Lion Finance Group Plc · LSE:BGEO
Lion Finance — Q1 2025 Earnings Presentation
34 slides from Lion Finance's earnings presentation, May 15, 2025
Slide 1: Investor Presentation 1Q25 Performance
INVESTOR PRESENTATION 1Q25 Performance 15 May 2025 www.lionfinancegroup.uk 1
Slide 2: Disclaimer: forward-looking statements
Disclaimer: forward-looking statements 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, capital expenditures, financing needs,
Slide 3: Who we are
Who we are Georgian Financial Services (GFS) Total assets: GEL 38.9 bn Operating leading, customer-focused, universal banks in Georgia and Armenia Strong growth momentum underpinned Armenian Financial Services by some of the fastest growing (AFS) 72% economies in EMEA Total assets: GEL 13.3 bn 25% L
Slide 4: The Group delivered a strong performance in 1Q25
The Group delivered a strong performance in 1Q25 Profit ROAE Cost to income Cost of credit risk Group (consolidated) GEL 513.1m 28.7% 35.0% 0.2% 1Q25 highlights +39.0% y-o-y* Georgian Financial Services (GFS) JSC Bank of Georgia 1Q25 profit GEL 405.1m Market share by total loans, 37.3% Mar-25 1Q25 R
Slide 5: Contents
Contents MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q25 RESULTS APPENDICES 5
Slide 6: Georgian and Armenian economies maintain strong growth momentum
Georgian and Armenian economies maintain strong growth momentum, with a robust medium-term outlook Real GDP growth, year-on-year Average real GDP growth forecasts by IMF Armenia Georgia Peer average (2026-2030) 15% 5.7% 5.4% 9.4% 5.0% 10% 4.7% 4.5% 4.5% 4.4% 6.8% 4.0% 3.9% 5% 5.9% 4.5% 3.6% 3.5% 3.4
Slide 7: External inflows have normalised, but continue to support growth
External inflows have normalised, but continue to support growth and currency stability in Georgia and Armenia Main sources of external sector inflows in Main sources of external sector inflows in Georgia, US$ bn Armenia, US$ bn Export of goods Tourism revenue Money transfers Export of goods Tourism
Slide 8: Resilient and diversified service exports drive growth
Resilient and diversified service exports drive growth and hard currency inflows in Georgia and Armenia Export of services from Georgia, US$ bn. Export of services from Armenia, US$ bn. Travel Transport IT Other % of GDP Travel Transport IT Other % of GDP 26.1% 22.8% 22.9% 22.8% 22.6% 23.6% 22.0% 18
Slide 9: GEL and AMD have remained relatively stable
GEL and AMD have remained relatively stable, supported by external sector inflows and prudent macroeconomic policies Currency movements against the U.S. dollar GEL and AMD real effective exchange rates (percent change; appreciation shown as increase) (Jan-2014 = 100; appreciation shown as increase)
Slide 10: Inflation in Georgia and Armenia expected to stay aligned with targets
Despite a recent uptick, inflation in Georgia and Armenia is expected to stay aligned with central bank targets Inflation and monetary policy in Georgia Inflation and monetary policy in Armenia Monetary policy rate CPI inflation, year-on-year Monetary policy rate CPI inflation, year-on-year Inflatio
Slide 11: Prudent monetary and fiscal policies support adequate policy buffers
Prudent monetary and fiscal policies are expected to support adequate policy buffers in Georgia and Armenia International reserves in Georgia International reserves in Armenia (end of period, US$ bn) (end of period, US$ bn) Gross international reserves Reserve adequacy ratio* Gross international res
Slide 12: Georgia and Armenia have reduced external debt burdens
Georgia and Armenia have consistently reduced their external debt burdens, strengthening resilience to external shocks Georgia’s net external debt, % of GDP Armenia’s net external debt, % of GDP Public sector Private sector Total Peer median Public sector Private sector Total Peer median 76.3% 70.5%
Slide 13: Robust lending growth, declining dollarisation, sound balance sheets
Robust lending growth, declining dollarisation, and sound balance sheets underscore the strength of the banking sectors in Georgia and Armenia Bank lending growth on a constant Total bank loan dollarisation Non-performing bank loans to total currency basis, y-o-y gross loans, end-2024 or latest avai
Slide 14: Contents
Contents MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q25 RESULTS APPENDICES 14
Slide 15: What we focus on
What we focus on Our strategic priorities The main bank Excellent customer experience Profitable growth Being the main bank in Anticipating customer needs Growing the balance sheet customers’ daily lives by and wants and providing profitably and focusing on areas leveraging the digital and relevant
Slide 16: Bank of Georgia - The World's Best Digital Bank
Bank of Georgia - The World's Best Digital Bank 16
Slide 17: Our award-winning financial apps
Our award-winning financial apps Retail Financial SuperApp Business Mobile App Daily banking Daily banking Transfers (by phone, ID & account number); Transfers (by ID, IN & account number); Bill payments; P2P instant transfers; Packaged transfers; Payments > 200 QR ATM withdrawals; Video banking; pr
Slide 18: Continued growth in active and digitally engaged customers
Continued growth in active and digitally engaged customers Figures given for JSC Bank of Georgia standalone Monthly active customers (individuals) Monthly active customers (businesses) thousands thousands 2,002 2,038 1,898 1,948 +11.0% 116 +15.0% 1,836 y-o-y 115 y-o-y 110 105 1,594 1,645 100 1,469 1
Slide 19: Digital product sales continue to rise
Digital product sales continue to rise Figures given for JSC Bank of Georgia standalone Share of products sold digitally (Retail) Digital sales count: loans and deposits in Mar-25 (Retail) Gamification campaign effect 70% 67% Loans* 85% 15% 62% 57% 57% 58% 47% 44% Deposits 74% 26% 43% Digital Human-
Slide 20: Payments business – our daily touchpoint with customers
Payments business – our daily touchpoint with customers Figures given for JSC Bank of Georgia standalone Acquiring - volume of payment transactions Issuing – payment MAU GEL millions thousands +31.9% +15.9% -6.2% +2.5% 5,627 5,312 5,280 1,487 4,687 1,451 4,002 2,009 2,338 2,328 1,376 1,782 1,503 1,3
Slide 21: Record high customer satisfaction thanks to our customer-centric culture
Record high customer satisfaction thanks to our customer-centric culture Figures given for JSC Bank of Georgia standalone NPS* 73 71 67 Engaging with customers proactively and responding in real 60 61 61 time 58 58 59 59 55 54 52 Anticipating customer needs, wants, and future behavior 49 46 47 Harne
Slide 22: Ameriabank: digital momentum fueling growth potential
Ameriabank: digital momentum fueling growth potential Monthly active customers (individuals) Digital engagement of active customers thousands 372 65% 66% 357 +25.9% 60% y-o-y 57% 312 54% 296 300 245 232 +53.1% y-o-y 43% 188 41% 42% 41% 42% 173 160 100 102 +55.1% 72 78 y-o-y 66 Mar-24 Jun-24 Sep-24 D
Slide 23: Contents
Contents MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 1Q25 RESULTS APPENDICES 23
Slide 24: Strong year-on-year growth enhanced by the Ameriabank consolidation
Strong year-on-year growth enhanced by the Ameriabank consolidation All currency data are in GEL m unless otherwise stated Operating income Net interest income +56.2% +52.0% +3.0% -5.2% 641 664 684 1,032 618 13 11 949 979 15 13 938 29 438 165 162 180 191 45 45 31 15 272 +14.1% 234 223 248 422 438 46
Slide 25: Strong growth in non-interest income lines
Strong year-on-year growth in non-interest income lines mainly due to Ameriabank consolidation All currency data are in GEL m unless otherwise stated Net fee & commission income Net foreign currency gain +28.1% +60.8% -18.3% -17.4% 169 176 151 2 152 153 18 1 134 138 146 40 29 4 14 16 2 51 29 108 21
Slide 26: Operating expenses impacted by Ameriabank consolidation
Operating expenses impacted by Ameriabank consolidation and few significant items in GFS All currency data are in GEL m unless otherwise stated Operating expenses Cost to income ratio +82.4% -7.5% 52.7% 371 48.9% 48.6% 47.2% 338 343 326 23 21 26 21 35.6% 34.8% 35.9% 35.0% 128 123 109 120 29.2% 188 2
Slide 27: Strong and broad-based year-on-year loan and deposit growth
Strong and broad-based year-on-year loan and deposit growth All currency data are in GEL m unless otherwise stated Loan portfolio Deposit portfolio +20.8% in cc +17.3% in cc +2.0% in cc +2.7% in cc 34,137 33,202 33,969 33,559 31,872 31,059 +30.9% 30,706 1,282 +15.3% 30,082 755 750 1,201 y-o-y in cc
Slide 28: Net interest margin impacted by higher liquidity maintained at GFS
Net interest margin impacted by higher liquidity maintained at GFS Net interest margin (Group) Loan yield, cost of funds, cost of deposits (Group) 12.4% 12.4% 12.2% 12.2% 12.2% 6.4% 6.3% 6.2% 6.0% 5.9% 5.0% 4.8% 4.8% 4.9% 5.0% 4.2% 4.0% 4.0% 4.0% 4.1% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q2
Slide 29: Robust asset quality maintained across the business
Robust asset quality maintained across the business All currency data are in GEL m unless otherwise stated Cost of credit risk ratio (Group)* Loan portfolio quality (Group) NPL coverage*** 72.3% 63.7% 71.4% 63.0% 59.3% 1.1% NPL coverage adjusted for the discounted value of collateral*** 0.4% 0.5% 0.
Slide 30: Maintaining high profitability levels
Maintaining high profitability levels All currency data are in GEL m unless otherwise stated Profit (Group)* ROAE (Group)* +39.0% 32.1% 29.6% 28.7% +1.7% 27.7% 28.0% 509 505 513 6 3 12 430 91 108 96 1Q24 2Q24 3Q24 4Q24 1Q25 369 17 32 0 +9.4% ROAA (Group)* 411 405 y-o-y 370 381 393 4.7% 4.4% 3.9% 4.0
Slide 31: Solid capital position at BOG; Ameriabank's capital ratio set to improve
Solid capital position at BOG; Ameriabank’s capital ratio set to improve As at 31 March 2025 21.2% 19.6% 1.0% 16.4% 2.3% 16.8% 1.2% 14.7% 14.7% 0.3% 0.9% 3.0% 20.2% 17.3% 15.2% 16.5% 13.8% 11.7% CET1 Tier1 Total CET1 Tier1 Total Min Requirement Buffer Above Minimum Min Requirement Buffer Above Minim
Slide 32: Strong liquidity positions, well above the 100% minimum requirements
Strong liquidity positions, well above the 100% minimum requirements As at 31 March 2025 NBG Liquidity NBG Net stable CBA Liquidity CBA Net stable coverage ratio funding ratio coverage ratio funding ratio 133.5% 131.4% 229.8% 126.5% 32
Slide 33: Creating long-term shareholder value
Creating long-term shareholder value Capital distribution Total dividend per share GEL millions GEL CAGR: +33.2% Target: 30-50% dividend and buyback payout ratio PAYOUT RATIO*: 35% 37% 37% 31% 9.00 7.65 8.00 583 535 522 3.81 181 188 162 An estimate based on a final dividend 257 of GEL 5.62 per share
Slide 34: Get in touch
Get in touch Company information Contact information Social media Lion Finance Group PLC Lion Finance Group PLC Investor LinkedIn: Lion Finance Group PLC 29 Farm Street, London Relations London W1J 5RL United Kingdom Follow us for latest Telephone: +44 203 178 4034 updates, performance Registered un