Lion Finance Group expands buyback as first-half profits rise

(Sharecast News) - Lion Finance Group posted a sharp rise in profit for the first half of 2025 on Tuesday, supported by robust growth in Georgia and Armenia, while announcing both an interim dividend and a share buyback programme. The FTSE 250 company, formerly known as the Bank of Georgia Group, reported consolidated profit before one-off items of GEL 513.2m (£141.21m) in the second quarter, up 19.4% from a year earlier, with return on average equity at 27.2%.

For the first half, profit before one-offs climbed 28.4% to GEL 1.03bn, with ROAE at 27.9%.

A half-year dividend of GEL 5.10 per share was declared, alongside a GEL 98m buyback for the period to 30 June.

"We are pleased to announce another set of solid results, reflecting continued strength of our customer franchise and strong loan growth across our core operations in Georgia and Armenia," said chief executive Archil Gachechiladze.

"Profit before one-offs rose 19.4% year-on-year to GEL 513.2m in 2Q25, bringing the cumulative half-year profit to just over GEL 1bn - up 28.4% compared to the profit before one-offs in the first half of 2024."

He added that Georgia's economy grew by 7.1% year-on-year in the second quarter and Armenia's by 8.1%, prompting Lion Finance to raise its full-year GDP forecasts for the two countries to 7.5% and 5.0% respectively.

"Alongside solid economic fundamentals, the recent historic signing of the Armenia-Azerbaijan peace framework is a positive sign, which could stimulate new regional investments and development, boosting the overall economic outlook," Gachechiladze said.

The group's loan book grew 22.5% year-on-year to GEL 36.5bn as of 30 June, driven by a 17.0% increase in Georgia and a 37.6% rise in Armenia, both in constant currency terms

Deposits were up 14.7% at GEL 34.8bn.

Asset quality remained strong, with the cost of credit risk at 0.5% and non-performing loans at 1.9%.

In Georgia, digital retail monthly active users rose 15.5% to 1.7 million, while in Armenia, users surged 54.5% to 267,000.

The group noted Ameriabank's profit before one-offs jumped to GEL 95.8m, a 197.3% increase year-on-year, reflecting the absence of acquisition-related charges booked in 2024.

Lion Finance confirmed the interim dividend of GEL 5.10 per share would be paid in sterling on 10 October to shareholders on the register as of 26 September.

The exchange rate would be based on the average rate published by the National Bank of Georgia in the week to 26 September.

Separately, the board approved a GEL 98m extension to its buyback and cancellation programme, managed by Cavendish Capital Markets.

The programme, to run until the 2026 annual genera meeting, covers a maximum of 4.34 million shares and was intended to reduce the group's share capital.

"Considering our strong capital generation and high profitability, the board has declared a half-year dividend of GEL 5.10 per ordinary share and has also approved a share buyback and cancellation programme in the amount of GEL 98m," Gachechiladze added.

"The board has taken the decision to move to a quarterly, more consistent schedule of distributions, with our target payout range of 30-50% of annual profits unchanged."

At 0832 BST, shares in Lion Finance Group were down 0.39% at 7.610p.

Reporting by Josh White for Sharecast.com.