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1. Company Snapshot

1.a. Company Description

Bank of Georgia Group PLC, through its subsidiaries, provides various banking products and services in Georgia.It operates through three segments: Retail Banking, Corporate and Investment Banking, and BNB.The Retail Banking segment offers consumer loans, mortgage loans, overdrafts, credit cards, and other credit facilities; funds transfer and settlement services; and customers' deposits for individuals and legal entities under the Express, Bank of Georgia, MSME, and SOLO brands.


It primarily serves retail, and mass retail and affluent segments, as well as small and medium enterprises, and micro businesses.The Corporate Investment Banking segment provides loans and other credit facilities, funds transfers and settlement services, trade finance services, and documentary operations support services; and handles saving and term deposits for corporate and institutional customers.This segment also offers private banking services to high net worth clients; and brokerage services.


The BNB segment provides retail and corporate banking services to clients in Belarus.As of December 31, 2021, the company operated 211 retail branches, 989 automated teller machines, and 3,134 Express Pay terminals.Bank of Georgia Group PLC was incorporated in 2017 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on BGEO

Bank of Georgia Group PLC's recent performance was driven by strong profitability in its Georgian and Armenian franchises, buoyed by a supportive macroeconomic backdrop. The company's Q4 earnings call highlighted a "record quarter and a record year," with solid operating momentum across its private portfolio companies. Additionally, Georgia Capital's H2 earnings call showcased strong net asset value growth and accelerating capital returns. Analyst coverage has also been positive, with a fair value estimate of around £95.66 per share, reflecting confidence in the group's established franchise.

1.c. Company Highlights

2. Lion Finance Group PLC Delivers Record Quarterly and Annual Performance

Lion Finance Group PLC reported a record quarterly and annual performance, with net income growing by 20.9% to GEL 2.2 billion and a 28.4% return on equity. The company's earnings per share (EPS) came in at 3.95, beating analyst estimates of 3.39. Revenue growth was robust, with operating income up by 16.4% in the quarter and by 20.8% for the year. Net interest income was strong, with a 19.9% growth for the quarter and a 25.9% growth for the year.

Publication Date: Feb -26

📋 Highlights
  • Record Net Income & ROE: Net income surged 20.9% to GEL 2.2 billion with a 28.4% return on equity, driven by strong performance from both Lion Finance Group and Ameriabank.
  • Macro Outlook: Georgia and Armenia forecast GDP growth of 6% and 5.5–6% (2026), supported by services and public spending, though geopolitical risks remain elevated.
  • Georgia's Performance: Net profit rose 17% (GEL 460 million) with 16.1% loan growth, 15% digital user increase, and a 76 Net Promoter Score (NPS) reflecting high customer satisfaction.
  • Armenia's Growth: Net profit jumped 38% with 28% loan portfolio expansion (constant currency) and 33% customer base growth, aided by USD 4–9 billion in anticipated infrastructure investments.
  • Group Operational Metrics: Operating income grew 16.4% QoQ and 20.8% YoY, with net interest income up 19.9% and a 19.7% overall loan portfolio growth (8.5% in Armenia, 4–4.5% in Georgia).

Segmental Performance

The company's two franchises, Lion Finance Group and Ameriabank, delivered strong results, with above-average growth in the quality of the franchise and the portfolio. In Georgia, the company reported a net profit of GEL 460 million, a 17% growth on year-on-year, and a return on equity of 32.7%. The loan book grew by 16.1%, and digital monthly active users grew by 15%. In Armenia, the company reported a net profit growth of 38% and annualized stand-alone net profit growth of 24%. The loan portfolio grew by 28% in constant currency basis.

Valuation and Outlook

Given the company's strong performance, we can examine the valuation metrics to understand what's priced in. The Price-to-Tangible Book Value (P/TBV) ratio is 0.61, and the Dividend Yield is 3.24%. The company's guidance for net interest margin (NIM) is flat to slightly positive, and they expect to deploy extra liquidity. With a strong growth outlook, the company expects 10-20% growth in Georgia and 20-30% growth in Armenia. Analysts estimate next year's revenue growth at 15.5%, which is slightly higher than the company's guidance. As Archil Gachechiladze noted, "the bank's growth is self-funded in Armenia, but they are also working with development financial institutions to attract funding."

Growth Prospects and Risks

The company's growth prospects are supported by the strong macroeconomic outlook in Georgia and Armenia. The baseline outlook remains positive, but uncertainty is elevated due to geopolitical tensions in the region. The company's focus on customer satisfaction and commitment to making customers' lives better is expected to drive growth. However, the competitive landscape is strong, and the company needs to maintain profitability.

3. NewsRoom

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Lion Finance Group Q4 Earnings Call Highlights

Feb -25

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Georgia Capital H2 Earnings Call Highlights

Feb -24

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How Recent Analyst Coverage Is Shaping The Story Behind Lion Finance Group’s Valuation

Dec -06

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Lion Finance Group PLC (FRA:GEB) Q3 2025 Earnings Call Highlights: Robust Loan Growth and ...

Nov -25

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How Analyst Upgrades Are Shaping the Lion Finance Group Story for Investors

Nov -21

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Lion Finance Group PLC (FRA:GEB) (Q2 2025) Earnings Call Highlights: Strong Profit Growth ...

Aug -23

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Lion Finance Group Second Quarter 2025 Earnings: EPS Misses Expectations

Aug -23

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Lion Finance Group's (LON:BGEO) investors will be pleased with their enviable 987% return over the last five years

Aug -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.58%)

6. Segments

Retail Banking

Expected Growth: 12%

The 12% growth in Retail Banking from Bank of Georgia Group PLC is driven by increasing demand for consumer loans, expansion of digital channels, and strategic partnerships. Additionally, the bank's focus on customer experience, innovative product offerings, and effective cost management have contributed to the growth. Furthermore, the bank's strong brand recognition and extensive branch network have enabled it to capitalize on the growing Georgian economy.

Corporate Investment Banking

Expected Growth: 18%

Strong economic growth in Georgia, increasing demand for corporate lending and investment products, strategic expansion into new markets, and effective cost management have driven 18% growth in Corporate Investment Banking at Bank of Georgia Group PLC.

Small and Medium-sized Enterprises

Expected Growth: 10%

The 10% growth of Small and Medium-sized Enterprises (SMEs) from Bank of Georgia Group PLC is driven by increased lending, improved financial inclusion, and government support for entrepreneurship. Additionally, the bank's digitalization efforts, simplified loan procedures, and competitive interest rates have also contributed to the growth.

Belarusky Narodny Bank

Expected Growth: 11%

Belarusky Narodny Bank's 11% growth is driven by strategic expansion into retail banking, increased lending to SMEs, and a growing presence in the Belarusian market. Additionally, the bank's digital transformation efforts, including the introduction of online banking and mobile payment systems, have improved operational efficiency and enhanced customer experience.

Eliminations

Expected Growth: 5%

Bank of Georgia Group PLC's 5% growth driven by increasing demand for digital banking services, expansion into microfinance and SME lending, strategic partnerships, and cost optimization initiatives. Additionally, the group's diversified revenue streams, strong risk management practices, and favorable macroeconomic conditions in Georgia contribute to its growth momentum.

7. Detailed Products

Retail Banking

Provides a range of personal banking services including current and savings accounts, credit cards, personal loans, and mortgages.

Corporate Banking

Offers a range of services to corporate clients, including cash management, trade finance, and lending solutions.

Micro, Small and Medium-Sized Enterprises (MSME) Banking

Provides specialized banking services to micro, small, and medium-sized enterprises, including lending, cash management, and trade finance solutions.

Wealth Management

Offers investment and wealth management services to high net worth individuals, including portfolio management, investment advice, and wealth planning.

Card Services

Provides a range of card services, including debit and credit cards, prepaid cards, and loyalty programs.

Digital Banking

Offers online and mobile banking services, including account management, bill payments, and fund transfers.

Insurance Services

Provides a range of insurance products, including life insurance, non-life insurance, and health insurance.

8. Bank of Georgia Group PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bank of Georgia Group PLC is moderate due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration of buyers in the Georgian banking industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of a few large suppliers of technology and services to the banking industry.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the Georgian banking industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large banks in the Georgian market, leading to intense competition for customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.09%
Debt Cost 9.36%
Equity Weight 58.91%
Equity Cost 9.36%
WACC 9.36%
Leverage 69.76%

11. Quality Control: Bank of Georgia Group PLC passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Bank of Georgia

A-Score: 8.0/10

Value: 8.3

Growth: 9.9

Quality: 7.1

Yield: 8.1

Momentum: 10.0

Volatility: 4.7

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Banca IFIS

A-Score: 7.2/10

Value: 6.8

Growth: 5.1

Quality: 6.4

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

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Sparebanken Vest

A-Score: 7.1/10

Value: 7.9

Growth: 5.1

Quality: 7.3

Yield: 9.4

Momentum: 6.0

Volatility: 6.7

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Vestjysk Bank

A-Score: 6.2/10

Value: 5.1

Growth: 3.2

Quality: 7.3

Yield: 8.1

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

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Banco di Desio Brianza

A-Score: 6.0/10

Value: 5.5

Growth: 5.1

Quality: 4.5

Yield: 8.1

Momentum: 8.5

Volatility: 4.3

1-Year Total Return ->

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Bank of Cyprus

A-Score: 4.3/10

Value: 5.1

Growth: 5.1

Quality: 6.6

Yield: 2.5

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

110.4$

Current Price

110.4$

Potential

-0.00%

Expected Cash-Flows