Lion Finance Group (LON:BGEO) Releases Earnings Results

Lion Finance Group (LON:BGEO) posted its quarterly earnings results on Tuesday. The company reported GEL 778.58 EPS for the quarter, Digital Look Earnings reports. Lion Finance Group had a net margin of 32.18% and a return on equity of 27.26%.

Here are the key takeaways from Lion Finance Group’s conference call:

• Strong quarterly performance: Group revenue increased 23.4% year over year and net profit rose 20.6% in Q2, while return on equity reached approximately 27% and cost of risk remained low at 0.6%.
• Balance-sheet and franchise growth remained robust. Loans grew 23% and deposits 26.8% in constant currency, supported by strong digital engagement in Georgia and rapid customer and payment-volume growth in Armenia.
• Ameriabank was a major growth driver, with loans and deposits increasing about 37% and net profit rising more than 50% year over year in Q2. Management expects continued market-share gains through its digital retail expansion, although it plans to retain most earnings to fund growth.
• Capital returns are increasing: the board recommended a GEL 3.05 quarterly dividend and announced an additional GEL 59 million share buyback, while both banking subsidiaries maintained comfortable capital and liquidity buffers.
• Management expects margins to remain broadly stable in Georgia and Armenia, with Armenia’s local-currency spread pressure viewed as temporary. Executives said geopolitical and trade restrictions involving Armenia and Russia should not create a material medium- to long-term credit impact, though affected agricultural borrowers may face some margin pressure.

Lion Finance Group Price Performance

Shares of BGEO stock opened at GEL 12,710.00 on Wednesday. Lion Finance Group has a 12-month low of GEL 6,905.00 and a 12-month high of GEL 13,190.00. The firm has a market capitalization of $547.62 billion, a price-to-earnings ratio of 2.47, a price-to-earnings-growth ratio of 0.88 and a beta of 0.76. The business has a 50 day simple moving average of GEL 11,398.09 and a 200 day simple moving average of GEL 10,780.34.

Analyst Ratings Changes

Separately, JPMorgan Chase & Co. lifted their target price on Lion Finance Group from £139 to £141 and gave the company an “overweight” rating in a research note on Wednesday. One investment analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, Lion Finance Group presently has a consensus rating of “Buy”.

About Lion Finance Group

Lion Finance Group PLC (formerly Bank of Georgia Group PLC) is a FTSE 100 holding company whose main subsidiaries provide banking and financial services 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.