Lion Finance Group Plc · LSE:BGEO

Lion Finance — Q2 2022 Earnings Presentation

31 slides from Lion Finance's earnings presentation, Aug 26, 2022

  1. Slide 1: Results Call Presentation: 2Q22 and 1H22 Performance

    Click to edit Master title style RESULTS CALL PRESENTATION 2Q22 and 1H22 Performance 16 August 2022 www.bankofgeorgiagroup.com

  2. Slide 2: Disclaimer – forward-looking statements

    Click to edit–Master Disclaimer forwardtitle style looking 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, capita

  3. Slide 3: Contents

    Click to edit Master title style Contents 3 MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q22 and 1H22 RESULTS

  4. Slide 4: Strong growth momentum in 1H22

    Click to edit Strong Master growth title style momentum in 1H22 4 Real GDP y-o-y growth: preliminary estimate 44.8% 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22E 1H22E Key drivers: -4.1% 28.9% 9.1% 8.8% 10.4% 14.9% 7.2% 10.5%  Continued recovery of tourism revenues, resilient inflows from exports and remitta

  5. Slide 5: Strong external inflows underpinning growth momentum

    Click to edit Strong Master external titleunderpinning inflows style growth momentum 5 Exports of goods Imports of goods Goods exports, US$ m % change y-o-y Goods imports, US$ m % change y-o-y 1,047.0 448.6 600 100% 1,600 60% 500 80% 400 1,100 40% 60% 300 21.2% 40% 600 20% 200 27.9% 100 20% 100 0% 0

  6. Slide 6: Reasonably optimistic economic outlook

    Click to edit Master Reasonably title optimistic style outlook economic 6 Georgia's economic growth forecast 10.4% 9.2% 7.4% 6.4%  Considering stronger-than-expected growth in 4.8% 4.8% 5.0% 4.4% the first half of the year and promising 3.6% preliminary data, Galt & Taggart has revised 3.0% 2.9% 5.

  7. Slide 7: Inflation is high, largely driven by global commodity price pressures

    Click to edit Inflation Master is high, title largely styleby global commodity price pressures driven 7 Monetary policy remains tight to curb inflation pressures 16% 16% Monetary policy rate Annual CPI inflation 14% 5-year 14% Annual May-22 Jun-22 average 12% Headline CPI 6.4% 13.3% 12.8% 12% Core C

  8. Slide 8: GEL supported by sustained FX inflows and tight monetary policy

    Click GELto edit Master supported title style by sustained FX inflows and tight monetary policy 8 Currency movements vs. US$, Jan 2022 – Jul 2022 20.7% 18.0% 12.0% 0.1% -7.9% -8.8% -10.1% -25.4% -25.8%  GEL continues to appreciate on the back of strong external inflows, tight monetary policy and im

  9. Slide 9: Contents

    Click to edit Master title style Contents 9 MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q22 and 1H22 RESULTS

  10. Slide 10: Bank of Georgia Group at a glance

    Click Banktoofedit Master Georgia title Group at style a glance 10 Leader in payments and financial mobile app  52.3% of total volume of POS payment transactions in Georgia executed in BOG’s POS terminals in 2Q22 (vs 48.0% in 2Q21)  Number of monthly active digital users increased from 729k to 959

  11. Slide 11: Strategic focus

    Click to editfocus Strategic Master title style 11

  12. Slide 12: Fulfilling the needs of digitally engaged customers and increasing engagement

    Click to edit Fulfilling theMaster title needs of style digitally and increasing engagement customers 12 MBANK/IBANK* Number of monthly active users** Number of transactions THOUSANDS MILLIONS +31.6% +57.0% +7.5% +17.2% 1,200 80.0% 41.3 959 75.0% 1,000 892 35.4 35.3 853 766 70.0% 800 729 30.2 65.0%

  13. Slide 13: Increasing the share of mBank/iBank transactions

    Click to editthe Increasing Master sharetitle style of mBank/iBank transactions* 13 NUMBER OF TRANSACTIONS MILLIONS Offloading rate 96.2% 96.5% 96.0% 96.6% 96.5% +32.7% +16.6% 76.6 69.6 2.7 65.7 61.7 2.8 11.2 2.2 57.7 2.2 10.2 9.0 2.2 9.7 9.1 21.4 27.9% 21.1 30.3% 19.1 29.0% 19.6 31.7% 20.1 34.7% 53

  14. Slide 14: Good progress in product offloading to digital channels

    Click Goodtoprogress edit Master title style in product offloading to digital channels 14 PRODUCT OFFLOADING* THOUSANDS 450 50.0% 390 400 367 374 45.0%  Continuously developing our digital products 350 and refining end-to-end digital journeys. The 40.0% functionalities of our digital channels are 2

  15. Slide 15: Full digital experience for our business customers

    Click Full to editexperience digital Master title for style our business customers 15 BUSINESS MBANK/IBANK STATISTICS* Number of monthly active users** Number of transactions THOUSANDS MILLIONS +31.7% +39.5% +9.1% +24.8% 47 3.7 41 43 3.3 39 2.9 36 2.8 2.6 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 2Q21 3Q21

  16. Slide 16: Payments our daily touch point with customers

    Click to edit- Master Payments our dailytitle touchstyle point with customers 16 NUMBER OF PAYMENT TRANSACTIONS VOLUME OF PAYMENT TRANSACTIONS MILLIONS GEL MILLIONS +60.5% +63.4% +29.4% +26.4% 58 1,650 1,270 1,386 1,305 42 45 45 36 1,010 2Q21 3Q21 4Q21 1Q22 2Q22 2Q21 3Q21 4Q21 1Q22 2Q22 54.7% 52.3%

  17. Slide 17: Customer satisfaction

    Click to editsatisfaction Customer Master title style 17 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 custome

  18. Slide 18: Contents

    Click to edit Master title style Contents 18 MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q22 and 1H22 RESULTS

  19. Slide 19: 2Q22 and 1H22 financial highlights

    Click 2Q22to and edit1H22 Master title style financial highlights 19 Resilient loan portfolio Outstanding Solid portfolio Robust capital base and Strong top-line quality and focus on profitability growth liquidity position efficiency Operating income Profit Cost of credit risk Loans CET 1 capital ra

  20. Slide 20: Robust underlying performance

    Click to edit Robust Masterperformance underlying title style 20 All currency data are in GEL m unless otherwise stated OPERATING INCOME NET NON-INTEREST INCOME +47.7% +39.5% +100.2% +70.7% +25.0% +71.9% 338 214 8 495 891 7 396 338 379 214 639 348 190 335 126 198 109 124 124 105 198 109 1 107 107 10

  21. Slide 21: Investing in strategic areas and focusing on efficiency

    Click to edit Investing in Master title strategic style areas and focusing on efficiency 21 All currency data are in GEL m unless otherwise stated OPERATING EXPENSES COST TO INCOME RATIO +32.1% +30.6% +16.3% 299 2 161 151 1 52 1 138 229 122 128 28 2 2 39.8% 1 1 25 25 45 71 23 37 36.4% 36.8% 22 35.9%

  22. Slide 22: Solid loan and deposit growth

    Click toloan Solid editand Master title deposit style growth 22 All currency data are in GEL m unless otherwise stated LOAN PORTFOLIO DEPOSIT PORTFOLIO +10.2% +8.3% +17.8% +16.0% +0.1% +4.0% +4.3% +9.1% 15,100 16,169 16,289 16,300 13,944 14,038 14,517 14,789 15,579 13,313 8,820 8,715 8,347 9,243 8,6

  23. Slide 23: Net interest margin broadly stable going forward

    Click Netto edit Master interest margin title stylestable going forward – broadly 23 NET INTEREST MARGIN LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 11.0% 11.1% 11.4% 11.3% 10.4% 10.6% 10.4% 5.3% 5.3% 5.3% 5.0% 5.3% 4.7% 4.8% 5.0% 5.2% 5.1% 4.5% 4.5% 4.7% 4.6% 3.5% 3.6% 3.5% 3.7% 3.7% 3.6% 3.7% 2Q21

  24. Slide 24: Healthy loan portfolio

    Click to edit Healthy loanMaster title style portfolio 24 All currency data are in GEL m unless otherwise stated COST OF CREDIT RISK RATIO LOAN PORTFOLIO QUALITY 0.8% 0.7% NPL coverage 73.1% 90.9% 95.5% 97.3% 89.6% 0.6% NPL coverage adjusted for collateral value 122.2% 140.9% 147.7% 153.0% 138.0% 0.

  25. Slide 25: Strong bottom-line growth and robust profitability

    Click to edit Strong Master growth bottom-line title style and robust profitability 25 All currency data are in GEL m unless otherwise stated PROFIT ROAE +36.3% +14.5% +51.3% 32.8% 31.8% 30.7% 29.4% 25.7% 26.4% 25.6% 275 516 241 341 202 201 185 2Q21 3Q21 4Q21 1Q22 2Q22 1H21 1H22 2Q21 3Q21 4Q21 1Q22

  26. Slide 26: Strong capital position, comfortably above minimum requirements

    Strong capital position, with ratios comfortably above minimum Click to edit Master title style 26 requirements Capital adequacy ratios and minimum requirements 19.2% 19.3% 19.7% 19.8% 19.1% 17.7% 17.7% 17.6% 16.4% 17.5% 17.3% 15.0% 15.4% 14.4% 14.6% 13.7% 14.0% Buffer 12.8% 13.2% 12.5% 14.1% 14.0%

  27. Slide 27: Evolution of capital ratios and update on minimum capital requirements

    Evolution of capital ratios and update on minimum capital Click to edit Master title style 27 requirements EVOLUTION OF CAPITAL RATIOS DURING 2Q22 Capital Potential impact 31 March 2Q22 Business Currency Capital 30 June facility of a 10% GEL 2022 profit growth impact distribution 2022 impact devalua

  28. Slide 28: Strong capital adequacy

    Click to edit Strong Master capital title position adequacy style 28 All currency data are in GEL m unless otherwise stated BOG EQUITY VS. CET1 REGULATORY CAPITAL - RISK-WEIGHTED ASSETS JUN-22 +11.3% % of +0.6% RWAs 14.0% 1.6% 0.7% 1.6% 17.9% 301 3,312 17,978 18,372 18,482 16,599 17,248 288 130 2,59

  29. Slide 29: Strong liquidity and funding positions

    Click to edit Strong Master liquidity and title 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) 136.8% 132.5% 130.7% 130.6% 117.0% 129.7% 115.2% 124.5% 124.0% 112.2% 107.9% 116.2% 10

  30. Slide 30: Track record of strong performance

    Click torecord Track edit Master title of strong style performance 30 31.8% 27.0% 26.4% 26.1% 25.8% 21.4% 18.9% 19.8% Loan book YoY growth 17.8% ROAE 20%+ 22.0% c.10% 13.0% 19.0% 13.9% 10.2% 10.2% 2018 2019 2020 2021 1H22 2018* 2019** 2020 2021 1H22 Nominal Constant currency basis CAPITAL DISTRIBUTI

  31. Slide 31: Thank you

    Click to edit Master title style 31 THANK YOU

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