Corporate Investment Banking With c.2,500 clients by the end of 2018, Bank of Georgia’s Corporate Investment Banking (CIB) is a leading provider of corporate banking solutions in Georgia. Our CIB franchise leverages its best-in-class expertise in product design and 360 degree view of every client to execute profitable transactions for the Bank and offer excellent services to clients. In 2018, the Bank’s CIB loan portfolio resumed growth after our strategic goal to de-concentrate and reposition the CIB loan portfolio was successfully achieved by the end of 2017. CIB’s net loan book reached GEL 2.6 billion at 31 December 2018, up 15.9% y-o-y, while the growth on a constant-currency basis was 12.9% y-o-y. The top ten CIB client concentration was 9.8% of total loan book at the end of 2018, compared to 10.7% at 31 December 2017. While aiming for a healthy growth of the Corporate Investment Banking loan book, Bank of Georgia will continue to prudently manage the concentration risk so that the exposure to its top ten clients is maintained around 10% of the total loan book. CIB’s loan portfolio is targeted to grow by c.15% and we aim for profitability in terms of a ROAE to be at 20%. We are planning to boost our fee and commission income through corporate advisory and brokerage services from our subsidiary Galt & Taggart – a leading investment bank and a brokerage house in Georgia. Galt & Taggart is actively involved in developing local capital markets and for years has provided services to a number of corporate clients and DFIs and assisted them with placing their bonds on the local stock exchange. In 2018, Galt & Taggart facilitated a public placement of GEL 160 million local bonds issued by Nederlandse Financierings-Maatschappij Voor Ontwikkelingslanden N.V. (FMO) and was also a lead manager for Black Sea Trade and Development Bank when the latter issued GEL 75 million in the local market. In 2018, Galt & Taggart co-managed an international bond issuance totaling US$ 200 million by Georgia Capital. In order to provide its clients with access to global capital markets and enable them to invest on a multi-asset basis, Galt & Taggart has partnered with Saxo Bank since 2015. The partnership with Saxo Bank enhances the trading experience of our clients by offering them the latest trading technology and an opportunity to directly access financial markets. Strategic focus Focus on Manage Loan portfolio Maintain automation concentration risk, Acquire and growth profitability of and fee with top 10 clients retain top of c.15% ROAE 20% business <10% of total talent loan book Leading Corporate Investment Bank in Georgia** GEL 2.6bln GEL 3.5bln GEL GEL 119.1mln 26.7mln Net loans Client deposits Net income Net F&C income up 15.9% y-o-y up 0.5% y-o-y up 12.5% y-o-y up 17.4% y-o-y 22.6% c. 2,500 ROAE* Clients up 500bps y-o-y down 5.0% y-o-y *Adjusted for Demerger-related expenses and one-off impact of re-measurement of deferred tax balances. **Includes Wealth Management. 34 Annual Report 2018Bank of Georgia Group PLC