Lion Finance Group (LON:BGEO) Posts Earnings Results

Key Points

• Strong quarterly results: Group profit rose about 14% YoY with operating income up 15% and net interest income up ~18%, delivering a ~27.5% return on equity on GEL 410.7m revenue and reported EPS of GEL 384.31.
• Robust balance-sheet growth: Loans grew 23.3% YoY (Armenia +34.6% in constant currency; Georgia +17.8%) and deposits rose roughly 17.5%, supporting ongoing revenue momentum.
• Very healthy asset quality but margin risks: NPLs are low at 2.1% and cost of risk is 0.3% with comfortable capital/liquidity and a GEL 177m capital distribution (GEL 122m dividend + GEL 55m buyback), although FX pressure, higher Armenian funding/AT1 costs and rising Georgian operating costs could squeeze near‑term margins.

Lion Finance Group (LON:BGEO - Get Free Report) released its quarterly earnings results on Thursday. The company reported GEL 384.31 earnings per share for the quarter, Digital Look Earnings reports. The firm had revenue of GEL 410.68 million for the quarter. Lion Finance Group had a net margin of 32.28% and a return on equity of 27.57%.

Here are the key takeaways from Lion Finance Group's conference call:

• Strong quarterly earnings: Group profit rose ~14% YoY with operating income up 15% and net interest income up ~18%, delivering a 27.4% return on equity.
• Robust balance-sheet growth: Loans grew 23.3% YoY (Armenia +34.6% in constant currency; Georgia +17.8%) and deposits rose ~17.5% group‑wide, supporting revenue momentum.
• Very healthy asset quality: NPL ratio is low at 2.1% and cost of risk is only 0.3%, well below the bank’s mid‑term guidance of 80–100 bps.
• Strong capital, liquidity and shareholder actions: Comfortable CET1 and liquidity buffers, completed/announced AT1 issuance, and a GEL 177m capital distribution (GEL 122m dividend + GEL 55m buyback).
• Margin and cost headwinds: FX income is under pressure and Armenian margins are hit by higher local‑currency funding and AT1/sub‑debt costs, while Georgian operating costs are rising faster than inflation, which could compress near‑term NIM and expense ratios.

Lion Finance Group Price Performance

BGEO stock traded up GEL 150.00 during midday trading on Thursday, reaching GEL 11,340.00. The company had a trading volume of 147,214 shares, compared to its average volume of 5,278,898. Lion Finance Group has a 1 year low of GEL 6,035.00 and a 1 year high of GEL 12,040.00. The firm has a 50-day moving average price of GEL 10,500.76 and a 200-day moving average price of GEL 9,552.61. The company has a market capitalization of $490.16 billion, a P/E ratio of 2.29, a P/E/G ratio of 0.88 and a beta of 0.82.

Insider Transactions at Lion Finance Group

In other news, insider Karine Hirn purchased 1,450 shares of the company's stock in a transaction on Wednesday, February 25th. The stock was purchased at an average price of GEL 11,148.00 per share, with a total value of GEL 16,164,600.00. 8.55% of the stock is currently owned by company insiders.

Lion Finance Group Company Profile

Lion Finance Group PLC (formerly Bank of Georgia Group PLC) is a FTSE 250 holding company whose main subsidiaries provide banking and financial services in the high-growth Georgian and Armenian markets through leading, customer-centric, universal banks – Bank of Georgia in Georgia and Ameriabank in Armenia. By building on our competitive strengths, we are committed to driving business growth, sustaining high profitability, and generating strong returns, while creating opportunities for our stakeholders and making a positive contribution in the communities where we operate.

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