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Investing.com -- Lion Finance Group (LON:BGEO) declared a half-year dividend of GEL 5.10 per share and approved a GEL 98 million share buyback after reporting second-quarter profit of GEL 513.2 million, up 19.4% from a year earlier.
The group said first-half profit rose 28.4% year-on-year to GEL 1.03 billion, with return on average equity at 27.9%. Profit before one-off items stood at GEL 513.2 million for the quarter and GEL 1.03 billion for the half-year.
Operating income reached GEL 1.04 billion in the quarter, an increase of 9.5% from a year earlier, supported mainly by higher net interest income in both Georgia and Armenia.
Net fee and commission income edged up 1.3%, while non-interest income declined compared with last year due to one-off advisory fees booked in 2024 and lower foreign exchange gains.
Group operating expenses rose 12.1% year-on-year to GEL 378.8 million, largely due to higher staff costs and contributions to Georgia’s newly introduced resolution fund.
The loan book totaled GEL 36.53 billion at the end of June, up 22.5% from a year earlier in constant currency.
Georgian operations recorded a 17% increase, while Armenian operations grew 37.6%. Client deposits reached GEL 34.79 billion, a 14.7% rise year-on-year.
Asset quality indicators remained stable, with the group reporting a cost of credit risk ratio of 0.5% in the second quarter and a non-performing loan ratio of 1.9%.
In Georgia, net interest income rose 17.5% year-on-year to GEL 514.5 million in the second quarter, with profit up 7.6% to GEL 409.9 million.
Operating expenses climbed 15.7% year-on-year to GEL 223.8 million, reflecting higher salaries and additional contractual costs. The cost of credit risk increased to 0.7% from 0.4% in the same period last year.
In Armenia, Ameriabank posted a second-quarter profit of GEL 95.8 million, up 197.3% year-on-year.
Net interest income increased 16.3% to GEL 192.3 million, while fee and commission income fell 17.7%.
The cost of risk declined sharply to GEL 5.8 million from GEL 56.1 million a year earlier, which included a one-time provision related to its acquisition.
The board said it will shift to a quarterly distribution schedule, with a target payout range of 30%-50% of annual profits maintained. The ex-dividend date was set for Sept. 25, with payment on Oct. 10.
Economic data cited in the report showed Georgia’s economy grew 7.1% year-on-year in the second quarter, while Armenia’s economy expanded 8.1%. Both countries’ GDP growth forecasts for 2025 were revised upwards, to 7.5% for Georgia and 5% for Armenia.