2015 ANNUALREPORT

Mexico

Guatemala

El Salvador

Nicaragua

Ecuador

Haiti

Honduras

Nigeria

Uganda

Democratic Republicof the Congo

Tanzania

Zambia

Malawi

Jordan

Kosovo GeorgiaAzerbaijan

Armenia Afghanistan

Pakistan

Tajikistan

Kyrgyzstan

Russia

FINCA Global Network

MISSIONFINCA’s mission is to alleviate poverty through lasting solutions that help people build assets, create jobs and raise their standard of living.

VISIONFINCA’s vision is to build a global network of sustainable and scalable social enterprises that improve lives worldwide.

FINCA GLOBAL NETWORK

JSC FINCA Bank Georgia 2015 Annual Report

Letter From the FINCA Bank Georgia CEO

Letter from the Chairman and the President, FINCA International

FINCA Bank Georgia - General Information

Mapping Out FINCA

FINCA Bank Georgia - Products and Services

FINCA Bank Georgia Makes Difference

Personal Banking Business Line

Corporate Social Responsibility Projects

Financial Literacy Activities

Key Financial Indicators for FINCA’s Microfinance Network

Financial Performance of FINCA Bank Georgia

FINCA International Leadership - Directors and Management

FINCA Bank Georgia - Leadership

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Letter From the FINCA Bank Georgia CEO

Vusal VerdiyevCEO, FINCA Bank Georgia

Dear friends and colleagues,

2015 was an important and challenging year. The banking transformation process actively continued and a lot of changes have been made: all the goals were achieved, a number of critical banking systems have been implemented and important corporate governance changes have been completed, which signifi-cantly increased the effectiveness of the institution and doubled the number of clients and employees.

Overall, the number of borrowers and the portfolio continued its trend of growth and we concluded the fiscal year of 2015 with the total portfolio outstanding in 72,847,469 USD and the total number of borrow-ers surpassed 54 000. One of the most important milestones of 2015 was launching of the personal bank-ing service line. The first personal banking Service Center opened its doors for customers in the center of Tbilisi, on Chavchavadze Avenue, to offer personal banking services to existing and new customers.

As a relatively new bank in the very competitive banking sector in Georgia, we are maintaining our vision. FINCA Bank Georgia has a clear focus niche, delivering financial services to micro, small and medium-sized businesses, and we now have the ability to offer a wider variety of products. We are inspired by the achievements of our clients – to see that our services play significant role in development of people’s lives and communities, this is what keeps us motivated and inspired.

One of the main components of our success is inspired, professional staff, who share institutional values and demonstrate strong commitment. I strongly believe that the most sustainable investment is to invest in people, so that capacity building efforts are intensified to make sure that FINCA Bank Georgia em-ployees are well prepared and have full accessibility to the resources they need to successfully serve the clients.

2016 will be challenging and exciting. We will continue to provide new products to more clients, therefore increase outreach and plan to focus more on promotion of financial literacy in the country so that people we partner with start to make more informed decisions.

It is apparent that if we do not focus on the needs of our clients or society, we cannot build a sustainable growth pattern. After all, we are here for one vision – creating brighter future for all our stakeholders.

“In 2015, total number of clients served significantly increased and reached 80 000 families, FINCA Bank Georgia enlarged its geographical outreach with opening of two service centers, to ensure that we are closer to our clients to offer full variety of banking products.”

FINCA BANK GEORGIA 2015 ANNUAL REPORT1 2

The Way Forward: Letter from the Chairman and the President

Dear Supporters,

FINCA’s journey began with a simple idea: if everyone could be included in the economy, with

the opportunity to build a business, earn a living wage and have access to the resources needed

to be productive, lives would improve and communities would become more resilient.

The Road to Inclusion

Robert W. Hatch, Chairman

Rupert W. Sco�eld, President

June 30, 2016

Robert W. Hatch Chairman

2015 at a Glance

President

(As of December 31, 2015)

1,837,391 $168.3 million $1.3 billionTOTAL CLIENTS TOTAL SAVINGS DEPOSITED TOTAL LOANS DISBURSED

FINCA BANK GEORGIA 2015 ANNUAL REPORT3 4

This premise has guided us for more than 30 years.FINCA clients once met in Village Bank groups under trees in Mexico. Further down the road, we oered savings accounts in the mountains of Kyrgyzstan. As new tech-nology arrived, we developed agent banking in the Democratic Republic of the Congo, expanded mobile banking in Tanzania and oered remittances across Armenia. More recently, with the help of our generous supporters, we are addressing health and energy needs in Uganda, through FINCA+.

In 2015, demand for FINCA’s services remained strong. Micronance is still needed by nearly 2 billion people who struggle to fully participate in their economies. They cannot start or grow a business without aordable capital. People also need access to reliable goods and services, such as energy-ecient cookstoves and solar lighting. These products can save people time and money, and reduce health risks, if they are available, trust-ed and made aordable through nancing.

In 2015 we also saw the continuing rise of FinTech-technology that opens up new channels for delivering nancial services, including consumer nance. Emerging markets have been profoundly aected by the massive increase in the use of mobile phones by people earning just a few dollars a day. This technology is making nance more accessible, quicker and more scalable. At FINCA, we moved swiftly during the year to use new technology to reach more people with essential, responsible nancial services at a lower cost, while ensuring privacy and protecting families. We are energized and excited about the possibilities.

FINCA is wholeheartedly embracing change and innovation. At the same time, FINCA’s micronance net-work has been deeply aected by a combination of external factors, principally the economic crisis in Eurasia following massive currency devaluations and a dramatic fall in the price of oil. In Africa, a steep decline in commodity prices caused similar devaluations of those currencies, adversely aecting our clients’ businesses and their ability to repay loans. This impacted our nancial performance and prevented us from reaching as many people as we had planned. It’s in these tough times that we count on supporters like you, more than

ever, so that we may continue to build a better tomorrow for as many families and communities as possible.

The many challenges of poverty are interconnected. At FINCA, we

have always known this and we also know the risks and social re-

wards of working in the world’s most challenging environments.

In the year ahead, we’ll continue to support communities with

nancial services that help people achieve self-reliance. We are also

launching a new eort to support promising social enterprises that

broaden our eort to address non-nancial needs, such as clean wa-

ter, reliable energy and sanitation.

We do this because we know that FINCA’s mission is as important

today as it was the day we issued our rst loan in Las Candelarias, El

Salvador, in 1985. We have a team that is 12,000 strong: dedicated,

local people who know what needs to be done. On behalf of them

and our nearly 2 million clients, we thank you for continuing on

this journey.

FINCA Bank Georgia is a Joint Stock Company built on the platform developed for 17 years of operations in

the country. Being a part of global network of financial institutions indirectly owned by FINCA Microfinance

Holdings (FMH), a group comprised of shareholders such as FINCA International, USA, International Financial

Corporation (IFC, World Bank Group) - USA, KfW Bankengruppe, the German development bank, FMO, the

Netherlands development bank, responsAbility Global Microfinance Fund, an investment fund advised by

the Zurich-based asset manager responsAbility Social Investments AG, and Triple Jump, a Netherlands-based

microfinance investment manager – FINCA Bank Georgia, a new member of Georgian commercial banking

sector, is a well-capitalized institution, with strong corporate governance, and expertise in financial services

management. It has leading position in the field of micro financing.

JSC FINCA Bank Georgia identifies, pilots, and partners with other service providers to bring new life-enhance-

ment services to clients, and funds cutting-edge research to track the benefits to clients allowing the bank

to better serve them and maintain a leading position in Georgian microfinance sector. FINCA Bank Georgia is

committed to ensure this through its commercial principles of performance and sustainability.

FINCA is grateful to all the corporate, foundation, bilateral, and multilateral partners who support our work on

long-range and large-scale initiatives. Our partners lend significant financial support, as well as technology

and know-how to enter new markets, deliver new products and services, and improve the efficiency and

effectiveness of our operations.

FINCA partners with numerous public-sector partners whose support has helped advance FINCA’s mission

worldwide. These agencies and government-funded bilateral and multi-lateral development organizations

have enabled FINCA to expand into new regions and new countries, create new products, improve service

delivery through technological innovations, develop non-develop non-financial services for clients and have

helped subsidiaries transform into regulated financial institutions.

FINCA Partners – United States Department of Agriculture (USDA), United States Agency for International

Development (USAID), Inter-American Development Bank (IADB), International Finance Corporations (IFC)

which is also one on the investors of FMH, United Nations Capital Development Fund (UNCDF).

FINCA Bank Georgia

General Information

6FINCA BANK GEORGIA 2015 ANNUAL REPORT5

FINCA Partners

1998FINCA Georgia - an affiliate of FINCA International Inc., a network of microfinance institutions based in Washington, D.C., with affiliates operating in 23 countries around the world - was established in Georgia. First loans were disbursed in Tbilisi in July 1998.

2011

FINCA launches FINCA Microfinance Holding Company LLC, the first-of-its-kind socially responsible investment partnership for microfinance and since 2011 JSC FINCA Georgia became as a subsidiary company of FINCA Microfinance Cooperatief U.A., with such shareholders on board, as FINCA International, USA, International Financial Corporation (IFC, World Bank Group)- USA, KfWBankengruppe, the German development bank, FMO, the Netherlands development bank, responsAbility Global Microfinance Fund, an investment fund advised by the Zurich-based asset manager responsAbility Social Investments AG, and Triple Jump, a Netherlands-based microfinance investment manager.

2013 In August 2013, FINCA Georgia received a banking license.

2014 FINCA Bank Georgia Surpassed 50 000 Borrowers Milestone.

FINCA Bank Georgia Loanched Personal Banking Business Line.

2015In February 2015, FINCA Bank Georgia started to offer retail deposit products - Savings Accounts and Term Deposits.

FINCA Bank Georgia issued bonds worth 20 mln. GEL with a 3-year tenor.

FINCA In Georgia Fact Sheet

In 2015, FINCA...

FINCA is dedicated to expanding financial inclusion, strengthening local communities and creating

opportunities for the women, men and families who remain excluded from the benefits of global

economic growth. In 2015, we served directly nearly 2 million people in 23 countries.

Embraced the UN Sustainable Development Goals: FINCA committed to support the UN Sustainable Development Goals, particularly on poverty, clean energy and water, work and economic growth and gender inequality.

Committed to clean energy: In October, FINCA joined the White House Forum for O�-Grid Clean Energy Markets and committed to o�ering a�ordable solar energy products to 300,000 households by 2019.

Supported a greener planet: FINCA Nicaragua began o�ering “green loans” to help clients acquire solar panels for light and power.

Lowered the barriers to moving money: FINCA Haiti launched money transfer services across all eight branches. Had a 1st birthday: Our newest

subsidiary in Nigeria celebrated its one-year anniversary. In 2015, we reached 13,000 clients in Africa’s most populous country.

Expanded our reach through agents: Our agent network in the Democratic Republic of the Congo allows clients to bank with local FINCA Xpress merchants, making it more convenient to transact.

Mapping Out FINCA

FINCA in AfricaDemocratic Republic of the CongoMalawiNigeriaTanzaniaUgandaZambia

FINCA in EurasiaArmeniaAzerbaijanGeorgiaKosovoKyrgyzstanRussiaTajikistan

FINCA in Latin America and CaribbeanEcuadorEl SalvadorGuatemalaHaiti

HondurasMexicoNicaragua

FINCA in Middle East and South Asia

AfghanistanJordanPakistan

Brightened lives: FINCA’s young social enterprise in Uganda, BrightLife, made solar lanterns available and a�ordable to more than 7,000 families.

accounts: FINCA Pakistan had the largest savings portfolio in the network in 2015—almost $58 million and more than 380,000 savers.

Increased our services as licensed banks: FINCA Malawi and Kyrgyzstan received bank licenses to accept deposits, giving clients access to savings accounts and other needed services.

FINCA Azerbaijan received Smart Certi�cation, which is the industry standard for responsible services.

Reached people through mobile: FINCA Tanzania continued to expand mobile banking, which accounted for 24% of transactions in 2015.

Supported agricultural growth: In our Eurasian subsidiaries, rural and agricultural lending accounted for over 40% of borrowers.

9FINCA BANK GEORGIA 2015 ANNUAL REPORT7 8

10FINCA BANK GEORGIA 2015 ANNUAL REPORT9

FINCA Bank GeorgiaProducts and Services

MICRO LOANSLOAN AMOUNT UP TO

1500 GEL Loan period up to 18 months

LOAN FOR SMALL AND MEDIUM ENTREPRENEURS

LOAN AMOUNT UP TO

60 000 GEL Loan period up to 60 months

RURAL LOANSLOAN AMOUNT UP TO

60 000 GEL loan period up to 60 months

REMITTANCESMONEYGRAM

200 Countries All Over the WorldCURRENCY:

USD, EUR

What We Offer

FINCA Bank GeorgiaMakes Difference

FINCA BANK GEORGIA IS IMPROVING ACCESS TO FINANCIAL SERVICES.

Sixty percent of the population in Georgia are financially excluded. FINCA provides not only bank accounts

but a full range of convenient, affordable and sustainable financial services that are tailored to people’s

needs – from small loans to savings and money transfers. FINCA provides not only bank accounts but a

range of convenient affordable and sustainable financial services that are tailored to people’s needs – loans.

FINCA IS MAKING A DIFFERENCEE:• Brings a local, trusted banking partner to communities around Georgia

• Reaches underserved people in urban and rural areas

• Provides opportunities for micro-entrepreneurs to improve their lives and their communities

• 79 % of total clients are from rural areas, who are potentially having limited access to financial services

or to convenient financial services.

• Over 80,000 people earn their livelihoods in the businesses that FINCA Bank Georgia finances, and 76%

of this figure is a direct result of the loans that FINCA Bank Georgia is providing.

DEPOSITSCURRENCY:

GEL, USD, EUR Maturity: unlimited Interest rate: high

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FINCA Bank GeorgiaLaunches Personal Banking Business Line

As a driving force for financial

inclusion in the country, FINCA

Bank Georgia, JSC has over 17

years of experience in the coun-

try and has contributed to the

development of small businesses

and improvement of many lives.

FINCA Bank Georgia encourages

development of savings culture,

as savings contribute to the cre-

ation of a stable social and eco-

nomic environment for future

generations.

FINCA BANK GEORGIA 2015 ANNUAL REPORT11

FINCA Bank Georgia launched the personal banking service line and on October 28, 2015 the personal

banking service center was officially opened in Tbilisi, on Chavchavadze Avenue. The clients of FINCA Bank

Georgia new personal banking line will have access to a personal financial advisors and will join their more

than 80,000 fellow citizens who access financial services throughout the country.

At the official opening ceremony in Tbilisi, Vusal Verdiyev, FINCA Bank Georgia’s CEO said: “The opening of

the personal banking branch represents an important step for FINCA Bank Georgia as it sustains and ex-

pands the services we provide for our clients while staying true to the FINCA mission. The deposits we offer

are used for financing micro and small enterprises, helping small entrepreneurs to increase incomes and

create jobs.”

FINCA BANK GEORGIA 2015 ANNUAL REPORT13 1515

Corporate Social Responsibility Projects

Activities to Increase Public Awareness on Importance of Financial Literacy

FINCA BANK SUPPORTED JUNIOR RUGBY TEAM “KAKHETI”

FINCA Bank Georgia supports junior rugby players in Pankisi and within the framework of partnership spon-

sored junior rugby players festival organized in Telavi Central Stadium. Support of this kind is very important

for remote areas of the country to ensure sports inclusion of the kids and foster creation of self-development

environment in remote areas of the Georgia.

FINCA BANK GEORGIA AT WORLD SAVINGS DAY

CELEBRATION

This year the scope of the celebration was broader

than before and FINCA Bank, a new member of the

banking sector, was active participant of the entire

celebration. FINCA Bank Georgia 40 service center

representatives in 35 cities celebrated event dedi-

cated to implementation and further development

of the savings culture.

Facebook contest for children under 13 was orga-

nized. FINCA Bank Georgia awarded 2 winners of the

contest with a 200 GEL deposits communicating

the message of “start to save for the brighter future”.

On October, 19th, gala award ceremo-

ny was held at Tbilisi city municipality

“Queen Tamar’s” hall.

FINCA Bank Georgia sent a special

message to contest participants by

awarding 5 nominees for “The Best Es-

say” category, with 500 GEL deposits

each, encouraging them to save for a

brighter future.

FINCA BANK GEORGIA JOINED RECOVERY ACTIVITIES AFTER NATURAL DISASTER IN TBILISI

FINCA Bank Georgia team together with volunteers and rescue

team members participated in clean-up activities at Mziuri Park,

Tbilisi. FINCA Bank Georgia provided hundreds of volunteers with

food and water. Residents of the Georgian capital came out on June

15 to begin clean-up efforts after severe flood swept through the

capital of Georgia, Tbilisi.

FINCA BANK GEORGIA SPONSORED ART AND LITERATURE CONTEST

“TBILISI 2015”

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At the conference, held at National Bank Cash Set-

tlement, FINCA Bank Georgia CEO Vusal Verdiyev

congratulated winners and spoke about the impor-

tance of the savings culture. “It is very important that

the message of Savings Week Campaign: “Wish, Save

and Make your dreams come true” was embodied

in all activities fostering formation of savings habits

in youth who deserve brighter futures,”- said Vusal

Verdiyev.

FINCA BANK GEORGIA 2015 ANNUAL REPORT

Financial Performance of FINCA Bank Georgia

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DATA

Client Number

Loans disbursed in the period

2011

18,202

16,872

35,074

$ 11,857,677

$ 26,871,038

$ 38,728,715

$ 18,785,155

$ 39,773,316

$ 58,558,471

2012

10,949

30,903

41,852

$ 5,971,482

$ 43,487,880

$ 49,459,362

$ 10,384,378

$ 63,094,522

$ 73,478,900

2013

2,642

45,981

48,623

$ 1,530,550

$ 62,511,443

$ 64,041,993

$ 2,497,489

$ 90,632,137

$ 93,129,627

2014

492

53,192

53,684

$ 317,785

$ 71,219,150

$ 71,536,935

$ 441,216

$ 97,800,877

$ 98,242,093

2015

74

54,581

54,655

$ 28,125

$ 72,819,344

$ 72,847,469

-

$ 95,794,955

$ 95,794,955

Group Loans

Individual Loans

Total

Group Loans

Individual Loans

Total

Group Loans

Individual Loans

Total

Audited Financial Statements

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Key Financial Indicatorsfor FINCA’s Microfinance Network

2013 2014 2015

Total Borrowers* 1,146,000 1,203,000 1, 166,000

Year-End Gross Portfolio $840,600,000 $966,900,000 $818,850,000

Total Amount Disbursed $1,464,727,000 $1,605,900,000 $1,282,989,000

Portfolio at Risk >30 days** 1.5% 1.9% 3.5%

Total Savers* 767,000 1,039,000 1,140,000

Total Deposits from Clients $78,400,000 $130,200,000 $168,300,000

Three-Year Summary

18FINCA BANK GEORGIA 2015 ANNUAL REPORT17

Our Leadership:Directors, Advisors and Management*

FINCA Bank GeorgiaLeadership

FINCA International

Board of DirectorsRobert W. Hatch (Chairman, Founding Member)

John K. Hatch (Founding Member)

Rupert W. Scofield

(Founding Member)

Richard M. Williamson

(Founding Member)

John Elkins

Amanda Ellis

Peter Epp

Harold D. Jastram

Agrina Mussa

James Semakadde

Dr. Fred Seymour

David E. Weisman

Her Majesty Queen Rania Al-Abdullah of Jordan Director Emeritus

JoAnn Field

Director Emeritus

Advisory Board

Margaret S. Blakey

Angéline Fournier

Robert Graham

Hon. Cheryl Halpern

John K. Hatch Jr.

Kristin G. Hatch

FINCA Microfinance Holding Company LLC

Board of DirectorsRobert W. Hatch (Chairman)

Michael Barth

Monish Dutt

Johannes Feist

Shawn Hassel

Rupert W. Scofield

David E. Weisman

Richard M. Williamson

FINCA Canada

FINCA Canada is a charity registered with Canada Revenue Agency (Registration No. 805686144RR0001).

Board of DirectorsRupert W. Scofield

Soledad Gompf

Jacquie Green

Michael Green

Linda Wolfond

Advisory Board Karen Basian

Debbie Gamble

FINCA United Kingdom

FINCA UK is the working name of The Foundation for International Community Assistance (UK), a company limited by guarantee under company number 06717649. FINCA UK is a registered charity in England and Wales under registration number 1127778.

Board of DirectorsRupert W. Scofield (Chairman)

Dane Steven McGuire Federico

Pirzio-Biroli Damien Tanner

Mahdi Yahya

Advisory Board Jennifer Harris

Christine Renier

Christina Tessaro

Supervisory Board

Jeff Flowers(Supervisory Board Chairman)

Dane Steven Mcguire (Supervisory Board Deputy Chairman)

Keith Gary Sandbloom (Supervisory Board Member)

FINCA BANK GEORGIA 2015 ANNUAL REPORT19

Aleen Keshishian

Chuck Loveless

Rebecca Minkoff

Rosalie Swedlin

Colston Young

Senior Management

Rupert W. Scofield, President of FINCA International, Co-CEO of FINCA Microfinance Holding Company

Andrée Simon, Co-CEO, FINCA Microfinance Holding Company

Allison Scuriatti, Executive Director, FINCA International

Roman Hingorani, Chief Financial Officer

P. Daniel Smith, Vice President and General Counsel

Soledad Gompf, Vice President, New Business Development

Jeff Flowers, Vice President and Regional Director for Eurasia

Mike Gama-Lobo, Vice President and Regional Director for Africa

Chikako Kuno, Director, Transformation, Equity, Mergers and Acquisitions

Dennis Millsaps, Vice President and Chief Technology Officer

Volker Renner, Vice President for Credit and Savings

Franca Rofe, Vice President, Human Resources

Keith Sandbloom, Vice President and Regional Director for Latin America and the Caribbean

Zarlasht Wardak, Vice President and Regional Director for the Middle East and South Asia

Jeffrey Smith, Vice President, Global Chief Auditor and Chief Risk and Compliance Officer

*As of June 30, 2016

Management TeamVusal Verdiyev (Chief Executive Officer)

Giorgi Mirotadze (Chief Financial Officer)

Ketevan Burduli (Chief Operating Officer)

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Mission

To alleviate poverty through lasting

solutions that help people build assets,

create jobs and raise their standard of

living.

Vision

To build a global network of sustainable

and scalable social enterprises that improve

lives worldwide.

www.finca.ge www.facebook.com/FINCABank.ge *4949