Earnings Overview

Lion Finance Group, the holding company of Bank of Georgia and Ameriabank, posted second‑quarter profit of 618.8 million Georgian lari, a 20.6% year‑over‑year rise, which lifted first‑half profit to 1.20 billion lari, up 17.3% YoY. The half‑year return on average equity was 27.2%.

Dividends and Share Buyback

The board approved a second‑quarter dividend of 3.05 lari per share, bringing the cumulative H1 dividend to 5.90 lari per share, a 15.7% increase over the prior year. In addition, a share buyback and cancellation programme of 59.0 million lari was announced.

Income and Margins

Operating income before cost of risk grew 19.6% YoY to 1.55 billion lari in the first half, driven by a larger active customer base and balance sheet expansion. Net operating income rose 19.5% YoY to 1.24 billion lari in Q2 and 17.3% to 2.37 billion lari for the half, with growth led by net interest income across both Georgian and Armenian operations. Net interest margin held at 6.3% in both Q2 and the first half, up 20 basis points and 30 basis points respectively YoY, supported by a 40‑basis‑point improvement in Georgia to 6.4%.

Balance Sheet Growth

The loan book reached 44.43 billion lari as of 30 June, up 23.0% YoY in constant currency, reflecting 17.1% growth in Georgia and 36.8% growth in Armenia. Client deposits and notes totaled 43.66 billion lari, up 26.8% in constant currency; Georgian deposits rose 24.2% (or 18.4% excluding Ministry of Finance deposits) and Armenian deposits increased 37.1%.

Asset Quality

Cost of credit risk remained low at 0.6% in Q2. The non‑performing loan ratio rose modestly to 2.1% from 1.9% a year earlier, indicating a still‑healthy asset quality profile.

Operating Expenses

Operating expenses increased 12.8% YoY in Q2 and 13.2% for the first half, reflecting higher staffing and infrastructure costs associated with the expanding loan and deposit base.

Management Commentary

CEO Archil Gachechiladze highlighted that Georgia and Armenia continue to be among the region’s fastest‑growing and prudently managed economies, describing them as “resilient” and underpinned by strong macro‑economic fundamentals. The group raised its 2026 GDP growth forecast for Georgia to 7.5% on the basis of the strong first‑half performance, while maintaining a 5.5% forecast for Armenia, noting limited direct exposure to recent Middle‑East escalations and diversified external inflows.