Lion Finance Group (BGEO) Q2 2026 earnings summary

Executive summary

• Delivered strong 2Q26 and 1H26 results, with consolidated profit reaching GEL 619m in 2Q26 (+20.6% y-o-y) and GEL 1,204m in 1H26 (+17.3% y-o-y), driven by robust customer franchise growth and high digital engagement in Georgia and Armenia.

• Maintained leading market positions in both countries, with high profitability, expanding digital ecosystems, and a focus on customer experience.

• Book value per share grew 24.8% y-o-y to GEL 220.69.

• Quarterly dividend of GEL 3.05 per share declared for 2Q26, bringing 1H26 dividend to GEL 5.90 per share (+15.7% y-o-y); GEL 59.0m share buyback and cancellation programme approved.

Financial highlights

• Net operating income before cost of risk rose 19.6% y-o-y to GEL 1,551.4m in 1H26; net interest income for 1H26 was GEL 1,708.8m (+20.2% y-o-y); net fee and commission income GEL 382.5m (+26.6% y-o-y).

• Net loans rose 23.0% y-o-y in constant currency to GEL 44.4bn; client deposits up 26.8% y-o-y in cc to GEL 43.7bn.

• Cost to income ratio improved to 34.4% in 1H26.

• Cost of credit risk ratio at 0.6% in 2Q26; NPLs to gross loans: 2.1% in 2Q26; NPL coverage ratio: 58.4%.

• ROAE stood at 27.2% in 1H26; ROAA at 3.9% in 2Q26.

Outlook and guidance

• Full-year 2026 real GDP growth forecast revised upward to 7.5% for Georgia and 5.5% for Armenia.

• Medium-term targets: c.15% annual loan book growth, 20%+ ROAE, and 30-50% payout ratio.

• Expectation of continued strong loan and deposit growth, supported by digital innovation and macroeconomic resilience in Georgia and Armenia.

• Margins anticipated to remain broadly stable in both Georgia and Armenia.

• No significant impact expected from recent geopolitical developments in Armenia; macroeconomic outlook remains positive.