Key facts
- Lion Finance, formerly Bank of Georgia, joined the FTSE 100 index this year.
- The bank's stock has increased by over 500% since early 2022.
- Lion Finance's second-quarter profit reached GEL618.8m, up 21% year-on-year.
- Recent earnings surpassed market expectations, contributing to a 40% year-to-date stock gain.
- The bank plans to distribute 30-50% of its annual profits through dividends and share buybacks.
Lion Finance, a bank formerly known as Bank of Georgia, has experienced a significant surge in its stock value, climbing over 500% since the beginning of 2022. This ascent led to its promotion to the FTSE 100 index earlier this year, marking a period where the bank, according to its chief executive Archil Gachechiladze, is finally receiving the attention it felt it lacked for most of its existence. Gachechiladze, who is now one of the longest-serving blue-chip bank bosses and the youngest CEO of a FTSE 100 company, noted a "sudden increased" interest following the promotion.
Recent financial results have further bolstered investor confidence. Lion Finance's second-quarter profit hit GEL618.8m (£175m), representing a 21% year-on-year increase and exceeding market expectations by 5%. This performance was driven by strong net interest income, an expanding loan book, and better-than-expected fee income, which offset higher costs. The post-results rally propelled the stock to a year-to-date gain of over 40%, positioning it as one of the top-performing blue-chip stocks this year.
Gachechiladze attributes the bank's success to the strong economic growth in its primary markets, Armenia and Georgia. Despite Georgia facing political turmoil related to its democratic future and closer ties with Moscow, Gachechiladze stated that the domestic situation does not directly affect Lion Finance's business, with the economy performing well. Analysts, such as Jens Ehrenberg from Cavendish and Ben Maher from KBW, remain optimistic, citing persistently strong growth and continued delivery in key areas, with both setting a target price of around 13,500p for the group.
Lion Finance aims to distribute 30-50% of its annual profits through quarterly dividends and share buybacks. In the first half of 2026, the bank increased its cumulative dividend by 15.7% year-on-year to GEL5.90 per share (167p) and completed a buyback worth £15.6m. Gachechiladze's ambition extends to potentially joining the FTSE 50, a more prestigious index.