Half-year Report

About this update from Lion Finance Group Plc

[{"type":"text","content":"\n \n   \n   \n \n \n   \n \n Contents \n 2Q25 and 1H25 results \n Earnings call on 20 August 2025, 14:00 BST \n Segmentation guide \n CEO statement \n Macroeconomic developments: Georgia \n Macroeconomic developments: Armenia \n 2Q25 and 1H25 consolidated results \n Business Division results \n      Georgian Financial Services (GFS) \n      Armenian Financial Services (AFS) \n      Ameriabank: unaudited standalone financial information (not included in the consolidated results) \n      Other businesses \n Consolidated financial information \n Non-financial information \n Additional information \n Principal risks and uncertainties \n Statement of directors' responsibilities \n Interim Condensed Consolidated Financial Statements 35 \n Glossary 6 \n Lion Finance Group PLC profile 9 \n Further information 9 \n Forward-looking statements 9 \n 2Q25 and 1H25 results \n Lion Finance Group PLC announces the Group's consolidated financial results for the second quarter and the first half of 2025. Unless otherwise noted, numbers in this announcement are given for 2Q25 and 1H25 and the year-on-year comparisons are with adjusted figures of 2Q24 and 1H24. \n The results have been prepared in accordance with International Accounting Standard 34 \"Interim Financial Reporting\" as adopted by the United Kingdom and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority. The results are based on International Financial Reporting Standards (IFRS) as adopted by the United Kingdom, are unaudited and derived from management accounts. \n Earnings call on 20 August 2025, 14:00 BST \n https://zoom.us/j/99166130661?pwd=U5Udgx7N7vj741pk3v7boowaIMfIii.1 \n Webinar ID: 991 6613 0661 \n Passcode: 001789 \n Segmentation guide \n Following the acquisition of Ameriabank at the end of March 2024, the Group's results are presented by the following Business Divisions: 1) Georgian Financial Services (GFS), 2) Armenian Financial Services (AFS), and 3) Other Businesses. \n •  GFS mainly comprises JSC Bank of Georgia and the investment bank JSC Galt and Taggart. \n •  AFS includes Ameriabank CJSC \n \n \n   \n •  Other Businesses includes JSC Belarusky Narodny Bank (BNB), which serves retail and SME clients in Belarus; JSC Digital Area, a digital ecosystem in Georgia including e-commerce, ticketing, and inventory management SaaS; Lion Finance Group PLC, the holding company; and other small entities and intragroup eliminations. \n Lion Finance Group PLC delivers 2Q25 consolidated profit of GEL 513.2m and 1H25 consolidated profit of GEL 1,026.3m, and declares a half-year dividend of GEL 5.10 per share, coupled with a GEL 98 million buyback for the period ended 30 June 2025 \n 2Q25 consolidated profit before one-off items was up 19.4% y-o-y to GEL 513.2 million, with a return on average equity standing at 27.2%. 1H25 consolidated profit before one-off items was up 28.4% y-o-y to GEL 1,026.3 million, with a return on average equity standing at 27.9%. \n Group performance \n \n \n \n \n • \n \n \n Our core Business Divisions continued to demonstrate robust customer franchise growth. On a year-on-year basis, Bank of Georgia's Retail Digital Monthly Active Users (Digital MAU) grew by 15.5% to 1.7m individuals , while Ameriabank's Retail Digital MAU surged by 54.5%, reaching 267 thousand individuals . On a quarter-on-quarter basis, these figures increased by 3.1% and 8.8% at Bank of Georgia and Ameriabank, respectively. \n \n \n \n \n • \n \n \n Bank of Georgia maintained its record-high Net Promoter Score (NPS) of 73 in 2Q25 (71 in 2Q24 and 73 in 1Q25). Ameriabank measures its NPS internally monthly, with the average score for 2Q25 being 75 (77 in 2Q24 and 77 in 1Q25). \n \n \n \n \n • \n \n \n Loan book reached GEL 36,530.4m as at 30 June 2025, up 22.5% y-o-y in constant currency (cc). The growth was fuelled by strong loan book expansion across both Georgian (GFS) (a 17.0% y-o-y cc increase) and Armenian (AFS) operations (a 37.6% y-o-y cc increase). Compared with 31 March 2025, GFS loan book was up 4.7%, while that of AFS increased by 10.2%, resulting in Group loan growth of 6.5% (in cc).  \n \n \n \n \n • \n \n \n Client deposits and notes totaled GEL 34,789.7m as at 30 June 2025, reflecting a 14.7% y-o-y increase in cc . GFS deposits rose by 10.9% y-o-y, while AFS deposits increased by 26.1% y-o-y. Compared with 31 March 2025, GFS deposits were up 0.5%, while those of AFS increased by 6.4%, resulting in Group deposit growth of 2.4% (in cc).  \n \n \n \n \n • \n \n \n Asset quality remained strong across the Group, with Group cost of credit risk ratio at 0.5% in 2Q25 and the NPL ratio down to 1.9% as at 30 June 2025 . Cost of credit risk was down significantly y-o-y as 2Q24 included a GEL 49.2m initial (\"Day-2\") ECL charge related to the Ameriabank acquisition (we were required to treat the acquired portfolio as if it were a new loan issuance, thus necessitating a forward-looking ECL charge on Day 2 of the combination although portfolio quality was not deteriorated).   \n \n \n \n \n • \n \n \n In 2Q25, operating income was up 9.5% y-o-y and up 6.2% q-o-q to GEL 1,039.1m . The annual top-line growth was primarily driven by higher net interest income generated by both GFS and AFS. On a q-o-q basis, the increase in operating income was broad-based, with both net interest income and non-interest income contributing. \n \n \n \n \n \n \n \n • \n \n \n Non-interest income was reduced y-o-y at both GFS and AFS. At GFS, the small decline in non-interest income was largely driven by increased competition in fees and FX as well as a significant item in 2Q24 that elevated the base in net fees. At AFS, the lower net fee and commission income due to a significant GEL 9.8 million advisory fee posted in 2Q24 was the main driver of reduced non-interest income.    \n \n \n \n \n • \n \n \n The Group's operating expenses increased by 12.1% y-o-y to GEL 378.8m in 2Q25. The y-o-y growth was mainly driven by GFS, mainly due to increased salaries and other employee benefits. This increase included an elevated first-year expense for the Chief Executive's new three-year contract, approved at the 2025 AGM, as well as accelerated compensation cost resulting from a senior manager's contract termination (GEL 2.4m). In addition, Bank of Georgia's contributions to the resolution fund [1] in the amount of GEL 4.4m were posted this quarter. Excluding the GEL 6.8 million impact of the termination and resolution fund expenses, the Group's operating expenses would have increased by 10.1% y-o-y. \n \n \n \n \n • \n \n \n As at 30 June 2025, Bank of Georgia's CET 1, Tier 1 and Total capital ratios stood at 17.3%, 20.4%, and 21.8%, respectively, comfortably above the minimum requirements of 15.1%, 17.3%, and 20.1%, respectively. Ameriabank's CET 1, Tier 1 and Total capital ratios stood at 14.9%, 14.9%, and 16.9% respectively, above the minimum requirements of 12.0%, 14.1%, and 16.8% respectively. In July, Ameriabank's total capital buffer increased to 0.3 ppts driven by the recognition of subordinated debt in capital (see details on page 15). \n \n \n \n \n CEO statement \n We are pleased to announce another set of solid results, reflecting continued strength of our customer franchise and strong loan growth across our core operations in Georgia and Armenia. Profit before one-offs rose 19.4% year-on-year to GEL 513.2 million in 2Q25, bringing the cumulative half-year profit to just over GEL 1.0 billion - up 28.4% compared to the profit before one-offs in the first half of 2024. Book value per share increased to GEL 176.81, up 25.3% year-on-year. Profitability remained robust, with an ROAE of 27.2% for the second quarter and 27.9% for the first half of 2025.   \n Our core markets, Georgia and Armenia, have demonstrated stronger-than-expected growth and resilience. In 2Q25, preliminary data from respective national statistics offices show Georgia's economy grew 7.1% year-on-year, driven by strong external inflows and robust domestic demand, while Armenia recorded an average growth of 8.1%, largely driven by domestic demand. We have revised our full-year real GDP growth forecasts for both countries - to 7.5% for Georgia (up from 6.8%) and to 5.0% for Armenia (up from 4.5%). In Georgia, strong inflows enabled the National Bank to purchase over USD 1 billion in the first seven months of 2025, lifting international reserves to USD 5 billion, while the government continued to reduce its foreign-currency debt. Alongside solid economic fundamentals, the recent historic signing of the Armenia-Azerbaijan peace framework is a positive sign, which could stimulate new regional investments and development, boosting the overall economic outlook. We expect this to provide an additional tailwind for our operations. \n In Georgia, we continue to deliver on our strategic objectives, expanding retail monthly active digital users (up 15.5% year-on-year), increasing retail digital sales to 69% of total retail product sales (up 12 ppts year-on-year), posting strong balance sheet growth (loans up 17.0% year-on-year in constant currency), and sustaining a high profitability (ROAE at 31.1% in 2Q25 and 31.6% in 1H25). As we continued to deploy excess liquidity, we saw a 20 basis points uplift in the net interest margin in the second quarter, and moving forward, we project margin stability, with potential for a slight upside. Strong loan book growth in Georgia fuelled net interest income generation, which was the main contributor to the 11% top-line growth at GFS in the year-on-year perspective for the last two quarters. The flat non-interest income at GFS was largely driven by heightened competition in fees and FX as well as a significant item in 2Q24 that elevated the base in net fees. Consequently, we expect lower growth in net fees and FX for the rest of the year (net fee income year-on-year growth in single digits in 3Q25 and low double-digits in 4Q25, with FX remaining largely flat in the year-on-year perspective). Efficiency remains an ongoing focus, and we expect the operating leverage for GFS to improve in the coming quarters. The cost of credit risk of 0.7%, although higher than in the last few quarters, still indicates a very healthy loan portfolio. \n We are seeing very promising results from our Armenian operations as we steadily develop our retail franchise and enhance digital offerings - a core strategic priority. Over the past year, we attracted 94 thousand new monthly active digital retail customers, reaching a total of 267 thousand individuals by the end of the second quarter. From a financial performance perspective, key highlights include the above-market 37.6% year-on-year constant currency growth of the loan book - a broad-based expansion with even higher growth in retail - which supported net interest income generation, and the maintenance of strong asset quality. Our CET 1 capital is strong in Armenia, and we anticipate the introduction of a regulatory framework for Tier 1 instruments in the coming months, which will enable us to issue additional Tier 1 instruments and optimise capital. Armenian Financial Services generated a profit before one-offs of GEL 95.8 million in the second quarter, a 197.3% year-on-year increase given the significant \"Day-2\" ECL charge last year related to the acquisition. Excluding this charge, the underlying bottom-line growth is solid at 17.7%. \n Considering our strong capital generation and high profitability, the Board has declared a half-year dividend of GEL 5.10 per ordinary share and has also approved a share buyback and cancellation programme in the amount of GEL 98.0 million. The Board has taken the decision to move to a quarterly, more consistent schedule of distributions, with our target payout range of 30-50% of annual profits unchanged. We remain committed and well-positioned to continue delivering strong growth and profitability in our core markets and delivering value to our shareholders in the coming quarters. \n I want to thank our employees across different countries for their dedication to the success of our customers and, by extension, the success of the entire Group. \n Archil Gachechiladze \n CEO, Lion Finance Group PLC \n 19 August 2025 \n Our key targets for the medium term remain: \n \n \n \n \n • \n \n \n c.15% annual growth of the Group's loan book . \n \n \n \n \n • \n \n \n 20%+ return on average equity . \n \n \n \n \n • \n \n \n 30-50% payout ratio (dividends and share buyback and cancellation programme) . \n \n \n \n \n Macroeconomic developments: Georgia \n Sustained economic growth momentum \n Economic growth remained strong in 2Q25, with preliminary data showing real GDP expanding by 7.1% y-o-y. Economic activity remained broad-based, with significant contributions from information and communications, transport and storage, and financial services. Reflecting this sustained strength of the economy, we have revised full-year real GDP growth forecast for 2025 to 7.5% (up from 6.8%). While downside risks persist - including global trade tensions, regional geopolitical instability, and domestic political strains - Georgia's demonstrated resilience and sound macroeconomic policies are expected to mitigate these challenges, supporting continued growth throughout the year. \n Robust external sector \n External sector inflows continued to demonstrate solid performance and resilience, bolstered by diverse income sources. In 2Q25, merchandise export growth accelerated to 20.9% y-o-y, mainly driven by car re-exports. Meanwhile, goods imports slowed, increasing by only 0.8% y-o-y, which contributed to a reduced trade deficit. During the same period, tourism revenues rose by 5.0% y-o-y, supported by a 7.0% y-o-y increase in international visitors. Money transfers also increased by 10.0% y-o-y, reflecting strong remittance inflows from the US and EU. \n Near-target inflation and prudent monetary policy \n Inflation continued to rise in 2Q25, primarily due to higher food and healthcare prices, partially offset by declines in transport and communication service costs. Headline CPI inflation reached 4.0% y-o-y in June 2025, exceeding the National Bank of Georgia's (NBG) 3% target. Inflation is expected to remain above target in the near term, owing to a low base effect from the previous year, but is projected to return to target in 2026. The NBG has maintained its refinancing rate at 8.0% since May 2024, preserving a cautious policy stance amid global trade tensions and strong domestic demand. We expect the refinancing rate to remain unchanged through the rest of 2025. \n Strong fiscal discipline \n Consolidated budget tax revenues increased by 9.6% y-o-y in 2Q25, leading to a 0.9% overperformance in the first half of the year. The government remains committed to fiscal consolidation, targeting a fiscal deficit of 2.5% of GDP in 2025, following 2.4% in 2024. The government-debt-to-GDP ratio is projected to decline further to 35.5% in 2025, thereby enhancing fiscal space to accommodate potential future spending needs. \n Healthy bank lending \n Bank lending remained robust and aligned with economic growth in 2Q25, expanding by 15.6% y-o-y on a constant currency basis (following the 16.6% y-o-y growth in the previous quarter). Loan dollarisation stood at 43.1% at the end of June 2025, unchanged from the previous quarter, while deposit dollarisation declined to 49.7% (down 3.1 ppts q-o-q). The banking sector's credit portfolio remained healthy, with the non-performing loans (NPL) ratio at 1.6% of total gross loans as of end-April 2025, according to the IMF. \n Continued GEL appreciation and reserve accumulation \n The Georgian Lari (GEL) appreciated by 3.6% against the US dollar in the first seven months of 2025, while depreciating by 6.6% against the Euro and 2.3% against the British Pound over the same period. Early-year gains against the USD were largely driven by global dollar weakness, but in recent months the GEL has also appreciated against other currencies, supported by resilient external inflows and prudent macroeconomic policies. This favourable backdrop has enabled the NBG to purchase over USD 1 billion since the beginning of the year, bringing international reserves to USD 5 billion as of end-July. We expect the GEL to remain stable over the medium term, underpinned by solid macroeconomic fundamentals. \n More information on the Georgian economy and financial sector can be found at Galt & Taggart , the Group's investment banking and brokerage subsidiary . \n To address top questions raised by our investors on Georgian macro and the banking sector, we have recently published a Q&A document, which can be found at Top Questions & Answers on Georgian Macro . \n \n \n   \n Macroeconomic developments: Armenia \n Robust economic growth \n Economic activity remained strong in 2Q25, despite normalisation of external demand. Growth has been supported by expansionary fiscal policy, strong credit expansion, and eased monetary conditions. The preliminary indicator of economic activity rose by 8.1% y-o-y in 2Q25, following a 4.1% increase in the previous quarter. Given the stronger-than-expected performance in the first half of the year, we have revised our full-year real GDP growth projection for 2025 to 5.0%, up from 4.5%. We expect slowing external demand to be offset by robust domestic spending, supported by ongoing fiscal expansion and healthy credit growth. The recent Armenia-Azerbaijan peace framework signed in Washington, DC, marks a significant step toward normalising bilateral relations and unlocking strategic economic opportunities. Yet, persistent geopolitical tensions in the wider region continue to pose downside risks, while prudent macroeconomic policies continue to underpin Armenia's economic resilience. \n Continued normalisation of external demand and strong Dram \n External trade turnover continued to normalise in 2Q25, following a temporary surge in re-exports of precious metals and stones in 2024. Goods exports declined by 41.4% y-o-y (+19.5% q-o-q), while imports contracted by 28.0% y-o-y (+10.2% q-o-q). In contrast, non-commercial money transfers strengthened significantly, rising by 16.7% y-o-y in 2Q25, compared to a 2.1% y-o-y increase in the previous quarter. This resilience of external inflows, combined with the broad-based weakening of the US dollar, contributed to a 3.2% appreciation of the Armenian Dram (AMD) against the US dollar in the first seven months of 2025, building on a 2.0% gain in 2024. During the same period, the AMD remained broadly stable against the GEL, depreciating by just 0.5% after a 6.5% appreciation in 2024.   \n Near-target inflation and neutral monetary policy \n In 2Q25, inflation continued to rise, primarily driven by higher food prices and increases in regulated education tariffs. Headline CPI inflation reached 3.9% y-o-y in June 2025, above the Central Bank of Armenia's (CBA) 3% target. Looking ahead, inflation is expected to remain close to target, as food price pressures are likely to be offset by an anticipated easing in aggregate demand and an appreciating local currency. The CBA has kept the refinancing rate at 6.75% since February 2025, signalling the conclusion of its earlier easing cycle. We expect the refinancing rate to hold steady for the remainder of 2025. \n Continued fiscal expansion \n Fiscal policy is set to remain expansionary in 2025, driven by increased spending on national security, public infrastructure, and social support programmes. Consequently, the fiscal deficit is projected to widen to 5.5% of GDP this year, up from 3.8% in 2024, resulting in an increase in government debt to 52.4% of GDP (vs. 48.0% in 2024). While this fiscal expansion supports economic growth, it may pose risks to inflation and public debt sustainability. These risks are, however, mitigated by the government's demonstrated fiscal discipline and the ongoing IMF stand-by arrangements. \n Sound banking sector \n Armenia's banking sector remains highly profitable, with strong capital and liquidity buffers. Bank lending grew by an estimated 29.4% y-o-y in 2Q25 on a constant currency basis, following the 30.2% y-o-y growth in the previous quarter. This strong credit expansion reflects the anticipated phaseout of the mortgage income tax refund programme and is expected to gradually normalise in the coming periods. Loan dollarisation remained broadly stable at 33.8% as of end-June 2025, following significant declines in prior years. Meanwhile, deposit dollarisation continued its downward trend, reaching 46.3%, down 1.2 ppts q-o-q. \n \n \n   \n 2Q25 and 1H25 consolidated results \n Following the acquisition of Ameriabank at the end of March 2024, its income statement has been consolidated from 1 April 2024. Thus, half-year comparisons are not fully representative of the underlying performance, as they include only one quarter of Ameriabank's results. \n \n \n \n \n GEL thousands \n \n \n 1H25 \n \n \n 1H25 \n \n \n 1H25 \n \n \n 1H25 \n \n \n   \n \n \n 1H24 \n \n \n 1H24 \n \n \n 1H24 \n \n \n 1H24 \n \n \n \n \n INCOME STATEMENT HIGHLIGHTS \n \n \n Group \n \n \n GFS \n \n \n AFS \n \n \n Other \n \n \n   \n \n \n Group [2] \n \n \n GFS \n \n \n AFS 2 \n \n \n Other \n \n \n \n \n Interest income  \n \n \n  2,536,548 \n \n \n 1,859,625 \n \n \n  624,307 \n \n \n  52,616 \n \n \n \n \n \n 1,838,194 \n \n \n 1,543,926 \n \n \n  253,162 \n \n \n  41,106 \n \n \n \n \n Interest expense  \n \n \n (1,137,002) \n \n \n (863,294) \n \n \n (241,450) \n \n \n (32,258) \n \n \n \n \n \n (782,039) \n \n \n (683,420) \n \n \n  (87,779) \n \n \n (10,840) \n \n \n \n \n Net interest income  \n \n \n  1,399,546 \n \n \n  996,331 \n \n \n  382,857 \n \n \n  20,358 \n \n \n   \n \n \n 1,056,155 \n \n \n  860,506 \n \n \n  165,383 \n \n \n   30,266 \n \n \n \n \n Net fee and commission income  \n \n \n  290,687 \n \n \n  239,020 \n \n \n  44,392 \n \n \n  7,275 \n \n \n \n \n \n  258,464 \n \n \n  227,804 \n \n \n  29,037 \n \n \n  1,623 \n \n \n \n \n Net foreign currency gain \n \n \n  298,191 \n \n \n  174,051 \n \n \n  71,870 \n \n \n  52,270 \n \n \n \n \n \n  242,426 \n \n \n  180,807 \n \n \n  38,576 \n \n \n  23,043 \n \n \n \n \n Net other income \n \n \n  29,362 \n \n \n  21,965 \n \n \n  3,530 \n \n \n  3,867 \n \n \n \n \n \n  35,905 \n \n \n  19,479 \n \n \n  1,063 \n \n \n  15,363 \n \n \n \n \n Operating income \n \n \n  2,017,786 \n \n \n 1,431,367 \n \n \n  502,649 \n \n \n   83,770 \n \n \n   \n \n \n 1,592,950 \n \n \n 1,288,596 \n \n \n  234,059 \n \n \n   70,295 \n \n \n \n \n Salaries and other employee benefits \n \n \n  (453,104) \n \n \n (245,938) \n \n \n (177,372) \n \n \n (29,794) \n \n \n \n \n \n (323,463) \n \n \n (207,015) \n \n \n  (95,353) \n \n \n (21,095) \n \n \n \n \n Administrative expenses \n \n \n  (147,025) \n \n \n  (92,746) \n \n \n  (37,234) \n \n \n (17,045) \n \n \n \n \n \n (118,627) \n \n \n  (91,352) \n \n \n  (13,450) \n \n \n (13,825) \n \n \n \n \n Depreciation, amortisation and impairment \n \n \n  (105,260) \n \n \n (69,398) \n \n \n  (29,958) \n \n \n (5,904) \n \n \n \n \n \n  (78,553) \n \n \n  (58,738) \n \n \n  (14,618) \n \n \n  (5,197) \n \n \n \n \n Other operating expenses  \n \n \n  (16,300) \n \n \n  (12,581) \n \n \n  (3,044) \n \n \n  (675) \n \n \n \n \n \n  (5,216) \n \n \n  (2,863) \n \n \n  (1,676) \n \n \n  (677) \n \n \n \n \n Operating expenses  \n \n \n  (721,689) \n \n \n (420,663) \n \n \n (247,608) \n \n \n (53,418) \n \n \n   \n \n \n (525,859) \n \n \n (359,968) \n \n \n (125,097) \n \n \n (40,794) \n \n \n \n \n Profit from associates \n \n \n  736 \n \n \n  736 \n \n \n  -   \n \n \n  -   \n \n \n \n \n \n  476 \n \n \n  589 \n \n \n  -   \n \n \n  (113) \n \n \n \n \n Operating income before cost of risk (2024: adjusted) \n \n \n  1,296,833 \n \n \n 1,011,440 \n \n \n  255,041 \n \n \n   30,352 \n \n \n   \n \n \n 1,067,567* \n \n \n  929,217 \n \n \n  108,962 * \n \n \n   29,388 \n \n \n \n \n Cost of risk  \n \n \n  (77,709) \n \n \n  (63,838) \n \n \n  (13,940) \n \n \n  69 \n \n \n \n \n \n (110,895) \n \n \n  (48,093) \n \n \n  (56,091) \n \n \n  (6,711) \n \n \n \n \n     Out of which initial ECL related to assets acquired in business combination [3] \n \n \n  -   \n \n \n - \n \n \n - \n \n \n - \n \n \n   \n \n \n  (49,157) \n \n \n  -   \n \n \n  (49,157) \n \n \n  -   \n \n \n \n \n Profit before income tax expense (2024: adjusted) \n \n \n  1,219,124 \n \n \n  947,602 \n \n \n  241,101 \n \n \n  30,421 \n \n \n   \n \n \n   956,672* \n \n \n  881,124 \n \n \n  52,871 * \n \n \n  22,677 \n \n \n \n \n Income tax expense \n \n \n  (192,813) \n \n \n (132,683) \n \n \n   (49,796) \n \n \n (10,334) \n \n \n \n \n \n (157,617) \n \n \n (129,883) \n \n \n   (22,409) \n \n \n (5,325)   \n \n \n \n \n Profit before one-off items \n \n \n   1,026,311 \n \n \n  814,919 \n \n \n  191,305 \n \n \n  20,087 \n \n \n   \n \n \n   799,055* \n \n \n  751,241 \n \n \n  30,462 * \n \n \n  17,352 \n \n \n \n \n One-off items [4] \n \n \n  -   \n \n \n  -   \n \n \n  -   \n \n \n   - \n \n \n \n \n \n  669,465 \n \n \n  -   \n \n \n  669,465 \n \n \n   - \n \n \n \n \n Profit  \n \n \n   1,026,311 \n \n \n  814,919 \n \n \n  191,305 \n \n \n  20,087    \n \n \n   \n \n \n 1,468,520 \n \n \n  751,241 \n \n \n  699,927 \n \n \n  17,352 \n \n \n \n \n   \n \n \n \n \n GEL thousands \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n Change \n y-o-y \n \n \n 1Q25 \n \n \n Change \n q-o-q \n \n \n   \n \n \n 1H25 \n \n \n 1H24 2 \n \n \n Change \n y-o-y \n \n \n \n \n INCOME STATEMENT HIGHLIGHTS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net interest income  \n \n \n  715,845 \n \n \n  618,335 \n \n \n 15.8% \n \n \n  683,701 \n \n \n 4.7% \n \n \n \n \n \n 1,399,546 \n \n \n 1,056,155 \n \n \n 32.5% \n \n \n \n \n Net fee and commission income  \n \n \n  152,615 \n \n \n  150,662 \n \n \n 1.3% \n \n \n  138,072 \n \n \n 10.5% \n \n \n \n \n \n  290,687 \n \n \n  258,464 \n \n \n 12.5% \n \n \n \n \n Net foreign currency gain \n \n \n  152,597 \n \n \n  151,886 \n \n \n 0.5% \n \n \n  145,594 \n \n \n 4.8% \n \n \n \n \n \n  298,191 \n \n \n  242,426 \n \n \n 23.0% \n \n \n \n \n Net other income \n \n \n  18,077 \n \n \n  28,112 \n \n \n -35.7% \n \n \n  11,285 \n \n \n 60.2% \n \n \n \n \n \n  29,362 \n \n \n  35,905 \n \n \n -18.2% \n \n \n \n \n Operating income \n \n \n  1,039,134 \n \n \n  948,995 \n \n \n 9.5% \n \n \n  978,652 \n \n \n 6.2% \n \n \n   \n \n \n 2,017,786 \n \n \n 1,592,950 \n \n \n 26.7% \n \n \n \n \n Operating expenses  \n \n \n  (378,796) \n \n \n (337,821) \n \n \n 12.1% \n \n \n (342,893) \n \n \n 10.5% \n \n \n \n \n \n (721,689) \n \n \n (525,859) \n \n \n 37.2% \n \n \n \n \n Profit from associates \n \n \n  465 \n \n \n  378 \n \n \n 23.0% \n \n \n  271 \n \n \n 71.6% \n \n \n \n \n \n  736 \n \n \n  476 \n \n \n 54.6% \n \n \n \n \n Operating income before cost of risk (2024: adjusted) \n \n \n  660,803 \n \n \n  611,552* \n \n \n 8.1% \n \n \n  636,030 \n \n \n 3.9% \n \n \n   \n \n \n 1,296,833 \n \n \n 1,067,567* \n \n \n 21.5% \n \n \n \n \n Cost of risk  \n \n \n  (50,796) \n \n \n  (87,896) \n \n \n -42.2% \n \n \n  (26,913) \n \n \n 88.7% \n \n \n \n \n \n  (77,709) \n \n \n (110,895) \n \n \n -29.9% \n \n \n \n \n     Out of which initial ECL related to assets acquired in business combination 3 \n \n \n  -   \n \n \n  (49,157) \n \n \n NMF \n \n \n  -   \n \n \n NMF \n \n \n \n \n \n  -   \n \n \n (49,157) \n \n \n NMF \n \n \n \n \n Profit before income tax expense and one-off items (2024: adjusted) \n \n \n  610,007 \n \n \n  523,656* \n \n \n 16.5% \n \n \n  609,117 \n \n \n 0.1% \n \n \n   \n \n \n 1,219,124 \n \n \n  956,672* \n \n \n 27.4% \n \n \n \n \n Income tax expense \n \n \n  (96,760) \n \n \n  (93,668) \n \n \n 3.3% \n \n \n  (96,053) \n \n \n 0.7% \n \n \n \n \n \n (192,813) \n \n \n (157,617) \n \n \n 22.3% \n \n \n \n \n Profit before one-off items \n \n \n  513,247 \n \n \n  429,988* \n \n \n 19.4% \n \n \n  513,064 \n \n \n 0.0% \n \n \n   \n \n \n 1,026,311 \n \n \n  799,055* \n \n \n 28.4% \n \n \n \n \n One-off items 4 \n \n \n  -   \n \n \n  679 \n \n \n NMF \n \n \n  -   \n \n \n  -   \n \n \n \n \n \n  -   \n \n \n  669,465 \n \n \n NMF \n \n \n \n \n Profit  \n \n \n  513,247 \n \n \n  430,667 \n \n \n 19.2% \n \n \n  513,064 \n \n \n 0.0% \n \n \n   \n \n \n 1,026,311 \n \n \n 1,468,520 \n \n \n -30.1% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic earnings per share \n \n \n  11.89 \n \n \n  9.79 \n \n \n 21.5% \n \n \n  11.81 \n \n \n 0.7% \n \n \n   \n \n \n  23.70 \n \n \n  33.37 \n \n \n -29.0% \n \n \n \n \n Diluted earnings per share \n \n \n  11.75 \n \n \n  9.62 \n \n \n 22.1% \n \n \n  11.73 \n \n \n 0.2% \n \n \n   \n \n \n  23.44 \n \n \n  32.81 \n \n \n -28.6% \n \n \n \n \n Basic earnings per share adjusted for one-offs \n \n \n  11.89 \n \n \n  9.77 \n \n \n 21.7% \n \n \n  11.81 \n \n \n 0.7% \n \n \n   \n \n \n  23.70 \n \n \n  18.11 \n \n \n 30.9% \n \n \n \n \n Diluted earnings per share adjusted for one-offs \n \n \n  11.75 \n \n \n  9.61 \n \n \n 22.3% \n \n \n  11.73 \n \n \n 0.2% \n \n \n   \n \n \n  23.44 \n \n \n  17.81 \n \n \n 31.6% \n \n \n \n \n * This figure differs from the corresponding amount in the unaudited consolidated financial statements, as it excludes a one-off item of GEL 669.5m in 1H24 and 0.7m in 2Q24, to better showcase underlying performance. For the full unaudited consolidated financial information, please refer to page 18 or page 39 of the financial statements. \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n BALANCE SHEET HIGHLIGHTS \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change y-o-y \n \n \n Mar-25 \n \n \n Change q-o-q \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Liquid assets \n \n \n 16,333,288 \n \n \n 14,479,764 \n \n \n 12.8% \n \n \n 17,490,685 \n \n \n -6.6% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Cash and cash equivalents \n \n \n  4,022,221 \n \n \n  3,422,747 \n \n \n 17.5% \n \n \n  4,151,524 \n \n \n -3.1% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Amounts due from credit institutions \n \n \n  3,194,606 \n \n \n  2,710,729 \n \n \n 17.9% \n \n \n  3,596,111 \n \n \n -11.2% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Investment securities \n \n \n  9,116,461 \n \n \n  8,346,288 \n \n \n 9.2% \n \n \n  9,743,050 \n \n \n -6.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Loans to customers, finance lease and factoring receivables [5] \n \n \n 36,530,447 \n \n \n 30,081,566 \n \n \n 21.4% \n \n \n 34,137,143 \n \n \n 7.0% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Property and equipment \n \n \n  578,502 \n \n \n  529,715 \n \n \n 9.2% \n \n \n  554,208 \n \n \n 4.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n All remaining assets \n \n \n  1,649,833 \n \n \n  1,437,376 \n \n \n 14.8% \n \n \n  1,617,265 \n \n \n 2.0% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Total assets \n \n \n 55,092,070 \n \n \n 46,528,421 \n \n \n 18.4% \n \n \n 53,799,301 \n \n \n 2.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Client deposits and notes \n \n \n 34,789,736 \n \n \n 30,706,272 \n \n \n 13.3% \n \n \n 33,969,258 \n \n \n 2.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Amounts owed to credit institutions \n \n \n  8,927,118 \n \n \n  6,366,603 \n \n \n 40.2% \n \n \n  9,006,255 \n \n \n -0.9% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Borrowings from DFIs \n \n \n  2,918,362 \n \n \n  2,053,214 \n \n \n 42.1% \n \n \n  3,322,500 \n \n \n -12.2% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Short-term loans from the National Bank of Georgia \n \n \n  2,552,236 \n \n \n  1,443,950 \n \n \n 76.8% \n \n \n  3,426,723 \n \n \n -25.5% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Short-term loans from the Central Bank of Armenia \n \n \n  142,743 \n \n \n  175,993 \n \n \n -18.9% \n \n \n  144,536 \n \n \n -1.2% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n     Loans and deposits from commercial banks \n \n \n  3,313,777 \n \n \n  2,693,446 \n \n \n 23.0% \n \n \n  2,112,496 \n \n \n 56.9% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Debt securities issued \n \n \n  2,445,652 \n \n \n  2,128,224 \n \n \n 14.9% \n \n \n  2,257,270 \n \n \n 8.3% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n All remaining liabilities \n \n \n  1,310,432 \n \n \n  1,164,031 \n \n \n 12.6% \n \n \n  1,145,023 \n \n \n 14.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Total liabilities \n \n \n 47,472,938 \n \n \n 40,365,130 \n \n \n 17.6% \n \n \n 46,377,806 \n \n \n 2.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Total equity \n \n \n  7,619,132 \n \n \n  6,163,291 \n \n \n 23.6% \n \n \n  7,421,495 \n \n \n 2.7% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Book value per share \n \n \n  176.81 \n \n \n  141.14 \n \n \n 25.3% \n \n \n  170.99 \n \n \n 3.4% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n KEY RATIOS \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n   \n \n \n 1Q25 \n \n \n   \n \n \n   \n \n \n 1H25 2 \n \n \n 1H24 \n \n \n \n \n \n   \n \n \n \n \n ROAA (adjusted for one-off items) 4 , 6 \n \n \n 3.8% \n \n \n 3.9% \n \n \n \n \n \n 3.9% \n \n \n \n \n \n \n \n \n 3.9% \n \n \n 4.2% \n \n \n \n \n \n   \n \n \n \n \n ROAA (adjusted for one-off items and Ameriabank initial ECL) 3 , 4 , 6 \n \n \n 3.8% \n \n \n 4.3% \n \n \n \n \n \n 3.9% \n \n \n \n \n \n \n \n \n 3.9% \n \n \n 4.5% \n \n \n \n \n \n   \n \n \n \n \n ROAE (adjusted for one-off items) 4 \n \n \n 27.2% \n \n \n 28.0% \n \n \n \n \n \n 28.7% \n \n \n \n \n \n \n \n \n 27.9% \n \n \n 28.4% \n \n \n \n \n \n   \n \n \n \n \n ROAE (adjusted for one-off items and Ameriabank initial ECL) 3 , 4 \n \n \n 27.2% \n \n \n 31.3% \n \n \n \n \n \n 28.7% \n \n \n \n \n \n \n \n \n 27.9% \n \n \n 30.1% \n \n \n \n \n \n   \n \n \n \n \n Net interest margin [6] \n \n \n 6.0% \n \n \n 6.3% \n \n \n \n \n \n 5.9% \n \n \n \n \n \n \n \n \n 5.9% \n \n \n 6.3% \n \n \n \n \n \n   \n \n \n \n \n Loan yield 6 \n \n \n 12.3% \n \n \n 12.4% \n \n \n \n \n \n 12.2% \n \n \n \n \n \n \n \n \n 12.3% \n \n \n 12.4% \n \n \n \n \n \n   \n \n \n \n \n Liquid assets yield 6 \n \n \n 5.0% \n \n \n 5.0% \n \n \n \n \n \n 4.9% \n \n \n \n \n \n \n \n \n 5.0% \n \n \n 5.1% \n \n \n \n \n \n   \n \n \n \n \n Cost of funds 6 \n \n \n 5.1% \n \n \n 4.8% \n \n \n \n \n \n 5.0% \n \n \n \n \n \n \n \n \n 5.1% \n \n \n 4.9% \n \n \n \n \n \n   \n \n \n \n \n Cost of client deposits and notes 6 \n \n \n 4.3% \n \n \n 4.0% \n \n \n \n \n \n 4.1% \n \n \n \n \n \n \n \n \n 4.2% \n \n \n 4.1% \n \n \n \n \n \n   \n \n \n \n \n Cost of amounts owed to credit Institutions 6 \n \n \n 7.4% \n \n \n 7.7% \n \n \n \n \n \n 7.8% \n \n \n \n \n \n \n \n \n 7.6% \n \n \n 8.1% \n \n \n \n \n \n   \n \n \n \n \n Cost of debt securities issued 6 \n \n \n 7.5% \n \n \n 8.2% \n \n \n \n \n \n 7.6% \n \n \n \n \n \n \n \n \n 7.5% \n \n \n 8.2% \n \n \n \n \n \n   \n \n \n \n \n Cost:income ratio \n \n \n 36.5% \n \n \n 35.6% \n \n \n \n \n \n 35.0% \n \n \n \n \n \n \n \n \n 35.8% \n \n \n 33.0% \n \n \n \n \n \n   \n \n \n \n \n NPLs to gross loans \n \n \n 1.9% \n \n \n 2.0% \n \n \n \n \n \n 2.0% \n \n \n \n \n \n \n \n \n 1.9% \n \n \n 2.0% \n \n \n \n \n \n   \n \n \n \n \n NPL coverage ratio \n \n \n 63.5% \n \n \n 63.7% \n \n \n \n \n \n 59.3% \n \n \n \n \n \n \n \n \n 63.5% \n \n \n 63.7% \n \n \n \n \n \n   \n \n \n \n \n NPL coverage ratio adjusted for the discounted value of collateral \n \n \n 119.2% \n \n \n 119.4% \n \n \n \n \n \n 117.1% \n \n \n \n \n \n \n \n \n 119.2% \n \n \n 119.4% \n \n \n \n \n \n   \n \n \n \n \n Cost of credit risk ratio 6 \n \n \n 0.5% \n \n \n 1.1% \n \n \n \n \n \n 0.2% \n \n \n \n \n \n \n \n \n 0.4% \n \n \n 0.8% \n \n \n \n \n \n   \n \n \n \n \n Cost of credit risk ratio (adjusted for Ameriabank initial ECL) 3 , 6 \n \n \n 0.5% \n \n \n 0.4% \n \n \n \n \n \n 0.2% \n \n \n \n \n \n \n \n \n 0.4% \n \n \n 0.4% \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n GEL thousands, unless otherwise noted \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change \n y-o-y \n \n \n Mar-25 \n \n \n Change \n q-o-q \n \n \n \n \n NON-PERFORMING LOANS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Group (consolidated) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n NPLs (in GEL thousands) \n \n \n  717,493 \n \n \n  613,405 \n \n \n 17.0% \n \n \n  699,246 \n \n \n 2.6% \n \n \n \n \n NPLs to gross loans  \n \n \n 1.9% \n \n \n 2.0% \n \n \n \n \n \n 2.0% \n \n \n \n \n \n \n \n NPL coverage ratio \n \n \n 63.5% \n \n \n 63.7% \n \n \n \n \n \n 59.3% \n \n \n \n \n \n \n \n NPL coverage ratio adjusted for the discounted value of collateral \n \n \n 119.2% \n \n \n 119.4% \n \n \n \n \n \n 117.1% \n \n \n \n \n \n \n \n Georgian Financial Services (GFS) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n NPLs to gross loans \n \n \n 2.2% \n \n \n 2.1% \n \n \n \n \n \n 2.2% \n \n \n \n \n \n \n \n NPL coverage ratio \n \n \n 61.7% \n \n \n 66.0% \n \n \n \n \n \n 59.3% \n \n \n \n \n \n \n \n NPL coverage ratio adjusted for the discounted value of collateral \n \n \n 113.6% \n \n \n 116.4% \n \n \n \n \n \n 113.2% \n \n \n \n \n \n \n \n Ameriabank (standalone figures) \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n NPLs to gross loans \n \n \n 1.4% \n \n \n 2.1% \n \n \n \n \n \n 1.5% \n \n \n \n \n \n \n \n NPL coverage ratio \n \n \n 75.5% \n \n \n 66.3% \n \n \n \n \n \n 63.3% \n \n \n \n \n \n \n \n NPL coverage ratio adjusted for the discounted value of collateral \n \n \n 144.5% \n \n \n 122.3% \n \n \n \n \n \n 134.3% \n \n \n \n \n \n \n \n Returns to shareholders (dividends and share buyback and cancellation programme) \n \n \n \n \n • \n \n \n The Board has taken the decision to move to a quarterly distribution schedule, with our total capital repatriation policy unchanged at a target payout range of 30-50% of annual Group profits. Considering the strong performance of the Group during the first half of 2025 and robust capital levels, the Board today declared a cumulative dividend of GEL 5.10 per ordinary share in respect of the periods ended 31 March 2025 and 30 June 202 5 , payable according to the following timetable: \n \n \n \n \n \n \n \n • \n \n \n Ex-Dividend Date: 25 September 2025 \n \n \n \n \n \n \n \n • \n \n \n Record Date: 26 September 2025 \n \n \n \n \n \n \n \n • \n \n \n Currency Conversion Date: 26 September 2025 \n \n \n \n \n \n \n \n • \n \n \n Payment Date: 10 October 2025 \n \n \n \n \n • \n \n \n The NBG's Lari/Pounds Sterling average exchange rate for the period of 22 September to 26 September 2025 will be used as the exchange rate on the Currency Conversion Date and will be announced in due course. \n \n \n \n \n • \n \n \n In addition, the Board has approved a further share buyback and cancellation programme totalling GEL 98.0 million. \n \n \n \n \n • \n \n \n The previous GEL 107.7 million share buyback and cancellation programme has been completed. As a result, 487,974 shares were cancelled. The total number of shares in issue as at 19 August 2025 was 43,863,576. \n \n \n \n \n   \n   \n   \n \n \n   \n Business Division results \n Following the acquisition of Ameriabank in March 2024, the Group results are presented by the following Business Divisions: 1) Georgian Financial Services (GFS), 2) Armenian Financial Services (AFS), and 3) Other Businesses. \n Georgian Financial Services (GFS) \n Georgian Financial Services ( GFS ) mainly comprises JSC Bank of Georgia and investment bank JSC Galt and Taggart. \n \n \n \n \n GEL thousands \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n Change \n y-o-y \n \n \n 1Q25 \n \n \n Change \n q-o-q \n \n \n \n \n \n 1H25 \n \n \n 1H24 \n \n \n Change \n y-o-y \n \n \n \n \n INCOME STATEMENT HIGHLIGHTS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest income  \n \n \n  952,366 \n \n \n  797,984 \n \n \n 19.3% \n \n \n  907,259 \n \n \n 5.0% \n \n \n \n \n \n 1,859,625 \n \n \n 1,543,926 \n \n \n 20.4% \n \n \n \n \n Interest expense  \n \n \n  (437,841) \n \n \n  (359,907) \n \n \n 21.7% \n \n \n  (425,453) \n \n \n 2.9% \n \n \n \n \n \n  (863,294) \n \n \n  (683,420) \n \n \n 26.3% \n \n \n \n \n Net interest income  \n \n \n  514,525 \n \n \n  438,077 \n \n \n 17.5% \n \n \n  481,806 \n \n \n 6.8% \n \n \n   \n \n \n  996,331 \n \n \n  860,506 \n \n \n 15.8% \n \n \n \n \n Net fee and commission income  \n \n \n  125,065 \n \n \n  120,453 \n \n \n 3.8% \n \n \n  113,955 \n \n \n 9.7% \n \n \n \n \n \n  239,020 \n \n \n  227,804 \n \n \n 4.9% \n \n \n \n \n Net foreign currency gain \n \n \n  91,321 \n \n \n  99,177 \n \n \n -7.9% \n \n \n  82,730 \n \n \n 10.4% \n \n \n \n \n \n  174,051 \n \n \n  180,807 \n \n \n -3.7% \n \n \n \n \n Net other income \n \n \n  14,990 \n \n \n  12,101 \n \n \n 23.9% \n \n \n  6,975 \n \n \n 114.9% \n \n \n \n \n \n  21,965 \n \n \n  19,479 \n \n \n 12.8% \n \n \n \n \n Operating income \n \n \n  745,901 \n \n \n  669,808 \n \n \n 11.4% \n \n \n  685,466 \n \n \n 8.8% \n \n \n   \n \n \n 1,431,367 \n \n \n 1,288,596 \n \n \n 11.1% \n \n \n \n \n Salaries and other employee benefits \n \n \n  (132,342) \n \n \n  (112,521) \n \n \n 17.6% \n \n \n  (113,596) \n \n \n 16.5% \n \n \n   \n \n \n  (245,938) \n \n \n  (207,015) \n \n \n 18.8% \n \n \n \n \n Administrative expenses \n \n \n  (49,502) \n \n \n  (49,674) \n \n \n -0.3% \n \n \n  (43,244) \n \n \n 14.5% \n \n \n \n \n \n  (92,746) \n \n \n  (91,352) \n \n \n 1.5% \n \n \n \n \n Depreciation, amortisation and impairment \n \n \n  (35,610) \n \n \n  (29,904) \n \n \n 19.1% \n \n \n  (33,788) \n \n \n 5.4% \n \n \n \n \n \n  (69,398) \n \n \n  (58,738) \n \n \n 18.1% \n \n \n \n \n Other operating expenses  \n \n \n  (6,387) \n \n \n  (1,369) \n \n \n NMF \n \n \n  (6,194) \n \n \n 3.1% \n \n \n \n \n \n  (12,581) \n \n \n  (2,863) \n \n \n NMF \n \n \n \n \n Operating expenses  \n \n \n  (223,841) \n \n \n  (193,468) \n \n \n 15.7% \n \n \n  (196,822) \n \n \n 13.7% \n \n \n   \n \n \n  (420,663) \n \n \n  (359,968) \n \n \n 16.9% \n \n \n \n \n Profit from associates \n \n \n  465 \n \n \n  378 \n \n \n 23.0% \n \n \n  271 \n \n \n 71.6% \n \n \n \n \n \n  736 \n \n \n  589 \n \n \n 25.0% \n \n \n \n \n Operating income before cost of risk \n \n \n  522,525 \n \n \n  476,718 \n \n \n 9.6% \n \n \n  488,915 \n \n \n 6.9% \n \n \n   \n \n \n 1,011,440 \n \n \n  929,217 \n \n \n 8.8% \n \n \n \n \n Cost of risk  \n \n \n  (45,848) \n \n \n  (27,623) \n \n \n 66.0% \n \n \n  (17,990) \n \n \n 154.9% \n \n \n \n \n \n  (63,838) \n \n \n  (48,093) \n \n \n 32.7% \n \n \n \n \n Profit before income tax expense \n \n \n  476,677 \n \n \n  449,095 \n \n \n 6.1% \n \n \n  470,925 \n \n \n 1.2% \n \n \n   \n \n \n  947,602 \n \n \n  881,124 \n \n \n 7.5% \n \n \n \n \n Income tax expense \n \n \n  (66,827) \n \n \n  (68,226) \n \n \n -2.1% \n \n \n  (65,856) \n \n \n 1.5% \n \n \n \n \n \n  (132,683) \n \n \n  (129,883) \n \n \n 2.2% \n \n \n \n \n Profit before for one-off items \n \n \n  409,850 \n \n \n  380,869 \n \n \n 7.6% \n \n \n  405,069 \n \n \n 1.2% \n \n \n   \n \n \n  814,919 \n \n \n  751,241 \n \n \n 8.5% \n \n \n \n \n One-off items \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n  -   \n \n \n - \n \n \n \n \n \n - \n \n \n  -   \n \n \n - \n \n \n \n \n Profit  \n \n \n  409,850 \n \n \n  380,869 \n \n \n 7.6% \n \n \n  405,069 \n \n \n 1.2% \n \n \n   \n \n \n  814,919 \n \n \n  751,241 \n \n \n 8.5% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n BALANCE SHEET HIGHLIGHTS \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change \n y-o-y \n \n \n Mar-25 \n \n \n Change \n q-o-q \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Cash and cash equivalents \n \n \n  2,108,736 \n \n \n  1,899,605 \n \n \n 11.0% \n \n \n  2,465,779 \n \n \n - 14.5% \n \n \n \n \n \n   \n \n \n \n \n Amounts due from credit institutions \n \n \n  2,339,536 \n \n \n  1,866,561 \n \n \n 25.3% \n \n \n  2,586,850 \n \n \n -9.6% \n \n \n \n \n \n   \n \n \n \n \n Investment securities \n \n \n  7,527,941 \n \n \n  6,942,219 \n \n \n 8.4% \n \n \n  8,180,808 \n \n \n -8.0% \n \n \n \n \n \n   \n \n \n \n \n Loans to customers, finance lease and factoring receivables \n \n \n 25,306,909 \n \n \n 21,659,438 \n \n \n 16.8% \n \n \n 24,049,085 \n \n \n 5.2% \n \n \n \n \n \n   \n \n \n \n \n     Loans to customers, finance lease and factoring receivables, LC \n \n \n 14,594,431 \n \n \n 12,043,169 \n \n \n 21.2% \n \n \n 13,971,277 \n \n \n 4.5% \n \n \n   \n \n \n   \n \n \n \n \n     Loans to customers, finance lease and factoring receivables, FC \n \n \n 10,712,478 \n \n \n 9,616,269 \n \n \n 11.4% \n \n \n 10,077,808 \n \n \n 6.3% \n \n \n   \n \n \n   \n \n \n \n \n Property and equipment \n \n \n 482,933 \n \n \n 433,585 \n \n \n 11.4% \n \n \n  465,059 \n \n \n 3.8% \n \n \n \n \n \n   \n \n \n \n \n All remaining assets \n \n \n  1,185,218 \n \n \n  1,047,065 \n \n \n 13.2% \n \n \n  1,174,534 \n \n \n 0.9% \n \n \n \n \n \n   \n \n \n \n \n Total assets \n \n \n 38,951,273 \n \n \n 33,848,473 \n \n \n 15.1% \n \n \n 38,922,115 \n \n \n 0.1% \n \n \n   \n \n \n   \n \n \n \n \n Client deposits and notes \n \n \n 24,979,831 \n \n \n 22,659,682 \n \n \n 10.2% \n \n \n 24,820,659 \n \n \n 0.6% \n \n \n \n \n \n   \n \n \n \n \n     Client deposits and notes, LC \n \n \n 12,650,370 \n \n \n 10,881,951 \n \n \n 16.3% \n \n \n 11,675,339 \n \n \n 8.4% \n \n \n   \n \n \n   \n \n \n \n \n     Client deposits and notes, FC \n \n \n 12,329,461 \n \n \n 11,777,731 \n \n \n 4.7% \n \n \n 13,145,320 \n \n \n -6.2% \n \n \n   \n \n \n   \n \n \n \n \n Amounts owed to credit institutions \n \n \n 6,512,756 \n   \n \n \n 5,065,866 \n \n \n 28.6% \n \n \n 7,161,810 \n \n \n -9.1% \n \n \n \n \n \n   \n \n \n \n \n Debt securities issued \n \n \n 1,261,544 \n \n \n 1,040,106 \n \n \n 21.3% \n \n \n  1,144,275 \n \n \n 10.2% \n \n \n \n \n \n   \n \n \n \n \n All remaining liabilities \n \n \n 898,001 \n \n \n 735,130 \n \n \n 22.2% \n \n \n 527,112 \n \n \n 70.4% \n \n \n \n \n \n   \n \n \n \n \n Total liabilities \n \n \n 33,652,132 \n \n \n 29,500,784 \n \n \n 14.1% \n \n \n 33,653,856 \n \n \n 0.0% \n \n \n   \n \n \n   \n \n \n \n \n Total equity \n \n \n 5,299,141 \n \n \n 4,347,689 \n \n \n 21.9% \n \n \n 5,268,259 \n \n \n 0.6% \n \n \n   \n \n \n   \n \n \n \n \n Risk-weighted assets (JSC Bank of Georgia standalone) \n \n \n 30,619,266 \n \n \n 25,800,413 \n \n \n 18.7% \n \n \n 29,867,785 \n \n \n 2.5% \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n KEY RATIOS \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n   \n \n \n 1Q25 \n \n \n   \n \n \n   \n \n \n 1H25 \n \n \n 1H24 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n ROAA \n \n \n 4.2% \n \n \n 4.7% \n \n \n \n \n \n 4.3% \n \n \n   \n \n \n   \n \n \n 4.3% \n \n \n 4.8% \n \n \n \n \n ROAE \n \n \n 31.1% \n \n \n 34.6% \n \n \n \n \n \n 32.0% \n \n \n   \n \n \n   \n \n \n 31.6% \n \n \n 32.7% \n \n \n \n \n Net interest margin \n \n \n 5.9% \n \n \n 6.0% \n \n \n \n \n \n 5.7% \n \n \n   \n \n \n   \n \n \n 5.8% \n \n \n 6.1% \n \n \n \n \n Loan yield \n \n \n 12.7% \n \n \n 12.5% \n \n \n \n \n \n 12.6% \n \n \n   \n \n \n   \n \n \n 12.6% \n \n \n 12.5% \n \n \n \n \n     Loan yield, GEL \n \n \n 15.2% \n \n \n 14.9% \n \n \n   \n \n \n 15.0% \n \n \n   \n \n \n   \n \n \n 15.1% \n \n \n 15.0% \n \n \n \n \n     Loan yield, FC \n \n \n 9.2% \n \n \n 9.5% \n \n \n   \n \n \n 9.2% \n \n \n   \n \n \n   \n \n \n 9.2% \n \n \n 9.3% \n \n \n \n \n Cost of funds \n \n \n 5.3% \n \n \n 5.2% \n \n \n \n \n \n 5.3% \n \n \n   \n \n \n   \n \n \n 5.3% \n \n \n 5.2% \n \n \n \n \n Cost of client deposits and notes \n \n \n 4.5% \n \n \n 4.4% \n \n \n \n \n \n 4.4% \n \n \n   \n \n \n   \n \n \n 4.5% \n \n \n 4.4% \n \n \n \n \n     Cost of client deposits and notes, GEL \n \n \n 7.8% \n \n \n 7.9% \n \n \n   \n \n \n 7.7% \n \n \n   \n \n \n   \n \n \n 7.8% \n \n \n 8.1% \n \n \n \n \n     Cost of client deposits and notes, FC \n \n \n 1.4% \n \n \n 1.1% \n \n \n   \n \n \n 1.4% \n \n \n   \n \n \n   \n \n \n 1.5% \n \n \n 1.1% \n \n \n \n \n Cost of time deposits \n \n \n 6.8% \n \n \n 6.9% \n \n \n \n \n \n 6.6% \n \n \n   \n \n \n   \n \n \n 6.8% \n \n \n 6.9% \n \n \n \n \n     Cost of time deposits, GEL \n \n \n 10.1% \n \n \n 10.6% \n \n \n   \n \n \n 10.1% \n \n \n   \n \n \n   \n \n \n 10.2% \n \n \n 10.8% \n \n \n \n \n     Cost of time deposits, FC \n \n \n 2.7% \n \n \n 2.5% \n \n \n   \n \n \n 2.6% \n \n \n   \n \n \n   \n \n \n 2.7% \n \n \n 2.4% \n \n \n \n \n Cost of current accounts and demand deposits \n \n \n 2.5% \n \n \n 2.2% \n \n \n \n \n \n 2.4% \n \n \n   \n \n \n   \n \n \n 2.4% \n \n \n 2.4% \n \n \n \n \n     Cost of current accounts and demand deposits, GEL \n \n \n 5.1% \n \n \n 4.8% \n \n \n   \n \n \n 5.0% \n \n \n   \n \n \n   \n \n \n 5.0% \n \n \n 5.1% \n \n \n \n \n     Cost of current accounts and demand deposits, FC \n \n \n 0.6% \n \n \n 0.4% \n \n \n   \n \n \n 0.6% \n \n \n   \n \n \n   \n \n \n 0.6% \n \n \n 0.0% \n \n \n \n \n Cost:income ratio \n \n \n 30.0% \n \n \n 28.9% \n \n \n \n \n \n 28.7% \n \n \n   \n \n \n   \n \n \n 29.4% \n \n \n 27.9% \n \n \n \n \n Cost of credit risk ratio \n \n \n 0.7% \n \n \n 0.4% \n \n \n \n \n \n 0.2% \n \n \n   \n \n \n   \n \n \n 0.4% \n \n \n 0.4% \n \n \n \n \n   \n   \n   \n Performance highlights \n \n \n \n \n • \n \n \n GFS delivered operating income of GEL 745.9m in 2Q25, up 11.4% y-o-y and up 8.8% q-o-q. The y-o-y expansion was predominantly driven by net interest income, while the q-o-q growth stemmed from increases across all key income lines. In 1H25, operating income reached GEL 1,431.4m (up 11.1% y-o-y), fuelled by strong net interest income growth, complemented by modest increases in net fee and commission income and net other income, and partially offset by a decline in net foreign currency gain. \n \n \n \n \n • \n \n \n Net interest income stood at GEL 514.5m , up 17.5% y-o-y and up 6.8% q-o-q. The y-o-y and the q-o-q increase was mainly driven by strong loan growth. In 1H25, net interest income amounted to GEL 996.3m (up 15.8% y-o-y). \n \n \n \n \n   \n \n \n • \n \n \n In 2Q25, NIM stood at 5.9%, down 0.1 ppt y-o-y and up 0.2 ppts q-o-q. For 1H25, NIM was 5.8%, a decline of 0.3 ppts y-o-y. The deployment of excess liquidity resulted in a margin uplift in the second quarter. We expect GFS NIM to remain broadly stable, with potential for a slight upside. \n \n \n \n \n • \n \n \n Net fee and commission income reached GEL 125.1m in 2Q25, up 3.8% y-o-y and up 9.7% q-o-q. The y-o-y growth was impacted mainly by heightened competition, coupled with a significant item in 2Q24 that elevated the base in net fees. \n \n \n \n \n • \n \n \n Net foreign currency (FX) gain was GEL 91.3m in 2Q25, down 7.9% y-o-y and up 10.4% q-o-q. This annual decline was primarily due to a translation loss from a currency derivative instrument, which we used for GEL liquidity, and which also impacted our 1Q25 FX gains. Additionally, client-driven dealing income remained flat y-o-y as relatively stable currency and increased market competition weighed on our spreads. \n \n \n \n \n • \n \n \n Operating expenses amounted to GEL 223.8m in 2Q25 (up 15.7% y-o-y and up 13.7% q-o-q). In 1H25, operating expenses increased by 16.9% y-o-y to GEL 420.7m . \n \n \n \n \n   \n \n \n • \n \n \n In 2Q25, the y-o-y operating expense growth was primarily driven by higher staff costs, partially offset by lower administrative expenses. The increase in staff costs included an elevated first-year expense for the Chief Executive's new three-year contract, approved at the 2025 AGM, as well as accelerated compensation cost resulting from a senior manager's contract termination (GEL 2.4m). In addition, Bank of Georgia's contributions to the resolution fund in the amount of GEL 4.4m were posted this quarter. Excluding the GEL 6.8 million impact of the termination and resolution fund expenses, operating expenses at GFS would have increased by 12.2% y-o-y. Compared with the prior quarter, operating expense growth was driven by similar staff cost increases, coupled with a 14.5% rise in administrative expenses, reflecting marketing campaigns and higher employee training and development expenses. \n \n \n \n \n • \n \n \n The cost of credit risk ratio was 0.7% in 2Q25 (0.4% in 2Q24 and 0.2% in 1Q25). In 1H25, the cost of credit risk was 0.4% (0.4% in 1H24). The loan portfolio quality remained strong, and the quarterly cost of credit risk increase mainly reflected the effect of US dollar devaluation against GEL and EUR as well as periodic recalibration of internal risk assumptions.  \n \n \n \n \n \n \n   \n Portfolio highlights \n From 1Q24 the Corporate Center was separated as a new segment of GFS. The Corporate Center mainly includes treasury and custody operations. Previously, the Corporate Center's income and expenses were allocated to the Retail, SME, and CIB segments. The previous figures for the Retail, SME, and CIB segments have been restated. \n \n \n \n \n \n \n \n Portfolio highlights: loans to customers, finance lease and factoring receivables \n   \n \n \n   \n \n \n \n \n \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change y-o-y \n \n \n Change y-o-y (constant currency) \n \n \n Mar-25 \n \n \n Change q-o-q \n \n \n Change q-o-q (constant currency) \n \n \n \n \n Total GFS \n \n \n 25,306,909 \n \n \n 21,659,438 \n \n \n 16.8% \n \n \n 17.0% \n \n \n 24,049,085 \n \n \n 5.2% \n \n \n 4.7% \n \n \n \n \n Retail \n \n \n 11,028,623 \n \n \n 9,290,776 \n \n \n 18.7% \n \n \n 18.7% \n \n \n  10,518,379 \n \n \n 4.9% \n \n \n 4.6% \n \n \n \n \n Mortgages \n \n \n  4,754,810 \n \n \n  4,244,568 \n \n \n 12.0% \n \n \n 11.9% \n \n \n  4,599,335 \n \n \n 3.4% \n \n \n 5.3% \n \n \n \n \n Consumer loans \n \n \n  5,517,428 \n \n \n  4,364,337 \n \n \n 26.4% \n \n \n 26.7% \n \n \n  5,185,540 \n \n \n 6.4% \n \n \n 10.8% \n \n \n \n \n Other loans \n \n \n  756,385 \n \n \n  681,871 \n \n \n 10.9% \n \n \n 8.7% \n \n \n  733,504 \n \n \n 3.1% \n \n \n 3.2% \n \n \n \n \n SME \n \n \n 5,227,172 \n \n \n 4,898,358 \n \n \n 6.7% \n \n \n 6.4% \n \n \n  5,114,504 \n \n \n 2.2% \n \n \n 1.4% \n \n \n \n \n CIB \n \n \n 9,051,114 \n \n \n 7,470,304 \n \n \n 21.2% \n \n \n 21.8% \n \n \n  8,416,202 \n \n \n 7.5% \n \n \n 7.0% \n \n \n \n \n Corporate Center \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n   \n Portfolio highlights: customer deposits and notes \n   \n \n \n   \n \n \n \n \n \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change \n y-o-y \n \n \n Change y-o-y (constant currency) \n \n \n Mar-25 \n \n \n Change \n q-o-q \n \n \n Change q-o-q (constant currency) \n \n \n \n \n Total GFS \n \n \n  24,979,831 \n \n \n  22,659,682 \n \n \n 10.2% \n \n \n 10.9% \n \n \n  24,820,659 \n \n \n 0.6% \n \n \n 0.5% \n \n \n \n \n Retail \n \n \n  15,169,685 \n \n \n  13,783,042 \n \n \n 10.1% \n \n \n 10.9% \n \n \n  14,850,250 \n \n \n 2.2% \n \n \n 2.0% \n \n \n \n \n SME \n \n \n  2,231,309 \n \n \n  1,973,477 \n \n \n 13.1% \n \n \n 13.3% \n \n \n  2,117,025 \n \n \n 5.4% \n \n \n 5.1% \n \n \n \n \n CIB \n \n \n  6,278,743 \n \n \n  5,533,539 \n \n \n 13.5% \n \n \n 13.8% \n \n \n  6,663,303 \n \n \n -5.8% \n \n \n -5.8% \n \n \n \n \n Corporate Center \n \n \n  1,374,967 \n \n \n  1,422,598 \n \n \n -3.3% \n \n \n - \n \n \n  1,268,036 \n \n \n 8.4% \n \n \n - \n \n \n \n \n Eliminations \n \n \n (74,873) \n \n \n (52,974) \n \n \n 41.3% \n \n \n - \n \n \n (77,955) \n \n \n -4.0% \n \n \n - \n \n \n \n \n \n \n \n   \n Loan portfolio quality: cost of credit risk ratio \n   \n   \n \n \n \n \n \n \n \n \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n   \n \n \n   \n \n \n 1Q25 \n \n \n   \n \n \n \n \n \n \n \n Total GFS \n \n \n 0.7% \n \n \n 0.4% \n \n \n   \n \n \n   \n \n \n 0.2% \n \n \n   \n \n \n   \n \n \n \n \n Retail \n \n \n 0.8% \n \n \n 0.4% \n \n \n \n \n \n \n \n \n 0.3% \n \n \n \n \n \n \n \n \n \n \n SME \n \n \n 1.1% \n \n \n 0.8% \n \n \n \n \n \n \n \n \n 0.2% \n \n \n \n \n \n \n \n \n \n \n CIB \n \n \n 0.6% \n \n \n 0.2% \n \n \n \n \n \n \n \n \n 0.1% \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Loan portfolio quality: NPL ratio \n   \n \n \n \n \n \n \n \n \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n   \n \n \n   \n \n \n Mar-25 \n \n \n   \n \n \n \n \n \n \n \n Total GFS \n \n \n 2.2% \n \n \n 2.1% \n \n \n   \n \n \n   \n \n \n 2.2% \n \n \n \n \n \n   \n \n \n \n \n Retail \n \n \n 1.5% \n \n \n 1.8% \n \n \n \n \n \n \n \n \n 1.5% \n \n \n \n \n \n \n \n \n \n \n SME \n \n \n 3.6% \n \n \n 3.5% \n \n \n \n \n \n \n \n \n 3.5% \n \n \n \n \n \n \n \n \n \n \n CIB \n \n \n 2.1% \n \n \n 1.5% \n \n \n \n \n \n \n \n \n 2.3% \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n • \n \n \n Customer lending continued to expand, with GFS's net loans, factoring, and finance lease receivables reaching GEL 25,306.9m as at 30 June 2025, up 17.0% y-o-y and up 4.7% q-o-q growth in cc. The y-o-y growth was broad-based, led almost equally by RB and CIB, with SME also contributing. \n \n \n \n \n \n \n \n • \n \n \n Within the RB segment, growth was primarily driven by consumer lending, which increased by 26.7% y-o-y in cc. Mortgage lending also grew by 11.9% y-o-y in cc, now accounting for 43.1% of the retail loan book - slightly below the share of consumer loans at 50.0%. \n \n \n \n \n \n \n \n • \n \n \n 57.7% of the loan book was in GEL as at 30 June 2025 (55.6% at 30 June 2024 and 58.1% at 31 March 2025). Of the remaining 42.3% in f oreign currency ( FC), 15.8% of exposures do not present FX risk as the borrowers' incomes are in the same currency. \n \n \n \n \n • \n \n \n As at 30 June 2025, client deposits and notes stood at GEL 24,979.8m , up 10.9% y-o-y and up 0.5% q-o-q in cc. Y-o-y growth was primarily driven by time deposits, which now accounts for 48.5% of the total portfolio. On a q-o-q basis, robust growth in the retail and SME segments was offset by a decrease in CIB. \n \n \n \n \n \n \n \n • \n \n \n Retail Banking remained the key contributor to deposit growth (up GEL 1,386.6m, or by 10.9% y-o-y in cc), now comprising 60.7% of total client deposits. CIB posted the fastest y-o-y growth - up GEL 745.2m, that is 13.8% in cc - raising its share to 25.1% of the total portfolio. The SME segment also supported overall growth with a solid 13.3% increase y-o-y in cc, up GEL 257.8m. \n \n \n \n \n \n \n \n • \n \n \n The deposit base continued to de-dollarise, with GEL-denominated deposits rising to 50.6% as at 30 June 2025, compared to 48.0% a year earlier and 47.0% at the end of 1Q25. \n \n \n \n \n Liquidity \n \n \n \n \n   \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Mar-25 \n \n \n \n \n \n \n \n \n \n \n \n \n \n IFRS-based NBG Liquidity Coverage Ratio (Bank of Georgia) \n \n \n 125.9% \n \n \n 128.3% \n \n \n 133.5% \n \n \n \n \n \n   \n \n \n \n \n IFRS-based NBG Net Stable Funding Ratio (Bank of Georgia) \n \n \n 127.4% \n \n \n 126.9% \n \n \n 131.4% \n \n \n \n \n \n   \n \n \n \n \n Both our Liquidity Coverage Ratio (LCR) and Net Stable Funding ratios (NSFR) were well above the regulatory minimum requirements of 100%. We have also been progressively deploying the excess liquidity maintained since the Georgian parliamentary elections in October 2024. \n Capital position \n Bank of Georgia maintains robust levels of capital, with all ratios comfortably above the minimum regulatory requirements. The movement in capital adequacy ratios in 2Q25 and the potential impact of a 10% devaluation of GEL is as follows: \n \n \n \n \n \n \n \n 31 Mar 2025 \n \n \n 2Q25 \n profit \n \n \n Business growth \n \n \n Currency impact \n \n \n Dividend payment \n \n \n Tier 1- Tier 2 \n \n \n 30 Jun \n 2025 \n \n \n   \n \n \n   \n \n \n   \n \n \n Min requirement \n \n \n Buffer above min requirement \n \n \n Potential impact \n of a 10% GEL devaluation \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n CET 1 capital adequacy \n \n \n 16.4% \n \n \n 1.3% \n \n \n -0.4% \n \n \n -0.1% \n \n \n 0.0% \n \n \n 0.0% \n \n \n 17.3% \n \n \n \n \n \n \n \n \n \n \n \n 15.1% \n \n \n 2.2% \n \n \n -0.8% \n \n \n \n \n Tier 1 capital adequacy \n \n \n 19.6% \n \n \n 1.3% \n \n \n -0.4% \n \n \n -0.1% \n \n \n 0.0% \n \n \n 0.0% \n \n \n 20.4% \n \n \n \n \n \n \n \n \n \n \n \n 17.3% \n \n \n 3.1% \n \n \n -0.7% \n \n \n \n \n Total capital adequacy \n \n \n 21.2% \n \n \n 1.3% \n \n \n -0.5% \n \n \n -0.1% \n \n \n 0.0% \n \n \n -0.1% \n \n \n 21.8% \n \n \n \n \n \n \n \n \n \n \n \n 20.1% \n \n \n 1.7% \n \n \n -0.6% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n   \n \n \n   \n Armenian Financial Services (AFS) \n Ameriabank CJSC was acquired and consolidated on the books at the end of March 2024, with AFS income statement included in the Group's results starting from 1 April 2024. Standalone financial information for Ameriabank is provided on page 16 for reference. It differs from AFS results due to fair value adjustments and the allocation of certain Group expenses to Business Divisions and is not included in the consolidated results. \n \n \n \n \n GEL thousands \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n Change \n y-o-y \n \n \n 1Q25 \n \n \n Change \n q-o-q \n \n \n \n \n \n 1H25 2 \n \n \n 1H24 \n \n \n Change \n y-o-y \n \n \n   \n \n \n \n \n INCOME STATEMENT HIGHLIGHTS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Interest income  \n \n \n  318,383 \n \n \n  253,162 \n \n \n 25.8% \n \n \n  305,924 \n \n \n 4.1% \n \n \n \n \n \n  624,307 \n \n \n  253,162 \n \n \n 146.6% \n \n \n   \n \n \n \n \n Interest expense  \n \n \n  (126,041) \n \n \n  (87,779) \n \n \n 43.6% \n \n \n (115,409) \n \n \n 9.2% \n \n \n \n \n \n  (241,450) \n \n \n  (87,779) \n \n \n 175.1% \n \n \n   \n \n \n \n \n Net interest income  \n \n \n  192,342 \n \n \n  165,383 \n \n \n 16.3% \n \n \n  190,515 \n \n \n 1.0% \n \n \n   \n \n \n  382,857 \n \n \n  165,383 \n \n \n 131.5% \n \n \n   \n \n \n \n \n Net fee and commission income  \n \n \n  23,901 \n \n \n  29,037 \n \n \n -17.7% \n \n \n  20,491 \n \n \n 16.6% \n \n \n \n \n \n  44,392 \n \n \n  29,037 \n \n \n 52.9% \n \n \n   \n \n \n \n \n Net foreign currency gain \n \n \n  37,852 \n \n \n  38,576 \n \n \n -1.9% \n \n \n  34,018 \n \n \n 11.3% \n \n \n \n \n \n  71,870 \n \n \n  38,576 \n \n \n 86.3% \n \n \n   \n \n \n \n \n Net other income \n \n \n  380 \n \n \n  1,063 \n \n \n -64.3% \n \n \n  3,150 \n \n \n -87.9% \n \n \n \n \n \n  3,530 \n \n \n  1,063 \n \n \n NMF \n \n \n   \n \n \n \n \n Operating income \n \n \n  254,475 \n \n \n  234,059 \n \n \n 8.7% \n \n \n  248,174 \n \n \n 2.5% \n \n \n   \n \n \n  502,649 \n \n \n  234,059 \n \n \n 114.8% \n \n \n   \n \n \n \n \n Salaries and other employee benefits \n \n \n  (91,576) \n \n \n  (93,592) \n \n \n -2.2% \n \n \n  (85,796) \n \n \n 6.7% \n \n \n   \n \n \n  (177,372) \n \n \n  (95,353) \n \n \n 86.0% \n \n \n   \n \n \n \n \n Administrative expenses \n \n \n  (19,096) \n \n \n  (13,450) \n \n \n 42.0% \n \n \n  (18,138) \n \n \n 5.3% \n \n \n \n \n \n  (37,234) \n \n \n  (13,450) \n \n \n 176.8% \n \n \n   \n \n \n \n \n Depreciation, amortisation and impairment \n \n \n  (15,404) \n \n \n  (14,618) \n \n \n 5.4% \n \n \n  (14,554) \n \n \n 5.8% \n \n \n \n \n \n  (29,958) \n \n \n  (14,618) \n \n \n 104.9% \n \n \n   \n \n \n \n \n Other operating expenses  \n \n \n  (1,038) \n \n \n  (1,676) \n \n \n -38.1% \n \n \n  (2,006) \n \n \n -48.3% \n \n \n \n \n \n  (3,044) \n \n \n  (1,676) \n \n \n 81.6% \n \n \n   \n \n \n \n \n Operating expenses  \n \n \n  (127,114) \n \n \n  (123,336) \n \n \n 3.1% \n \n \n (120,494) \n \n \n 5.5% \n \n \n   \n \n \n  (247,608) \n \n \n (125,097) \n \n \n 97.9% \n \n \n   \n \n \n \n \n Profit from associates \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n  -   \n \n \n - \n \n \n \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n   \n \n \n \n \n Operating income before cost of risk (2024: adjusted) \n \n \n  127,361 \n \n \n  110,723* \n \n \n 15.0% \n \n \n  127,680 \n \n \n -0.2% \n \n \n   \n \n \n  255,041 \n \n \n 108,962* \n \n \n 134.1% \n \n \n   \n \n \n \n \n Cost of risk  \n \n \n  (5,767) \n \n \n  (56,091) \n \n \n -89.7% \n \n \n  (8,173) \n \n \n -29.4% \n \n \n \n \n \n  (13,940) \n \n \n  (56,091) \n \n \n -75.1% \n \n \n   \n \n \n \n \n     Out of which initial ECL related to assets acquired in business combination 3 \n \n \n  -   \n \n \n  (49,157) \n \n \n NMF \n \n \n  -   \n \n \n - \n \n \n \n \n \n  -   \n \n \n  (49,157) \n \n \n NMF \n \n \n   \n \n \n \n \n Profit before income tax expense (2024: adjusted) \n \n \n  121,594 \n \n \n  54,632* \n \n \n 122.6% \n \n \n  119,507 \n \n \n 1.7% \n \n \n   \n \n \n  241,101 \n \n \n  52,871* \n \n \n NMF \n \n \n   \n \n \n \n \n Income tax expense \n \n \n  (25,803) \n \n \n  (22,409) \n \n \n 15.1% \n \n \n  (23,993) \n \n \n 7.5% \n \n \n \n \n \n  (49,796) \n \n \n  (22,409) \n \n \n 122.2% \n \n \n   \n \n \n \n \n Profit before one-off items \n \n \n  95,791 \n \n \n  32,223* \n \n \n 197.3% \n \n \n  95,514 \n \n \n 0.3% \n \n \n   \n \n \n  191,305 \n \n \n  30,462* \n \n \n NMF \n \n \n   \n \n \n \n \n One-off items 4 \n \n \n - \n \n \n 679 \n \n \n NMF \n \n \n - \n \n \n NMF \n \n \n \n \n \n  -   \n \n \n  669,465 \n \n \n NMF \n \n \n   \n \n \n \n \n Profit  \n \n \n  95,791 \n \n \n  32,902 \n \n \n 191.1% \n \n \n  95,514 \n \n \n 0.3% \n \n \n   \n \n \n  191,305 \n \n \n  699,927 \n \n \n -72.7% \n   \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n * This figure differs from the corresponding amount in the unaudited consolidated financial statements, as it excludes a one-off item of GEL 669.5m in 1H24 and 0.7m in 2Q24, to better showcase underlying performance. For the full unaudited consolidated financial information, please refer to page 18 or page 48 of the financial statements. \n \n \n   \n \n \n \n \n BALANCE SHEET HIGHLIGHTS \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change y-o-y \n \n \n Mar-25 \n \n \n Change q-o-q \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Cash and cash equivalents \n \n \n  1,271,871 \n \n \n  963,562 \n \n \n 32.0% \n \n \n  1,060,250 \n \n \n 20.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Amounts due from credit institutions \n \n \n  831,897 \n \n \n  820,104 \n \n \n 1.4% \n \n \n  985,407 \n \n \n -15.6% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Investment securities \n \n \n  1,463,753 \n \n \n  1,266,048 \n \n \n 15.6% \n \n \n  1,449,374 \n \n \n 1.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Loans to customers, finance lease and factoring receivables \n \n \n 10,341,990 \n \n \n  7,713,878 \n \n \n 34.1% \n \n \n  9,337,589 \n \n \n 10.8% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Loans to customers, finance lease and factoring receivables, LC \n \n \n  5,999,058 \n \n \n  4,590,828 \n \n \n 30.7% \n \n \n  5,560,441 \n \n \n 7.9% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Loans to customers, finance lease and factoring receivables, FC \n \n \n  4,342,932 \n \n \n  3,123,050 \n \n \n 39.1% \n \n \n  3,777,148 \n \n \n 15.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Property and equipment \n \n \n  79,912 \n \n \n  83,638 \n \n \n -4.5% \n \n \n  75,690 \n \n \n 5.6% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n All remaining assets \n \n \n  365,377 \n \n \n  298,564 \n \n \n 22.4% \n \n \n  351,344 \n \n \n 4.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total assets \n \n \n 14,354,800 \n \n \n 11,145,794 \n \n \n 28.8% \n \n \n 13,259,654 \n \n \n 8.3% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Client deposits and notes \n \n \n  8,379,668 \n \n \n  6,851,090 \n \n \n 22.3% \n \n \n  7,866,942 \n \n \n 6.5% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Client deposits and notes, LC \n \n \n  4,772,660 \n \n \n  3,517,958 \n \n \n 35.7% \n \n \n  4,401,119 \n \n \n 8.4% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Client deposits and notes, FC \n \n \n  3,607,008 \n \n \n  3,333,132 \n \n \n 8.2% \n \n \n  3,465,823 \n \n \n 4.1% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Amounts owed to credit institutions \n \n \n  2,430,196 \n \n \n  1,259,350 \n \n \n 93.0% \n \n \n  1,854,080 \n \n \n 31.1% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Debt securities issued \n \n \n  1,171,408 \n \n \n  1,083,559 \n \n \n 8.1% \n \n \n  1,096,307 \n \n \n 6.9% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n All remaining liabilities \n \n \n  403,860 \n \n \n  390,431 \n \n \n 3.4% \n \n \n  577,770 \n \n \n -30.1% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total liabilities \n \n \n 12,385,132 \n \n \n  9,584,430 \n \n \n 29.2% \n \n \n 11,395,099 \n \n \n 8.7% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total equity \n \n \n  1,969,668 \n \n \n  1,561,364 \n \n \n 26.2% \n \n \n  1,864,555 \n \n \n 5.6% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Risk-weighted assets (Ameriabank CJSC standalone) \n \n \n 13,200,273 \n \n \n  9,940,460 \n \n \n 32.8% \n \n \n 12,395,897 \n \n \n 6.5% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n KEY RATIOS \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n   \n \n \n 1Q25 \n \n \n   \n \n \n   \n \n \n 1H25 2 \n \n \n 1H24 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n ROAA (adjusted for one-off items and Ameriabank initial ECL) 3 , 4 \n \n \n 2.8% \n \n \n 3.1% \n \n \n   \n \n \n 2.9% \n \n \n   \n \n \n   \n \n \n 2.9% \n \n \n 3.1% \n \n \n   \n \n \n \n \n ROAA (unadjusted) \n \n \n 2.8% \n \n \n 1.3% \n \n \n   \n \n \n 2.9% \n \n \n   \n \n \n   \n \n \n 2.9% \n \n \n 1.3% \n \n \n   \n \n \n \n \n ROAE (adjusted for one-off items and Ameriabank initial ECL) 3 , 4 \n \n \n 20.1% \n \n \n 22.1% \n \n \n   \n \n \n 21.1% \n \n \n   \n \n \n   \n \n \n 20.6% \n \n \n 22.1% \n \n \n   \n \n \n \n \n ROAE (unadjusted) \n \n \n 20.1% \n \n \n 8.9% \n \n \n   \n \n \n 21.1% \n \n \n   \n \n \n   \n \n \n 20.6% \n \n \n 8.9% \n \n \n   \n \n \n \n \n Net interest margin \n \n \n 6.4% \n \n \n 7.2% \n \n \n   \n \n \n 6.6% \n \n \n   \n \n \n   \n \n \n 6.5% \n \n \n 7.2% \n \n \n   \n \n \n \n \n Loan yield \n \n \n 11.5% \n \n \n 12.2% \n \n \n   \n \n \n 11.5% \n \n \n   \n \n \n   \n \n \n 11.5% \n \n \n 12.2% \n \n \n   \n \n \n \n \n     Loan yield, AMD \n \n \n 13.9% \n \n \n 14.7% \n \n \n   \n \n \n 13.7% \n \n \n   \n \n \n   \n \n \n 13.8% \n \n \n 14.7% \n \n \n   \n \n \n \n \n     Loan yield, FC \n \n \n 8.1% \n \n \n 8.5% \n \n \n   \n \n \n 8.4% \n \n \n   \n \n \n   \n \n \n 8.2% \n \n \n 8.5% \n \n \n   \n \n \n \n \n Cost of funds \n \n \n 4.4% \n \n \n 4.0% \n \n \n   \n \n \n 4.3% \n \n \n   \n \n \n   \n \n \n 4.4% \n \n \n 4.0% \n \n \n   \n \n \n \n \n Cost of client deposits and notes \n \n \n 3.5% \n \n \n 3.0% \n \n \n   \n \n \n 3.3% \n \n \n   \n \n \n   \n \n \n 3.4% \n \n \n 3.0% \n \n \n   \n \n \n \n \n     Cost of client deposits and notes, AMD \n \n \n 5.1% \n \n \n 4.7% \n \n \n   \n \n \n 4.7% \n \n \n   \n \n \n   \n \n \n 5.0% \n \n \n 4.7% \n \n \n   \n \n \n \n \n     Cost of client deposits and notes, FC \n \n \n 1.5% \n \n \n 1.4% \n \n \n   \n \n \n 1.4% \n \n \n   \n \n \n   \n \n \n 1.5% \n \n \n 1.4% \n \n \n   \n \n \n \n \n Cost of time deposits \n \n \n 6.1% \n \n \n 5.3% \n \n \n   \n \n \n 5.8% \n \n \n   \n \n \n   \n \n \n 6.1% \n \n \n 5.3% \n \n \n   \n \n \n \n \n     Cost of time deposits, AMD \n \n \n 9.7% \n \n \n 9.2% \n \n \n   \n \n \n 9.3% \n \n \n   \n \n \n   \n \n \n 9.7% \n \n \n 9.2% \n \n \n   \n \n \n \n \n     Cost of time deposits, FC \n \n \n 2.3% \n \n \n 2.1% \n \n \n   \n \n \n 2.2% \n \n \n   \n \n \n   \n \n \n 2.3% \n \n \n 2.1% \n \n \n   \n \n \n \n \n Cost of current accounts and demand deposits \n \n \n 1.7% \n \n \n 1.5% \n \n \n   \n \n \n 1.7% \n \n \n   \n \n \n   \n \n \n 1.7% \n \n \n 1.5% \n \n \n   \n \n \n \n \n     Cost of current accounts and demand deposits, AMD \n \n \n 2.4% \n \n \n 2.1% \n \n \n   \n \n \n 2.3% \n \n \n   \n \n \n   \n \n \n 2.3% \n \n \n 2.1% \n \n \n   \n \n \n \n \n     Cost of current accounts and demand deposits, FC \n \n \n 0.8% \n \n \n 0.7% \n \n \n   \n \n \n 0.8% \n \n \n   \n \n \n   \n \n \n 0.8% \n \n \n 0.7% \n \n \n   \n \n \n \n \n Cost:income ratio \n \n \n 50.0% \n \n \n 52.7% \n \n \n   \n \n \n 48.6% \n \n \n   \n \n \n   \n \n \n 49.3% \n \n \n 53.4% \n \n \n   \n \n \n \n \n Cost of credit risk ratio \n \n \n 0.3% \n \n \n 3.1% \n \n \n   \n \n \n 0.2% \n \n \n   \n \n \n   \n \n \n 0.2% \n \n \n 3.1% \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Performance highlights \n \n \n \n \n • \n \n \n AFS delivered operating income of GEL 254.5m in 2Q25, up 8.7% y-o-y and up 2.5% q-o-q. The y-o-y expansion was driven by net interest income, while the q-o-q growth stemmed from increases across key revenue streams, with particularly robust growth in net fee and commission income and net FX gain. \n \n \n \n \n • \n \n \n Net interest income totalled GEL 192.3m in 2Q25, up 16.3% y-o-y and up 1.0% q-o-q. While interest income saw a robust double-digit y-o-y growth, it was outpaced by interest expense growth. \n \n \n \n \n   \n \n \n • \n \n \n NIM stood at 6.4% in 2Q25 (vs. 7.2% in 2Q24 and 6.6% in 1Q25). The 2Q24 NIM was positively affected by the acceleration of fair value adjustment amortisation on material prepaid exposures. This resulted in a temporarily higher NIM compared to Ameriabank's standalone NIM of 6.8% in the same period. On a standalone basis, the y-o-y decrease primarily reflects a combination of lower loan yield and a higher cost of funds. The latter was driven both by an increase in the cost of client deposits, and by the attraction of IFI funding to support loan growth and targeted customer acquisition. \n \n \n \n \n • \n \n \n Net fee and commission income was GEL 23.9m in 2Q25, down 17.7% y-o-y and up 16.6% q-o-q. The y-o-y decline reflects a high base in 2Q24 due to a significant GEL 9.8m advisory fee recognised in that period; excluding this, underlying growth would have been c.24%. The q-o-q increase was driven by higher fees from settlement operations - particularly card transactions - as well as guarantees and brokerage services. \n \n \n \n \n • \n \n \n Net foreign currency gain stood at GEL 37.9m in 2Q25, down 1.9% y-o-y and up 11.3% q-o-q. The y-o-y decline mainly reflects reduced dealing activity against a high prior-year base. The improvement compared with the prior quarter was mainly driven by increased income benefiting from EUR/USD exchange rate volatility. \n \n \n \n \n • \n \n \n Operating expenses stood at GEL 127.1m , up 3.1% y-o-y and up 5.5% q-o-q. Administrative expenses rose 42.0% y-o-y, mainly reflecting investments in business growth, active marketing campaigns, and employee engagement initiatives. This was partially offset by lower staff costs in the y-o-y perspective. The q-o-q increase was predominantly driven by staff costs. \n \n \n \n \n • \n \n \n Cost of credit risk ratio stood at 0.3% in 2Q25 (3.1% in 2Q24 and 0.2% in 1Q25). The high 2Q24 figure was due to an initial ECL charge of GEL 49.2m as the Group was required to treat the newly acquired portfolio as if it were a new loan issuance, thus necessitating a forward-looking ECL charge on Day 2 of the combination even though there had been no actual deterioration in credit quality. The loan portfolio quality remained robust during the second quarter. \n \n \n \n \n • \n \n \n Overall, AFS generated GEL 95.8m in profit in 2Q25, up 197.3% y-o-y versus 2Q24 profit before one-off items, delivering an ROAE of 20.1%. Excluding the 2Q24 initial ECL charge, 2Q25 profit would have been up 17.7% compared to 2Q24 profit before one-offs, demonstrating a solid underlying performance. On a quarter-on-quarter basis, profit was broadly flat, mainly on lower operating income growth coupled with higher operating expenses. \n \n \n \n \n Portfolio highlights \n \n \n \n \n • \n \n \n Loans to customers, factoring and finance lease receivables stood at GEL 10,342.0m as at 30 June 2025, up 37.6% y-o-y and up 10.2% q-o-q in cc, with broad-based growth across both Corporate and Retail Segments. As a result, Ameriabank maintained its leading position in Armenia's loan market with the highest market share of 21.1% as at 30 June 2025 (up 1.3 ppts y-o-y and up 0.9 ppts y-o-y). \n \n \n \n \n   \n \n \n • \n \n \n 58.0% of the loan book was denominated in Armenian Drams as at 30 June 2025 (59.5% as at 30 June 2024 and 59.5% as at 31 March 2025). \n \n \n \n \n • \n \n \n Client deposits and notes stood at GEL 8,379.7m as at 30 June 2025, up 26.1% y-o-y and up 6.4% q-o-q in cc. As a result, Ameriabank's market share by total deposits (including issued local bonds) was up 1.2 ppts y-o-y to 19.1% as at 30 June 2025 (up 0.6% q-o-q). \n \n \n \n \n   \n \n \n • \n \n \n 57.0% of client deposits and notes were denominated in Armenian Drams as at 30 June 2025 (51.3% as at 30 June 2024 and 55.9% as at 31 March 2025). \n \n \n \n \n • \n \n \n Armenian Financial Services maintains a diversified funding structure with customer deposits and local debt securities representing 76.0% of total liabilities and the ratio of loans to customer deposits + local debt securities and DFI funding standing at 100.2% as at 30 June 2025. \n \n \n \n \n Liquidity \n \n \n \n \n • \n \n \n Ameriabank has maintained a strong liquidity position, with CBA Liquidity Coverage Ratio (LCR) at 173.8% and CBA Net Stable Funding Ratio (NSFR) at 117.2% as at 30 June 2025, well above the minimum regulatory requirements of 100%. \n \n \n \n \n Capital position \n \n \n \n \n • \n \n \n As at 30 June 2025, Ameriabank's capital ratios were above the minimum requirements. Total capital was enhanced in late June, though with a limited impact on the monthly capital adequacy ratio. However, in July, the total capital buffer increased to 0.3 ppts, driven by the recognition of subordinated debt as capital. Additionally, we have secured further subordinated debt: EUR 10 million was included in Tier 2 capital in early August, and another EUR 7.4 million is pending formal approval from the CBA. \n The movement in capital adequacy ratios in 2Q25 and the potential impact of a 10% devaluation of AMD is as follows. \n \n \n \n \n   \n \n \n \n \n \n \n \n 31 Mar 2025 \n \n \n 2Q25 \n profit \n \n \n Business growth \n \n \n Currency impact \n \n \n Dividend payment \n \n \n Regulatory deductions \n \n \n Other \n \n \n 30 Jun \n 2025 \n \n \n   \n \n \n   \n \n \n   \n \n \n Minimum requirement \n \n \n Buffer above min requirement \n \n \n Potential impact \n of a 10% AMD devaluation \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n CET 1 capital adequacy \n \n \n 14.7% \n \n \n 1.1% \n \n \n -1.0% \n \n \n 0.0% \n \n \n 0.0% \n \n \n -0.1% \n \n \n 0.0% \n \n \n 14.9% \n \n \n \n \n \n \n \n \n \n \n \n 12.0% \n \n \n 2.9% \n \n \n -0.6% \n \n \n   \n \n \n \n \n Tier 1 capital adequacy \n \n \n 14.7% \n \n \n 1.1% \n \n \n -1.0% \n \n \n 0.0% \n \n \n 0.0% \n \n \n -0.1% \n \n \n 0.0% \n \n \n 14.9% \n \n \n \n \n \n \n \n \n \n \n \n 14.1% \n \n \n 0.8% \n \n \n -0.6% \n \n \n   \n \n \n \n \n Total capital adequacy \n \n \n 16.8% \n \n \n 1.1% \n \n \n -1.0% \n \n \n 0.1% \n \n \n 0.0% \n \n \n -0.1% \n \n \n 0.0% \n \n \n 16.9% \n \n \n \n \n \n \n \n \n \n \n \n 16.8% \n \n \n 0.1% \n \n \n -0.6% \n \n \n   \n \n \n \n \n \n \n   \n Ameriabank: unaudited standalone financial information (not included in the consolidated results) \n The following table is presented for information purposes only to show the performance of Ameriabank. It has been prepared consistently with the accounting policies adopted by the Group in preparing its consolidated financial statements. \n \n \n \n \n GEL thousands \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n Change \n y-o-y \n \n \n 1Q25 \n \n \n Change \n q-o-q \n \n \n \n \n \n 1H25 \n \n \n 1H24 \n \n \n Change \n y-o-y \n \n \n \n \n INCOME STATEMENT HIGHLIGHTS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest income  \n \n \n  316,741 \n \n \n  240,395 \n \n \n 31.8% \n \n \n  304,047 \n \n \n 4.2% \n \n \n \n \n \n  620,788 \n \n \n  457,575 \n \n \n 35.7% \n \n \n \n \n Interest expense  \n \n \n  (122,973) \n \n \n  (83,835) \n \n \n 46.7% \n \n \n  (112,368) \n \n \n 9.4% \n \n \n \n \n \n  (235,340) \n \n \n  (162,023) \n \n \n 45.3% \n \n \n \n \n Net interest income  \n \n \n  193,768 \n \n \n  156,560 \n \n \n 23.8% \n \n \n  191,679 \n \n \n 1.1% \n \n \n   \n \n \n  385,448 \n \n \n  295,552 \n \n \n 30.4% \n \n \n \n \n Net fee and commission income  \n \n \n  23,901 \n \n \n  28,772 \n \n \n -16.9% \n \n \n  20,491 \n \n \n 16.6% \n \n \n \n \n \n  44,392 \n \n \n  47,392 \n \n \n -6.3% \n \n \n \n \n Net foreign currency gain \n \n \n  36,395 \n \n \n  41,853 \n \n \n -13.0% \n \n \n  32,723 \n \n \n 11.2% \n \n \n \n \n \n  69,118 \n \n \n  72,978 \n \n \n -5.3% \n \n \n \n \n Net other income \n \n \n  379 \n \n \n  1,083 \n \n \n -65.0% \n \n \n  3,150 \n \n \n -88.0% \n \n \n \n \n \n  3,530 \n \n \n  2,731 \n \n \n 29.3% \n \n \n \n \n Operating income \n \n \n  254,443 \n \n \n  228,268 \n \n \n 11.5% \n \n \n  248,043 \n \n \n 2.6% \n \n \n   \n \n \n  502,488 \n \n \n  418,653 \n \n \n 20.0% \n \n \n \n \n Salaries and other employee benefits \n \n \n  (73,697) \n \n \n  (78,897) \n \n \n -6.6% \n \n \n  (68,584) \n \n \n 7.5% \n \n \n   \n \n \n  (142,281) \n \n \n  (144,055) \n \n \n -1.2% \n \n \n \n \n Administrative expenses \n \n \n  (18,625) \n \n \n  (13,078) \n \n \n 42.4% \n \n \n  (17,851) \n \n \n 4.3% \n \n \n \n \n \n  (36,476) \n \n \n  (25,839) \n \n \n 41.2% \n \n \n \n \n Depreciation, amortisation and impairment \n \n \n  (11,759) \n \n \n  (8,847) \n \n \n 32.9% \n \n \n  (10,818) \n \n \n 8.7% \n \n \n \n \n \n  (22,576) \n \n \n  (16,795) \n \n \n 34.4% \n \n \n \n \n Other operating expenses  \n \n \n  (1,038) \n \n \n  (1,663) \n \n \n -37.6% \n \n \n  (2,006) \n \n \n -48.3% \n \n \n \n \n \n  (3,045) \n \n \n  (2,784) \n \n \n 9.4% \n \n \n \n \n Operating expenses  \n \n \n  (105,119) \n \n \n (102,485) \n \n \n 2.6% \n \n \n  (99,259) \n \n \n 5.9% \n \n \n   \n \n \n  (204,378) \n \n \n  (189,473) \n \n \n 7.9% \n \n \n \n \n Profit from associates \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n  -   \n \n \n - \n \n \n \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n \n \n Operating income before cost of risk \n \n \n  149,324 \n \n \n  125,783 \n \n \n 18.7% \n \n \n  148,784 \n \n \n 0.4% \n \n \n   \n \n \n  298,110 \n \n \n  229,180 \n \n \n 30.1% \n \n \n \n \n Cost of risk  \n \n \n  (5,783) \n \n \n  (470) \n \n \n NMF \n \n \n  (9,877) \n \n \n -41.4% \n \n \n \n \n \n  (15,660) \n \n \n  (780) \n \n \n NMF \n \n \n \n \n Profit before income tax expense \n \n \n  143,541 \n \n \n  125,313 \n \n \n 14.5% \n \n \n  138,907 \n \n \n 3.3% \n \n \n   \n \n \n  282,450 \n \n \n  228,400 \n \n \n 23.7% \n \n \n \n \n Income tax expense \n \n \n  (26,781) \n \n \n  (22,938) \n \n \n 16.8% \n \n \n  (25,014) \n \n \n 7.1% \n \n \n \n \n \n  (51,795) \n \n \n  (41,764) \n \n \n 24.0% \n \n \n \n \n Profit before for one-off items \n \n \n  116,760 \n \n \n  102,375 \n \n \n 14.1% \n \n \n  113,893 \n \n \n 2.5% \n \n \n   \n \n \n  230,655 \n \n \n  186,636 \n \n \n 23.6% \n \n \n \n \n One-off items \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n  -   \n \n \n - \n \n \n \n \n \n  -   \n \n \n  -   \n \n \n - \n \n \n \n \n Profit  \n \n \n  116,760 \n \n \n  102,375 \n \n \n 14.1% \n \n \n  113,893 \n \n \n 2.5% \n \n \n   \n \n \n  230,655 \n \n \n  186,636 \n \n \n 23.6% \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n BALANCE SHEET HIGHLIGHTS \n \n \n Jun-25 \n \n \n Jun-24 \n \n \n Change y-o-y \n \n \n Mar-25 \n \n \n Change q-o-q \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Liquid assets \n \n \n  3,567,535 \n \n \n  3,049,714 \n \n \n 17.0% \n \n \n  3,495,031 \n \n \n 2.1% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Cash and cash equivalents \n \n \n  1,271,871 \n \n \n  963,562 \n \n \n 32.0% \n \n \n  1,060,250 \n \n \n 20.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Amounts due from credit institutions \n \n \n  831,912 \n \n \n  820,104 \n \n \n 1.4% \n \n \n  985,407 \n \n \n -15.6% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n     Investment securities \n \n \n  1,463,752 \n \n \n  1,266,048 \n \n \n 15.6% \n \n \n  1,449,374 \n \n \n 1.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Loans to customers, finance lease and factoring receivables \n \n \n 10,350,553 \n \n \n  7,735,526 \n \n \n 33.8% \n \n \n  9,347,802 \n \n \n 10.7% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Property and equipment \n \n \n  75,477 \n \n \n  71,591 \n \n \n 5.4% \n \n \n  69,321 \n \n \n 8.9% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n All remaining assets \n \n \n  313,163 \n \n \n  238,307 \n \n \n 31.4% \n \n \n  297,511 \n \n \n 5.3% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total assets \n \n \n 14,306,728 \n \n \n 11,095,138 \n \n \n 28.9% \n \n \n 13,209,665 \n \n \n 8.3% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Client deposits and notes \n \n \n  8,379,668 \n \n \n  6,851,090 \n \n \n 22.3% \n \n \n  7,866,942 \n \n \n 6.5% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Amounts owed to credit institutions \n \n \n  2,438,643 \n \n \n  1,271,190 \n \n \n 91.8% \n \n \n  1,863,290 \n \n \n 30.9% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Debt securities issued \n \n \n  1,171,408 \n \n \n  1,083,559 \n \n \n 8.1% \n \n \n  1,096,307 \n \n \n 6.9% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n All remaining liabilities \n \n \n  273,552 \n \n \n  269,187 \n \n \n 1.6% \n \n \n  458,717 \n \n \n -40.4% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total liabilities \n \n \n 12,263,271 \n \n \n  9,475,026 \n \n \n 29.4% \n \n \n 11,285,256 \n \n \n 8.7% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Total equity \n \n \n  2,043,457 \n \n \n  1,620,112 \n \n \n 26.1% \n \n \n  1,924,409 \n \n \n 6.2% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n KEY RATIOS [7] \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n   \n \n \n 1Q25 \n \n \n   \n \n \n   \n \n \n 1H25 \n \n \n 1H24 \n \n \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n ROAA \n \n \n 3.4% \n \n \n 3.9% \n \n \n   \n \n \n 3.5% \n \n \n   \n \n \n   \n \n \n 3.4% \n \n \n 3.7% \n \n \n   \n \n \n \n \n ROAE \n \n \n 23.6% \n \n \n 27.0% \n \n \n   \n \n \n 24.7% \n \n \n   \n \n \n   \n \n \n 24.1% \n \n \n 25.9% \n \n \n   \n \n \n \n \n Net interest margin \n \n \n 6.4% \n \n \n 6.8% \n \n \n   \n \n \n 6.7% \n \n \n   \n \n \n   \n \n \n 6.5% \n \n \n 6.7% \n \n \n   \n \n \n \n \n Loan yield \n \n \n 11.3% \n \n \n 11.4% \n \n \n   \n \n \n 11.5% \n \n \n   \n \n \n   \n \n \n 11.3% \n \n \n 11.2% \n \n \n   \n \n \n \n \n Cost of funds \n \n \n 4.3% \n \n \n 3.8% \n \n \n   \n \n \n 4.1% \n \n \n   \n \n \n   \n \n \n 4.2% \n \n \n 3.8% \n \n \n   \n \n \n \n \n Cost:income ratio \n \n \n 41.3% \n \n \n 44.9% \n \n \n   \n \n \n 40.0% \n \n \n   \n \n \n   \n \n \n 40.7% \n \n \n 45.3% \n \n \n   \n \n \n \n \n Cost of credit risk ratio \n \n \n 0.3% \n \n \n 0.0% \n \n \n   \n \n \n 0.3% \n \n \n   \n \n \n   \n \n \n 0.3% \n \n \n 0.0% \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other businesses \n The Business Division ' Other Businesses ' includes JSC Belarusky Narodny Bank (BNB) serving retail and SME clients in Belarus, JSC Digital Area - a digital ecosystem in Georgia including e-commerce, ticketing, and inventory management SaaS, Bank of Georgia Group PLC - the holding company, and other small entities and intragroup eliminations.  \n \n \n \n \n GEL thousands \n \n \n 2Q25 \n \n \n 2Q24 \n \n \n Change \n y-o-y \n \n \n 1Q25 \n \n \n Change \n q-o-q \n \n \n \n \n \n 1H25 \n \n \n 1H24 \n \n \n Change \n y-o-y \n \n \n \n \n INCOME STATEMENT HIGHLIGHTS \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Interest income  \n \n \n  28,392 \n \n \n  21,275 \n \n \n 33.5% \n \n \n  24,224 \n \n \n 17.2% \n \n \n \n \n \n  52,616 \n \n \n  41,106 \n \n \n 28.0% \n \n \n \n \n Interest expense  \n \n \n  (19,414) \n \n \n  (6,400) \n \n \n NMF \n \n \n  (12,844) \n \n \n 51.2% \n \n \n \n \n \n  (32,258) \n \n \n  (10,840) \n \n \n 197.6% \n \n \n \n \n Net interest income  \n \n \n  8,978 \n \n \n  14,875 \n \n \n -39.6% \n \n \n  11,380 \n \n \n -21.1% \n \n \n   \n \n \n  20,358 \n \n \n  30,266 \n \n \n -32.7% \n \n \n \n \n Net fee and commission income  \n \n \n  3,649 \n \n \n  1,172 \n \n \n NMF \n \n \n  3,626 \n \n \n 0.6% \n \n \n \n \n \n  7,275 \n \n \n  1,623 \n \n \n NMF \n \n \n \n \n Net foreign currency gain \n \n \n  23,424 \n \n \n  14,133 \n \n \n 65.7% \n \n \n  28,846 \n \n \n -18.8% \n \n \n \n \n \n  52,270 \n \n \n  23,043 \n \n \n 126.8% \n \n \n \n \n Net other income \n \n \n  2,707 \n \n \n  14,948 \n \n \n -81.9% \n \n \n  1,160 \n \n \n 133.4% \n \n \n \n \n \n  3,867 \n \n \n  15,363 \n \n \n -74.8% \n \n \n \n \n Operating income \n \n \n  38,758 \n \n \n  45,128 \n \n \n -14.1% \n \n \n  45,012 \n \n \n -13.9% \n \n \n   \n \n \n  83,770 \n \n \n  70,295 \n \n \n 19.2% \n \n \n \n \n Salaries and other employee benefits \n \n \n  (16,111) \n \n \n  (11,039) \n \n \n 45.9% \n \n \n  (13,683) \n \n \n 17.7% \n \n \n \n \n \n  (29,794) \n \n \n  (21,095) \n \n \n 41.2% \n \n \n \n \n Administrative expenses \n \n \n  (8,318) \n \n \n  (7,123) \n \n \n 16.8% \n \n \n  (8,727) \n \n \n -4.7% \n \n \n \n \n \n  (17,045) \n \n \n  (13,825) \n \n \n 23.3% \n \n \n \n \n Depreciation, amortisation and impairment \n \n \n  (3,079) \n \n \n  (2,540) \n \n \n 21.2% \n \n \n  (2,825) \n \n \n 9.0% \n \n \n \n \n \n  (5,904) \n \n \n  (5,197) \n \n \n 13.6% \n \n \n \n \n Other operating expenses  \n \n \n  (333) \n \n \n  (315) \n \n \n 5.7% \n \n \n  (342) \n \n \n -2.6% \n \n \n \n \n \n  (675) \n \n \n  (677) \n \n \n ...

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