Bank of Georgia Group History Bank of Georgia Group’s history has been marked with In 2009-2011, the Bank introduced new banking several major milestones since the 1990s. The first decade experiences such as SOLO and Express brands that were after Bank of Georgia was established in the early 1990s the first important steps toward the tailor-made banking was a period of innovations and transformations, led practices that we have now. Bank of Georgia diversified by the Bank’s introduction of new products and services its revenue sources by entering non-banking sectors to the local market. Many of them, now commonplace in healthcare and real estate, which later became the and widely offered banking products by local financial Group’s Investment Business arm. institutions, such as debit/credit cards, ATMs, money transfers, SMS banks and pre-approved SMS loans, In 2012, Bank of Georgia made another breakthrough leasing, insurance, etc., were brought to the Georgian by entering the LSE’s premium segment of FTSE 250, market by Bank of Georgia. Starting from 2004, Bank which meant even more transparency, accountability of Georgia completed a number of strategic acquisitions, and reliability for the Bank. The listing in premium segment introduced a series of packaged retail products and increased the Bank’s liquidity and granted it further initiated major infrastructure upgrades. This is when the opportunities on capital markets. By the end of 2014, Bank launched its private banking, placed debut corporate the Bank had made several key acquisitions in its banking bonds on the Georgian Stock Exchange, automated the and non-banking businesses and modified its growth banking processes and intensified efforts to increase the strategy to reflect both arms. utilisation of banking cards population-wide. The reorganisation of the Bank that followed in 2015 By 2006, the Bank received credit ratings from the marked a legal separation of banking and investment largest international credit rating agencies (Fitch Ratings, businesses under newly established JSC BGEO Group, Moody’s, S&P Global). then fully owned by BGEO Group PLC (former Bank of Georgia Holdings or BGH). This is the year when Bank of The year 2006 marked the beginning of a new era for Georgia started the transformation of its retail brand into Bank of Georgia. After laying a solid foundation for the a client-centric business that united transactional banking modern banking sector in Georgia, the Bank was ready through Express Bank, flagship mass retail banking to become the first Georgian bank and also the first through Bank of Georgia and affluent banking through company in South Caucasus to list its shares in the form SOLO. The year of 2015 was an important milestone of Global Depositary Receipts (GDRs) on the London for the Investment Business as well, as it oversaw a Stock Exchange (LSE). Bank of Georgia’s listing on the successful premium segment listing of Georgia Healthcare LSE took the Bank to a new level of development and Group PLC. opportunities. Bank of Georgia strengthened its corporate governance standards, gained direct access to capital In 2017, the Bank listed its landmark local currency markets and institutional investors, and made its valuation bonds on the Irish Stock Exchange, which was a significant more transparent and reliable. The period following the achievement in light of the de-dollarisation initiatives listing was marked by its first Eurobond issuances, further in Georgia’s banking sector. acquisitions, new partnerships (e.g. American Express), upgraded credit ratings, and so forth. In 2017, the decision was made to demerge BGEO Group PLC into two separately listed and independently In 2008, Bank of Georgia launched its first integrated managed public companies – Bank of Georgia Group internet and mobile banking platform, which was an PLC, the Banking Business, and Georgia Capital PLC, the important step towards our goal of delivering a high- Investment Business (the “Demerger”). The Demerger was quality client service experience across all digital channels. completed on 29 May 2018 and Bank of Georgia Group successfully continues its operation in the banking sector. 20 Annual Report 2018 Bank of Georgia Group PLC