Consolidated Income Statement continued For the year ended 31 December 2018 (thousands of Georgian Lari) Notes 2018 2017* 2016* Operating income before cost of risk 654,926 562,849 482,958 Expected credit loss/impairment charge on loans to customers 24 (139,499) (155,210) (158,892) Expected credit loss/impairment charge on finance lease receivables 24 (164) (496) (777) Other expected credit loss 24 (2,799) – – Impairment charge on other assets and provsios (17,763) (11,590) (8,083) Cost of risk (160,225) (167,296) (167,752) Net operating income before non-recurring items 494,701 395,553 315,206 Net non-recurring items 25 (57,156) (4,300) (45,355) Profit before income tax expense from continuing operations 437,545 391,253 269,851 Income tax (expense) gain 14 (56,665) (26,592) 26,444 Profit for the year from continuing operations 380,880 364,661 296,295 Profit from discontinued operations 5 107,898 98,788 132,281 Profit for the year 488,778 463,449 428,576 Total profit attributable to: – shareholders of BOGG 468,996 437,615 398,538 – non-controlling interests 19,782 25,834 30,038 488,778 463,449 428,576 Profit from continuing operations attributable to: – shareholders of BOGG 379,313 362,971 293,773 – non-controlling interests 1,567 1,690 2,522 380,880 364,661 296,295 Profit from discontinued operations attributable to: – shareholders of BOGG 89,683 74,644 104,765 – non-controlling interests 18,215 24,144 27,516 107,898 98,788 132,281 Basic earnings per share: 20 10.7783 11.6086 10.4148 – earnings per share from continuing operations 8.7173 9.6285 7.6771 – earnings per share from discontinued operations 2.0610 1.9801 2.7377 Diluted earnings per share: 20 10.7125 11.0724 10.0895 – earnings per share from continuing operations 8.6640 9.1838 7.4372 – earnings per share from discontinued operations 2.0485 1.8886 2.6523 * 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. 168 Annual Report 2018Bank of Georgia Group PLC