Lion Finance Group has reported a sharp rise in third-quarter profit, boosted by strong lending growth in Georgia and Armenia, and rewarded shareholders with a higher dividend and a fresh share buyback.

The London-listed banking group said profit reached GEL 661.9 million in the three months to the end of September, up 21.0% on the same period last year. Profit for the first nine months of 2026 rose 18.6% to GEL 1,865.7 million.

Shares in the group rose around 6% to 12,830p on the day the results were published, as investors welcomed the combination of growth and capital returns.

Loans grow by almost a quarter

The group's loan book expanded 24.6% year on year in constant currency to GEL 46.5 billion at the end of September, while client deposits rose 21.1% to GEL 44.9 billion.

Operating income before the cost of risk increased 25.4% to GEL 880.6 million, and net operating income rose 19.6% to GEL 1.29 billion. Return on average equity stood at 27.2% in both the quarter and the nine-month period.

On the group's earnings call, management said the cost-to-income ratio fell to a record low of 32.1% in the quarter, as revenue grew 19.6% while costs rose only 9%.

Dividend up and buyback extended

The board declared a third-quarter dividend of GEL 3.25 per share, up 22.6% year on year, and announced a further GEL 62 million share buyback and cancellation programme.

The group has repeatedly extended its buyback since August 2025, steadily reducing the share count and supporting earnings per share. On a nine-month basis, capital distribution to shareholders increased 17.6%.

Chief executive Archil Gachechiladze said the group was growing its balance sheet at almost 25% while still paying dividends and continuing with share buybacks. Book value per share rose 26.5% year on year to GEL 233.36.

Georgia and Armenia drive growth

Lion Finance owns Bank of Georgia, the largest bank in Georgia, and Ameriabank in Armenia. Georgia's financial services arm reported quarterly profit of GEL 494 million, up 13.9% year on year, while the Armenian business delivered profit growth of almost 45%.

Management reiterated its medium-term targets of annual loan growth of around 15%, return on average equity above 20% and a shareholder payout ratio of 30% to 50% through dividends and buybacks.

The group said it remained open to acquisitions but would pursue only deals it considers value-accretive. With lending growing strongly in both markets and profitability holding at high levels, Lion Finance has become one of the best-performing London-listed banking stocks of the year.

Sources: Sharecast and Lion Finance Group.