Lion Finance Group (BGEO) investor relations material

Executive summary

• Achieved record net income growth of 20.9% year-over-year, nearing $2.2 billion, with return on equity at 28.4% for the year and over 30% in Q4.

• Maintained high profitability and robust growth in both Georgian and Armenian operations, supported by digital engagement and diversified portfolios.

• Ameriabank in Armenia contributed a full year for the first time, delivering substantial growth in both balance sheet and retail coverage.

• Strategic focus on profitable growth, digital transformation, and customer-centricity, with medium-term targets of c.15% annual loan book growth and 20%+ ROAE.

Financial highlights

• Group operating income rose 16.4% in Q4 and 20.8% for the year; net interest income up 19.9% in Q4 and 25.9% for the year.

• Net non-interest income increased 10% in Q4 and 10.8% for the year; net fee and commission income surged 33.8% in Q4 and 17.1% for the year.

• Loan portfolio grew 19.7% in constant currency; deposit portfolio up 17.3% in constant currency year-over-year.

• Cost-income ratio at 35.5% for the year, with cost of risk at 0.4% annually and 0.3% in Q4.

• Group profit before one-offs reached GEL 2,193m (+20.9% y-o-y); adjusted EPS up 24.3% to GEL 14.53.

Outlook and guidance

• Management targets c.15% annual loan book growth, 20%+ ROAE, and 30-50% dividend and share buyback payout ratio in the medium term.

• GEL and AMD expected to remain stable, with continued economic growth in Georgia and Armenia.

• Loan growth guidance: 10%+ in Georgia, 20%+ in Armenia.

• Net fee and commission income growth expected at 15%-20% going forward.

• Cost of risk guidance remains 80-100 bps through the cycle, but expected to stay below due to strong macro conditions.