- Record Net Income & ROE Net income surged 20.9% to GEL 2.2 billion with a 28.4% return on equity, driven by strong performance from both Lion Finance Group and Ameriabank.
- Macro Outlook Georgia and Armenia forecast GDP growth of 6% and 5.5–6% (2026), supported by services and public spending, though geopolitical risks remain elevated.
- Georgia's Performance Net profit rose 17% (GEL 460 million) with 16.1% loan growth, 15% digital user increase, and a 76 Net Promoter Score (NPS) reflecting high customer satisfaction.
- Armenia's Growth Net profit jumped 38% with 28% loan portfolio expansion (constant currency) and 33% customer base growth, aided by USD 4–9 billion in anticipated infrastructure investments.
- Group Operational Metrics Operating income grew 16.4% QoQ and 20.8% YoY, with net interest income up 19.9% and a 19.7% overall loan portfolio growth (8.5% in Armenia, 4–4.5% in Georgia).
Segmental Performance
The company's two franchises, Lion Finance Group and Ameriabank, delivered strong results, with above-average growth in the quality of the franchise and the portfolio. In Georgia, the company reported a net profit of GEL 460 million, a 17% growth on year-on-year, and a return on equity of 32.7%. The loan book grew by 16.1%, and digital monthly active users grew by 15%. In Armenia, the company reported a net profit growth of 38% and annualized stand-alone net profit growth of 24%. The loan portfolio grew by 28% in constant currency basis.
Valuation and Outlook
Given the company's strong performance, we can examine the valuation metrics to understand what's priced in. The Price-to-Tangible Book Value (P/TBV) ratio is 0.61, and the Dividend Yield is 3.24%. The company's guidance for net interest margin (NIM) is flat to slightly positive, and they expect to deploy extra liquidity. With a strong growth outlook, the company expects 10-20% growth in Georgia and 20-30% growth in Armenia. Analysts estimate next year's revenue growth at 15.5%, which is slightly higher than the company's guidance. As Archil Gachechiladze noted, "the bank's growth is self-funded in Armenia, but they are also working with development financial institutions to attract funding."
Growth Prospects and Risks
The company's growth prospects are supported by the strong macroeconomic outlook in Georgia and Armenia. The baseline outlook remains positive, but uncertainty is elevated due to geopolitical tensions in the region. The company's focus on customer satisfaction and commitment to making customers' lives better is expected to drive growth. However, the competitive landscape is strong, and the company needs to maintain profitability.