Lion Finance Group Plc · LSE:BGEO
Lion Finance — Q1 2021 Earnings Presentation
87 slides from Lion Finance's earnings presentation, May 19, 2021
Slide 1: Investor Presentation 1Q21 Financial Results
Click to edit Master title style INVESTOR PRESENTATION 1Q21 Financial Results 19 May 2021 www.bankofgeorgiagroup.com
Slide 2: Disclaimer – Forward Looking Statements
Click DISCLAIMER to edit Master – FORWARD title styleLOOKING STATEMENTS 2 This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capi
Slide 3: Contents
Click CONTENTS to edit Master title style 3 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES
Slide 4: COVID-19 pandemic: vaccination and restrictions eased
VACINATION COMMENCED IN MARCH 2021 Click to edit Master title style 4 RESTRICTIONS GRADUALY EASED FROM FEBRUARY 2021 GOVERNMENT SAFETY MEASURES COVID-19 STATISTICS IN GEORGIA Source: www.stopcov.ge Georgia was among the first countries to introduce strict virus at 12:00, 18 May 2021 containment me
Slide 5: Tracking Georgia's Economic Recovery
Click -50% 0% 50% -100% 200% 150% 100% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 TRACKING Jul-20 Aug-20 Sep-20 Oct-20 48.2% Remmitances Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 to edit Master 145.4% Jan-20 Feb-20 Mar-20 Apr-20 May-20 GEORGIA’S Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Exports Nov-20 19.6%
Slide 6: Tracking Georgia's Economic Recovery: GDP
Click TRACKING to edit Master GEORGIA’S title style ECONOMIC RECOVERY 6 REAL GDP CONTRACTED BY 4.2% IN THE ECONOMIC GROWTH REBOUNDED TO 4.0% IN MARCH FIRST QUARTER OF 2021 2021, BEATING MARKET EXPECTATIONS Source: Geostat Exports were up 5.2% y-o-y, already approaching 2019 level 12% 8% 4.0% Imp
Slide 7: Georgia's Economic Outlook in 2021
Click to edit Master GEORGIA’S titleOUTLOOK ECONOMIC style IN 2021 7 GEORGIA'S ECONOMIC GROWTH FORECAST Source: Geostat, Galt & Taggart 10% Our brokerage and investment arm, Galt & Taggart’s forecasts: 7.4% 8% 6.4% 6.2% With a slow return of international tourism, 6% 4.8% 4.8% 5.0% real GDP grow
Slide 8: Contents
Click CONTENTS to edit Master title style 8 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES
Slide 9: Bank of Georgia Group at a Glance
Click BANKto OF editGEORGIA Master title GROUP style AT A GLANCE 9 A LEADING BANKING GROUP IN GEORGIA Top Systemically important financial institution in Georgia A leading market position by assets, loans and deposits RETAIL CORPORATE AND Strongest retail banking franchise: BANKING INVESTMENT
Slide 10: Strong Institutional Investors Support
Click to edit STRONG Master title style INSTITUTIONAL INVESTORS SUPPORT 10 TOP SHAREHOLDERS As of 31 Mar 2021 SHAREHOLDER STRUCTURE As of 31 Mar 2021 Rank Shareholder name Ownership 1 JSC Georgia Capital* 19.90% Unvested and unawarded shares 3% for management and employees 2 Fidelity Investments 6.5
Slide 11: Track Record of Delivering Strong Results
Click to edit TRACK Master RECORD OFtitle style STRONG RESULTS DELIVERING 11 Key medium-term targets remain unchanged Nominal Real 25.2% 26.4% 26.1% 27.0% 21.4% 18.9% ROAE 13.0% Loan book growth 17.4% 20%+ c.15% 15.9% 19.0% 22.0% 10.2% 2017 2018* 2019** 2020 2017 2018 2019 2020 ROBUST CAPITAL MANAGE
Slide 12: Strategic Focus: Bank of the Future
Click to edit Master STRATEGIC FOCUS title style 12 BANK OF THE FUTURE
Slide 13: The Most Popular Financial Mobile App
Click THEto edit POPULAR MOST Master title style MOBILE APP FINANCIAL 13 MBANK/IBANK STATISTICS Number of Active Users* Number of transactions THOUSANDS +3.6% MILLIONS +7.6% 22.2 760 787 18.3 20.6 665 714 620 13.6 14.3 19.5 21.2 17.2 12.5 13.3 1.1 1.0 1.1 1.1 0.9 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 1
Slide 14: Multichannel Retail Banking Performance
Click to edit RETAIL MasterMULTICHANNEL BANKING title style PERFORMANCE* 14 NUMBER OF TRANSACTIONS MILLIONS 787k 3,125 Share of 95.9% mBank/iBank active users** Express Pay terminals 94.2% 96.0% 95.1% 96.1% digital transactions +27.0% y-o-y -1.8% y-o-y 51.9 51.9 +3.6% q-o-q +3.5% q-o-q 48.3 46.8 2.5
Slide 15: Offloading to Digital Channels
Click to edit Master PRODUCTS title style OFFLOADING TO DIGITAL CHANNELS 15 CARDS LOANS DEPOSITS THOUSANDS THOUSANDS THOUSANDS 20.7 21 100% 12.5 9.8 12.2 60% 10 25% 11.9 11.6 90% 12 11.0 17.0 10.7 11.0 8.3 8.4 15.9 10.4 10.4 15.8 15.3 9.9 50% 16 14.8 80% 10 9.3 9.4 8 7.3 7.4 20% 14.2 14.2 8.9 13.2 6
Slide 16: Payments as a Daily Touchpoint with Customers
Click to edit Master PAYMENTS titleTOUCHPOINTS AS A DAILY style WITH CUSTOMERS 16 NUMBER OF PAYMENT VOLUME OF PAYMENT TRANSACTIONS TRANSACTIONS AT BOG TERMINALS AT BOG TERMINALS MILLIONS GEL MILLIONS 83 100 2,671 30k+ 2,555 Multifunctional POS terminals 62 1,937 27 27 23 742 705 650 2018 2019 2020 1
Slide 17: Remittances and Potential in Georgian Emigrants
Click to edit Master REMITTANCES ANDtitle style IN GEORGIAN EMIGRANTS POTENTIAL 17 MARKET POTENTIAL NUMBER OF RECEIVED REMITTANCES AT BOG THROUGH DIGITAL CHANNELS THOUSANDS c. 1.3 mln 350k 72 71.9 50% 63.1 Georgians living abroad in need Active customers 60.6 45% 62 58.0 of daily banking services 40
Slide 18: Loyalty Programme
Click to editPROGRAMME LOYALTY Master title style 18 PLUS LOYALTY PROGRAMME – ONE OF THE STRENGTHS OF BANKS OF GEORGIA c.1.4mln 130k+ GEL 855k +2.1% q-o-q active Loyalty loyalty points exchange worth of loyalty points programme members* operations per month exchange operations per month ADVANCED ANA
Slide 19: Customer Satisfaction
Click to edit Master CUSTOMER title style SATISFACTION 19 FOCUS ON INCREASING CUSTOMER SATISFACTION BY NPS* Engaging with customers proactively and responding in 49.3% real time 46.0% 42.3% Anticipating customer needs, wants, and future behavior 37.5% 36.6% 34.3% Harnessing strong human relati
Slide 20: Employee Empowerment
Click to edit Master EMPLOYEE title style EMPOWERMENT 20 Re-design of employee experiences High-trust environment New talent development strategy Values-based organisation Employees feel more engaged and enabled ENPS 58% 60% 74% High-Performing 74% High-Performing Organisations Benchmark Organisatio
Slide 21: High ESG Scores and More Focus on ESG Going Forward
Click HIGHtoESG editSCORES Master AND title MORE style FOCUS ON ESG GOING FORWARD 21 * ENVIRONMENT 3 SOCIAL 2 GOVERNANCE 5 ** Bank of Georgia falls into the highest scoring range relative to global peers CCC B BB BBB A AA AAA LAGGARD AVERAGE LEADER FTSE4GOOD Index INCLUDED IN THE GLOBAL RESPONSIBLE
Slide 22: Contents
Click CONTENTS to edit Master title style 22 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES
Slide 23: 1Q21 Key Results Highlights
Click 1Q21toKEY editRESULTS Master title HIGHLIGHTS style 23 ROAE Loan growth Deposit growth 1Q21 31 Mar 2021 31 Mar 2021 21.5% +11.1% y-o-y +29.2% y-o-y +2.9% q-o-q flat q-o-q CET 1 capital adequacy Liquidity coverage ratio Cost of credit risk 31 Mar 2021 31 Mar 2021 1Q21 11.2% 149.3% 0.8% Minimum
Slide 24: Profitability Within the Targeted Level
Click to edit Master PROFITABILITY titleTHE WITHIN style TARGETED LEVEL 24 ROBUST QUARTERLY PERFORMANCE TRACK RECORD OF STRONG PROFITABILITY The balance sheet has remained resilient against the backdrop of lower economic activity. On a constant currency basis, customer lending increased by 1.7% du
Slide 25: Loan and Deposit Portfolio Growth
Click to edit STRONG Master LOAN ANDtitle stylePORTFOLIO GROWTH DEPOSIT 25 LOAN PORTFOLIO DEPOSIT PORTFOLIO GEL MILLIONS GEL MILLIONS +2.9% -0.1% 1.7% +11.1% +29.2% -2.2% 7.1% 25.4% 14,192 14,601 14,020 14,003 13,144 11,931 10,836 10,077 9,398 8,571 59% 8,389 59% 8,134 8,500 61% 8,847 63% 8,166 62%
Slide 26: Well-Diversified Loan Book
Click to edit Master title WELL-DIVERSIFIED LOAN style BOOK 26 LOAN PORTFOLIO BREAKDOW | MAR-21 Gross Loans by segment Retail Banking Gross Loans Corporate and Investment Banking Bank of Georgia standalone by product Gross Loans by sectors Total: GEL 14.2bln Total: GEL 9.3bln Total: GEL 4.9bln Credi
Slide 27: Loan Portfolio Breakdown
Click LOANto PORTFOLIO edit MasterBREAKDOWN title style 27 RETAIL BANKING | MAR-21 CORPORATE AND INVESTMENT BANKING | MAR-21 JSC Bank of Georgia standalone JSC Bank of Georgia standalone GEL MILLIONS GEL MILLIONS 2.6% 2.8% 9,295 246 4,892 139 1.4% 3.0% 996 13 5,155 153 3,896 125 3.2% 2.2% 4,140 92 L
Slide 28: Strong Competitive Position
Click to edit STRONG Master titlePOSITION COMPETITIVE style 28 MARKET SHARE - GROSS LOANS MARKET SHARE - CUSTOMER DEPOSITS 39.5% 41.2% 38.8% 39.0% 38.5% 39.0% 38.9% 39.8% 34.9% 35.1% 36.3% 37.2% 37.3% 33.5% 34.9% 33.9% Dec-18 Dec-19 Dec-20 Mar-21 Dec-18 Dec-19 Dec-20 Mar-21 BOG Peer bank BOG Peer ba
Slide 29: Strong Underlying Performance Amid COVID-19 Impact
Click to edit STRONG Master titlePERFORMANCE UNDERLYING style AMID COVID-19 IMPACT 29 OPERATING INCOME NET NON-INTEREST INCOME GEL MILLIONS GEL MILLIONS -1.8% -2.4% 1,110 1,091 +10.6% 321 313 +18.0% 321 29% 313 29% 21 48 +1.2% 119 -7.2% 99 789 71% 778 71% 300 304 98 274 77 91 77 28% 98 33% 91 30% 18
Slide 30: Net Interest Margin
Click NETto edit Master INTEREST title style MARGIN 30 NET INTEREST MARGIN LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 5.6% 5.0% 11.7% 4.6% 10.5% 10.8% 10.4% 10.4% 4.4% 4.5% 4.6% 4.7% 4.7% 4.6% 4.5% 3.6% 3.8% 3.8% 3.0% 3.1% 2019 2020 1Q20 4Q20 1Q21 2019 2020 1Q20 4Q20 1Q21 Loan yield Cost of funds C
Slide 31: Focus on Efficiency and Stringent Cost Control
Click to edit FOCUS ON Master titleAND EFFICIENCY styleSTRINGENT COST CONTROL 31 COST TO INCOME RATIO OPERATING EXPENSES GEL MILLIONS +3.0% 37.8% 39.7% 38.6% 39.6% 35.4% 420 433 4 5 +1.3% 78 83 106 106 -9.7% 2019* 2020 1Q20 4Q20 1Q21 106 119 107 240 1 2 1 231 21 21 32 23 27 24 64 c.35% 57 60 2019* 2
Slide 32: Resilient Loan Portfolio Quality
Click to edit LOAN RESILIENT Master title styleQUALITY PORTFOLIO 32 COST OF CREDIT RISK RATIO LOAN PORTFOLIO QUALITY NPL coverage COVID-19 impact 92.7% 90.5% 80.9% 76.3% 77.5% recorded in 1Q20 NPL coverage adjusted for collateral value 7.4% 130.6% 129.9% 139.6% 128.8% 127.8% 3.8% 3.7% 3.6% 3.3% 1.8%
Slide 33: Strong Liquidity and Funding Positions
Click to edit STRONG Master title LIQUIDITY AND style FUNDING POSITIONS 33 LIQUIDITY COVERAGE AND NET STABLE NET LOANS TO CUSTOMER FUNDS AND DFIs FUNDING RATIOS JSC Bank of Georgia standalone (Basel III liquidity) 118.4% 115.5% 138.6% 137.5% 149.3% 133.6% 136.7% 132.5% 140.1% 103.2% 104.3% 120.1% 99
Slide 34: Well-Established Funding Structure
Click to edit Master title WELL-ESTABLISHED style STRUCTURE | MAR-21 FUNDING 34 INTEREST BEARING LIABILITIES WELL DIVERSIFIED INTERNATIONAL BORROWINGS Interest Bearing Liabilities GEL 19.7bln Other debt Others securities, borrowings, Debt Borrowings securities GEL GEL 13.7% 261mln, 471mln, issued 6.
Slide 35: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 35 NBG MEASURES AS A RESPONSE TO COVID-19 CAPITAL ADEQUACY RATIOS Combined buffer - the conservation buffer requirement of 2.5% of risk-weighted assets reduced to 0%; 17.4% 17.3% 17.6% 18.6% 15.3% 13.3% Pillar 2 requirements: 12.0%
Slide 36: Strong Internal Capital Generation
Click to edit STRONG Master title INTERNAL styleGENERATION CAPITAL 36 CAPITAL RATIOS EVOLUTION DURING 1Q21 Potential impact Capital New Tier 2 Capital 1Q21 GEL of additional ratios facility ratios profit Devaluation 10% GEL DEC-20 impact MAR-21 devaluation CET1 capital adequacy ratio 10.4% 1.2% -0.4
Slide 37: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 37 BOG EQUITY VS. CET1 REG. CAPITAL | MAR-20 RISK WEIGHTED ASSETS GEL MILLIONS GEL MILLIONS +3.0% % of RWAs 11.2% 2.2% 0.7% 1.8% 294 2,628 16,516 119 15,162 16,040 359 14,641 14,099 1,855 2.9% NBG Loan IP Other BOG Mar-20 Jun-20 Sep-20
Slide 38: Contents
Click CONTENTS to edit Master title style 38 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES
Slide 39: Georgia at a Glance
Click to editAT GEORGIA Master title style A GLANCE 39 GENERAL FACTS Area: 69,700 sq. km Population (2019): 3.7 million Life expectancy: 74 years Official language: Georgian Literacy: 100% Capital: Tbilisi Currency (code): Lari (GEL) ECONOMY SOVEREIGN CREDIT RATINGS Nominal GDP (Geos
Slide 40: Georgia's Key Economic Drivers
Click to edit Master GEORGIA’S title style KEY ECONOMIC DRIVERS 40 Top performer globally in WB Doing Business over the past 12 years Liberal economic Liberty Act ensures a credible fiscal and monetary framework policy Fiscal deficit/GDP capped at 3%; Government debt/GDP capped at 60% Business
Slide 41: Growth Oriented Reforms
Click to editORIENTED GROWTH Master title style REFORMS 41 EASE OF DOING BUSINESS | 2020 ECONOMIC FREEDOM INDEX | 2021 New Zealand 1 Source: WB-IFC Doing Business Report UK 7 Source: Heritage Foundation Singapore 2 Estonia 8 Denmark 4 Georgia 12 Top 7 in Europe region out USA 6 #1 in Europe and Cent
Slide 42: Diversified Economy
Click to edit Master DIVERSIFIED title style ECONOMY 42 GROSS DOMESTIC PRODUCT DIVERSIFIED NOMINAL GDP STRUCTURE | 2020 Source: Geostat, Galt & Taggart Source: Geostat Other Economy rebounded with 4.0% growth in March 2021, however in 1Q21 Entertainment 12.1% Trade 25 contraction was 4.2% reflecting
Slide 43: Capital and Productivity Main Engines of Growth
CAPITAL AND PRODUCTIVITY HAVE BEEN THE MAIN ENGINES OF Click to edit Master title style 43 GROWTH SINCE 2004 OVERALL CONTRIBUTION OF CAPITAL, LABOR, AND CONTRIBUTIONS OF CAPITAL, LABOR, AND TFP TO TOTAL FACTOR PRODUCTIVITY (TFP) TO GROWTH, GROWTH DURING PERIODS 2010-2020 Source: Geostat, Galt &Tagga
Slide 44: Further Job Creation Is Achievable
Click to editJOB FURTHER Master title style CREATION IS ACHIEVABLE 44 UNEMPLOYMENT RATE UP 0.9PPTS Y/Y TO HIRED WORKERS ON THE RISE 18.5% IN 2020 Source: Geostat Source: Geostat Note: Labor force statistics presented according to the updated ILO’s new standards 1,400 27.2% 27.2% 26.7% 26.4% 30% 1,20
Slide 45: Public Debt
Click to edit PUBLIC DEBTMaster title style 45 FISCAL DEFICIT BREAKDOWN OF THE PUBLIC DEBT Source: MoF, 2021 budget Source: MoF, as of December 2020 0% -2.0% -1.9% -2.4% -2.7% -2.1% -2% -3.1% -2.6% -1.7% -4.4% -4% -2.6% -2.3% External public debt -2.8% -6% Multilateral portfolio -5.3% -7.6% 55% weig
Slide 46: Investing in Infrastructure and Spending Low on Social
INVESTING IN INFRASTRUCTURE AND SPENDING LOW ON Click to edit Master title style 46 SOCIAL BUDGET EXPENDITURES EXPENDITURE BREAKDOWN: CURRENT VS. CAPITAL Source: MoF, 2021 budget Source: MoF, 2021 budget 20,000 50% 100% 81.7% 78.1% 80.0% 76.0% 72.5% 73.4% 80.0% 74.2% 73.1% 72.2% 75.1% 75.6% 34.8% 33
Slide 47: Diversified Foreign Trade
Click to edit Master DIVERSIFIED FOREIGNtitle TRADEstyle 47 IMPORTS OF GOODS AND SERVICES EXPORTS OF GOODS AND SERVICES Source: NBG – BOP statistics Source: NBG – BOP statistics 12 11.1 10.8 12 10.1 10 9.2 9.3 9.4 9.5 8.7 8.5 2.2 2.4 9.0 10 8.9 1.7 7.6 7.5 8.0 1.4 1.6 2.0 1.4 6.2 1.0 8 1.7 8 7.2 0.8
Slide 48: Diversified Sources of Capital
Click to edit Master DIVERSIFIED SOURCEStitle style OF CAPITAL 48 FOREIGN DIRECT INVESTMENTS TOURISM REVENUES Source: Geostat Source: NBG, Geostat 3.5 Tourism revenues down 87.5% y/y in 1Q21 18.3% 18.7% 20% 2.0 16% 16.6% 12.2% 3.0 13.9% 11.6% 10.9% 16% 10.4% 12.5% 1.5 12% 2.5 10.0% 10.1% 12% 7.1% 7.
Slide 49: Current Account Deficit Supported by FDI
Click to editACCOUNT CURRENT Master title styleSUPPORTED BY FDI DEFICIT 49 CURRENT ACCOUNT BALANCE (% OF GDP) Source: NBG, Geostat 30% Goods, net Services, net Income, net Transfers, net CA deficit net FDI 20% 10.5% 6.5% 8.1% 9.5% 8.2% 6.0% 4.6% 5.3% 5.5% 5.9% 10% 3.7% 0% -10% -5.6% -6.8% -5.5% -9.8
Slide 50: Inflation Targeting
-2% 0% 2% 4% 6% 8% 100 0 20 40 60 80 120 Jan-14 Click Jan-14 Apr-14 Apr-14 Aug-14 Aug-14 Dec-14 Dec-14 Apr-15 Apr-15 Aug-15 Jul-15 Nov-15 Energy Nov-15 INFLATION Headline inflation Mar-16 Mar-16 Jul-16 Jul-16 Nov-16 Oct-16 ANNUAL INFLATION Mar-17 Feb-17 Jun-17 Jun-17 Oct-17 Sep-17 Non-energy to edit
Slide 51: International Reserves at Adequate Level
Click to edit Master INTERNATIONAL title style RESERVES AT ADECUATE LEVEL 51 INTERNATIONAL RESERVES CENTRAL BANK’S INTERVENTIONS Source: NBG Source: NBG International reserves up 20.6% y/y to US$ 4.1bn in 1Q21 4.0 250 220 NBG sold US$ 242.9mn in January-April, 2021 200 200 US$ sale 174 3.5 100 120 1
Slide 52: Floating Exchange Rate Policy Priority
Click to edit EXCHANGE FLOATING Master titleRATE style- POLICY PRIORITY 52 FX RESERVES NOMINAL AND REAL EFFECTIVE EXCHANGE RATE Source: NBG (JAN2014=100) Source: NBG 5.0 1.42 1.36 1.6 130 130 1.30 1.25 1.31 1.24 1.27 1.28 1.16 1.23 1.29 1.4 4.0 120 120 1.03 1.2 3.9 4.1 110 -7.2% y/y110 3.0 3.5 1.0 3
Slide 53: Growing and Well-Capitalised Banking Sector
Click to edit AND GROWING Master title style WELL-CAPITALISED BANKING SECTOR 53 SUMMARY BANKING SECTOR ASSETS, LOANS AND DEPOSITS Source: NBG Prudent regulation and oversight ensuring financial stability 24.7% CAGR 60 56.9 Strong resilience towards both domestic and external shocks without singl
Slide 54: Credit Growth Dynamics
Click to edit CREDIT Master GROWTH title style DYNAMICS 54 BANKING SECTOR CORPORATE & RETAIL LOANS MORTGAGE LOANS TO GDP Source: NBG, Geostat Source: NBG 70% 119,300 Retail loans to GDP 8,624 8,768 106,370 120,500 60% Corporate loans to GDP 39% 40% 7,048 92,980 29,600 28,900 50% 33% 6,031 31,720 33%
Slide 55: Georgia vs Region: FX, Inflation, Policy Rate
Click to editVS GEORGIA Master title REGION: FX,style INFLATION, POLICY RATE 55 CURRENCY WEAKENING VS. US$ Source: Bloomberg Note: +/- appreciation/depreciation 1.6% 0.4% period 1-January – 31-March, 2021 -0.2% -0.8% -1.6% -1.8% -4.1% -4.6% -4.9% -12.7% Euro Ukraine Armenia Azerbaijan Moldova Russia
Slide 56: Recent Trend in Real GDP and Its Components
Click to edit RECENT Master TREND titleGDP - REAL style AND ITS COMPONENTS 56 REAL GDP GROWTH BY QUARTER, % CHANGE YoY CONTRIBUTION TO REAL GDP GROWTH Source: Geostat Source: Geostat, Galt & Taggart 12% 15% 6.8% 8% 7.2% 6.0% 10% 4.5% 4.4% 5.2% 5.4% 4.6% 4% 2.2% 2.3% 5% 4.5% 4.1% 3.6% 4.8% 3.4% 3.2%
Slide 57: Goods Trade Deficit Reduced
-800 -600 -400 200 0 400 600 800 -200 -100 -400 200 100 400 500 -300 0 -200 300 Click Jan-18 Jan-18 Feb-18 Feb-18 Mar-18 Mar-18 Apr-18 Apr-18 May-18 May-18 Jun-18 Jun-18 GOODS Jul-18 Jul-18 Aug-18 Aug-18 Sep-18 Sep-18 Oct-18 Oct-18 to edit Nov-18 Nov-18 Dec-18 Dec-18 Jan-19 Jan-19 Feb-19 Feb-19 Mar-
Slide 58: Diversified Economic Linkages and Closer Ties with EU
BENEFITS FROM DIVERSIFIED ECONOMIC LINKAGES AND Click to edit Master title style 58 CLOSER TIES WITH EU EXPORTS, TOURISM, REMITTANCES AND ECONOMIC LINKAGES BREAKDOWN, 2020 FDI BY COUNTRY, 2020 No single country accounts for more than 20% in any particular category, minimising potential negative impa
Slide 59: Contents – Appendices: Segment Results
Click CONTENTS to edit Master title style 59 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | SEGMENT RESULTS
Slide 60: Retail Banking Highlights
Click RETAIL to edit BANKING Master title HIGHLIGHTS style 60 1 2 3 Segments Mass Retail Mass Affluent MSME Clients 2,345 k 63 k 233 k Loans GEL 2,995 mln GEL 2,819mln GEL 3,480 mln Deposits GEL 3,555mln GEL 2,881 mln GEL 979 mln 1Q21 profit GEL 33 mln GEL 23 mln GEL 21 mln P/C ratio 2.1 4.7 1.5 Bra
Slide 61: Retail Banking Highlights: Income Statement
Click to edit RETAIL Master BANKING title style HIGHLIGHTS 61 INCOME STATEMENT HIGHLIGHTS Change Change GEL thousands unless otherwise noted 1Q21 1Q20 4Q20 y-o-y q-o-q Net interest income 131,448 118,266 11.1% 125,969 4.3% Net fee and commission income 37,385 29,398 27.2% 34,660 7.9% Net foreign cur
Slide 62: Retail Banking Loans and Deposits
Click to edit RETAIL Master BANKING title style LOANS AND DEPOSITS 62 MARKET SHARE – LOANS TO INDIVIDUALS* MARKET SHARE – DEPOSITS OF INDIVIDUALS* 38.8% 38.0% 40.3% 40.3% 40.1% 37.5% 37.7% 36.9% Dec-18 Dec-19 Dec-20 Mar-21 Dec-18 Dec-19 Dec-20 Mar-21 RETAIL BANKING LOANS RETAIL BANKING DEPOSITS +3.6
Slide 63: Retail Banking Loan Yield, Cost of Deposits and NIM
Click to edit RETAIL Master BANKING titleYIELD, LOAN style COST OF DEPOSITS AND NIM 63 RETAIL BANKING LOAN YIELD I QUARTERLY RETAIL BANKING COST OF DEPOSITS I QUARTERLY 15.7% 15.4% 15.2% 5.7% 6.0% 5.9% 11.8% 11.2% 11.1% 6.8% 6.0% 6.1% 2.6% 2.9% 2.7% 1.3% 1.5% 1.3% Loan Yield Loan yield, GEL Loan yie
Slide 64: Retail Banking Loan Portfolio Composition
Click to edit RETAIL MasterLOAN BANKING title PORTFOLIO style COMPOSITION 64 RETAIL BANKING CLIENT DATA MORTGAGE LOANS DOLLARISATION Operating Data, GEL mln Mar-21 Dec-20 Dec-19 Dec-18 Number of total Retail clients, of which: 2,641,237 2,616,480 2,540,466 2,440,754 Number of Solo clients 62,556 60,
Slide 65: Diversified Retail Portfolios and Income Streams
Click to edit Master DIVERSIFIED RETAILtitle style PORTFOLIOS AND INCOME STREAMS 65 BALANCE SHEET | MAR-21 INCOME STATEMENT | 1Q21 JSC Bank of Georgia Standalone JSC Bank of Georgia Standalone Total Loans Net Interest Income GEL 9,295mln GEL 131mln Mass Retail Mass Retail (GEL 55mln) 32% (GEL 2,995m
Slide 66: CIB Highlights
Click CIB to edit Master title style HIGHLIGHTS 66 INCOME STATEMENT HIGHLIGHTS Change Change GEL thousands unless otherwise noted 1Q21 1Q20 4Q20 y-o-y q-o-q Net interest income 72,532 69,341 4.6% 66,736 8.7% Net fee and commission income 9,655 8,955 7.8% 10,933 -11.7% Net foreign currency gain 4,521
Slide 67: CIB Loan Book and Deposits
Click CIB to editBOOK LOAN Master ANDtitle style DEPOSITS 67 MARKET SHARE – LOANS TO LEGAL ENTITIES* MARKET SHARE – DEPOSITS OF LEGAL ENTITIES* 37.3% 34.1% 32.0% 32.3% 31.0% 30.3% 30.9% 28.8% Dec-18 Dec-19 Dec-20 Mar-21 Dec-18 Dec-19 Dec-20 Mar-21 CIB NET LOANS CIB NET DEPOSITS -4.2% +1.9% GEL MILLI
Slide 68: CIB Loan Book and Deposits
Click CIB to editBOOK LOAN Master ANDtitle style DEPOSITS 68 HIGHLIGHTS GROSS LOAN BOOK BY SECTOR | MAR-21 Top 10 CIB Health & borrowers – Leading corporate bank in Georgia Mining & quarrying social work Other 29.2% of CIB 3.6% 2.8% 16.1% Manufacturing loan book Integrated client coverage in key
Slide 69: CIB Loan Yield, Cost of Deposits and NIM
Click CIB to editYIELD, LOAN Master titleOF COST style DEPOSITS AND NIM 69 CIB LOAN YIELD I QUARTERLY CIB COST OF DEPOSITS I QUARTERLY 13.7% 12.7% 12.2% 8.1% 7.3% 7.8% 8.9% 8.5% 8.6% 7.8% 7.6% 7.6% 4.7% 4.9% 3.7% 1.6% 1.8% 1.5% Loan Yield Loan yield, GEL Loan yield, FC Cost of deposits Cost of depos
Slide 70: Wealth Management and Investment Banking
Click to edit WEALTH Master title style MANAGEMENT AND INVESTMENT BANKING 70 WEALTH MANAGEMENT GALT & TAGGART STRONG REGIONAL PRESENCE LARGEST INVESTMENT BANK IN GEORGIA Israel (2008), UK (2010), Hungary (2012), BROKERAGE Turkey (2013) Leading brokerage house in the region Exclusive part
Slide 71: Regional Leading Franchise
Click to editREGIONAL LEADING Master title style FRANCHISE 71 GROWTH IN AUM DIVERSIFIED CUSTOMER BASE ACROSS GEL MILLIONS +14.3% MULTIPLE GEOGRAPHIES +11.6% Other 14% 3,091 2,704 2,534 2,740 2,769 UK 942 1,043 1,157 1,432 3% 961 Georgia 1,762 1,573 1,697 1,612 1,659 39% Israel Mar-20 Jun-20 Sep-20 D
Slide 72: Galt & Taggart Brokerage – Online Brokerage Driving Growth
GALT & TAGGART BROKERAGE - ONLINE BROKERAGE Click to edit Master title style 72 DRIVING GROWTH GALT & TAGGART BROKERAGE – GROSS FOCUS ON DIGITALISING BROKERAGE REVENUES AND NET MARGINS* OFFERINGS GEL MILLIONS NET MARGIN 44.4% 53.3% 49.9% 54.4% 54.7% SIGNIFICANT MILESTONES TOWARDS DIGITALISATION ACHI
Slide 73: Digital Area Ecosystem Overview
Click to edit DIGITAL Master AREA title style ECOSYSTEM OVERVIEW 73
Slide 74: Digital Area Ecosystem Overview
Click to edit DIGITAL Master AREA title style ECOSYSTEM OVERVIEW 74 SINCE JUNE 2019 COMING SOON Extra.ge – launch of web platform Extra.ge – search and filtering improvements. Website and mobile app redesign Extra.ge – largest e-commerce marketplace Extra.ge – delivery price automatic calcul
Slide 75: Contents – Appendices: Corporate Governance
Click CONTENTS to edit Master title style 75 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | CORPORATE GOVERNANCE
Slide 76: Board of Directors
Click BOARD to edit OFMaster DIRECTORS title style 76 ROBUST CORPORATE GOVERNANCE BASED ON UK CORPORATE GOVERNANCE CODE Neil Janin, Independent Non-Executive Chairman Archil Gachechiladze, Chief Executive Officer Experience: formerly Director at McKinsey & Company in Experience: with the Group since
Slide 77: Highly Experienced Management Team
Click HIGHLY to edit EXPERIENCED Master title style MANAGEMENT TEAM 77 SENIOR EXECUTIVE COMPENSATION POLICY APPLIES TO TOP EXECUTIVES AND ENVISAGES LONG-TERM DEFERRED AND DISCRETIONARY AWARDS OF SECURITIES AND NO CASH BONUSES TO BE PAID TO SUCH EXECUTIVES Archil Gachechiladze, Chief Executive Office
Slide 78: Highly Experienced Management Team
Click HIGHLY to edit EXPERIENCED Master title style MANAGEMENT TEAM 78 Etuna Iremadze, Deputy CEO, Premium Business Banking Zurab Masurashvili, Head of SME Business Banking With the Group since 2006. Around 20 years of experience in financial With the Group since 2015. Extensive experience in financ
Slide 79: Contents – Appendices: Financial and Operating Information
Click CONTENTS to edit Master title style 79 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q21 RESULTS GEORGIAN MACRO OVERVIEW APPENDICES | FINANCIAL AND OPERATING INFORMATION
Slide 80: Group Income Statement
Click GROUP to edit INCOME MasterSTATEMENT title style 80 Change Change GEL thousands, unless otherwise noted 1Q21 1Q20 4Q20 y-o-y q-o-q Interest income 428,580 388,326 10.4% 420,398 1.9% Interest expense (216,248) (191,246) 13.1% (218,802) -1.2% Net interest income 212,332 197,080 7.7% 201,596 5.3%
Slide 81: Group Balance Sheet
Click GROUP to edit BALANCE Master title SHEETstyle 81 Change Change GEL thousands, unless otherwise noted Mar-21 Mar-20 Dec-20 y-o-y q-o-q Cash and cash equivalents 2,361,663 1,507,142 56.7% 1,970,955 19.8% Amounts due from credit institutions 2,200,803 1,954,218 12.6% 2,016,005 9.2% Investment sec
Slide 82: BNB Financial Highlights
Click BNB toFINANCIAL edit MasterHIGHLIGHTS title style 82 INCOME STATEMENT HIGHLIGHTS Change Change 1Q21 1Q20 4Q20 GEL thousands, unless otherwise noted y-o-y q-o-q Net interest income 8,347 9,469 -11.8% 8,888 -6.1% Net fee and commission income 1,570 1,703 -7.8% 1,268 23.8% Net foreign currency ga
Slide 83: Key Ratios
Click KEY toRATIOS edit Master title style 83 1Q21 1Q20 4Q20 Profitability ROAA, annualised 2.5% -2.1% 2.4% ROAE, annualised 21.5% -18.6% 21.3% RB ROAE 20.7% -25.5% 22.0% CIB ROAE 24.1% -10.6% 20.7% Net interest margin, annualised 4.5% 5.0% 4.4% RB NIM 4.6% 4.9% 4.5% CIB NIM 3.6% 4.0% 3.3% Loan yiel
Slide 84: Key Ratios
Click KEY toRATIOS edit Master title style 84 1Q21 1Q20 4Q20 Liquidity NBG liquidity coverage ratio (minimum requirement 100%) 149.3% 121.2% 138.6% Liquid assets to total liabilities 34.7% 30.5% 33.5% Net loans to client deposits and notes 104.3% 121.3% 101.2% Net loans to client deposits and notes
Slide 85: Key Operating Data
Click KEY toOPERATING edit Master DATA title style 85 Mar-21 Mar-20 Dec-20 Selected operating data: Total assets per FTE 3,054 2,676 2,993 Number of active branches, of which: 211 233 211 - Express branches (including Metro) 105 124 105 - Bank of Georgia branches 95 97 95 - Solo lounges 11 12 11 Num
Slide 86: Key Ratio Definitions
Click KEY toRATIO edit Master DEFINITIONS title style 86 Cost of funds Interest expense of the period divided by monthly average interest bearing liabilities; Cost of credit risk Expected loss on loans to customers and finance lease receivables for the period divided by monthly average gross loa
Slide 87: Company Information
Click COMPANY to edit Master INFORMATION title style 87 Registered Address Auditors 84 Brook Street Ernst & Young LLP London W1K 5EH 25 Churchill Place United Kingdom Canary Wharf Registered under number 10917019 in England and Wales London E14 5EY United Kingdom Secretary Link Company Matters Limit