Lion Finance Group Plc · LSE:BGEO
Lion Finance — Q2 2025 Earnings Presentation
41 slides from Lion Finance's earnings presentation, Aug 20, 2025
Slide 1: Results Call Presentation 2Q25 & 1H25 Performance
RESULTS CALL PRESENTATION 2Q25 & 1H25 Performance 20 August 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: Contents
Contents Macroeconomic highlights 2Q25 & 1H25 Group results Georgian Financial Services Armenian Financial Services Wrap-up 3
Slide 4: The Group delivered a solid performance in 2Q25 and 1H25
The Group delivered a solid performance in 2Q25 and 1H25 Profit ROAE Cost to income Cost of credit risk 2Q25 highlights GEL 513m 27.2% 36.5% 0.5% +19.4% y-o-y 1H25 highlights GEL 1,026m 27.9% 35.8% 0.4% +28.4% y-o-y* Georgian Financial Services (GFS) JSC Bank of Georgia Profit 2Q25 GEL 410m |+7.6% y
Slide 5: Macroeconomic Highlights
Macroeconomic Highlights
Slide 6: Georgia and Armenia maintain strong growth, with further upside potential
Georgia and Armenia maintain strong growth, with further upside potential Real GDP growth, year-on-year GDP per capita in ‘000 US$ 15% Armenia Georgia Peer average Armenia Georgia Central and Eastern Europe average 9.4% 10% 20.0 7.5% 5.5% 5% 5.9% 5.0% 4.5% 16.3 3.2% 2.4% 2.5% 0% 13.3 11.6 11.1 -5% 9
Slide 7: Sustained external inflows underpin growth and support local currency strength
Sustained external inflows underpin growth and support local currency strength 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 revenue Money transfers 6.1 5.4
Slide 8: Non-travel service exports provide an additional resilient source of growth
Non-travel service exports provide an additional resilient source of growth and hard currency inflows Non-travel services exports from Georgia, Non-travel services exports from Armenia, US$ bn. US$ bn. Transport IT Other % of GDP Transport IT Other % of GDP 18.3% 12.8% 13.8% 10.4% 11.2% 11.3% 8.8% 9
Slide 9: GEL and AMD strengthen against USD, supported by sustained inflows
GEL and AMD strengthen against USD, supported by sustained inflows and sound 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) GEL AMD 25% 240 2
Slide 10: Recent inflation upticks in Georgia and Armenia likely to be temporary
Recent inflation upticks in Georgia and Armenia likely to be temporary amid prudent monetary policies and anchored expectations 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-
Slide 11: Central banks are rebuilding reserves on the back of strong external inflows
Central banks are rebuilding reserves on the back of strong external inflows International reserves in Georgia International reserves in Armenia (end of period, US$ bn) (end of period, US$ bn) Net international reserves Gross international reserves Net international reserves Gross international rese
Slide 12: Public sector is deleveraging in Georgia while Armenia balances spending needs
Public sector is deleveraging in Georgia while Armenia is balancing spending needs with fiscal sustainability objectives Government debt in Georgia Government debt in Armenia (end of period, % of GDP) (end of period, % of GDP) Domestic debt External debt Total debt Fiscal deficit as % of GDP Domesti
Slide 13: Robust lending, lower dollarisation, and strong balance sheets in banking sector
Robust lending, lower dollarisation, and strong balance sheets highlight banking sector strength in Georgia and Armenia Bank lending growth on a constant Total bank loan dollarisation Non-performing loans to total gross bank currency basis, y-o-y loans, March-2025 or latest available Lithuania 0.5%
Slide 14: 2Q25 & 1H25 Group Results
2Q25 &1H25 Group Results
Slide 15: Group operating income driven by strong interest income generation
Group operating income driven by strong interest income generation across core businesses All currency data are in GEL m unless otherwise stated Operating income Net interest income +15.8% (GFS: +17.5%; AFS: +16.3%) +32.5% (GFS: +15.8%) +4.7% +9.5% (GFS: +11.4%; AFS: +8.7%) +26.7% (GFS: +11.1%) 1,40
Slide 16: Net interest margin broadly stable
Net interest margin broadly stable Net interest margin (Group) Loan yield, cost of funds, cost of deposits (Group) 6.3% 6.2% 6.3% 12.4% 12.2% 12.2% 12.2% 12.3% 12.4% 12.3% 6.0% 5.9% 6.0% 5.9% 4.8% 4.8% 4.9% 5.0% 5.1% 4.9% 5.1% 4.0% 4.0% 4.0% 4.1% 4.3% 4.1% 4.2% 2Q24 * 3Q24 4Q24 1Q25 2Q25 1H24 1H25 2
Slide 17: Non-interest income growth subdued across the board
Non-interest income growth subdued across the board All currency data are in GEL m unless otherwise stated Net fee & commission income Net foreign currency gain +1.3% (GFS: +3.8%; AFS: -17.7%) +12.5% (GFS: +4.9%) +0.5% (GFS: -7.9%; AFS: -1.9%) +23.0% (GFS: -3.7%) +10.5% +4.8% 298 291 258 242 52 7 2
Slide 18: Operating expenses impacted by few significant items at GFS
Operating expenses impacted by few significant items at GFS All currency data are in GEL m unless otherwise stated Operating expenses Cost to income ratio +12.1% (GFS: +15.7%; AFS: +3.1%) +37.2% (GFS: +16.9%) +10.5% 722 53 52.7% 48.9% 48.6% 50.0% 53.4% 47.2% 49.3% 526 248 41 35.6% 34.8% 35.9% 35.0%
Slide 19: 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 +22.5% in cc +14.7% in cc +6.5% in cc +2.4% in cc 36,530 +37.6% +26.1% 34,137 33,969 34,790 33,559 882 y-o-y in cc 31,872 33,202 y-o-y in cc 30,082 31,0
Slide 20: 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 1.1% 0.8% 63.7% 71.4% 63.0% 59.3% 63.5% 0.5% 0.5% 0.4% 0.2% 0.4% 0.2% 0.4% NPL coverage adjusted for the discounte
Slide 21: Maintaining robust profitability
Maintaining robust profitability All currency data are in GEL m unless otherwise stated Profit (Group)* ROAE (Group)* +19.4% (GFS: +7.6%; AFS: +197.3%**) +28.4% (GFS: +8.5%) +0.0% 32.1% 29.6% 28.7% 1,026 28.0% 27.2% 28.4% 27.9% 20 191 799 17 2Q24 3Q24 4Q24 1Q25 2Q25 1H24 1H25 30 509 505 513 513 430
Slide 22: Georgian Financial Services (GFS)
Georgian Financial Services (GFS) 22
Slide 23: GFS highlights 2Q25
GFS highlights 2Q25 Profit ROAE GEL 409.9m 31.1% +7.6% y-o-y Loan book growth Deposit growth +17.0% in cc +10.9% in cc Retail MAC Retail Digital MAU 2.1m 1.7m +9.5% y-o-y +15.5% y-o-y
Slide 24: 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 25: 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 2,077 +9.5% 2,002 2,038 1,898 1,948 y-o-y +16.1% 1,645 1,696 122 1,594 +15.5% 116 115 y-o-y 1,4
Slide 26: Focusing on increasing product sales in retail digital channels
Focusing on increasing product sales in retail digital channels Figures given for JSC Bank of Georgia standalone Share of products sold digitally (Retail) Digital sales count: loans and deposits in 2Q25 (Retail) Gamification campaign effect 70% 69% 67% Loans 86%|+5.6 ppts y-o-y 14% 62% 57% 57% 58% 4
Slide 27: Maintaining record high customer satisfaction thanks to our customer-centric culture
Maintaining record high customer satisfaction thanks to our customer-centric culture Figures given for JSC Bank of Georgia standalone NPS* 73 73 71 67 Engaging with customers proactively and responding in real time 61 61 60 58 58 59 59 Anticipating customer needs, wants, and future behavior 55 54 52
Slide 28: 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 +27.7% +14.3% +13.4% +2.8% 5,988 5,627 5,312 5,280 1,529 4,687 1,487 1,451 2,536 2,338 2,009 2,328 1,376 1,
Slide 29: Georgian Financial Services – strong loan and deposit portfolio growth
Georgian Financial Services – strong loan and deposit portfolio growth All currency data are in GEL m unless otherwise stated Loan portfolio Deposit portfolio +16.8% +10.2% +17.0% +5.2% +10.9% +0.6% +4.7% +0.5% 25,307 23,539 24,049 24,980 22,444 Growth on a 24,080 24,052 24,821 21,659 22,660 constan
Slide 30: Strong capital and liquidity position at Bank of Georgia
Strong capital and liquidity position at Bank of Georgia As at 30 June 2025 Capital position Liquidity position 21.8% 20.4% 1.7% 17.3% 3.1% 2.2% NBG Liquidity NBG Net stable 20.1% coverage ratio funding ratio 15.1% 17.3% 125.9% 127.4% CET1 Tier1 Total Min Requirement Buffer Above Minimum 30
Slide 31: Armenian Financial Services (AFS)
Armenian Financial Services (AFS) 31
Slide 32: AFS highlights 2Q25
AFS highlights 2Q25 Profit ROAE GEL 95.8m 20.1% +197.3% y-o-y* Loan book growth Deposit growth +37.6% in cc +26.1% in cc Retail MAC Retail Digital MAU 408k 267k +35.8% y-o-y +54.5% y-o-y *AFS's 2Q25 profit grew by 197.3% vs. 2Q24 profit before one-offs, primarily due to a significant ‘Day-2’ initial
Slide 33: Ameriabank is seeing continued growth in its digital offerings
Ameriabank is seeing continued growth in its digital offerings MyAmeria – app for retail customers MyAmeria Star – retail app for kids Daily banking Daily banking Transfers (by phone, account number); P2P Mobile phone top-up; Money instant transfers; Bill payments; request; Video game QR payments. r
Slide 34: Digital momentum is fuelling growth potential
Digital momentum is fuelling growth potential Monthly active customers (individuals) Digital engagement of active customers thousands (individuals) 408 +35.8% 372 y-o-y 357 65% 66% 65% 300 312 60% 57% 267 +54.5% 245 y-o-y 232 188 173 42% 41% 43% 42% 41% 100 102 110 +52.2% 72 78 y-o-y Jun-24 Sep-24 D
Slide 35: Armenian Financial Services – strong loan and deposit portfolio growth
Armenian Financial Services – strong loan and deposit portfolio growth All currency data are in GEL m unless otherwise stated Loan portfolio Deposit portfolio +34.1% +22.3% +37.6% +10.8% +26.1% +6.5% +10.2% +6.4% 10,342 8,380 9,265 9,338 Growth on a 7,949 7,867 7,956 constant 6,851 6,854 7,714 4,343
Slide 36: Ameriabank has a leading position in Armenia with further room for growth
Ameriabank has a leading position in Armenia with further room for growth Loans market share, Jun-25 +1.3 ppts y-o-y 21.1% +0.9 ppts q-o-q Historical market share highlights 18.9% 9.8% 20.9% 21.1% 19.6% 7.8% 19.1% 18.5% 17.6% 17.3% 16.9% 6.8% 16.3% 16.2% Deposits* market share, Jun-25 21.5% Dec-21 D
Slide 37: Robust CET1 capital position with total buffer set to improve
Robust CET1 capital position with total buffer set to improve As at 30 June 2025 Capital position Liquidity position 16.9% 0.1% 14.9% 14.9% 0.8% 2.9% CBA Liquidity CBA Net stable 16.8% coverage ratio funding ratio 14.1% 173.8% 117.2% 12.0% CET1 Tier1 Total Min Requirement Buffer Above Minimum • In J
Slide 38: Wrap-up
Wrap-up
Slide 39: 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 9.0 7.7 8.0 PAYOUT RATIO*: 35% 37% 37% 31% 5.6 5.1 4.9 583 3.8 5.8 535 522 181 2.3 5.1 188 162 3.1 3.4 316 1.5 1.9 257 2021 2022 2023 2024
Slide 40: 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 41: 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