1st Quarter Results

Lion Finance

15/05/2025 07:00

RNS Number : 7249I

Lion Finance Group PLC

15 May 2025

 

Contents

1Q25 results

Earnings call on 15 May 2025, 14:00 BST

Segmentation guide

CEO statement

Macroeconomic developments: Georgia

Macroeconomic developments: Armenia

Delivering on our strategic priorities

1Q25 unaudited consolidated results

Business Division results

Georgian Financial Services (GFS)

Armenian Financial Services (AFS)

Ameriabank: unaudited standalone financial information (not included in the consolidated results)

Other Businesses

Unaudited consolidated financial information

Additional information

Glossary

Lion Finance Group PLC profile

Further information

Forward-looking statements

 

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

 

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] 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.

 

 

 

 

 

 

 

 

 

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] reached a new record-high level of 73 in 1Q25 (61 in 1Q24 and 67 in 3Q24[3]).

 

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
y-o-y
4Q24
Change
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]
-
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
y-o-y
Dec-24
Change
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]
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]
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].

·      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
y-o-y
Dec-24
Change
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
y-o-y
4Q24
Change
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
y-o-y
Dec-24
Change
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
y-o-y
Change y-o-y (constant currency)
Dec-24
Change
q-o-q
Change q-o-q (constant currency)
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
y-o-y
Change y-o-y (constant currency)
Dec-24
Change
q-o-q
Change q-o-q (constant currency)
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
profit
Business growth
Currency impact
Capital distribution
Tier 1- Tier 2
31 Mar
2025
Buffer above min requirement
Potential impact
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]
-
2,708
NMF
Profit
95,514
110,999
-14.0%
BALANCE SHEET HIGHLIGHTS
Mar-25
Mar-24
Change
y-o-y
Dec-24
Change q-o-q
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].

·      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].

·      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
profit
Business growth
Currency impact
Regulatory deductions
Other
31 Mar
2025
Buffer above min requirement
Potential impact
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
y-o-y
4Q24
Change
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
y-o-y
Dec-24
Change
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]
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
y-o-y
4Q24
Change
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
y-o-y
Dec-24
Change
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
y-o-y
4Q24
Change
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 provisions
(9,225)
(5,483)
68.2%
(10,797)
-14.6%
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
y-o-y
Dec-24
Change q-o-q
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 lending
369,637
87,063
NMF
483,666
-23.6%
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]
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

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

Telephone: +44(0) 203 178 4052

Sam Goodacre (Advisor to the CEO): sgoodacre@lfg.uk; +44 745 398 8513  

Nini Arshakuni (Head of Investor Relations): 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/

For more on investor information, go to https://lionfinancegroup.uk/investor-information/shareholder-meetings/  

For news updates, go to https://lionfinancegroup.uk/news/news-announcements/  

For share price information, go to 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] 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] Based on external research by IPM Georgia, surveying a random sample of customers with face-to-face interviews.

[3] The latest 2024 figure was obtained in 3Q24.

[4] 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] 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] 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] 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] 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] Calculated based on financial statements of local banks.

[10] Includes current accounts, time deposits and issued local bonds.

[11] Ratios are calculated based on quarterly averages.

[12] No adjustments were made for the figures during this period; Adjusted and unadjusted figures are identical.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

 
  END

 

 
QRFEAXSLFFXSEFA