This document provides an overview of People's Bank of Georgia, the largest bank in the country. It discusses the bank's branch and ATM network across Georgia, regional coverage, management structure, retail and corporate banking services, social projects, IT infrastructure, subsidiaries, financial performance, and future plans. People's Bank aims to provide universal banking services throughout Georgia and be the backbone of the country's economy through its extensive branch network and focus on customers.

1. At People’s Service

2. 2 CONTENT:
Georgian Banking Sector Highlights................................................... 4
Introduction ......................................................................................... 7
Branch and ATM Network across Georgia ......................................... 8
Regional Coverage ............................................................................. 9
Mission, Vision & Strategy .................................................................. 10
Management Structure ....................................................................... 11
Retail Customer Communication and Service Delivery ...................... 12
Retail Banking - Prioritized Direction .................................................. 13
Corporate Banking.............................................................................. 17
Leader in Money Transfers ................................................................. 21
Leader in Plastic Card Business......................................................... 22
Social Projects .................................................................................... 23
IT Infrastructure .................................................................................. 24
Fixed Assets Overview ...................................................................... 25
Daugther Companies.......................................................................... 26
The Bank’s Standalone ...................................................................... 29
International Relations ........................................................................ 31
Future Co-operation ........................................................................... 32

3. 3
GEORGIAN BANKING SECTOR HIGHLIGHTS
8 Months Overview of 2007

4. 4 GEORGIAN BANKING SECTOR HIGHLIGHTS
Banking Sector 2004 2005 Since 2004 2006 Since 2005 Aug.07 Since 2006
Total Assets 1 699 154 2 548 267 50% 4 227 647 66% 6 482 463 53%
Loans 964 918 1 730 467 79% 2 681 495 55% 3 940 801 47%
Total Liabilities 1 326 641 2 068 780 56% 3 329 273 61% 5 303 838 59%
Deposits 982 968 1 538 063 56% 2 327 897 51% 3 289 911 41%
Net Profit 27 482 61 756 125% 92 970 51% 77 108 24% (on an yearly basis)
Customer Allocation by Banks
Market Share
by Customers
64,6% 11,2% 5,8% 5,5% 3,8% 4,7% 2,3% 2,1% People’s Bank market share by Customers
as of August 2007
1,800,000
1,610,000
1,600,000
1,400,000 Other
37%
1,200,000
1,000,000
800,000
600,000
400,000 280,353
Peoples Bank
200,000 145,678 138,838 96,625 119,690
58,169
63%
52,960
Peoples Bank of Procredit VTB Bank TBC Cartu Other
Bank Georgia Bank Republic Bank Bank

5. 5 GEORGIAN BANKING SECTOR HIGHLIGHTS
Branch Network in Georgian Peer Group’s market shares in
Banking System – 2007 Net Commission Income
Share in Banking
48% 24% 7% 7% 5% 3% 1% 5%
System
Number of units as of August 2007 Shares of Net Commission Income
220 30%
200 200
180 25% 24% 25% 25%
23%
160 2006 2007- August
20%
140
120 101
15%
100 18%
80 16%
10% 9%
60 8% 8% 8%
7% 7%
6% 6%
40 30 5% 5% 5%
28
19 19
20 13
5
0%
Peoples Bank of Procredit VTB Bank TBC Cartu Other Peoples Bank of Procredit VTB Bank TBC Cartu Other
Bank Georgia Bank Republic Bank Bank Bank Georgia Bank Republic Bank Bank

6. PEOPLE’S BANK OF GEORGIA
Figures and Curves

7. 7 INTRODUCTION
People’s Bank 5 Years Ago
JSC People’s Bank of Georgia was founded by the end of 2002 year on the basis of AGRO Industrial Bank.
By the Stockholders’ decision the bank all encompassed all the existing 30 branches, implementing high quality products in all regions. The result of all the
taken activities is that People’s bank gained strong and stable position in the banking sector, with the biggest network in Georgia. Nowadays, the bank owns
200 units in total (branches, service centers, and pavilions) in 67 regions. In most of the regions People’s Bank is the only banking institution.
The Bank Today
The largest branch network
200 branches
150 ATMs
1 610 000 retail account
The biggest number of International and Local Cards
550 000 International Visa Cards
Backbone of Georgian Economy
850 000 Cards Issued
Leader in Money Transfer
17 Money transfer systems
1 local money transfer system
The only banking institution in Georgia initiating social projects The Biggest Number of Customers
No. 1 in net commission incomes (c. 25%)
Daughter Companies: and Branch Network
People’s Insurance Company
People’s Post
Real Estate Development
Public Investment Management Center
People’s Fund
High Sense of Corporate Social
IT and Infrastructure: Responsibility
Own processing center
Partner of Georgian Government in:
Distribution of Pensions and Allowances
Public Register Services
No. 1 Reformer in: Sound Customer Orientation
Establishing Plastic Card payment at Penitentiary system- prisoners
Establishing plastic card payment system in Tbilisi Public Schools
and Communication
Planning to establish plastic cards payment system in high education
institutions and public transport

8. 8 BRANCH AND ATM NETWORK ACROSS GEORGIA
200 Branches including 9 Pavilions
150 ATMs

9. 9 REGIONAL COVERAGE
Khulo Abasha
Khoni Adigeni
Khobi Ambrolauri
Khelvachauri Aspindza
Khashuri Akhalgori
Kharagauli Akhalkalaki
Chiatura Akhmeta
Tskaltubo Akhaltshikhe
Tsalka Batumi
Tsalenjikha Baghdati
Tsageri Bolnisi
Chkhorotsku Borjomi
Chokhatauri Gardabani
Shuakhevi Gori
Kvareli Gurjaani
Kazbegi Dedoplistskaro
Kutaisi Dmanisi
Kobuleti Dusheti
Keda Vani
Zemo Abkhazia
Kareli
Poti Zestaponi
Tkibuli Zugdidi
Sighnaghi Tbilisi
Senaki Tetritskaro
Sachkhere Telavi
Samtredia Terjola
Sagarejo Tianeti
Rustavi Kaspi
Oni Lagodekhi
Ozurgeti Lanchkhuti
Ninotsminda Mtskheta Lentekhi
Mestia Martvili Marneuli Liaxvi

10. 10 MISSION, VISION & STRATEGY
Our Mission
To provide universal, accessible and modern services to the population throughout the country
Sound management Our Vision
To deliver quality services at Bank’s offices. Our major priority is to ensure a steady increase of the clients’
satisfaction based on client-friendly, accurate and prompt services.
Cutting-edge expertise
Strategy
• To promote growth of the retail banking system
Cross-selling synergies • Maintain and solidify customer oriented approach
u
• Building banking operations complying internationa standards
a ational
• Maintaining leading position in servicing social projects by constant improvement of th service level
s the
• Offering innovative and highly competiti broad-range products to population
d etitive
• Placing special emphasis on the diversity, simplicity and accessibility of services
s div
Cost efficiency

11. 11 MANAGEMENT STRUCTURE
Board of Directors
General Director
Infrastructure Retail Financial Risk
Development Banking Support Management
RB Committee
MIS Credit Committee
Board of Branch
ALCO Committee
Managers

12. 12 RETAIL CUSTOMER COMMUNICATION AND SERVICE DELIVERY
1,610,000 Clients / 550,000 Visa Cards / 200,000 Client Relationships
5 Branches of People’s Credit
Branches 200 Branches including People’s Credit
9 Pavilions in Georgia,
ATMs People’s Post
POS People’s Insurance
SMS Service
Brokerage Company
Real Estate
Processing Center Development Company
card processing center
OSMP

13. 13 RETAIL BANKING - MAJOR DIRECTION
Retail loan portfolio and deposit growth
80 000
Deposits Loans
70 000 67 089
65 218
60 000
54 479
51 502 51 262
50 000 48 654
45 115 45 644 45 753 46 119
41272
40 000 37 642
36 336
33 155 34 682
31 593
30 000
20 000
10 000
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
Amounts in tsd GEL
Auto loan Installment
Amount in tsd GEL Number of borrowers
Amount in tsd GEL Number of borrowers
4 000
500
3 709
3 603 3 558 3 559 3 572 3 626
450 445
450 3 500 3 356
400
3 000 2 852
360 349
350
302
2 500
300 359 357
271
2 000
250
1 529 1 675
200 1 500 1 469
1 213 1 217 1 273
150 1 118
1 000 990
100
62 500
58 47 48
50 31 33 38 45
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07

14. 14 RETAIL BANKING - MAJOR DIRECTION
Consumer Loan Overdraft
Amount in tsd GEL Number of borrowers
Amount in tsd GEL Number of borrowers
25 000
8 000
7 145
20 354 20 185 21 153 7 000
20 000 19 071 19 725
18 442 18 963 18 666
6 000
5 275
15 000 5 000
4 223 4 307 4 226
4 000 3 736
10 585 10 852 11 393
10 280
10 000 9 205 9 389 9 775 3 195
8 653 3 000 2 971
2 000
5 000 1 460
1 243
1 134 983
1 000 870 804 873 867
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07

15. 15 RETAIL BANKING - MAJOR DIRECTION
Pension Loan Payroll
Amount in tsd GEL Number of borrowers
Amount in tsd GEL Number of borrowers 20 000
120 000 18 207 18 408
18 000
17 166
16 493
100 406 99 943
16 000
100 000 99 360 99 501 15 247
95 202 92 915
14 000
13 866
80 000 12 341
78 315 12 000
72 896
10 150 9 771
10 000
60 000 9 152
7 997 8 185
8 000
40 000 6 000 5 977
4 658 4 972
4 577
4 000
20 000
7 308 8 598 8 847 8 920 9 001 8 844 8 417 2 000
6 443
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07

16. 16 RETAIL BANKING - PRIORITIZED DIRECTION
DIVERSIFICATION OF DEPOSITS
Retail deposits
Amounts in tsd GEL
34,681
Current accounts & demand deposits
48%
52%
Term deposits
37,008
Current accounts & demand deposits Term deposits
Amounts in GEL Amounts in GEL
40 000 40 000
37,007,831
35 000 34,035,066 35 000 34,025,644 34,680,979
33,356,935 33,062,964
32,974,972 32,739,571 32,649,864 32,567,906
30 000 29,760,436 30 000
26,945,088
25 000 25 000 24,718,115
20 000 20 000
18,762,783
15 000 15 000
12,287,152 12,778,263
11,079,882
10,696,825
10 000 10 000
5 000 5 000
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

17. 17 CORPORATE BANKING
Relationship with the corporate clients is one of the main strategic directions of the Bank. From January 2007 till August the number of corporate clients has
significantly increased, which subsequently increased account balances of the corporate clients.
CORPORATE LOANS GUARANTEES
The main portion of corporate loans disbursed by People’s Bank is covered by the From January 2007 including August the JSC People’s Bank has
central branch and the rest by other branches. As a total, according to the end of issued the various tyoes of guarantees to over 80 clients. Up to
August data, the loans issued to the legal entities increased by 155%, compared to date the number of active guarantees exceeds 90, and the guar-
the previous year, which is reflected in the chart below. antee portfolio equals to over GEL 10 000 000.
Corporate Loan Portfolio Dynamics Total guaranteed amounts
Amounts in GEL
35 000 000 7 000 000
32 340 599 6,501,261
30 000 000 29 806 320
6 000 000
28 495 639
27 199 542
25 000 000 5 000 000
20 345 414
20 000 000 19 553 388 20 037 518 4 000 000
17 795 483
15 000 000 3 000 000 2,750,395
10 000 000 2 000 000
5 000 000 1 000 000 848,187
120,000 56,670 58,650 96,500 26,869
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07

18. 18 CORPORATE BANKING
From January 2007 till August the credit transactions performed
by the Corporate Clients has exceeded GEL 227 000 000. Top Ten Corporate Customers:
KazTransGaz
Credit transactions of
corporate customers Telasi
Amounts in GEL
50 000 000 Magti
Georgian Railway
40 000 000 38,586,272
36,573,593
Energo-Pro Georgia
30,212,587
30 000 000
26,216,148
27,145,524 PSP Group
23,939,602 24,676,370
20,595,494
20 000 000 Wissol
10 000 000
GEOCELL
National Agency of Public Registry
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
National Agency of Citizen Registry

19. 19 CORPORATE BANKING
JSC “People’s Bank” provides services for the local municipalities in different regions of Georgia. By August 2007, the number of the local
municipalities, which cooperate with us reached 57 (Regions include: Abasha, Adigeni, Ambrolauri, Aspindza, Akhaltsikhe, Akhalgori, Akhal-
kalaki, Akhmeta, Bagdati, Bolnisi, Tsageri, Chokhatauri, Chkhorotsku, Dedoplistskaro, Dmanisi, Dusheti, Poti, Gardabani, Gurjaani, Kaspi,
Lagodekhi, Lanchkhuti, Lentekhi, Marneuli, Martvili, Mtskheta, Mestia, Ninotsminda, Oni, Kareli, Keda, Kurta, Kutaisi, Rustavi, Sachkhere,
Sagarejo, Senaki, Sighnaghi, Shuakhevi, Telavi, Terjola, Tetri Tskaro, Tianeti, Tighva, Tkibuli, Vani, Tsalenjikha, Tsalka, Kharagauli, Khashuri,
Khobi, Khoni, Khulo, Kazbegi, Kvareli, Zestaponi, Zugdidi), and their common credit transactions have exceeded GEL 209 000 000.
Credit transactions of municipalities
Amounts in GEL
40 000 000
34,333,397
32,850,582
30 000 000
27,927,549
24,787,881 26,785,185 24,290,616
20 000 000 19,168,904 19,220,513
10 000 000
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07
As a whole, from January 2007 till August the credit transactions has exceeded GEL 436 000 000.
he

20. 20 CORPORATE BANKING
PAYROLL PROJECTS
Number of corporate customers participate in Payroll Programs provided by Peoples Bank, which simplifies the payroll procedures for the em-
ployees of the bank’s corporate customers. Apart from this the owners of the payroll plastic cards can use the overdraft facilities and have an
access to the consumer loans. By August 2007 the payroll cards of our bank is being used by over 93 000 people throughout Georgia.
Income by Projects in 2007 Dynamics of plastic cards utilization in 2007
Amounts in GEL 100 000
90,917 93,838
Tbilisi 33,521
Kvemo Kartli 10,135 80 000 79,537
Imereti 9,272 73,799
Adjara 7,518 63,189
68,877
60 000
Shida Kartli 7,517 59,206
52,487
Samegrelo-ZemoSvaneti 6,642
Kakheti 5,626 40 000
Mtskheta-Mtianeti 5,182
Samtskhe Javakheti 4,233
20 000
Racha-Lechkhumi/Kvemo
Svaneti 2,171
Guria 2,021 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07

21. 21 LEADER IN MONEY TRANSFERS
People’s Bank is the leading Bank Express Money Transfer Express Money
in Georgian Market in fast money Systems Commissions: Transfers Systems
transfers – without account open-
ing which is the most flexible, fast Amounts in mln USD
• Unistream
and easy way. In 2007 fast money • Bistraia Pochta
2.17
transfer system increased up to 18 • Anelik
added by “Caspian Money Trans-
• Money Gram
fer” and “Intelexpress” systems.
1.47 • Migom
• Contact
• VTM
2006 2007
• Privat Money
• Inter Xpress
Local Money Transfer System Express Money Transfer Systems • Intel Xpress
Turnover by Received Amounts Turnover by Received Amounts
• Blizko
B
Amounts in mln USD Amounts in mln USD • TMT
T
• Telegiros
35.01 231.9
• Xpress Money
• Kav
Kavkazus
16.75 • Caspian Mon Transfer
Money
147.4
2006 2007 2006 2007

22. 22 LEADER IN PLASTIC CARD BUSINESS
Only People’s Bank provides Card Service throughout Georgia Cards Issued
Principal Member of International Payment System – VISA 900 000
850 000
International 800 000
Visa Issuer 700 000
600 000
Visa Acquirer
600 000
500 000
Own in-house processing center 400 000
60 transaction per second 300 000
200 000
150 ATM-s 100 000
2006 August 2007
350 POS Terminals
850,000 cards issued Card Turnover
550,000 VISA cards
350
300
300
Plastic Card Market Share 250
200
173
150
100
50
Peoples Bank mln. GEL
50%
2006 August 2007
Cards withdrawal via Channel
Point of Sale
ATM
1,12%
27,78%
Other Banks
50%
Bank
71,1%

23. 23 SOCIAL PROJECTS
Distribution of pensions and allowances to the retirees, refugees and internally displaced persons
Services the following social programs:
● The Program on Overcoming the Unemployment
● The Program for providing help to the mothers with many children
● The Program to help socially unprotected groups
The biggest Tender ever announced in the banking system of Georgia won by the People’s Bank in 2006:
Distribution of pensions and social allowances
● Total Amount of 2,2 billion GEL
● Duration 3 Years
Social programs Turnover Turnover by Projects in 2007
Amounts in GEL Amounts in GEL
580 000 000
570 705 884
560 000 000
Pensions 379 182 866
540 000 000 Social Support (Living) 48 612 124
520 000 000
Refugee support 24 924 148
500 000 000
481 165 517
Social Support (Family) 9 900 978
480 000 000
460 000 000
Municipal 9 529 214
440 000 000 One-time refugee support 683 900
420 000 000
2006 Aug - 2007
President’s employment program 69 150
Incomes from Social programs Income Share by Projects in 2007
Amounts in GEL
Amounts in GEL
10 800 000
10 678 509
Pensions 6 066 925
10 600 000
Social Support (Living) 777 793
10 400 000
10 200 000 Refugee support 473 558
10 000 000
Social Support (Family) 158 415
9 800 000
9 600 000
9 670 338 Municipal 152 834
9 400 000 One-time refugee support 11 737
9 200 000
President’s employment program 691
9 000 000
2006 Aug - 2007

24. 24 IT INFRASTRUCTURE
Bank in security policies supports Information Security Management Standard ISO
17999.
Bank has two load balancing server rooms. All operations done centralized based.
Bank uses servers from IBM and HP.
Virtual Private Network (VPN) includes more then 180 points of services with 3500
users working. All accesses to VPN done from the one central point – Head Office.
Network is based on Cisco Systems equipment and uses Triple Data Encryption
Standard for encryption. Physically network uses Fiber Optic connections, WiMax
and GPRS.
Bank has own processing center, connected to VISA. Communication standards
comply VISA defined standards.
Purchase of a new banking software Profit from the Greek company INTRACOM
IT Expenses
2005 2006 As of August 2007
2 000 000
1 906 128
1 835 000
1 800 000
1 600 000
1 400 000
1 200 000
1 200 000
1 000 000
881 810
810 000 820 000
800 000
650 000
600 000 594 933
500 000
400 000
200 000
Hardware Software ATMs Hardware Software ATMs Hardware Software ATMs
Amounts in GEL

25. 25 FIXED ASSETS OVERVIEW
People’s bank owns: On the 17th of January 2007 CB Richard Ellis has inspected the People’s
bank central office building and has made all appropriate enquiries in order
5 Buildings in Tbilisi to advise to Bank as to its opinion of the market values as at the date of
valuation and as defined in the basis of valuation herewith:
69 Buildings in Regions
Value assuming a complete renovation and transformation into a First Class
9 Pavilions office building
38 Armoured Vehicles
To be completed
To be completed
l t d
US$ 31,000,000 by the end of 2007
40 Passenger cars
At the end of 2006 year the building was owned by Real Estate Develop-
ment (RED) which is People’s Bank Daughter Company. In February 2007,
the building became under People’s Bank ownership and was accounted
p p
in its balance with value of 24 mln. GEL.
l
Up to date “People’s Bank” has
d
Net Fixed Assets Types of Net Fixed Assets - August 2007 placed 9 pavilions throughout the
city. All of them offer the same ser-
o
Amounts in tsd GEL
50 000 Amounts in tsd GEL vices and banking products as the
oducts th
45 000
46 528
Buildings 30 573 branches and servic centers do.
ches service
40 000
Intangible Assets 2 586
35 000
Computer equipment 2 539
30 000
25 000
Leasehold improvements 2 422
20 000 Vehicles 902
17 609
15 000 Construction in progress 715
11 116
10 000 Furniture and fixtures 294
7 202
5 000 Land 25
2004 2005 2006 Aug-2007

26. 26 DAUGTHER COMPANIES
People’s Post
People’s Post was founded in October 2005 but it started active operations on Georgian postal market from October 2006. Nowadays, 187
branches of “People’s Post” are spread throughout the whole country. Company’s staff has its own auto park, which is equipped with 28 trucks
and vehicles of special use. “People’s Post” participates in a communications network of “People’s Bank” and with its help provides quick and
trustworthy postal service. Together with the 1.5 million clients of “People’s Bank”,
Already signed Agreement on conducting Money Transfer System Western Union.
“People’s Post” offers to the customer’s wide range of postal and postal-financial services across the country.
Services offered:
Postal Services:
• Letters and postcards
• Parcels
• Courier services
• Commercial correspondence service, provided with pre-paid re
d
sponse; Sales Dynamics
• Provision of mail boxes;
• Establishment of an enclosed post-office;
• Delivery of utility and other bills;
3rd Qtr
• Delivery of goods purchased online;
• Facsimile service.
Financial Services:
2nd Qtr
• Pension delivery, pecuniary aid to disadvantaged citizens and other
t d
social allowances payment;
• Money transfers;
1st Qtr
• Payments of utility and other bills;
• Delivery of banking services “at their doors”;
”
• Delivery of insurance policies or other services “at their doors”.
c “a 10 000 20 000 30 000 40 000 50 000 60 000 70 000

27. 27 DAUGTHER COMPANIES
People’s Insurance
PARTNERSHIP
People’s Insurance is fully licensed, international and Europe- Products for Individual and
an standards oriented Georgian Insurance company.
2005, “People’s Bank” of Georgia bought 100% of stocks and
Corporate Clients
became single shareholder.
Company’s Capital amounts over GEL 2.040.000 – twice up ● Property Insurance
than legislation standards require. ● Cargo Insurance
Company is mostly oriented On Health Care Insurance. Com-
pany’s Heath Care Policy holders are 4,000 People’s bank staff ● Motor Insurance
members and 10,000 individual persons. ● Travel Insurance
PIC’s strategy is focused on sustainable and profitable growth, ● Accident Insurance
on the efficient use of capital and on close and mutually re-
warding relationship with clients. We make business to look ● Third Party Liability Insurance
after every need of our clients. ● Health Insurance
The Products business function actively promotes innovation
s ● Motor Accident Insurance
In
and the development of new, superior products which meet
the increasingly demanding requirements of clients. Company
t ● Credit Life Insura
ance
seeks new target groups and is oriented on promotion of in-
m
surance culture.
Key mandates of this business function include managing th the
PIC Financial Information 2007 (2-nd quarter)
insurance cycle to consistently optimize long-term profit levels,
le
and implementing client-focused claims management stan-
e nt Gross Premium (GEL) 1.073.563
dards in all markets and lines of business.
ROE 12.95%
ROA 9.45%
Loss Ratio 19.81%
Gross Profit Margin 30.67%

28. 28 DAUGTHER COMPANIES
Real Estate Development (RED) Public Investment Management Company (PIMC)
LTD Real Estate Development was founded by JSC People’s Public Investment Management Company (PIMC) is a daughter brokerage
Bank in 2005. company of People’s Bank founded on July 31, 2006.
The bank is single shaereholder and holds 100% of shares. It started its active operations last October after it had obtained general li-
Common Stock of the company totals GEL 89 250. cense from the national commission of securities and become the member of
The main directions: national securities exchange.
In the short period of time PIMC gained a popular image in the financial mar-
● Real estate management
ket of the country.
● Building – reconstruction The company carries out its legal activities on the whole territory of Georgia
through People’s Bank branches.
● Project creation
PIMC offers the customers a wide choice of services in four main directions:
● Renting of commercial spaces ( 500 bus stops)
● Consulting service
● Brokerage service
g
● Assets management
Financial information 2007 ● Investment bankin
banking
PIMC considers the cooperation with leading compa
onsiders companies of the country very
critical. In this case the company is not only guided by commercial interests
cal.
Assets
but also takes state interest into account. The projects to be implemented in
projec ed
1 294 029 the nearest future prove the above. The future proje ects will conside
onsiderably im-
prove the financial market of the country and attract foreign investments.
y reign
Income 1 076 492
Capital 89 250
Profit 135 379
200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000

29. 29 THE BANK’S STANDALONE
Total Assets Gross Loans
Amounts in tsd GEL Amounts in tsd GEL
250 000 900 000
83 602
800 000
214 832
200 000 700 000
600 000
150 000
500 000 49 417
111 743
400 000
100 000 79 365
300 000 28 851
58 475 19 115
200 000
50 000
35 253 10 086
100 000
2003 2004 2005 2006 Aug. 2007 2003 2004 2005 2006 Aug. 2007
Total Liabilities Client’s Deposits
Amounts in tsd GEL Amounts in tsd GEL
2 000 000 180 000
169 724
181 751
1 800 000 160 000
1 600 000
140 000
1 400 000
120 000
1 200 000
100 000
1 000 000 86 513
94 885
80 000
800 000
68 876
60 000
600 000 50 651
51 010
40 000 38 829
400 000
26 445 25 047
200 000 20 000
2003 2004 2005 2006 Aug. 2007 2003 2004 2005 2006 Aug. 2007

30. 30 THE BANK’S STANDALONE
Interest Income Non Interest Income
Amounts in tsd GEL Amounts in tsd GEL
9000 20000
8,499 17,578
8000 18000
7000 16000
14000
6000
12000
5000
10000
4000
8000
3,180 12,895
3000
6000
2000 4000
1000 2000
Aug 2006 Aug 2007 Aug 2006 Aug 2007
Total Income
Amounts in tsd GEL
12000
26,077
10000
16,075
8000
6000
4000
2000
Aug 2006 Aug 2007

31. 31 INTERNATIONAL RELATIONS
● Pilot Project with “Support of Retail Banking Project, Cadastre Project of KFW and
People’s Bank” – financed by People’s Bank (credit facilities to farmers in Adjara re-
gion)
● Partner Bank of SBFIC (Savings Banks Foundation for international Cooperation) –
Technical Assistance financed by KFW and GTZ
● Member of Banking Associating for Central and Eastern Europe BACEE
● Principal Member of international payment system – VISA International
● Swiss Agency for Development and Cooperation – Poverty reduction project for vul-
nerable families
● S.W.I.F.T. – Society for Worldwide Interbank Financial Telecommunication
● TGBR – The Global Banking Resource
anking
● Partnership with American Express – (500 thsd. USD Credit Line for Travelers
e .
Cheques)
● America’s Chamber of Commerce
● Deutsche Bank AG
● Dresdner Bank AG
● DZ Bank AG
● Wincor - Nixdorf – Strategic Partner for providing Banking Equipment
a gic ments
● CHF- Co-financing of agro sector across Georgia
r
● IFC- Corporate governance project
n n
● Conducting Credit Assessment of People’s Bank by FITCH
s sment

32. 32 FUTURE CO-OPERATION
“People’s Bank of Georgia” with its 200 branches (include 9 Pavilions) represent the widest network
in Georgian banking system. By its placement bank’s 36 branches are distributed in regions where
they are the only representatives of a banking system, which is the half of the whole Georgian ter-
ritory. Majority of population every day uses the services of “People’s Bank” and this fact gives the
consideration that bank can strengthen trust between banks and customers.
Beginning from its foundation, main goal of “People’s Bank” is to suggest unique, trustworthy, high
quality and modern banking products to the all levels of population throughout the whole country.
Short – Term Goals:
● Candidate for the second round of CGF (Credit Guarantee Fund) Project - financed by KFW
(SME Support in Georgia)
● Candidate for the second round Agriculture Development Project of the World Bank
● Planning to be a Principal Member of international payment system – MasterCard
Long – Term Goals:
● To build a sound regional financial institution represented in Caucasus Region
ented Reg
Caution Regarding Forward-Looking Statements
This presentation contains statements that constitute “forward-lookin statemen
m nts “forward-looking ments”, including, but not
limited to, statements relating to the implementation of strategic initiatives and othe statements relat-
ini nd other
ing to our business development and financial performance.
n
While these forward looking statements re resent our judgment sand future expectations concern-
ments represent ud ment sa ns
ing the development of our business, a number of risks, uncertainties and other factors could cause
s, aus
actual developments and results to differ materially from our expectations.
ffer