(Alliance News) - Lion Finance Group PLC on Tuesday said it expects further economic growth in Georgia and Armenia, as it increased its payouts to shareholders.
The Tbilisi-based lender, which recently changed its name from Bank of Georgia Group, declared a final GEL5.62 per share final dividend for 2024, up 14% from GEL4.94 in 2023. The total payout was GEL9.00 per share, up 13% from GEL8.00.
Pretax profit before items rose to GEL2.18 billion, around GBP620.3 million, in 2024 from GEL1.63 billion in 2023.
Net interest income increased 46% to GEL2.36 billion from GEL1.62 billion.
"Bank of Georgia maintained higher-than-usual liquidity levels, reinforcing resilience while resulting in associated costs, which slightly drove down the net interest margin in the fourth quarter, while the core lending margin remained stable. That said, Georgian Financial Services delivered a strong full-year performance. The loan book grew by 19.3% year-on-year in constant currency, underpinned by sustained demand across segments," the company said.
The company said it is aiming for an annual capital distribution ratio of between 30% and 50% in the medium term.
As part of that, Lion Finance announced a GEL107.7 million extension to its share buyback programme, which it said "will commence shortly and end no later than the company's annual general meeting 2025" in June.
Looking ahead, the financial firm said it expects real gross domestic product growth for Georgia's economy of around 5% for 2025, following 9.5% growth in 2024. That is despite political developments in the country having been "top-of-mind recently", it said.
Georgian government authorities have cracked down on opposition leaders and protestors that have been staging daily protests since the ruling Georgian Dream party won parliamentary elections in October and then shelved EU accession talks, AFP reports. In power since 2012, the party has faced increasing accusations of democratic backsliding and leading Georgia away from the West and closer to Moscow.
For Armenia, Lion Finance said: "We remain optimistic about the Armenian growth story. The recent signing of the Charter on Strategic Partnership between Armenia and the US, ongoing EU visa liberalisation talks, and the Armenian government's approval of a bill to initiate its EU accession bid all reinforce the country's positive outlook. Armenia's real [gross domestic product] grew by 5.9% in 2024, and with ongoing structural reforms expected to further enhance the resilience and capacity of the Armenian economy, the IMF projects real GDP growth of 4.9% in 2025."
Lion Finance shares were up 9.5% to 5,816.48 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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Bank Of Georgia Group (BGEO)
