Financial highlights The effectiveness of our strategy is reflected in the strong 2018 financial results highlighted below Revenue Cost to (GEL million) Banking Business income ratio Banking Business 1,030.0 2016 773.9 36.7% 2016 37.7% 2017 909.3 2017 37.7% +13.3% y-o-y 2018 1,030.0 -100 bps y-o-y 2018 36.7% Profit before non-recurring items and income tax Return on equity* (GEL million) Banking Business Banking Business 492.6 2016 314.6 26.1% 2016 22.2% 2017 400.4 2017 25.2% +23.0% y-o-y 2018 492.6 +90 bps y-o-y 2018 26.1% Client deposits Net loans (GEL million) Banking Business (GEL million) Banking Business 8,133.9 2016 5,755.8 9,397.7 2016 6,681.7 2017 7,078.1 2017 7,741.4 +14.9% y-o-y 2018 8,133.9 +21.4% y-o-y 2018 9,397.7 Basic earnings per share* Tier 1 capital ratio (GEL) Banking Business (NBG, Basel III)** Bank of Georgia 9.92 2016 7.689.63 12.2% 2016 9.1% 2017 2017 12.4% +3.0% y-o-y 2018 9.92 2018 12.2% *2018 results were adjusted for GEL 30.3mln Demerger-related costs, GEL 8.0mln Demerger-related corporate income tax gain, and GEL 30.3mln one-off impact of remeasurement of deferred tax balances. In addition, 9,784,716 Bank of Georgia Group shares were issued to Georgia Capital as part of the Demerger process in 2018. **Tier 1 capital ratio at 31 December 2016 is presented in accordance with NBG BASEL II guidelines. 04 Annual Report 2018Bank of Georgia Group PLC