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Introduction & Market Context
Lion Finance Group PLC (LSE:BGEO) presented its first quarter 2025 results on May 15, showcasing strong performance across its operations in Georgia and Armenia, two of the fastest-growing economies in the EMEA region. The company’s stock closed at 6,750 on May 14, 2025, representing a 0.6% increase and trading near its 52-week high of 6,795.
The presentation highlighted the robust economic environment in which Lion Finance operates, with Georgia’s economy growing at 9.3% in the first quarter of 2025, while Armenia’s economy expanded by 4.1% during the same period. This favorable macroeconomic backdrop has supported the group’s continued expansion and profitability.
As shown in the following chart, both Georgia and Armenia have consistently outperformed their peer average in terms of real GDP growth:
Quarterly Performance Highlights
Lion Finance Group delivered exceptional financial results in the first quarter of 2025, with consolidated profit reaching GEL 513.1 million, representing a 39.0% increase year-over-year. The group achieved an impressive return on average equity (ROAE) of 28.7%, while maintaining a cost-to-income ratio of 35.0% and a remarkably low cost of credit risk at 0.2%.
The company’s performance was driven by strong results in both its Georgian Financial Services (GFS) and Armenian Financial Services (AFS) segments. GFS reported a profit of GEL 405.1 million with an ROAE of 32.0%, while AFS contributed GEL 95.5 million with an ROAE of 21.1%. The group’s market share by total loans stood at 37.3% in Georgia and 20.3% in Armenia as of March 2025.
The following chart provides a comprehensive overview of the group’s first quarter performance:
Lion Finance’s profit and ROAE have shown consistent growth, as illustrated in this detailed breakdown:
Digital Banking Leadership
A key driver of Lion Finance’s success continues to be its digital banking leadership. The Bank of Georgia, the group’s flagship operation, has been recognized as "The World’s Best Digital Bank" by Global Finance for five consecutive years (2020-2024), competing successfully against global giants like Bank of America, DBS, BBVA (BME:BBVA), and CaixaBank.
As shown in the following award recognition slide:
The group’s digital capabilities are underpinned by its award-winning mobile applications, which have achieved exceptional customer satisfaction scores. The Retail Financial SuperApp and Business Mobile App are rated 4.8/5 and 5.0/5 in their respective app stores, with customer satisfaction (CSAT) scores of 92% and 91%.
The following slide showcases these award-winning applications and their key functionalities:
Digital adoption continues to accelerate, with 85% of loans and 74% of deposits now sold online. The group reported 1.6 million digital monthly active users (MAU) in Georgia and 245,100 in Armenia as of March 2025, representing year-over-year growth of 17.1% and significant digital engagement.
Strategic Initiatives and Expansion
Lion Finance Group outlined its strategic priorities centered around three key pillars: becoming "the main bank" for customers, delivering "excellent customer experience," and achieving "profitable growth." The group has set medium-term targets including approximately 15% annual loan book growth, ROAE exceeding 20%, and a dividend and share buyback payout ratio of 30-50%.
The following slide illustrates the group’s franchise growth and loan book expansion:
The consolidation of Ameriabank has strengthened Lion Finance’s position in Armenia, contributing to the group’s diversified growth strategy. The Armenian operation now represents 25% of the group’s total assets, with GEL 13.3 billion in assets as of March 2025.
Capital Position and Shareholder Returns
Lion Finance Group maintains a strong capital position, with the Bank of Georgia reporting a Common Equity Tier 1 (CET1) ratio of 16.4% and Ameriabank at 14.7% as of March 31, 2025. This robust capital base supports the group’s growth ambitions while allowing for generous shareholder returns.
The following slide details the group’s capital positions:
The company’s capital distribution strategy targets a 30-50% dividend and share buyback payout ratio, with dividend per share showing a compound annual growth rate (CAGR) of 33.2% in recent years. This approach balances growth investments with shareholder returns.
As illustrated in the capital distribution and dividends slide:
Forward-Looking Statements
Looking ahead, Lion Finance Group remains optimistic about its growth prospects, supported by the favorable economic outlook for both Georgia and Armenia. The group expects to maintain its strong financial performance, with continued focus on digital transformation and customer experience enhancement.
The loan and deposit portfolio is projected to continue its growth trajectory, as shown in the following breakdown:
The group’s management team, led by experienced professionals, is committed to executing the strategic priorities while maintaining high standards of corporate governance and ESG practices:
In conclusion, Lion Finance Group’s first quarter 2025 results demonstrate the company’s ability to deliver exceptional financial performance while advancing its digital banking leadership and strategic expansion. With strong capital positions, robust asset quality, and clear strategic direction, the group appears well-positioned to continue its growth journey in the dynamic markets of Georgia and Armenia.
Full presentation:
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