Lion Finance Group (BGEO) Q4 2024 earnings summary

Executive summary

• Achieved record adjusted profit of GEL 1.8 billion for FY24, up 31.9% year-over-year, driven by Ameriabank acquisition and strong digital engagement.

• Ameriabank consolidation significantly boosted operating income and net non-interest income, now representing over 25% of Group assets.

• Recognized as World's Best Digital Bank by Global Finance, with digital channels accounting for up to 70% of retail product sales.

• Maintained high standards in governance, ESG, and customer satisfaction, with NPS reaching 71.

• Board recommended a final dividend of GEL 9.00 per share, up 12.5% year-over-year, and approved an additional GEL 107.7 million share buyback.

Financial highlights

• FY24 operating income rose 40.8% year-over-year to GEL 3.56 billion; net interest income up 46.1% to GEL 2.36 billion.

• Adjusted ROAE reached 30.0% for FY24; cost-to-income ratio improved to 34.3%.

• Loan portfolio grew 65.9% year-over-year to GEL 33.6 billion; deposit portfolio up 61.8% to GEL 33.2 billion.

• Cost of credit risk at 0.5% for FY24; NPL ratio at 2.0%; NPL coverage ratio at 63%.

• Adjusted EPS for FY24 was GEL 41.46, up 34.7% year-over-year.

Outlook and guidance

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

• Expectation of robust economic growth in Georgia (c.5% GDP growth in 2025) and Armenia (IMF projects 4.9% GDP growth in 2025).

• Cost-to-income ratio targeted at 35% with further improvement as scale increases.

• Capital distribution expected at the lower end of 30-50% guidance due to high growth, especially in Armenia.

• Continued focus on digital transformation, customer franchise growth, and high profitability across core markets.