Lion Finance Group Plc · LSE:BGEO
Lion Finance — Q3 2021 Earnings Presentation
34 slides from Lion Finance's earnings presentation, Nov 11, 2021
Slide 1: Results Call Presentation 3Q21 and 9M21 Financial Results
Click to edit Master title style RESULTS CALL PRESENTATION 3Q21 and 9M21 Financial Results 11 November 2021 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 3Q21 AND 9M21 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 CUMULATIVE VACCINATIONS, 000’ doses Source: www.stopcov.ge, NCDC Source: NCDC, ourworldindata at 16:00, 10 November 2021 10 November 2021 2,500 2,000 37.2% of Georgia’s adult population has received 766,
Slide 5: Solid Economic Growth in 9M21
Click SOLID to edit ECONOMIC Master title GROWTH style IN 9M21 5 REAL GDP GROWTH IN 2021 EXCEEDING 2019 LEVEL GDP contracted by 6.2% in 2020 and by 4.5% in 1Q21, Source: Geostat mainly due to COVID-19 pandemic-related mobility restrictions Real GDP growth in 9M21: 11.3% y-o-y With restrictions
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 Remmitances Exports Imports Trade deficit Tourism revenues in 2021 as 150% 145.4% a % of 2019 level 150% 120% 120% 90% 90% 69.8%
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% Inflation acceleration reflects utility price increases, 12.8% 14% 12% higher world commodity and transportation prices, 12% 130 130 1
Slide 8: Georgia's Economic Outlook in 2021
Click to edit Master GEORGIA’S titleOUTLOOK ECONOMIC style IN 2021 8 GEORGIA'S ECONOMIC GROWTH FORECAST Source: Geostat, Galt & Taggart 12% 10.5% 10% Our brokerage and investment arm, Galt & Taggart has revised 2021 real GDP growth 7.4% 8% forecast up to 10.5% from the previous 6.4% 6.2% forecast
Slide 9: Contents
Click CONTENTS to edit Master title style 9 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 3Q21 AND 9M21 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 payments transactions are executed in BOG POS terminals c.9.7mln transactions executed in mobile app per month, RETAIL BANKING increased by 69% y-o-y More than 96% o
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 +16.4% MILLIONS +65.0% +4.5% +14.6% 831 30.2 26.3 787 795 22.2 20.6 760 18.3 714 29.1 25.3 19.5 21.2 17.2 c.9.7mln 1.1 1.1 0.9 1.0 1.0 Sep
Slide 13: Strong Transactions Offloading to Digital Channels
Click to edit STRONG Master title style TRANSACTIONS OFFLOADING TO DIGITAL CHANNELS* 13 NUMBER OF TRANSACTIONS MILLIONS Share of 3,130 93.5% 93.5% 94.2% 96.0% 95.1% 96.1% 95.9% 96.2% 96.5% digital Express pay terminals transactions +18.8% flat y-o-y -0.4% q-o-q 61.7 57.7 52.5 51.9 51.9 2.2 48.8 3.4
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 3 00 44% 46% 50% 42% Georgians living abroad in need of New functionality 2 50 added in mBank 38% 35% daily banking s
Slide 16: Payments as a Daily Touchpoint with Customers
Click to edit Master PAYMENTS titleTOUCHPOINT AS A DAILY style WITH CUSTOMERS 16 NUMBER OF PAYMENTS VOLUME OF PAYMENTS TRANSACTIONS TRANSACTIONS AT BOG TERMINALS AT BOG TERMINALS MILLIONS GEL MILLIONS +45.4% +44.8% 35k +54.7% +70.2% 105 +14.9% 2,985 +25.8% Multifunctional POS terminals 42 1,270 +39.
Slide 17: Full Digital Experience to Our Business Customers
Click FULLtoDIGITAL edit Master title style EXPERIENCE TO OUR BUSINESS CUSTOMERS 17 BUSINESS MBANK/IBANK STATISTICS* Number of active users** Number of transactions THOUSANDS +32.0% MILLIONS +34.6% +8.7% +14.4% 45 3.0 41 2.5 2.6 38 2.2 2.1 36 34 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 924k
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 20 122 63% 36% Data models running online, covering Automation rate for retail lending Contribution in sales process, powered by different business processes process in 9M21 data-driven models in 9M21 KEY DATA-RELATED INITIATIVES IMPLEMENTED
Slide 21: Contents
Click CONTENTS to edit Master title style 21 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 3Q21 AND 9M21 RESULTS
Slide 22: 3Q21 Results Highlights
Click 3Q21toRESULTS 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 Bank of Georgia’s performance has been very strong in 3Q21: Strong balance sheet growth with better than expected levels of 29.4% lending in
Slide 24: Strong Underlying Performance
Click to edit STRONG Master titlePERFORMANCE UNDERLYING style 24 OPERATING INCOME NET NON-INTEREST INCOME GEL MILLIONS GEL MILLIONS +25.8% +44.3% +24.8% +41.0% +3.8% 303 -2.1% 348 335 986 60 276 105 30% 791 31% 107 32% 215 303 75 107 105 72 26% 23 215 27% 9 27 73 72 33 8 22 684 69% 228 68% 243 70% 1
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 10.6% 10.4% 10.7% 10.4% 10.4% 10.4% 10.6% 5.0% 4.8% 4.8% 4.7% 4.7% 4.5% 4.4% 4.8% 4.6% 4.7% 4.6% 4.5% 4.5% 4.7% 3.5% 3.6% 3.8% 3.8% 3.8% 3.5% 3.6% 9M20 9M21 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 26: Focus on Efficiency and Stringent Cost Control
Click to edit FOCUS ON Master titleAND EFFICIENCY styleSTRINGENT COST CONTROL 26 COST TO INCOME RATIO OPERATING EXPENSES 39.7% GEL MILLIONS 37.1% +13.8% 36.2% 36.4% 36.8% +24.7% 357 2 +5.1% 314 3 68 122 128 62 1 103 1 86 23 1 22 74 9M20 9M21 3Q20 2Q21 3Q21 19 30 32 Continued investment in IT-relat
Slide 27: Resilient Loan Portfolio Quality
Click to edit LOAN RESILIENT Master title styleQUALITY PORTFOLIO 27 COST OF CREDIT RISK RATIO LOAN PORTFOLIO QUALITY ECL provision created for NPL coverage the full economic cycle in 92.7% 90.5% 80.9% 76.3% 90.9% 1Q20 proved to be sufficient NPL coverage adjusted for collateral value 130.6% 129.9% 1
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 +9.8% -5.0% +14.2% +14.3% -1.6% +2.5% +17.7% +5.9% 15,579 14,020 14,192 13,313 13,627 12,985 11,931 10,077 9,398 8,611 55% 59% 8,500 61% 8,389 8,259 61% 8,134 8,228 8
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% 118.4% 117.0% 129.7% 115.5% 120.1% 112.7% 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 Release of capital buffers: In April 2020, as part of its updated 18.6% 19.1% 19.2% 18.1% 17.4% 17.6% supervisory plan as a response to the COVID-19 pandemic, the
Slide 31: Capital Ratios Evolution and Update on Minimum Capital Requirements
CAPITAL RATIOS EVOLUTION AND UPDATE ON MINIMUM Click to edit Master title style 31 CAPITAL REQUIREMENTS CAPITAL RATIOS EVOLUTION DURING 9M21 Capital Tier 2 Capital Potential impact 9M21 Business GEL ratios Dividend facility ratios of 10% GEL profit growth appreciation DEC-20 impact SEP-21 devaluatio
Slide 32: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 32 BOG EQUITY VS. CET1 REG. CAPITAL | SEP-21 RISK WEIGHTED ASSETS GEL MILLIONS GEL MILLIONS +13.8% % of RWAs 12.8% 1.5% 0.7% 1.5% +3.9% 259 2,855 16,040 16,516 16,599 17,248 265 120 15,162 2,211 2.2% NBG Loan IP Other BOG Sep-20 Dec-20
Slide 33: Track Record of Delivering Strong Results
Click to edit TRACK Master RECORD OFtitle style STRONG RESULTS DELIVERING 33 Medium-term loan book growth target revised from c.15% to c.10% Nominal Constant currency basis 25.2% 26.4% 26.1% 25.7% 27.0% 21.4% 18.9% ROAE 13.0% Loan book growth YoY 17.4% 20%+ 17.7% c.10% 15.9% 19.0% 22.0% 10.2% 14.3%
Slide 34: Thank You
Click to edit Master title style 34 THANK YOU