REG - Lion Finance Grp PLC - 1st Quarter Results
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RNS Number : 7249I Lion Finance Group PLC 15 May 2025
Contents
1Q25 results (#_Toc198063359) (#_Toc198063359)
Earnings call on 15 May 2025, 14:00 BST (#_Toc198063360) (#_Toc198063360)
Segmentation guide (#_Toc198063361) (#_Toc198063361)
CEO statement (#_Toc198063362) (#_Toc198063362)
Macroeconomic developments: Georgia (#_Toc198063363) (#_Toc198063363)
Macroeconomic developments: Armenia (#_Toc198063364) (#_Toc198063364)
Delivering on our strategic priorities (#_Toc198063365) (#_Toc198063365)
1Q25 unaudited consolidated results (#_Toc198063366) (#_Toc198063366)
Business Division results (#_Toc198063367) (#_Toc198063367)
Georgian Financial Services (GFS) (#_Toc198063368) (#_Toc198063368)
Armenian Financial Services (AFS) (#_Toc198063369) (#_Toc198063369)
Ameriabank: unaudited standalone financial information (not included in the
consolidated results) (#_Toc198063370) (#_Toc198063370)
Other Businesses (#_Toc198063371) (#_Toc198063371)
Unaudited consolidated financial information (#_Toc198063372) (#_Toc198063372)
Additional information (#_Toc198063373) (#_Toc198063373)
Glossary (#_Toc198063374) (#_Toc198063374)
Lion Finance Group PLC profile (#_Toc198063375) (#_Toc198063375)
Further information (#_Toc198063376) (#_Toc198063376)
Forward-looking statements (#_Toc198063377) (#_Toc198063377)
1Q25 results
Lion Finance Group PLC announces the Group's consolidated financial results
for the first quarter of 2025. Unless otherwise indicated, all figures in this
announcement relate to 1Q25, with year-on-year comparisons to 1Q24 and
quarter-on-quarter comparisons to 4Q24, adjusted for one-off items.
The results are based on UK adopted international accounting standards, are
unaudited and derived from management accounts.
Earnings call on 15 May 2025, 14:00 BST
https://bankofgeorgia.zoom.us/j/94089360555
(https://bankofgeorgia.zoom.us/j/94089360555)
Webinar ID: 940 8936 0555
Passcode: 230839
Segmentation guide
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.
· GFS mainly comprises JSC Bank of Georgia and the investment bank
JSC Galt and Taggart
· AFS includes Ameriabank CJSC
· 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.
Lion Finance Group PLC delivers 1Q25 consolidated profit before one-off
items 1 (#_ftn1) of GEL 513.1m, up 39.0% year-on-year
The Group posted a return on average equity (ROAE) of 28.7% in 1Q25.
· The Group's loan book increased by 23.2% y-o-y to GEL 34,137.1m
as at 31 March 2025 (up 20.8% y-o-y in constant currency), driven by robust
growth in both the Georgian and Armenian businesses.
· As at 31 March 2025, Bank of Georgia's Digital MAU among retail
customers amounted to 1.6 million individuals (up 17.1% y-o-y), while
Ameriabank's - 245 thousand individuals (up 53.1% y-o-y). Unlocking the upside
potential in the mass retail segment in Armenia remains one of the priorities
for the Group.
CEO statement
We began 2025 on a strong footing in our core markets of Georgia and Armenia.
As at 31 March 2025, the Group's total assets reached GEL 53.8 billion,
representing a y-o-y increase of 26.7%. Book value per share also rose to GEL
170.99, up 25.8% y-o-y and up 5.1% q-o-q.
While global economic and geopolitical developments, such as shifts in trade
policies and the situation in Ukraine, continue to make headlines, we remain
confident in the resilience of our core markets. Our analysis indicates
minimal direct impact on Georgia and Armenia from potential US tariffs, and
the opportunities presented by the Middle Corridor connecting Asia and Europe
offer significant medium-to-long-term upside for the region. The macroeconomic
environments in both Georgia and Armenia are creating a favorable backdrop for
our operations. In Georgia, the economy's performance has surpassed
expectations, with real GDP growth at 9.3% y-o-y in the first quarter of 2025.
This strong showing has led us to increase our full-year GDP growth forecast
to 6.8%. Furthermore, the Georgian Lari has appreciated by 2% against the US
dollar in the first four months of the year. Armenia's macroeconomic outlook
remains also positive, with a projected 4.5% real GDP growth for 2025.
We continued to deliver on our strategic priorities in Georgia, where we have
built the top-of-mind banking franchise, delivering robust customer franchise
growth and high profitability. I would like to highlight a record-high Net
Promoter Score of 73 achieved in the first quarter - an exceptional result for
a universal bank. Digital product sales continue to rise - in 1Q25, 67% of
retail product sales happened through digital channels, up 10 percentage
points y-o-y. Customer-centricity and technological excellence underpin
everything we do, and this ultimately translates into sustained high
profitability levels. Georgian Financial Services (GFS)'s loan portfolio grew
by 18.0% y-o-y in constant currency, reaching GEL 24,049.1 million as at 31
March 2025. This robust growth supported net interest income expansion,
although net interest margin was pressured by higher-than-usual liquidity
levels maintained following the parliamentary elections in Georgia - this
represents an upside as we deploy excess liquidity moving forward. While fee
and commission income grew at a double-digit rate, rising fee and commission
expenses weighed on net fee and commission growth, which came in at 6.2% y-o-y
in 1Q25. Addressing these expenses is an ongoing priority for the team. The
portfolio quality remained very healthy, and, overall, GFS reported a profit
of GEL 405.1 million in the first quarter, up 9.4% y-o-y.
It has been one year since Ameriabank joined our Group, and together we have
delivered outstanding results. From the outset, we recognised Ameriabank's
significant potential - particularly in the mass retail and SME segments. Key
highlights include a 53.1% y-o-y increase in retail monthly active digital
users to 245,000 individuals as at end of March 2025, reflecting our focus on
developing relevant digital offerings. Net loans also increased significantly,
rising by 30.9% y-o-y in constant currency to GEL 9,337.6 million as at 31
March 2025. Overall, Armenian Financial Services generated a profit of GEL
95.5 million, marking a substantial contribution to the Group's overall
results.
In total, in 1Q25, the Group reported a profit before one-off items of GEL
513.1 million, up 39.0% y-o-y, resulting in a robust ROAE of 28.7%. This
strong beginning reinforces our ability to generate sustainable value for our
shareholders.
Archil Gachechiladze
CEO, Lion Finance Group PLC
14 May 2025
Macroeconomic developments: Georgia
Sustained economic growth momentum
The economy sustained strong growth in 1Q25, with real GDP expanding by 9.3%
y-o-y. Economic activity remained broad-based, with major contributions from
professional services, transport and storage, and IT sectors. Galt &
Taggart forecasts real GDP growth of 6.8% in 2025 - an upward revision from
the previous projection of 5%, reflecting stronger-than-expected performance
in the first quarter. While downside risks remain, including global trade
tensions, regional geopolitical instability, and domestic political strains,
Georgia's demonstrated economic resilience and sound macroeconomic policies
are expected to mitigate these challenges and support continued growth
throughout the year.
Resilient external sector
In 1Q25, merchandise exports rose by 5.7% y-o-y, mainly driven by car
re-exports. Imports of goods also remained robust, increasing by 20.1% y-o-y
during the same period, supported by strong consumption. Tourism revenues saw
slower growth, increasing by just 2.3% y-o-y, due to modest 2.2% y-o-y growth
in international visitors. Money transfers declined by 3.2% y-o-y, reflecting
a continued reduction in migrant-related inflows from Russia, partially offset
by steadily increasing remittances from the EU and the US. Overall, external
sector inflows are expected to remain resilient, supported by a diverse mix of
income sources and geographical regions.
Near-target inflation and prudent monetary policy
Inflation saw a slight increase in 1Q25, driven by rising food and healthcare
prices, partially offset by lower transport and communication service costs.
Headline CPI inflation reached 3.5% y-o-y in March 2025, marginally above the
National Bank of Georgia's (NBG) 3% target. Inflation is expected to remain
above target in the near term, due to the low base effect from the previous
year, but is projected to return to target by year-end. The NBG has maintained
a tight monetary policy, holding the refinancing rate at 8.0% since May 2024,
as inflationary risks persist.
Strong fiscal discipline
In 1Q25, consolidated budget tax revenues remained robust, rising by 5.3%
y-o-y and exceeding the planned level by 2.3%. The Government remains
committed to fiscal consolidation, with the fiscal deficit planned at 2.5% of
GDP in 2025, in line with the 2024 level. The government-debt-to-GDP ratio is
set to decline further to 35.9% in 2025, creating additional fiscal space to
accommodate potential future spending needs.
Healthy bank lending
Bank lending remained strong during 1Q25, increasing by 16.6% y-o-y on a
constant currency basis, following 17.0% y-o-y growth in 2024. Loan
dollarisation stood at 43.1% at the end of March 2025 (down 0.2 ppts q-o-q).
Deposit dollarisation stood at 52.8% in the same period (up 0.1 ppts q-o-q).
The banking sector's credit portfolio remained healthy, with the
non-performing loans to total gross loans ratio, according to the IMF, at 1.5%
at the end of March 2025.
Easing pressures on GEL
The GEL strengthened against the US dollar by 2.0% in the first four months of
2025, following a 4.4% depreciation during the previous year. This recent
appreciation was largely driven by a global weakening of the US dollar.
Looking ahead, resilient external sector inflows and prudent macroeconomic
policies are expected to support the GEL's value in the medium term.
More information on the Georgian economy and financial sector can be found at
Galt & Taggart (https://galtandtaggart.com/en) .
Macroeconomic developments: Armenia
Moderating but steady economic growth
Economic growth continued to moderate in 1Q25, as the temporary effects of
migration and trade-related factors subsided. However, expansionary fiscal
policy and eased monetary conditions continued to support growth momentum. The
preliminary indicator of economic activity increased by 4.1% y-o-y in 1Q25,
following a 5.9% real GDP growth in 2024. We expect real GDP to expand by 4.5%
in 2025, driven by strong public spending and sustained credit growth.
Macroeconomic policies remain prudent, underpinning the resilience of the
Armenian economy.
External sector inflow normalisation and strong Dram
External trade turnover continued to decrease in 1Q25, following a temporary
surge in re-exports of precious metals and stones in 2024. Consequently,
exports of goods declined by 61.8% y-o-y, while imports contracted by 47.9%
y-o-y in 1Q25. Money transfers, however, accelerated to 4.7% y-o-y during the
same period, following a 2.5% y-o-y increase in 2024. This overall resilience
of external sector inflows, coupled with the global weakening of the US
dollar, contributed to a further 1.7% appreciation of the Armenian Dram
against the US currency in the first four months of 2025, adding to a 2.0%
gain in 2024.
Near-target inflation and neutral monetary policy
In early 2025, inflation saw a modest increase, driven by rising food and
service prices. Headline CPI inflation was 3.3% y-o-y in March 2025, slightly
above the Central Bank of Armenia's (CBA) 3% target. The CBA delivered its
latest 25 bps rate cut in February 2025 and has maintained the refinancing
rate at 6.75% since then. With the current refinancing rate considered by the
CBA to be near its neutral level, further rate cuts are less probable in the
baseline outlook.
Continued fiscal expansion
Fiscal policy is expected to remain expansionary in 2025 to accommodate
spending on public infrastructure projects and social support programmes. As a
result, the fiscal deficit is expected to widen to 5.5% of GDP this year (vs.
3.8% in 2024), leading to a notable increase in public debt to 54.5% of GDP
(vs. 50.3% in 2024). While this fiscal expansion supports growth, it could
pose risks to inflation and public debt sustainability. These risks, however,
are mitigated by a demonstrated commitment to fiscal discipline and ongoing
IMF stand-by arrangements.
Sound banking sector
The banking sector in Armenia remains highly profitable, with strong capital
and liquidity positions. Estimated bank lending growth in 1Q25 was 30.2% y-o-y
on a constant currency basis, following a 25.0% y-o-y growth in 2024. Lending
growth was predominantly driven by local currency loans, leading to a further
reduction in loan dollarisation (down 0.4 ppts y-o-y to 33.5% at the end of
March 2025).
Delivering on our strategic priorities
The main bank
Being the main bank in customers' daily lives by leveraging the digital and
payments ecosystems across our core markets.
Bank of Georgia (BOG)
Monthly active customers (Retail) Digital MAU (Retail) Payment MAU (Retail) Share of products sold through retail digital channels (Retail) Monthly active customers (Legal entities) Digital MAU (Legal entities)
2.0 million 1.6 million 1.5 million 67% (1Q25) 115K 93K
+11.0% y-o-y +17.1% y-o-y +15.9% y-o-y +10 ppts y-o-y +15.0% y-o-y +19.6% y-o-y
The share of products sold through retail digital channels stood at 67% in
1Q25, up 10 ppts y-o-y and up 5 ppts q-o-q.
Bank of Georgia continued to develop its payments acquiring business. The
volume of payment transactions in BOG's in-store/online POS terminals was up
31.9% y-o-y and down 6.2% q-o-q in the first quarter of 2025, to GEL 5.3 bn.
BOG's payments acquiring market share stood at 55.9% in March 2025 (up 0.2
ppts y-o-y and down 1.2 ppts q-o-q).
Ameriabank
Ameriabank had 372,000 monthly active retail customers as at 31 March 2025 (up
25.9% y-o-y and up 4.3% q-o-q), of which Digital MAU was 245,000 (up 53.1%
y-o-y and up 5.9% q-o-q).
Excellent customer experience
Anticipating customer needs and wants, and providing relevant products and
services.
Bank of Georgia's Net Promoter Score (NPS) 2 (#_ftn2) reached a new
record-high level of 73 in 1Q25 (61 in 1Q24 and 67 in 3Q24 3 (#_ftn3) ).
Ameriabank measures its NPS internally on a monthly basis. The average score
for 1Q25 was 77 (78 in 1Q24 and 75 in 4Q24).
Profitable growth
Growing the balance sheet profitably and focusing on areas with high growth
potential.
· Georgian Financial Services' loan book grew 19.3% y-o-y and 2.2%
q-o-q, amounting to GEL 24,049.1 million as at 31 March 2025. Growth on a
constant currency basis was 18.0% y-o-y and 2.3% q-o-q.
· Armenian Financial Services' loan book grew 36.7% y-o-y and 0.8%
q-o-q, amounting to GEL 9,337.6 as at 31 March 2025. Growth on a constant
currency basis was 30.9% y-o-y and 1.3% q-o-q.
Our key targets for the medium term are:
· c.15% annual growth of the Group's loan book (the target was
revised up from c.10% following the acquisition of Ameriabank in March 2024)
· 20%+ return on average equity
· 30-50% annual capital distribution ratio (dividends and share
buybacks)
1Q25 unaudited consolidated results
Given the first-time consolidation of Ameriabank's P&L in 2Q24, the y-o-y
growth rates at the Group level have been significantly impacted by the
consolidation. To see the underlying performance of our businesses in Georgia
and Armenia, please see pages 9 to 11 and 12 to 14, respectively.
GEL thousands 1Q25 1Q24 Change 4Q24 Change
y-o-y q-o-q
INCOME STATEMENT HIGHLIGHTS
Net interest income 683,701 437,820 56.2% 663,656 3.0%
Net fee and commission income 138,072 107,802 28.1% 169,098 -18.3%
Net foreign currency gain 145,594 90,540 60.8% 176,350 -17.4%
Net other income 11,285 7,793 44.8% 22,914 -50.8%
Operating income 978,652 643,955 52.0% 1,032,018 -5.2%
Operating expenses (342,893) (188,038) 82.4% (370,611) -7.5%
Profit from associates 271 98 176.5% 369 -26.6%
Operating income before cost of risk 636,030 456,015 39.5% 661,776 -3.9%
Cost of risk (26,913) (22,999) 17.0% (49,142) -45.2%
Profit before income tax expense and one-off items 609,117 433,016 40.7% 612,634 -0.6%
Income tax expense (96,053) (63,949) 50.2% (107,920) -11.0%
Profit before one-off items 513,064 369,067 39.0% 504,714 1.7%
One-off items 4 (#_ftn4) - 668,786 NMF 2,708 NMF
Profit after one-off items 513,064 1,037,853 -50.6% 507,422 1.1%
Basic earnings per share 11.81 23.53 -49.8% 11.75 0.5%
Diluted earnings per share 11.73 23.23 -49.5% 11.51 1.9%
Basic earnings per share adjusted for one-offs 11.81 8.34 41.6% 11.69 1.0%
Diluted earnings per share adjusted for one-offs 11.73 8.24 42.4% 11.44 2.5%
BALANCE SHEET HIGHLIGHTS Mar-25 Mar-24 Change Dec-24 Change
y-o-y q-o-q
Liquid assets 17,490,685 12,841,893 36.2% 16,484,035 6.1%
Cash and cash equivalents 4,151,524 3,154,044 31.6% 3,753,183 10.6%
Amounts due from credit institutions 3,596,111 2,382,079 51.0% 3,278,465 9.7%
Investment securities 9,743,050 7,305,770 33.4% 9,452,387 3.1%
Loans to customers, finance lease and factoring receivables 5 (#_ftn5) 34,137,143 27,698,817 23.2% 33,558,874 1.7%
Property and equipment 554,208 517,156 7.2% 550,097 0.7%
All remaining assets 1,617,265 1,387,688 16.5% 1,614,882 0.1%
Total assets 53,799,301 42,445,554 26.7% 52,207,888 3.0%
Client deposits and notes 33,969,258 28,330,513 19.9% 33,202,010 2.3%
Amounts owed to credit institutions 9,006,255 5,626,533 60.1% 8,680,233 3.8%
Borrowings from DFIs 3,322,500 2,163,086 53.6% 3,301,249 0.6%
Short-term loans from the National Bank of Georgia 3,426,723 1,425,921 140.3% 2,546,574 34.6%
Short-term loans from the Central Bank of Armenia 144,536 179,106 -19.3% 153,588 -5.9%
Loans and deposits from commercial banks 2,112,496 1,858,420 13.7% 2,678,822 -21.1%
Debt securities issued 2,257,270 1,330,631 69.6% 2,255,016 0.1%
All remaining liabilities 1,145,023 1,125,439 1.7% 1,055,402 8.5%
Total liabilities 46,377,806 36,413,116 27.4% 45,192,661 2.6%
Total equity 7,421,495 6,032,438 23.0% 7,015,227 5.8%
Book value per share 170.99 135.96 25.8% 162.77 5.1%
KEY RATIOS 1Q25 1Q24 4Q24
ROAA (adjusted for one-off items)4(, 6 (#_ftn6) ) 3.9% 4.7% 4.0%
ROAE (adjusted for one-off items)4 28.7% 27.7% 29.6%
Net interest margin6 5.9% 6.4% 6.0%
Loan yield6 12.2% 12.4% 12.2%
Liquid assets yield6 4.9% 5.3% 4.8%
Cost of funds6 5.0% 5.0% 4.9%
Cost of client deposits and notes6 4.1% 4.2% 4.0%
Cost of amounts owed to credit Institutions6 7.8% 8.5% 7.8%
Cost of debt securities issued6 7.6% 9.3% 7.5%
Cost:income ratio 35.0% 29.2% 35.9%
NPLs to gross loans 2.0% 1.9% 2.0%
NPL coverage ratio 59.3% 72.3% 63.0%
NPL coverage ratio adjusted for the discounted value of collateral 117.1% 121.4% 119.6%
Cost of credit risk ratio6 0.2% 0.3% 0.5%
Performance highlights
· The Group generated operating income of GEL 978.7m in 1Q25 (up
52.0% y-o-y and down 5.2% q-o-q). A significant growth driver in the y-o-y
perspective was the consolidation of Ameriabank's income statement since the
second quarter of 2024. For reference, GFS operating income grew by 10.8%
y-o-y in 1Q25.
o On a q-o-q basis, the decline in operating income was driven by a decrease
in net non-interest income in GFS and AFS, mainly attributable to a high base
in the prior quarter and the seasonally slower first quarter across both
Business Divisions.
· The Group's operating expenses amounted to GEL 342.9m in 1Q25 (up
82.4% y-o-y and down 7.5% q-o-q). The y-o-y growth was mainly driven by the
consolidation of Ameriabank. GFS also contributed to this growth, recording a
18.2% y-o-y increase, impacted by executive management termination costs and
Bank of Georgia's first-time contribution to the resolution fund 7 (#_ftn7) .
· The Group's profit before one-off items was GEL 513.1m in 1Q25
(up 39.0% y-o-y and up 1.7% q-o-q). ROAE was 28.7% in 1Q25 (27.7% in 1Q24 and
29.6% in 4Q24).
Asset quality
· Loan portfolio quality has remained healthy. Cost of credit risk
ratio was 0.2% in 1Q25 (0.3% in 1Q24 and 0.5% in 4Q24), driven by robust
performances in both the Georgian and Armenian operations. The NPLs to gross
loans ratio also remained flat q-o-q.
· NPL coverage ratio stood at 59.3% (72.3% in 1Q24 and 63.0% in
4Q24), driven by the well-collateralised nature of the NPL portfolio.
GEL thousands, unless otherwise noted Mar-25 Mar-24 Change Dec-24 Change
y-o-y q-o-q
NON-PERFORMING LOANS
Group (consolidated)
NPLs (in GEL thousands) 699,246 537,929 30.0% 666,859 4.9%
NPLs to gross loans 2.0% 1.9% 2.0%
NPL coverage ratio 59.3% 72.3% 63.0%
NPL coverage ratio adjusted for the discounted value of collateral 117.1% 121.4% 119.6%
Georgian Financial Services (GFS)
NPLs to gross loans 2.2% 2.1% 2.2%
NPL coverage ratio 59.3% 68.2% 62.1%
NPL coverage ratio adjusted for the discounted value of collateral 113.2% 116.8% 115.1%
Ameriabank (standalone figures)
NPLs to gross loans 1.5% 1.8% 1.4%
NPL coverage ratio 63.3% 83.2% 69.1%
NPL coverage ratio adjusted for the discounted value of collateral 134.3% 136.2% 137.3%
Portfolio highlights
· Loans to customers, factoring and finance lease receivables
amounted to GEL 34,137.1m as at 31 March 2025, up 23.2% y-o-y (up 20.8% y-o-y
in constant currency). The y-o-y increase is attributable to loan book
expansion across both key Business Divisions: GFS and AFS. GFS recorded a
19.3% y-o-y growth (up 18.0% in constant currency), while AFS recorded a 36.7%
y-o-y loan book expansion (up 30.9% in constant currency).
· Client deposits and notes amounted to GEL 33,969.3m as at 31
March 2025, up 19.9% y-o-y (up 17.3% y-o-y in constant currency). The y-o-y
increase is attributable to growth across both key Business Divisions: GFS and
AFS. GFS recorded a 19.7% y-o-y growth (up 18.0% y-o-y in constant currency),
while AFS recorded a 20.6% y-o-y growth in deposits (up 15.3% y-o-y in
constant currency).
Business Division results
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.
Georgian Financial Services (GFS)
Georgian Financial Services (GFS) mainly comprises JSC Bank of Georgia and
investment bank JSC Galt and Taggart.
GEL thousands 1Q25 1Q24 Change 4Q24 Change
y-o-y q-o-q
INCOME STATEMENT HIGHLIGHTS
Interest income 907,259 745,942 21.6% 879,608 3.1%
Interest expense (425,453) (323,513) 31.5% (408,847) 4.1%
Net interest income 481,806 422,429 14.1% 470,761 2.3%
Net fee and commission income 113,955 107,351 6.2% 126,923 -10.2%
Net foreign currency gain 82,730 81,630 1.3% 107,776 -23.2%
Net other income 6,975 7,378 -5.5% 26,030 -73.2%
Operating income 685,466 618,788 10.8% 731,490 -6.3%
Salaries and other employee benefits (113,596) (94,494) 20.2% (125,107) -9.2%
Administrative expenses (43,244) (41,678) 3.8% (61,018) -29.1%
Depreciation, amortisation and impairment (33,788) (28,834) 17.2% (31,799) 6.3%
Other operating expenses (6,194) (1,494) NMF (1,636) NMF
Operating expenses (196,822) (166,500) 18.2% (219,560) -10.4%
Profit from associates 271 211 28.4% 369 -26.6%
Operating income before cost of risk 488,915 452,499 8.0% 512,299 -4.6%
Cost of risk (17,990) (20,470) -12.1% (47,615) -62.2%
Profit before income tax expense 470,925 432,029 9.0% 464,684 1.3%
Income tax expense (65,856) (61,657) 6.8% (71,415) -7.8%
Profit 405,069 370,372 9.4% 393,269 3.0%
BALANCE SHEET HIGHLIGHTS Mar-25 Mar-24 Change Dec-24 Change
y-o-y q-o-q
Cash and cash equivalents 2,465,779 1,841,171 33.9% 1,832,228 34.6%
Amounts due from credit institutions 2,586,850 1,624,123 59.3% 2,423,723 6.7%
Investment securities 8,180,808 6,057,513 35.1% 7,886,960 3.7%
Net loans, finance lease and factoring receivables 24,049,085 20,159,475 19.3% 23,539,328 2.2%
Loans to customers, finance lease and factoring receivables, LC 13,971,277 11,244,645 24.2% 13,580,484 2.9%
Loans to customers, finance lease and factoring receivables, FC 10,077,808 8,914,830 13.0% 9,958,844 1.2%
Property and equipment 465,059 427,373 8.8% 462,037 0.7%
All remaining assets 1,174,534 1,029,750 14.1% 1,170,001 0.4%
Total assets 38,922,115 31,139,405 25.0% 37,314,277 4.3%
Client deposits and notes 24,820,659 20,743,680 19.7% 24,052,164 3.2%
Client deposits and notes, GEL 11,675,339 9,714,090 20.2% 11,355,443 2.8%
Client deposits and notes, FC 13,145,320 11,029,590 19.2% 12,696,721 3.5%
Amounts owed to credit institutions 7,161,810 4,901,565 46.1% 6,712,420 6.7%
Debt securities issued 1,144,275 441,258 159.3% 1,082,831 5.7%
All remaining liabilities 527,112 720,384 -26.8% 475,032 11.0%
Total liabilities 33,653,856 26,806,887 25.5% 32,322,447 4.1%
Total equity 5,268,259 4,332,518 21.6% 4,991,830 5.5%
Risk-weighted assets (Bank of Georgia) 29,867,785 24,090,667 24.0% 29,080,593 2.7%
KEY RATIOS 1Q25 1Q24 4Q24
ROAA 4.3% 4.9% 4.3%
ROAE 32.0% 31.2% 32.5%
Net interest margin 5.7% 6.3% 5.8%
Loan yield 12.6% 12.5% 12.5%
Loan yield, LC 15.0% 15.0% 15.0%
Loan yield, FC 9.2% 9.2% 9.0%
Cost of funds 5.3% 5.2% 5.2%
Cost of client deposits and notes 4.4% 4.3% 4.3%
Cost of client deposits and notes, LC 7.7% 8.2% 7.6%
Cost of client deposits and notes, FC 1.4% 1.0% 1.3%
Cost of time deposits 6.6% 6.8% 6.6%
Cost of time deposits, LC 10.1% 11.2% 10.0%
Cost of time deposits, FC 2.6% 2.3% 2.5%
Cost of current accounts and demand deposits 2.4% 2.5% 2.3%
Cost of current accounts and demand deposits, LC 5.0% 5.4% 4.7%
Cost of current accounts and demand deposits, FC 0.6% 0.3% 0.6%
Cost:income ratio 28.7% 26.9% 30.0%
Cost of credit risk ratio 0.2% 0.3% 0.6%
Performance highlights
· GFS delivered operating income of GEL 685.5m in 1Q25, up 10.8%
y-o-y and down 6.3% q-o-q. The y-o-y expansion was predominantly driven by net
interest income. The q-o-q decline was due to reduced non-interest income
lines, mainly reflecting seasonal patterns.
· Interest income grew by a robust 21.6% y-o-y. Interest expense
growth was higher, at 31.5% y-o-y, but we have an upside as we deploy the
accumulated excess liquidity.
Net interest income reached GEL 481.8m in 1Q25, growing by 14.1% y-o-y and by
2.3% q-o-q.
o In 1Q25, NIM stood at 5.7%, down 0.6 ppts y-o-y. Although the core lending
margin was slightly up in the y-o-y perspective, the overall margin was
negatively impacted by the higher share of lower-margin liquid assets in the
asset mix.
· Net fee and commission income totalled GEL 114.0m in 1Q25, up
6.2% y-o-y and down 10.2% q-o-q. Although we achieved double-digit y-o-y
growth in fee income, net fee and commission income growth was lower due to
increased payment systems costs and a higher volume of more costly
transactions. The q-o-q decline mainly reflects the seasonally slower quarter.
· Net FX gain amounted to GEL 82.7m in 1Q25, up 1.3% y-o-y and down
23.2% q-o-q. Although FX gains from client-driven inflows experienced a
double-digit y-o-y growth, this was largely offset by a translation loss from
a currency derivative instrument.
· Net other income was GEL 7.0m in 1Q25, down 5.5% y-o-y and down
73.2% q-o-q. The quarterly reduction primarily stems from a high comparison
base, as 4Q24 included a significant revaluation gain on investment property.
· Operating expenses totalled GEL 196.8m in 1Q25, representing a
18.2% y-o-y increase and a 10.4% q-o-q decrease. The y-o-y growth was largely
due to employee costs, which were impacted by the termination costs of
executive management. Additionally, Bank of Georgia's contributions to the
resolution fund6 were recorded for the first time. Excluding these two items
(c. GEL 10 million), operating expenses would have increased by c.12% y-o-y.
The high base of operating expenses in 4Q24, driven by year-end administrative
and staff costs, explains the subsequent quarterly decline, which is largely
due to seasonal factors.
· Cost of credit risk ratio stood at 0.2% in 1Q25 (0.3% in 1Q24 and
0.6% in 4Q24), underpinned by strong results across the whole portfolio.
· GFS delivered a profit of GEL 405.1m in 1Q25, up 9.4% y-o-y and
up 3.0% q-o-q, translating into an ROAE of 32.0%.
Portfolio highlights
Portfolio highlights: Loans to customers, factoring and finance lease
receivables
Mar-25 Mar-24 Change Change y-o-y (constant currency) Dec-24 Change Change q-o-q (constant currency)
y-o-y q-o-q
Total GFS 24,049,085 20,159,475 19.3% 18.0% 23,539,328 2.2% 2.3%
Retail 10,518,379 8,759,417 20.1% 19.5% 10,203,425 3.1% 3.1%
Mortgages 4,599,335 4,080,253 12.7% 11.9% 4,498,321 2.2% 2.3%
Consumer loans 5,185,540 3,994,894 29.8% 29.5% 4,987,399 4.0% 4.0%
Other loans 733,504 684,270 7.2% 6.9% 717,705 2.2% 2.2%
SME 5,114,504 4,657,299 9.8% 8.7% 5,011,108 2.1% 2.1%
CIB 8,416,202 6,736,852 24.9% 22.8% 8,324,795 1.1% 1.5%
Corporate Center - 5,907.00 -100.0% - - -
Portfolio highlights: client deposits and notes
Mar-25 Mar-24 Change Change y-o-y (constant currency) Dec-24 Change Change q-o-q (constant currency)
y-o-y q-o-q
Total GFS 24,820,659 20,743,680 19.7% 18.0% 24,052,164 3.2% 3.6%
Retail 14,850,250 13,118,483 13.2% 11.2% 14,422,359 3.0% 3.5%
SME 2,117,025 1,833,361 15.5% 14.2% 2,146,585 -1.4% -1.2%
CIB 6,663,303 5,371,904 24.0% 22.7% 6,578,858 1.3% 1.5%
Corporate Center 1,268,036 514,597 146.4% 971,961 30.5%
Eliminations (77,955) (94,665) -17.7% (67,599) 15.3%
Loan portfolio quality: cost of credit risk ratio
1Q25 1Q24 4Q24
Total GFS 0.2% 0.3% 0.6%
Retail 0.3% 0.4% 0.5%
SME 0.2% 0.5% -0.4%
CIB 0.1% 0.1% 1.3%
Loan portfolio quality: NPL ratio
Mar-25 Mar-24 Dec-24
Total GFS 2.2% 2.1% 2.2%
Retail 1.5% 1.8% 1.6%
SME 3.5% 3.6% 3.5%
CIB 2.3% 1.5% 2.1%
· Customer lending continued to expand, with GFS's net loans,
factoring, and finance lease receivables reaching GEL 24,049.1m as at 31 March
2025 - up 19.3% y-o-y (up 18.0% in constant currency) and up 2.2% q-o-q (up
2.3% in constant currency). The y-o-y growth was broad-based, led by RB and
CIB, with SME also contributing.
o 58.1% of the loan book was denominated in GEL as at 31 March 2025 (55.8%
as at 31 March 2024 and 57.7% as at 31 December 2024).
· Client deposits and notes reached GEL 24,820.7m as at 31 March
2025 - up 19.7% y-o-y (up 18.0% in constant currency) and up 3.2% q-o-q (up
3.6% in constant currency). The y-o-y growth was broad-based, led by RB and
CIB, with SME also contributing.
o GEL-denominated client deposits made up 47.0% of all client deposits as at
31 March 2025 (46.8% as at 31 March 2024 and 47.2% as at 31 December 2024).
Liquidity
Mar-25 Mar-24 Dec-24
NBG Liquidity Coverage Ratio (Bank of Georgia) 133.5% 122.2% 138.6%
NBG Net Stable Funding Ratio (Bank of Georgia) 131.4% 125.7% 130.7%
· Bank of Georgia's LCR was 133.5% as at 31 March 2025, and the
NSFR stood at 131.4% as at the same date. Both ratios were well above the
regulatory minimum requirement of 100%.
Capital position
· Bank of Georgia continues to operate with solid capital adequacy
levels, following the capital distribution-related deductions from regulatory
capital. As at 31 March 2025, the Bank's Basel III CET1, Tier1, and Total
capital ratios stood at 16.4%, 19.6%, and 21.2%, respectively, all above the
minimum requirements of 15.2%, 17.3%, 20.2%, respectively. The movement in
capital adequacy ratios during the first quarter and the potential impact of a
10% devaluation of GEL is as follows:
31 Dec 2024 1Q25 Business growth Currency impact Capital distribution Tier 1- Tier 2 31 Mar Buffer above min requirement Potential impact
profit 2025 of a 10% GEL devaluation
CET1 capital adequacy 17.1% 1.3% -0.5% 0.0% -1.6% 0.0% 16.4% 1.2% -0.8%
Tier1 capital adequacy 20.5% 1.3% -0.6% 0.0% -1.6% 0.0% 19.6% 2.3% -0.7%
Total capital adequacy 22.1% 1.3% -0.7% 0.0% -1.6% 0.0% 21.2% 1.0% -0.6%
· Bank of Georgia's minimum capital requirements for December 2025
are expected to be 15.2%, 17.3% and 20.2% for CET1, Tier1, and Total capital
ratios respectively.
Armenian Financial Services (AFS)
Armenian Financial Services (AFS) comprises Ameriabank CJSC
GEL thousands 1Q25 4Q24 Change
q-o-q
INCOME STATEMENT HIGHLIGHTS
Interest income 305,924 284,685 7.5%
Interest expense (115,409) (104,643) 10.3%
Net interest income 190,515 180,042 5.8%
Net fee and commission income 20,491 39,781 -48.5%
Net foreign currency gain 34,018 50,712 -32.9%
Net other income 3,150 1,060 197.2%
Operating income 248,174 271,595 -8.6%
Salaries and other employee benefits (85,796) (92,590) -7.3%
Administrative expenses (18,138) (20,458) -11.3%
Depreciation, amortisation and impairment (14,554) (12,988) 12.1%
Other operating expenses (2,006) (2,150) -6.7%
Operating expenses (120,494) (128,186) -6.0%
Profit from associates - - -
Operating income before cost of risk 127,680 143,409 -11.0%
Cost of risk (8,173) (3,533) 131.3%
Profit before income tax expense 119,507 139,876 -14.6%
Income tax expense (23,993) (31,585) -24.0%
Profit before one-off items 95,514 108,291 -11.8%
One-off items 8 (#_ftn8) - 2,708 NMF
Profit 95,514 110,999 -14.0%
BALANCE SHEET HIGHLIGHTS Mar-25 Mar-24 Change Dec-24 Change q-o-q
y-o-y
Cash and cash equivalents 1,060,250 989,930 7.1% 1,409,223 -24.8%
Amounts due from credit institutions 985,407 707,851 39.2% 821,779 19.9%
Investment securities 1,449,374 1,171,359 23.7% 1,447,558 0.1%
Loans to customers, finance lease and factoring receivables 9,337,589 6,832,907 36.7% 9,265,005 0.8%
Loans to customers, finance lease and factoring receivables, LC 5,560,441 3,973,078 40.0% 5,457,699 1.9%
Loans to customers, finance lease and factoring receivables, FC 3,777,148 2,859,829 32.1% 3,807,306 -0.8%
Property and equipment 75,690 78,015 -3.0% 74,671 1.4%
All remaining assets 351,344 273,420 28.5% 352,476 -0.3%
Total assets 13,259,654 10,053,482 31.9% 13,370,712 -0.8%
Client deposits and notes 7,866,942 6,522,822 20.6% 7,949,083 -1.0%
Client deposits and notes, LC 4,401,119 3,126,961 40.7% 4,527,568 -2.8%
Client deposits and notes, FC 3,465,823 3,395,861 2.1% 3,421,515 1.3%
Amounts owed to credit institutions 1,854,080 839,480 120.9% 1,956,445 -5.2%
Debt securities issued 1,096,307 886,862 23.6% 1,155,679 -5.1%
All remaining liabilities 577,770 371,861 55.4% 541,068 6.8%
Total liabilities 11,395,099 8,621,025 32.2% 11,602,275 -1.8%
Total equity 1,864,555 1,432,457 30.2% 1,768,437 5.4%
Risk-weighted assets (Ameriabank) 12,395,897 9,077,704 36.6% 11,685,845 6.1%
KEY RATIOS 1Q25 4Q24
ROAA (adjusted for one-off items)8 2.9% 3.6%
ROAA (unadjusted) 2.9% 3.7%
ROAE (adjusted for one-off items)8 21.1% 25.3%
ROAE (unadjusted) 21.1% 26.0%
Net interest margin 6.6% 6.8%
Loan yield 11.5% 11.6%
Loan yield, LC 13.7% 13.9%
Loan yield, FC 8.4% 8.5%
Cost of funds 4.3% 4.2%
Cost of client deposits and notes 3.3% 3.3%
Cost of client deposits and notes, LC 4.7% 4.9%
Cost of client deposits and notes, FC 1.4% 1.4%
Cost of time deposits 5.8% 6.1%
Cost of time deposits, LC 9.3% 9.5%
Cost of time deposits, FC 2.2% 2.5%
Cost of current accounts and demand deposits 1.7% 1.5%
Cost of current accounts and demand deposits, LC 2.3% 2.1%
Cost of current accounts and demand deposits, FC 0.8% 0.7%
Cost:income ratio 48.6% 47.2%
Cost of credit risk ratio 0.2% 0.3%
Ameriabank was consolidated at the end of March 2024. AFS Income Statement
results were consolidated on the Group level for the first time in 2Q24. To
provide more comparable growth trends with previous periods, the performance
of standalone Ameriabank has been disclosed on page 14: Ameriabank: standalone
financial information. Ameriabank's standalone financial information is
presented for informational purposes only, is different from AFS results due
to fair value adjustments and allocation of certain Group expenses to Business
Divisions, and is not included in the consolidated results.
Performance highlights
In order to provide clearer context regarding underlying performance, we
present Ameriabank's standalone figures, which indicate a 30.3% y-o-y growth
in operating income, mainly driven by strong net interest income generation
(up 37.9% y-o-y), and a 35.2% y-o-y rise in profit to GEL 113.9 million for
the first quarter of 2025, with ROAE standing at 24.7%. See the next page for
standalone results (not consolidated).
AFS performance
· In 1Q25, operating income amounted to GEL 248.2m, down 8.6%
q-o-q. This decline was driven by two primary factors: First, net fee and
commission income decreased from the previous quarter, reflecting a high
comparison base in 4Q24 that included a significant advisory fee of GEL c.
10.3m and an incentive fee of GEL c.5.6m from payment systems. Second, foreign
currency gains declined due to exchange rate volatility during December 2024,
combined with seasonally high client currency conversions in 4Q24. These
decreases were partially offset by a 5.8% growth in net interest income.
· Operating expenses decreased by 6.0% q-o-q to GEL 120.5m. This
was mainly due to lower staff cost, as well as reduced administrative
expenses. The reduced administrative expenses reflect a comparison with a high
level in 4Q24, which included seasonal marketing expenditure and higher
consulting fees.
· Loan portfolio quality remained healthy, with the cost of credit
risk ratio at 0.2% in 1Q25 (0.3% in 4Q24).
· Overall, AFS generated GEL 95.5m in profit in 1Q25, with ROAE
standing at 21.1%.
Portfolio highlights
· Loans to customers, factoring and finance lease receivables stood
at GEL 9,337.6m as at 31 March 2025 (up 36.7% y-o-y and up 0.8% q-o-q). Growth
on a constant currency basis was 30.9% y-o-y and 1.3% q-o-q.
o 59.5% of the loan book was denominated in Armenian Drams as at 31 March
2025 (58.1% as at 31 March 2024 and 58.9% as at 31 December 2024).
o Ameriabank had the highest market share in Armenia by total loans - 20.3%
as at 31 March 2025 (19.5% as at 31 March 2024 and 20.9% as at 31 December
2024) 9 (#_ftn9) .
· Client deposits and notes stood at GEL 7,866.9m as at 31 March
2025 (up 20.6% y-o-y and down 1.0% q-o-q). On a constant currency basis,
deposits were up 15.3% y-o-y and down 0.6% q-o-q.
o 55.9% of client deposits and notes were denominated in Armenian Drams as
at 31 March 2025 (47.9% as at 31 March 2024 and 57.0% as at 31 December 2024).
o Client deposits and notes and local debt securities issued (treated
similarly to deposits) amounted to GEL 8,836.4m, up 21.3% y-o-y and down 1.6%
q-o-q.
o Ameriabank had the second highest market share by total deposits in
Armenia - 18.5% as at 31 March 2025 (18.1% as at 31 March 2024 and 18.5% as at
31 December 2024)9(, 10 (#_ftn10) ).
· Armenian Financial Services maintains a diversified funding
structure with customer deposits and local debt securities representing 77.5%
of total liabilities and the ratio of loans to customer deposits + local debt
securities and DFI funding standing at 95.8% as at 31 March 2025.
Liquidity
· Ameriabank has maintained a strong liquidity position, with CBA
LCR at 229.8% and CBA NSFR at 126.5% as at 31 March 2025, well above the
minimum regulatory requirements of 100%.
Capital position
· At 31 March 2025, Ameriabank's CET1, Tier1, and Total capital
ratios stood at 14.7%, 14.7%, and 16.8%, respectively, all above the minimum
requirements of 11.7%, 13.8%, 16.5%, respectively. Internal capital generation
as well as other measures including additional capital instruments are
expected to support capital levels in the near future.
31 Dec 2024 1Q25 Business growth Currency impact Regulatory deductions Other 31 Mar Buffer above min requirement Potential impact
profit 2025 of a 10% AMD devaluation
CET1 capital adequacy 14.4% 0.7% -1.0% 0.0% 0.5% 0.0% 14.7% 3.0% -0.7%
Tier1 capital adequacy 14.4% 0.7% -1.0% 0.0% 0.5% 0.0% 14.7% 0.9% -0.7%
Total capital adequacy 16.6% 0.7% -1.0% 0.0% 0.5% 0.0% 16.8% 0.3% -0.7%
Ameriabank: unaudited standalone financial information (not included in the consolidated results)
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.
GEL thousands 1Q25 1Q24 Change 4Q24 Change
y-o-y q-o-q
INCOME STATEMENT HIGHLIGHTS
Interest income 304,047 217,180 40.0% 282,463 7.6%
Interest expense (112,368) (78,188) 43.7% (101,267) 11.0%
Net interest income 191,679 138,992 37.9% 181,196 5.8%
Net fee and commission income 20,491 18,620 10.0% 39,547 -48.2%
Net foreign currency gain 32,723 31,125 5.1% 52,959 -38.2%
Net other income 3,150 1,648 91.1% 897 NMF
Operating income 248,043 190,385 30.3% 274,599 -9.7%
Salaries and other employee benefits (68,584) (65,158) 5.3% (78,944) -13.1%
Administrative expenses (17,851) (12,761) 39.9% (19,864) -10.1%
Depreciation, amortisation and impairment (10,818) (7,948) 36.1% (9,825) 10.1%
Other operating expenses (2,006) (1,121) 78.9% (2,066) -2.9%
Operating expenses (99,259) (86,988) 14.1% (110,699) -10.3%
Profit from associates - - - - -
Operating income before cost of risk 148,784 103,397 43.9% 163,900 -9.2%
Cost of risk (9,877) (310) NMF (2,344) NMF
Net operating income before non-recurring items 138,907 103,087 34.7% 161,556 -14.0%
Net non-recurring items - - - - -
Profit before income tax expense 138,907 103,087 34.7% 161,556 -14.0%
Income tax expense (25,014) (18,826) 32.9% (32,327) -22.6%
Profit 113,893 84,261 35.2% 129,229 -11.9%
BALANCE SHEET HIGHLIGHTS Mar-25 Mar-24 Change Dec-24 Change
y-o-y q-o-q
Liquid assets 3,495,031 2,869,140 21.8% 3,678,577 -5.0%
Cash and cash equivalents 1,060,250 989,930 7.1% 1,409,223 -24.8%
Amounts due from credit institutions 985,407 707,851 39.2% 821,795 19.9%
Investment securities 1,449,374 1,171,359 23.7% 1,447,559 0.1%
Loans to customers and finance lease and factoring receivables 9,347,802 6,811,477 37.2% 9,278,814 0.7%
Property and equipment 69,321 63,357 9.4% 66,857 3.7%
All remaining assets 297,511 213,670 39.2% 310,311 -4.1%
Total assets 13,209,665 9,957,644 32.7% 13,334,559 -0.9%
Client deposits and notes 7,866,942 6,522,822 20.6% 7,949,083 -1.0%
Amounts owed to credit institutions 1,863,290 851,401 118.8% 1,966,451 -5.2%
Debt securities issued 1,096,307 886,862 23.6% 1,155,679 -5.1%
All remaining liabilities 458,717 269,511 70.2% 447,950 2.4%
Total liabilities 11,285,256 8,530,596 32.3% 11,519,163 -2.0%
Total equity 1,924,409 1,427,048 34.9% 1,815,396 6.0%
KEY RATIOS 11 (#_ftn11) 1Q25 1Q24 4Q24
ROAA 3.5% 3.5% 4.2%
ROAE 24.7% 24.8% 29.4%
Net interest margin 6.7% 6.6% 6.8%
Loan yield 11.5% 11.2% 11.4%
Cost of funds 4.1% 3.9% 4.0%
Cost:income ratio 40.0% 45.7% 40.3%
Cost of credit risk ratio 0.3% 0.1% 0.2%
Other Businesses
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, Lion Finance Group PLC - the holding company, and other small entities
and intragroup eliminations.
GEL thousands 1Q25 1Q24 Change 4Q24 Change
y-o-y q-o-q
INCOME STATEMENT HIGHLIGHTS
Interest income 24,224 19,831 22.2% 21,965 10.3%
Interest expense (12,844) (4,440) 189.3% (9,112) 41.0%
Net interest income 11,380 15,391 -26.1% 12,853 -11.5%
Net fee and commission income 3,626 451 NMF 2,394 51.5%
Net foreign currency gain 28,846 8,910 NMF 17,862 61.5%
Net other income 1,160 415 179.5% (4,176) NMF
Operating income 45,012 25,167 78.9% 28,933 55.6%
Salaries and other employee benefits (13,683) (10,056) 36.1% (13,346) 2.5%
Administrative expenses (8,727) (6,702) 30.2% (6,566) 32.9%
Depreciation, amortisation and impairment (2,825) (2,657) 6.3% (2,512) 12.5%
Other operating expenses (342) (362) -5.5% (441) -22.4%
Operating expenses (25,577) (19,777) 29.3% (22,865) 11.9%
Profit from associates - (113) NMF - NMF
Operating income before cost of risk 19,435 5,277 NMF 6,068 NMF
Cost of risk (750) (2,529) -70.3% 2,006 NMF
Profit before income tax expense 18,685 2,748 NMF 8,074 131.4%
Income tax expense (6,204) (2,292) 170.7% (4,920) 26.1%
Profit 12,481 456 NMF 3,154 NMF
BALANCE SHEET HIGHLIGHTS Mar-25 Mar-24 Change Dec-24 Change
y-o-y q-o-q
Cash and cash equivalents 625,495 322,943 93.7% 511,732 22.2%
Amounts due from credit institutions 23,854 50,105 -52.4% 32,963 -27.6%
Investment securities 112,868 76,898 46.8% 117,869 -4.2%
Loans to customers, finance lease and factoring receivables 750,469 706,435 6.2% 754,541 -0.5%
Property and equipment 13,459 11,768 14.4% 13,389 0.5%
All remaining assets 91,387 84,518 8.1% 92,405 -1.1%
Total assets 1,617,532 1,252,667 29.1% 1,522,899 6.2%
Client deposits and notes 1,281,657 1,064,011 20.5% 1,200,763 6.7%
Amounts owed to credit institutions (9,635) (114,512) -91.6% 11,368 NMF
Debt securities issued 16,688 2,511 NMF 16,506 1.1%
All remaining liabilities 40,141 33,194 20.9% 39,302 2.1%
Total liabilities 1,328,851 985,204 34.9% 1,267,939 4.8%
Total equity 288,681 267,463 7.9% 254,960 13.2%
· In 1Q25, Other Businesses recorded a profit of GEL 12.5m,
reflecting strong performance across multiple revenue streams. From a y-o-y
perspective, growth was primarily driven by increased net foreign currency
gains and higher net fee and commission income. The foreign currency gains
stemmed from BNB's heightened dealing activity amid high BYN/USD volatility
and increased foreign-exchange market participation. Q-o-q, the growth was led
by the same strength in foreign currency gains, complemented by growth in net
other income. Net other income increase reflects comparison to a low base in
4Q24, which included a GEL 5.4m revaluation loss on start-up investments.
· BNB's capital ratios, calculated in accordance with the National
Bank of the Republic of Belarus' standards, were above the minimum
requirements as at 31 March 2025: Tier1 capital adequacy ratio at 11.6%
(minimum requirement of 7.0%) and Total capital adequacy ratio at 15.6%
(minimum requirement of 12.5%).
Unaudited consolidated financial information
GEL thousands 1Q25 1Q24 Change 4Q24 Change
y-o-y q-o-q
INCOME STATEMENT HIGHLIGHTS
Interest income 1,237,407 765,773 61.6% 1,186,258 4.3%
Interest expense (553,706) (327,953) 68.8% (522,602) 6.0%
Net interest income 683,701 437,820 56.2% 663,656 3.0%
Fee and commission income 247,662 182,384 35.8% 277,667 -10.8%
Fee and commission expense (109,590) (74,582) 46.9% (108,569) 0.9%
Net fee and commission income 138,072 107,802 28.1% 169,098 -18.3%
Net foreign currency gain 145,594 90,540 60.8% 176,350 -17.4%
Net other income 11,285 7,793 44.8% 22,914 -50.8%
Operating income 978,652 643,955 52.0% 1,032,018 -5.2%
Salaries and other employee benefits (213,075) (106,311) 100.4% (231,043) -7.8%
Administrative expenses (70,109) (48,380) 44.9% (88,042) -20.4%
Depreciation, amortisation and impairment (51,167) (31,491) 62.5% (47,299) 8.2%
Other operating expenses (8,542) (1,856) NMF (4,227) 102.1%
Operating expenses (342,893) (188,038) 82.4% (370,611) -7.5%
Gain on bargain purchase - 685,888 -100.0% - -
Acquisition related costs - (17,102) -100.0% 2,708 -100.0%
Profit from associates 271 98 176.5% 369 -26.6%
Operating income before cost of risk 636,030 1,124,801 -43.5% 664,484 -4.3%
Expected credit loss on loans to customers and factoring receivables (17,479) (17,344) 0.8% (38,220) -54.3%
Expected credit loss on finance lease receivables (209) (172) 21.5% (125) 67.2%
Other expected credit loss and impairment charge on other assets and (9,225) (5,483) 68.2% (10,797) -14.6%
provisions
Cost of risk (26,913) (22,999) 17.0% (49,142) -45.2%
Profit before income tax expense 609,117 1,101,802 -44.7% 615,342 -1.0%
Income tax expense (96,053) (63,949) 50.2% (107,920) -11.0%
Profit 513,064 1,037,853 -50.6% 507,422 1.1%
Attributable to:
- shareholders of the Group 511,135 1,036,235 -50.7% 505,492 1.1%
- non-controlling interests 1,929 1,618 19.2% 1,930 -0.1%
Basic earnings per share 11.81 23.53 -49.8% 11.75 0.5%
Diluted earnings per share 11.73 23.23 -49.5% 11.51 1.9%
BALANCE SHEET HIGHLIGHTS Mar-25 Mar-24 Change Dec-24 Change q-o-q
y-o-y
Cash and cash equivalents 4,151,524 3,154,044 31.6% 3,753,183 10.6%
Amounts due from credit institutions 3,596,111 2,382,079 51.0% 3,278,465 9.7%
Investment securities 9,373,413 7,218,707 29.8% 8,968,721 4.5%
Investment securities pledged under repurchase agreements and securities 369,637 87,063 NMF 483,666 -23.6%
lending
Loans to customers, finance lease and factoring receivables 34,137,143 27,698,817 23.2% 33,558,874 1.7%
Accounts receivable and other loans 10,890 5,924 83.8% 8,811 23.6%
Prepayments 105,860 90,986 16.3% 88,950 19.0%
Foreclosed assets 397,387 301,959 31.6% 378,642 5.0%
Right-of-use assets 262,205 242,560 8.1% 257,896 1.7%
Investment properties 133,801 128,511 4.1% 134,338 -0.4%
Property and equipment 554,208 517,156 7.2% 550,097 0.7%
Goodwill 41,253 41,253 0.0% 41,253 0.0%
Intangible assets 332,622 269,416 23.5% 322,250 3.2%
Income tax assets 2,304 2,591 -11.1% 48,114 -95.2%
Other assets 314,742 283,732 10.9% 314,620 0.0%
Assets held for sale 16,201 20,756 -21.9% 20,008 -19.0%
Total assets 53,799,301 42,445,554 26.7% 52,207,888 3.0%
Client deposits and notes 33,969,258 28,330,513 19.9% 33,202,010 2.3%
Amounts owed to credit institutions 9,006,255 5,626,533 60.1% 8,680,233 3.8%
Debt securities issued 2,257,270 1,330,631 69.6% 2,255,016 0.1%
Lease liability 276,564 247,006 12.0% 274,435 0.8%
Accruals and deferred income 324,940 175,294 85.4% 338,734 -4.1%
Income tax liabilities 127,988 143,142 -10.6% 88,431 44.7%
Other liabilities 415,531 559,997 -25.8% 353,802 17.4%
Total liabilities 46,377,806 36,413,116 27.4% 45,192,661 2.6%
Share capital 1,454 1,504 -3.3% 1,464 -0.7%
Additional paid-in capital 457,615 433,277 5.6% 453,738 0.9%
Treasury shares (49) (73) -32.9% (51) -3.9%
Capital redemption reserve 164 114 43.9% 154 6.5%
Other reserves 92,816 51,912 78.8% 110,786 -16.2%
Retained earnings 6,867,987 5,525,052 24.3% 6,422,320 6.9%
Total equity attributable to shareholders of the Group 7,419,987 6,011,786 23.4% 6,988,411 6.2%
Non-controlling interests 1,508 20,652 -92.7% 26,816 -94.4%
Total equity 7,421,495 6,032,438 23.0% 7,015,227 5.8%
Total liabilities and equity 53,799,301 42,445,554 26.7% 52,207,888 3.0%
Book value per share 170.99 135.96 25.8% 162.77 5.1%
Additional information
Number of employees (period-end) Mar-25 Mar-24 Change y-o-y Dec-24 Change q-o-q
Bank of Georgia (standalone) 8,160 7,699 6.0% 7,954 2.6%
Ameriabank 2,053 1,835 11.9% 2,036 0.8%
Other 2,118 1,994 6.2% 2,088 1.4%
Group 12,331 11,528 7.0% 12,078 2.1%
Branch network (period-end) Mar-25 Mar-24 Change y-o-y Dec-24 Change q-o-q
Bank of Georgia 188 184 2.2% 189 -0.5%
Of which:
Full-scale branches 97 94 3.2% 96 1.0%
Transactional branches 91 90 1.1% 93 -2.2%
Ameriabank 25 26 -3.8% 25 flat
Unadjusted ratios of the Group 1Q25 12 (#_ftn12) 1Q24 4Q24
ROAA 3.9% 13.2% 4.1%
ROAE 28.7% 78.1% 29.8%
FX rates Mar-25 Mar-24 Dec-24
GEL/USD exchange rate (period-end) 2.77 2.70 2.81
GEL/GBP exchange rate (period-end) 3.58 3.40 3.53
GEL/1000AMD exchange rate (period-end) 7.06 6.84 7.08
Shares outstanding Mar-25 Mar-24 Change y-o-y Dec-24 Change q-o-q
Ordinary shares outstanding (period-end) 43,393,964 44,217,045 -1.9% 42,935,561 1.1%
Treasury shares outstanding (period-end) 796,076 1,492,057 -46.6% 1,562,586 -49.1%
Total shares outstanding (period-end) 44,190,040 45,709,102 -3.3% 44,498,147 -0.7%
Glossary
Operational terms
§ MAC (Monthly active customer - retail or business) Number of customers who
satisfied pre-defined activity criteria within the past month
§ Digital monthly active user (Digital MAU) Number of retail customers who
logged into our mobile or internet banking channels at least once within a
given month; when referring to business customers, Digital MAU means number of
business customers who logged into our business mobile or internet banking
channels at least once within a given month
§ Digital daily active user (Digital DAU) Average daily number of retail
customers who logged into our mobile or internet banking channels within a
given month
§ Payment MAU Number of retail customers who made at least one payment with a
BOG card within the past month
§ Net Promoter Score (NPS) NPS asks: on a scale of 0-10, how likely is it
that you would recommend an entity to a friend or a colleague? The responses:
9 and 10 - are promoters; 7 and 8 - are neutral; 1 to 6 - are detractors. The
final score equals the percentage of the promoters minus the percentage of the
detractors
Ratio definitions and abbreviations
§ Alternative performance measures (APMs) In this announcement the management
uses various APMs, which we believe provide additional useful information for
understanding the financial performance of the Group. These APMs are not
defined by International Financial Reporting Standards, and also may not be
directly comparable with other companies who use similar measures. We believe
that these APMs provide the best representation of our financial performance
as these measures are used by the management to evaluate the Group's operating
performance and make day-to-day operating decisions
§ Basic earnings per share Profit for the period attributable to shareholders
of the Group divided by the weighted average number of outstanding ordinary
shares over the same period
§ Book value per share Total equity attributable to shareholders of the Group
divided by ordinary shares outstanding at period-end; Ordinary shares
outstanding at period-end equals number of ordinary shares at period-end less
number of treasury shares at period-end
§ CBA Central Bank of Armenia
§ CBA Common Equity Tier 1 (CET1) capital adequacy ratio Common Equity Tier 1
capital divided by total risk weighted assets, both calculated in accordance
with the requirements of the CBA
§ CBA Tier 1 capital adequacy ratio Tier 1 capital divided by total risk
weighted assets, both calculated in accordance with the requirements of the
CBA
§ CBA Total capital adequacy ratio Total regulatory capital divided by total
risk weighted assets, both calculated in accordance with the requirements of
the CBA
§ CBA Liquidity coverage ratio (LCR) High-quality liquid assets divided by
net cash outflows over the next 30 days (as defined by the CBA)
§ CBA Net stable funding ratio (NSFR) Available amount of stable funding
divided by the required amount of stable funding (as defined by the CBA
§ Cost of credit risk ratio Expected loss on loans to customers, factoring
and finance lease receivables for the period divided by monthly average gross
loans to customers, finance lease and factoring over the same period
(annualised where applicable)
§ Cost of deposits Interest expense on client deposits and notes for the
period divided by monthly average client deposits and notes over the same
period (annualised where applicable)
§ Cost of funds Interest expense for the period divided by monthly average
interest-bearing liabilities over the same period (annualised where
applicable)
§ Cost to income ratio Operating expenses divided by operating income
§ FC Foreign currency
§ Full-scale branch A banking branch that provides all banking services
§ Interest-bearing liabilities Amounts owed to credit institutions, client
deposits and notes, and debt securities issued
§ Interest-earning assets (excluding cash) Amounts due from credit
institutions, investment securities (but excluding corporate shares) and loans
to customers, factoring and finance lease receivables
§ NBG Liquidity coverage ratio (LCR) High-quality liquid assets divided by
net cash outflows over the next 30 days (as defined by the NBG). Calculations
are made for Bank of Georgia standalone, based on IFRS
§ NBG Net stable funding ratio (NSFR) Available amount of stable funding
divided by the required amount of stable funding (as defined by the NBG).
Calculations are made for Bank of Georgia standalone, based on IFRS
§ LC Local currency
§ Leverage (times) Total liabilities divided by total equity
§ Liquid assets Cash and cash equivalents, amounts due from credit
institutions and investment securities
§ Loan yield Interest income from loans to customers, factoring and finance
lease receivables for the period divided by monthly average gross loans to
customers, factoring and finance lease receivables over the same period
(annualised where applicable)
§ NBG National Bank of Georgia
§ NBG (Basel III) Common Equity Tier 1 (CET1) capital adequacy ratio Common
Equity Tier 1 capital divided by total risk weighted assets, both calculated
in accordance with the requirements of the NBG. Calculations are made for Bank
of Georgia standalone, based on IFRS
§ NBG (Basel III) Tier 1 capital adequacy ratio Tier 1 capital divided by
total risk weighted assets, both calculated in accordance with the
requirements of the NBG. Calculations are made for Bank of Georgia standalone,
based on IFRS
§ NBG (Basel III) Total capital adequacy ratio Total regulatory capital
divided by total risk weighted assets, both calculated in accordance with the
requirements of the NBG. Calculations are made for Bank of Georgia standalone,
based on IFRS
§ Net interest margin (NIM) Net interest income for the period divided by
monthly average interest earning assets excluding cash and cash equivalents
and corporate shares over the same period (annualised where applicable)
§ Non-performing loans (NPLs) The principal and/or interest payments on loans
overdue for more than 90 days; or the exposures experiencing substantial
deterioration of their creditworthiness and the debtors assessed as unlikely
to pay their credit obligation(s) in full without realisation of collateral
§ NPL coverage ratio Allowance for expected credit loss for loans to
customers, finance lease and factoring receivables divided by NPLs
§ NPL coverage ratio adjusted for discounted value of collateral Allowance
for expected credit loss on loans to customers, finance lease and factoring
receivables, plus the discounted value of collateral for the NPL portfolio
(capped at the respective loan amount), divided by total NPLs
§ One-off items Significant items that do not arise during the ordinary
course of business
§ Operating leverage Percentage change in operating income less percentage
change in operating expenses
§ Return on average total assets (ROAA) Profit for the period divided by
monthly average total assets for the same period (annualised where applicable)
§ Return on average total equity (ROAE) Profit for the period attributable to
shareholders of the Group divided by monthly average equity attributable to
shareholders of the Group for the same period (annualised where applicable)
§ Transactional branch Bank branch that is mostly used for transactional
services by clients. Such branches does not provide complex banking services,
such as issuing mortgages, services to legal clients, etc.
§ NMF No meaningful figure
Constant currency basis
To calculate the q-o-q growth of loans and deposits without the currency
exchange rate effect, we used the relevant exchange rates as at 31 December
2024. To calculate the y-o-y growth without the currency exchange rate effect,
we used the relevant exchange rates as at 31 March 2024. Constant currency
growth is calculated separately for GFS and AFS, based on their respective
underlying performance.
Lion Finance Group PLC profile
Lion Finance Group PLC (formerly Bank of Georgia Group PLC; the "Company" or
the "Group" when referring to the group companies as a whole) is a FTSE 250
holding company whose main subsidiaries provide banking and financial services
focused in the high-growth Georgian and Armenian markets through leading,
customer-centric, universal banks - Bank of Georgia in Georgia and Ameriabank
in Armenia. By building on our competitive strengths, we are committed to
driving business growth, sustaining high profitability, and generating strong
returns, while creating opportunities for our stakeholders and making a
positive contribution in the communities where we operate.
Lion Finance Group PLC is listed on the London Stock Exchange's main market in
the Equity Shares (Commercial Companies) category and is a constituent of the
FTSE 250 index. Ticker: BGEO.
Legal entity identifier: 213800XKDG12NQG8VC53
Registered address: 29 Farm Street, London, W1J 5RL, United Kingdom;
Registered under number 10917019 in England and Wales
Company secretary: Computershare Company Secretarial Services Limited (The
Pavilions, Bridgwater Road, Bristol BS13 8FD, United Kingdom)
Registrar: Computershare Investor Services PLC (The Pavilions Bridgwater Road,
Bristol BS99 6ZZ, United Kingdom)
Please note that Investor Centre is a free, secure online service run by our
Registrar, Computershare, giving you convenient access to information on your
shareholdings.
Investor Centre Web Address: www.uk.computershare.com/Investor/#Home
(http://www.uk.computershare.com/Investor/#Home)
Investor Centre Shareholder Helpline: +44 (0)370 873 5866
Auditors: Ernst & Young LLP (25 Churchill Place Canary Wharf, London E14
5EY, United Kingdom)
Contacts:
Email: ir@lfg.uk (mailto:ir@lfg.uk)
Telephone: +44(0) 203 178 4052
Sam Goodacre (Advisor to the CEO): sgoodacre@lfg.uk (mailto:sgoodacre@lfg.uk)
; +44 745 398 8513
Nini Arshakuni (Head of Investor Relations): narshakuni@lfg.uk
(mailto:narshakuni@lfg.uk) ; +44 203 178 4034
Further information
For more on results publications, go to Results Centre on
https://lionfinancegroup.uk/results-center/quarterly-earnings/
(https://lionfinancegroup.uk/results-center/quarterly-earnings/)
For more on investor information, go to
https://lionfinancegroup.uk/investor-information/shareholder-meetings/
(https://lionfinancegroup.uk/investor-information/shareholder-meetings/)
For news updates, go to https://lionfinancegroup.uk/news/news-announcements/
(https://lionfinancegroup.uk/news/news-announcements/)
For share price information, go to
https://lionfinancegroup.uk/investor-information/share-price/
(https://lionfinancegroup.uk/investor-information/share-price/)
Forward-looking statements
This announcement contains forward-looking statements, including, but not
limited to, statements concerning expectations, projections, objectives,
targets, goals, strategies, future events, future revenues or performance,
capital expenditures, financing needs, plans or intentions relating to
acquisitions, competitive strengths and weaknesses, plans or goals relating to
financial position and future operations and development. Although Lion
Finance Group PLC believes that the expectations and opinions reflected in
such forward-looking statements are reasonable, no assurance can be given that
such expectations and opinions will prove to have been correct. By their
nature, these forward-looking statements are subject to a number of known and
unknown risks, uncertainties and contingencies, and actual results and events
could differ materially from those currently being anticipated as reflected in
such statements. Important factors that could cause actual results to differ
materially from those expressed or implied in forward-looking statements,
certain of which are beyond our control, include, among other things: macro
risk, including domestic instability; geopolitical risk; credit risk;
liquidity and funding risk; capital risk; market risk; regulatory and legal
risk; conduct risk; financial crime risk; information security and data
protection risks; operational risk; human capital risk; model risk; strategic
risk; reputational risk; climate-related risk; and other key factors that
could adversely affect our business and financial performance, as indicated
elsewhere in this document and in past and future filings and reports of the
Group, including the 'Principal risks and uncertainties' included in Lion
Finance Group PLC's Annual Report and Accounts 2024. No part of this document
constitutes, or shall be taken to constitute, an invitation or inducement to
invest in Lion Finance Group PLC or any other entity within the Group, and
must not be relied upon in any way in connection with any investment decision.
Lion Finance Group PLC and other entities within the Group undertake no
obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise, except to the extent legally
required. Nothing in this document should be construed as a profit forecast.
1 (#_ftnref1) There we no one-off items in 1Q25, thus profit before and
after one-off items is the same. In 1Q24, the acquisition of Ameriabank in
March 2024 resulted in one-off items totalling GEL 668.8m, comprising a gain
on bargain purchase and acquisition-related costs. In 4Q24, GEL 2.7m was
recorded as a one-off item due to a reversal of the
Ameriabank-acquisition-related advisory fee. Operating income before cost of
risk and subsequent lines in the income statement, as well as ROAA and ROAE,
have been adjusted for these one-off items.
2 (#_ftnref2) Based on external research by IPM Georgia, surveying a random
sample of customers with face-to-face interviews.
3 (#_ftnref3) The latest 2024 figure was obtained in 3Q24.
4 (#_ftnref4) In 1Q24, the acquisition of Ameriabank in March 2024 resulted
in one-off items totalling GEL 668.8m, comprising a gain on bargain purchase
and acquisition-related costs. In 4Q24, GEL 2.7m was recorded as a one-off
item due to a reversal of the Ameriabank-acquisition-related advisory fee.
Operating income before cost of risk and subsequent lines in the income
statement, as well as ROAA and ROAE, have been adjusted for these one-off
items.
5 (#_ftnref5) Throughout this announcement, gross loans to customers and the
related allowance for impairment are presented net of expected credit loss
(ECL) on contractually accrued interest income. These do not have an effect on
the net loans to customers' balance. Management believes that netted-off
balances provide the best representation of the loan portfolio position.
6 (#_ftnref6) For 1Q24, ROAA, net interest margin, loan yield, liquid assets
yield, cost of funds, cost of client deposits and notes, cost of amounts owed
to credit institutions, cost of debt securities issued, and cost of credit
risk ratio were adjusted to exclude the effect of Ameriabank's consolidation
at the end of March on average balances.
7 (#_ftnref7) The National Bank of Georgia (NBG) administers a resolution
fund, designed to bolster financial stability during crises. Starting in 2025,
commercial banks are required to make ex-ante contributions proportionate to
their asset share and risk profile, targeting a fund equal to 3% of insured
deposits within eight years.
8 (#_ftnref8) In 1Q24, the acquisition of Ameriabank in March 2024 resulted
in one-off items totalling GEL 668.8m, comprising a gain on bargain purchase
and acquisition-related costs. In 4Q24, GEL 2.7m was recorded as a one-off
item due to a reversal of the Ameriabank-acquisition-related advisory fee.
Operating income before cost of risk and subsequent lines in the income
statement, as well as ROAA and ROAE, have been adjusted for these one-off
items.
9 (#_ftnref9) Calculated based on financial statements of local banks.
10 (#_ftnref10) Includes current accounts, time deposits and issued local
bonds.
11 (#_ftnref11) Ratios are calculated based on quarterly averages.
12 (#_ftnref12) No adjustments were made for the figures during this period;
Adjusted and unadjusted figures are identical.
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