liberty bank announces unaudited ifrs-based q4 2015 full-year 2015 results 160209

Tbilisi, 9 February 2016

The following exchange rates have been used for the translation of the Bank’s financial statements.

31 December 2015 30 September 2015 31 December 2014

$/US$ Period End Exchange Rate 2.39 2.38 1.86

Q4 2015 Q3 2015 Q4 2014 2015 2014

$/US$ Period Average Exchange Rate 2.40 2.32 1.81 2.27 1.77

All numbers in this news report are preliminary IFRS-based unaudited estimates. The bank’s actual results may vary significantly from the figures reflected in this news report as a result of various factors. Growth rates have been calculated based on unaudited $ results, unless otherwise noted.

About Liberty Bank Established in 2002, Liberty Bank (GSE: BANK) is the fourth largest bank in Georgia by total assets, with 6.3% market share as of 31 December 2015. Liberty Bank has the largest retail footprint in Georgia, comprising 667 branches and distribution outlets and 425 ATMs, and serves approximately 1.5 million individuals and over 72 thousand legal entities.

Liberty Bank has, as of the date hereof, the following credit ratings with Stable outlook: For further information please visit www.libertybank.ge or contact:

FitchRatings Long-term IDR Short-term IDR Lado Gurgenidze Aleksi Khoroshvili Tamuna Gunia

‘B’ ‘B’ Executive Chairman Chief Executive Officer Head of Investor Relations

Standard & Poor’s Long-term counterparty Short-term counterparty Email: [email protected] Telephone: +995 591 154 422 Telephone: +995 591 205 511

‘B’ ‘B’ Email: [email protected] Email: [email protected]

This news report is presented for general informational purposes only and should not be construed as an offer to sell or the solicitation of an offer to buy any securities. Certain statements in this news report are forward-looking statements and, as such, are based on the management’s current expectations and are subject to uncertainty and changes in circumstances.

Liberty Bank Announces Unaudited IFRS-based Q4 2015 & Full-Year 2015 Results

CONSOLIDATED RESULTS Q4 2015 Change, $ Change, US$

IFRS-Based, Consolidated, Unaudited US$ mln $ mln Q-o-Q Y-o-Y Q-o-Q Y-o-Y Total Operating Income (Revenue) 19.3 46.4 -1.6% 15.8% -4.6% -12.8% Total Recurring Operating Costs 12.5 29.9 9.9% 20.3% 6.5% -9.4% Net Normalised Operating Income 6.9 16.5 -17.3% 8.5% -19.9% -18.2% Pre-Provision Operating Profit 7.1 17.0 -14.0% 12.6% -16.7% -15.2% Net Provision Expense 2.8 6.6 -26.3% -9.7% -28.6% -32.0% Pre-Tax Profit 3.7 8.8 -3.7% 29.5% -6.7% -2.5% Accrued Or Paid Income Tax Benefit/(Expense) (0.6) (1.3) -3.4% 6.8% nmf nmf Impairment Of Deferred Tax Asset 1.1 2.6 NMF 35.6% NMF 2.2% Net Income (Loss) 4.2 10.0 28.9% 34.8% 25.0% 1.5% EPS, $ & US$ 0.0009 0.0022 56.7% 63.7% 51.9% 23.3%

CONSOLIDATED RESULTS 2015 Change, $ Change, US$

IFRS-Based, Consolidated, Unaudited US$ mln $ mln Y-o-Y Y-o-Y

Total Operating Income (Revenue) 79.3 180.0 22.2% -4.9% Total Recurring Operating Costs 47.3 107.5 18.1% -8.1% Net Normalised Operating Income 32.0 72.6 28.9% 0.3% Pre-Provisioning Operating Profit 31.9 72.5 32.3% 2.9%

Net Provision Expense 14.2 32.2 13.0% -12.1%

Pre-Tax Profit 15.0 34.2 51.9% 18.2%

Accrued Or Paid Income Tax Benefit/(Expense) (2.3) (5.2) 40.1% 9.0% Impairment Of Deferred Tax Asset 1.1 2.6 -13.9% -33.0% Net Income (Loss) 13.9 31.6 44.9% 12.7% EPS, $ & US$ 0.0031 0.0059 48.5% 36.9%

As of 31 December 2015 YE 2015 Change, $ Change, US$

IFRS-Based, Consolidated, Unaudited US$ mln $ mln Q-o-Q Y-o-Y Q-o-Q Y-o-Y

Total Assets 657.3 1,574.1 2.0% -0.3% 1.4% -22.4% Net Loans 262.2 627.9 -2.6% -8.2% -3.1% -28.6% Client Balances & Deposits 508.0 1,216.5 -6.0% -12.6% -6.5% -32.0% Total Liabilities 602.9 1,443.9 2.7% -0.7% 2.1% -22.7% Common Shareholders' Equity 51.8 124.1 -5.5% 4.7% -6.1% -18.5% Convertible Preferred Shareholders' Equity 2.6 6.1 0.0% 0.0% -0.6% -22.2% Total Shareholders’ Equity 54.4 130.3 -5.3% 4.5% -5.8% -18.7% Basic Book Value Per Ordinary Share ($ & US$) 0.0114 0.0274 14.7% 27.2% 14.1% -1.0%

JSC Liberty Bank (the “Bank”) announced today its Q4 2015 and full-year 2015 consolidated results (IFRS-based, unaudited, based on management estimates), reporting Net Income of $ 10.0 million in Q4 2015 (up 28.9% q-o-q and up 34.8% y-o-y) and $ 31.6 million in 2015, up 44.9% y-o-y.

“We are proud to have achieved excellent results in 2015 despite the economic headwinds in Georgia and the region. The bank reported the highest-ever Net Income of $ 31.6 million, which resulted in ROAE of 23.7% and ROAA of 2.1%, also the highest-ever achieved by the Bank. I am delighted that we managed to return, via the maiden ordinary dividend paid in July 2015 and the ordinary share buyback initiated in November 2015, $ 26.7 million in pre-tax cash to our ordinary shareholders. This amount equals approximately 22.5% of our common equity at the beginning of 2015 and equals 87.5% of the Net Income attributable to the ordinary shareholders. Nonetheless, due to our selective approach to lending and willingness to sacrifice market share for the sake of profitability, we have finished the year with the CAR of 19.5% (as per the current NBG regulation), compared with 15.1% at the end of 2014. For all intents and purposes, the turnaround of this bank that we started in September 2009 is now complete. In 2016, we need to maintain our highly selective approach to lending, focusing on the higher-yielding unsecured mass retail loans, and to pay attention to keeping our Cost-Income ratio stable, which will be challenging, given the muted balance sheet growth expectations”, commented Executive Chairman of the Supervisory Board, Lado Gurgenidze.

Unaudited Q4 2015 & Full-Year 2015 Results Tbilisi, 9 February 2016

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Total Operating Income & Pre-Provision Operating Profit, $

Net Income, $

Total Operating Income & Pre-Provision Operating Profit, US$

Net Income, US$

17.4

21.423.2

28.1

32.0

36.638.6

40.142.1

44.347.2 46.4

0.5

4.2 4.46.2

11.212.6

15.9 15.117.3 18.4

19.817.0

-

5

10

15

20

25

30

35

40

45

50

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

GEL mln

Total Operating Income Pre-Provision Operating Profit

0.2

1.3 5.06.5

3.3 4.0

6.0 5.66.9 6.8

7.8 7.5

5.1

0.3

0.8

0.0 1.9

2.6

-

2

4

6

8

10

12

14

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

GEL mln

Net Income/(Loss) Deferred Tax Benefit/(Charge)

11.6

3.6

4.8

7.5

10.1

10.513.0 14.0

16.718.3

20.822.1 22.2

20.3 19.4 20.3 19.4

0.3

2.6 2.73.7 6.4

7.1 9.1

8.4 8.3 8.0 8.57.1

1.500

1.600

1.700

1.800

1.900

2.000

2.100

2.200

2.300

2.400

2.500

-

5

10

15

20

25

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

US$ mln

Total Operating Income (LHS) Pre-Provision Operating Profit (LHS) GEL/US$ Exchange rate, period average (RHS)

0.1 0.8 3.0 3.91.9 2.3

3.4 3.1

3.3

3.03.4 3.1

3.0

0.2

0.4

1.0 1.1

1.500

1.600

1.700

1.800

1.900

2.000

2.100

2.200

2.300

2.400

2.500

-

1

2

3

4

5

6

7

8

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

US$ mln

Net Income/(Loss) (LHS) Deferred Tax Benefit/(Charge) (LHS) GEL/US$ Exchange rate, period average (RHS)

6.9

2.0

2.7

4.1 4.2

$ mln

$ mln


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Total Assets Growth In Q1 2014 – Q4 2015 Gross Loans Growth In Q1 2014 –Q4 2015

Net Loans Growth In Q1 2014 – Q4 2015

Client Balances & Deposits Growth In Q1 2014 – Q4 2015

Source: company data, the NBG

Liberty Bank Growth vs. The Georgian Banking Sector Growth in Oct ’09 – Dec ‘15

Source: company data, the NBG

Total Assets decreased in Q4 2015 by 0.3% y-o-y and increased by 2.0% q-o-q on a consolidated basis to $ 1,574.1 million.

Total Assets Growth 2015 2014 2013 2012 2011 Oct ’09-Dec ‘15

Liberty Bank (IFRS-based) -0.3% 22.0% 54.2% 14.4% 38.1% 466.1% The Georgian Banking Sector 22.1% 19.4% 20.3% 13.2% 20.0% 219.5%

Gross Loans To Clients decreased in Q4 2015 by 6.9% y-o-y and 2.2% q-o-q on a consolidated basis to $ 712.9 million.

Gross Loans Growth 2015 2014 2013 2012 2011 Oct ’09-Dec ‘15

Liberty Bank (IFRS-based)* -6.9% 16.5% 62.0% 13.0% 92.2% 659.7% The Georgian Banking Sector 23.1% 23.7% 21.0% 12.8% 23.6% 208.8% *Liberty Bank Gross Loans To Clients include loan principal only

5.8%

7.5%

4.6%

2.6%

-4.7%

1.7%0.9%

2.0%1.8%

4.2% 4.3%

7.9%

10.1%

3.1%

5.9%

1.5%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Liberty Bank Growth (in GEL) Georgian Banking Sector Growth (in GEL)

9.2%

3.8%

2.0%0.7% 0.1%

5.4%

-4.2%

-2.2%

1.9%

4.3% 3.9%

12.0% 12.2%

1.5%

5.9%

2.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015


9.2%

4.2%

1.5%

0.5%

-1.6%

5.3%

-2.5% -2.6%

1.8%

4.3% 3.9%

12.6%12.0%

1.7%

5.9%

1.8%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015


4.6%

8.2%

4.5%

2.9%

-8.1%

1.3% -0.1%

-6.0%

-0.2%

5.6%4.7%

8.6% 8.1%

0.5%

9.4%

3.8%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015


466.1%

659.7%

717.7%682.4%

219.5% 208.8%233.0%

310.8%

0.0%

100.0%

200.0%

300.0%

400.0%

500.0%

600.0%

700.0%

800.0%

Total Assets Gross Loans Net Loans Client Balances & Deposits

Liberty Bank Growth In Oct '09-Dec '15 (in GEL) Georgian Banking Sector Growth In Oct '09-Dec '15 (in GEL)


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Net Loans decreased in Q4 2015 by 8.2% y-o-y and 2.6% q-o-q on a consolidated basis to $ 627.9 million.

Net Loans Growth 2015 2014 2013 2012 2011 Oct ’09-Dec ‘15


The Bank disbursed, in Q4 2015, $ 297.0 million worth of loans.

Q4 ‘15 Q3 ‘15 Q2 '15 Q1 ‘15 Total 2015 Total 2014 Cumulative Since Sep ‘09

Q4 ‘09

Number of loans disbursed by Liberty Bank 657,761 630,475 721,255 696,011 2,705,502 2,560,174 12,159,971 286,347 Volume of loans disbursed by Liberty Bank, $ mln 297.0 288.0 297.5 314.6 1,197 1,265 5,374 64.2 Liberty Bank Market Share By Net Loans 4.3% 4.7% 5.3% 5.1% NMF 5.8% NMF 1.9%

Client Balances & Deposits (the “CBD”) decreased in Q4 2015 by 12.6% y-o-y and 6.0% q-o-q on a consolidated basis to $ 1,216.5 million.

Client Balances & Deposits Growth 2015 2014 2013 2012 2011 Oct ’09-Dec ‘15


As at 31 December 2015, the Bank held market shares of 6.3%, 4.4%, 4.3% and 8.6% by Total Assets, Gross Loans, Net Loans and Client Balances & Deposits, respectively**. The respective market shares as at 30 September 2009, when the turnaround began, were 3.5%, 1.8%, 1.7% and 5.8%. The market share loss in the recent two quarters was driven by the Bank’s focus on shoring up its capital buffer (including by limiting the lower-yield loan disbursements) and was exacerbated in 2015 by the significant depreciation of the Lari, as 96% of the Bank’s gross loans and 71% of its CBDs are $-denominated, as compared to 35% and 31%, respectively, for the Georgian banking sector. Liberty Bank’s Market Share Evolution

Market Share By Total Assets

Market Share By Gross Loans*

Market Share By Gross Loans To Individuals

Market Share By Net Loans Market Share

By Client Balances & Deposits (CBD) Market Share

By CBDs of Individuals

*Gross Loans include loan principal only **Market share data are based on the standalone accounts as reported to the NBG

As at 31 December 2015, the Bank’s competitive position in the Georgian banking sector is as follows: December 2015 December 2014 September 2009

Total Assets 4th largest bank 3rd largest bank 7th largest bank Gross Loans 7th largest bank 4th largest bank 10th largest bank Total Deposits & Balances 3rd largest bank 3rd largest bank 6th largest bank

Corporate Client Balances & Deposits 6th largest bank 3rd largest bank 4th largest bank Individual Client Balances & Deposits 3rd largest bank 3rd largest bank 5th largest bank

3.5%

4.1%

5.1%

5.9%6.3%

7.7% 7.8%

6.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Sep '09 YE 09 YE 10 YE 11 YE 12 YE '13 YE '14 YE '15

1.8%2.0%

3.0%

3.9%

4.6%

6.2%5.8%

4.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%


2.2%2.9%

4.9%

8.8%

9.8%

12.0%11.6%

9.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%


1.7%1.9%

2.9%

4.5% 4.7%

6.3%

5.8%

4.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%


5.8%6.2%

7.0%

8.7% 9.0%

11.8% 12.0%

8.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%


5.1%4.4%

6.1% 6.2%

7.6%

10.9%

12.7%

11.4%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%



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Full-Year 2015 & Q4 2015 Consolidated Performance Highlights

Total Operating Income

Recurring Operating Costs

Pre-Provision Operating Profit

Net Income/(Loss)

Total Assets Net Loans

Gross Loans To Individuals Client Balances & Deposits

147.3

180.0

-

20

40

60

80

100

120

140

160

180

200

2014 2015

GEL mln+22%

40.1

46.4

-

5

10

15

20

25

30

35

40

45

50

Q4 '14 Q4 '15

GEL mln+16%

91.0

107.5

-

20

40

60

80

100

120

2014 2015

GEL mln+18%

24.8

29.9

-

5

10

15

20

25

30

35

Q4 '14 Q4 '15

GEL mln+20%

54.8

72.5

-

10

20

30

40

50

60

70

80

2014 2015

GEL mln+32%

15.1

17.0

-

2

4

6

8

10

12

14

16

18

Q4 '14 Q4 '15

GEL mln +13%

21.8

31.6

-

5

10

15

20

25

30

35

2014 2015

GEL mln+45%

7.5

10.0

-

2

4

6

8

10

12

Q4 '14 Q4 '15

GEL mln

+35%

1,578.4 1,574.1

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q4 '14 Q4 '15

GEL mln -0.3%

684.0627.9

-

100

200

300

400

500

600

700

800

Q4 '14 Q4 '15

GEL mln

-8%

729.0695.3

-

100

200

300

400

500

600

700

800

Q4 '14 Q4 '15

GEL mln -5%

1,391.1

1,216.5

-

200

400

600

800

1,000

1,200

1,400

1,600

Q4 '14 Q4 '15

GEL mln-13%

$ mln $ mln

$ mln $ mln

$ mln $ mln

$ mln $ mln

$ mln $ mln

$ mln $ mln


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Q4 2015 Financial Highlights Net Interest Income decreased in Q4 2015 by 3.1% q-o-q and increased by 17.5% y-o-y to $ 35.3 million. Interest Income decreased by 1.0% q-o-q and increased by 8.2% y-o-y to $ 65.4 million in Q4 2015, whereas Interest Expense increased by 1.5% q-o-q and decreased by 1.0% y-o-y in Q4 2015 to $ 30.1 million. Annualised Net Interest Margin in Q4 2015 increased to 13.92% from 13.79% in Q3 2015 and 11.04% in Q4 2014. Net Fee & Commission Income amounted to $ 9.1 million, an increase of 8.8% q-o-q and 27.3% y-o-y. Total Operating Income in Q4 2015 reached $ 46.4 million, a decrease of 1.6% q-o-q and an increase of 15.8% y-o-y. Recurring Operating Costs increased by 9.9% q-o-q and 20.3% y-o-y to $ 29.9 million. Normalised Cost/Income Ratio increased to 67.8% in Q4 2015 from 61.1% in Q3 2015 and from 64.7% in Q4 2014. The Bank reported Normalised Net Operating Income of $ 16.5 million in Q4 2015, a decrease of 17.3% q-o-q and an increase of 8.5% y-o-y. Pre-Provision Operating Profit decreased in Q4 2015 by 14.0% q-o-q and increased by 12.5% y-o-y to $ 17.0 million. Pre-Tax Profit decreased in Q4 2015 by 3.7% q-o-q and increased by 29.4% y-o-y to $ 8.8 million. Net Income in Q4 2015 reached $ 10.0 million, up 28.9% q-o-q and 34.8% y-o-y. As at 31 December 2015, the Bank’s consolidated Total Assets stood at $ 1,574.1 million, up 2.0% q-o-q and down 0.3% y-o-y. The Liquidity Ratio (Liquid Assets divided by Total Assets) stood at 48.2% as at 31 December 2015, up from 43.4% as at 30 September 2015 and from 45.9% as at 31 December 2014. Gross Loans To Clients decreased by 2.2% q-o-q and 6.9% y-o-y to $ 712.9 million, as the Bank continued to limit the disbursements of lower-yielding loans in an effort to maximise profitability and further enhance its high capital adequacy ratio. Net Loans decreased by 2.6% q-o-q and 8.2% y-o-y to $ 627.9 million as at 31 December 2015. The Net Loans/Total Assets ratio decreased to 39.9% as at 31 December 2015 from 41.8% as at 30 September 2015 and 43.3% as at 31 December 2014. Client Balances & Deposits reached $ 1,216.5 million as at 31 December 2015, down 6.0% q-o-q and 12.6% y-o-y. Total Shareholders’ Equity as at 31 December 2015 equalled $ 130.3 million, down 5.3% q-o-q and up 4.5% y-o-y. The Capital Adequacy Ratio as per the current NBG methodology reached 19.5% as at 31 December 2015, up from 15.1% as at 31 December 2014, despite the maiden common dividend payout and share buyback in 2015. The Capital Adequacy Ratio as per the new NBG methodology, which is largely in line with Basel II/III requirements, stood at 13.9%, up from 13.6% as at 31 December 2014. Georgian banks are required to be in compliance with both the current and new capital adequacy requirements. The Bank was compliant, as of 31 December 2015, with the key prudential capital adequacy ratios.

Full-Year 2015 Financial Highlights Net Interest Income increased in 2015 by 22.4% y-o-y to $ 138.0 million. Interest Income increased by 14.2% y-o-y to $ 256.6 million in 2015, whereas Interest Expense increased by 6.0% y-o-y in 2015 to $ 118.6 million. Net Interest Margin increased to 13.15% in 2015 from 11.23% in 2014. Net Fee & Commission Income amounted to $ 32.3 million, an increase of 24.4% y-o-y. Total Operating Income in 2015 reached $ 180.0 million, an increase of 22.2% y-o-y. Recurring Operating Costs increased by 18.1% y-o-y to $ 107.5 million, resulting in the positive Operating Leverage of 4.1% in 2015. Normalised Cost/Income Ratio decreased to 63.1% in 2015 from 64.4% in 2014. The Bank reported Normalised Net Operating Income of $ 72.6 million in 2015, an increase of 28.9% y-o-y. Pre-Provision Operating Profit increased in 2015 by 32.3% y-o-y to $ 72.5 million. Pre-Tax Profit increased in 2015 by 51.9% y-o-y to $ 34.2 million. Net Income in 2015 reached $ 31.6 million, up 44.9% y-o-y.


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Monthly Revenue Monthly Pre-Provision Operating Profit

Monthly Net Provision Expense Gross Loans To Clients* Outstanding

Client Balances & Deposits Gross Loans To Clients*/Client Balances & Deposits

Blended Cost Of Funds Cost Of Interest-Bearing Liabilities

5.9 5.86.4 6.1

7.1 7.6 7.9 7.5 7.4 7.76.8 6.8

5.6 5.7 6.1 6.5 7.07.8 8.1 7.7 7.4

9.0 9.29.910.2 10.3

11.5 11.9 12.012.7 12.7 13.0 12.9 12.8 12.4 14.9

13.8 13.714.7

14.015.1 15.3

15.9 15.7 15.6 15.4 15.115.9

-

2

4

6

8

10

12

14

16

18

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

GEL mln

2012 2013 2014 2015

Note: January-June 2012 numbers have been pro-forma adjusted to reflect the loss of the State Fees from July 2012

Run-Rate Revenue up 6.4% y-o-y

2012

2013

2014

1.0 0.9 1.00.7

1.72.1

2.62.0

0.91.4 1.6

0.90.0 0.0

0.5 0.71.2

2.32.0

1.41.0

2.3 2.22.6

3.5 3.3

4.44.1 4.1 4.3

4.9

5.9

5.14.7

4.4

6.05.95.5

5.95.6

6.26.6 6.7 6.8

6.36.1

5.3 5.7

(1)

-

1

2

3

4

5

6

7

8

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

GEL mln

2012 2013 2014 2015

Note: January-June 2012 numbers have been pro-forma adjusted to reflect the loss of the State Fees from July 2012

2012

2013

2014

1.1 1.1

1.1

0.8 1.8

3.2

1.6

2.3

0.8 1.0

-0.3 -1.2-0.1

0.4 0.0

0.8 1.0

0.9

-4.6

0.9 1.8 0.6 0.5

-2.4

2.2 2.2 2.22.7

2.1 2.1 2.1

3.1

2.42.2

2.7 2.6

3.2

1.9

2.62.3

3.5

3.13.1

3.3

2.6 2.4

1.8 2.5

(6)

(5)

(4)

(3)

(2)

(1)

-

1

2

3

4

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

GEL mln

2012 2013 2014 2015

2012

2013

2014

356 360 374 389 409 431 446 450 455 454427 406

404 411 428460 478 489 509 516

561596 619 658

672 693 718 719 736 746 749 750 761765

754766759 758 767 764 763 761 755 746 729 725

714713

-

100

200

300

400

500

600

700

800

900

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

GEL mln

2012 2013 2014 2015* Gross Loans To Clients include loan principal only

2012

2013

2014

683 694 685 685 665 679748

703627 615 613

690

761 772825

899 892997 1,035 1,053

1,1261,187 1,222

1,1391,155 1,175 1,196 1,213 1,211 1,293

1,257 1,2871,352 1,379

1,3111,385

1,284 1,267 1,279 1,314 1,296 1,295 1,350

1,321 1,294

1,271 1,296 1,216

-

200

400

600

800

1,000

1,200

1,400

1,600

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

GEL mln

2012 2013 2014 2015

2012

2013

2014 58.9%

51.8%

49.1%

49.8%

57.3%

60.1%

57.6%56.3%

55.1%

60.0%58.7%

56.3%

58.6%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

YE 2012 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15

* Gross loans to clients include loan principal only

9.1%

9.5%

9.2% 9.3% 9.3% 9.3%

9.1%

8.8% 8.8% 8.8%

9.2%9.7%

10.1% 10.1%10.3% 10.3%

10.0%

9.6%9.5% 9.5%

9.4%

8.9%

8.8%

8.7%

10.5%

10.0%9.6%

9.3%

9.6%

9.3%

8.3%8.3% 8.2% 8.5%

8.6%

8.4%8.1%8.2%

8.5%8.4% 8.4%

8.3%8.1% 8.1% 8.0%

8.4%

8.4% 8.4%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

2012 2013 2014 2015

2012

2013

2014

11.9%

12.3% 12.2% 12.2%12.4%

12.1% 12.1% 12.0%

11.2% 11.2%

11.7%

12.2%12.3%

12.2% 12.3% 12.3%12.0%

11.5%11.3%

11.1%11.0%

10.4%

10.1%

10.2%

8.6%

8.6%

8.4%8.2% 8.3%

8.2%

9.4%9.4% 9.2%

9.6% 9.7%9.5%

9.5% 9.5% 9.6%9.4% 9.4%

9.2% 9.2%

9.2%9.0%

9.5% 9.5% 9.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

12.5%

13.0%

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

ber

Oct

ob

er

No

vem

ber

Dec

em

ber

2012 2013 2014 2015

2012

2013

2014

$ mln $ mln

$ mln $ mln

$ mln


of 15

Loan Book Quality

As of 31 December 2015, 7.7% of the Gross Loans To Clients (loan principal plus accrued interest) were non-performing (i.e. overdue by more than 90 days);

Total Loan Loss Reserve (“LLR”) Coverage Ratio was 124.5% as at 31 December 2015, down from 140.8% as at 30 September 2015.

Liquid balance sheet

Net Loans/Total Assets

Uniquely strong focus on retail

Retail Loans/Gross Loans To Clients

Uniquely low share of FX loans

FX Loans/Gross Loans To Clients

Moderate NPL levels

NPLs*/Gross Loans To Clients

Gross Loans To Clients/Client Balances & Deposits FX Client Balances & Deposits/Total Client Balances & Deposits

*NPLs in accordance with the NBG reporting standards include loan principal only

Improving core profitability

Net Interest Income/Average Earning Assets

Improving efficiency

Cost/Income Ratio

Profit Before Provisions/Average Assets

Loan Loss Reserve/Gross Loans To Clients** ROAA ROAE

**Loan loss reserve and gross loans to clients include loan principal only

Gross Loans To Clients, Standalone December-14 March-15 June-15 September-15 December-15

$ , unless otherwise noted

Loan Principal 406,078,569 657,788,172 766,027,961 766,745,805 760,831,924 728,672,962 712,915,883

Deferred Income On Loans (14,500,809) (43,116,300) (42,459,784) (47,876,858) (44,860,833) (37,351,112) (34,492,327) Accrued Interest 7,366,331 12,230,093 16,194,482 16,156,410 17,828,208 15,415,115 15,161,816

Gross Loans To Clients 398,944,091 626,901,965 739,762,660 735,025,356 733,799,298 706,736,965 693,585,372

NPLs, Principal 13,582,740 23,715,290 41,789,529 41,205,477 47,315,525 38,976,482 46,175,010

NPLs, Accrued Interest 3,549,537 6,028,305 8,639,290 7,320,634 8,374,258 6,589,053 7,191,782

Total NPLs1 17,132,277 29,743,594 50,428,819 48,526,110 55,689,782 45,565,535 53,366,792

Total NPLs As % Of Total Loan Book 4.3% 4.7% 6.8% 6.6% 7.6% 6.4% 7.7%

NPLs Principal As % Of Loan Principal 3.3% 3.6% 5.5% 5.4% 6.2% 5.3% 6.5%

Loan Loss Reserve, Principal 17,574,969 24,843,881 39,596,966 46,006,338 54,888,580 46,940,129 50,546,450

Loan Loss Reserve, Accrued Interest 3,250,998 1,978,071 8,055,197 7,214,169 8,699,649 6,739,799 7,301,806

Total Loan Loss Reserve 20,825,967 26,821,952 47,652,164 53,220,507 63,588,228 53,679,928 57,848,256

Cumulative Write-offs2 51,078,006 51,159,407 54,699,676 54,783,404 54,951,775 70,153,110 71,561,449

Total Loan Loss Reserve As % Of Gross Loans To Clients 5.2% 4.3% 6.4% 7.2% 8.7% 7.6% 8.3%

Total Loan Loss Reserve Coverage Ratio (Total LLR To Total NPLs) 121.6% 90.2% 94.5% 109.7% 114.2% 117.8% 108.4%

Loan Loss Reserve Principal As % Of Loan Principal 4.3% 3.8% 5.2% 6.0% 7.2% 6.4% 7.1%

Net Exposure To Legacy Loans/Net Loans, % 1.6% 1.7% 0.6% 0.2% 0.1% 0.1% 0.1%

Appraisal Value Of Collateral Applicable To NPLs4 11,959,829 21,233,501 18,437,632 14,399,617 10,954,129 10,470,879 8,608,575

Coverage Ratio 3,4 191.4% 161.6% 131.1% 139.3% 133.9% 140.8% 124.5%

December-13December-12

1NPLs include loans that are overdue by 90 days or more or considered impaired on an individual basis at the end of the respective period

2Starting point 1 January 2009, includes loan principal only

3Based on third-party appraisal & validation4LLR plus appraisal value of collateral applicable to NPLs divided by NPLs

Notes:

Net exposure equals total gross loans less loan loss reserve

Standalone, not audited, derived from management reports except for YE 2012, YE 2013 and YE 2014

46.8%43.3%

39.9%

57.1%59.5% 59.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2013 2014 2015

Liberty Bank Georgian Banking Sector

88.9%95.2% 97.5%

45.6% 47.8% 47.1%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2013 2014 2015


8.6%4.0% 3.6%

62.1% 60.4%64.8%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

2013 2014 2015


3.6%

5.5%

6.5%

7.5% 7.6%8.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2013 2014 2015


57.3% 55.1%58.6%

73.5%

112.6% 112.3%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

2013 2014 2015


22.4% 21.1%

28.7%

59.9% 60.1%

69.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

2013 2014 2015


8.0%

11.2%

13.2%

10.0%9.4%

12.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2013 2014 2015

Liberty Bank Georgian Banking Sector*

*interest earning assets include gross loans only

85.7%

64.4% 63.1%

54.1% 55.7%51.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

2013 2014 2015


1.3%

3.8%

4.7%

4.1% 4.1%

5.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2013 2014 2015


4.3%

5.2%

7.1%6.6%

6.1% 6.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2013 2014 2015


1.59%1.50%

2.05%

2.46% 2.51%

2.28%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2013 2014 2015


17.08% 17.75%

23.68%

14.73% 14.68% 15.37%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2013 2014 2015



of 15

Q4 2015 Business Highlights

As of 31 December 2015, the Bank served 161,997 individual clients through the corporate payroll programs administered on behalf of 4,904 corporate and public sector entities;

Opened more than 2,700 new corporate accounts in Q4 2015, serving, as of 31 December 2015, over 97,000 accounts of corporate and public sector entities;

Issued 186,709 debit cards in Q4 2015 (including renewals), bringing the number of debit cards outstanding as of 31 December 2015 to 3,343,284, up 7.0% y-o-y and 1.7% q-o-q;

The number of PAY® cards outstanding reached 1,602,520 as at 31 December 2015, up 14.8% y-o-y and 3.1% q-o-q; as at 31 December 2015,

188,289 PAY® cards outstanding have been co-branded with UnionPay;

As of 31 December 2015, 769 ATMs and 10,497 POS terminals in Georgia accepted PAY® cards, including, respectively, 344 ATMs and 7,900 POS terminals not operated by the Bank;

Issued 1,879 credit cards in Q4 2015 (including renewals), with 132,346 credit cards outstanding as of 31 December 2015, up 2.9% y-o-y and 0.2% q-o-q;

Processed, in Q4 2015, $ 170.0 million worth of international money transfers received, up 7.6% q-o-q and down 16.1% y-o-y, retaining a market-leading position by value of international money transfers received;

Processed, in Q4 2015, $ 47.9 million worth of local P2P transfers through branches and electronic channels including ATMs, down 1% y-o-y and 1% q-o-q;

Processed, in 2015, $ 172.5 million worth of local P2P transfers through branches and electronic channels including ATMs, flat y-o-y;

Processed, in Q4 2015, 2,274,029 bill payments in Tbilisi and 2,825,133 bill payments elsewhere in Georgia, compared to 1,915,290 and 2,900,021 bill payments, respectively, processed in Q4 2014;

Processed, in 2015, 8,219,520 bill payments in Tbilisi and 11,052,826 bill payments elsewhere in Georgia, compared to 7,535,310 and 10,723,861 bill payments, respectively, processed in 2014;

39% of the bill payments were made via the electronic channels in Q4 2015 and 35% in 2015, compared to 23% in Q4 2014 and 20% in 2014;

In Q4 2015, the Bank processed 16.3 million transactions, of which 49.0% were processed via the electronic channels, compared with 38.4% in Q4 2014;

In 2015, the Bank processed 60.4 million transactions, of which 46.6% were processed via the electronic channels, compared to 35.3% in 2014;

114 mobile Liberty Express branches were in use as at 31 December 2015, while the number of stationary branches and service outlets has grown to 553;

As of 31 December 2015, the Bank had 396,999 Mass Market Loans* with the aggregate value of $ 274 million up from 379,553 Mass Market Loans, with the aggregate value of $ 266 million outstanding, as of 30 September 2015;

Retail Client Balances & Deposits reached $ 729.1 million as at 31 December 2015, up 3.0% q-o-q and 12.3% y-o-y;

Private Banking Client Balances & Deposits reached $ 112.8 million as at 31 December 2015, up 2.2% q-o-q and 17.9% y-o-y;

Corporate Client Balances & Deposits stood at $ 374.6 million as at 31 December 2015, down 21.3% q-o-q and 42.1% y-o-y;

$ 86.5 million worth of Certificates of Deposit were issued in Q4 2015, with the aggregate Certificates of Deposit worth $ 352.1 million outstanding as of 31 December 2015 (as compared to $ 258.4 million as of 31 December 2014). 81% of the Certificates of Deposit (by value) were outstanding in $ and 19% were outstanding in foreign currency, with the blended remaining maturity of 11.5 months as of 31 December 2015; and

As of 31 December 2015, the Bank had $ 57.0 million of subordinated debt outstanding qualifying for the inclusion in Tier II capital, compared to $ 8.0 million as at 31 December 2014.

*Mass Market Loans comprise micro & agro loans, pawn loans, home equity loans, car title loans, as well as various types of unsecured consumer loans, such as, for instance, Magic Card balances and instalment loans.


of 15

Q4 2015 Consolidated Income Statement

Q4 2015 Consolidated Cash Flows From Operating Activities Before Changes In Operating Assets & Liabilities

Notes: (1) Growth calculations are based on $ values.

(2) US$ values have been derived from period-average $/US$ exchange rates set out on Page 1 of this news report. (3) Interest income from pension advances is recognised on amortised cost basis.

IFRS-based Change, Change,

Q-o-Q Y-o-Y

US$ $ US$ $ US$ $

Interest Income 27,272,307 65,390,782 28,422,195 66,057,166 33,459,098 60,424,585 -1.0% 8.2%

Interest Expense 12,543,803 30,076,263 12,744,222 29,619,358 16,819,586 30,374,893 1.5% -1.0%

Net Interest Income 14,728,504 35,314,519 15,677,973 36,437,808 16,639,512 30,049,692 -3.1% 17.5%

Fee And Commission Income 4,638,362 11,121,395 4,408,765 10,246,588 4,526,442 8,174,410 8.5% 36.1%

Fee And Commission Expenses 825,149 1,978,459 791,861 1,840,397 548,659 990,837 7.5% 99.7%

Net Fee and Commission Income 3,813,213 9,142,936 3,616,904 8,406,191 3,977,783 7,183,574 8.8% 27.3%

Income From Documentary Operations 5,483 13,146 5,695 13,235 44,775 80,861 -0.7% -83.7%

Documentary Operations Expenses 1,418 3,399 1,451 3,373 1,053 1,902 0.8% 78.7%

Net Income From Documentary Operations 4,065 9,747 4,243 9,862 43,722 78,959 -1.2% -87.7%

Net Other Non-Interest Income/(Loss) 137,526 329,746 105,990 246,335 208,192 375,979 33.9% -12.3%

Net Income From Foreign Exchange & Translation Operations 664,609 1,593,531 884,575 2,055,877 1,310,569 2,366,789 -22.5% -32.7%

Net Non-Interest Income 4,619,412 11,075,960 4,611,712 10,718,265 5,540,267 10,005,300 3.3% 10.7%

Total Operating Income 19,347,917 46,390,479 20,289,685 47,156,072 22,179,779 40,054,993 -1.6% 15.8%

Recurring Operating Costs 12,457,894 29,870,280 11,693,223 27,176,689 13,749,646 24,830,814 9.9% 20.3%

Personnel Cost 5,725,337 13,727,635 5,691,406 13,227,625 6,407,247 11,571,001 3.8% 18.6%

Selling, General & Administrative Expense 1,746,235 4,186,946 1,489,534 3,461,887 1,800,311 3,251,224 20.9% 28.8%

Procurement & Operations Support 1,433,573 3,437,276 1,319,606 3,066,949 1,901,295 3,433,595 12.1% 0.1%

Depreciation, Amortisation & Impairment 2,043,752 4,900,302 1,773,963 4,122,939 2,356,439 4,255,549 18.9% 15.2%

Other Operating Expenses 1,335,038 3,201,020 1,263,203 2,935,862 1,112,554 2,009,188 9.0% 59.3%

Various Tax Expenses 173,959 417,101 155,510 361,428 171,800 310,258 15.4% 34.4%

Normalised Net Operating Income 6,890,023 16,520,200 8,596,462 19,979,383 8,430,133 15,224,178 -17.3% 8.5%

Non-Recurring Costs/(Income) (211,169) (506,320) 72,184 167,765 51,097 92,277 NMF NMF

Pre-Provision Operating Profit 7,101,192 17,026,519 8,524,278 19,811,618 8,379,036 15,131,901 -14.1% 12.5%

Net Provisions 2,766,162 6,632,423 3,871,724 8,998,429 4,065,331 7,341,679 -26.3% -9.7%

(Gain)/Loss On Asset Sale & Recovery (19,468) (46,678) (1,267) (2,944) (25,661) (46,341) NMF 0.7%

Pre-Bonus Result 4,354,498 10,440,775 4,653,821 10,816,133 4,339,366 7,836,564 -3.5% 33.2%

Discretionary Bonus Pool 655,459 1,571,594 699,836 1,626,518 599,028 1,081,799 -3.4% 45.3%

Share Of Associates' Net Profit/(Loss) (17,448) (41,836) (6,539) (15,199) 37,693 68,070 NMF -161.5%

Pre-Tax Profit 3,681,590 8,827,345 3,947,445 9,174,417 3,778,030 6,822,835 -3.8% 29.4%

Accrued Or Paid Income Tax Benefit/(Expense) (557,140) (1,335,855) (594,861) (1,382,540) (692,735) (1,251,026) -3.4% 6.8%

Impairment of Deferred Tax Assets 1,065,897 2,555,700 - - 1,043,386 1,884,276 NMF 35.6%

Net Income 4,190,347 10,047,191 3,352,585 7,791,877 4,128,682 7,456,086 28.9% 34.8%

Q4 '15

Unaudited

Q4 '14Q3 '15

Unaudited Unaudited


Q-o-Q Y-o-Y

US$ $ US$ $ US$ $

Cash flows from operating activities

Interest received 24,874,584 59,641,763 26,616,388 61,860,218 30,476,101 55,037,519 -3.6% 8.4%

Interest paid (10,305,511) (24,709,512) (10,764,899) (25,019,135) (15,084,504) (27,241,467) -1.2% -9.3%

Fees and commissions received 4,656,362 11,164,554 4,363,768 10,142,008 4,519,011 8,160,990 10.1% 36.8%

Fees and commissions paid (812,205) (1,947,423) (763,272) (1,773,952) (556,161) (1,004,384) 9.8% 93.9%

Income from documentary operations 30,408 72,908 (15,508) (36,044) 38,965 70,368 -302.3% 3.6%

Expense on documentary operations (1,418) (3,399) (1,451) (3,373) (1,053) (1,902) 0.8% 78.7%

Realised gains less losses from dealing in foreign currencies 5,373,470 12,883,962 1,487,426 3,456,986 891,008 1,609,093 272.7% 700.7%

Recoveries of assets previously written off 156,052 374,166 52,020 120,902 76,692 138,499 209.5% 170.2%

Net other income/(loss) received 432,347 1,036,637 114,770 266,742 203,368 367,268 288.6% 182.3%

Salaries and other benefits paid (5,831,408) (13,981,961) (5,473,598) (12,721,410) (6,916,682) (12,491,001) 9.9% 11.9%

Other recurring operating costs paid (4,175,461) (10,011,499) (3,959,068) (9,201,428) (4,900,591) (8,850,095) 8.8% 13.1%

Cash flows from operating activities before changes in operating assets and liabilities 14,397,219 34,520,197 11,656,575 27,091,514 8,746,154 15,794,889 27.4% 118.6%

Q4 2015 Q4 2014

Unaudited Unaudited

Q3 2015

Unaudited


of 15

2015 Consolidated Income Statement

2015 Consolidated Cash Flows From Operating Activities Before Changes In Operating Assets & Liabilities

Notes: (1) Growth calculations are based on $ values.

(2) US$ values have been derived from period-average $/US$ exchange rates set out on Page 1 of this news report. (3) Interest income from pension advances is recognised on amortised cost basis.

IFRS-based Change,

Y-o-Y

US$ $ US$ $

Interest Income 113,035,158 256,610,031 127,229,340 224,668,820 14.2%

Interest Expense 52,231,807 118,575,547 63,349,385 111,865,954 6.0%

Net Interest Income 60,803,351 138,034,484 63,879,955 112,802,865 22.4%

Fee And Commission Income 17,101,611 38,823,717 16,928,870 29,893,964 29.9%

Fee And Commission Expenses 2,895,156 6,572,522 2,241,711 3,958,542 66.0%

Net Fee and Commission Income 14,206,455 32,251,195 14,687,159 25,935,422 24.4%

Income From Documentary Operations 28,271 64,179 222,601 393,082 -83.7%

Documentary Operations Expenses 5,423 12,312 6,626 11,701 5.2%

Net Income From Documentary Operations 22,848 51,868 215,975 381,381 -86.4%

Net Other Non-Interest Income/(Loss) 471,948 1,071,405 624,145 1,102,150 -2.8%

Net Income From Foreign Exchange & Translation Operations 3,787,463 8,598,219 3,991,798 7,048,944 22.0%

Net Non-Interest Income 18,488,714 41,972,688 19,519,076 34,467,897 21.8%

Total Operating Income 79,292,064 180,007,172 83,399,032 147,270,763 22.2%

Recurring Operating Costs 47,334,300 107,457,330 51,520,441 90,977,731 18.1%

Personnel Cost 23,033,977 52,291,248 25,086,957 44,299,978 18.0%

Selling, General & Administrative Expense 6,025,630 13,679,258 5,030,458 8,883,069 54.0%

Procurement & Operations Support 5,462,788 12,401,506 7,842,813 13,849,287 -10.5%

Depreciation, Amortisation & Impairment 7,292,556 16,555,408 8,576,821 15,145,439 9.3%

Other Operating Expenses 4,867,318 11,049,683 4,186,880 7,393,431 49.5%

Various Tax Expenses 652,031 1,480,227 796,513 1,406,527 5.2%

Normalised Net Operating Income 31,957,764 72,549,842 31,878,590 56,293,031 28.9%

Non-Recurring Costs/(Income) 27,838 63,197 840,800 1,484,733 -95.7%

Pre-Provision Operating Profit 31,929,926 72,486,645 31,037,790 54,808,298 32.3%

Net Provisions 14,184,560 32,201,490 16,139,656 28,500,324 13.0%

(Gain)/Loss On Asset Sale & Recovery (930) (2,111) (49,138) (86,770) -97.6%

Pre-Bonus Result 17,746,296 40,287,266 14,947,272 26,394,744 52.6%

Discretionary Bonus Pool 2,670,157 6,061,734 2,229,176 3,936,405 54.0%

Share Of Associates' Net Profit/(Loss) (33,051) (75,031) 14,338 25,318 NMF

Pre-Tax Profit 15,043,088 34,150,500 12,732,434 22,483,657 51.9%

Accrued Or Paid Income Tax Benefit/(Expense) (2,269,634) (5,152,474) (2,082,525) (3,677,442) 40.1%

Impairment of Deferred Tax Assets 1,125,770 2,555,700 1,681,061 2,968,514 -13.9%

Net Income 13,899,224 31,553,726 12,330,970 21,774,729 44.9%

2015 2014

Unaudited Audited

IFRS-based Change,

Y-o-Y

US$ $ US$ $

Cash flows from operating activities

Interest received 107,974,035 245,120,376 121,834,709 215,142,673 13.9%

Interest paid (44,500,150) (101,023,301) (59,580,056) (105,209,858) -4.0%

Fees and commissions received 17,055,052 38,718,020 16,919,624 29,877,637 29.6%

Fees and commissions paid (2,846,327) (6,461,670) (2,234,111) (3,945,120) 63.8%

Income from documentary operations 52,934 120,171 218,746 386,274 -68.9%

Expense on documentary operations (5,423) (12,312) (6,626) (11,701) 5.2%

Realised gains less losses from dealing in foreign currencies 9,459,223 21,474,128 3,853,067 6,803,966 215.6%

Recoveries of assets previously written off 323,842 735,178 461,641 815,192 -9.8%

Net other income/(loss) received 927,803 2,106,278 1,318,744 2,328,713 -9.6%

Salaries and other benefits paid (24,403,356) (55,399,985) (26,728,401) (47,198,534) 17.4%

Other recurring operating costs paid (16,053,983) (36,445,413) (18,175,002) (32,094,454) 13.6%

Cash flows from operating activities before changes in operating assets and liabilities 47,983,650 108,931,470 37,882,336 66,894,787 62.8%

2015 2014

Unaudited Audited


of 15

31 December 2015 Consolidated Balance Sheet

*Gross Loans include loan principal only Notes: (1) Growth calculations are based on $ values.

(2) US$ values have been derived from period-end $/US$ exchange rates set out on Page 1 of this news report.


Q-o-Q Y-o-Y

US$ $ US$ $ US$ $

Cash 60,673,661 145,307,350 54,373,619 129,496,212 74,850,668 139,491,705 12.2% 4.2%

Balances With The NBG 161,590,139 386,992,224 126,279,116 300,746,343 171,002,290 318,679,868 28.7% 21.4%

Cash Balances With Banks 11,126,433 26,646,694 13,327,556 31,740,908 39,015,488 72,709,264 -16.0% -63.4%

Treasuries & CDs 83,256,691 199,391,450 87,529,006 208,459,081 103,487,444 192,859,201 -4.3% 3.4%

Other Fixed Income Instruments - - - - - - nmf nmf

Gross Loans*, Of Which 297,680,856 712,915,883 316,330,602 753,372,962 411,047,414 766,027,961 -5.4% -6.9%

Loans To Banks - - 10,371,179 24,700,000 - - -100.0% nmf

Loans To Clients 297,680,856 712,915,883 305,959,423 728,672,962 411,047,414 766,027,961 -2.2% -6.9%

CB Loans, Gross 7,355,828 17,616,473 9,220,407 21,959,322 19,825,225 36,946,289 -19.8% -52.3%

CB Loan Loss Provisions (1,695,258) (4,059,974) (1,489,807) (3,548,125) (1,245,601) (2,321,301) 14.4% 74.9%

CB Loans, Net 5,660,570 13,556,499 7,730,600 18,411,197 18,579,624 34,624,987 -26.4% -60.8%

RB Loans, Gross 288,138,954 690,063,980 293,856,632 699,848,955 388,104,459 723,271,469 -1.4% -4.6%

RB Loan Loss Provisions (19,315,419) (46,258,497) (18,099,474) (43,105,707) (19,943,727) (37,167,130) 7.3% 24.5%

RB Loans, Net 268,823,534 643,805,483 275,757,158 656,743,248 368,160,731 686,104,339 -2.0% -6.2%

PB Loans, Gross 2,174,043 5,206,615 2,850,097 6,787,790 3,072,329 5,725,592 -23.3% -9.1%

PB Loan Loss Provisions (85,057) (203,703) (90,419) (215,343) (44,081) (82,148) -5.4% 148.0%

PB Loans, Net 2,088,986 5,002,913 2,759,677 6,572,447 3,028,248 5,643,443 -23.9% -11.3%

CC Loans, Gross 12,032 28,815 32,287 76,894 45,402 84,612 -62.5% -65.9%

CC Loan Loss Provisions (10,136) (24,276) (29,792) (70,954) (14,159) (26,386) -65.8% -8.0%

CC Loans, Net 1,895 4,539 2,494 5,941 31,243 58,225 -23.6% -92.2%

Provisions For Loan Losses (21,105,871) (50,546,450) (19,709,493) (46,940,129) (21,247,567) (39,596,967) 7.7% 27.7%

Deferred Income On Loans (14,402,408) (34,492,327) (15,683,201) (37,351,112) (22,783,743) (42,459,783) -7.7% -18.8%

Net Loans To Clients 262,172,578 627,877,106 270,566,729 644,381,721 367,016,104 683,971,211 -2.6% -8.2%

Accrued Interest & Dividends, Net 5,190,601 12,430,971 4,740,591 11,290,192 6,667,625 12,425,785 10.1% 0.0%

Net Investments 160,193 383,647 172,413 410,619 215,837 402,233 -6.6% -4.6%

Net Property Owned 592,884 1,419,898 657,066 1,564,868 660,874 1,231,605 -9.3% 15.3%

Investment Property 1,948,000 4,665,264 2,106,592 5,017,061 2,692,134 5,017,061 -7.0% -7.0%

Net Property, Plant & Equipment 53,704,707 128,617,402 54,330,819 129,394,279 63,746,010 118,797,064 -0.6% 8.3%

Net Intangible Assets 8,458,356 20,256,918 8,457,275 20,141,846 6,046,881 11,268,968 0.6% 79.8%Net Other Assets 8,402,439 20,123,000 15,208,332 36,220,164 11,538,726 21,503,570 -44.4% -6.4%

Total Assets 657,276,682 1,574,111,926 648,120,295 1,543,563,295 846,940,081 1,578,357,534 2.0% -0.3%

Total Client Balances & Deposits 515,495,282 1,234,559,652 551,902,590 1,314,411,208 754,852,779 1,406,743,638 -6.1% -12.2%

Interbank Deposits 988,711 2,367,863 1,826,806 4,350,722 3,239,204 6,036,581 -45.6% -60.8%

Other Deposits 6,553,816 15,695,735 6,590,416 15,695,735 5,151,178 9,599,735 0.0% 63.5%

Client Balances & Deposits 507,952,755 1,216,496,054 543,485,367 1,294,364,751 746,462,396 1,391,107,322 -6.0% -12.6%

CB Client Balances & Deposits 156,407,780 374,580,992 199,806,380 475,858,874 346,868,960 646,424,993 -21.3% -42.1%

Current Accounts 133,775,363 320,378,616 176,455,761 420,247,041 328,224,907 611,679,937 -23.8% -47.6%

Saving Accounts 1,115,794 2,672,215 1,087,365 2,589,669 5,379,006 10,024,315 3.2% -73.3%

Time Deposits 764,124 1,830,000 891,172 2,122,416 2,147,415 4,001,922 -13.8% -54.3%

Certificates of Deposit 20,752,500 49,700,161 21,372,081 50,899,748 11,117,632 20,718,819 -2.4% 139.9%

RB Client Balances & Deposits 304,450,198 729,127,779 297,351,018 708,171,185 348,271,010 649,037,854 3.0% 12.3%

Current Accounts 51,658,710 123,717,445 53,476,225 127,358,977 62,251,541 116,011,972 -2.9% 6.6%

Saving Accounts 46,195,528 110,633,670 45,773,473 109,014,104 40,694,182 75,837,677 1.5% 45.9%

Time Deposits 98,569,917 236,065,095 96,237,115 229,198,313 142,386,215 265,350,949 3.0% -11.0%

Certificates of Deposit 108,026,042 258,711,569 101,864,205 242,599,791 102,939,072 191,837,255 6.6% 34.9%

PB Client Balances & Deposits 47,094,777 112,787,282 46,327,970 110,334,693 51,322,427 95,644,475 2.2% 17.9%

Current Accounts 22,227,534 53,232,720 19,810,395 47,180,438 12,511,796 23,316,983 12.8% 128.3%

Saving Accounts 4,146,395 9,930,203 3,965,317 9,443,798 3,439,063 6,409,037 5.2% 54.9%

Time Deposits 2,462,318 5,897,006 3,254,757 7,751,528 10,776,412 20,082,921 -23.9% -70.6%

Certificates of Deposit 18,258,530 43,727,354 19,297,501 45,958,929 24,595,157 45,835,535 -4.9% -4.6%

Borrowed Funds 48,018,706 115,000,000 - - - -

Payable Interest & Dividends 3,116,469 7,463,632 3,065,073 7,299,777 6,679,459 12,447,840 2.2% -40.0%

Provisions For Issued Guarantees 9,153 21,921 9,760 23,245 892,019 1,662,366 -5.7% -98.7%

Other Liabilities 11,998,464 28,735,121 13,644,797 32,496,449 9,155,211 17,061,651 -11.6% 68.4%

Subordinated Debt 24,248,646 58,073,083 21,746,585 51,791,668 8,470,015 15,784,720 12.1% 267.9%

Total Liabilities 602,886,721 1,443,853,409 590,368,806 1,406,022,347 780,049,483 1,453,700,216 2.7% -0.7%

Common Shareholders' Equity 51,826,570 124,119,454 55,173,784 131,401,884 63,596,402 118,518,255 -5.5% 4.7%

Convertible Preferrd Shareholders' Equity 2,563,391 6,139,064 2,577,706 6,139,064 3,294,196 6,139,064 0.0% 0.0%

Total Shareholders' Equity 54,389,961 130,258,518 57,751,490 137,540,948 66,890,598 124,657,319 -5.3% 4.5%

Total Liabilities and Shareholders' Equity 657,276,682 1,574,111,926 648,120,295 1,543,563,295 846,940,080 1,578,357,534 2.0% -0.3%

YE 2015 Q3 2015

Unaudited

YE 2014

AuditedUnaudited


of 15

31 December 2015 Consolidated Balance Sheet Net Of The Currency Depreciation Effect (for illustrative purposes only)

Gross Loans include loan principal only Notes: (1) Growth calculations are based on US dollar values.

(2) US$ values for YE 2015, Q3 2015 and YE 2014 have been derived from 31 December 2014 period-end $/US$ exchange rate of 1.8636.


Q-o-Q Y-o-Y

US$ US$ US$

Cash 77,971,319 69,487,128 74,850,668 12.2% 4.2%

Balances With The NBG 207,658,416 161,379,235 171,002,290 28.7% 21.4%

Cash Balances With Banks 14,298,505 17,032,039 39,015,488 -16.0% -63.4%

Treasuries & CDs 106,992,622 111,858,275 103,487,444 -4.3% 3.4%

Other Fixed Income Instruments - - - nmf nmf

Gross Loans*, Of Which 382,547,694 404,256,794 411,047,414 -5.4% -6.9%

Loans To Banks - 13,253,917 - -100.0% nmf

Loans To Clients 382,547,694 391,002,877 411,047,414 -2.2% -6.9%

CB Loans, Gross 9,452,926 11,783,281 19,825,225 -19.8% -52.3%

CB Loan Loss Provisions (2,178,565) (1,903,909) (1,245,601) 14.4% 74.9%

CB Loans, Net 7,274,361 9,879,372 18,579,624 -26.4% -60.8%

RB Loans, Gross 370,285,458 375,536,035 388,104,459 -1.4% -4.6%

RB Loan Loss Provisions (24,822,117) (23,130,343) (19,943,727) 7.3% 24.5%

RB Loans, Net 345,463,341 352,405,692 368,160,731 -2.0% -6.2%

PB Loans, Gross 2,793,848 3,642,300 3,072,329 -23.3% -9.1%

PB Loan Loss Provisions (109,306) (115,552) (44,081) -5.4% 148.0%

PB Loans, Net 2,684,542 3,526,748 3,028,248 -23.9% -11.3%

CC Loans, Gross 15,462 41,261 45,402 -62.5% -65.9%

CC Loan Loss Provisions (13,026) (38,073) (14,159) -65.8% -8.0%

CC Loans, Net 2,436 3,188 31,243 -23.6% -92.2%

Provisions For Loan Losses (27,123,014) (25,187,878) (21,247,567) 7.7% 27.7%

Deferred Income On Loans (18,508,439) (20,042,451) (22,783,743) -7.7% -18.8%

Net Loans To Clients 336,916,241 345,772,548 367,016,104 -2.6% -8.2%

Accrued Interest & Dividends, Net 6,670,407 6,058,270 6,667,625 10.1% 0.0%

Net Investments 205,863 220,336 215,837 -6.6% -4.6%

Net Property Owned 761,911 839,701 660,874 -9.3% 15.3%

Investment Property 2,503,361 2,692,134 2,692,134 -7.0% -7.0%

Net Property, Plant & Equipment 69,015,562 69,432,431 63,746,010 -0.6% 8.3%

Net Intangible Assets 10,869,778 10,808,031 6,046,881 0.6% 79.8%Net Other Assets 10,797,918 19,435,589 11,538,726 -44.4% -6.4%

Total Assets 844,661,905 828,269,637 846,940,081 2.0% -0.3%

Total Client Balances & Deposits 662,459,569 705,307,581 754,852,779 -6.1% -12.2%

Interbank Deposits 1,270,585 2,334,579 3,239,204 -45.6% -60.8%

Other Deposits 8,422,266 8,422,266 5,151,178 0.0% 63.5%

Client Balances & Deposits 652,766,717 694,550,736 746,462,396 -6.0% -12.6%

CB Client Balances & Deposits 200,998,601 255,343,890 346,868,960 -21.3% -42.1%

Current Accounts 171,913,831 225,502,812 328,224,907 -23.8% -47.6%

Saving Accounts 1,433,900 1,389,606 5,379,006 3.2% -73.3%

Time Deposits 981,970 1,138,880 2,147,415 -13.8% -54.3%

Certificates of Deposit 26,668,900 27,312,593 11,117,632 -2.4% 139.9%

RB Client Balances & Deposits 391,246,930 380,001,709 348,271,010 3.0% 12.3%

Current Accounts 66,386,266 68,340,297 62,251,541 -2.9% 6.6%

Saving Accounts 59,365,567 58,496,514 40,694,182 1.5% 45.9%

Time Deposits 126,671,547 122,986,860 142,386,215 3.0% -11.0%

Certificates of Deposit 138,823,551 130,178,037 102,939,072 6.6% 34.9%

PB Client Balances & Deposits 60,521,186 59,205,137 51,322,427 2.2% 17.9%

Current Accounts 28,564,456 25,316,826 12,511,796 12.8% 128.3%

Saving Accounts 5,328,505 5,067,503 3,439,063 5.2% 54.9%

Time Deposits 3,164,309 4,159,438 10,776,412 -23.9% -70.6%

Certificates of Deposit 23,463,916 24,661,370 24,595,157 -4.9% -4.6%

Borrowed Funds 61,708,521 - - nmf nmf

Payable Interest & Dividends 4,004,954 3,917,030 6,679,459 2.2% -40.0%

Provisions For Issued Guarantees 11,763 12,473 892,019 -5.7% -98.7%

Other Liabilities 15,419,146 17,437,459 9,155,211 -11.6% 68.4%

Subordinated Debt 31,161,775 27,791,193 8,470,015 12.1% 267.9%

Total Liabilities 774,765,727 754,465,737 780,049,483 2.7% -0.7%

Common Shareholders' Equity 66,601,982 70,509,704 63,596,402 -5.5% 4.7%

Convertible Preferrd Shareholders' Equity 3,294,196 3,294,196 3,294,196 0.0% 0.0%

Total Shareholders' Equity 69,896,178 73,803,900 66,890,598 -5.3% 4.5%

Total Liabilities and Shareholders' Equity 844,661,905 828,269,637 846,940,080 2.0% -0.3%

YE 2015 Q3 2015 YE 2014

Unaudited Unaudited Audited


of 15

Consolidated Ratios

*2013 Cost of Risk reflects the net recoveries of $ 2.4 million of large legacy loans Note: (1) Loan Loss Reserve/Gross Loans To Clients equals loan loss reserve principal divided by loan principal

(2) Loan Loss Reserve for Loan Loss Reserve Coverage ratio purposes includes loan loss reserve principal with accrued interest and NPL principal with accrued interest

Quarterly ratios are annualised, where applicable

Profitability Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

ROAA, % 2.60% 1.99% 1.92% 2.05% 1.50% 1.59% 0.62% 1.06% 1.11% -1.70%

ROAE, % 29.82% 23.13% 23.29% 23.68% 17.75% 17.08% 6.44% 13.29% 21.58% -45.86%

ROAA, %, normalised nmf nmf 1.43% nmf 1.27% 1.14% NMF NMF NMF NMF

ROAE, %, normalised nmf nmf 17.40% nmf 15.11% 12.26% NMF NMF NMF NMF

Interest Income/Average Interest Earning Assets, % 25.92% 25.30% 22.29% 24.60% 22.42% 20.99% 20.99% 21.58% 25.72% 18.19%

Interest Expense/Interest Income, % 45.99% 44.84% 50.27% 46.21% 49.92% 62.06% 56.98% 56.78% 54.12% 82.63%

Cost Of Funds, % 8.39% 8.13% 8.48% 8.29% 8.37% 9.53% 9.52% 8.12% 7.37% 6.46%

Cost Of Interest Bearing Liabilities, % 9.51% 9.12% 9.57% 9.38% 9.52% 11.28% 12.12% 11.79% 7.64% 10.04%

Net Spread, % 16.41% 16.18% 12.71% 15.22% 12.90% 9.72% 8.88% 9.78% 18.08% 8.15%

Net Interest Margin, % 13.92% 13.79% 11.04% 13.15% 11.23% 7.96% 9.03% 9.44% 11.89% 3.16%

Net Interest Margin on Average Gross Loans To Clients, % 16.34% 16.58% 13.43% 15.50% 13.16% 9.47% 9.74% 9.40% 13.59% 3.25%

Net Fee & Commission Income/Total Operating Income, % 19.71% 17.83% 17.93% 17.92% 17.63% 23.33% 31.77% 42.80% 51.29% 71.49%

Net Fee & Commission Income/Average Total Assets, % 2.36% 2.15% 1.85% 2.10% 1.78% 1.85% 3.48% 4.96% 7.64% 9.21%

Net Non-Interest Income/Total Operating Income,% 23.88% 22.73% 24.98% 23.32% 23.29% 32.75% 40.60% 50.95% 62.43% 89.85%

Net Non-Interest Income/Average Total Assets,% 2.86% 2.74% 2.58% 2.73% 2.37% 2.60% 4.44% 6.45% 9.27% 11.58%

Operating Leverage (Normalised), ppts -4.48% 4.78% 29.80% 4.11% 41.74% -13.67% -7.08% 5.58% 43.62% 18.57%

Recurring Earning Power,% 4.40% 5.07% 3.90% 6.30% 3.74% 1.35% 3.06% 3.87% 4.12% 3.97%

Efficiency Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

Total Assets/Employee, $ 267,980 265,857 286,245 267,980 286,245 251,431 184,827 181,072 150,232 84,395

Total Operating Income/Employee, $ 31,590 32,488 29,057 30,645 26,672 17,502 20,241 18,206 16,228 10,843

Total Recurring Operating Costs/Income Ratio (Normalised),% 67.78% 61.08% 64.69% 63.06% 64.41% 85.70% 75.37% 70.78% 73.16% 103.44%

Total Recurring Operating Costs/Average Total Assets (Normalised), % 8.13% 7.37% 6.67% 7.38% 6.52% 6.80% 8.25% 8.21% 10.90% 13.33%

Total Operating Income/ Average Total Assets, % 12.00% 12.07% 10.32% 11.71% 10.12% 7.93% 10.94% 12.70% 14.95% 12.85%

Total Recurring Cash Costs/Average Total Assets, % 6.86% 6.31% 5.58% 6.31% 5.49% 5.76% 7.06% 6.96% 9.38% 11.14%

Net Income (Loss)/Employee, $ 6,842 5,368 5,077 5,372 3,898 2,521 1,142 1,713 1,199 (1,432)

Personnel Costs/Average Total Assets, % 3.96% 3.80% 3.26% 3.80% 3.32% 3.68% 4.47% 4.30% 5.97% 6.31%

Personnel Costs/Total Recurring Operating Costs,% 51.22% 54.66% 50.96% 54.30% 53.13% 56.01% 56.14% 54.10% 54.83% 47.36%

Personnel Costs/Total Operating Income,% 32.98% 31.50% 31.59% 32.42% 32.80% 46.45% 40.85% 37.11% 40.12% 48.99%

Net Normalised Operating Income/Total Operating Income, % 35.61% 42.37% 38.01% 40.30% 38.27% 17.07% 27.22% 31.40% 28.24% -3.44%

Net Income (Loss)/Total Operating Income,% 21.66% 16.52% 18.61% 17.53% 14.61% 14.40% 5.64% 9.15% 7.39% -13.21%

Liquidity Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

Net Loans/Total Assets,% 39.89% 41.75% 43.33% 39.89% 43.33% 45.60% 44.58% 43.74% 29.49% 25.14%

Average Net Loans/Average Total Assets,% 41.07% 43.26% 43.80% 42.55% 45.32% 40.92% 44.21% 36.67% 28.39% 29.68%

Net Loans/Client Balances & Deposits, % 51.61% 49.78% 49.17% 51.61% 49.17% 51.60% 54.21% 54.24% 43.83% 39.76%

Average Net Loans/Average Client Balances & Deposits,% 50.04% 49.09% 50.08% 50.70% 49.99% 46.80% 55.07% 47.07% 41.99% 49.41%

Net Loans/Total Deposits,% 50.86% 49.02% 48.62% 50.86% 48.62% 51.49% 54.11% 51.73% 39.19% 31.81%

Net Loans/Total Liabilities,% 43.49% 45.83% 47.05% 43.49% 47.05% 50.01% 50.52% 48.56% 31.54% 25.88%

Current Account Balances/Client Balances & Deposits,% 40.88% 45.95% 53.99% 40.88% 53.99% 61.29% 63.96% 77.15% 67.71% 71.57%

Savings Account Balances/Client Balances & Deposits, % 10.13% 9.35% 6.63% 10.13% 6.63% 4.30% 1.54% 1.23% 0.32% 0.00%

Time Deposits/Client Balances & Deposits,% 20.04% 18.47% 20.81% 20.04% 20.81% 30.68% 34.51% 21.62% 31.97% 28.43%

Certificates of Deposit/Client Balances % Deposits, % 28.95% 26.23% 18.57% 28.95% 18.57% 3.74% 0.00% 0.00% 0.00% 0.00%

Client Balances & Deposits/Total Deposits,% 98.54% 98.47% 98.89% 98.54% 98.89% 99.80% 99.83% 95.38% 92.33% 80.00%

Interest Earning Assets/Total Assets, % 63.92% 68.64% 76.33% 63.92% 76.33% 72.96% 69.26% 67.06% 50.25% 35.30%

Average Interest Earning Assets/Average Total Assets,% 65.25% 66.80% 68.51% 67.86% 69.12% 66.98% 71.98% 66.15% 47.76% 41.40%

Liquid Assets/Total Assets,% 48.18% 43.43% 45.85% 48.18% 45.85% 40.71% 34.93% 35.35% 42.00% 35.06%

Liquid Assets/Total Liabilities,% 52.52% 47.68% 49.79% 52.52% 49.79% 44.65% 39.58% 39.24% 44.93% 36.52%

Client Balances & Deposits/Total Assets,% 77.28% 83.86% 88.14% 77.28% 88.14% 88.37% 82.24% 80.64% 68.41% 63.23%

Total Deposits/Total Assets,% 78.43% 85.15% 89.13% 78.43% 89.13% 88.55% 82.39% 84.54% 75.27% 79.04%

Total Deposits/Total Liabilities,% 85.50% 93.48% 96.77% 85.50% 96.77% 97.11% 93.37% 93.86% 80.52% 81.38%

Client Balances & Deposits/Shareholders' Equity (Times) 9.34 9.41 11.16 9.34 11.16 10.02 6.99 8.12 11.12 22.01

Leverage (Total Liabilities/Equity), Times 11.08 10.22 11.66 11.08 11.66 10.34 7.50 9.08 15.25 33.80

Asset Quality Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

NPLs/Gross Loans To Clients,% 7.69% 6.45% 6.82% 7.69% 6.82% 4.74% 4.29% 11.66% 18.55% 35.46%

Loan Loss Reserve/Gross Loans To Clients,% 7.09% 6.44% 5.17% 7.09% 5.17% 4.28% 5.22% 9.69% 12.67% 22.38%

Coverage Ratio, % 124.53% 140.79% 131.06% 124.53% 131.06% 161.57% 191.37% 120.64% 116.41% 124.30%

Average Loan Loss Reserve/Average Gross Loans To Clients, % 6.77% 7.36% 5.02% 7.18% 4.47% 3.92% 9.15% 9.98% 14.09% 20.23%

Loan Loss Reserve Coverage Ratio, % 108.40% 117.81% 94.49% 108.40% 94.49% 90.18% 121.56% 86.30% 59.84% 60.35%

Cost Of Risk, % 3.68% 4.84% 3.86% 4.31% 3.90% -0.73% 3.03% 6.21% 7.01% 14.01%

Capital Adequacy (Basel I) Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

Shareholders' Equity/Total Assets,% 8.28% 8.91% 7.90% 8.28% 7.90% 8.82% 11.76% 9.36% 6.15% 2.87%

Average Shareholders' Equity/Average Total Assets,% 8.71% 8.62% 8.24% 8.47% 8.44% 9.32% 9.59% 7.99% 7.04% 3.71%

Tier I Capital ($) 131,694,387 129,086,096 116,202,466 131,694,387 116,202,466 93,826,652 77,896,560 51,012,356 15,276,432 (13,788,000)

Tier II Capital ($) 62,743,730 61,109,447 32,059,182 62,743,730 32,059,182 29,914,735 27,639,666 27,802,055 11,905,801 (346,656)

Total Capital ($) 194,438,118 190,195,542 148,261,648 194,438,118 148,261,648 123,741,387 105,536,225 78,814,411 27,182,233 (14,134,656)

Risk-Weighted Assets ($) 823,396,464 858,104,623 870,978,307 823,396,464 870,978,307 783,890,757 577,420,546 513,024,707 332,500,470 220,412,267

Risk-Weighted Assets/Total Assets 52.31% 55.59% 55.18% 52.31% 55.18% 60.60% 68.83% 69.97% 62.60% 68.66%

Tier I Ratio 15.99% 15.04% 13.34% 15.99% 13.34% 11.97% 13.49% 9.94% 4.60% -6.26%

Total Capital Adequacy Ratio 23.61% 22.16% 17.02% 23.61% 17.02% 15.79% 18.28% 15.36% 8.20% -6.41%

Capital Adequacy (Current NBG Regulation) Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

Tier I Capital ($) 90,596,806 107,945,539 106,957,635 90,596,806 106,957,635 72,691,345 59,974,575 30,533,397 (6,488,209) (18,276,269)

Tier II Capital ($) 75,387,379 70,085,019 35,699,118 75,387,379 35,699,118 47,436,908 16,268,185 17,947,469 - -

Total Capital ($) 165,984,185 178,030,558 142,656,753 165,984,185 142,656,753 120,128,253 76,242,760 48,480,865 (7,871,194) (23,845,454)

Risk-Weighted Assets ($) 849,311,060 884,390,405 942,866,575 849,311,060 942,866,575 888,120,672 620,795,618 557,986,619 362,499,817.19 241,967,475.00

Risk-Weighted Assets/Total Assets 53.47% 56.68% 58.79% 53.47% 58.79% 66.97% 68.48% 74.44% 68.29% 75.37%

Tier I Ratio 10.67% 12.21% 11.34% 10.67% 11.34% 8.18% 9.66% 5.47% -1.79% -7.55%

Total Capital Adequacy Ratio 19.54% 20.13% 15.13% 19.54% 15.13% 13.53% 12.28% 8.69% -2.17% -9.85%

Capital Adequacy (New NBG Regulation (Basel II/III)) Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

Tier I Capital 108,512,842 122,411,994 121,923,093 108,512,842 121,923,093 107,971,579 NMF NMF NMF NMF

Common Equity Tier I 102,373,778 116,272,930 115,784,029 102,373,778 115,784,029 102,792,515 NMF NMF NMF NMF

Additional Tier I 6,139,064 6,139,064 6,139,064 6,139,064 6,139,064 5,179,064 NMF NMF NMF NMF

Tier II Capital 56,494,511 53,418,910 17,154,894 56,494,511 17,154,894 10,058,275 NMF NMF NMF NMF

Total Capital 165,007,354 175,830,904 139,077,987 165,007,354 139,077,987 118,029,854 NMF NMF NMF NMF

Risk Weighted Assets ($) 1,189,507,535 1,085,663,446 1,024,043,234 1,189,507,535 1,024,043,234 950,818,748 NMF NMF NMF NMF

Risk-Weighted Assets/Total Assets 75.64% 69.01% 63.31% 75.64% 63.31% 71.10% NMF NMF NMF NMF

Common Equity Tier I Ratio 8.61% 10.71% 11.31% 8.61% 11.31% 10.81% NMF NMF NMF NMF

Tier I Capital Ratio 9.12% 11.28% 11.91% 9.12% 11.91% 11.36% NMF NMF NMF NMF

Total Capital Adequacy Ratio 13.87% 16.20% 13.58% 13.87% 13.58% 12.41% NMF NMF NMF NMF

Selected Operating Data Q4 2015 Q3 2015 Q4 2014 2015 2014 2013 2012 2011 2010 2009

Full Time Employees (FTEs), Standalone 4,705 4,611 4,322 4,705 4,322 3,936 2,982 2,935 2,083 1,890

Contractors, Standalone 1,169 1,195 1,192 1,169 1,192 1,209 1,557 1,524 1,861 1,914

Total Employees, Standalone 5,874 5,806 5,514 5,874 5,514 5,145 4,539 4,459 3,944 3,804

Assets Per FTE ($) 334,562 334,757 356,040 334,562 365,191 347,750 281,332 275,369 257,102 169,862

Number Of Branches & Service Outlets 553 554 517 553 517 498 334 195 192 177

Number of Liberty Express Mobile Branches 114 114 112 114 112 105 100 86 12 -

Number Of ATMs 425 404 386 425 386 342 288 248 203 136


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Ratio Definitions

1 Return On Average Total Assets (ROAA) equals Net Income of the period divided by average Total Assets for the same period; 2 Return On Average Total Equity (ROAE) equals Net Income of the period divided by average Total Shareholders’ Equity for the same period; 3 Normalised Return On Average Total Assets equals Net Income of the period less Deferred Tax Benefit/(Charge) divided by average Total

Assets for the same period; 4 Normalised Return On Average Total Equity (ROAE) equals Net Income of the period less Deferred Tax Benefit/(Charge) divided by average

Total Shareholders’ Equity for the same period; 5 Average Interest Earning Assets are calculated on a quarterly, half-yearly, nine months or full yearly basis; Interest Earning Assets include:

Cash & Balances With the NBG (with interest accrual), Cash & Balances With Banks, Treasuries, Other Fixed Income Instruments and Gross Loans To Clients;

6 Cost Of Funds equals Interest Expense of the period divided by average Total Liabilities for the same period; 7 Cost Of Interest-Bearing Liabilities equals Interest Expense of the period divided by average Interest Bearing Liabilities for the same period;

Interest Bearing Liabilities include: Client Balances & Deposits, Borrowed Funds, Contingent Capital Participation Notes and Interbank Deposits;

8 Net Spread equals Interest Income of the period divided by Average Interest Earning Assets for the same period less Cost of Interest Bearing Liabilities;

9 Net Interest Margin equals Net Interest Income of the period divided by Average Interest Earning Assets for the same period; 10 Net Interest Margin on Average Gross Loans To Clients equals Interest Income From Loans less Interest Expense of the period divided by

Average Gross Loans to Clients for the same period; 11 Total Operating Income includes Net Interest Income and Net Non-Interest Income; 12 Operating Leverage (Normalised) equals y-o-y percentage change in Total Operating Income less y-o-y percentage change in Total Recurring

Operating Costs; 13 Recurring Earning Power equals Profit (Pre-Bonus) Before Provisions of the period divided by average Total Assets for the same period; 14 Cost/Income (Normalised) equals Total Recurring Operating Costs plus Discretionary Bonus Pool of the period divided by Total Operating

Income; 15 Personnel costs include salaries, ESOP costs, variable bonuses and discretionary bonus pool; 16 Cash Costs/Average Total Assets equals Total Recurring Operating Costs plus Discretionary Bonus Pool less Depreciation & Amortisation of

the period divided by average Total Assets for the same period; 17 Client Balances & Deposits include Corporate Banking (CB), Retail Banking (RB) and Private Banking (PB) client balances & deposits; 18 Total Deposits include Interbank Deposits, Other Deposits and Client Balances & Deposits; 19 Shareholders’ Equity equals to Total Shareholders’ Equity; 20 Liquid Assets include Cash, Cash Balances With the NBG, Cash Balances With Banks, Treasuries and Other Fixed Income Instruments; 21 LLR includes Loan Loss Reserve Principal; 22 NPLs include loans that are overdue by 90 days or more at the end of the respective period as well as certain legacy loans classified by

management as such; 23 NPL Coverage ratio equals Loan Loss Reserve as of the period end plus collateral appraisal value applicable to NPLs divided by NPLs as of the

same date; 24 Loan Loss Reserve Coverage Ratio equals Loan Loss Reserve as of the period end divided by NPLs as of the same date; 25 Cost Of Risk equals Net Provision For Loan Losses of the period, less provisions for and recovery of other assets, divided by average Gross

Loans To Clients for the same period; 26 Eligible Tier II Capital equals total available Tier II capital less any amounts in excess of Tier I capital. Since Tier I capital was negative for the

year ended 31 December 2009, none of the available Tier II capital has been taken into account for the purposes of Basel Capital I Accord Standards capital requirement computations;

27 The Tier I capital adequacy ratio calculated in accordance with Basel I Capital Accord Standards. The Tier I capital adequacy ratio of the Bank equals the Tier I capital divided by the risk weighted assets;

28 Total capital adequacy ratio calculated in accordance with Basel I Capital Accord Standards. The total capital adequacy ratio of the Bank equals total capital (Tier I +Tier II - deductions) divided by the risk weighted assets;

29 The Tier I and Total Capital Adequacy ratio in accordance with the National Bank of Georgia (the “NBG”) Standards; 30 Current NBG Regulation means capital adequacy requirements for the commercial banks in Georgia approved by decree #9 dated 30

September 2008 of the President of the NBG. The capital adequacy calculation methodology adopted by the NBG differs in certain material respects from the Bank for International Settlements (BIS) Basel I framework, but has historically been more stringent, due, inter alia, to the higher market-risk weighting of the assets;

31 New NBG Regulation means Capital adequacy requirements for the commercial banks in Georgia approved by decree #100/04 on 23 October 2013. The new regulation follows BIS Basel II/III framework, though deviates from it on several material issues. All Georgian banks should be in compliance with minimum capital adequacy ratios under New Regulation starting from 30 June 2014. During transitional period 2014-2017 banks should comply with both Old Regulation and New Regulation.

liberty bank announces unaudited ifrs-based q4 2015 full-year 2015 results 160209

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