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, driven by strong performance in Georgia and Armenia and Ameriabank consolidation.

• Maintained high profitability with ROAE at 28.7% and cost to income ratio at 35.0%.

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

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

• Focused on digital transformation, customer engagement, and ESG standards, with record-high Net Promoter Scores: Bank of Georgia at 73, Ameriabank at 77.

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, mainly due to Ameriabank integration and executive costs.

• Loan portfolio grew 23.2% year-over-year to GEL 34.1bn; client deposits and notes up 19.9% to GEL 34.0bn.

• Basic EPS (adjusted) at 11.81, up 41.6% year-over-year.

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.

• Georgian GDP growth forecast revised up to 6.8% for 2025; Armenia projected at 4.5%.

• Management expects continued robust performance in both core markets, supported by favorable macroeconomic conditions.