Basel Accord I;
      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
   30  requirements the National Bank of Georgia;
      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
   31  requirements of the National Bank of Georgia;
      Basic EPS equals Net Income of the period divided by the weighted average number of
   32  outstanding ordinary shares over the same period;
      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
   33  liabilities;
      Book Value Per Share equals Equity as of the period end, plus Treasury Shares, divided by the
   34  total number of Outstanding Ordinary shares as of the same date.
      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
   35  Average Interest Earning Assets of the same period;
      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
   36  Loans To Clients over the same period;
      Cost / Income Normalized equals Recurring Operating Costs divided by Total Operating Income
   37  (Revenue) for the same period
*T