Lion Finance Group Shares Slide Despite Strong 2Q25 Results

Lion Finance Group PLC (LON:BGEO) shares dropped significantly in early Wednesday trading after the company announced its results for H1 and 2Q25.

The financial group delivered a consolidated profit of GEL 513.2 million for the quarter and GEL 1,026.3 million for the first half of 2025.

The company declared a half-year dividend of GEL 5.10 per share, coupled with a GEL 98 million share buyback program for the period ending June 30, 2025. This signals strong confidence in Lion Finance Group's financial health and future prospects.

However, shares fell as low as 6,945p at the start of today's session. The stock is currently down over 3% at 7,385p.

2Q25 consolidated profit before one-off items increased by 19.4% year-on-year to GEL 513.2 million, resulting in a return on average equity of 27.2%.

For the first half of 2025, consolidated profit before one-off items rose by 28.4% year-on-year to GEL 1,026.3 million, with a return on average equity of 27.9%.

These results are said to reflect the strength of Lion Finance Group’s core business divisions. Bank of Georgia's Retail Digital Monthly Active Users (Digital MAU) grew by 15.5% year-on-year to 1.7 million, while Ameriabank's Retail Digital MAU surged by 54.5%, reaching 267,000.

This demonstrates the group's success in attracting and engaging customers through digital channels.

Bank of Georgia maintained its record-high Net Promoter Score (NPS) of 73 in 2Q25, indicating strong customer satisfaction. Ameriabank also recorded a high average NPS of 75 for the quarter.

The loan book reached GEL 36,530.4 million as of June 30, 2025, up 22.5% year-on-year in constant currency. Growth was fueled by strong loan book expansion across both Georgian (GFS) and Armenian (AFS) operations, with increases of 17.0% and 37.6% respectively. Client deposits and notes totaled GEL 34,789.7 million, reflecting a 14.7% year-on-year increase in constant currency.

Asset quality remained strong, with the Group's cost of credit risk ratio at 0.5% in 2Q25 and the NPL ratio down to 1.9% as of June 30, 2025. This indicates effective risk management and a healthy loan portfolio.

Operating income increased by 9.5% year-on-year and 6.2% quarter-on-quarter to GEL 1,039.1 million in 2Q25. This growth was primarily driven by higher net interest income generated by both GFS and AFS, showcasing the benefit of increased lending activity.

Operating expenses increased by 12.1% year-on-year to GEL 378.8 million in 2Q25, primarily driven by GFS due to increased salaries and other employee benefits. Excluding one-off items, operating expenses would have increased by 10.1% year-on-year. Efficiency improvements are expected to continue.

As of June 30, 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. Ameriabank's capital ratios were also above the minimum requirements.

CEO Archil Gachechiladze stated, “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.”

He further added, “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.”

Lion Finance Group has revised its full-year real GDP growth forecasts for both Georgia and Armenia, reflecting stronger-than-expected economic growth and resilience in these markets. The company now expects Georgia's economy to grow by 7.5% and Armenia's economy to grow by 5.0%.