Lion Finance Posts Strong Q2 Growth, Announces Dividend and Share Buyback

Lion Finance Group (LSE:BGEO) reported a 19.4% increase in second-quarter profit, reaching GEL 513.2 million, supported by robust loan growth. Half-year profit rose 28.4% year-on-year to GEL 1.03 billion, with a return on average equity of 27.9%. Operating income for the quarter climbed 9.5% to GEL 1.04 billion, driven mainly by higher net interest income in Georgia and Armenia.

The group approved a half-year dividend of GEL 5.10 per share and a GEL 98 million share buyback. Operating expenses increased 12.1% to GEL 378.8 million, largely due to higher staff costs and contributions to Georgia’s new resolution fund. The loan book expanded 22.5% year-on-year to GEL 36.53 billion, with client deposits up 14.7% to GEL 34.79 billion. Asset quality remained stable, with a second-quarter cost of credit risk ratio of 0.5% and a non-performing loan ratio of 1.9%.

In Georgia, net interest income grew 17.5% to GEL 514.5 million, while profit rose 7.6% to GEL 409.9 million. Armenian operations saw net interest income increase 16.3% to GEL 192.3 million, with profit surging 197.3% to GEL 95.8 million, helped by a sharp reduction in the cost of risk.

The board announced a shift to a quarterly dividend schedule, maintaining a target payout range of 30%-50% of annual profits. Ex-dividend is set for Sept. 25, with payment on Oct. 10. Economic growth in the region remains strong, with GDP in Georgia up 7.1% and Armenia 8.1% in Q2, prompting upward revisions of 2025 forecasts to 7.5% and 5%, respectively.

About Lion Finance Group

Lion Finance Group operates in Georgia and Armenia, offering banking and financial services including lending, deposits, and investment solutions. The group focuses on sustainable growth, asset quality management, and delivering consistent shareholder returns.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.