4Q25 and FY25 Preliminary Results
Lion Finance Group PLC (AIM: BGEO) reported preliminary unaudited results for the fourth quarter and full year of 2025, revealing a profit before one-off items of GEL 619.3 million for 4Q25, a 22.7% increase year-on-year, and GEL 2,192.8 million for the full year, reflecting a 20.9% growth. The company achieved a return on average equity of 30.1% in the fourth quarter and 28.4% for the entire year, alongside a declared quarterly dividend of GEL 2.75 per share, culminating in a total FY25 dividend of GEL 10.50 per share. Additionally, Lion Finance announced a GEL 53.5 million share buyback program, contributing to a total buyback of GEL 203 million for the fiscal year.
The results mark a significant achievement for Lion Finance, particularly following the acquisition of Ameriabank at the end of March 2024, which has been a pivotal component of the group's growth strategy. The integration of Ameriabank has allowed for a more diversified revenue stream and enhanced operational capabilities across both Georgian and Armenian markets. The company has consistently communicated its focus on expanding its loan book, which reached GEL 40,065.7 million as of December 31, 2025, representing a 19.7% year-on-year increase in constant currency. This growth trajectory aligns with previous announcements regarding the strategic emphasis on strengthening its customer franchise and enhancing profitability across its core business divisions.
From a financial perspective, Lion Finance's balance sheet remains robust, with total client deposits and notes amounting to GEL 38,630.0 million as of year-end 2025, reflecting a 17.3% year-on-year increase in constant currency. The company’s operating income rose by 16.4% year-on-year to GEL 1,201.3 million in 4Q25, driven by strong net interest income and solid fee and commission income across its operations. Operating expenses increased by 14.0% year-on-year, primarily due to higher staff and administrative costs, yet the overall financial health remains sound with capital adequacy and liquidity positions above regulatory requirements. The company’s ability to generate substantial profits while maintaining a strong dividend policy and share buyback program indicates a commitment to returning value to shareholders.
In terms of peer comparison, Lion Finance operates in a niche segment of the financial services market, particularly within the Georgian and Armenian contexts. Direct peers include TBC Bank Group PLC (LSE: TBCG), which has a strong presence in Georgia and reported a profit before tax of GEL 1,000 million for FY25, and Bank of Georgia Group PLC (LSE: BGEO), which has also demonstrated robust growth metrics, including a significant increase in its loan book and profitability. Another comparable entity is Ameriabank CJSC, which, while now part of Lion Finance, previously operated independently and was a key player in the Armenian banking sector. These peers provide a relevant context for evaluating Lion Finance's performance, particularly in terms of growth rates, profitability, and market positioning.
The implications of Lion Finance's recent results are significant for its value creation pathway. The strong profit growth and return on equity underscore the effectiveness of its operational strategies and market positioning in both Georgia and Armenia. The announced share buyback program and consistent dividend payments signal confidence in future cash flows and profitability, enhancing shareholder value. As the company continues to expand its loan book and customer base, it is well-positioned to capitalize on growth opportunities in the region, particularly given the ongoing economic developments in both countries. The performance metrics reported not only reflect the company's operational success but also suggest a de-risking of its assets, enhancing its attractiveness relative to peers in the financial services sector.