FY25 headline numbers and why they matter
Lion Finance Group’s preliminary, unaudited FY25 numbers show a high-quality growth year. Profit before one-off items rose 20.9% to GEL 2,192.8 million, with an adjusted return on average equity (ROAE) of 28.4%. In 4Q25 alone, profit before one-offs was GEL 619.3 million, up 22.7% year-on-year. Book value per share increased 21.6% to GEL 197.85.
Loans grew briskly across both Georgia and Armenia, while asset quality stayed disciplined. Group loans reached GEL 40,065.7 million (+19.7% y-o-y in constant currency), and deposits hit GEL 38,630.0 million (+17.3% y-o-y in constant currency). The cost of credit risk ratio was 0.3% in 4Q25, and the non-performing loan (NPL) ratio was a low 2.1% at year end.
Crucially, FY25 comparatives can be noisy because Ameriabank’s income statement was consolidated from 1 April 2024. Management therefore highlights 4Q25 year-on-year growth to show underlying momentum – and it looks strong.
| Key FY25 metrics | FY25 | Trend |
|---|---|---|
| Profit before one-offs | GEL 2,192.8m | +20.9% y-o-y |
| Adjusted ROAE | 28.4% | High and resilient |
| Loans | GEL 40,065.7m | +19.7% y-o-y (cc) |
| Client deposits and notes | GEL 38,630.0m | +17.3% y-o-y (cc) |
| Cost of credit risk ratio (4Q25) | 0.3% | Down vs 4Q24/3Q25 |
| NPL ratio (Dec-25) | 2.1% | Stable |
| Book value per share | GEL 197.85 | +21.6% y-o-y |
| Dividend per share (FY25 total) | GEL 10.50 | +16.7% y-o-y |
| Share buybacks (FY25 total) | GEL 203m | Ongoing reduction in share count |
Note: ROAE is return on average equity. Constant currency (cc) growth strips out FX effects.
Dividend, buybacks, and payout policy
The Board declared a 4Q25 interim dividend of GEL 2.75 per share, taking the total FY25 cash dividend to GEL 10.50 per share. On top, a further GEL 53.5 million buyback was approved, bringing total FY25 buybacks to GEL 203 million. Combined, that’s a 30% payout ratio – squarely within the Group’s 30-50% policy range.
Key dates: Ex-dividend 26 March 2026, record date 27 March 2026, payment date 14 April 2026. The Lari/Pound rate for conversion will be the NBG average for 23-27 March 2026. Following recent cancellations, voting rights in issue were 43,365,907 as of 24 February 2026.
Growth engine check: Georgia and Armenia
Georgian Financial Services – strong, with some margin pressure
GFS delivered FY25 profit before one-offs of GEL 1,708.7 million and a 32.0% adjusted ROAE. Operating income rose 12.6% for the year, with 4Q25 up 14.4% y-o-y.
- Net interest margin (NIM) was 5.9% in 4Q25 (down 30 bps q-o-q). Loan yields were steady, but funding costs rose, reflecting higher client deposit costs and the GEL 450 million Eurobond issued in November 2025. For the year, NIM dipped 10 bps to 5.9%.
- Fees recovered strongly after renegotiating terms with international payment systems. 4Q25 net fee and commission income jumped 33.8% y-o-y; normalised growth would have been around 15% without the fee-expense uplift.
- FX income softened due to lower currency volatility and more competition.
- Costs rose 18.5% y-o-y in 4Q25, partly due to accelerated recognition of share-based awards and a GEL 4.4 million contribution to the new Resolution Fund. Excluding these, 4Q25 operating expense growth would have been 14.5% y-o-y.
- Credit quality is healthy: 4Q25 cost of risk at 0.4%; NPL ratio at 2.1%.
Liquidity and capital headroom remain comfortable at Bank of Georgia: IFRS-based NBG LCR 147.7% and NSFR 134.1%. CET1/Tier 1/Total capital stood at 17.6%/20.5%/22.0%, all above minima.
Armenian Financial Services – rapid expansion, tightening margins
Ameriabank posted GEL 452.4 million FY25 profit with a 22.6% ROAE. Loans grew 28.0% y-o-y (cc) and deposits 21.9% y-o-y (cc), reinforcing market leadership: lending share rose to 21.7% and deposits to 19.5% at year-end.
- NIM was 6.3% in 4Q25 (6.8% in 4Q24), with higher deposit costs and a greater AMD/time-deposit mix pushing cost of funds up. Loan yields eased 10 bps y-o-y in the quarter.
- 4Q25 net fee and commission income rose 34.1% y-o-y, including a GEL 7.1 million reclassification of currency conversion fees and a significant GEL 13.7 million advisory fee. Excluding the reclass, fee growth would have been c.16%.
- Costs were broadly flat y-o-y in 4Q25 at the segment level; on a standalone basis, Ameriabank’s operating expenses were up 10.4% y-o-y for the quarter.
- Credit quality is prudent: 4Q25 cost of risk 0.2% and NPL ratio at 2.1% (standalone figures).
Capital and liquidity are solid: CBA LCR 249.9% and NSFR 127.3%. CET1/Tier 1/Total capital at 14.4%/14.4%/17.0% exceeded minima, with early-2026 capital actions (EUR 30m Tier 2 and USD 50m AT1 at 8.5%) providing extra headroom.
Balance sheet strength, asset quality, and profitability
Group operating income rose 16.4% y-o-y in 4Q25 to GEL 1,201.3 million, with non-interest income up 10.1% to GEL 405.4 million, led by fees. The adjusted cost:income ratio was 35.5% for FY25 (34.3% in FY24), reflecting strategic investment and some inflation in costs.
Asset quality remains a bright spot: NPLs are 2.1% of gross loans, with a cost of credit risk ratio of 0.4% for FY25. NPL coverage was 57.8% (63.0% in FY24) – something to watch, though collateral-adjusted coverage is a sturdy 116.3%.
Profitability metrics are still elite for a universal bank in emerging markets: adjusted ROAE of 30.1% in 4Q25 and 28.4% for the year; Group NIM at 6.1% for FY25, modestly lower than FY24’s 6.3% given funding cost drift.
Digital momentum and customer franchise
Digital engagement continues to power growth and retention. Bank of Georgia’s retail Digital MAU rose 15.0% y-o-y to over 1.8 million, with Digital DAU near 1.0 million. Ameriabank’s retail Digital MAU jumped 45.3% y-o-y to 336 thousand, with plenty of headroom given Armenia’s lower digital penetration.
Payments volumes at Bank of Georgia grew strongly: acquiring volumes up 22.6% y-o-y in 4Q25, with POS and e‑commerce both contributing. This supports fee income and deepens the day-to-day banking relationship.
Macro tailwinds in Georgia and Armenia
Georgia grew 7.5% in 2025, with a 6.0% forecast for 2026. Inflation eased to 4.0% in December, and a cumulative 50 bps of rate cuts are expected in 2026 from the current 8.0% policy rate, conditions that generally favour loan demand and funding stability.
Armenia grew 7.2% in 2025, with 5.5-6.0% projected in 2026. Inflation was 3.3% in December, close to target, and the policy rate stands at 6.5%. A durable peace accord and border opening could unlock further medium-term upside.
What I’m watching next
- Funding costs and deposit mix – both GFS and AFS saw upward pressure. Any further NIM compression would be the main profitability headwind.
- Fee sustainability – GFS benefits from renegotiated payment terms; AFS saw a large advisory fee and an accounting reclass. Normalised fee momentum into 2026 is key.
- NPL coverage – still fine, but down year-on-year. Credit discipline and collateral values deserve ongoing scrutiny.
- Capital buffers – strong at Bank of Georgia; tighter at Ameriabank but improving with Tier 2 and AT1 issuance in early 2026.
Bottom line for shareholders
This is a high-quality print. Underlying profit grew strongly, returns remain top-tier, the loan franchise is expanding in two healthy economies, and asset quality is well controlled. The 30% payout – with a higher dividend and continued buybacks – underlines confidence and supports per-share value compounding.
There are some mild blemishes: marginal NIM pressure, softer FX income, and a step-up in costs as the Group invests for growth. But on balance, the positives clearly outweigh the negatives.
For more detail, see the company’s Results Centre and investor pages:
Results Centre,
