Lion Finance Group Plc · LSE:BGEO
Lion Finance — Q2 2021 Earnings Presentation
33 slides from Lion Finance's earnings presentation, Aug 17, 2021
Slide 1: Results Call Presentation: 2Q21 and 1H21 Financial Results
Click to edit Master title style RESULTS CALL PRESENTATION 2Q21 and 1H21 Financial Results 17 August 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 2Q21 AND 1H21 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’ Source: NCDC, ourworldindata Georgia now has sufficient vaccine supplies (Pfizer, Sinovac, Sinopharm and AstraZeneca). 16 August 2021 The government plans to vaccinate aroun
Slide 5: Strong Economic Growth in 2Q21
Click STRONG to editECONOMIC Master titleGROWTH style IN 2Q21 5 REAL GDP GROWTH EXCEEDING 2019 LEVEL COVID-19 pandemic-related mobility restrictions caused Source: Geostat GDP to contract by 6.2% in 2020 and by 4.5% in 1Q21 Real GDP growth in 1H21: With restrictions gradually eased, recovery gai
Slide 6: 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, G&T Remittances Exports Imports Trade deficit Tourism revenues in 145.4% 2021 as % of 2019 level 150% 150% 120% 120% 90% 90% 70
Slide 7: Fiscal and Monetary Policy
Click to edit FISCAL AND Master title style MONETARY POLICY 7 ANNUAL INFLATION NOMINAL AND REAL EFFECTIVE EXCHANGE RATE Inflation acceleration reflects utility price increases, Source: Geostat (JAN2014=100) Source: NBG higher world commodity prices, along with strong 11.9% 130 130 12% 12% demand 120
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 Our brokerage and investment arm, Galt & 12% Taggart’s revised 2021 growth forecasts upwards to 10% 8.6% from the previous forecast of 7.0%. 8.6% 7.4% 8% 6.4% G
Slide 9: Contents
Click CONTENTS to edit Master title style 9 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 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 RETAIL BANKING c.8.5mln transactions executed in mobile app per month, almost doubled y-o-y 96% of daily tran
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 +19.3% MILLIONS +84.0% +1.0% +18.8% 26.3 787 795 22.2 20.6 760 18.3 14.3 714 25.3 665 19.5 21.2 17.2 13.3 c.8.5mln 1.0 1.1 1.1 0.9 1.0 Jun
Slide 13: Strong Transactions Offloading to Digital Channels
Click to edit STRONG Master title style TRANSACTIONS OFFLOADING TO DIGITAL CHANNELS* 13 NUMBER OF TRANSACTIONS 3,141 MILLIONS Share of 93.2% 93.5% 93.5% 94.2% 96.0% 95.1% 96.1% 95.9% 96.2% digital Express pay terminals transactions +61.5% +0.7% y-o-y 57.7 +0.5% q-o-q 52.5 51.9 51.9 48.3 48.8 48.3 2.
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 2 50 THOUSANDS 42% 44% 50% 38% 35% Georgians living abroad in need of 2 00 New functionality 40% added in mBank 32% daily banki
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 +45.8% +71.9% +45.0% +89.6% 33k+ 64 +32.2% 1,715 +43.2% Multifunctional POS terminals +42.0% y-o-y
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 +28.9% MILLIONS +39.2% +8.1% +25.8% 41 2.5 2.6 38 2.2 2.1 36 1.9 34 32 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 c.82
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: Data-Driven Organisation
Click DATA-DRIVEN to edit Master ORGANISATION title style 19 112 62% 35% Data models running online, covering Automation rate for retail lending Contribution in sales process, powered by different business processes process in 1H21 data-driven models in 1H21 KEY DATA-RELATED INITIATIVES IMPLEMENTED
Slide 20: Contents
Click CONTENTS to edit Master title style 20 COVID-19 PANDEMIC AND MACROECONOMIC HIGHLIGHTS GROUP OVERVIEW AND STRATEGY 2Q21 AND 1H21 RESULTS
Slide 21: 2Q21 Key Results Highlights
Click 2Q21toKEY edit RESULTS Master title HIGHLIGHTS style 21 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
Slide 22: Strong Profitability Notwithstanding the Pandemic
Click to edit STRONG Master title style PROFITABILITY NOTWITHSTANDING THE PANDEMIC 22 OUTSTANDING QUARTERLY PERFORMANCE TRACK RECORD OF STRONG PROFITABILITY Bank of Georgia’s performance has been very strong in 2Q21: Strong balance sheet growth with better than expected levels of 29.4% lending in
Slide 23: Strong Underlying Performance
Click to edit STRONG Master titlePERFORMANCE UNDERLYING style 23 OPERATING INCOME NET NON-INTEREST INCOME GEL MILLIONS +39.8% GEL MILLIONS +24.2% +39.3% +64.8% +10.3% 639 198 335 +17.0% 304 51 514 198 107 31% 107 142 240 91 32% 91 142 28% 16 27 30% 41 65 23 27% 53 65 22 9 19 441 228 23 372 69% 212 6
Slide 24: Net Interest Margin
Click NETto edit Master INTEREST title style MARGIN 24 NET INTEREST MARGIN LOAN YIELD, COST OF FUNDS, COST OF DEPOSITS 4.7% 10.6% 10.4% 10.2% 10.4% 10.4% 4.6% 4.6% 4.5% 4.2% 4.8% 4.8% 4.5% 4.5% 4.5% 3.3% 3.6% 3.5% 3.8% 3.5% 1H20 1H21 2Q20 1Q21 2Q21 1H20 1H21 2Q20 1Q21 2Q21 Loan yield Cost of funds C
Slide 25: Focus on Efficiency and Stringent Cost Control
Click to edit FOCUS ON Master titleAND EFFICIENCY styleSTRINGENT COST CONTROL 25 COST TO INCOME RATIO OPERATING EXPENSES 43.9% GEL MILLIONS 41.1% +8.5% +15.8% 35.9% 36.4% 35.4% 229 211 2 +13.5% 2 45 43 122 105 107 0 54 1 1 22 50 1H20 1H21 2Q20 1Q21 2Q21 21 23 30 Continued investment in IT-related
Slide 26: Resilient Loan Portfolio Quality
Click to edit LOAN RESILIENT Master title styleQUALITY PORTFOLIO 26 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% 73.1% 1Q20 proved to be sufficient NPL coverage adjusted for collateral value 3.5% 130.6% 129
Slide 27: Strong Loan and Deposit Portfolio Growth
Click to edit STRONG Master LOAN ANDtitle stylePORTFOLIO GROWTH DEPOSIT 27 LOAN PORTFOLIO DEPOSIT PORTFOLIO GEL MILLIONS GEL MILLIONS +4.2% -0.5% +7.2% +17.4% +1.9% +20.4% +13.7% +17.4% 14,192 14,789 14,020 13,944 12,599 11,931 11,583 10,077 9,398 8,351 56% 8,389 59% 8,134 8,500 61% 8,190 59% 6,985
Slide 28: Strong Liquidity and Funding Positions
Click to edit STRONG Master title LIQUIDITY AND style FUNDING POSITIONS 28 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% 136.8% 118.4% 132.5% 115.5% 124.5% 120.1% 106.1% 103.2% 10
Slide 29: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 29 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% 18.1% 17.6% supervisory plan as a response to the COVID-19 pandemic, the NBG 17.4% 17
Slide 30: Capital Ratios Evolution and Update on Minimum Capital Requirements
CAPITAL RATIOS EVOLUTION AND UPDATE ON MINIMUM Click to edit Master title style 30 CAPITAL REQUIREMENTS CAPITAL RATIOS EVOLUTION DURING 1H21 Capital Tier 2 Capital Potential impact 1H21 Business GEL ratios facility ratios of 10% GEL profit growth appreciation DEC-20 impact JUN-21 devaluation CET1 ca
Slide 31: Strong Capital Adequacy Position
Click to edit STRONG MasterADEQUACY CAPITAL title style POSITION 31 BOG EQUITY VS. CET1 REG. CAPITAL | JUN-21 RISK WEIGHTED ASSETS GEL MILLIONS GEL MILLIONS +17.7% % of RWAs 12.5% 1.8% 0.7% 1.6% +0.5% 268 2,761 16,516 16,599 16,040 304 116 15,162 14,099 2,074 2.5% NBG Loan IP Other BOG Jun-20 Sep-20
Slide 32: Track Record of Delivering Strong Results
Click to edit TRACK Master RECORD OFtitle style STRONG RESULTS DELIVERING 32 Revised medium-term loan book growth target from c.15% to c.10% Nominal Constant currency basis 25.2% 26.4% 26.1% 25.6% 27.0% 21.4% 18.9% ROAE 13.0% Loan book growth YoY 17.4% 17.4% 20%+ c.10% 15.9% 19.0% 22.0% 10.2% 13.7%
Slide 33: Thank You
Click to edit Master title style 33 THANK YOU