Full Year 2024 Lion Finance Group PLC Earnings Call Transcript
Key Points
- Lion Finance Group PLC (BDGSF) reported a record adjusted profit for the full year of 1.8 billion GEL, marking a 32% increase compared to 2023.
- The company's return on equity stands at an impressive 30%, with a cost to income ratio below 35%.
- The loan portfolio quality remains strong, with a cost of credit risk ratio at 0.5% for the full year.
- The acquisition of Ameriabank, the leading bank in Armenia, has been a significant step, contributing to 26% of the group's total assets.
- Lion Finance Group PLC was recognized as the world's best digital bank by Global Finance, highlighting its strong digital offerings and customer satisfaction focus.
- Geopolitical tensions have impacted the bank's operations, causing a slowdown in mortgage issuances and payment terminal growth in December.
- The capital distribution is expected to remain on the lower side due to relatively low capital ratios in Armenia, constraining payouts.
- There is a risk of deposit outflows if geopolitical tensions ease, potentially affecting the bank's liquidity.
- The cost of risk is expected to normalize around 1% in the medium term, which could impact profitability.
- The competitive environment in Armenia may lead to market consolidation, which could affect Lion Finance Group PLC's market position.
Hello. Welcome everybody to Lion Finance Group PLC's earnings call. Today we're presenting, our results for the first quarter and the full year of 2024. My name is Nini Arshakuni. I'm head of IR and I'll be joined on this call by the group, CEO Archil Gachechiladze.
We are very pleased to, report another strong set of results, driven by strong performance across our key, business divisions in Georgia and Armenia, with Armenian Financial Services now accounting for 26% of the group's total asset.
We have achieved a record, adjusted profit for the full year of 1.8 billion GEL that's a 32% increase versus 2023, and we actually reported significant items on top of this figure in 2024.
Our return on equity stands at 30%. Cost to income ratio is below 35%, and our loan portfolio quality remains very healthy with cost of credit risk ratio at 0.5% for the full year.
Our CEO Archil will provide a deeper dive into this result, but before that I would like to invite our Chief Economist Akaki Li Kokelli, who
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