http://bankofgeorgia.ge/en/ir/shareholder-information/analyst-corporate-advis

Bank of Georgia is Georgia’s is the leading bank in Georgia, with more than a third of the market share in Georgia based on total assets, total loans, total deposits and total shareholders’ equity. The bank offers a broad range retail banking, corporate banking, wealth management, brokerage and insurance services to its clients. As of 31 March 2012, the Bank served approximately one million client accounts through one of the largest distribution networks in Georgia, with 164 branches, including full-service flagship branches service centres and smaller-scale outlets, the country’s largest ATM network, comprising 431 ATMs, 104 self service terminals and a full-service remote banking platform and a modern call center.

Selected key elements of the Bank of Georgia’s strategy are to maintain its leading position in the growing and still under-penetrated Georgian banking market, focus on profitable growth, increase the Bank's loan portfolio while maintaining asset quality, and to capture growth and synergies in the Georgian insurance, healthcare and affordable housing sectors.

Bank of Georgia’s UK incorporated holding company Bank of Georgia Holdings plc is listed on the main market of the London Stock Exchange (BGEO:LN). Bank of Georgia remains to be the only Georgian entity to be rated by all three global rating agencies: ‘BB-/B’ from Standard & Poor’s, ‘B1/NP’ (FC) & ‘Ba3/NP’ (LC) from Moody’s and ‘BB-/B’ from Fitch Ratings.

JSC Bank of Georgia’s UK incorporated holding company Bank of Georgia Holdings PLC is listed on the main market of the London Stock Exchange (BGEO LN) since February 2012

Shares -Bank on Georgia
Sector leader primed for home market growth


A bull run in Bank of Georgia (BGEO) looks set to continue as the government ramps up infrastructure spend. This spend has the potential to create a multiplier effect as a portion of every Georgian lari spent by the state finds its way into the pockets of consumers who in turn spend a large part of what they earn.

The £910 million cap is plugged into the former Soviet Union state on many levels, owning 33.8% of its banking assets, holding a 32.5% share of all lending and 30.4% of deposits. This puts Bank of Georgia in a prime position to benefit from a significant uplift in the economy with the World Bank estimating 6.3% growth in each of the next two years, more than double 2013’s 2.5% gain, when output dipped amid political uncertainty.

BOG buys out minority shareholder of MFC

RNS


RNS Number : 4812F

Bank of Georgia Holdings PLC

25 April 2014




London, 25 April 2014



Bank of Georgia buys-out minority shareholder of My Family Clinic



Bank of Georgia Holdings PLC ("BGH"), the holding company of JSC Bank of Georgia ("the Bank") Georgia's leading bank, announces that JSC Insurance Company Aldagi ("Aldagi"), the Bank's insurance and healthcare subsidiary, has completed a buy-out of a 49% minority shareholder of its healthcare subsidiary My Family Clinic ("MFC"). Aldagi has held a 51% controlling interest in MFC since December 2011. Following the transaction, Aldagi's healthcare business consists of its wholly-owned subsidiary My Family Clinic (with 749 hospital beds in Georgia) and wholly-owned subsidiary Unimed (with 1,158 hospital beds in Georgia), both of which are leading healthcare providers in the country.



"I am pleased to announce this buy-out. The acquisition of the remaining stake in MFC will allow us to proceed with the integration of MFC and Unimed, extracting synergies and further strengthening Aldagi's position in the Georgian healthcare market. The buy-out of a 49% minority shareholder of MFC gives us flexibility in executing our growth strategy and an opportunity to expand our regional footprint through investments into development projects via MFC", commented Murtaz Kikoria, Aldagi CEO

Bank of Georgia Announces Q1 2014 Results

Business highlights

o Retail Banking continues to deliver strong franchise growth, supported by the successful roll-out of the Express Banking strategy, adding 1,423 Express Pay Terminals and 513,707 Express Cards since the launch of the Express Banking service. Retail Banking's net loan book grew 21.1% and client deposits 24.9% y-o-y.

o Corporate Banking's net loan book increased 7.8% to GEL 1,715.5 but decreased 5.7% q-o-q. Corporate Banking Cost of Deposits decreased markedly from 5.7% in Q1 2013 to 3.2% in Q1 2014.

o Investment Management's Assets under Management (AUM) increased by 14.5% y-o-y to GEL 702.7 million as of 31 March 2014. Since the launch of the Certificate of Deposit (CD) programme in January 2013, the amount of CDs issued to Investment Management clients reached GEL 239.0 million, as of 31 March 2014

o The Group's insurance and healthcare business, reported GEL 6.0 million Q1 2014 profit, up 14.6% y-o-y and expanded its healthcare business through acquisitions, adding 578 hospital beds to a total of 1,907

o Affordable Housing's second housing project is near completion and the construction of two new housing projects is underway. Net profit from the Bank's affordable housing business totalled GEL 4.2 million in Q1 2014, reflecting the partial recognition of revenue from its second project as it nears completion.





http://www.moneyam.com/action/news/showArticle?id=4807429

Bank of Georgia: Numis downgrades from buy to hold with a target price of 2708p.

Director Deals - Bank of Georgia Holdings PLC (BGEO)

BFN

Kim Bradley, Non Executive Director, bought 1,250 shares in the company on the 10th June 2014 at a price of 2459.00p. The Director now holds 1,250 shares representing 0.00% of the shares in issue.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

Bank of Georgia: Peel Hunt increases target price from 2416p to 2600p and reiterates a hold recommendation.

Half Yearly Report

HIGHLIGHTS



Bank of Georgia Holdings PLC (LSE: BGEO LN), the holding company of Georgia's leading bank JSC Bank of Georgia (the "Bank") and its subsidiaries (the "Group"), announced today the Group's 1H 2014 and Q2 2014 consolidated results reporting a record half-year profit for 1H 2014 of GEL 112.0 million (US$63.3 million/GBP 37.2 million) and record earnings per share of GEL 3.15 (US$1.78 per share/GBP 1.05 per share). The Bank also reported Q2 2014 profit of GEL 58.3 million (US$33.0 million/GBP 19.4 million), or GEL 1.64 per share (US$0.93 per share/GBP 0.54 per share). Unless otherwise mentioned, comparisons are with the first half of 2013. The results are based on IFRS, are unaudited and derived from management accounts.



§ Strong profit momentum maintained

o Net Interest Margin (NIM) of 7.3%, compared to 7.8% in 1H 2013

§ Q2 2014 NIM of 7.3%, compared to 7.9% in Q2 2013 and 7.4% in Q1 2014

o Revenue increased by 7.3% y-o-y to GEL 281.5 million in 1H 2014

§ Q2 2014 revenue of GEL 144.2 million, up 3.2% y-o-y and 5.0% q-o-q.

o Cost to Income ratio stood at 43.8% in 1H 2014 compared to 41.7% in 1H 2013

§ Q2 2014 Cost to Income ratio stood at 44.6% compared to 39.9% in Q2 2013 and 43.0% in Q1 2014

o Profit for 1H 2014 increased to GEL 112.0 million, up 17.7% y-o-y

§ Profit increased to GEL 58.3 million in Q2 2014, up 9.8% y-o-y and up 8.7% q-o-q

o Earnings per share (EPS) increased by 16.7% to GEL 3.15 in 1H 2014 compared to GEL 2.70 in 1H 2013

§ Q2 2014 EPS stood at GEL 1.64, up 8.6% on both a y-o-y and q-o-q basis

o Return on Average Assets (ROAA), adjusted for impairment* stood at 3.5% in 1H 2014 largely flat on a year-on-year basis

§ ROAA, adjusted for impairment stood at 3.7% in Q2 2014, compared to 3.8% in Q2 2013 and 3.3% in Q1 2014

o Return on Average Equity (ROAE), adjusted for impairment stood at 18.7% in 1H 2014, compared to 17.6% in 1H 2013

§ ROAE, adjusted for impairment stood at 19.7% in Q2 2014 compared to 19.3% in Q2 2013 and 17.7% in Q1 2014

§ Balance sheet strength supported by solid capital and liquidity positions and declining Cost of Funding

o Net loan book increased by 17.2% y-o-y (up 4.9% q-o-q), while client deposits increased by 7.4% y-o-y (up 0.3% q-o-q)

o Cost of Client Deposits decreased to a record low of 4.4% in 1H 2014 from 6.2% in 1H 2013. Q2 2014 Cost of Client Deposits stood at 4.3% down from 5.9% in Q2 2013 and 4.6% in Q1 2014. Loan Yields also declined to 14.7% from 16.9% in 1H 2013. Quarterly loan yields stood at 14.5% in Q2 2014 compared to14.9% in Q1 2014 and 17.0% in Q2 2013

o Cost of credit risk improved significantly in 1H 2014 to GEL 27.2 million from GEL 36.3 million in 1H 2013. This represents an annualised Cost of Risk ratio of 1.0%.

o High liquidity maintained with 27.6% of total assets made up of cash and cash equivalents, amounts due from credit institutions, the NBG CDs, Georgian government treasury bills and bonds and other high quality liquid assets as of 30 June2014. Liquidity ratio, as per National Bank of Georgia (NBG) requirements, stood at 38.1% against the regulatory minimum of 30%

o As of 30 June 2014, Net Loans to Customer Funds and DFI ratio stood at a healthy level of 100.3% compared to 96.2% as of 31 December 2013 and 96.4% as of 31 March 2014. The Net Loans to Customer Funds ratio stood at 119.0% compared to 113.0% as of 31 December 2013and 113.8% as of 31 March 2014

o BIS Tier I capital adequacy ratio stood at 22.5% compared to 22.9% a year ago.

o NBG (Basel 2/3) Tier I capital adequacy ratio stood at 10.8% as at 30 June 2014 compared to 13.1% as at 31 December 2014 (see Annex I on page 44 for more information)

o Book value per share increased by 13.1% y-o-y to GEL 34.95 (US$19.76/GBP 11.61)

o Balance Sheet leverage remained largely flat y-o-y at 4.3 times





*Adjusted for one-off impairment of BG Bank in Ukraine

§ Business highlights

o Retail Banking continues to deliver strong franchise growth, supported by the Express Banking strategy, adding 2,038 Express Pay Terminals and 613,159 Express Cards since the launch of the Express Banking service. Retail Banking's net loan book grew 21.4% y-o-y and stood at GEL 1,754.2 million, while client deposits increased by 22.5% y-o-y to GEL 1,134.2 million

o Corporate Banking's net loan book growth rate picked up in Q2 2014, increasing by 8.1% y-o-y to GEL 1,802.8 as of 30 June 2014. Corporate Banking Cost of Deposits decreased markedly from 5.5% in 1H 2013 to a record low 3.0% in 1H 2014

o Investment Management's Assets under Management (AUM*) increased by 15.9% y-o-y to GEL 901.0 million as of 30 June 2014. Since the launch of the Certificate of Deposit (CD) programme in January 2013, the volume of CDs issued reached GEL 314.0 million, as of 30 June 2014

o The Group's insurance and healthcare business reported GEL 11.1 million profit (GEL 11.4 million in 1H 2013). The Group's healthcare business reported a GEL 6.2 million 1H 2014 profit (GEL 2.5 million in 1H 2013) and expanded its healthcare business through acquisitions to 36 healthcare facilities and 1,892 hospital beds. The market share of the Group's healthcare business grew from 14.3% as of 31 December 2013 to 19.9% as of 30 June 2014 in terms of hospital beds, while the health insurance business of the Group accounted for 37.6% of the total health insurance sector of Georgia based on gross premiums written as of 31 March 2014, compared to 31.1% as of 31 December 2013

o Affordable Housing completed its second housing project and the construction of two new housing projects is underway. Net profit from the Bank's Affordable Housing business totalled GEL 6.2 million in 1H 2014, reflecting the recognition of major part of the revenue from the completed second project





http://www.moneyam.com/action/news/showArticle?id=4872870

Shares - higher growth is anticipated on the back of 6% GDP growth in the former Soviet state this year. One catalyst could be the proposed initial public offering of its healthcare business next year.

BOG's healthcare subsidiary acquires new hospital
RNS
RNS Number : 4709T
Bank of Georgia Holdings PLC
06 October 2014







London, 6 October 2014



Bank of Georgia's healthcare subsidiary acquires a new hospital



Bank of Georgia Holdings PLC ("BGH"), the holding company of JSC Bank of Georgia ("the Bank"), Georgia's leading bank, announces that JSC Evex Medical Corporation ("Evex"), the Bank's healthcare subsidiary, has acquired 100% equity interest in a 60-bed hospital in Tbilisi providing a wide-range of in-patient and out-patient services with particular expertise in traumatology.



The acquisition of this new hospital is in line with the Bank's previously announced strategy to scale up its healthcare business through targeted hospital acquisitions focusing on Tbilisi. Following the acquisition, the Bank's healthcare subsidiary has 38 healthcare facilities and 2,140 beds in Georgia.



"I am very pleased to announce one more important acquisition, which further strengthens our healthcare franchise in the capital city. I would like to congratulate our healthcare team on the completion of the transaction, which increases our national market share by hospital beds to 22.5% from 14.3% at the beginning of the year," commented Irakli Gilauri, Chief Executive Officer of Bank of Georgia.



"The addition of another leading hospital complements our current portfolio of healthcare facilities in Tbilisi, enabling us to tap a new segment of patientsand offering significant opportunities for cost synergies that our experienced team will work to deliver over the next few months," commented Murtaz Kikoria, Chairman of the board of directors, Evex.

Bank of Georgia: Numis upgrades from hold to buy with a target price of 2708p

3rd Quarter Results

Business highlights

o Retail Banking continues to deliver strong franchise growth, supported by the Express Banking strategy, adding 2,217 Express Pay Terminals and 670,553 Express Cards since the launch of the Express Banking service. Retail Banking's net loan book grew 21.9% y-o-y and stood at GEL 1,858.7 million, while client deposits increased by 23.0% y-o-y to GEL 1,193.8 million

o Corporate Banking's net loan book growth rate picked up in Q3 2014, increasing by 11.7% y-o-y to GEL 1,870.1 as of 30 September 2014. Corporate Banking Cost of Deposits decreased markedly from 5.0% in 9M 2013 to a record low 2.9% in 9M 2014. Pressure on Corporate Banking NIM continued

o Investment Management's Assets under Management (AUM*) increased by 20.4% y-o-y to GEL 932.7 million as of 30 September 2014. Since the launch of the Certificate of Deposit (CD) programme in January 2013, the volume of CDs issued reached GEL 376.2 million, as of 30 September 2014. Net fee and commission for Investment Management increased to GEL 8.5 million in 9M 2014 from GEL 1.0 million in 9M 2013

o The Group's healthcare business, which includes healthcare services and health insurance, reported a GEL 13.2 million 9M 2014 profit (GEL 11.3 million in 9M 2013). Profit from healthcare services increased to GEL 10.6 million from GEL 4.2 million in 9M 2013, while health insurance profit decreased from GEL 7.1 million in 9M 2013 to GEL 2.7 million in 9M 2014. The Group's healthcare business operates 38 healthcare facilities and 2,140 hospital beds as of 30 September 2014. The market share of the Group's healthcare business grew from 14.3% as of 31 December 2013 to 22.5% as of 30 September 2014 in terms of hospital beds, while the health insurance business of the Group accounted for 37.0% of the total health insurance sector of Georgia based on gross premiums written as of 30 June 2014, compared to 28.9% as of 31 December 2013

o Affordable Housing completed its second housing project and the construction of four new housing projects is underway. 26% of apartments have already been sold in the newest project launched in September 2014. 39% of apartments were sold in the project launched in July 2014. 81% and 59% respectively were sold in two projects launched in December 2013. Net profit from the Bank's Affordable Housing business totalled GEL 6.8 million in 9M 2014, reflecting the recognition of major part of the revenue from the completed second project






http://www.moneyam.com/action/news/showArticle?id=4918155

08 Dec Bank of Georgia... Numis Upgrades 2,745.00 buy

09/12/2014 BUY Alasdair Breach NED 2,121
09/12/2014 BUY Neil Janin CH 10,000

18 Dec Panmure Gordon 3,000.00 Buy

Signal Update

Our system’s recommendation today is to STAY LONG. The previous BUY signal was issued on 17/12/2014, 5 days ago, when the stock price was 1,878.5000. Since then BGEO.L has risen by +10.03%.

Market Outlook

The bulls are strong. The negative sentiment that led to the last bearish pattern has evaporated. Besides, the signal is suggesting to STAY LONG. It is best to follow the signal and continue to hold this security, but with a more cautious attitude.



https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=BGEO.L

A sell in IC - A sliding oil price and Western economic sanctions are starting to cause economic havoc in Russia. When Russia feels the heat, the shares in Bank of Georgia often become very volatile.

perhaps an interesting subject for shorting

Panmure Gordon thinks not.


5 Jan Panmure Gordon 3,000.00 Buy

Final Results

Strong 4th quarter 2014 performance

o Q4 2014 Net Interest Margin (NIM) of 7.6%, compared to 7.4% in Q3 2014 and 8.0% in Q4 2013

o Q4 2014 revenue of GEL 168.7 million, up 17.5% y-o-y and 8.6% q-o-q

o Q4 2014 Cost of Client Deposits stood at 4.2% down from 4.8% in Q4 2013, flat q-o-q

o Q4 2014 Loan Yields stood at 14.1% in Q4 2014, down from 14.3% in Q3 2014 and down from 15.8% in Q4 2013

o Q4 2014 Cost to Income ratio stood at 41.3% compared to 41.9% in Q4 2013 and 42.5% in Q3 2014

o Positive q-o-q and y-o-y operating leverage at 2.9 percentage points (ppts) and 1.6 ppts, respectively, in Q4 2014

o Profit increased to GEL 66.5 million in Q4 2014, up 19.5% y-o-y and up 6.7% q-o-q

o Q4 2014 Earnings Per Share (EPS) increased 18.4% y-o-y and 7.5% q-o-q to GEL 1.87

o Net loan book increased 13.9% q-o-q; client deposits increased 8.3% q-o-q

o Return on Average Assets (ROAA), of 3.7% in Q4 2014 (Q3 2014: 3.7%; Q4 2013:3.6%)

o Return on Average Equity (ROAE)1, of 19.5% in Q4 2014 (Q3 2014: 19.2%; Q4 2013: 18.6%)

[1] Adjusted for results of placing of ordinary shares on 4 December 2014



§ Excellent customer lending growth supports record annual profits

o Net Interest Margin (NIM) of 7.4%, compared to 7.8% in 2013

o Revenue increased 11.3% y-o-y to GEL 605.6 million in 2014

o Cost to Income ratio stood at 42.8% in 2014 compared to 41.2% in 2013

o Profit for 2014 increased to GEL 240.8 million, up 15.0% y-o-y

o EPS1,2increased 15.5% to GEL 6.85 in 2014 compared to GEL 5.93 in 2013

o ROAA of 3.6% in 2014, flat y-o-y

o ROAE1,2of 19.0% in 2014, up from 18.6% in 2013



§ Balance sheet strength supported by solid capital and liquidity positions and declining Cost of Funding

o Net loan book increased 23.8% y-o-y, while client deposits increased 6.6% y-o-y

o Cost of Client Deposits decreased to a record low of 4.3% in 2014 from 5.6% in 2013. Loan Yields also declined to 14.4% from 16.3% in 2013

o Cost of credit risk reduced in 2014 to GEL 59.0 million from GEL 61.8million in 2013. This translated into a Cost of Risk ratio of 1.2% in 2014 compared to 1.4% in 2013

o NPLs to Gross Loans to Clients ratio as a result declined from 4.0% as of 31 December 2013 to 3.4% as of 31 December 2014. High liquidity continues to be maintained. Liquidity ratio, per National Bank of Georgia (NBG) requirements, stood at 35.0%, compared to the regulatory minimum requirement of 30.0%. 25.0% of total assets made up of cash and cash equivalents, amounts due from credit institutions, the NBG CDs, Georgian government treasury bills and bonds and other high quality liquid assets as of 31 December 2014

o As of 31 December 2014, Net Loans to Customer Funds and DFI ratio stood at 110.6% (30 September 2014: 103.9%; 31 December2013: 96.2%)

o BIS Tier I capital adequacy ratio stood at 22.1% (2013: 23.0%)

o NBG (Basel 2/3)1Tier I Capital Adequacy ratio stood at 11.1% as of 31 December 2014, (30 September 2014: 11.2%)

o Book value per share increased 18.9% y-o-y to GEL 41.45 (US$22.24/GBP 14.33)

o Balance sheet leverage stood at 3.7 times as of 31 December 2014 (31 December 2013: 4.3 times)



§ Resilient growth momentum maintained across all major business lines:

o Retail Banking continues to deliver strong franchise growth, supported by the Express Banking strategy, adding 2,239 Express Pay Terminals and 721,909 Express Cards since the launch of the Express Banking service in 2012. Retail Banking's net loan book grew 28.1% y-o-y and stood at GEL 2,067.0 million, while client deposits increased 24.2% y-o-y to GEL 1,349.6 million

o The Bank's acquisition of JSC Privatbank has enhanced its position in the significantly more profitable retail franchise. The acquisition was finalised in January 2015 and increased the Bank's market share in retail loans by 4.9% and in retail deposits by 2.6% (market shares as of 31 December 2014)

o Corporate Banking's net loan book growth rate picked up in the second half of the year, with the net loan book increasing by 18.8% y-o-y to GEL 2,160.8 million as of 31 December 2014. Corporate Banking Cost of Deposits decreased significantly from 4.6% in 2013 to a record low 2.9% in 2014. Pressure on Corporate Banking NIM continued, driving it down by 50 bps y-o-y to 4.5%

o Investment Management's Assets Under Management (AUM) increased 21.4% y-o-yto GEL 1,027.1 million. Since the launch of the Certificate of Deposit (CD) programme in January 2013, the volume of CDs issued reached GEL 460.6 million, as of 31 December 2014. Net fee and commission income for Investment Management increased substantially to GEL 8.8 million in 2014 up from GEL 1.2 million in 2013



o The Group's healthcare business grew its market share from 14.3% as of 31 December 2013 to 22.0% as of 31 December 2014 in terms of hospital beds. The Group's healthcare services business, which operates 39 healthcare facilities and 2,140 hospital beds, reported profit that more than tripled y-o-y, increasing to GEL 14.0 million in 2014 (2013: GEL 4.4 million)

o m2 Real Estate enjoys strong demand, selling 576 apartments in 2014, which brings total apartments sold since 2010 to 1,328






http://www.moneyam.com/action/news/showArticle?id=4980827

Half Yearly Report
RNS
RNS Number : 5639W
Bank of Georgia Holdings PLC
20 August 2015











BANK OF GEORGIA

HOLDINGS PLC





Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/5639W_-2015-8-20.pdf



FORWARD LOOKING STATEMENTS

This document contains statements that constitute "forward-looking statements", including, but not limited to, statements concerning expectations, projections , objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development.

While these forward-looking statements represent our judgments and future expectations concerning the development of our business, a number of risks, uncertainties and other factors could cause actual developments and results to differ materially from our expectations.

These factors include, but are not limited to the following: (1) general market, macroeconomic, governmental, legislative and regulatory trends; (2) movements in local and international currency exchange rates; interest rates and securities markets; (3) competitive pressures; (4) technological developments; (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties and developments in the market in which they operate; (6) management changes and changes to our group structure; and (7) other key factors that we have indicated could adversely affect our business and financial performance, which are contained elsewhere in this document and in our past and future filings and reports, including those filed with the respective authorities.

When relying on forward-looking statements, investors should carefully consider the foregoing factors and other uncertainties and events. Accordingly, we are under no obligations (and expressly disclaim such obligations) to update or alter our forward-looking statements whether as a result of new information, future events, or otherwise.



Bank of Georgia Holdings PLC (LSE: BGEO LN), the holding company of Georgia's leading bank JSC Bank of Georgia (the "Bank") and its subsidiaries (together, the "Group"), announces the Group's 2Q15 and 1H15 consolidated results. Unless otherwise mentioned, figures are for 2Q15 and comparisons are with 2Q14. The results are based on IFRS, are unaudited and derived from management accounts.



Bank of Georgia Holdings highlights



§ 2Q15 profit was GEL 72.0mln (US$ 32.0mln/GBP 20.4mln), up 23.5% y-o-y and up 15.5% q-o-q

§ 2Q15 earnings per share ("EPS") were GEL 1.84 (US$ 0.82 per share/GBP 0.52 per share), up 12.2% y-o-y and up 12.9% q-o-q

§ 1H15 profit was GEL 134.4mln (US$ 59.8mln/GBP 38.1mln), up 20.0% y-o-y

§ 1H15 EPS was GEL 3.47 (US$ 1.54 per share/GBP 0.98 per share), up 10.2% y-o-y

§ Book value per share was GEL 41.74, up 19.4% y-o-y, with total equity attributable to shareholders of GEL 1,597.0mln, up 32.9% y-o-y

§ Total assets increased to GEL 9,375.1mln, up 40.6% y-o-y and up 3.8% q-o-q

§ Leverage remained low at 4.7 times

§ In addition to the capital in the regulated Banking Business (JSC Bank of Georgia), GEL 114.4mln cash is held at the holding company level as of the date of this report



Banking Business highlights



2Q15 performance

§ Revenue was GEL 182.6mln (up 42.0% y-o-y and up 2.9% q-o-q)

§ Net Interest Margin ("NIM") was 7.6% (+20 basis points "bps" y-o-y and -20 bps q-o-q)

§ Loan Yield stood at 14.6% (+30 bps y-o-y and +10 bps q-o-q)

§ Cost of Customer Funds stood at 4.4% (up 20 bps y-o-y and flat q-o-q)

§ Cost to Income ratio improved to 35.7% (36.8% in 1Q15 and 42.2% in 2Q14)

§ Operating leverage was positive y-o-y and q-o-q, at 21.7% and 2.9%, respectively

§ Cost of credit risk stood at GEL 40.8mln (up 207.0% y-o-y and flat q-o-q)

§ Cost of Risk ratio was 2.7% (3.1% in 1Q15 and 0.9% in 2Q14)

§ Profit increased to GEL 61.5mln (up 14.6% y-o-y and up 4.5% q-o-q)

§ Return on Average Assets ("ROAA") was 2.9% (3.0% in 1Q15 and 3.5% in 2Q14)

§ Return on Average Equity ("ROAE") was 19.3% (19.2% in 1Q15 and 21.0% in 2Q14)



1H15 performance

§ Revenue was GEL 360.1mln (up 45.3% y-o-y)

§ NIM was 7.8%; (+30 bps y-o-y)

§ Loan Yield was 14.6% (+10 bps y-o-y)

§ Cost of Client Deposits was 4.4% (flat y-o-y)

§ Cost to Income ratio improved to 36.2% (41.9% in 1H14)

§ Operating leverage was positive at 19.5%

§ Cost of credit risk stood at GEL 81.5mln (up 212.6% y-o-y)

§ Cost of Risk ratio stood at 2.9% (0.9% in 1H14)

§ Profit increased to GEL 120.3mln (up 20.4% y-o-y)

§ ROAA was 2.9% (3.3% in 1H14)

§ ROAE was 19.3% (19.3% in 1H14)



Balance sheet strength supported by solid capital and liquidity positions

§ The net loan book reached a record GEL 5,142.2mln (up 38.4% y-o-y and down -2.0% q-o-q); without Privatbank effect ("ex-Privatbank") it was GEL 4,896.6mln; ex-Privatbank growth on constant currency basis was 11.2% y-o-y

§ Client deposits increased to GEL 4,212.8mln (up 33.8% y-o-y and down 1.4% q-o-q); ex-Privatbank it was GEL 3,946.0mln; ex-Privatbank growth on constant currency basis was 5.1% y-o-y

§ Net Loans to Customer Funds and DFI ratio stood at 102.4% (105.2% at 31 March 2015 and 100.0% at 30 June 2014)

§ Tier I and Total Capital Adequacy ratios (CAR) (Basel I) stood at 20.4% and 26.7%, respectively

§ NBG (Basel 2/3) Tier I and Total CAR stood at 10.4% and 15.9%, respectively

§ NBG Liquidity Ratio was 35.1%

Resilient growth momentum sustained across all major business lines

§ Retail Banking continues to deliver strong franchise growth, primarily supported by the Express Banking strategy and Privatbank acquisition. Retail Banking revenue reached GEL 103.4mln in 2Q15, up 44.9% y-o-y

§ Retail Banking net loan book reached a record GEL 2,623.6mln, up 49.6% y-o-y; ex-Privatbank it was GEL 2,378.0mln; ex-Privatbank growth on constant currency basis was 19.8% y-o-y

§ Retail Banking client deposits increased to GEL 1,736.5mln up 53.1% y-o-y; ex-Privatbank it was GEL 1,469.7mln; ex-Privatbank growth on constant currency basis was 9.0% y-o-y

§ The Privatbank acquisition has enhanced our position in the significantly more profitable retail banking franchise and posted revenue of GEL 38.9mln and profit of GEL 6.1mln in 1H15. Privatbank increased our market share in retail loans by 4.3 percentage points and in retail deposits by 2.5ppts (market data as of 31 March 2015). For more information on Privatbank acquisition see page 19

§ We launched Solo - a new strategy for our premium banking segment - a fundamentally different approach to premium banking. We have already opened five new Solo lounges and our goal is to significantly increase our market share in this segment, which now stands below 13%, over the next three to four years

§ Corporate Banking net loan book growth rate slowed down in the first half of 2015, as a result of slower economic activity in the country's corporate sector in 2015, and was GEL 2,174.1mln

§ Investment Management's Assets Under Management ("AUM")* increased to GEL 1,231.4mln, up 31.8% y-o-y, reflecting increased bond issuance activity



*Wealth Management client deposits, Galt & Taggart client assets, Aldagi Pension Fund and Wealth Management client assets at Bank of Georgia Custody



Investment Business Highlights

§ Our healthcare business, Georgia Healthcare Group ("GHG") reported standalone profit that almost tripled y-o-y, increasing to GEL 13.0mln in 1H15 (GEL 5.5mln in 1H14). As at 30 June 2015, the healthcare services business had a 22.1% market share, 5 times that of the Company's nearest competitor in Georgia, by number of beds (2,220 beds), which grew to 26.6% following High Technology Medical Center University Clinic ("HTMC") acquisition in July 2015 (450 beds). The market share is expected to grow up to c.30.0% as a result of the renovation of recently acquired hospital facilities, scheduled for completion in 2016 and 2017 (additional c.500 beds).

- In 2015, GHG completed two major acquisitions, HTMC and Deka LLC ("Deka"), adding 530 beds and bringing market share in beds to 26.6% and 24.0% nationwide and in Tbilisi, respectively. However, our financial results do not yet include their results of operations, as Deka was consolidated as of 30 June 2015 with no effect on the income statement of GHG in 1H15 and HTMC will be consolidated in 3Q15. HTMC revenue was GEL 38.4mln in 2014, and GEL 21.7mln in 1H15

§ Our real estate business, m2 Real Estate ("m2 Real Estate") recognised revenue of GEL 1.1mln in 1H15, with US$ 58.9mln sales revenue yet to be recognised as revenue upon completion of the on-going projects in 2015-2016. Since its establishment in 2010, m2 Real Estate has generated total sales of US$ 115.8mln, of which US$ 56.9mln has already been recognised as revenue and the remaining will be recognized upon completion of the ongoing construction during 2015-2016

§ Profits in associates, which comprises profit from our water and utilities business - Georgian Global Utilities ("GGU") - recorded strong 2Q15 results, with GEL 2.0mln profit (reported in gain from associates). Strong 2Q15 performance drove 1H15 profit to GEL 0.7mln, recovering from 1Q15 loss of GEL 1.3mln that was primarily driven by the weaker Lari, which lost 21.3% of its value against the U.S. dollar since 30 June 2014 (the "GEL devaluation effect")

- For the past several months we have focused on enhancing the management capabilities at GGU, and as a result we have appointed a new CFO - a long-standing professional within the Group - and recruited senior management with substantial industry experience in charge of technical and commercial functions



CHIEF EXECUTIVE OFFICER'S STATEMENT



"I am pleased to report another set of solid half year results that reflect the strong performance of our banking operations and the increasing impact from our diversified non-banking businesses in which we have made a number of opportunistic investments over the last few years. The Group posted 1H 2015 revenue of GEL 398.4 million and profit of GEL 134.4 million, up 37.5% and 20.0%, respectively. Earnings per share increased by 10.2% to GEL 3.47. This performance was driven by strong levels of balance sheet growth, partly reflecting the acquisition and rapid integration of Privatbank Georgia and the devaluation of the Lari, particularly during the first quarter, as well as positive operating leverage of 19.5 percentage points in the Banking Business. Asset quality remained robust during the first six months of the year despite the impact of the Lari devaluation. We expect a lower cost of risk ratio in the second half of 2015 and the full year cost of risk ratio at c.2.5%.

Within our Banking Business, revenue growth was 42.0% year on year, and 2.9% quarter on quarter. This reflected strong growth in net interest income, up 50.9% y-o-y, as a result of a 38.4% increase in customer lending over the last 12 months, as well as the acquisition and full integration of Privatbank. In addition, net fee and commission income grew by 11.4%, driven by a 31.3% increase in Retail Banking net fee and commission income, which largely reflects the ongoing success of the Bank's Express strategy. The net interest margin at 7.6% was 20 basis points higher than last year, reflecting the impact of the acquisition of Privatbank and our efforts to focus on lower risk retail banking products in our lending activities.

Excluding the impact of the Privatbank acquisition, customer lending increased by 31.8%, implying 11.2% growth on constant currency basis. Our client deposit balances increased by 33.8% despite the continuing reduction in deposit rates. We intend to further decrease interest rates on US dollar deposits from 5% to 4% in September. Excluding the impact of the Privatbank acquisition, client deposits increased by 25.3% and 5.1% on a constant currency basis.

Costs remained well controlled, and the Banking Business Cost/Income ratio improved further to 36.2% in the first half of 2015, compared to 41.9% in the first half of 2014. In the second quarter of 2015 the Banking Cost/Income ratio improved further to 35.7%. Positive operating leverage at 19.5 percentage points reflected the impact of some targeted cost reduction initiatives in the first half of 2015.

Asset quality during the first half of the year has remained robust, with both retail arrears and the NPL ratio remaining low. This remains a good performance against the backdrop of the 17.1% Lari devaluation against the US dollar during the half year, and reflects our conservative lending policy that takes into account, at the time of the initial lending decision, any potential currency mismatch. During the first quarter we offered retail clients affected by the devaluation the opportunity to re-profile their borrowings, however the take-up of this offer has been limited with only 799 customers, with loans totaling US$ 28.2 million, taking advantage of the offer. The currency devaluation itself created an increased provision of GEL 11.9 million during the first half of the year. As a result of these effects, the cost of credit risk for the first six months of the year totalled GEL 81.5 million (Cost of Risk ratio 2.9%), compared to GEL 26.1 million in 1H 2014 (Cost of Risk ratio 0.9%). The cost of credit risk in the second quarter was the same as that in the first quarter, as the absence of a Lari devaluation impact was offset by provisions which came from a small number of Corporate Banking customers. Going forward we do not see the need for similar provisioning. We believe that the cost of risk has peaked in the second quarter and will reduce in the second half of 2015. We continue to expect our cost of risk ratio for the year to be c.2.5%.

During the first half of the year, we completed the acquisition and subsequent full integration of Privatbank. This has created significant franchise enhancement for our mass market retail business and has contributed GEL 6.1 million or 5.1% to our Banking Business profit in 1H15. The integration of Privatbank has already been completed, significantly ahead of schedule, and we are now 6 months ahead of capturing our previously announced pre-tax administrative and funding cost synergies of GEL 25 million. Although Privatbank has nearly halved its operating expenses in 2Q15, the full effect of integration efficiencies have not been reflected in the quarterly results, as synergies only materialised in the last 50 days of the quarter. Additionally, Privatbank was focused on a mono-product of an all-in-one debit and credit card, which we further developed in-house by adding the contactless transport and payment capabilities of our Express Card. We are aiming to leverage the enhanced capabilities of Express Banking, to capture increased revenue from cross-selling banking products to the c.400,000 newly acquired customers. We now expect more synergies than we did at the time of the acquisition. You will find full details of the Privatbank integration and performance in the Retail Banking segment discussion of this announcement.

Within our Investment Businesses, GHG, our healthcare business, delivered another record half year results, with revenues totalling GEL 107.4 million, reflecting both good levels of organic growth and the impact of the benefits of last year's acquisitions starting to be captured. In addition, GHG has recently completed a number of further acquisitions in Tbilisi and now has a total of 41 healthcare facilities, 2,670 hospital beds and a 26.6% market share in terms of hospital beds, which is expected to grow up to c.30% as a result of the renovation of recently acquired hospital facilities, scheduled for completion in 2016 and 2017 (additional c.500 beds). Furthermore, GHG has a unique first mover advantage in the highly fragmented and underpenetrated outpatient segment, with an addressable market of GEL 0.9 billion in 2015, where GHG currently has under 1% market share. GHG has all the enablers - bed capacity, competitive advantages and a clear growth strategy - for strong medium-to-long term growth. GHG is now very well positioned for its planned international stock market listing in the next few months. Our real estate business, m2 Real Estate, continues to develop its apartment projects successfully, with apartments continuing to be pre-sold notwithstanding the Lari devaluation. In 2Q15, we posted strong results in our water and utilities business, GGU, with GEL 2.0 million in profit. We have continued to strengthen GGU's management and hired more professionals with substantial industry experience both in Georgia and the West.

The Group's capital position remains strong, with capital being held both in the regulated Banking Business (JSC Bank of Georgia) and at the holding company level (Bank of Georgia Holdings Plc). Within the bank, the BIS Tier 1 Capital Adequacy ratio was 20.4%, and the NBG (Basel 2/3) Tier 1 Capital Adequacy ratio was 10.4%

In August, we completed our corporate legal restructuring as announced in December 2014 and created a unique platform to extend our reach to different industries on the Georgian corporate market. The need for restructuring was created by our recently updated strategy as well as NBG's intention to regulate banks in Georgia on a standalone basis. The new structure is now clearly aligned to our strategy and will facilitate our continued commitment to growing Bank of Georgia's strong retail and corporate banking franchise and allows us to capture compelling investment opportunities in Georgia's corporate sector.

From a macroeconomic perspective Georgia has continued to perform well in the light of the recent macroeconomic and currency pressures in many of Georgia's trading partners. Much of the volatility of the first quarter was significantly reduced in the second quarter of the year, particularly in terms of the Lari/Dollar exchange rate, which has now seen a period of stability in the 2.2-2.3 range. GDP growth in Georgia during the first half of 2015 remained relatively resilient with 2.6% y-o-y growth, and inflation remained well contained at 4.9% y-o-y in July 2015, partly as a result of the beneficial impact of lower oil prices on the Georgian economy. In addition, international arrivals (an important component of capital inflows for the country) continue to be strong, with a 9.5% year on year increase in July supporting overall growth of 4.9% in the first seven months of the year. The Lari has stayed competitive compared to our main trading partners' currencies. Exports are turning the corner with the signs that the negative growth is coming to a halt: Georgia originated exports increased 2.3% year on year in June (first time since August 2014), while re-exported commodities remain the major drag in total exports. The Lari's real depreciation of 8.1% since December 2014 has helped the imports adjustment, which decreased 9.6% year on year in 1H15.

Against the challenging regional macroeconomic backdrop, the Group has continued to perform well. We believe we remain well positioned to deliver a strong performance in the second half of 2015 and beyond, from both good levels of organic business growth in each of our Banking and Investment Businesses, and from the benefits of recent strategic initiatives and acquisitions.



Irakli Gilauri,

Chief Executive Officer of Bank of Georgia Holdings PLC