Lion Finance Group (BGEO) Q2 2026 earnings summary

Executive summary

• Delivered strong 2Q26 and 1H26 results, with consolidated profit reaching GEL 618.8m for 2Q26 (+20.6% y-o-y) and GEL 1,204m for 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 ROAE at 27.2% for 1H26.

• Book value per share grew 24.8% y-o-y to GEL 220.69; retail digital MAU in Georgia up 13.3% y-o-y to 1.92m, Armenia up 47% to over 500,000.

• Quarterly dividend of GEL 3.05 per share declared for 2Q26 (+15.7% y-o-y); GEL 59m share buyback and cancellation programme approved.

• Continued focus on profitable growth, customer experience, and disciplined capital allocation.

Financial highlights

• Group profit for 2Q26 reached GEL 619m (+20.6% y-o-y); 1H26 profit was GEL 1,204m (+17.3% y-o-y); 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.

• Basic EPS for 1H26 was 28.24 (+19.2% y-o-y); book value per share at GEL 220.69 (+24.8% y-o-y).

Outlook and guidance

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

• Expect continued strong loan and deposit growth, supported by digital innovation and macroeconomic resilience.

• Margins expected to remain broadly stable; medium-term targets: c.15% annual loan book growth, 20%+ ROAE, and 30–50% payout ratio.

• Dividend and share buyback payout ratio targeted at 30–50%.

• Board approved interim dividend of GEL 3.05 per share and extension of share buyback programme.