Lion Finance Group (BGEO) Q4 2025 earnings summary

Executive summary

• Achieved record net income growth of 20.9% year-over-year, nearing $2.2 billion, with return on equity at 28.4% for the year and over 30% in Q4.

• Maintained high profitability and robust growth in both Georgian and Armenian operations, supported by digital engagement and diversified portfolios.

• Ameriabank completed its first full year as part of the group, delivering substantial growth in both balance sheet and retail coverage.

• Strategic focus on profitable growth, digital transformation, and customer-centricity, with medium-term targets of c.15% annual loan book growth and 20%+ ROAE.

Financial highlights

• Group operating income rose 16.4% in Q4 and 20.8% for the year; net interest income up 19.9% in Q4 and 25.9% for the year.

• Net non-interest income increased 10% in Q4 and 10.8% for the year; net fee and commission income surged 33.8% in Q4 due to a new card payment deal.

• Loan portfolio grew 19.7% in constant currency; deposit portfolio up 17.3% in constant currency year-over-year.

• Cost-income ratio at 35.5% for the year, with cost of risk at 0.4% annually and 0.3% in Q4.

• Dividend for the year increased by 16.7%, maintaining significant capital buffers for growth.

Outlook and guidance

• Loan growth guidance: 10%+ in Georgia, 20%+ in Armenia for 2026; management targets c.15% annual loan book growth and 20%+ ROAE medium term.

• Expect neutral to slightly positive operating leverage; net fee and commission income growth projected at 15%-20% going forward.

• NIM outlook is flat to slightly positive, supported by excess liquidity deployment.

• Cost of risk expected to remain below through-the-cycle guidance (80-100 bps) if macro conditions stay strong.

• GEL and AMD expected to remain stable, with continued economic growth in Georgia and Armenia.