Lion Finance Group (LON:BGEO) Announces Quarterly Earnings Results

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

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 Stock Down 2.7%

Lion Finance Group stock opened at GEL 11,030.00 on Friday. The company has a fifty day simple moving average of GEL 10,500.76 and a 200-day simple moving average of GEL 9,552.61. The firm has a market capitalization of $476.76 billion, a price-to-earnings ratio of 2.23, a PEG ratio of 0.88 and a beta of 1.47. Lion Finance Group has a 52-week low of GEL 6,035.00 and a 52-week high of GEL 12,040.00.

Insider Activity

In related news, insider Karine Hirn purchased 1,450 shares of the company’s stock in a transaction dated Wednesday, February 25th. The stock was acquired at an average cost of GEL 11,148.00 per share, for a total transaction of GEL 16,164,600.00. 8.55% of the stock is owned by company insiders.

About Lion Finance Group

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.