Lion Finance boosts dividend and extends share buyback as profit grows

Lion Finance Group PLC on Tuesday reported progress in Georgia and Armenia in the first half of 2026 reflected in higher group profit and net interest income.

The Tbilisi-based lender in Georgia and Armenia, formerly known as Bank of Georgia, said pretax profit rose 19% to GEL1.45 billion, around £411.8 million, in the first half of 2026 from GEL1.22 billion the year prior.

Net interest income grew 20% to GEL1.71 billion from GEL1.42 billion, while net operating income climbed 17% to GEL2.37 billion from GEL2.02 billion.

In the second quarter, pretax profit rose 23% to GEL751.1 million from GEL610.0 million the year prior.

Net interest income grew 22% to GEL886.2 million from GEL727.5 million while net operating income climbed 20% to GEL1.24 billion from GEL1.04 billion.

Basic earnings per share rose 22% to GEL14.52 in the second quarter from GEL11.89 a year ago, taking it to GEL28.24 in the first six months of 2026, up 19% from GEL23.70.

"Our results for the first half reflect a business performing with a real momentum," said Chief Executive Archil Gachechiladze.

"In Georgia, although our franchise has already reached significant scale, customer engagement continues to deepen - daily active users surpassed 1 million for the first time, up 20.0% year-on-year, with the loan book growing 17.1% y-o-y. In Armenia, we are growing well ahead of both the market and our own guidance, with the loan book up 36.8% year-on-year in constant currency," the CEO added.

Shares in Lion Finance were up 0.8% at 12,604.05 pence each in London on Tuesday morning.

Lion Finance said its key targets for the medium term remain around 15% annual growth of the group's loan book, a 20% plus return on average equity and a 30% to 50% payout ratio.

The firm declared an interim dividend of GEL3.05 per share, bringing the first half dividend to GEL5.90 per share, up 16% on-year from GEL5.10.

In addition, the company approved a GEL59.0 million extension to its share buyback programme. This will start "shortly" and end no later than the company's annual general meeting in 2027. In February, the company approved a GEL53.5 million extension to its buyback.

The programme will be run by Cavendish Capital Markets Ltd.

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