Lion Finance Group Reports Strong FY24 Results with 78% Profit Growth
Why we think this is good
The financial results for Lion Finance Group PLC are notably strong, with significant growth in both revenue and profitability. The Group's profit increased by 78% year-on-year, reaching GEL 2.49 billion, while revenue grew by 50.6% to GEL 4.14 billion. This impressive performance is underpinned by robust growth across key metrics, including a 56.1% increase in net fee and commission income and a 56.4% rise in net foreign currency gains. The acquisition of Ameriabank has contributed positively to the Group's expansion and diversification strategy. Despite some economic uncertainties in the region, the company maintains strong liquidity and capital positions, with healthy growth in both loan book and client deposits. The outlook remains positive, with expected GDP growth in both Georgia and Armenia. However, it's important to note the potential risks associated with political developments in Georgia and the integration of Ameriabank. Overall, the company's strong financial performance, strategic expansion, and positive outlook outweigh the potential risks, justifying a 'GOOD' sentiment score.
Key Points
- FY24 profit increased 78% to GEL 2.49 billion
- Revenue grew 50.6% to GEL 4.14 billion
- Net interest income up 46.1% to GEL 2.36 billion
- Loan book expanded 65.9% year-on-year
- Client deposits rose 61.8%
- Return on average equity at 30.0% (adjusted)
- Basel III CET1 capital adequacy ratio at 17.1%
- NBG liquidity coverage ratio at 138.6%, net stable funding ratio at 130.7%
- Cash and cash equivalents increased to GEL 3.75 billion
- Strong going concern status with no apparent issues in meeting banking covenants
- Final dividend of GEL 5.62 per share recommended
- Total dividend for 2024 increased 12.5% to GEL 9.00 per share
- Successful integration of Ameriabank acquisition
- Positive outlook with expected GDP growth in Georgia and Armenia
Summary
Lion Finance Group PLC, formerly Bank of Georgia Group PLC, has delivered exceptional financial results for FY24. The Group's profit surged by 78% to GEL 2.49 billion, while revenue increased by 50.6% to GEL 4.14 billion. This growth was driven by strong performances in both Georgian and Armenian markets, with the acquisition of Ameriabank playing a significant role. Key highlights include:
- Net interest income up 46.1% to GEL 2.36 billion
- Loan book growth of 65.9% year-on-year
- Client deposits increased by 61.8%
- Return on average equity of 30.0% (adjusted)
- Operating cash flow increased, with cash and cash equivalents rising from GEL 3.10 billion to GEL 3.75 billion
- Strong liquidity position with NBG liquidity coverage ratio at 138.6% and net stable funding ratio at 130.7%
The Group maintains a strong capital position with a Basel III CET1 capital adequacy ratio of 17.1%. The company's going concern status is robust, supported by strong capital ratios and liquidity, with no apparent issues in meeting banking covenants. Despite some economic uncertainties, particularly in Georgia, the outlook remains positive with expected GDP growth in both core markets. The Board has recommended a final dividend of GEL 5.62 per share, bringing the total dividend for 2024 to GEL 9.00 per share, a 12.5% increase from 2023.