Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information 21. Net Interest Income 2018 2017 2016 Interest income calculated using EIR method 1,302,906 1,117,770 915,609 From loans to customers 1,143,123 989,652 817,021 From investment securities 134,952 110,991 90,601 From amounts due from credit institutions 28,738 17,127 7,987 Net loss on modification of financial assets (3,907) – – Other interest income 19,391 14,144 10,420 From finance lease receivable 17,947 14,144 10,420 From loans and advances to customers measured at FVTPL 1,444 – – Interest Expense (574,589) (459,379) (377,908) On client deposits and notes (250,302) (209,374) (188,582) On amounts owed to credit institutions (206,104) (170,076) (127,843) On debt securities issued (118,183) (79,929) (61,483) Deposit insurance fees (5,955) – – Net Interest Income 741,753 672,535 548,121 22. Net Fee and Commission Income 2018 2017 2016 Settlements operations 185,118 153,529 129,792 Guarantees and letters of credit 18,852 17,378 18,893 Cash operations 13,032 13,238 12,965 Currency conversion operations 1,690 446 585 Brokerage service fees 2,639 1,766 1,040 Advisory 3,628 – 1,379 Other 3,810 4,035 4,927 Fee and commission income 228,769 190,392 169,581 Settlements operations (62,923) (48,103) (34,304) Cash operations (5,145) (5,156) (5,807) Guarantees and letters of credit (1,630) (2,192) (2,880) Insurance brokerage service fees (3,667) (3,148) (2,431) Currency conversion operations (446) (27) (20) Advisory (55) – – Other (2,241) (1,716) (1,662) Fee and commission expense (76,107) (60,342) (47,104) Net fee and commission income 152,662 130,050 122,477 Annual Report 2018Bank of Georgia Group PLC 247