Lion Finance Group Plc · LSE:BGEO
Lion Finance — Q4 2021 Earnings Presentation
34 slides from Lion Finance's earnings presentation, Mar 2, 2022
Slide 1: Results Call Presentation: 4Q21 and FY21 Financial Results
Click to edit Master title style RESULTS CALL PRESENTATION 4Q21 and FY21 Financial Results 22 February 2022 www.bankofgeorgiagroup.com
Slide 2: Disclaimer – Forward-Looking Statements
Click DISCLAIMER to edit Master – FORWARD title styleLOOKING STATEMENTS 2 This presentation contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capi
Slide 3: Contents
Click CONTENTS to edit Master title style 3 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q21 AND FY21 RESULTS
Slide 4: COVID-19 Statistics in Georgia
Click COVID-19 to edit Master STATISTICS title style IN GEORGIA 4 COVID-19 STATISTICS IN GEORGIA Source: NCDC at 12:00, 21 February 2022 1,553,668 129,978 1,407,776 43.2% Confirmed cases Active cases Recovered Of adult population fully vaccinated COVID-19 STATISTICS IN GEORGIA, 000’ PERSONS COVID-19
Slide 5: Solid Economic Growth in 2021
Click SOLID to edit ECONOMIC Master title GROWTH style IN 2021 5 REAL GDP GROWTH IN 2021 EXCEEDING 2019 LEVEL GDP contracted by 6.8% in 2020 and by 4.1% in 1Q21, Source: Geostat mainly due to the COVID-19-related restrictions Real GDP growth in 2021: As restrictions were gradually lifted, the ec
Slide 6: Tracking Georgia's Economic Recovery
Click to edit Master TRACKING titleECONOMIC GEORGIA’S style RECOVERY 6 EXPORTS, REMITTANCES, IMPORTS AND TOURISM REVENUES SHOWING STRONG REBOUND Source: Geostat, NBG, GNTA Remittances Exports Imports Trade deficit Tourism revenues, 2021 as % of 2019 level 150% 2021 vs. 2020 2021 vs. 2019 Exports 26.
Slide 7: Fiscal and Monetary Policy
Click to edit FISCAL AND Master title style MONETARY POLICY 7 ANNUAL INFLATION Source: Geostat NOMINAL AND REAL EFFECTIVE EXCHANGE RATE (JAN2014=100) Source: NBG 14% 13.9% 14% 12% 12% 130 130 10% 10% 120 +17.9% y/y 120 8% 8% 110 110 6% 6% 100 100 4% 5.6% 4% 2% 2% 90 90 0% 0% 80 +20.4% y/y 80 -2% -2%
Slide 8: Georgia's Economic Outlook in 2022
Click to edit Master GEORGIA’S titleOUTLOOK ECONOMIC style IN 2022 8 GEORGIA'S ECONOMIC GROWTH FORECAST Source: Geostat, Galt & Taggart 12% 10.6% 10% 7.4% 8% Our brokerage and investment arm, Galt & 6.4% 6.2% Taggart, forecasts a 5.0% real GDP growth in 6% 4.8% 4.8% 5.0% 4.4% 2022, driven by a con
Slide 9: Contents
Click CONTENTS to edit Master title style 9 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q21 AND FY21 RESULTS
Slide 10: Bank of Georgia Group at a Glance
Click BANKto OF editGEORGIA Master title GROUP style AT A GLANCE 10 Leader in payments and financial mobile app 51% of total POS payment transactions executed in BOG POS terminals c.11.4 mln transactions executed in mobile app per month, up 76% y-o-y RETAIL BANKING 96% of transactions of indiv
Slide 11: Strategic Focus: Bank of the Future
Click to edit Master STRATEGIC FOCUS title style 11 BANK OF THE FUTURE
Slide 12: Georgia's Most Popular Financial Mobile App
Click to edit Master GEORGIA’S title style MOST POPULAR FINANCIAL MOBILE APP 12 MBANK/IBANK STATISTICS* Number of active users** Number of transactions THOUSANDS +21.2% MILLIONS +71.9% +10.8% +17.4% 35.4 30.2 921 26.3 20.6 22.2 831 787 795 34.3 760 29.1 25.3 19.5 21.2 c.11.4mln 1.1 0.9 1.0 1.0 1.1 T
Slide 13: Strong Transactions Offloading to Digital Channels
Click to edit STRONG Master title style TRANSACTIONS OFFLOADING TO DIGITAL CHANNELS* 13 NUMBER OF TRANSACTIONS 3,134 MILLIONS Share of 93.5% 94.2% 96.0% 95.1% 96.1% 95.9% 96.2% 96.5% 96.0% digital Express Pay terminals transactions +34.2% +3.8% y-o-y +0.1% q-o-q 69.6 0.1 61.7 2.8 52.5 51.9 51.9 57.7
Slide 14: Significant Upside in Product Offloading to Digital Channels
Click to edit Master SIGNIFICANT UPSIDEtitle style OFFLOADING TO DIGITAL CHANNELS IN PRODUCT 14 HAVING ACHIEVED HIGH TRANSACTIONS OFFLOADING RATE TO DIGITAL CHANNELS, OUR AIM NOW IS TO INCREASE PRODUCT OFFLOADING RATE PRODUCT OFFLOADING* THOUSANDS Continuously developing our digital products and r
Slide 15: Remittances and Potential in Georgian Emigrants
Click to edit Master REMITTANCES ANDtitle style IN GEORGIAN EMIGRANTS POTENTIAL 15 MARKET POTENTIAL NUMBER OF RECEIVED REMITTANCES AT BOG THROUGH DIGITAL CHANNELS c.1.3 mln THOUSANDS 300 60% Georgians living abroad in need of 46% 49% 250 42% 44% 50% daily banking services New functionality added in
Slide 16: Payments as a Daily Touchpoint with Customers
Click to edit Master PAYMENTS title TOUCHPOINT AS A DAILY style WITH CUSTOMERS 16 NUMBER OF PAYMENT VOLUME OF PAYMENT TRANSACTIONS TRANSACTIONS IN BOG TERMINALS IN BOG TERMINALS MILLIONS GEL MILLIONS +50.2% +62.9% +63.7% +86.9% +7.0% 4,371 +9.1% 150 45 1,386 42 1,270 100 2,671 27 742 c.39k Multifunc
Slide 17: Full Digital Experience for Our Business Customers
Click FULLtoDIGITAL edit Master title style EXPERIENCE FOR OUR BUSINESS CUSTOMERS 17 BUSINESS MBANK/IBANK STATISTICS* Number of active users** Number of transactions Transactions offloading rate THOUSANDS +32.0% MILLIONS +44.3% +6.2% +19.5% 97.4% 48 97.1% 45 3.6 96.7% 96.7% 96.5% 41 3.0 2.5 2.6 38 3
Slide 18: Customer Satisfaction
Click to edit Master CUSTOMER title style SATISFACTION 18 FOCUS ON INCREASING CUSTOMER SATISFACTION BY: Harnessing strong human Engaging with customers Anticipating customer Investing in technology to relationships with data proactively and responding needs, wants, and future deliver seamless custom
Slide 19: Employee Empowerment
Click to edit Master EMPLOYEE title style EMPOWERMENT 19 Re-design of employee experiences High-trust environment New talent development strategy Values-based organisation Employees feel more engaged and enabled ENPS 73% High-Performing 73% High-Performing 58% 60% 61% Organisations Benchmark Organis
Slide 20: Data-Driven Organisation
Click DATA-DRIVEN to edit Master ORGANISATION title style 20 127 70% 40% Data models running online, covering Automation rate in the retail lending Contribution to sales, powered by data- different business processes process in 2021 driven models in 2021 KEY DATA-RELATED INITIATIVES DURING 2021 Im
Slide 21: Contents
Click CONTENTS to edit Master title style 21 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q21 AND FY21 RESULTS
Slide 22: 4Q21 Results Highlights
Click 4Q21toRESULTS edit Master HIGHLIGHTS title style 22 Resilient loan portfolio Outstanding Strong interest and Strong portfolio Strong capital and quality and high cost profitability F&C income generation growth liquidity positions efficiencies ROAE Operating income Cost of credit risk Loan grow
Slide 23: Strong Profitability Notwithstanding the Pandemic
Click to edit STRONG Master title style PROFITABILITY NOTWITHSTANDING THE PANDEMIC 23 OUTSTANDING QUARTERLY PERFORMANCE TRACK RECORD OF STRONG PROFITABILITY Strong balance sheet growth with better than expected levels of lending in the consumer, micro and SME portfolios Strong operating income p
Slide 24: Strong Underlying Performance
Click to edit STRONG Master titlePERFORMANCE UNDERLYING style 24 OPERATING INCOME NET NON-INTEREST INCOME GEL MILLIONS GEL MILLIONS +25.2% +31.5% +26.4% 412 1,366 +10.9% +9.0% 70 313 +4.4% 1,091 412 30% 379 348 48 109 313 29% 300 109 29% 105 30% 99 98 105 109 98 33% 9 11 25 33 34 954 70% 232 778 71%
Slide 25: Net Interest Margin
Click NETto edit Master INTEREST title style MARGIN 25 NET INTEREST MARGIN LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 5.3% 10.5% 10.6% 10.4% 10.4% 10.4% 10.6% 11.0% 5.0% 4.9% 4.7% 4.6% 4.5% 4.7% 4.6% 4.6% 4.5% 4.5% 4.7% 4.8% 4.4% 3.6% 3.6% 3.8% 3.8% 3.5% 3.6% 3.5% 2020 2021 4Q20 1Q21 2Q21 3Q21 4Q21
Slide 26: Focus on Efficiency and Cost Control
Click to edit FOCUS ON Master titleAND EFFICIENCY styleCOST CONTROL 26 COST TO INCOME RATIO OPERATING EXPENSES 39.7% 39.6% 39.8% GEL MILLIONS 37.2% 36.8% +17.4% 508 +26.9% 4 433 5 94 +17.8% 83 151 130 1 119 128 2020 2021 4Q20 3Q21 4Q21 106 1 25 2 23 21 44 Continuing investments in IT-related resou
Slide 27: Resilient Loan Portfolio
Click to edit LOAN RESILIENT Master title style PORTFOLIO 27 COST OF CREDIT RISK RATIO LOAN PORTFOLIO QUALITY NPL coverage ECL provision created for 92.7% 90.5% 80.9% 76.3% 95.5% the full economic cycle in 1Q20 NPL coverage adjusted for collateral value Entering the COVID-19 130.6% 129.9% 139.6% 128
Slide 28: Strong Loan and Deposit Portfolio Growth
Click to edit STRONG Master LOAN ANDtitle stylePORTFOLIO GROWTH DEPOSIT 28 LOAN PORTFOLIO DEPOSIT PORTFOLIO GEL MILLIONS GEL MILLIONS +0.1% +13.9% +12.5% +19.8% 14,020 14,038 16,169 14,192 11,931 10,077 8,820 55% 61% 61% 9,398 8,134 8,500 8,612 8,389 59% 6,985 59% 69% 6,986 5,800 62% 5,488 67% 7,349
Slide 29: Strong Liquidity and Funding Positions
Click to edit STRONG Master title LIQUIDITY AND style FUNDING POSITIONS 29 LIQUIDITY COVERAGE AND NET STABLE NET LOANS TO CUSTOMER FUNDS AND DFIs FUNDING RATIOS JSC Bank of Georgia standalone (Basel III liquidity) 136.7% 138.6% 137.5% 133.6% 132.5% 132.5% 118.4% 115.5% 115.2% 124.0% 120.1% 103.2% 10
Slide 30: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 30 NBG’S COVID-19 RESPONSE AND CURRENT UPDATE CAPITAL ADEQUACY RATIOS 18.6% 19.1% 19.2% 19.3% 18.1% 17.4% 17.6% 17.3% Release of capital buffers: In April 2020, as part of its updated supervisory plan in 15.3% response to the COVID-1
Slide 31: Evolution of Capital Ratios and Update on Minimum Capital Requirements
EVOLUTION OF CAPITAL RATIOS AND UPDATE ON MINIMUM Click to edit Master title style 31 CAPITAL REQUIREMENTS EVOLUTION OF CAPITAL RATIOS DURING 2021 Capital Tier 2 Capital Potential impact 2021 Business GEL ratios Dividend facility ratios of a 10% GEL profit growth appreciation DEC-20 impact DEC-21 de
Slide 32: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 32 BOG EQUITY VS. CET1 REG. CAPITAL | DEC-21 RISK-WEIGHTED ASSETS GEL MILLIONS GEL MILLIONS +12.1% % of RWAs 13.2% 1.5% 0.7% 1.5% +4.2% 271 3,040 267 121 16,599 17,248 17,978 2,381 16,040 16,516 2.2% NBG Loan IP Other BOG Dec-20 Mar-21
Slide 33: Track Record of Delivering Strong Results
Click to edit TRACK Master RECORD OFtitle style STRONG RESULTS DELIVERING 33 Nominal Constant currency basis 25.2% 26.4% 26.1% 25.8% 27.0% ROAE Loan book YoY growth 17.4% 21.4% 18.9% 19.8% 20%+ c.10% 13.0% 19.0% 22.0% 15.9% 10.2% 13.9% 2017 2018* 2019** 2020 2021 2017 2018 2019 2020 2021 ROBUST CAPI
Slide 34: Thank You
Click to edit Master title style 34 THANK YOU