Lion Finance Group (BGEO) Q2 2025 earnings summary

Executive summary

• Q2 2025 profit reached GEL 513.2 million, up 19.4% year-over-year; H1 2025 profit was GEL 1,026.3 million, up 28.4% year-over-year, driven by robust loan growth and stable net interest margins.

• Return on equity was 27.2% in Q2 and 27.9% for H1 2025, exceeding medium-term targets.

• Strong portfolio and customer growth in Georgia and Armenia, with digital transformation driving user engagement.

• Both Georgian and Armenian operations contributed, with Ameriabank showing exceptional profit growth due to one-off ECL charges in 2024.

• Macroeconomic conditions in both countries remain favorable, supporting business expansion.

Financial highlights

• Operating income for Q2 2025 was GEL 1,039.1 million, up 9.5% year-over-year; net interest income for H1 2025 was GEL 1,399.5 million, up 32.5% year-over-year.

• Net interest margin increased to 6.0% in Q2 2025; cost/income ratio for the quarter was 36.5%.

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

• NPL ratio at 1.9%, indicating strong asset quality; NPL coverage at 63.5%.

• Basic EPS for H1 2025 was GEL 23.70, up 21.5% year-over-year.

Outlook and guidance

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

• Guidance maintained: 15% annual loan book growth, 20%+ ROE, 30%-50% capital distribution.

• Net interest margin expected to remain stable or slightly higher; cost of risk guidance to remain below 1% in the near term.

• Quarterly dividend announcements initiated; GEL 5.10 per share for H1 2025; share buyback of GEL 98 million approved.