Express – serving emerging Retail Banking clients Our Express Bank brand is aimed at the emerging bankable population. Express serves as a platform for bringing the currently under-banked population into banking and its main focus is to enable its client base to transact in a fast and easy way. We began implementing our Express Banking strategy in 2012 by rolling out small-format Express branches offering predominantly transactional banking services to clients through ATMs and Express Pay terminals. By the end of 2018, we had 165 Express branches, comprising 61% of all retail branches, and 3,115 Express Pay terminals serving emerging retail clients. We are leaders in Georgia in the payment systems market. We sell only a limited number of banking products to our Express Banking clients. In 2017, we won a tender, organised by Tbilisi City Hall, for the modernisation of the public transportation payment system in Tbilisi. As a result, the Bank will continue to be the sole provider of payment support services to the public transport network, and operate Express branches in Tbilisi metro (i.e. subway) stations for the next ten years. As part of the tender mandate and the Bank’s own digitilisation strategy, Bank of Georgia is implementing a modern digital payment system across the public transport network in Tbilisi, including payment processing using Visa and MasterCard cards, and creating a digital platform for ticket reservations and purchases through mobile applications. In 2018, the number of transactions through our Express branches increased by 17.1% y-o-y to 45.4 million. Currently, 110 out of a total of 165 Express branches are located in Tbilisi. Express is one of the major drivers in our fee and GEL commission income from the Retail Banking segment 45.4mln and a strong franchise attracting the unbanked 20.9mln population to the Bank, eventually growing them into mass retail customers. Number of Fee and transactions commission through branches income up 17.1% y-o-y flat y-o-y 28 Annual Report 2018Bank of Georgia Group PLC