Slide 1: Results Call Presentation: 4Q24 & FY24 Performance
RESULTS CALL PRESENTATION 4Q24 & FY24 Performance Unaudited Consolidated Results 25 February 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 37.3 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) economies in EMEA 71% Total assets: GEL 13.4 bn 26% L
Slide 4: The Group hit record profit in FY24, driven by robust performance across its core business divisions
The Group hit record profit in FY24, driven by robust performance across its core business divisions Profit (adjusted)* ROAE (adjusted)* Cost to income Cost of credit risk Group (consolidated) GEL 1.8Bn 30.0% 34.3% 0.5% FY24 highlights +31.9% y-o-y Georgian Financial Services (GFS) FY24 operating in
Slide 5: Contents
Contents MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q24 AND FY24 RESULTS 5
Slide 6: Georgian and Armenian economies are expected to sustain steady growth rates
Georgian and Armenian economies are expected to sustain steady growth rates, with ample room for expansion Real GDP growth, year-on-year Nominal GDP per capita, US$ ‘000 Armenia Georgia Armenia Georgia Central and Eastern Europe 15% 17.0 16.2 9.5% 10% 14.8 14.0 5% 5.9% 5.0% 12.4 4.9% 12.0 11.0 11.1
Slide 7: Resilient external sector inflows support growth and underpin local currency stability
Resilient external sector inflows support growth and underpin local 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 revenues Money transfers Export of goods Tourism
Slide 8: Service exports have become a resilient source of hard currency inflows
Service exports have become a resilient source of hard currency inflows in Georgia and Armenia, enhancing productivity and economic diversification 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
Slide 9: GEL and AMD are supported by sustained FX inflows and prudent macroeconomic management
GEL and AMD are supported by sustained FX inflows, prudent macroeconomic management, and solid economic growth prospects Currency movements vs. US$, GEL and AMD real effective exchange 31 Dec 2023 – 20 Feb 2025 rates, Jan-2014 = 100 GEL AMD 240 2.2% 0.9% 0.0% 234.6 220 -0.8% -1.2% -4.6% -5.0% -5.9%
Slide 10: Inflation remains low in Georgia and Armenia, while central banks diverge in monetary easing
Inflation remains low in Georgia and Armenia, while central banks diverge in the pace of monetary easing Inflation and monetary policy in Georgia Inflation and monetary policy in Armenia Monetary policy rate CPI inflation, year-on-year Monetary policy rate CPI inflation, year-on-year Inflation targe
Slide 11: Prudent monetary and fiscal management is expected to help rebuild policy buffers
Prudent monetary and fiscal management is expected to help rebuild policy buffers in Georgia and Armenia International reserves in Georgia International reserves in Armenia (end of period, US$ bn) (end of period, US$ bn) Net international reserves Gross international reserves Net international reser
Slide 12: Georgian and Armenian banking sectors: robust growth, declining dollarisation, sound balance sheets
The Georgian and Armenian banking sectors are distinguished by robust growth, declining dollarisation and sound balance sheets Bank lending growth on a constant Total bank loan dollarisation Non-performing bank loans to total gross currency basis, y-o-y loans, end-Sep 2024 or latest available Lithua
Slide 13: Contents
Contents MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q24 AND FY24 RESULTS 13
Slide 14: 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 15: 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 16: Our customers have become more digital and engaged
Our customers have become more digital and engaged Figures given for JSC Bank of Georgia standalone Monthly active customers (individuals) Monthly active customers (businesses) thousands thousands 1,948 2,002 +10.7% 116 +18.9% 1,836 1,898 y-o-y 110 y-o-y 1,809 105 98 100 1,594 93 1,469 1,521 87 1,35
Slide 17: 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 4Q24 (Retail) Gamification campaign effect 70% 62% Loans * 84% 16% 57% 57% 58% 47% 45% 44% 43% Deposit
Slide 18: 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 +26.3% +16.2% +5.9% +5.5% 5,627 1,451 5,312 4,687 4,455 1,376 4,002 2,009 2,338 1,337 1,648 1,782 1,503 1,2
Slide 19: Maintaining high levels of customer satisfaction
Maintaining high levels of customer satisfaction Figures given for JSC Bank of Georgia standalone NPS* 71 67 Engaging with customers proactively and responding in real 61 61 60 59 59 time 58 58 55 54 Anticipating customer needs, wants, and future behavior 52 49 46 47 Harnessing strong human relation
Slide 20: Digitalisation momentum at Ameriabank underpins huge upside potential
Digitalisation momentum at Ameriabank underpins huge upside potential Monthly active customers (individuals) Digital engagement of active customers thousands 357 +22.4% y-o-y 312 292 296 300 65% 60% 57% 54% 232 51% +54.4% 188 y-o-y 173 150 160 43% 41% 42% 41% 43% 100 78 +56.6% 64 66 72 y-o-y Dec-23
Slide 21: Contents
Contents MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 4Q24 AND FY24 RESULTS 21
Slide 22: Strong y-o-y growth enhanced by the consolidation of Ameriabank
Strong y-o-y growth enhanced by the consolidation of Ameriabank All currency data are in GEL m unless otherwise stated Operating income* Net interest income +57.0% +40.8% +55.2% +46.1% +10.1% +3.5% 2,361 56 3,563 1,615 507 130 55 729 618 641 664 1,798 428 438 15 13 13 1,561 2,530 165 162 180 15 15 1
Slide 23: Robust y-o-y Group performance in net non-interest income
Robust y-o-y Group performance in net non-interest income All currency data are in GEL m unless otherwise stated Net fee & commission income Net foreign currency gain +48.2% +29.3% +81.3% +56.4% +26.1% +15.2% 572 562 57 6 90 434 128 6 366 43 169 428 466 176 151 152 153 387 1 134 2 18 323 114 108 2 4
Slide 24: Investing in growth, while maintaining the focus on efficiency
Investing in growth, while maintaining the focus on efficiency All currency data are in GEL m unless otherwise stated Operating expenses Cost to income ratio* +64.6% +62.2% +13.5% 1,223 85 52.7% 48.9% 49.7% 47.2% 363 754 34.3% 35.6% 34.8% 35.9% 34.3% 79 29.2% 29.8% 32.7% 371 28.9% 28.7% 30.0% 27.8%
Slide 25: Strong loan and deposit growth dynamics in core geographies
Strong loan and deposit growth dynamics in core geographies All currency data are in GEL m unless otherwise stated Loan portfolio Deposit portfolio +65.9% +61.8% +8.0% +4.2% 33,559 31,872 33,202 30,082 31,059 755 30,706 1,201 27,699 659 28,331 1,196 938 708 706 9,265 1,064 6,854 7,949 7,714 7,956 +1
Slide 26: Net interest margin slightly down amid higher liquidity maintained in GFS
Net interest margin slightly down amid higher liquidity maintained in GFS Net interest margin (Group)* Loan yield, cost of funds, cost of deposits (Group)* 12.4% 12.4% 12.4% 12.2% 12.2% 12.5% 12.4% 6.3% 6.4% 6.3% 6.2% 6.0% 6.5% 6.3% 4.9% 5.0% 4.8% 4.8% 4.9% 5.0% 4.7% 4.2% 4.2% 4.0% 4.0% 4.0% 4.0% 4.
Slide 27: Robust asset quality supported by strong performance across all business divisions
Robust asset quality supported by strong performance across all business divisions All currency data are in GEL m unless otherwise stated Cost of credit risk ratio (Group)* Loan portfolio quality (Group) NPL coverage*** 1.1% 69.2% 72.3% 63.7% 71.4% 63.0% 0.7% NPL coverage adjusted for the discounted
Slide 28: Strong bottom-line growth and profitability
Strong bottom-line growth and profitability All currency data are in GEL m unless otherwise stated Profit adjusted (Group)* ROAE (Group)* +53.6% +31.9% -0.9% 32.1% 29.6% 29.9% 30.0% 26.7% 27.7% 28.0% 1,813 27 230 1,375 21 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 1,556 509 505 1,354 369 430 6 ROAA (Group)*
Slide 29: Strong capital position at BOG; Ameriabank's capital ratio set to improve
Strong capital position at BOG; Ameriabank’s capital ratio set to improve As at 31 December 2024 22.1% 16.6% 20.5% 0.1% 2.2% 14.4% 14.4% 17.1% 3.5% 0.6% 2.7% 2.2% 16.5% 19.9% 17.0% 13.8% 14.9% 11.7% CET1 Tier1 Total CET1 Tier1 Total Min requirement Buffer above minimum Min Requirement Buffer above m
Slide 30: Strong liquidity positions, well above the 100% minimum requirements
Strong liquidity positions, well above the 100% minimum requirements NBG Liquidity NBG Net stable CBA Liquidity CBA Net stable coverage ratio funding ratio coverage ratio funding ratio 138.6% 130.7% 195.7% 128.8% 31 December 2024 31 December 2024 31 December 2024 31 December 2024 30
Slide 31: 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 8.00 582 535 522 3.81 181 188 162 An estimate based on a final dividend 257 of GEL 5.62 per share
Slide 32: Thank you
Thank you 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 under