Georgian Banking Sector Overview

2017 1st Quarter Results

June, 2017 Contents

Page 2 Basis of Preparation At a Glance 3

Sector Highlights 4

General Highlights 5

Bank Profiles 6

Appendix 1: Shareholding Structure & General Information 23

Appendix 2: Sector Insights 26

Appendix 3: Key Financial Indicators 28

Appendix 4: Bank Contact Details 32

Glossary of Terms 34

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 2 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Basis of Preparation

This report summarizes and analyzes the financial results of the 17 commercial banks of Georgia for the 1st quarter of 2017, as well as provides some insights into the recent developments in the sector.

The financial information has been obtained from the published interim reports for the 1st quarter of 2017. The banks are listed in the alphabetical order throughout the publication. We have used simple headline numbers in our analysis unless stated otherwise; each bank has its own way of reporting performance and this has proved to be the most consistent method of presenting their results.

All the key ratios are calculated based on the obtained data unless stated otherwise.

The general information, such as the number of branches, employee headcount, etc., are mainly taken from the Notes to the Financial Statements prepared by the banks. The official websites of the banks serve as the only alternative source, however they are not always properly updated. Due to this, the figures presented may not necessarily be as of 31st March 2017. There may be figures more up to date or of an earlier date depending on the latest available information published by the banks.

The main source of news is the official websites of the banks and the National Bank of Georgia, as well as the official press releases published by various news agencies.

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. At a Glance

The banking system remains the biggest part of the Georgian financial market. As of 31 March 2017, there were 17 commercial banks operating in Georgia, while the number of banks was 18 in the same period of 2016. Key Financial Indicators of the Georgian Banking Sector (in million GEL)*

Key Financial 31.03.2017/ 31.03.2017/ 2017 Q 1 2016 2016 Q 1 indicators** 31.12.2016 31.03.2016***

Assets 29,751 30,149 24,727 (1.32%) 20.32% Loan portfolio 18,886 18,934 16,027 (0.26%) 17.84% Liabilities 25,443 26,171 21,178 (2.78%) 20.14% Deposits**** 16,069 16,991 14,271 (5.43%) 12.60% Total Equity 4,308 3,978 3,549 8.29% 21.39% Share Capital 957 953 998 0.41% (4.04%) Total Income***** 742 2,705 647 - 14.69% Interest income 647 2,366 582 - 11.14% Provision Expenses -3 338 117 - (102.67%) Net profit after taxes 258 679 110 - 134.59%

* The difference between the table and other information provided in the report might be caused by the different bases of preparation of financial information by the National Bank of Georgia. ** The indicators of the financial position are as of the last day of the corresponding period *** The change for the financial performance indicators is for the periods of the first 3 months of the years **** The figure does not contain bank deposits ***** The total income consists of interest income and fee and commission income

Non-performing loan rates for the Georgian banking sector

8.00% 7.77% 7.80% 7.60% 7.40% 7.20% 6.95% 7.00% 6.80% 6.60% 6.40% 2017 Q1 2016 Q1 Top Ten Banks of the Georgian Banking Sector as of 31 March 2017 (in thousand GEL)****** 12,000,000 450,000 400,000 10,000,000 350,000 8,000,000 300,000 250,000 6,000,000 200,000 4,000,000 150,000 100,000 2,000,000 50,000 0 0

Assets Loans Total Equity Total Income (right axis)* Net profit after taxes (right axis)

****** TBC has acquired Bank Republic; merger was completed in May 2017

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 4 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. General highlights ▪ On January 17 de-dollarization program was implemented together by Government and National Bank. Individuals who had real estate bank loans in foreign currency had a chance to convert it into national currency. Following this, loans of $75 million were converted to GEL by the end of March.

▪ At the end of February Government decided to return Finance Sector Supervision functions to National Bank of Georgia (NBG).

▪ In March, 2017 Georgian government with support of World Bank has approved legislative amendments for introduction of deposits obligatory insurance system. The law is planned to be adopted this year and will come into force on January 1, 2018.

▪ In March NBG issued a banking license to JSC Credo Bank, which has been operating on Georgian market since 2007 as a microfinance organization.

▪ In March Netherlands Development Finance Company (FMO) has sold its own shares in TBC Holding. Institutional investors of UK, USA and Europe have bought the shares under accelerated deal managed by Barclays and Renaissance Capital.

▪ By the end of March the accounts of Bank Republic clients had been tied to TBC Bank and Bank Republic cards were replaced by TBC Bank cards. Merger has successfully finished in May.

▪ In March Minimum Capital Requirement for banking license applicant was increased up to GEL 50 mln, in turn, for the banks licensed by NBG before coming into effect of official order, supervisory capital should be not less than GEL 30 million (by December 31, 2017), not less than GEL 40 million (by June 30, 2018), not less than GEL 50 million (by December 31, 2018). To note, Silkroad bank, Finca bank and Ziraat bank will have to grow their capital by the end of 2018.

▪ On May 2 announcement was made that Turkey’s state-run Ziraat Bank will offer services in neighboring Georgia under a new institution called JSC Ziraat Bank Georgia.

▪ On May 15 the official ceremony of signing declaration, concerning founding of Georgian development bank was held in Beijing, China. The declaration was signed by Vice Prime Minister, Dimitri Kumsishvili. The founders of the bank are largest Chinese corporations: „CEFC China Energy Company Limited’’ and the company „Eurasian Invest LLC”.

▪ The Minimum Requirement Of Liquidity Coverage Ratio will be established for the Commercial banks from September. The LCR ratio will be calculated as High Qualified Liquid Assets / Net cash outflow (Net outflow represents difference between cash inflow and cash outflow over a 30-day stress period). The aim of the new limit is to ensure that banks have sufficient high qualified liquid assets to survive the stress period. Sources: Caucasus Business week

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 5 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Sector Highlights

Compared with the same period of 2016, the banking system assets grew by 20.3% and reached GEL 29.75 billion as of 31 March 2017.

20.3% For the 12 months period ended 31 March 2017 the return on assets (ROA)* for the Georgian banking system was 3.0%, while the same Assets indicator amounted to 2.2% in the same period of 2016. ROA 3.04% As of 31 March 2017 Bank of Georgia held the largest part of the total banking sector’s assets, while TBC Bank was the second largest, 17.8% although it is worth mentioning that TBC has acquired Bank Republic, which also held leading position in the list. Loan Loans portfolio/ As of 31 March 2017 the total amount of outstanding loans grew by assets 17.8% compared with the same period of 2016 and reached GEL 18.89 63.5% Loan billion. provision expenses (104.2)% As of 31 March 2017 the ratio of loan portfolio to total assets for the Loan loss Georgian banking system was 63.5%, while the same ratio was around reserve/ 64.8% as of 31 March 2016. loans 5.9% For the end of Q1 2017 the loan provision expenses of the Georgian 12.6% banking sector decreased by 104.2% compared with the same period of Non- the 2016, and amounted to GEL -0.005 billion. From 31 March 2016 to Loan bank 31 March 2017 the ratio of loan loss reserves to total loan portfolio portfolio/ deposits decreased from 6.9% to 5.9%. non-bank deposits 1.2 The balance of non-bank deposits as of 31 March 2017 increased by 14.7% 12.6% compared with the same date of 2016, reaching GEL 16.1 billion.

Total income As of 31 March 2017 the loan portfolio/ non-bank deposit ratio for the ROE Georgian banking system was 1.2. The ratio was lower 1.1 as of 31 21.3% March 2016.

134.6% As of 31 March 2017 the total equity of banks reached GEL 4.31 billion, Net showing 21.4% increase compared to the same figure as of 31 March profit 2016.

For the 12 months period ended 31 March 2017 the return on equity (ROE)* for the Georgian banking system was 21.3%, while ROE for the 21.4% same period of 2016 was 15.7%. The ratio of equity to assets as of the 31 March 2017 was 14.5%, while the same ratio was around 14.4% as of Total 31 March 2016. Equity

For the Q1 of 2017, the banking system had total income (interest income plus fee and commission income) of GEL 0.7 billion, which exceeded the total income for the same period of 2016 by 14.7%. The net profit of the banks for the period was GEL 0.3 billion, which is 134.6% higher compared with the same period of 2016.

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 6 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles Bank of Georgia

Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.2017/ 31.03.2017/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.2016 31.03.2016 Assets 9,811,766 10,765,807 8,292,994 32.98% 1 (8.86%) 18.31% Loan Portfolio 6,051,035 6,629,042 5,181,875 32.04% 1 (8.72%) 16.77% Liabilities 8,722,012 9,499,861 7,375,674 34.28% 1 (8.19%) 18.25% Deposits 5,280,789 5,773,512 4,736,351 32.86% 2 (8.53%) 11.49% Total Equity 1,089,754 1,265,946 917,320 25.30% 2 (13.92%) 18.80% Share Capital 26,053 27,821 26,659 2.72% 11 (6.35%) (2.27%) Total 271,878 1,076,428 231,261 36.65% 1 17.56% Income**** Interest 231,330 908,042 198,256 35.74% 1 16.68% Income Net Profit/ loss 118,359 289,094 26,753 45.91% 1 342.42% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 10,000,000 As of 31.03.2017 300,000 As of 31.03.2017 As of 31.03.2016 As of 31.03.2016 8,000,000 250,000

6,000,000 200,000 150,000 4,000,000 100,000 2,000,000 50,000 0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes

Key Ratios Rankings Non Performing 1st rank by the assets 8.21% Loans/Total Loans 1st rank by the loan portfolio st ROE 43.82% 1 rank by the liabilities 2nd rank by the deposits ROA 4.77% 2nd rank by the equity 1st rank by the net profit after tax Net Interest Margin 5.36% 1st rank by the total income 1st rank by the interest income Tier 1 9.47% 11th rank by the share capital Capital Adequacy 15.25%

Liquidity 22.81%

Equity to Assets 11.11%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 7 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Bank Republic

Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 1,945,332 2,058,677 1,654,097 6.54% 3 (5.51%) 17.61% Loan Portfolio 1,428,590 1,447,571 1,219,492 7.56% 3 (1.31%) 17.15% Liabilities 1,647,490 1,750,174 1,409,512 6.48% 3 (5.87%) 16.88% Deposits 675,248 813,821 743,987 4.20% 5 (17.03%) (9.24%) Total Equity 297,842 305,913 244,584 6.91% 3 (3.46%) 21.77% Share Capital 76,031 76,031 76,031 7.94% 6 (0.00%) 0.00% Total 48,802 193,905 47,532 6.58% 4 2.67% Income**** Interest 41,478 175,923 40,223 6.41% 4 3.12% Income Net Profit/ loss 21,650 65,057 13,113 8.40% 3 65.10% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands

3,000,000 As of 31.03.2017 100,000 As of 31.03.2017 As of 31.03.2016 As of 31.03.2016 2,500,000 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000 500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings Non Performing 2.68% Loans/Total Loans Among the top ten banks by all financial indicators, except ROE 29.91% share capital

ROA 4.50%

Net Interest Margin 4.77%

Tier 1 10.96%

Capital Adequacy 13.96%

Liquidity 15.84%

Equity to Assets 15.31%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 8 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Basis Bank

Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 905,578 940,157 724,041 3.04% 8 (3.68%) 25.07% Loan Portfolio 592,855 609,111 450,751 3.14% 8 (2.67%) 31.53% Liabilities 732,540 754,388 568,537 2.88% 8 (2.90%) 28.85% Deposits 552,246 562,270 440,807 3.44% 8 (1.78%) 25.28% Total Equity 173,038 185,769 155,504 4.02% 7 (6.85%) 11.28% Share Capital 16,057 16,057 16,013 1.68% 15 0.00% 0.28% Total 19,134 70,107 17,375 2.58% 9 10.13% Income**** Interest 17,782 65,953 16,331 2.75% 9 8.89% Income Net Profit/ loss 7,984 25,466 7,078 3.10% 9 12.80% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 3,000,000 100,000 As of 31.03.2017 As of 31.03.2017 2,500,000 As of 31.03.2016 80,000 As of 31.03.2016 2,000,000 60,000 1,500,000 40,000 1,000,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing 3.75% Loans/Total Loans Among the top ten banks by all financial indicators, except share capital ROE 18.63%

ROA 3.53%

Net Interest Margin 4.78%

Tier 1 17.14%

Capital Adequacy 18.73%

Liquidity 30.47%

Equity to Assets 19.11%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Asian Development Bank has allocated credit line to Basis Bank in order to support trade development January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 9 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Cartu Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 1,179,169 1,420,363 1,205,163 3.96% 7 (1.14%) (2.16%) Loan Portfolio 834,862 937,005 904,980 4.42% 6 1.24% (7.75%) Liabilities 981,514 1,142,170 981,155 3.86% 7 7.11% 0.04% Deposits 627,908 747,610 620,893 3.91% 7 5.01% 1.13% Total Equity 197,655 278,193 224,008 4.59% 4 (28.49%) (11.76%) Share Capital 114,430 114,430 114,430 11.95% 3 0.00% 0.00% Total 22,869 116,311 24,942 3.08% 7 (8.31%) Income**** Interest 21,618 108,902 23,566 3.34% 7 (8.26%) Income Net Profit/ loss 5,394 75,252 6,342 2.09% 8 (14.95%) after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 3,000,000 100,000 As of 31.03.2017 As of 31.03.2017 2,500,000 As of 31.03.2016 As of 31.03.2016 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss Portfolio Equity Capital after Taxes Key Ratios Rankings

Non Performing 3rd rank by the Share Capital 29.29% Loans/Total Loans 4th rank by the Total Equity ROE 11.20% Among the top ten banks by all financial indicators, except ROA 1.77% share capital

Net Interest Margin 4.26%

Tier 1 14.43%

Capital Adequacy 28.33%

Liquidity 28.96%

Equity to Assets 16.76%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 10 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Credo Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 574,633 543,990 N/A 1.93% 10 5.63% N/A Loan Portfolio**** 466,685 443,429 N/A 2.47% 9 6.89% N/A Liabilities 457,622 428,651 N/A 1.80% 10 6.76% N/A Deposits - - N/A 0.00% 17 0.00% N/A Total Equity 117,011 115,339 N/A 2.72% 9 1.45% N/A Share Capital 4,400 4,400 N/A 0.46% 16 0.00% N/A 37,828 145,853 N/A 5.10% 5 N/A Total Income***** 27,100 127,568 N/A 4.19% 6 N/A Interest Income Net Profit/ loss 1,680 26,219 N/A 0.65% 12 N/A after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** 2016 Loan portfolio represents the loans net of provision due to lack of available information ***** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands

3,000,000 As of 31.03.2017 100,000 As of 31.03.2017 2,500,000 80,000 2,000,000 60,000 1,500,000 1,000,000 40,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings Non Performing 3.69% Loans/Total Loans Among the top ten banks by all financial indicators, except Net profit and Share Capital. ROE 5.77%

ROA 1.14%

Net Interest Margin 11.96%

Tier 1 13.75%

Capital Adequacy 14.74%

Liquidity 16.60%

Equity to Assets 20.36%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% JSC Microfinance Organization Credo was granted banking license by NBG and started operating as JSC Credo Bank January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 11 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Finca Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 274,820 277,686 240,347 0.92% 13 (1.03%) 14.34% Loan Portfolio 211,290 206,376 183,549 1.12% 12 2.38% 15.11% Liabilities 240,475 240,157 205,494 0.95% 13 0.13% 17.02% Deposits 94,631 99,614 49,151 0.59% 10 (5.00%) 92.53% Total Equity 34,345 37,530 34,853 0.80% 14 (8.49%) (1.46%) Share Capital 20,214 20,214 20,214 2.11% 14 (0.00%) 0.00% Total 14,655 59,468 14,525 1.98% 11 0.89% Income**** Interest 13,141 59,290 13,109 2.03% 11 0.24% Income Net Profit/ loss 283 676 358 0.11% 15 (20.80%) after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands

3,000,000 100,000 As of 31.03.2017 As of 31.03.2017 2,500,000 As of 31.03.2016 As of 31.03.2016 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing 3.01% Loans/Total Loans 10th rank by Deposits th ROE 0.40% 11 rank by Total Income and Interest Income

ROA 0.06%

Net Interest Margin 14.46%

Tier 1 12.90%

Capital Adequacy 14.20%

Liquidity 27.21%

Equity to Assets 13.28%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 12 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Halyk Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 342,427 376,357 265,653 1.15% 11 (9.02%) 28.90% Loan Portfolio 254,014 278,954 208,409 1.34% 11 (8.94%) 21.88% Liabilities 287,947 316,944 218,338 1.13% 11 (9.15%) 31.88% Deposits 66,439 80,132 47,993 0.41% 12 (17.09%) 38.43% Total Equity 54,481 59,413 47,314 1.26% 12 (8.30%) 15.15% Share Capital 48,000 48,000 48,000 5.01% 7 0.00% 0.00% Total 9,489 32,580 7,246 1.28% 12 30.96% Income**** Interest 7,635 28,678 6,736 1.18% 12 13.35% Income Net Profit/ loss 3,793 8,897 817 1.47% 9 364.49% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes

Key Ratios Rankings

Non Performing 5.50% Loans/Total Loans 7th rank by the Share Capital 9th rank by Net Profit ROE 28.71%

ROA 4.21%

Net Interest Margin 6.21%

Tier 1 10.72%

Capital Adequacy 17.99%

Liquidity 22.96%

Equity to Assets 15.91%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 13 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) International Bank of Azerbaijan Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 109,121 138,098 105,193 0.37% 15 (25.77%) 3.73% Loan Portfolio 33,460 70,367 72,174 0.18% 15 (58.55%) (53.64%) Liabilities 69,944 104,755 74,774 0.27% 15 (33.85%) (6.46%) Deposits 40,854 32,296 15,701 0.25% 14 1.97% 160.20% Total Equity 39,178 33,343 30,419 0.91% 13 (5.06%) 28.79% Share Capital 22,688 22,688 22,688 2.37% 12 0.00% 0.00% Total 1,840 10,918 2,649 0.25% 15 (30.56%) Income**** Interest 1,538 9,148 2,237 0.24% 15 (31.23%) Income Net Profit/ loss 1,754 4,943 1,614 0.68% 11 8.65% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** Based on NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands

3,000,000 As of 31.03.2017 100,000 As of 31.03.2017 As of 31.03.2016 As of 31.03.2016 2,500,000 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000 20,000 500,000 0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes

Key Ratios Rankings

Non Performing 11th rank by the Net Profit 17.92% Loans/Total Loans ROE 19.61%

ROA 5.17%

Net Interest Margin 4.02%

Tier 1 56.34%

Capital Adequacy 86.47%

Liquidity 54.11%

Equity to Assets 35.90%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 14 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Isbank Georgia

Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 312,479 276,050 219,681 1.05% 12 46.66% 42.24% Loan Portfolio 190,537 181,677 150,814 1.01% 13 28.71% 26.34% Liabilities 281,728 240,766 187,788 1.11% 12 55.17% 50.03% Deposits 88,695 65,100 63,680 0.55% 11 61.22% 39.28% Total Equity 30,751 35,284 31,894 0.71% 15 (2.37%) (3.58%) Share Capital 30,000 30,000 30,000 3.13% 9 0.00% 0.00% Total 4,941 17,707 4,075 0.67% 12 21.26% Income**** Interest 4,729 16,373 3,869 0.73% 14 22.23% Income

Net Profit/ loss -298 3,787 1,509 -0.12% 17 (119.78%) after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 100,000 As of 31.03.2017 3,000,000 As of 31.03.2017 As of 31.03.2016 2,500,000 As of 31.03.2016 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000 500,000 20,000 0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes

Key Ratios Rankings

Non Performing Loans/Total 1.67% Loans 9th rank by the Share Capital ROE(3.89%)

ROA (0.38%)

Net Interest Margin 2.44%

Tier 1 19.03%

Capital Adequacy 29.65%

Liquidity 30.12%

Equity to Assets 9.84%

(25.00%) 0.00% 25.00% 50.00% 75.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 15 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Liberty Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 1,613,923 1,613,085 1,531,461 5.42% 4 0.05% 5.38% Loan Portfolio 774,692 704,564 711,394 4.10% 7 9.95% 8.90% Liabilities 1,417,959 1,427,854 1,393,447 5.57% 4 (0.69%) 1.76% Deposits 1,239,678 1,292,053 1,228,100 7.70% 3 (4.05%) 0.94% Total Equity 195,964 185,231 156,362 4.55% 5 5.79% 25.33% Share Capital 43,840 54,233 43,840 4.58% 8 (19.16%) 0.00% Total 80,701 297,746 70,314 7.93% 3 14.77% Income**** Interest 61,665 270,146 57,605 9.19% 3 7.05% Income Net Profit/ loss 9,717 47,714 4,343 3.77% 5 123.76% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 3,000,000 As of 31.03.2017 100,000 As of 31.03.2017 As of 31.03.2016 As of 31.03.2016 2,500,000 80,000 2,000,000 60,000 1,500,000

1,000,000 40,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing 10.29% Loans/Total Loans Among the top ten banks by all financial indicators ROE 20.16%

ROA 2.36%

Net Interest Margin 8.22%

Tier 1 15.25%

Capital Adequacy 23.99%

Liquidity 44.67%

Equity to Assets 12.14%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 16 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Pasha Bank Georgia Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 263,740 282,485 267,679 0.89% 14 (6.64%) (1.47%) Loan Portfolio 108,321 97,210 101,462 0.57% 14 11.43% 6.76% Liabilities 161,111 179,201 171,989 0.63% 14 (10.10%) (6.33%) Deposits 38,320 46,024 58,883 0.24% 15 (16.74%) (34.92%) Total Equity 102,629 103,284 95,689 2.38% 11 (0.63%) 7.25% Share Capital 103,000 103,000 103,000 10.76% 4 0.00% 0.00% Total 4,879 23,906 5,949 0.48% 14 (17.99%) Income**** Interest 4,845 23,320 5,920 0.72% 13 (18.16%) Income Net Profit/ loss 1,424 4,881 1,848 0.55% 13 (22.97%) after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 100,000 3,000,000 As of 31.03.2017 As of 31.03.2017 As of 31.03.2016 As of 31.03.2016 2,500,000 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing 0.06% 4th rank by the Share Capital Loans/Total Loans ROE 5.56%

ROA 2.13%

Net Interest Margin 5.51%

Tier 1 46.78%

Capital Adequacy 48.57%

Liquidity 12.47%

Equity to Assets 38.91%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 17 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Procredit Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 1,265,596 1,394,862 1,169,763 4.25% 6 (9.27%) 8.19% Loan Portfolio 853,633 875,486 889,540 4.52% 5 (0.30%) (4.04%) Liabilities 1,083,211 1,198,729 1,018,322 4.26% 6 (9.64%) 6.37% Deposits 644,948 732,575 620,244 4.01% 6 (11.96%) 3.98% Total Equity 182,384 196,133 151,441 4.23% 6 (7.01%) 20.43% Share Capital 88,915 88,915 88,915 9.29% 5 (0.00%) 0.00% Total 22,496 115,367 28,422 2.21% 8 (20.85%) Income**** Interest 20,001 104,532 25,254 2.98% 8 (20.80%) Income Net Profit/ loss 3,369 24,271 5,089 1.31% 10 (33.80%) after Taxes

* The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands 3,000,000 As of 31.03.2017 100,000 As of 31.03.2017 As of 31.03.2016 2,500,000 80,000 As of 31.03.2016 2,000,000 60,000 1,500,000 40,000 1,000,000 500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes

Key Ratios Rankings Non Performing 4.22% Loans/Total Loans Among the top ten banks by all financial indicators ROE 7.44%

ROA 1.02%

Net Interest Margin 3.52%

Tier 1 13.22%

Capital Adequacy 17.08%

Liquidity 28.10%

Equity to Assets 14.41%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

ProCredit Holding, the owner of ProCredit European Investment Fund and ProCredit Bank Bank, has been listed in Frankfurt stock signed an agreement that will benefit innovative exchange Georgian small and medium-sized enterprises January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 18 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Silk road Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 56,419 79,941 61,000 0.19% 17 (11.87%) (7.51%) Loan Portfolio 6,889 10,056 15,060 0.04% 17 (55.89%) (54.26%) Liabilities 28,632 42,931 31,738 0.11% 17 5.11% (9.79%) Deposits 20,083 32,799 21,476 0.12% 16 (6.03%) (6.49%) Total Equity 27,787 37,010 29,263 0.65% 16 (24.45%) (5.04%) Share Capital 30,000 30,000 30,000 3.13% 10 0.00% 0.00% Total 1,126 3,658 1,099 0.11% 16 2.52% Income**** Interest 894 3,446 997 0.13% 16 (10.26%) Income Net Profit/ loss 15 729 (695) 0.01% 16 (102.20%) after Taxes

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss Portfolio Equity Capital after Taxes

Key Ratios Rankings

Non Performing 28.70% th Loans/Total Loans 10 rank by the Share Capital ROE 0.22%

ROA 0.09%

Net Interest Margin 4.01%

Tier 1 67.72%

Capital Adequacy 67.87%

Liquidity 26.39%

Equity to Assets 49.25%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 19 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) TBC Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 8,899,743 10,761,759 6,365,523 29.91% 2 (17.30%) 39.81% Loan Portfolio 5,717,023 7,358,725 4,495,146 30.27% 2 (22.31%) 27.18% Liabilities 7,419,602 9,189,970 5,243,996 29.16% 2 (19.26%) 41.49% Deposits 5,373,705 6,461,582 3,885,951 33.38% 1 (16.84%) 38.29% Total Equity 1,480,141 1,571,789 1,121,527 34.36% 1 (5.83%) 31.98% Share Capital 21,016 20,617 20,022 2.20% 13 1.93% 4.96% Total 221,063 909,212 188,512 21.71% 2 17.27% Income**** Interest 174,730 766,410 157,172 26.03% 2 11.17% Income Net Profit/ loss 66,517 299,685 36,707 25.80% 2 81.21% after Taxes

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings Non Performing 4.09% Loans/Total Loans 2nd rank by the assets ROE 18.38% 2nd rank by the loan portfolio 2nd rank by the liabilities ROA 2.96% 1st rank by the deposits Net Interest Margin 4.44% 1st rank by the equity 2nd rank by the net profit after tax Tier 1 14.04% 2nd rank by the total income Capital Adequacy 15.09% 2nd rank by the interest income th Liquidity 17.55% 13 rank by the share capital

Equity to Assets 16.63%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

TBC Bank appointed new Chief The Global Finance has named Risk Officer David Chkonia TBC Bank as Georgia’s Best Bank for the tenth time January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 20 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Tera Bank Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 656,779 696,640 683,025 2.21% 9 (0.31%) (3.84%) Loan Portfolio 452,768 466,827 491,297 2.40% 10 3.71% (7.84%) Liabilities 552,815 578,142 579,525 2.17% 9 (0.61%) (4.61%) Deposits 452,028 520,602 484,434 2.81% 9 0.28% (6.69%) Total Equity 103,965 118,498 103,501 2.41% 10 1.34% 0.45% Share Capital 121,372 121,372 111,000 12.68% 2 9.34% 9.34% Total 16,056 65,837 18,035 1.58% 10 (10.98%) Income**** Interest 14,072 63,093 16,387 2.10% 10 (14.13%) Income Net Profit/ loss 5,437 5,536 1,279 2.11% 7 325.02% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing 11.27% Loans/Total Loans Among the top ten banks by all financial indicators ROE 21.23%

ROA 3.20%

Net Interest Margin 4.05%

Tier 1 10.52%

Capital Adequacy 16.74%

Liquidity 18.92%

Equity to Assets 0.00%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 21 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) VTB Bank-Georgia Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 1,458,621 1,546,014 1,299,879 4.90% 5 (5.65%) 12.21% Loan Portfolio 892,805 964,910 820,491 4.73% 4 (7.47%) 8.81% Liabilities 1,299,674 1,349,586 1,157,602 5.11% 5 (3.70%) 12.27% Deposits 847,177 831,274 770,757 5.26% 4 1.91% 9.91% Total Equity 158,946 196,428 142,276 3.69% 8 (19.08%) 11.72% Share Capital 191,293 191,293 191,293 19.98% 1 (0.00%) 0.00% Total 33,325 121,941 31,235 3.27% 6 6.69% Income**** Interest 27,884 116,816 26,137 4.15% 5 6.68% Income Net Profit/ loss 10,224 27,444 3,491 3.97% 4 192.87% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** The total income consists of interest income and fee and commission income

2,000,000 60,000 1,500,000 40,000 1,000,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing st 6.79% 1 rank by share capital Loans/Total Loans Among the top ten banks by all financial indicators ROE 26.41%

ROA 2.78%

Net Interest Margin 3.71%

Tier 1 9.61%

Capital Adequacy 13.39%

Liquidity 29.20%

Equity to Assets 10.90%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 22 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Bank Profiles (continued) Ziraat Bankasi A.S. Tbilisi Branch Key Financial Indicators* Amount , GEL, thousands Change** Share in total 31.03.17/ 31.03.17/ 2017 Q 1*** 2016*** 2016 Q 1*** Rank sector, % 31.12.16 31.03.16 Assets 80,952 67,353 62,346 0.27% 16 26.37% 29.84% Loan Portfolio 16,351 15,562 12,742 0.09% 16 19.56% 28.33% Liabilities 58,841 45,700 42,250 0.23% 16 32.44% 39.27% Deposits 57,975 45,058 38,848 0.36% 13 40.39% 49.23% Total Equity 22,111 21,653 20,096 0.51% 17 12.64% 10.03% Share Capital**** N/A N/A N/A N/A N/A N/A N/A 1,084 4,252 1,062 0.11% 17 2.07% Total Income**** 832 3,033 815 0.12% 17 2.07% Interest Income Net Profit/ loss 483 2,028 474 0.19% 14 1.84% after Taxes * The indicators of the financial position are as of the last day of the corresponding period. ** The change for the financial performance indicators is for the periods of the first 3 months of the years *** The audited financial statements of the bank is the source of the 2016 year end information, while 2016 Q1 and 2017 Q1 results are based on the NBG data **** No share capital as it represents a branch ***** The total income consists of interest income and fee and commission income Key Indicators of Financial Position, Key Indicators of Financial Performance, GEL, thousands GEL, thousands

3,000,000 100,000 As of 31.03.2017 As of 31.03.2017 2,500,000 As of 31.03.2016 As of 31.03.2016 80,000 2,000,000 60,000 1,500,000 40,000 1,000,000

500,000 20,000

0 0 Assets Loan Liabilities Deposits Total Share Total Income Interest Income Net Profit/ loss after Portfolio Equity Capital Taxes Key Ratios Rankings

Non Performing th 4.17% 13 rank by the Deposits Loans/Total Loans ROE 8.82%

ROA 2.57%

Net Interest Margin 4.01%

Tier 1 46.36%

Capital Adequacy 48.07%

Liquidity 74.90%

Equity to Assets 27.31%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00%

January February March

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 23 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 1 Shareholding Structure & General Information The shareholding structure of the Georgian banks is diverse. There are both resident and non- resident shareholders. Meanwhile, almost in all the Georgian banks non-resident shareholders are presented. The shareholding structure and information on branches and the staff for each bank is presented below. JSC Bank of Georgia JSC Bank Republic JSC Basisbank

List of Shareholders owning 1% and List of Shareholders owning 1% and Shareholders owning 1% and more more of issued capital: more of issued capital: of issued capital: BGEO Group 99.51% TBC Bank – 100% Xinjiang HuaLing Industry & Trade (Group) Co LTD 92.30% List of bank beneficiaries, direct or List of bank beneficiaries, direct or Zaiqi Mi 6.97% indirect holders of 5% or more of indirect holders of 5% or more of shares: shares: List of bank beneficiaries, direct or Harding Loevner Management LP N/A indirect holders of 5% or more of 8.09% shares: JSC Credo Bank Enhua Mi 92.22% Branches and Service centers: 273 Zaiqi Mi 6.97% List of Shareholders owning 1% and more Staff: 4693 employees Branches and Service centers : 21 of issued capital: Access Microfinance Holding AG – 60.2% Staff: 348 employees Triodos Custody B.V., Triodos Fair Share JSC CARTU BANK Fund– 9.9% JSC FINCA Bank Georgia Triodos SICAV II, Triodos Microfinance List of Shareholders owning 1% and Fund – 9.9% List of Shareholders owning 1% and more of issued capital: responsAbility Participations AG – 9.34% Jsc Cartu Group 100% more of issued capital: responsAbility Management Company FINCA Microfinance Coöperatief U.A. S.A., responsAbility Global Microfinance List of bank beneficiaries, direct or Fund (Luxembourg) – 8.79% (Netherlands) 100% indirect holders of 5% or more of responsAbility SICAV (Lux) - shares: responsAbility SICAV (Lux) Microfinance List of bank beneficiaries, direct or Leaders Fund – 1.87% Uta Ivanishvili 100% indirect holders of 5% or more of shares: List of bank beneficiaries, direct or FINCA Microfinance Holding Company Branches and Service centers : 9 indirect holders of 5% or more of shares: LLC 100 Voting right of FINCA Staff: 201- 500 employees CDC Group PLC (UK) - 7.57% European Investment Bank (Luxembourg) Microfinance Coöperatief U.A. - 7.57% FINCA International, Inc. (New York, nternational Finance Corporation (USA) - USA) 62.64% 7.57% IFC 14.38% LFS Financial Systems GmbH (Germany) - KfW 8.94% 10.22% FMO 7.31% Omidyar Tufts Microfinance Fund (USA) - 9.83% Dr. Bernd Zattler (Germany) - 6.13% Branches and Service centers : 39 Staff: 701 employees Branches and Service centers: 62 Staff: 1749

JSC Halyk Bank Georgia JSC International Bank of JSC Isbank Georgia Azerbaijan- Georgia List of Shareholders owning 1% and List of Shareholders owning 1% and more of issued capital: List of Shareholders owning 1% and more of issued capital: JSC Halyk Bank of Kazakhstan-100% more of issued capital: Turkey Is Bank 100.00% OJSC International Bank of Azerbaijan List of bank beneficiaries, direct or 75.00% List of bank beneficiaries, direct or indirect holders of 5% or more of OJSC Azerbaijan Industry Bank 12.50% indirect holders of 5% or more of shares: Natia Chkhartishvili 6.25% shares: Timur Kulibayev 36.77% Mikheil Chkhartishvili 6.25% Turkıye Is Bankası A,S, Employees Dinara Kulibayeva 36.77% List of bank beneficiaries, direct or Pensıon Fund 40.15% indirect holders of 5% or more of Turkey Republıcan People's Party Branches and Service centers : 5 shares: 28.09% Staff: 150-200 State Committee of State Property of Azerbaijan Republic 71.33% Branches and Service centers : 2 Leyla Gozal Kurt 7.07% Staff: 37 Natia Chkhartishvili 6.25% Mikheil Chkhartishvili 6.25% Branches and Service centers : 1 Staff: 11-50

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 24 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 1 Shareholding Structure & General Information (continued)

JSC Liberty Bank JSC Pasha Bank Georgia JSC ProCredit Bank

List of Shareholders owning 1% and List of Shareholders owning 1% and List of Shareholders owning 1% and more of issued capital: more of issued capital: more of issued capital: Liberty Holding Georgia LLC 73.02% PASHA Bank OJSC 100.00% ProCredit Holding AG & Co. KGaA BNY Limited (Nominees) 12.79% 100.00% Vladimer Gurgenidze 4.79% List of bank beneficiaries, direct or ELVIN Solutions Limited 1.66% indirect holders of 5% or more of List of bank beneficiaries, direct or OLIVE Capital Management Ltd 1.20% shares: indirect holders of 5% or more of Jaap Willem Rotgans 1.01% Arif Pashayev 10.00% shares: Others 5.53% Arzu Aliyeva 45.00% Zeitinger Invest GmbH >15% to <20% Leyla Aliyeva 45.00% KfW >10% to <15% List of bank beneficiaries, direct or DOEN Foundation >10% to <15% indirect holders of 5% or more of Branches and Service centers : 1 IFC >10% to <15% shares: Staff: 50-60 TIAA-CREF >10% to <15% Denis Korotkov-Koganovich 24.88% Malik Ishmuratov 24.88% Branches and Service centers : 26 Nurlan Abduov 24.88% Staff: N/A BNY Limited (Nominees) 12.59% Branches and Service centers : 692 Staff: 4394

JSC Silk Road Bank JSC TBC Bank JSC Terabank (previously Kor Standard Bank) List of Shareholders owning 1% and List of Shareholders owning 1% and more of issued capital: more of issued capital: List of Shareholders owning 1% and JSC Silk Road Financial Group 99.987% TBC Bank Group PLC 98.47% more of issued capital: H.H Sheikh Nahayan Mabarak AL List of bank beneficiaries, direct or List of bank beneficiaries, direct or Nahayan 45% indirect holders of 5% or more of indirect holders of 5% or more of H.H. Sheikh Hamdan Bin Zayed AL shares: shares: Nehayan 20% Giorgi Ramishvili 61.992% Mamuka Khazaradze 13.98% H.H. Sheikh Mansoor Bin Zayed Bin Alexi Topuria 28.496 % EBRD 12.03% Sultan AL Nehayan 15% David Franz Borger, Germany 9.499% Badri Japaridze 6.98% H.E. Shaikh Mohammad Butti AL Societe Generale SA - 5.33% Hamed 15% Branches and Service centers : 9 Dunross & Co. 5.70% LTD INVESTMENT TRADING GROUP Staff: N/A Schroder Investment Management 5% 7.72% JPMorgan Asset Management List of bank beneficiaries, direct or Holdings 7.77% indirect holders of 5% or more of shares: Branches and Service centers : 167 H.H Sheikh Nahayan Mabarak AL Staff: 4,919 employees Nahayan 45% H.H. Sheikh Hamdan Bin Zayed AL Nehayan 20% H.H. Sheikh Mansoor Bin Zayed Bin Sultan AL Nehayan 15% H.E. Shaikh Mohammad Butti AL Hamed 15%

JSC VTB Bank (Georgia) T.C. ZIRAAT BANKASI A.S. TBILISI Branches and Service centers: 18 BRANCH Staff: 368 List of Shareholders owning 1% and more of issued capital: List of Shareholders owning 1% and JSC VTB Bank 97.14% more of issued capital: LTD Lakarpa Enterprises Limited The Undersecretariat of Treasury of the 1.61% Turkish Republic -100%

List of bank beneficiaries, direct or List of bank beneficiaries, direct or indirect holders of 5% or more of indirect holders of 5% or more of shares: shares: Russian Federation 59.16% The Undersecretariat of Treasury of the Turkish Republic - 100% Branches and Service centers: 36 Staff: 1160 Branches and Service centers : 4 Staff: N/A

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 25 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 2 Sector Insights Assets As of 31 March 2017 the assets grew in almost all the banks, and only four banks suffered decreases as compared with the same period of 2016. As of 31 March 2017 Bank of Georgia had the highest value of assets - about GEL 9.8 billion, which is 32.98% of the total assets of the banking sector. Silk Road Bank had the lowest level – GEL 0.056 billion (0.19% in total assets). It is worth mentioning that, as of 31 March 2017, the top two banks (ranked by assets) held 62.89% of the assets of the banking system, while the top five banks held 79.76% of the total assets.

Loan portfolio The total amount of loans issued at the end of the 1st quarter of 2017 amounted to GEL 18.89 billion (Q1 2016: GEL 16.03 billion). The major part of the loans was borrowed by households (53%), trade (12%) and industry (11%), while education held only 1% of the total loans issued as of 31 March 2017. As at 31 March 2017 the Herfindahl-Hirschman Index amounted to 2,135, which implies that the Georgian banking sector is highly concentrated.

Structure of banks in Georgia by loan volume, Q1 2017

0% 2% 3% Households 4% 2% 3% Agriculture, Forestry, Fishing

Industry 3% Construction

Trade

12% Hotels and Restaurants

Transport and Communications 53%

Financial Intermediation

5% Transactions in Real Estates, Researches

Education

11% Health Care and Social Services

Other services 2%

*Analysis is done based on Loans Net of Provision (NBG)

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 26 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 2 Sector Insights (continued) Liabilities As of 31 March 2017 the banking system total liabilities grew by 0.2%, compared with the same figure as of 31 March 2016, to reach GEL 25.44 billion, of which 68.3% are deposits.

Deposits As of 31 March 2017 non-bank deposits represented 63.2% of the total liabilities of the banking sector (GEL 16.1 billion). As of 31 March 2017 70.0% of the deposits were placed in foreign currencies, while the remaining 30.0% in national currency. 44.2% of the total deposits were time deposits, while current accounts and demand deposits represented 32.4% and 23.4% of the total deposits respectively. Around 80.0% of the time deposits were placed in foreign currencies, while 62.1% of total of current accounts and demand deposits were placed in foreign currency.

Structure of deposits

30.0% 32.4%

44.2%

70.0%

23.4%

GEL Foreign Currency Current Accounts Demand Deposits Time Deposits *Analysis of the Structure of Deposits are based on NBG aggregate data of Deposits, which includes bank deposits.

Equity At the end of the Q1 2017 the total equity to total assets ratio was 14.5%, which is slightly higher compared to the same ratio of 2016 (14.4%). As of 31March 2017 TBC Bank had the highest level of equity - about GEL 1.48 billion, which is 34% of the total equity of the banking system. Ziraat Bank had the lowest level – GEL 0.022 billion (0.5% in total equity). 76% of the total equity of the banking system belonged to the top five banks (ranked by the equity) as of 31 March 2017.

Interest income For the period the interest income amounted to GEL 0.65 billion. Eleven banks out of the seventeen increased their interest income compared to the same period of 2016.

Profit/loss Financial performance of the sector was positive during the first quarter of 2017. Comparing with the same period last year, interest income, holding the highest share in the total income, rose by 11.1% and reached GEL 0.65 billion. Total fee and commission income increased by 46.7% and amounted to GEL 0.95 billion, while net profit of the banks for the first quarter was GEL 0.26 billion, 134.6% higher when compared with the same period of 2016. During the first quarter of 2017, 16 banks operating in Georgia were profitable. Only one bank incurred loss after taxes.

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 27 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 3 Key Financial Indicators Key Indicators of the Financial Position as of 31.03.2017

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC Bank of Georgia 9,811,766 6,051,035 8,722,012 5,280,789 1,089,754 26,053

JSC TBC Bank 8,899,743 5,717,023 7,419,602 5,373,705 1,480,141 21,016

JSC Liberty Bank 1,613,923 774,692 1,417,959 1,239,678 195,964 43,840

JSC Bank Republic 1,945,332 1,428,590 1,647,490 675,248 297,842 76,031

JSC VTB Bank-Georgia 1,458,621 892,805 1,299,674 847,177 158,946 191,293

JSC ProCredit Bank 1,265,596 853,633 1,083,211 644,948 182,384 88,915

JSC Cartu Bank 1,179,169 834,862 981,514 627,908 197,655 114,430

JSC TeraBank 656,779 452,768 552,815 452,028 103,965 121,372

JSC BasisBank 905,578 592,855 732,540 552,246 173,038 16,057

JSC Finca Bank Georgia 274,820 211,290 240,475 94,631 34,345 20,214

JSC Halyk Bank Georgia 342,427 254,014 287,947 66,439 54,481 48,000

JSC PASHA Bank Georgia 263,740 108,321 161,111 38,320 102,629 103,000

JSC Isbank Georgia 312,479 190,537 281,728 88,695 30,751 30,000 JSC The International Bank of Azerbaijan-Georgia 109,121 33,460 69,944 40,854 39,178 22,688

JSC Credo Bank 574,633 466,685 457,622 0 117,011 4,400 JSC ZIRAAT BANKASI A.S. Tbilisi Branch 80,952 16,351 58,841 57,975 22,111 0

JSC Silk Road Bank 56,419 6,889 28,632 20,083 27,787 30,000

Total 29,751,099 18,885,810 25,443,116 16,100,722 4,307,983 957,308

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 28 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 3 Key Financial Indicators (continued)

Key Indicators of the Financial Results for the period ended 31.03.2017

GEL Thousands Fee and Net fee and Net profit/ Net profit/ Interest Net Interest Provision commission commission loss before loss after Income Income Expense income income taxes taxes

JSC Bank of Georgia 231,330 133,028 40,548 26,103 -20,208 135,890 118,359

JSC TBC Bank 174,730 99,654 46,332 27,044 9,792 69,141 66,517

JSC Liberty Bank 61,665 33,808 19,036 16,692 4,831 9,717 9,717

JSC Bank Republic 41,478 22,962 7,325 5,293 -1,952 24,630 21,650

JSC VTB Bank-Georgia 27,884 13,668 5,442 4,000 -4,137 11,616 10,224

JSC ProCredit Bank 20,001 11,601 2,495 524 -380 3,853 3,369

JSC Cartu Bank 21,618 12,980 1,250 -504 4,939 6,610 5,394

JSC TeraBank 14,072 6,872 1,984 928 -3,152 5,437 5,437

JSC BasisBank 17,782 10,803 1,352 607 15 8,783 7,984

JSC Finca Bank Georgia 13,141 8,284 1,514 -158 1,790 287 283

JSC Halyk Bank Georgia 7,635 5,592 1,854 831 -343 4,393 3,793

JSC PASHA Bank Georgia 4,845 3,677 34 -11 277 1,424 1,424

JSC Isbank Georgia 4,729 1,907 212 -20 431 -196 -298 JSC The International Bank of Azerbaijan-Georgia 1,538 1,365 301 201 -691 1,754 1,754

JSC Credo Bank 27,100 17,662 10,727 8,514 5,886 2,185 1,680 JSC ZIRAAT BANKASI A.S. Tbilisi Branch 832 754 252 104 43 483 483

JSC Silk Road Bank 894 678 232 181 -256 15 15

Total 671,277 385,296 140,891 90,329 -3,115 286,021 257,785

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 29 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 3 Key Financial Indicators (continued)

Key Indicators of the Financial Position as of 31.03.2016

GEL Thousands

Assets Loans Liabilities Deposits Total Equity Share Capital

JSC Bank of Georgia 8,292,994 5,181,875 7,375,674 4,736,351 917,320 26,659

JSC TBC Bank 6,365,523 4,495,146 5,243,996 3,885,951 1,121,527 20,022

JSC Liberty Bank 1,531,461 711,394 1,393,447 1,228,100 156,362 43,840

JSC Bank Republic 1,654,097 1,219,492 1,409,512 743,987 244,584 76,031

JSC VTB Bank-Georgia 1,299,879 820,491 1,157,602 770,757 142,276 191,293

JSC ProCredit Bank 1,169,763 889,540 1,018,322 620,244 151,441 88,915

JSC Cartu Bank 1,205,163 904,980 981,155 620,893 224,008 114,430

JSC TeraBank 683,025 491,297 579,525 484,434 103,501 111,000

JSC BasisBank 724,041 450,751 568,537 440,807 155,504 16,013

JSC Finca Bank Georgia 240,347 183,549 205,494 49,151 34,853 20,214

JSC Halyk Bank Georgia 265,653 208,409 218,338 47,993 47,314 48,000

JSC PASHA Bank Georgia 267,679 101,462 171,989 58,883 95,689 103,000

JSC Isbank Georgia 219,681 150,814 187,788 63,680 31,894 30,000 JSC The International Bank of Azerbaijan-Georgia 105,193 72,174 74,774 15,701 30,419 22,688 JSC ZIRAAT BANKASI A.S. Tbilisi Branch 62,346 12,742 42,250 38,848 20,096 0

JSC Silk Road Bank 61,000 15,060 31,738 21,476 29,263 30,000

JSC Progress Bank* 243,087 89,186 228,120 135,529 14,967 17,475

JSC Capital Bank* 63,844 21,223 61,168 44,564 2,675 17,120

Total 24,454,775 16,019,586 20,949,428 14,007,348 3,523,695 976,699

* License For Banking Activity Cancelled during 2016

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 30 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 3 Key Financial Indicators (continued)

Key Indicators of the Financial Results for the period ended 31.03.2016

GEL Thousands Fee and Net fee and Net profit/ Net profit/ Interest Net Interest commission commission Provision loss before loss after Income Income income income Expense taxes taxes

JSC Bank of Georgia 198,256 108,024 33,005 21,447 63,549 28,703 26,753

JSC TBC Bank 157,172 91,984 31,339 16,352 30,277 40,325 36,707

JSC Liberty Bank 57,605 28,119 12,709 10,651 3,636 4,343 4,343

JSC Bank Republic 40,223 23,379 7,309 5,715 3,599 15,263 13,113

JSC VTB Bank-Georgia 26,137 12,868 5,098 3,579 2,679 3,725 3,491

JSC ProCredit Bank 25,254 16,534 3,168 1,547 3,142 5,987 5,089

JSC Cartu Bank 23,566 14,170 1,376 -223 3,279 7,849 6,342

JSC TeraBank 16,387 6,527 1,648 733 2,875 1,279 1,279

JSC BasisBank 16,331 9,722 1,044 217 -83 7,930 7,078

JSC Finca Bank Georgia 13,109 9,145 1,416 -190 1,984 474 358

JSC Halyk Bank Georgia 6,736 4,420 510 318 1,989 878 817

JSC PASHA Bank Georgia 5,920 3,674 29 -7 -282 1,848 1,848

JSC Isbank Georgia 3,869 1,910 206 17 -999 1,532 1,509 JSC The International Bank of Azerbaijan-Georgia 2,237 1,307 412 335 -150 1,614 1,614 JSC ZIRAAT BANKASI A.S. Tbilisi Branch 815 777 247 118 30 474 474

JSC Silk Road Bank 997 685 102 46 208 -691 -695

JSC Progress Bank* 3,561 1,488 223 96 243 -482 -412

JSC Capital Bank* 1,975 1,857 1,499 330 -67 1,051 1,051

Total 600,150 336,591 101,340 61,082 115,909 122,101 110,759

* License For Banking Activity Cancelled during 2016

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 31 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 4 Bank Contact Details

JSC Bank of Georgia Basisbank JSC CARTU BANK CEO CEO CEO Kakhaber Kiknavelidze David Tsaava Nato Khaindrava Members of Board of Directors: Members of Board of Directors: Members of Board of Directors: Levan Kulijanishvili Lia Aslanikashvili David Galuashvili Mikheil Gomarteli David Kakabadze Zurab Gogua Archil Gachechiladze Levan Gardaphkhadze Beqa Kvaratskhelia Giorgi Chiladze Li Hui Givi Lebanidze Alexander Katsman Address: 1, Ketevan Tsamebuli Ave. Address: 39a Chavchavadze Tornike Gogichaishvili Tel./Fax: (995 32) 2 922 922 Tel./Fax:995 32 292 55 92 Ramaz Kukuladze E-mail: [email protected] (995 32) 2250 580 David Tsiklauri Website: www.basisbank.ge Website: www.cartubank.ge Address: 29a Gagarini Street SWIFT:CBASGE22 SWIFT: CRTUGE22 Tel./Fax: (995 32) 2 444 44, 514060 E-mail: [email protected] Website: www.BOG.ge SWIFT: BAGAGE22

JSC Credo Bank JSC FINCA Bank Georgia JSC Halyk Bank Georgia CEO CEO CEO Zaal Pirtskhelava Vusal Verdiyev Nikoloz Geguchadze Members of Board of Directors: Members of Board of Directors: Members of Board of Directors: Johannes Mainhardt (Germany) Giorgi Mirotadze Konstantin Gordeziani Zaza Tkeshelashvili Giorgi Samadashvili Shota Chkoidze Address: 9 Asatiani Street Address: Vazha Pshavela Ave 71 Marina Tankarova Tel./Fax: +995 (32) 242 4242 Tel./Fax: 2244949 Nino Meparishvili E-mail: [email protected] E-mail: [email protected] Address: Shartava str. 40 Website: www.credo.ge Website: www.finca.ge Tel./Fax: +995 32 2 24 07 07 ; +995 32 2 Swift: N/A SWIFT: FGEOGE22 36 53 98 E-mail: [email protected] Website: www.hbg.ge SWIFT: HABGGE22

JSC International Bank of Azerbaijan- JSC Isbank Georgia JSC Liberty Bank Georgia CEO CEO CEO Aleksi Khoroshvili Emil Abasbayli Ozan gur Members of Board of Directors: Members of Board of Directors: Members of Board of Directors: Zurab Tsulaia Tamar Gogolashvili Mehmet Ihsan Aqhun Aleksander Liparteliani Shalva Goduadze Ahmed Naji Narshaf Armen Matevosyan Address: 1 Leonidze Street Address: Agmashenebeli Ave.140b David Verulashvili Tel./Fax: +995 322 29 22 22 Tel./Fax: +995 32 231 05 15 David Melikidze E-mail: [email protected] E-mail: N/A Taras (Tato) Chantladze Website: www.ibaz.ge Website: www.isbank.ge Address: 74 Chavchavadze Street SWIFT: IBAZGE22 SWIFT: ISBKGE22 Tel./Fax: 0322 55 55 00 E-mail: [email protected] Website: www.libertybank.ge SWIFT: LBRTGE22

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 32 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Appendix 4 Bank Contact Details (continued)

JSC Pasha Bank Georgia JSC ProCredit Bank JSC Silk Road Bank CEO CEO CEO Shahin Mammadov Ketevan Khuskivadze Alexander Dzneladze Members of Board of Directors: Members of Board of Directors: Members of Board of Directors: Chingiz Abdullayev Alex Matua Natia Merabishvili George Japaridze Davit Gabelashvili Adress: 2 Saarbrucken Square Address: 15 Rustaveli Avenue Natia Tkhilaishvili Tel./Fax: ( +995 32 ) 224 22 42 Tel./Fax: +995 32 215 88 11 +995 32 Address: 21 Al. Kazbegi Ave ( +995 32) 224 22 22 215 88 22 Tel./Fax: (+995 32) 220 2222 (+995 32) E-mail: [email protected] E-mail: [email protected] 220 2223 Website: www.silkroadbank.ge Website: www.pashabank.ge E-mail: [email protected] SWIFT: DISNGE22 SWIFT: PAHAGE22 Website: www.procreditbank.ge SWIFT: MIBGGE22

JSC TBC bank JSC Terabank (previously Kor JSC VTB Bank (Georgia) CEO Standard Bank) CEO Vakhtang Butskhrikidze CEO Archil Kontselidze Members of Board of Directors: Thea Lortkipanidze Members of Board of Directors: Paata Ghadzadze Members of Board of Directors: Mamuka Menteshashvili Vano Baliashvili Vakhtang Khutsishili Niko Chkhetiani Nino Masurashvili Zurab Azarashvili Valerian Gabunia Giorgi Tkhelidze Temur Abuladze Vladimer Robakidze Giorgi Shagidze Sophia Jugeli Irakli Dolidze David Chkonia Address: 3. K.Tsamebuli Av.,0103 Address: 14, G. Chanturia St., 0108 Nikoloz Kurdiani Tel. : +995 32 2 55 00 00 Tbilisi, Georgia Address: Marjanishvili Street 7 E-mail: [email protected] Tel: (995 32) 224 24 24 Tel./Fax: +(995 32) 227 27 27 Website: www.terabank.ge Fax: (995 32) 293 32 91 E-mail: [email protected] SWIFT: TEBAGE2222 E-mail: [email protected] Website: www.tbcbank.ge Website: www.vtb.ge SWIFT: TBCBGE22 SWIFT: UGEBGE22

T.C. ZIRAAT BANKASI A.S. TBILISI BRANCH CEO Mehmet Ucar Members of Board of Directors BOGACHAN SEFIK KARAMURSEL HALUK CENGIZ MURAT YILDIRIM Address: Aghmashenebeli Ave. No: 61, Tbilisi, Georgia Tel./Fax: (00 995 32) 294 37 04 294 37 14 E-mail: [email protected] Website: www.ziraatbank.com SWIFT: TCZBGE22

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 33 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Glossary of Terms

Herfindahl-Hirschman Index Calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers. Index below 1,000 indicates an unconcentrated index; index between 1,000 and 1,800 indicates moderate concentration; index above 1,800 indicates high concentration.

Equity to assets Calculated as the total equity divided by the total assets.

Return on Assets The ratio of annualized net profit to average annual assets.

Return on Equity The ratio of annualized net profit to average annual share capital.

Net Interest Margin The ratio of annualized net interest income to annual average assets.

Tier 1 Ratio The ratio of Tier 1 Capital of the bank defined according to the rule set by NBG to risk weighted assets. Required minimum by the National Bank of Georgia – 7.2%.

Capital Adequacy Ratio The ratio of regulatory Capital of the bank defined according to the rule set by NBG to risk weighted assets. Required minimum by the National Bank of Georgia – 10.8%

Liquidity Ratio Calculated as the liquid assets divided by the total assets.

© 2017 KPMG Georgia LLC, a company incorporated under the Laws of Georgia, a member firm of the KPMG network of 34 independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Contacts

The contacts at KPMG in connection with this report are:

Andrew Coxshall Managing Partner KPMG in Georgia

T + 995 32 295-07-19 E [email protected]

Irina Gevorgyan Director Head of Advisory

T + 995 32 295-07-19 E [email protected]

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