Lion Finance Group (LON:BGEO) reported higher second-quarter revenue, profit and balance-sheet growth, supported by expansion in both its Georgian and Armenian banking operations, rising digital engagement and lower-than-guided credit costs.
Group CEO Archil Gachechiladze said second-quarter revenue increased 23.4% year over year, while first-half revenue rose 19.6%. Profit grew 20.6% in the quarter and 17.3% in the first six months of 2026. Loans expanded 23% in constant currency and deposits rose 26.8%, both ahead of the group’s medium-term growth guidance of about 15%.
Digital usage expands across both markets
Management highlighted customer activity and satisfaction as indicators of franchise strength. In Georgia, retail digital monthly active users rose 13.3% year over year to 1.92 million, while total retail monthly active customers increased 9.5% to 2.28 million. The group said more than 1 million people opened its Georgian retail application daily.
Giorgi Shagidze, CFO of Lion Finance Group, said 88% of loans in Georgia were granted through digital channels. The retail application’s customer-satisfaction score was 92%, while its Apple App Store and Google Play ratings were 4.6 and 4.7, respectively.
In Georgian payments, acquiring volumes increased 20% year over year and the number of active merchant terminals rose 13.3% to 28,800. The group’s market share in acquiring volumes reached 56.7%, according to Shagidze.
In Armenia, Ameriabank’s monthly active customers increased nearly 28% to more than 500,000. Hovhannes Toroyan, CFO of Ameriabank, said digital monthly active users grew 47% year over year and daily active users rose 58%. Digital engagement surpassed 75% by the end of the second quarter.
Georgia posts strong profitability and funding growth
Georgian financial services profit increased 15.4% year over year in the second quarter and 13.5% in the first half. Return on equity was 30.4% for the quarter and 30.9% for the first half.
The Georgian loan book grew 17.1% in constant currency, while deposits increased 24.2%. Excluding Ministry of Finance deposits, deposit growth was 18.4%, Shagidze said. Local-currency loans represented 57.8% of total loans, and local-currency deposits accounted for 58.1% of deposits.
The Georgian business maintained capital and liquidity buffers above regulatory minimums. Its liquidity coverage ratio was 152% and net stable funding ratio was 132.9%, compared with minimum requirements of 100% for each measure.
During the question-and-answer session, Gachechiladze said a decline in Georgian deposit market share had been deliberately managed to bring the share below 40%. He said doing so could eventually reduce capital requirements, although the applicable 12-month average means any release could take six to 12 months.
Ameriabank accelerates growth and gains share
Ameriabank’s second-quarter net profit increased about 50% year over year, while first-half profit rose more than 42% to GEL 272 million. Return on equity stood at 23.1% at the end of the second quarter.
The Armenian loan book grew nearly 37% in constant currency, and deposits rose 37.1%. Corporate lending increased 45% year over year, while retail loans increased 26.8% and consumer loans rose 39%. Ameriabank said it gained 1.7 percentage points of loan market share and 1.1 percentage points of deposit market share.
Net fee and commission income in Armenia grew more than 38%, and net foreign-currency gains increased 19.3%. The cost-to-income ratio fell below 40% during the quarter. Acquiring business volume rose 48%, while payment monthly active users in its issuing business increased more than 60% to exceed 400,000.
Toroyan said the company’s Armenian capital position improved to more than 1.5 percentage points above its capital requirement. The bank issued a second $50 million tranche of additional Tier 1 notes in April with an 8% coupon, following a February tranche with an 8.5% coupon. Ameriabank also paid its first dividend to the group, totaling AMD 157 million.
Management said it expects Ameriabank’s growth to remain primarily organic, although Gachechiladze said the group would remain open to inorganic opportunities depending on regulatory considerations. He said the group sees potential for the Armenian retail franchise, which has just under 400,000 monthly active users, to exceed 1 million over time.
Macroeconomic outlook and capital returns
Group economist Akaki Liqokeli raised the group’s 2026 real GDP growth forecast for Georgia to 7.5% from 7%, after first-half growth of 7.9%. The forecast for Armenia was 5.5%, following 4% growth in the first quarter and an improving trajectory in the second quarter.
Liqokeli said both countries had benefited from resilient inflows from exports, tourism and remittances. Georgia’s gross international reserves reached $7.5 billion at the end of July, while Armenia’s reached $6.2 billion. He said the group did not anticipate further policy-rate moves by either central bank during 2026.
The board recommended a second-quarter dividend of GEL 3.05 per share. Gachechiladze said the first-half dividend amount was 15.7% higher than the prior-year first half, and the group also planned to invest GEL 59 million in share buybacks.
Management said it expects broadly stable net interest margins in both Georgia and Armenia. It also said the second half of the year could be as strong as the first half, noting that activity has historically been stronger later in the year.
About Lion Finance Group (LON:BGEO)
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.
