Lion Finance Q3 profit rises on customer growth, loan book expansion; ups dividend
Lion Finance Q3 profit rises on customer growth, loan book expansion; ups dividend
Overview
UK-based financial services group's Q3 profit rose 21% and basic EPS up 22.1% y-o-y
Q3 operating income before cost of risk rose 25.4% y-o-y, driven by customer growth
Company raised quarterly dividend and extended GEL 62 mln share buyback program
Outlook
Lion Finance targets c.15% annual loan book growth over the medium term
Company aims for 20%+ return on average equity in the medium term
Lion Finance expects a 30-50% payout ratio of annual profits through dividends and buybacks
Result Drivers
CUSTOMER GROWTH - Co said growth in active customer base and larger balance sheet supported higher operating income and profit
NET INTEREST AND FEE INCOME - Net interest income and fee and commission income from both Georgian and Armenian operations were primary drivers of revenue growth
LOAN BOOK EXPANSION - Loan book growth in both Georgia and Armenia contributed to overall performance
Company press release: ID:nRSD6823Ba
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS |
| GEL 15.42 |
|
Q3 Net Interest Income |
| GEL 941.74 mln |
|
Q3 Basic EPS |
| GEL 15.57 |
|
Q3 Net Fee & Commission Income |
| GEL 203.53 mln |
|
Q3 Operating Income |
| GEL 1.29 bln |
|
Q3 Pretax Profit |
| GEL 790.91 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Lion Finance Group PLC is GBp14,450.00, about 19.3% above its November 3 closing price of GBp12,110.00
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Nov 3 - Mexico's Banorte posts 20% jump in Q3 profit as lending growth accelerates
Nov 3 - Brazil's Itau keeps bad-loan ratio contained, meets profit forecasts
Nov 3 - Hamilton Lane raises full-year dividend target by 11%
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)