Lion Finance Group (LSE:BGEO), the London-listed owner of Bank of Georgia and Armenia's Ameriabank, reported second-quarter profit of GEL 618.8 million, up 20.6% year-on-year.
First-half profit reached GEL 1,203.8 million, a 17.3% increase, with return on average equity of 27.2%.
The board declared a second-quarter dividend of GEL 3.05 per share, taking the first-half payout to GEL 5.90 per share, up 15.7% year-on-year, alongside a further GEL 59.0 million share buyback and cancellation programme.
The group's loan book reached GEL 44,429.0 million at the end of June, up 23.0% year-on-year in constant currency, well ahead of management's medium-term target of roughly 15% annual growth.
Georgian Financial Services loans grew 17.1% year-on-year, while Armenian Financial Services loans surged 36.8%, both in constant currency.
"In Armenia, we are growing well ahead of both the market and our own guidance, with the loan book up 36.8% year-on-year in constant currency", said chief executive Archil Gachechiladze.
Bank of Georgia's daily active digital users surpassed 1 million for the first time, up 20.0% year-on-year, while Ameriabank's retail digital monthly active users jumped 47.0% to 392,100.
Group net interest margin reached 6.3% in both the quarter and the half, up 20 and 30 basis points respectively, driven by a 40 basis point widening at Georgian Financial Services to 6.4%.
Asset quality held steady, with the non-performing loan ratio at 2.1% as of 30 June, against 1.9% a year earlier, and the cost of credit risk at 0.5% for the half.
Operating expenses rose 13.2% year-on-year to GEL 816.1 million, driven mainly by higher staff and administrative costs at Georgian Financial Services.
Management raised its full-year Georgian GDP growth forecast to 7.5% from 7.0%, while trimming its Armenian forecast to 5.5% from 6.0% following a softer first quarter and Russian import restrictions on select agricultural exports.
News Intelligence what this means for the company
Lion Finance Group posted first-half profit of GEL 1,203.8 million, up 17.3% year-on-year, with loan growth of 23.0% in constant currency—well ahead of its ~15% medium-term target. Armenia's loan book surged 36.8%, while Georgia grew 17.1%, both outpacing management guidance, and the group raised its full-year Georgian GDP forecast to 7.5% from 7.0%, signalling confidence in its largest market despite trimming Armenia's outlook to 5.5%.
Accelerating loan growth, a 27.2% return on average equity, and a 15.7% year-on-year dividend increase reinforce Lion's earnings momentum and capital return discipline. The 36.8% Armenian loan growth and 1 million daily active digital users at Bank of Georgia suggest both geographic diversification and digital adoption are driving scale, though the non-performing loan ratio ticked up to 2.1% from 1.9% year-on-year—a modest widening that warrants monitoring as growth accelerates.
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