Georgia Capital Plc · LSE:CGEO
Georgia Capital — H1 2026 Earnings Presentation
15 slides from Georgia Capital's earnings presentation, Aug 4, 2026
Slide 1: Macroeconomic Overview 2Q26 and 1H26 Results
MACROECONOMIC OVERVIEW 2Q26 AND 1H26 RESULTS
Slide 2: Resilient macroeconomic performance despite uncertainties
RESILIENT MACROECONOMIC PERFORMANCE DESPITE UNCERTAINTIES GEORGIA’S ECONOMY STARTED 2026 WITH STRONG MOMENTUM, POSTING 7.9% GDP THE CURRENT ACCOUNT DEFICIT REMAINED LOW AT 3.8% OF GDP IN 1Q26, REFLECTING BROAD- GROWTH IN 1H26 BASED IMPROVEMENTS ACROSS ALL COMPONENTS Nominal GDP, GEL bln (LHS) GDP Pe
Slide 3: Sovereign ratings with favourable macro fundamentals
SOVEREIGN RATINGS WITH FAVOURABLE MACRO FUNDAMENTALS KEY RATINGS HIGHLIGHTS GENERAL FACTS RATING AGENCY RATING OUTLOOK AFFIRMED Ba2 Stable June 2026 BB Stable February 2026 Georgia BB Stable May 2026 GEORGIA IS FAVOURABLY PLACED AMONG PEERS FITCH RATING COUNTRY COUNTRY RATING OUTLOOK ▪ Area: 69,700
Slide 4: Georgia's key economic drivers
GEORGIA’S KEY ECONOMIC DRIVERS Top performer compared to peers across a wide range of international rankings Liberal ▪ Liberty Act (effective January 2014) ensures a credible fiscal framework; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%. economic policy ▪ Following the emergency c
Slide 5: Institutional oriented reforms
INSTITUTIONAL ORIENTED REFORMS OPEN BUDGET INDEX, 2023 | INTERNATIONAL ECONOMIC FREEDOM INDEX | 2026 (HERITAGE FOUNDATION) FDI REGULATORY RESTRICTIVENESS INDEX | BUDGET PARTNERSHIP (BUDGET TRANSPARENCY) 2024 (OECD) Georgia 1 Ireland 3 latvia 7 Sweden 3 Lithuania 15 Czechia 12 Moldova 5 Czechia 20 mo
Slide 6: Economic growth remains strong
ECONOMIC GROWTH REMAINS STRONG GEORGIA’S ECONOMY CONTINUED TO EXPAND IN 2025, WITH NOMINAL GDP EXCEEDING GEL 100 NOMINAL GDP STRUCTURE, 1Q26 BILLION Nominal GDP, GEL bln (LHS) GDP Per Capita, USD K (LHS) Real GDP, YoY % (RHS) 104.6 105 11.0% 10.6% 9.7% 11% 85 8% Public 7.8% Administration, Education
Slide 7: Unemployment rate at historical lows
UNEMPLOYMENT RATE AT HISTORICAL LOWS UNEMPLOYMENT REMAINS AT HISTORICAL LOWS AT 13.9% IN 2025 LABOUR FORCE STRUCTURE Unemployment rate Wage real growth rate, Y-o-Y Employed Unemployed Labor force Labour force participation rate,% 25% 21.9% 19.7% 19.5% 19.4% 60% 18.3% 20% 16.8% 17.0% 16.1% 16.7% 1,67
Slide 8: Inflation is expected to remain relatively high in 2026
INFLATION IS EXPECTED TO REMAIN RELATIVELY HIGH IN 2026 AMID GEOPOLITICAL UNCERTAINTIES HEADLINE INFLATION REACHED 5.5% IN JULY 2026, AVERAGING 5.2% IN 7M26 FOOD, TRANSPORT, AND UTILITIES WERE THE MAIN CONTRIBUTORS TO ANNUAL INFLATION Food and non-alcoholic beverages Alcoholic beverages and tobacco
Slide 9: Broad-based improvement keeps the current account deficit low
BROAD-BASED IMPROVEMENT ACROSS ALL COMPONENTS KEEPS THE CURRENT ACCOUNT DEFICIT LOW THE CURRENT ACCOUNT DEFICIT NARROWING TO -3.8% OF GDP IN 1Q26, DRIVEN BY BROAD-BASED EXPORT OF SERVICES INCREASED TO US$ 1.8 BILLION IN 1Q26 (+7.3% Y-O-Y), MAINLY DUE TO THE IMPROVEMENTS ACROSS ALL COMPONENTS INCREAS
Slide 10: Diversification of external earnings enhances resilience
DIVERSIFICATION OF THE EXTERNAL EARNINGS ENHANCES RESILIENCE TOTAL FX INFLOWS INCREASING BY 11.5% IN 1H26 DRIVEN BY HIGHER EXPORT AND REMITTANCES DOUBLE DIGIT GROWTH IN EXPORT, SUPPORTED BY THE DOMESTIC COMPONENT Export Remittances Copper ores Motor cars Ferro-alloys 77.8% Tourism revenues Nitrogeno
Slide 11: Export performance supported by strong domestic components
EXPORT PERFORMANCE IS SUPPORTED BY STRONG DOMESTIC COMPONENTS, WITH OIL MAKING A SIGNIFICANT CONTRIBUTION EXTERNAL TRADE BY PRODUCTS, 1H26, SHARE IN TOTAL EXTERNAL TRADE BY COUNTRIES, 1H26, SHARE IN TOTAL Export 3.9 USD BLN Import 9 USD BLN Export 3.9 USD BLN Import 9 USD BLN Motor cars-24.2% Motor
Slide 12: Tourism revenues recorded a modest decline
TOURISM REVENUES RECORDED A MODEST DECLINE, MAINLY DUE TO LOWER INFLOWS FROM THE MIDDLE EAST AMID THE GEOPOLITICAL TENSIONS TOURISM REVENUES DECREASED SLIGHTLY BY 2.0% IN 1H26 INTERNATIONAL VISITORS STRUCTURE IN 1H26 CIS, except Russia Russia EU* TOTAL INTERNATIONAL VISITORS REPORTED AT 2.7 MILLION
Slide 13: NBG accumulates reserves to record high levels
FAVOURABLE MACROECONOMIC CONDITIONS ALLOWED NBG TO ACCUMULATE RESERVES TO RECORD HIGH LEVELS THE NBG'S 25 BPS RATE HIKE WAS A SIGNAL AMID ELEVATED GEOPOLITICAL AND OIL PRICE UNCERTAINTY INTERNATIONAL RESERVES Official Reserve Assets, US$ mln Net Foreign Assets, US$ mln 7,000 12 INTERNATIONAL RESERVE
Slide 14: Loans by currencies and growth decomposition
-5% 10% 15% 20% 25% 0% 5% -5% 0% 5% 10% 15% 20% 25% 30% 35% Jun-18 Jun-19 Sep-18 Sep-19 Dec-18 Mar-19 Dec-19 Jun-19 Mar-20 Sep-19 Jun-20 LOANS BY CURRENCIES Dec-19 Sep-20 Mar-20 Dec-20 Jun-20 Business Loans Mar-21 Consumer Loans Georgia Capital PLC | Source: NBG Sep-20 Jun-21 Dec-20 Sep-21 Mar-21 De
Slide 15: Significant improvement in fiscal position
SIGNIFICANT IMPROVEMENT IN FISCAL POSITION, WITH DEBT AND FISCAL DEFICIT AT DECADE LOWS GENERAL GOVERNMENT DEBT-TO-GDP DECLINED FURTHER IN 2025, REACHING ITS LOWEST LEVEL SINCE 2014 GENERAL GOVERNMENT DEBT STRUCTURE General Government Debt, Total (% of GDP) General Government Debt, External (% of GD