Lion Finance Group (BGEO) Q1 2025 earnings summary

Executive summary

• Achieved consolidated profit of GEL 513.1m in 1Q25, up 39.0% year-over-year, with ROAE at 28.7% and cost to income ratio at 35.0%.

• Loan book expanded 23.2% year-over-year, with strong growth in both Georgia and Armenia, and Ameriabank consolidation significantly enhancing income growth.

• Digital transformation advanced, with Bank of Georgia's digital MAU up 17.1% and Ameriabank's up 53.1% year-over-year.

• Recognized for digital excellence and high customer engagement, including record Net Promoter Scores.

• Total assets reached GEL 53.8bn, up 26.7% year-over-year; book value per share rose 25.8% to GEL 170.99.

Financial highlights

• Operating income rose 52.0% year-over-year to GEL 1,032m, mainly due to Ameriabank consolidation; net interest income up 56.2% to GEL 684m.

• Net fee and commission income increased 28.1% year-over-year; net foreign currency gain up 60.8%.

• Operating expenses grew 82.4% year-over-year, reflecting Ameriabank integration and executive costs.

• Net interest margin stable at 5.9%; cost of credit risk ratio at 0.2%; NPLs to gross loans at 2.0%.

• Client deposits and notes grew 19.9% year-over-year to GEL 34.0bn.

Outlook and guidance

• Medium-term targets: ~15% annual loan book growth, ROAE above 20%, and 30-50% annual capital distribution ratio.

• GEL and AMD expected to remain stable, supported by strong fundamentals and positive growth outlook.

• Cost of risk expected to remain below 1% as long as macro conditions remain favorable.

• Deposit growth to slow to maintain market share below 40% in Georgia.

• Dividend payout ratio to remain around 30%, with two-thirds in cash and one-third in buybacks.