Lion Finance Group (BGEO) Q3 2024 earnings summary

Executive summary

• Achieved record 3Q24 consolidated profit of GEL 509.3m, up 42.5% year-over-year, with ROE at 32.1%, driven by Ameriabank integration and strong core business performance.

• Digital leadership recognized by World's Best Digital Bank 2024 award, with digital retail MAU up over 20% year-over-year.

• Strong performance in both Georgian and Armenian divisions, supported by robust macroeconomic fundamentals and low cost of risk.

• Ameriabank integration contributed to significant loan and deposit growth.

Financial highlights

• Operating income in 3Q24 was GEL 937.7m, up 45.9% year-over-year; net interest income up 52.6% to GEL 641.0m.

• Loan portfolio grew 63.4% year-over-year; deposit portfolio up 46.6% year-over-year to GEL 31,872.4m.

• Cost to income ratio at 34.8% in 3Q24; cost of credit risk at 0.2%.

• NPLs to gross loans improved to 1.8% with coverage at 71.4%.

• Basic EPS for 3Q24 was 11.71, up 44.2% year-over-year.

Outlook and guidance

• Maintains real GDP growth forecasts for Georgia at 9% for 2024 and 6% for 2025, supported by strong domestic demand and resilient external inflows.

• Medium-term targets: c.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 FX inflows and prudent macro management.

• Dividend payout ratio to remain within 30%-50% guidance, likely at the lower end due to Ameriabank's reinvestment focus.