Lion Finance Group (BGEO) investor relations material

Executive summary

• Second quarter profit reached 513.2 million GEL, up 19.4% year-over-year, and half-year profit surpassed 1,026.3 million GEL, a 28.4% increase year-over-year, before one-off items.

• Return on equity stood at 27.2% in Q2 and 27.9% for the half-year, exceeding medium-term targets.

• Strong loan and deposit growth in both Georgia and Armenia, with digital engagement and customer franchise expansion.

• Book value per share rose 25.3% year-over-year to GEL 176.81.

• Ameriabank's profit growth was impacted by one-off ECL charges in 2024 and a gain from bargain purchase.

Financial highlights

• Operating income grew 9.5% year-over-year in Q2; net interest income rose 15.8% in Q2 and 32.5% in H1; net fee and commission income up 12.5% in H1.

• Cost/income ratio was 36.5% for the quarter; basic EPS for 1H25 was GEL 23.70, up 21.5% year-over-year.

• Loan portfolio grew 22.5% year-over-year in constant currency; deposit portfolio up 14.7%.

• Cost of credit risk ratio improved to 0.5% in Q2; NPL ratio declined to 1.9%.

• Total assets grew 18.4% year-over-year to GEL 55.1bn; client deposits and notes up 13.3% to GEL 34.8bn.

Outlook and guidance

• Full-year GDP growth forecast revised upward to 7.5% for Georgia and 5% for Armenia.

• Guidance remains at 15% annual loan book growth, 20%+ ROE, and 30–50% capital distribution.

• Net interest margin expected to remain stable or slightly higher; cost of risk guidance up to 1%, likely below historic averages.

• Quarterly dividend announcements initiated, with GEL 5.10 per share for H1 and GEL 98 million share buyback approved.