Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information Consolidated Income Statement For the year ended 31 December 2018 (thousands of Georgian Lari) Notes 2018 2017* 2016* Interest income calculated using EIR method 1,302,906 1,117,770 915,609 Other interest income 19,391 14,144 10,420 Interest income 1,322,297 1,131,914 926,029 Interest expense (574,589) (459,379) (377,908) Deposit insurance fees (5,955) – – Net interest income 21 741,753 672,535 548,121 Fee and commission income 228,769 190,392 169,581 Fee and commission expense (76,107) (60,342) (47,104) Net fee and commission income 22 152,662 130,050 122,477 Net foreign currency gain 128,762 79,106 89,480 Net other income 7,262 18,645 10,666 Revenue 1,030,439 900,336 770,744 Salaries and other employee benefits 23 (214,761) (195,994) (166,574) Administrative expenses 23 (112,654) (98,372) (80,152) Depreciation and amortisation (45,442) (40,974) (37,207) Other operating expenses (3,995) (3,458) (3,853) Operating expenses (376,852) (338,798) (287,786) Profit from associates 1,339 1,311 – Operating income before cost of risk 654,926 562,849 482,958 * Certain amounts do not correspond to the 2017 consolidated financial statement as they reflect the adjustments made to discontinued operations as described in Note 5. The accompanying Notes on pages 177 to 283 are an integral part of these financial statements. Annual Report 2018Bank of Georgia Group PLC 167