Lion Finance Group (BGEO) investor relations material

Executive summary

• 3Q26 profit was GEL 661.9m, up 21.0% YoY; 9M26 profit was GEL 1,865.7m, up 18.6%, with ROAE of 27.2% in both periods.

• 3Q26 operating income before cost of risk rose 25.4% YoY to GEL 880.6m, supported by customer growth and balance-sheet expansion.

• At 30 September, loans were GEL 46,501.2m (+24.6% YoY in constant currency) and client deposits and notes were GEL 44,889.5m (+21.1%).

Financial highlights

• 3Q26 net operating income increased 19.6% YoY to GEL 1,294.6m; 9M26 rose 18.1% to GEL 3,661.0m.

• 3Q26 net interest income was GEL 941.7m, up 19.4% YoY; net fee and commission income was GEL 203.5m, up 39.9%.

• Operating expenses rose 9.0% YoY to GEL 414.9m in 3Q26 and 11.8% to GEL 1,231.0m in 9M26; cost-to-income was 32.1%, versus 35.2% a year earlier.

• Basic EPS was GEL 15.57 in 3Q26, up 22.1% YoY; 9M26 basic EPS was GEL 43.81, up 20.2%.

Outlook and guidance

• FY26 real GDP growth forecasts are 7.5% for Georgia and 5.5% for Armenia; medium-term targets include ~15% annual loan-book growth, 20%+ ROAE and a 30–50% payout ratio.

• In a more stable macro environment, medium-term loan growth is expected at ~10% in Georgia and ~20% in Armenia, blending to close to 15%.

• Management targets neutral-to-positive operating leverage; below-35% cost-to-income is considered healthy, with no specific endpoint guidance.

• Elevated inflation and interest rates may persist; AFS retail cost of risk exceeded its normalized 1.2–1.4% range during rapid growth, with a return toward that range expected.