2Q26 and 1H26 Results Report
Summary by AI BETAClose X
Contents
2Q26 and 1H26 consolidated unaudited results
Earnings call on 11 August 2026, 14:00 BST
CEO statement
Macroeconomic developments: Georgia
Macroeconomic developments: Armenia
2Q26 and 1H26 unaudited consolidated results
Georgian Financial Services (GFS)
Armenian Financial Services (AFS)
Unaudited consolidated financial information
Principal risks and uncertainties
Statement of directors' responsibilities
Interim Condensed Consolidated Financial Statements
Lion Finance Group PLC profile
2Q26 and 1H26 consolidated unaudited results
Lion Finance Group PLC announces its unaudited consolidated financial results for the second quarter and first half of 2026 (2Q26 and 1H26). Unless otherwise noted, 2Q26 results are compared year-on-year with 2Q25 and quarter-on-quarter with 1Q26; 1H26 results are compared year-on-year with 1H25.
The results have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the United Kingdom and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, are unaudited and derived from management accounts.
Earnings call on 11 August 2026, 14:00 BST
https://zoom.us/webinar/register/WN_b53Fng5JQpCgH4DzOI8GeA
Webinar ID: 972 5414 7641 | Passcode: 331608
Segmentation guide
The Group's results are presented by the following Business Divisions: 1) Georgian Financial Services (GFS), 2) Armenian Financial Services (AFS), and 3) Other Businesses.
|
• |
GFS mainly comprises JSC Bank of Georgia and the investment bank JSC Galt and Taggart. |
|
• |
AFS includes Ameriabank CJSC. |
|
• |
Other Businesses includes JSC Belarusky Narodny Bank (BNB), which serves retail and SME clients in Belarus; JSC Digital Area, a digital ecosystem in Georgia including e-commerce, ticketing, and inventory management SaaS; Lion Finance Group PLC, the holding company; and other small entities and intragroup eliminations. |
Customer franchise expansion across core markets drives continued growth momentum
|
• |
Consolidated 2Q26 profit of GEL 618.8 million (+20.6% y-o-y) and 1H26 profit of GEL 1,203.8m (+17.3% y-o-y) |
|
• |
2Q26 dividend of GEL 3.05 per share, bringing 1H26 dividend to GEL 5.90 per share, up 15.7% y-o-y; with a further GEL 59.0m share buyback and cancellation programme. |
Archil Gachechiladze, CEO of Lion Finance Group, said: "Our results for the first half reflect a business performing with a real momentum. 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, and Retail Digital MAU surging 47.0% year-on-year, as we scale the franchise and gain market share in one of the region's most dynamic economies."
Group performance highlights
|
• |
A growing active customer base and larger balance sheet supported a 19.6% y-o-y increase in operating income before cost of risk to GEL 1,551.4m in 1H26, with profit up 17.3% y-o-y to GEL 1,203.8m and a half-year ROAE of 27.2%. |
|
• |
Bank of Georgia's Retail Digital MAU grew 13.3% y-o-y to 1,922.1 thousand individuals, while Retail Digital DAU surpassed 1 million for the first time, up 20.0% y-o-y, reflecting continued deepening of customer engagement across our Georgian franchise. |
|
• |
Ameriabank's Retail Digital MAU surged 47.0% y-o-y to 392.1 thousand individuals, while Retail Digital DAU grew 58.3% y-o-y to 174.2 thousand individuals, underscoring the accelerating momentum of our Armenian retail franchise. |
|
• |
The Group's loan book reached GEL 44,429.0m as at 30 June 2026, up 23.0% y-o-y in constant currency (cc). The growth was fuelled by loan book expansion across both the Georgian (GFS) and Armenian (AFS) operations, which recorded year-on-year cc increases of 17.1% and 36.8%, respectively. |
|
• |
Client deposits and notes totalled GEL 43,664.8m as at 30 June 2026, reflecting a 26.8% y-o-y increase in cc. GFS deposits rose by 24.2% y-o-y, partly elevated by Ministry of Finance deposits; excluding these, growth stood at 18.4% y-o-y, driven by continued strong growth across the board. AFS deposits grew by 37.1% y-o-y, with broad-based growth across both retail and corporate segments. |
|
• |
The Group maintained healthy asset quality, with the cost of credit risk ratio at 0.6% in 2Q26 (0.5% in 2Q25) and 0.5% in 1H26 (0.4% in 1H25), while the NPL ratio stood at 2.1% as at 30 June 2026 (1.9% as at 30 June 2025). |
|
• |
Net operating income was up 19.5% y-o-y to GEL 1,241.6m in 2Q26 and up 17.3% y-o-y to GEL 2,366.5m in 1H26. The annual top-line growth was primarily driven by net interest income generated by both GFS and AFS, complemented by net fee and commission income generation across both operations. |
|
• |
Group NIM reached 6.3% in both 2Q26 and 1H26, expanding 20 bps and 30 bps y-o-y respectively, with the improvement driven by a strong NIM performance at GFS - where margins widened by 40 bps y-o-y in both periods to reach 6.4% in 2Q26. On a q-o-q basis, GFS's NIM was up 10 bps, while that of AFS held steady at 6.0%. |
|
• |
The Group's operating expenses increased by 12.8% y-o-y to GEL 426.7m in 2Q26 and by 13.2% y-o-y to GEL 816.1m in 1H26. The y-o-y growth was driven primarily by GFS, which saw expenses rise by 13.9% y-o-y in 2Q26 and 15.2% y-o-y in 1H26, mainly driven by higher staff costs and administrative costs (see details on page 9). |
|
• |
The effective tax rate, which stood at 17.6% in 2Q26 for the Group, was impacted by an additional tax charge attributable to dividends received from Ameriabank; excluding this item, the normalised effective tax rate would have been 16.5%, broadly in line with the prior quarter. |
|
• |
Capital adequacy and liquidity positions for both Bank of Georgia and Ameriabank remained comfortably above the minimum regulatory requirements (for details, see pages 10 and 13). |
CEO statement
The Group delivered another set of strong results in the second quarter and first half of 2026, with profit of GEL 618.8m, up 20.6% year-on-year for the second quarter, and GEL 1,203.8m for the first half, an increase of 17.3% year-on-year, with a return on average equity of 27.1% for 2Q26 and 27.2% for the half year. Our book value per share grew 24.8% year-on-year to GEL 220.69, and the Group loan book expanded 23.0% year-on-year in constant currency, underpinned by the deepening customer relationships and digital engagement that define our franchises in both markets.
In Georgia, although our franchise has already reached significant scale, it continues to deepen. Over one million customers now open our app every single day, up 20.0% year-on-year, and 73% of retail products are sold through digital channels. When customers are this close to us, the relationship compounds: we know them better, we lend more confidently, and we earn their deposits. The result is a loan book growth of 17.1% year-on-year in constant currency, delivered alongside a strong loan yield and healthy asset quality.
In Armenia, Ameriabank is scaling rapidly. 75.2% of our monthly active customers are now digitally engaged, up nearly 10 percentage points year-on-year, with Retail Digital Monthly Active Users surging 47.0% year-on-year to over 392 thousand individuals. Market share gains continued across both loans and deposits, and the loan book grew approximately 36.8% year-on-year in constant currency, well ahead of our target for Armenia.
Together, these two franchises are delivering loan book growth of 23.0% year-on-year at the Group level (in constant currency), well ahead of our c.15% blended target, with the cost of credit risk remaining healthy throughout - a combination that reflects both the quality of what we have built and the discipline with which we are growing it.
Reflecting our continued financial strength and commitment to delivering value to shareholders, the Board has today declared a quarterly dividend of GEL 3.05 per share in respect of 2Q26, bringing the cumulative 1H26 dividend to GEL 5.90 per share - up 15.7% year-on-year. The Board has also approved a further GEL 59.0m share buyback and cancellation programme.
Georgia and Armenia remain among the broader region's fastest-growing and most prudently managed economies - resilient, underpinned by strong macroeconomic fundamentals, and increasingly well-connected as the Middle Corridor gains strategic relevance. We have revised our full-year 2026 real GDP growth forecast for Georgia upward to 7.5%, reflecting stronger-than-expected performance in the first half of the year; in Armenia, we anticipate a stronger second half and forecast full-year growth of 5.5%. Both economies have demonstrated resilience to the recent escalation in the Middle East, thanks to their limited direct exposure to the region and well-diversified sources of external inflows. Financial deepening is ongoing, income convergence with Central and Eastern European peers continues, and the large-scale infrastructure investment pipeline in both countries reinforces a medium-term growth trajectory that extends well beyond near-term forecasts. Our established presence and market-leading franchises in both markets place us in an excellent position to benefit.
I want to thank our employees across different countries for their dedication to the success of our customers and, by extension, the success of the entire Group.
Archil Gachechiladze
CEO, Lion Finance Group PLC
10 August 2026
Our key targets for the medium term remain:
|
• |
c.15% annual growth of the Group's loan book. |
|
• |
20%+ return on average equity. |
|
• |
30-50% payout ratio (dividends and share buyback and cancellation programme). |
Macroeconomic developments: Georgia
Sustained economic growth momentum
Georgia's economy maintained strong growth momentum in the first half of 2026, with real GDP expanding by 7.9% y-o-y, according to preliminary data, driven mainly by services and manufacturing. Reflecting stronger-than-expected first-half performance, we have revised our full-year real GDP growth forecast upward from 7.0% to 7.5%. The outlook is supported by sustained household consumption, resilient external inflows, and an expected rebound in public capital spending.
Ongoing tensions in the Middle East continue to pose downside risks, primarily through higher energy prices. However, the impact on Georgia's economic activity has been limited, reflecting low direct exposure to the region and diversified sources of external inflows. Moreover, Georgia's ample macroeconomic policy buffers enhance the economy's resilience to potential shocks.
Strong external flows
External inflows remained solid in 2Q26. The trade deficit continued to narrow as merchandise exports increased by 17.1% y-o-y, while imports rose only by 5.4% y-o-y. During the same period, international tourism revenues declined modestly by 3.8% y-o-y, with weaker inflows from the Middle East and South Asia partially offset by higher arrivals from the EU and neighbouring countries. Inbound money transfers also remained strong, rising by 8.4% y-o-y, with the largest contributions from the EU, the US, Russia, and Israel.
Appreciating GEL and record-high international reserves
In the first seven months of 2026, the Georgian Lari (GEL) appreciated by 2.5% against the US dollar. During the same period, it gained 5.0% against the Euro and 3.4% against the Pound Sterling. The appreciation of the Georgian Lari was underpinned by strong external inflows, continued deposit de-dollarisation, and rising non-resident holdings of Georgian government securities.
The National Bank of Georgia (NBG) stepped up its foreign currency purchases in mid-2026, lifting international reserves to a record high of USD 7.5 billion at the end of July 2026 (up 50.0% y-o-y). We expect the GEL to remain broadly stable in the medium term, supported by sound macroeconomic fundamentals and prudent policies.
Elevated inflation and moderately tight monetary policy
Inflation remained elevated in 2Q26, primarily driven by higher food and fuel prices. Headline CPI inflation rose to 5.8% y-o-y in June 2026, from 4.3% in March. Meanwhile, core inflation remained lower, indicating that underlying price pressures were more contained. We expect headline inflation to average 5.1% in 2026, remaining above the NBG's 3% target before returning to target next year.
The NBG raised its refinancing rate by 25 bps to 8.25% in May and has kept it unchanged since then. We expect the central bank to maintain a moderately tight monetary policy stance throughout 2026 to ensure that inflation expectations remain well anchored.
Strong fiscal discipline
Georgia's fiscal position remains strong, supported by sustained economic activity. In 2025, the fiscal deficit narrowed to 1.4% of GDP, reflecting stronger-than-expected economic growth and lower-than-planned capital expenditure. The fiscal deficit is budgeted at 2.0% of GDP in 2026, remaining consistent with fiscal sustainability. The government plans to reduce the debt-to-GDP ratio further from 34.4% at end-2025 to 33.0% by end-2026. The successful syndicated issuance of a GEL 400 million government bond in May underscored strong investor confidence in the country's macroeconomic stability and policy framework.
Healthy bank lending
The banking sector continues to demonstrate sound fundamentals, high liquidity, and strong capitalisation. Lending remained broadly in line with nominal economic activity, expanding by 14.5% y-o-y in 2Q26 on a cc basis, following growth of 14.9% in the previous quarter. Business and consumer lending continued to drive credit expansion. Loan dollarisation fell to 41.6% at end-June 2026, a 0.4pp decline quarter-on-quarter. Deposit dollarisation also declined further by 2.7pp over the same period to 43.8%.
More information on the Georgian economy and financial sector can be found at Galt & Taggart, the Group's investment banking and brokerage subsidiary.
Macroeconomic developments: Armenia
Sustained economic growth
The Armenian economy expanded by 4.0% y-o-y in 1Q26, reflecting a high base effect in financial services and some moderation in domestic activity ahead of the June parliamentary elections. Given the slightly weaker-than-expected first-quarter performance and the impact of Russia's import restrictions on selected Armenian agricultural products, imposed in stages since late May, we have revised our full-year 2026 real GDP growth forecast to 5.5% from 6.0%. Economic activity is expected to be supported by continued growth in services, ongoing fiscal stimulus, and the planned launch of a new gold mine this year, which should boost industrial output. The June Parliamentary elections reaffirmed the incumbent government's mandate, supporting broad policy continuity, including closer relations with the West.
The impact of Russia's import restrictions on Armenian agricultural products is expected to be partially offset by proposed trade liberalisation with the EU and targeted government support measures. The Armenian government has reaffirmed its commitment to maintaining economic cooperation with Russia and continued participation in the Eurasian Economic Union. Ongoing tensions in the Middle East pose additional downside risks. Nevertheless, their impact on Armenia's economy has remained limited, reflecting the country's low direct exposure to the region and diversified source of external inflows.
Overall, prudent macroeconomic management and broad policy continuity underpin Armenia's economic resilience. The medium-term growth outlook also carries significant upside potential from the historic 2025 peace accord with Azerbaijan and the normalisation of relations with Türkiye.
Resilient external inflows and strong Dram
Following the previous surge in re-exports of precious metals and stones, Armenia's external trade continued to normalise, with goods exports declining by 18.3% y-o-y and imports growing by 2.2% y-o-y in 2Q26. Russia's import restrictions on selected Armenian agricultural products also weighed on June exports. Other external inflows remained resilient, supported by strong growth in non-commercial money transfers (up 19.9% y-o-y) and international tourist arrivals (up 13.1% y-o-y).
Supported by these inflows and prudent macroeconomic policies, the Armenian Dram (AMD) appreciated by 4.0% against the US dollar in the first seven months of 2026. Over the same period, it gained 1.5% against the GEL. The Central Bank of Armenia (CBA) continued its foreign exchange purchases, increasing gross international reserves to a record high of USD 6.2 billion at end-July 2026 (up 52.1% y-o-y).
Elevated inflation and neutral monetary stance
Inflation remained elevated in 2Q26, driven mainly by higher food prices. Headline CPI reached 5.1% y-o-y in June 2026, up from 4.5% in March. Importantly, inflation expectations appear to remain well anchored, as reflected in lower inflation for non-food goods and services. The CBA has kept its policy rate unchanged at 6.5% since the beginning of the year and is expected to maintain this rate through 2026, reflecting a broadly neutral monetary policy stance.
Continued fiscal expansion
Fiscal policy is set to remain growth-supportive in 2026, with the deficit planned to widen to 4.0% of GDP from 3.7% in 2025. Despite higher public spending, strong tax revenue growth is expected to limit the increase in government debt to 48.7% of GDP by end-2026, up from 47.2% at end-2025. The country's IMF Stand-By Arrangement continues to provide an important anchor for fiscal discipline.
Sound banking sector
The Armenian banking sector remains sound, with strong capital and liquidity buffers. Bank lending grew by an estimated 22.1% y-o-y in 2Q26 on a cc basis, following a 21.1% growth in the previous quarter. Consumer and business lending were the primary drivers of credit expansion. Loan dollarisation in Armenia increased to 36.1% at end-June 2026 from 35.0% the previous quarter, largely driven by legal entity loans. Meanwhile, deposit dollarisation continued to decrease, reaching 42.3%, down 1.1pp q-o-q.
2Q26 and 1H26 unaudited consolidated results*
|
GEL thousands |
1H26 |
1H26 |
1H26 |
1H26 |
|
1H25 |
1H25 |
1H25 |
1H25 |
|
INCOME STATEMENT HIGHLIGHTS |
Group |
GFS |
AFS |
Other |
|
Group |
GFS |
AFS |
Other |
|
Interest income |
3,026,585 |
2,136,031 |
816,131 |
74,423 |
|
2,536,548 |
1,859,625 |
624,307 |
52,616 |
|
Interest expense |
(1,317,768) |
(940,471) |
(336,417) |
(40,880) |
|
(1,114,707) |
(847,328) |
(236,486) |
(30,893) |
|
Net interest income |
1,708,817 |
1,195,560 |
479,714 |
33,543 |
|
1,421,841 |
1,012,297 |
387,821 |
21,723 |
|
Net fee and commission income |
382,513 |
312,839 |
63,065 |
6,609 |
|
302,133 |
250,466 |
44,392 |
7,275 |
|
Net foreign currency gain |
296,377 |
163,379 |
78,593 |
54,405 |
|
298,191 |
174,051 |
71,870 |
52,270 |
|
Regulatory-related expenses |
(37,590) |
(26,906) |
(7,181) |
(3,503) |
|
(31,600) |
(24,835) |
(5,400) |
(1,365) |
|
Other expenses |
(4,408) |
- |
(4,408) |
- |
|
(3,144) |
- |
(3,144) |
- |
|
Net other income |
20,772 |
6,583 |
6,205 |
7,984 |
|
29,362 |
21,965 |
3,530 |
3,867 |
|
Net operating income |
2,366,481 |
1,651,455 |
615,988 |
99,038 |
|
2,016,783 |
1,433,944 |
499,069 |
83,770 |
|
Salaries and other employee benefits |
(513,687) |
(290,077) |
(187,852) |
(35,758) |
|
(453,104) |
(245,938) |
(177,372) |
(29,794) |
|
Administrative expenses |
(172,765) |
(118,217) |
(31,048) |
(23,500) |
|
(155,328) |
(104,197) |
(34,086) |
(17,045) |
|
Depreciation, amortisation and impairment |
(123,884) |
(76,359) |
(32,804) |
(14,721) |
|
(105,260) |
(69,398) |
(29,958) |
(5,904) |
|
Other operating expenses |
(5,754) |
(2,899) |
(2,146) |
(709) |
|
(6,994) |
(3,707) |
(2,612) |
(675) |
|
Operating expenses |
(816,090) |
(487,552) |
(253,850) |
(74,688) |
|
(720,686) |
(423,240) |
(244,028) |
(53,418) |
|
Profit from associates |
990 |
990 |
- |
- |
|
736 |
736 |
- |
- |
|
Operating income before cost of risk |
1,551,381 |
1,164,893 |
362,138 |
24,350 |
|
1,296,833 |
1,011,440 |
255,041 |
30,352 |
|
Cost of risk |
(103,300) |
(74,067) |
(26,639) |
(2,594) |
|
(77,709) |
(63,838) |
(13,940) |
69 |
|
Profit before income tax expense |
1,448,081 |
1,090,826 |
335,499 |
21,756 |
|
1,219,124 |
947,602 |
241,101 |
30,421 |
|
Income tax expense |
(244,288) |
(165,755) |
(63,026) |
(15,507) |
|
(192,813) |
(132,683) |
(49,796) |
(10,334) |
|
Profit |
1,203,793 |
925,071 |
272,473 |
6,249 |
|
1,026,311 |
814,919 |
191,305 |
20,087 |
|
GEL thousands |
2Q26 |
2Q25 |
Change y-o-y |
1Q26 |
Change q-o-q |
|
1H26 |
1H25 |
Change y-o-y |
|||
|
INCOME STATEMENT HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|||
|
Net interest income |
886,203 |
727,480 |
21.8% |
822,614 |
7.7% |
|
1,708,817 |
1,421,841 |
20.2% |
|||
|
Net fee and commission income |
199,871 |
158,305 |
26.3% |
182,642 |
9.4% |
|
382,513 |
302,133 |
26.6% |
|||
|
Net foreign currency gain |
166,253 |
152,597 |
8.9% |
130,124 |
27.8% |
|
296,377 |
298,191 |
-0.6% |
|||
|
Net other income |
(19,219) |
(16,172) |
18.8% |
(18,371) |
4.6% |
|
(37,590) |
(31,600) |
19.0% |
|||
|
Regulatory-related expenses |
(2,334) |
(1,722) |
35.5% |
(2,074) |
12.5% |
|
(4,408) |
(3,144) |
40.2% |
|||
|
Other expenses |
10,794 |
18,077 |
-40.3% |
9,978 |
8.2% |
|
20,772 |
29,362 |
-29.3% |
|||
|
Net operating income |
1,241,568 |
1,038,565 |
19.5% |
1,124,913 |
10.4% |
|
2,366,481 |
2,016,783 |
17.3% |
|||
|
Operating expenses |
(426,654) |
(378,227) |
12.8% |
(389,436) |
9.6% |
|
(816,090) |
(720,686) |
13.2% |
|||
|
Profit from associates |
604 |
465 |
29.9% |
386 |
56.5% |
|
990 |
736 |
34.5% |
|||
|
Operating income before cost of risk |
815,518 |
660,803 |
23.4% |
735,863 |
10.8% |
|
1,551,381 |
1,296,833 |
19.6% |
|||
|
Cost of risk |
(64,460) |
(50,796) |
26.9% |
(38,840) |
66.0% |
|
(103,300) |
(77,709) |
32.9% |
|||
|
Profit before income tax expense and one-off items |
751,058 |
610,007 |
23.1% |
697,023 |
7.8% |
|
1,448,081 |
1,219,124 |
18.8% |
|||
|
Income tax expense |
(132,253) |
(96,760) |
36.7% |
(112,035) |
18.0% |
|
(244,288) |
(192,813) |
26.7% |
|||
|
Profit |
618,805 |
513,247 |
20.6% |
584,988 |
5.8% |
|
1,203,793 |
1,026,311 |
17.3% |
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Basic earnings per share |
14.52 |
11.89 |
22.1% |
13.72 |
5.8% |
|
28.24 |
23.70 |
19.2% |
|||
|
Diluted earnings per share |
14.39 |
11.75 |
22.5% |
13.61 |
5.7% |
|
27.98 |
23.44 |
19.4% |
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
BALANCE SHEET HIGHLIGHTS |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
|
|
|
|
|
|
|
Liquid assets |
18,881,978 |
16,333,288 |
15.6% |
16,530,688 |
14.2% |
|
Cash and cash equivalents |
5,046,754 |
4,022,221 |
25.5% |
3,440,364 |
46.7% |
|
Amounts due from credit institutions |
3,777,016 |
3,194,606 |
18.2% |
3,764,046 |
0.3% |
|
Investment securities |
10,058,208 |
9,116,461 |
10.3% |
9,326,278 |
7.8% |
|
Loans to customers, finance lease and factoring receivables |
44,429,043 |
36,530,447 |
21.6% |
41,881,946 |
6.1% |
|
Property and equipment |
622,402 |
578,502 |
7.6% |
616,135 |
1.0% |
|
All remaining assets |
1,887,116 |
1,649,833 |
14.4% |
1,953,033 |
-3.4% |
|
Total assets |
65,820,539 |
55,092,070 |
19.5% |
60,981,802 |
7.9% |
|
Client deposits and notes |
43,664,753 |
34,789,736 |
25.5% |
39,699,016 |
10.0% |
|
Amounts owed to credit institutions |
7,372,045 |
8,927,118 |
-17.4% |
7,722,100 |
-4.5% |
|
Borrowings from DFIs |
3,806,066 |
2,918,362 |
30.4% |
3,545,490 |
7.3% |
|
Short-term loans from the National Bank of Georgia |
51,302 |
2,552,236 |
-98.0% |
1,130,502 |
-95.5% |
|
Short-term loans from the Central Bank of Armenia |
117,552 |
142,743 |
-17.6% |
135,054 |
-13.0% |
|
Loans and deposits from commercial banks |
3,397,125 |
3,313,777 |
2.5% |
2,911,054 |
16.7% |
|
Debt securities issued |
4,176,271 |
2,445,652 |
70.8% |
3,298,758 |
26.6% |
|
All remaining liabilities |
1,215,542 |
1,310,432 |
-7.2% |
1,392,258 |
-12.7% |
|
Total liabilities |
56,428,611 |
47,472,938 |
18.9% |
52,112,132 |
8.3% |
|
Total equity |
9,391,928 |
7,619,132 |
23.3% |
8,869,670 |
5.9% |
|
Book value per share |
220.69 |
176.81 |
24.8% |
207.82 |
6.2% |
|
KEY RATIOS |
2Q26 |
2Q25 |
|
1Q26 |
|
1H26 |
1H25 |
|
|
|
|
|
|
|
|
|
|
ROAA |
3.9% |
3.8% |
|
3.9% |
|
3.9% |
3.9% |
|
ROAE |
27.1% |
27.2% |
|
27.4% |
|
27.2% |
27.9% |
|
Net interest margin |
6.3% |
6.1% |
|
6.2% |
|
6.3% |
6.0% |
|
Loan yield[1] |
12.3% |
12.3% |
|
12.3% |
|
12.3% |
12.3% |
|
Liquid assets yield |
5.1% |
5.0% |
|
5.2% |
|
5.2% |
5.0% |
|
Cost of funds |
5.1% |
5.0% |
|
5.1% |
|
5.1% |
5.0% |
|
Cost of client deposits and notes |
4.4% |
4.2% |
|
4.5% |
|
4.5% |
4.1% |
|
Cost of amounts owed to credit institutions |
6.9% |
7.4% |
|
6.7% |
|
6.7% |
7.6% |
|
Cost of debt securities issued |
8.2% |
7.4% |
|
8.2% |
|
8.2% |
7.5% |
|
Cost:income ratio |
34.4% |
36.4% |
|
34.6% |
|
34.5% |
35.7% |
|
NPLs to gross loans |
2.1% |
1.9% |
|
2.1% |
|
2.1% |
1.9% |
|
NPL coverage ratio |
58.4% |
63.5% |
|
58.9% |
|
58.4% |
63.5% |
|
NPL coverage ratio adjusted for the discounted value of collateral |
119.2% |
119.2% |
|
117.2% |
|
119.2% |
119.2% |
|
Cost of credit risk ratio |
0.6% |
0.5% |
|
0.3% |
|
0.5% |
0.4% |
|
GEL thousands NON-PERFORMING LOANS |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
Group (consolidated) |
|
|
|
|
|
|
NPLs to gross loans |
2.1% |
1.9% |
|
2.1% |
|
|
NPL coverage ratio |
58.4% |
63.5% |
|
58.9% |
|
|
NPL coverage ratio adjusted for the discounted value of collateral |
119.2% |
119.2% |
|
117.2% |
|
|
Georgian Financial Services (GFS) |
|
|
|
|
|
|
NPLs to gross loans |
2.1% |
2.2% |
|
2.0% |
|
|
NPL coverage ratio |
53.9% |
61.7% |
|
56.1% |
|
|
NPL coverage ratio adjusted for the discounted value of collateral |
117.2% |
113.6% |
|
116.0% |
|
|
Armenian Financial Services (AFS) |
|
|
|
|
|
|
NPLs to gross loans |
2.0% |
1.2% |
|
2.0% |
|
|
NPL coverage ratio |
64.7% |
69.6% |
|
62.7% |
|
|
NPL coverage ratio adjusted for the discounted value of collateral |
123.9% |
147.0% |
|
120.8% |
|
* To improve the quality and understandability of its interim condensed consolidated financial statements, the Group has reviewed and revised the presentation of certain line items in its condensed consolidated interim financial statements. Changes to the Consolidated Income Statement have been made to better present the nature of certain charges and align more with the industry practice. The changes related to presentation of deposit insurance fee (from previously presented within net interest income to currently presented within regulatory-related expenses), certain repair and maintenance costs (from previously presented within net fee and commission income to currently presented within administrative expenses), resolution fund contributions (from previously presented within other operating expenses to currently presented within regulatory-related expenses), and core banking expenses (from previously presented within other administrative expenses to currently presented within other expenses). Comparative amounts have been reclassified in line with the revised presentation. Management believes that these reclassifications provide more reliable and relevant information. For the full details of all reclassifications, including changes to the Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows, see Note 3 in the interim condensed consolidated financial statements.
Returns to shareholders (dividends and share buyback and cancellation programme)
|
• |
In August 2025, the Board took the decision to move to a quarterly distribution schedule, with the Group's total capital repatriation policy unchanged at a target payout range of 30-50% of annual Group profits. Considering the strong performance of the Group during the second quarter of 2026 and solid capital levels, today the Board declared an interim dividend of GEL 3.05 per ordinary share in respect of the second quarter of 2026, payable according to the following timetable: |
|
|
|
• |
Ex-Dividend Date: 10 September 2026 |
|
|
• |
Record Date: 11 September 2026 |
|
|
• |
Currency Conversion Date: 11 September 2026 |
|
|
• |
Payment Date: 25 September 2026 |
|
• |
The NBG's Lari/Pound Sterling average exchange rate for the period of 7 September to 11 September 2026 will be used as the exchange rate on the Currency Conversion Date and will be announced in due course. |
|
|
• |
In addition, today the Board has approved an extension to the share buyback and cancellation programme of GEL 59.0 million. |
|
|
• |
The previous GEL 55.0 million share buyback and cancellation programme, announced on 7 May 2026, has been completed. As a result, the total number of voting rights in issue following the cancellation of shares was 43,086,035 as at 23 July 2026. |
|
Business Division results
The Group results are presented by the following Business Divisions: 1) Georgian Financial Services (GFS), 2) Armenian Financial Services (AFS), and 3) Other Businesses.
Georgian Financial Services (GFS)
Georgian Financial Services (GFS) mainly comprises JSC Bank of Georgia and the investment bank JSC Galt and Taggart. GFS is organised across the following business segments: Retail Banking (RB), Small and Medium Enterprise (SME) Banking, Corporate and Investment Banking (CIB), and Corporate Center (CC).
|
GEL thousands |
2Q26 |
2Q25 |
Changey-o-y |
1Q26 |
Change q-o-q |
|
1H26 |
1H25 |
Change y-o-y |
|
INCOME STATEMENT HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
Interest income |
1,093,652 |
952,366 |
14.8% |
1,042,379 |
4.9% |
|
2,136,031 |
1,859,625 |
14.9% |
|
Interest expense |
(477,001) |
(429,873) |
11.0% |
(463,470) |
2.9% |
|
(940,471) |
(847,328) |
11.0% |
|
Net interest income |
616,651 |
522,493 |
18.0% |
578,909 |
6.5% |
|
1,195,560 |
1,012,297 |
18.1% |
|
Net fee and commission income |
163,387 |
130,755 |
25.0% |
149,452 |
9.3% |
|
312,839 |
250,466 |
24.9% |
|
Net foreign currency gain |
87,425 |
91,321 |
-4.3% |
75,954 |
15.1% |
|
163,379 |
174,051 |
-6.1% |
|
Regulatory-related expenses |
(13,931) |
(12,403) |
12.3% |
(12,975) |
7.4% |
|
(26,906) |
(24,835) |
8.3% |
|
Net other income |
3,805 |
14,990 |
-74.6% |
2,778 |
37.0% |
|
6,583 |
21,965 |
-70.0% |
|
Net operating income |
857,337 |
747,156 |
14.7% |
794,118 |
8.0% |
|
1,651,455 |
1,433,944 |
15.2% |
|
Salaries and other employee benefits |
(149,185) |
(132,342) |
12.7% |
(140,892) |
5.9% |
|
(290,077) |
(245,938) |
17.9% |
|
Administrative expenses |
(66,121) |
(55,194) |
19.8% |
(52,096) |
26.9% |
|
(118,217) |
(104,197) |
13.5% |
|
Depreciation, amortisation and impairment |
(39,411) |
(35,610) |
10.7% |
(36,948) |
6.7% |
|
(76,359) |
(69,398) |
10.0% |
|
Other operating expenses |
(1,726) |
(1,950) |
-11.5% |
(1,173) |
47.1% |
|
(2,899) |
(3,707) |
-21.8% |
|
Operating expenses |
(256,443) |
(225,096) |
13.9% |
(231,109) |
11.0% |
|
(487,552) |
(423,240) |
15.2% |
|
Profit from associates |
604 |
465 |
29.9% |
386 |
56.5% |
|
990 |
736 |
34.5% |
|
Operating income before cost of risk |
601,498 |
522,525 |
15.1% |
563,395 |
6.8% |
|
1,164,893 |
1,011,440 |
15.2% |
|
Cost of risk |
(41,801) |
(45,848) |
-8.8% |
(32,266) |
29.6% |
|
(74,067) |
(63,838) |
16.0% |
|
Profit before income tax expense |
559,697 |
476,677 |
17.4% |
531,129 |
5.4% |
|
1,090,826 |
947,602 |
15.1% |
|
Income tax expense |
(86,677) |
(66,827) |
29.7% |
(79,078) |
9.6% |
|
(165,755) |
(132,683) |
24.9% |
|
Profit |
473,020 |
409,850 |
15.4% |
452,051 |
4.6% |
|
925,071 |
814,919 |
13.5% |
|
BALANCE SHEET HIGHLIGHTS |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
3,324,782 |
2,108,736 |
57.7% |
2,065,638 |
61.0% |
|
|
Amounts due from credit institutions |
1,767,646 |
2,339,536 |
-24.4% |
1,881,992 |
-6.1% |
|
|
Investment securities |
8,454,030 |
7,527,941 |
12.3% |
7,674,184 |
10.2% |
|
|
Loans to customers, finance lease and factoring receivables |
29,164,019 |
25,306,909 |
15.2% |
28,261,957 |
3.2% |
|
|
Loans to customers, finance lease and factoring receivables, LC |
16,858,351 |
14,594,431 |
15.5% |
16,276,415 |
3.6% |
|
|
Loans to customers, finance lease and factoring receivables, FC |
12,305,668 |
10,712,478 |
14.9% |
11,985,542 |
2.7% |
|
|
Property and equipment |
522,079 |
482,933 |
8.1% |
519,438 |
0.5% |
|
|
All remaining assets |
1,266,464 |
1,185,218 |
6.9% |
1,257,904 |
0.7% |
|
|
Total assets |
44,499,020 |
38,951,273 |
14.2% |
41,661,113 |
6.8% |
|
|
Client deposits and notes |
30,553,106 |
24,979,831 |
22.3% |
27,942,563 |
9.3% |
|
|
Client deposits and notes, LC |
17,739,423 |
12,650,370 |
40.2% |
15,178,604 |
16.9% |
|
|
Client deposits and notes, FC |
12,813,683 |
12,329,461 |
3.9% |
12,763,959 |
0.4% |
|
|
Amounts owed to credit institutions |
4,157,132 |
6,512,756 |
-36.2% |
5,025,118 |
-17.3% |
|
|
Debt securities issued |
2,687,773 |
1,261,544 |
113.1% |
1,915,124 |
40.3% |
|
|
All remaining liabilities |
647,503 |
898,001 |
-27.9% |
791,016 |
-18.1% |
|
|
Total liabilities |
38,045,514 |
33,652,132 |
13.1% |
35,673,821 |
6.6% |
|
|
Total equity |
6,453,506 |
5,299,141 |
21.8% |
5,987,292 |
7.8% |
|
|
Risk-weighted assets (JSC Bank of Georgia standalone) |
33,545,361 |
30,619,266 |
9.6% |
32,923,955 |
1.9% |
|
|
KEY RATIOS |
2Q26 |
2Q25 |
|
1Q26 |
|
1H26 |
1H25 |
|
|
|
|
|
|
|
|
|
|
ROAA |
4.4% |
4.2% |
|
4.4% |
|
4.4% |
4.3% |
|
ROAE |
30.4% |
31.1% |
|
31.5% |
|
30.9% |
31.6% |
|
Net interest margin |
6.4% |
6.0% |
|
6.3% |
|
6.3% |
5.9% |
|
Loan yield |
12.8% |
12.7% |
|
12.7% |
|
12.8% |
12.6% |
|
Loan yield, GEL |
15.5% |
15.2% |
|
15.5% |
|
15.5% |
15.1% |
|
Loan yield, FC |
9.1% |
9.2% |
|
8.9% |
|
9.0% |
9.2% |
|
Cost of funds |
5.3% |
5.2% |
|
5.3% |
|
5.3% |
5.2% |
|
Cost of client deposits and notes |
4.7% |
4.4% |
|
4.7% |
|
4.7% |
4.3% |
|
Cost of client deposits and notes, GEL |
7.5% |
7.8% |
|
7.6% |
|
7.5% |
7.7% |
|
Cost of client deposits and notes, FC |
1.1% |
1.3% |
|
1.2% |
|
1.2% |
1.3% |
|
Cost of time deposits |
7.2% |
6.7% |
|
6.9% |
|
7.0% |
6.6% |
|
Cost of time deposits, GEL |
9.7% |
10.0% |
|
9.8% |
|
9.7% |
10.1% |
|
Cost of time deposits, FC |
2.3% |
2.5% |
|
2.3% |
|
2.3% |
2.5% |
|
Cost of current accounts and demand deposits |
2.4% |
2.3% |
|
2.9% |
|
2.6% |
2.3% |
|
Cost of current accounts and demand deposits, GEL |
4.6% |
5.0% |
|
5.3% |
|
5.0% |
4.9% |
|
Cost of current accounts and demand deposits, FC |
0.5% |
0.4% |
|
0.5% |
|
0.5% |
0.5% |
|
Cost:income ratio |
29.9% |
30.1% |
|
29.1% |
|
29.5% |
29.5% |
|
Cost of credit risk ratio |
0.5% |
0.7% |
|
0.4% |
|
0.5% |
0.4% |
Performance highlights
|
• |
GFS net operating income grew by 14.7% y-o-y in 2Q26 and 15.2% y-o-y in 1H26, driven in both periods by strong net interest income generation complemented by net fee and commission income. Q-o-q, net operating income was up 8.0%, with net interest income as the primary driver, supported by solid contributions from net fee and commission income and net foreign currency gains. |
|
• |
Net interest income grew by 18.0% y-o-y in 2Q26, with NIM expanding by 40 bps y-o-y to 6.4%, driven by a higher loan yield and increased share of loans in interest-earning assets mix. On a half-year basis, net interest income was up 18.1% y-o-y, with NIM reaching 6.3%, reflecting a 40-bps y-o-y expansion on the same drivers. |
|
• |
Net fee and commission income grew by 25.0% y-o-y in 2Q26 and 24.9% y-o-y in 1H26, partly reflecting a lower comparative base prior to the renegotiation of terms with international payment systems; normalised net fee and commission income was up 22.3% y-o-y in 2Q26, mainly driven by settlement operations. |
|
• |
Net foreign currency gains declined by 4.3% y-o-y in 2Q26 and 6.1% y-o-y in 1H26, reflecting a more stable currency rate as well as increased market competition. |
|
• |
Operating expenses increased by 13.9% y-o-y in 2Q26 and 15.2% y-o-y in 1H26, driven in both periods by higher staff costs, mainly reflecting increased salary rates, as well as higher administrative expenses. On a q-o-q basis, operating expenses grew by 11.0%, mainly driven by higher administrative expenses on the back of elevated marketing and Investor Relations activities in the quarter. |
|
• |
Portfolio quality remained healthy. The cost of credit risk ratio stood at 0.5% in both 2Q26 and 1H26, compared with 0.7% and 0.4% in 2Q25 and 1H25, respectively, and 0.4% in 1Q26. Segmental cost of risk was affected by methodological changes, reflecting continued enhancements to our risk modelling. Excluding this effect, the increase in Retail cost of risk was in line with normalisation trends, supported by a growing share of unsecured consumer loans within the portfolio, with underlying default trends remaining stable. Overall risk parameters remained robust, with cost of risk still below the normalised range. The NPL ratio remained broadly stable and stood at 2.1% as at 30 June 2026. |
Portfolio highlights
|
|
Portfolio highlights: loans to customers, finance lease and factoring receivables
|
|
|
|||||||||||||||
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Change y-o-y (constant currency) |
Mar-26 |
Change q-o-q |
Change q-o-q (constant currency) |
|
||||||||||
|
Total GFS |
29,164,019 |
25,306,909 |
15.2% |
17.1% |
28,261,957 |
3.2% |
4.2% |
|
||||||||||
|
Retail |
13,241,289 |
11,028,623 |
20.1% |
20.8% |
12,678,797 |
4.4% |
4.8% |
|
||||||||||
|
Mortgages |
5,486,515 |
4,754,810 |
15.4% |
16.6% |
5,288,406 |
3.7% |
4.4% |
|
||||||||||
|
Consumer loans |
6,772,241 |
5,517,428 |
22.7% |
23.0% |
6,472,542 |
4.6% |
4.8% |
|
||||||||||
|
Other loans |
982,533 |
756,385 |
29.9% |
30.5% |
917,849 |
7.0% |
7.0% |
|
||||||||||
|
SME |
5,661,126 |
5,227,172 |
8.3% |
10.1% |
5,511,393 |
2.7% |
3.7% |
|
||||||||||
|
CIB |
10,261,604 |
9,051,114 |
13.4% |
16.5% |
10,071,767 |
1.9% |
3.7% |
|
||||||||||
|
|
Portfolio highlights: customer deposits and notes
|
|
|
|||||||||||||||
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Change y-o-y (constant currency) |
Mar-26 |
Change q-o-q |
Change q-o-q (constant currency) |
|
||||||||||
|
Total GFS |
30,553,106 |
24,979,831 |
22.3% |
24.2% |
27,942,563 |
9.3% |
10.5% |
|
||||||||||
|
Retail |
17,225,211 |
15,169,685 |
13.6% |
15.9% |
16,543,701 |
4.1% |
5.5% |
|
||||||||||
|
SME |
2,530,747 |
2,231,309 |
13.4% |
14.8% |
2,402,216 |
5.4% |
6.1% |
|
||||||||||
|
CIB |
7,809,469 |
6,278,743 |
24.4% |
25.7% |
7,963,850 |
-1.9% |
-1.4% |
|
||||||||||
|
Corporate Center |
3,082,547 |
1,374,967 |
124.2% |
|
1,118,524 |
175.6% |
|
|
||||||||||
|
Eliminations |
(94,868) |
(74,873) |
26.7% |
|
(85,728) |
10.7% |
|
|
||||||||||
|
|
Loan portfolio quality: cost of credit risk ratio
|
|
|
|||||||||||||||
|
|
2Q26 |
2Q25 |
|
1Q26 |
|
1H26 |
1H25 |
|
||||||||||
|
Total GFS |
0.5% |
0.7% |
|
0.4% |
|
0.5% |
0.4% |
|
||||||||||
|
Retail |
1.3% |
0.8% |
|
0.8% |
|
1.0% |
0.5% |
|
||||||||||
|
SME |
0.1% |
1.1% |
|
0.6% |
|
0.4% |
0.7% |
|
||||||||||
|
CIB |
-0.2% |
0.6% |
|
-0.3% |
|
-0.2% |
0.4% |
|
||||||||||
|
|
Loan portfolio quality: NPL ratio
|
|
|
|||||||||||||||
|
|
Jun-26 |
Jun-25 |
|
Mar-26 |
|
|
|
|
||||||||||
|
Total GFS |
2.1% |
2.2% |
|
2.0% |
|
|
|
|
||||||||||
|
Retail |
1.3% |
1.5% |
|
1.3% |
|
|
|
|
||||||||||
|
SME |
4.2% |
3.6% |
|
4.2% |
|
|
|
|
||||||||||
|
CIB |
2.0% |
2.1% |
|
1.7% |
|
|
|
|
||||||||||
|
• |
Customer lending growth remained strong, driven primarily by Retail Banking and Corporate and Investment Banking, with Small and Medium Enterprise also contributing. |
|||||||||||||||||
|
|
• |
Within the Retail Banking segment, consumer lending showed strong growth, rising by 23.0% y-o-y and 4.8% q-o-q in cc. Mortgage lending grew by 16.6% y-o-y and 4.4% q-o-q in cc, now accounting for 41.4% of the retail loan book - below the share of consumer loans at 51.1%. Robust lending expansion has been underpinned by increasing active customer base, as well as strong household disposable income growth, which has averaged 11% over the past two years. |
||||||||||||||||
|
• |
Client deposits and notes grew strongly across all segments. The y-o-y growth was also elevated by a significant increase in the Ministry of Finance deposits within the Corporate Center; excluding the Ministry of Finance deposits, client deposits grew by 18.4% y-o-y and 3.5% q-o-q in cc. As at 30 June 2026, current & demand deposits accounted for 50.5%, and time deposits accounted for 49.5% of the total deposit portfolio, respectively. Notably, the share of GEL deposits in total deposits increased significantly y-o-y from 50.6% to 58.1% (54.3% as at 31 March 2026). |
|||||||||||||||||
Liquidity
|
|
Jun-26 |
Jun-25 |
Mar-26 |
|
IFRS-based NBG Liquidity Coverage Ratio (Bank of Georgia) |
152.0% |
125.9% |
140.0% |
|
IFRS-based NBG Net Stable Funding Ratio (Bank of Georgia) |
132.9% |
127.4% |
130.3% |
Both Bank of Georgia's Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) were well above the regulatory minimum requirements of 100%.
Capital position
Bank of Georgia maintains solid levels of capital, with all ratios comfortably above the minimum regulatory requirements. The movement in capital adequacy ratios in 2Q26 and the potential impact of a 10% devaluation of GEL are as follows:
|
|
31 Mar 2026 |
2Q26 profit |
Business growth |
Currency impact |
Dividend payment |
Tier 1- Tier 2 |
30 Jun 2026 |
|
|
|
Min requirement |
Buffer above min requirement |
Potential impact of a 10% GEL devaluation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CET 1 capital adequacy |
17.9% |
1.6% |
-0.6% |
0.2% |
-0.9% |
0.0% |
18.2% |
|
|
|
15.5% |
2.7% |
-0.7% |
|
|
Tier 1 capital adequacy |
20.8% |
1.6% |
-0.6% |
0.1% |
-0.9% |
0.0% |
21.0% |
|
|
|
17.6% |
3.4% |
-0.6% |
|
|
Total capital adequacy |
22.2% |
1.6% |
-0.6% |
0.1% |
-0.9% |
0.3% |
22.7% |
|
|
|
20.5% |
2.2% |
-0.5% |
|
Armenian Financial Services (AFS)
|
GEL thousands |
2Q26 |
2Q25 |
Change y-o-y |
1Q26 |
Change q-o-q |
|
1H26 |
1H25 |
Change y-o-y |
|
INCOME STATEMENT HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
Interest income |
427,449 |
318,383 |
34.3% |
388,682 |
10.0% |
|
816,131 |
624,307 |
30.7% |
|
Interest expense |
(176,800) |
(123,510) |
43.1% |
(159,617) |
10.8% |
|
(336,417) |
(236,486) |
42.3% |
|
Net interest income |
250,649 |
194,873 |
28.6% |
229,065 |
9.4% |
|
479,714 |
387,821 |
23.7% |
|
Net fee and commission income |
33,070 |
23,901 |
38.4% |
29,995 |
10.3% |
|
63,065 |
44,392 |
42.1% |
|
Net foreign currency gain |
45,158 |
37,852 |
19.3% |
33,435 |
35.1% |
|
78,593 |
71,870 |
9.4% |
|
Regulatory-related expenses |
(3,501) |
(2,633) |
33.0% |
(3,680) |
-4.9% |
|
(7,181) |
(5,400) |
33.0% |
|
Other expenses |
(2,334) |
(1,722) |
35.5% |
(2,074) |
12.5% |
|
(4,408) |
(3,144) |
40.2% |
|
Net other income |
2,635 |
380 |
NMF |
3,570 |
-26.2% |
|
6,205 |
3,530 |
75.8% |
|
Net operating income |
325,677 |
252,651 |
28.9% |
290,311 |
12.2% |
|
615,988 |
499,069 |
23.4% |
|
Salaries and other employee benefits |
(94,457) |
(91,576) |
3.1% |
(93,395) |
1.1% |
|
(187,852) |
(177,372) |
5.9% |
|
Administrative expenses |
(15,720) |
(17,372) |
-9.5% |
(15,328) |
2.6% |
|
(31,048) |
(34,086) |
-8.9% |
|
Depreciation, amortisation and impairment |
(16,921) |
(15,404) |
9.8% |
(15,883) |
6.5% |
|
(32,804) |
(29,958) |
9.5% |
|
Other operating expenses |
(1,477) |
(938) |
57.5% |
(669) |
120.8% |
|
(2,146) |
(2,612) |
-17.8% |
|
Operating expenses |
(128,575) |
(125,290) |
2.6% |
(125,275) |
2.6% |
|
(253,850) |
(244,028) |
4.0% |
|
Operating income before cost of risk |
197,102 |
127,361 |
54.8% |
165,036 |
19.4% |
|
362,138 |
255,041 |
42.0% |
|
Cost of risk |
(20,835) |
(5,767) |
NMF |
(5,804) |
NMF |
|
(26,639) |
(13,940) |
91.1% |
|
Profit before income tax expense |
176,267 |
121,594 |
45.0% |
159,232 |
10.7% |
|
335,499 |
241,101 |
39.2% |
|
Income tax expense |
(33,222) |
(25,803) |
28.8% |
(29,804) |
11.5% |
|
(63,026) |
(49,796) |
26.6% |
|
Profit |
143,045 |
95,791 |
49.3% |
129,428 |
10.5% |
|
272,473 |
191,305 |
42.4% |
|
BALANCE SHEET HIGHLIGHTS |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
Cash and cash equivalents |
917,342 |
1,271,871 |
-27.9% |
694,989 |
32.0% |
|
Amounts due from credit institutions |
1,985,807 |
831,897 |
138.7% |
1,851,418 |
7.3% |
|
Investment securities |
1,509,156 |
1,463,753 |
3.1% |
1,509,123 |
0.0% |
|
Loans to customers, finance lease and factoring receivables |
14,041,531 |
10,341,990 |
35.8% |
12,551,342 |
11.9% |
|
Loans to customers, finance lease and factoring receivables, LC |
7,727,439 |
5,999,058 |
28.8% |
7,026,474 |
10.0% |
|
Loans to customers, finance lease and factoring receivables, FC |
6,314,092 |
4,342,932 |
45.4% |
5,524,868 |
14.3% |
|
Property and equipment |
81,805 |
79,912 |
2.4% |
78,479 |
4.2% |
|
All remaining assets |
487,375 |
365,377 |
33.4% |
567,237 |
-14.1% |
|
Total assets |
19,023,016 |
14,354,800 |
32.5% |
17,252,588 |
10.3% |
|
Client deposits and notes |
11,444,050 |
8,379,668 |
36.6% |
10,188,812 |
12.3% |
|
Client deposits and notes, LC |
6,933,631 |
4,772,660 |
45.3% |
6,190,453 |
12.0% |
|
Client deposits and notes, FC |
4,510,419 |
3,607,008 |
25.0% |
3,998,359 |
12.8% |
|
Amounts owed to credit institutions |
3,204,987 |
2,430,196 |
31.9% |
2,648,168 |
21.0% |
|
Debt securities issued |
1,440,017 |
1,171,408 |
22.9% |
1,370,433 |
5.1% |
|
All remaining liabilities |
403,206 |
403,860 |
-0.2% |
550,056 |
-26.7% |
|
Total liabilities |
16,492,260 |
12,385,132 |
33.2% |
14,757,469 |
11.8% |
|
Total equity |
2,530,756 |
1,969,668 |
28.5% |
2,495,119 |
1.4% |
|
Risk-weighted assets (Ameriabank CJSC standalone) |
16,475,510 |
13,200,273 |
24.8% |
16,818,447 |
-2.0% |
|
KEY RATIOS |
2Q26 |
2Q25 |
|
1Q26 |
|
|
1H26 |
1H25 |
|
|
|
|
|
|
|
|
|
|
|
ROAA |
3.2% |
2.8% |
|
3.1% |
|
|
3.1% |
2.9% |
|
ROAE |
23.1% |
20.1% |
|
21.8% |
|
|
22.5% |
20.6% |
|
Net interest margin |
6.0% |
6.5% |
|
6.0% |
|
|
6.0% |
6.6% |
|
Loan yield |
11.3% |
11.5% |
|
11.3% |
|
|
11.3% |
11.5% |
|
Loan yield, AMD |
13.6% |
13.9% |
|
14.1% |
|
|
13.8% |
13.8% |
|
Loan yield, FC |
8.4% |
8.1% |
|
7.6% |
|
|
8.0% |
8.2% |
|
Cost of funds |
4.6% |
4.4% |
|
4.6% |
|
|
4.6% |
4.3% |
|
Cost of client deposits and notes |
3.9% |
3.5% |
|
3.9% |
|
|
3.9% |
3.3% |
|
Cost of client deposits and notes, AMD |
5.4% |
5.1% |
|
5.4% |
|
|
5.4% |
4.8% |
|
Cost of client deposits and notes, FC |
1.6% |
1.4% |
|
1.6% |
|
|
1.6% |
1.4% |
|
Cost of time deposits |
6.7% |
6.1% |
|
6.7% |
|
|
6.8% |
5.9% |
|
Cost of time deposits, AMD |
9.3% |
9.7% |
|
9.4% |
|
|
9.4% |
9.4% |
|
Cost of time deposits, FC |
2.9% |
2.3% |
|
2.9% |
|
|
2.9% |
2.4% |
|
Cost of current accounts and demand deposits |
1.7% |
1.6% |
|
1.6% |
|
|
1.7% |
1.6% |
|
Cost of current accounts and demand deposits, AMD |
2.5% |
2.3% |
|
2.4% |
|
|
2.4% |
2.2% |
|
Cost of current accounts and demand deposits, FC |
0.5% |
0.6% |
|
0.5% |
|
|
0.5% |
0.6% |
|
Cost:income ratio |
39.5% |
49.6% |
|
43.2% |
|
|
41.2% |
48.9% |
|
Cost of credit risk ratio |
0.6% |
0.3% |
|
0.2% |
|
|
0.4% |
0.2% |
Performance highlights
|
• |
AFS net operating income grew by 28.9% y-o-y in 2Q26, and 23.4% y-o-y in 1H26, driven in both periods by strong net interest income generation complemented by positive contributions from net fee and commission income and net foreign currency gains. |
|
• |
NIM stood at 6.0% in 2Q26, flat q-o-q, on the back of stable loan yield and cost of funds. The y-o-y contraction of 50 bps in 2Q26 reflected higher cost of funds on the back of AT1 issuances and higher cost of deposits, coupled with a modest decline in loan yield amid competitive pressures on LC lending. |
|
• |
Net fee and commission income grew by 38.4% y-o-y in 2Q26 and 42.1% y-o-y in 1H26. 1H26 included advisory fees (GEL 2.3m in 2Q26 and GEL 5.5m in 1Q26) and currency conversion fees which were reclassified from net foreign currency gains to align with Group accounting policies (GEL 2.6m in 2Q26 and GEL 2.0m in 1Q26), neither of which were present in the 2Q25 and 1H25 comparison periods. Excluding these items, net fee and commission income grew by 17.9% y-o-y in 2Q26 and 14.2% y-o-y in 1H26, mainly reflecting income from payments business as well as trade finance operations. |
|
• |
Net foreign currency gains grew by 19.3% y-o-y in 2Q26 and 9.4% y-o-y in 1H26, primarily driven by increased dealing turnover across both corporate and retail transactions. |
|
• |
Operating expenses increased by 2.6% y-o-y in 2Q26 and by 4.0% y-o-y in 1H26; Figures in the prior year included management retention bonus, which elevated expenses in 1Q25 and 2Q25. Adjusting for this effect, operating expenses were up 13.5% and 15.5% y-o-y in 2Q26 and 1H26, respectively, reflecting continued investments in technology and talent to support business growth. |
|
• |
Excluding the above-mentioned effect on prior year's operating expenses, profit growth would have been 32.7% and 26.4% y-o-y in 2Q26 and 1H26, respectively. |
|
• |
Overall portfolio quality remained healthy, with some normalisation of cost of risk observed in retail. |
Portfolio highlights[2]
|
|
Portfolio highlights: loans to customers, finance lease and factoring receivables
|
|
|
|||||||||||
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Change y-o-y (constant currency) |
Mar-26 |
Change q-o-q |
Change q-o-q (constant currency) |
|||||||
|
Total AFS |
14,041,531 |
10,341,990 |
35.8% |
36.8% |
12,551,342 |
11.9% |
12.3% |
|||||||
|
Retail |
5,950,290 |
4,647,775 |
28.0% |
26.8% |
5,489,135 |
8.4% |
7.9% |
|||||||
|
Mortgages |
3,119,359 |
2,541,329 |
22.7% |
21.4% |
2,821,132 |
10.6% |
9.9% |
|||||||
|
Consumer loans |
2,139,962 |
1,523,828 |
40.4% |
39.0% |
2,002,157 |
6.9% |
6.3% |
|||||||
|
Retail SME |
690,969 |
582,618 |
18.6% |
18.7% |
665,846 |
3.8% |
4.0% |
|||||||
|
Corporate |
8,091,241 |
5,694,215 |
42.1% |
44.9% |
7,062,207 |
14.6% |
15.7% |
|||||||
|
|
Portfolio highlights: customer deposits and notes
|
|
|
|||||||||||
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Change y-o-y (constant currency) |
Mar-26 |
Change q-o-q |
Change q-o-q (constant currency) |
|
||||||
|
Total AFS |
11,444,050 |
8,379,668 |
36.6% |
37.1% |
10,188,812 |
12.3% |
12.5% |
|
||||||
|
Retail |
6,242,532 |
4,561,788 |
36.8% |
38.0% |
5,531,736 |
12.8% |
13.3% |
|
||||||
|
Corporate |
5,201,518 |
3,817,880 |
36.2% |
36.0% |
4,657,076 |
11.7% |
11.5% |
|
||||||
|
|
Loan portfolio quality: cost of credit risk ratio
|
|
|
|||||||||||
|
|
2Q26 |
2Q25 |
|
1Q26 |
|
1H26 |
1H25 |
|
||||||
|
Total AFS |
0.6% |
0.3% |
|
0.2% |
|
0.4% |
0.2% |
|
||||||
|
Retail |
1.0% |
0.8% |
|
0.6% |
|
1.1% |
0.4% |
|
||||||
|
Corporate |
0.3% |
-0.2% |
|
-0.1% |
|
0.1% |
0.1% |
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Loan portfolio quality: NPL ratio
|
|
||||||||||||
|
|
Jun-26 |
Jun-25 |
|
Mar-26 |
|
|
|
|
||||||
|
Total AFS |
2.0% |
1.2% |
|
2.0% |
|
|
|
|
||||||
|
Retail |
3.9% |
1.1% |
|
3.6% |
|
|
|
|
||||||
|
Corporate |
0.6% |
1.3% |
|
0.7% |
|
|
|
|
||||||
|
• |
Customer loans grew strongly by 36.8% y-o-y and 12.3% q-o-q in cc, with broad-based growth across both Corporate and Retail segments. Corporate loans grew 44.9% y-o-y and 15.7% q-o-q in cc, supported in part by strong demand associated with large-scale investment and infrastructure activity in Armenia. Within the Retail portfolio, consumer loans maintained the strongest growth trajectory, posting 39.0% y-o-y and 6.3% q-o-q growth in cc. Mortgage lending grew by 21.4% y-o-y and 9.9% q-o-q in cc, now representing 52.4% of the total retail loan book. Ameriabank strengthened its market leadership, with its lending share rising to 22.9% as at 30 June 2026 (#1 position), up 1.7pp y-o-y and 0.9pp q-o-q. |
|
• |
Client deposits and notes also grew strongly, rising by 37.1% y-o-y and 12.5% q-o-q in cc. The share of current account and demand deposits remained broadly stable y-o-y at 58.3% of the total deposit base, while increasing on a quarterly basis (58.4% as at 30 June 2025 and 55.1% as at 31 March 2026). The bank's deposit market share (including local bonds) expanded by 1.1pp y-o-y to reach 20.2% as at 30 June 2026 (#2 position) (+0.6pp q-o-q). |
|
• |
AFS maintained a diversified funding structure with customer deposits and local debt securities representing 78.1% of total liabilities, and the ratio of net loans, factoring and finance lease receivables to customer deposits and notes, local debt securities and DFI funding standing at 97.8% as at 30 June 2026. |
|
• |
The y-o-y uptick in the Retail NPL ratio partly reflects a change in write-off policy introduced in 3Q25, whereby write-off timelines were refined by loan type based on actual recovery statistics, rather than a uniform 270-day threshold applied across all loans. |
Liquidity
|
• |
Ameriabank has maintained a strong liquidity position, with CBA LCR at 180.0% and CBA NSFR at 126.0% as at 30 June 2026, well above the minimum regulatory requirements of 100%. |
Capital position
|
• |
As at 30 June 2026, Ameriabank's CET 1, Tier 1, and Total capital ratios stood at 14.0%, 15.6%, and 18.6%, respectively, all above the minimum requirements of 12.0%, 14.1%, and 16.8%, respectively. In February 2026, Ameriabank successfully placed inaugural 8.5% USD 50m Additional Tier 1 capital notes. In May 2026, Ameriabank successfully completed the placement of a second USD 50m tranche of Additional Tier 1 capital notes at an 8.0% coupon. Together, these issuances have enabled Ameriabank to make its first-ever dividend distribution to the Group in the amount of GEL 157m, net of tax. CBA has adopted Basel III treatment for lowering risk weights for SME loans effective 13 April 2026. This change resulted in one-off positive impact on capital ratios from regulatory changes. On 28 July 2026, the Board of the Central Bank of Armenia decided to raise the countercyclical capital buffer from 1.75% to 2.00% of risk-weighted assets, with the new rate effective February 1, 2027. |
|
||||||||||||||
|
|
31 Mar 2026 |
2Q26 profit |
Business growth |
Currency impact |
Dividend payment |
Regulatory changes |
Tier1-Tier2 |
Other
|
30 Jun 2026 |
|
|
Minimum requirement |
Buffer above min requirement |
Potential impact of a 10% AMD devaluation |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
CET 1 capital adequacy |
14.1% |
0.7% |
-1.0% |
0.1% |
-1.1% |
1.2% |
0.0% |
0.0% |
14.0% |
|
|
12.0% |
2.0% |
-0.6% |
||
|
Tier 1 capital adequacy |
14.9% |
0.7% |
-1.2% |
0.2% |
-1.1% |
1.3% |
0.8% |
0.0% |
15.6% |
|
|
14.1% |
1.5% |
-0.5% |
||
|
Total capital adequacy |
17.9% |
0.7% |
-1.4% |
0.1% |
-1.1% |
1.6% |
0.8% |
0.0% |
18.6% |
|
|
16.8% |
1.8% |
-0.5% |
||
Other Businesses
The Business Division 'Other Businesses' includes JSC Belarusky Narodny Bank (BNB) serving retail and SME clients in Belarus, JSC Digital Area - a digital ecosystem in Georgia including e-commerce, ticketing, and inventory management SaaS, Lion Finance Group PLC - the holding company, and other small entities and intragroup eliminations.
|
GEL thousands |
2Q26 |
2Q25 |
Change y-o-y |
1Q26 |
Change q-o-q |
|
1H26 |
1H25 |
Change y-o-y |
|
INCOME STATEMENT HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
Interest income |
39,362 |
28,392 |
38.6% |
35,061 |
12.3% |
|
74,423 |
52,616 |
41.4% |
|
Interest expense |
(20,459) |
(18,278) |
11.9% |
(20,421) |
0.2% |
|
(40,880) |
(30,893) |
32.3% |
|
Net interest income |
18,903 |
10,114 |
86.9% |
14,640 |
29.1% |
|
33,543 |
21,723 |
54.4% |
|
Net fee and commission income |
3,414 |
3,649 |
-6.4% |
3,195 |
6.9% |
|
6,609 |
7,275 |
-9.2% |
|
Net foreign currency gain |
33,670 |
23,424 |
43.7% |
20,735 |
62.4% |
|
54,405 |
52,270 |
4.1% |
|
Regulatory-related expenses |
(1,787) |
(1,136) |
57.3% |
(1,716) |
4.1% |
|
(3,503) |
(1,365) |
156.6% |
|
Net other income |
4,354 |
2,707 |
60.8% |
3,630 |
19.9% |
|
7,984 |
3,867 |
106.5% |
|
Net operating income |
58,554 |
38,758 |
51.1% |
40,484 |
44.6% |
|
99,038 |
83,770 |
18.2% |
|
Salaries and other employee benefits |
(17,968) |
(16,111) |
11.5% |
(17,790) |
1.0% |
|
(35,758) |
(29,794) |
20.0% |
|
Administrative expenses |
(12,786) |
(8,318) |
53.7% |
(10,714) |
19.3% |
|
(23,500) |
(17,045) |
37.9% |
|
Depreciation, amortisation and impairment |
(10,502) |
(3,079) |
NMF |
(4,219) |
148.9% |
|
(14,721) |
(5,904) |
149.3% |
|
Other operating expenses |
(380) |
(333) |
14.1% |
(329) |
15.5% |
|
(709) |
(675) |
5.0% |
|
Operating expenses |
(41,636) |
(27,841) |
49.5% |
(33,052) |
26.0% |
|
(74,688) |
(53,418) |
39.8% |
|
Operating income before cost of risk |
16,918 |
10,917 |
55.0% |
7,432 |
127.6% |
|
24,350 |
30,352 |
-19.8% |
|
Cost of risk |
(1,824) |
819 |
NMF |
(770) |
136.9% |
|
(2,594) |
69 |
NMF |
|
Profit before income tax expense |
15,094 |
11,736 |
28.6% |
6,662 |
126.6% |
|
21,756 |
30,421 |
-28.5% |
|
Income tax expense |
(12,354) |
(4,130) |
199.1% |
(3,153) |
NMF |
|
(15,507) |
(10,334) |
50.1% |
|
Profit |
2,740 |
7,606 |
-64.0% |
3,509 |
-21.9% |
|
6,249 |
20,087 |
-68.9% |
|
BALANCE SHEET HIGHLIGHTS |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
804,630 |
641,614 |
25.4% |
679,737 |
18.4% |
|
Amounts due from credit institutions |
23,563 |
23,173 |
1.7% |
30,636 |
-23.1% |
|
Investment securities |
95,022 |
124,767 |
-23.8% |
142,971 |
-33.5% |
|
Loans to customers, finance lease and factoring receivables |
1,223,493 |
881,548 |
38.8% |
1,068,647 |
14.5% |
|
Property and equipment |
18,518 |
15,657 |
18.3% |
18,218 |
1.6% |
|
All remaining assets |
133,277 |
99,238 |
34.3% |
127,892 |
4.2% |
|
Total assets |
2,298,503 |
1,785,997 |
28.7% |
2,068,101 |
11.1% |
|
Client deposits and notes |
1,667,597 |
1,430,237 |
16.6% |
1,567,641 |
6.4% |
|
Amounts owed to credit institutions |
9,926 |
(15,834) |
NMF |
48,814 |
-79.7% |
|
Debt securities issued |
48,481 |
12,700 |
NMF |
13,201 |
NMF |
|
All remaining liabilities |
164,833 |
8,571 |
NMF |
51,186 |
NMF |
|
Total liabilities |
1,890,837 |
1,435,674 |
31.7% |
1,680,842 |
12.5% |
|
Total equity |
407,666 |
350,323 |
16.4% |
387,259 |
5.3% |
|
• |
Net operating income grew by 51.1% y-o-y in 2Q26 and 18.2% y-o-y in 1H26. Net foreign currency gains were a strong contributor to 2Q26 y-o-y growth, driven by expanded FX activity at BNB. Net interest income grew strongly in both 2Q26 and 1H26, supported by NIM expansion at BNB, reflecting higher loan yields alongside a declining cost of deposits, the latter benefiting from a more favourable rate environment. |
|
• |
Operating expenses were up 49.5% and 39.8% y-o-y in 2Q26 and 1H26, respectively. The primary driver was depreciation, amortisation and impairment charges, which included an impairment of goodwill associated with one of Digital Area's smaller business units (e-commerce delivery platform). Growth in administrative expenses also contributed to total expense growth, partly due to higher consulting costs. Excluding these two items, operating expenses would have been up 19.5% y-o-y in 2Q26 and up 24.1% y-o-y in 1H26. |
|
• |
The effective tax rate increased y-o-y, reflecting an additional tax charge on dividends received from Ameriabank recognised in 2Q26. |
|
• |
BNB's capital ratios, calculated in accordance with the National Bank of the Republic of Belarus' standards, were above the minimum requirements as at 30 June 2026: Tier 1 capital adequacy ratio at 10.1% (minimum requirement of 7.0%) and Total capital adequacy ratio at 13.9% (minimum requirement of 12.5%). |
Unaudited consolidated financial information
|
GEL thousands |
2Q26 |
2Q25 |
Change y-o-y |
1Q26 |
Change q-o-q |
|
1H26 |
1H25 |
Change y-o-y |
||||
|
INCOME STATEMENT HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
||||
|
Interest income |
1,560,463 |
1,299,141 |
20.1% |
1,466,122 |
6.4% |
|
3,026,585 |
2,536,548 |
19.3% |
||||
|
Interest expense |
(674,260) |
(571,661) |
17.9% |
(643,508) |
4.8% |
|
(1,317,768) |
(1,114,707) |
18.2% |
||||
|
Net interest income |
886,203 |
727,480 |
21.8% |
822,614 |
7.7% |
|
1,708,817 |
1,421,841 |
20.2% |
||||
|
Fee and commission income |
340,356 |
264,321 |
28.8% |
306,949 |
10.9% |
|
647,305 |
513,647 |
26.0% |
||||
|
Fee and commission expense |
(140,485) |
(106,016) |
32.5% |
(124,307) |
13.0% |
|
(264,792) |
(211,514) |
25.2% |
||||
|
Net fee and commission income |
199,871 |
158,305 |
26.3% |
182,642 |
9.4% |
|
382,513 |
302,133 |
26.6% |
||||
|
Net foreign currency gain |
166,253 |
152,597 |
8.9% |
130,124 |
27.8% |
|
296,377 |
298,191 |
-0.6% |
||||
|
Regulatory-related expenses |
(19,219) |
(16,172) |
18.8% |
(18,371) |
4.6% |
|
(37,590) |
(31,600) |
19.0% |
||||
|
Other expenses |
(2,334) |
(1,722) |
35.5% |
(2,074) |
12.5% |
|
(4,408) |
(3,144) |
40.2% |
||||
|
Net other income |
10,794 |
18,077 |
-40.3% |
9,978 |
8.2% |
|
20,772 |
29,362 |
-29.3% |
||||
|
Net operating income |
1,241,568 |
1,038,565 |
19.5% |
1,124,913 |
10.4% |
|
2,366,481 |
2,016,783 |
17.3% |
||||
|
Salaries and other employee benefits |
(261,610) |
(240,029) |
9.0% |
(252,077) |
3.8% |
|
(513,687) |
(453,104) |
13.4% |
||||
|
Administrative expenses |
(94,627) |
(80,884) |
17.0% |
(78,138) |
21.1% |
|
(172,765) |
(155,328) |
11.2% |
||||
|
Depreciation, amortisation and impairment |
(66,834) |
(54,093) |
23.6% |
(57,050) |
17.1% |
|
(123,884) |
(105,260) |
17.7% |
||||
|
Other operating expenses |
(3,583) |
(3,221) |
11.2% |
(2,171) |
65.0% |
|
(5,754) |
(6,994) |
-17.7% |
||||
|
Operating expenses |
(426,654) |
(378,227) |
12.8% |
(389,436) |
9.6% |
|
(816,090) |
(720,686) |
13.2% |
||||
|
Profit from associates |
604 |
465 |
29.9% |
386 |
56.5% |
|
990 |
736 |
34.5% |
||||
|
Operating income before cost of risk |
815,518 |
660,803 |
23.4% |
735,863 |
10.8% |
|
1,551,381 |
1,296,833 |
19.6% |
||||
|
Expected credit loss on loans to customers and factoring receivables |
(62,174) |
(47,190) |
31.8% |
(34,758) |
78.9% |
|
(96,932) |
(64,669) |
49.9% |
||||
|
Expected credit loss on finance lease receivables |
1,142 |
(418) |
NMF |
666 |
71.5% |
|
1,808 |
(627) |
NMF |
||||
|
Other expected credit loss and impairment charge on other assets and provisions |
(3,428) |
(3,188) |
7.5% |
(4,748) |
-27.8% |
|
(8,176) |
(12,413) |
-34.1% |
||||
|
Cost of risk |
(64,460) |
(50,796) |
26.9% |
(38,840) |
66.0% |
|
(103,300) |
(77,709) |
32.9% |
||||
|
Profit before income tax expense |
751,058 |
610,007 |
23.1% |
697,023 |
7.8% |
|
1,448,081 |
1,219,124 |
18.8% |
||||
|
Income tax expense |
(132,253) |
(96,760) |
36.7% |
(112,035) |
18.0% |
|
(244,288) |
(192,813) |
26.7% |
||||
|
Profit |
618,805 |
513,247 |
20.6% |
584,988 |
5.8% |
|
1,203,793 |
1,026,311 |
17.3% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Attributable to: |
|
|
|
|
|
|
|
|
|
||||
|
- shareholders of the Group |
618,800 |
513,286 |
20.6% |
584,973 |
5.8% |
|
1,203,773 |
1,024,421 |
17.5% |
||||
|
- non-controlling interests |
5 |
(39) |
NMF |
15 |
-66.7% |
|
20 |
1,890 |
-98.9% |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic earnings per share |
14.52 |
11.89 |
22.1% |
13.72 |
5.8% |
|
28.24 |
23.70 |
19.2% |
||||
|
Diluted earnings per share |
14.39 |
11.75 |
22.5% |
13.61 |
5.7% |
|
27.98 |
23.44 |
19.4% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
GEL thousands |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
BALANCE SHEET HIGHLIGHTS |
|
|
|
|
|
|
Cash and cash equivalents |
5,046,754 |
4,022,221 |
25.5% |
3,440,364 |
46.7% |
|
Amounts due from credit institutions |
3,777,016 |
3,194,606 |
18.2% |
3,764,046 |
0.3% |
|
Investment securities |
9,737,554 |
7,944,799 |
22.6% |
9,078,699 |
7.3% |
|
Investment securities pledged under sale and repurchase agreements and securities lending |
320,654 |
1,171,662 |
-72.6% |
247,579 |
29.5% |
|
Loans to customers, finance lease and factoring receivables |
44,429,043 |
36,530,447 |
21.6% |
41,881,946 |
6.1% |
|
Prepayments |
160,538 |
103,759 |
54.7% |
161,586 |
-0.6% |
|
Foreclosed assets |
405,131 |
342,565 |
18.3% |
382,441 |
5.9% |
|
Right-of-use assets |
327,471 |
291,445 |
12.4% |
323,191 |
1.3% |
|
Investment properties |
98,261 |
131,080 |
-25.0% |
102,078 |
-3.7% |
|
Property and equipment |
622,402 |
578,502 |
7.6% |
616,135 |
1.0% |
|
Goodwill |
35,488 |
41,253 |
-14.0% |
41,253 |
-14.0% |
|
Intangible assets |
402,750 |
338,794 |
18.9% |
389,142 |
3.5% |
|
Income tax assets |
55 |
2,253 |
-97.6% |
207 |
-73.4% |
|
Other assets |
447,670 |
383,771 |
16.7% |
539,097 |
-17.0% |
|
Assets held for sale |
9,752 |
14,913 |
-34.6% |
14,038 |
-30.5% |
|
Total assets |
65,820,539 |
55,092,070 |
19.5% |
60,981,802 |
7.9% |
|
Client deposits and notes |
43,664,753 |
34,789,736 |
25.5% |
39,699,016 |
10.0% |
|
Amounts owed to credit institutions |
7,372,045 |
8,927,118 |
-17.4% |
7,722,100 |
-4.5% |
|
Debt securities issued |
4,176,271 |
2,445,652 |
70.8% |
3,298,758 |
26.6% |
|
Lease liability |
359,831 |
304,559 |
18.1% |
339,316 |
6.0% |
|
Accruals and deferred income |
239,749 |
249,568 |
-3.9% |
277,532 |
-13.6% |
|
Income tax liabilities |
165,531 |
116,575 |
42.0% |
195,988 |
-15.5% |
|
Other liabilities |
450,431 |
639,730 |
-29.6% |
579,422 |
-22.3% |
|
Total liabilities |
56,428,611 |
47,472,938 |
18.9% |
52,112,132 |
8.3% |
|
Share capital |
1,419 |
1,445 |
-1.8% |
1,423 |
-0.3% |
|
Additional paid-in capital |
613,014 |
477,694 |
28.3% |
561,529 |
9.2% |
|
Treasury shares |
(18) |
(28) |
-35.7% |
(18) |
0.0% |
|
Capital redemption reserve |
199 |
173 |
15.0% |
196 |
1.5% |
|
Other reserves |
165,355 |
47,442 |
NMF |
158,589 |
4.3% |
|
Retained earnings |
8,609,880 |
7,090,940 |
21.4% |
8,145,881 |
5.7% |
|
Total equity attributable to shareholders of the Group |
9,389,849 |
7,617,666 |
23.3% |
8,867,600 |
5.9% |
|
Non-controlling interests |
2,079 |
1,466 |
41.8% |
2,070 |
0.4% |
|
Total equity |
9,391,928 |
7,619,132 |
23.3% |
8,869,670 |
5.9% |
|
Total liabilities and equity |
65,820,539 |
55,092,070 |
19.5% |
60,981,802 |
7.9% |
|
Book value per share |
220.69 |
176.81 |
24.8% |
207.82 |
6.2% |
Non-financial information
Customer engagement
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
Retail (thousands): |
|
|
|
|
|
|
Monthly active customers: |
|
|
|
|
|
|
Bank of Georgia (standalone) |
2,275.3 |
2,077.5 |
9.5% |
2,233.2 |
1.9% |
|
Ameriabank (standalone) |
521.5 |
407.9 |
27.9% |
495.7 |
5.2% |
|
Digital MAU: |
|
|
|
|
|
|
Bank of Georgia (standalone) |
1,922.1 |
1,696.2 |
13.3% |
1,868.3 |
2.9% |
|
Ameriabank (standalone) |
392.1 |
266.7 |
47.0% |
362.4 |
8.2% |
|
Digital DAU: |
|
|
|
|
|
|
Bank of Georgia (standalone) |
1,049.4 |
874.4 |
20.0% |
984.9 |
6.5% |
|
Ameriabank (standalone) |
174.2 |
110.0 |
58.3% |
160.2 |
8.8% |
|
Share of products sold through retail digital channels: |
|
|
|
|
|
|
Bank of Georgia (standalone) |
73% |
69% |
|
71% |
|
|
|
|
|
|
|
|
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
Businesses (thousands): |
|
|
|
|
|
|
Monthly active customers: |
|
|
|
|
|
|
Bank of Georgia (standalone) |
136.4 |
122.3 |
11.6% |
129.8 |
5.1% |
|
Ameriabank (standalone) |
41.4 |
36.1 |
14.7% |
40.3 |
2.7% |
|
Digital MAU: |
|
|
|
|
|
|
Bank of Georgia (standalone) |
114.8 |
100.0 |
14.7% |
108.4 |
5.9% |
|
Ameriabank (standalone) |
33.8 |
28.1 |
20.3% |
32.8 |
3.0% |
Payments business
|
Bank of Georgia (standalone) |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
|
|
|
|
|
|
|
Payment MAU - retail (issuing) (thousands) |
1,710.4 |
1,528.6 |
11.9% |
1,668.3 |
2.5% |
|
Market share in acquiring volumes[3] |
56.7% |
55.9% |
|
56.9% |
|
|
Active merchants (thousands) |
28.8 |
25.4 |
13.3% |
26.7 |
7.9% |
|
|
2Q26 |
2Q25 |
Change y-o-y |
1Q26 |
Change q-o-q |
|
|
|
|
|
|
|
|
Volume of payment transactions (acquiring)3(millions): Bank of Georgia (standalone) |
6,524 |
5,431 |
20.1% |
5,788 |
12.7% |
|
POS |
4,173 |
3,452 |
20.9% |
3,563 |
17.1% |
|
E-comm |
2,351 |
1,979 |
18.8% |
2,225 |
5.7% |
Additional information
|
|
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
Employees (period-end) |
|
|
|
|
|
|
Bank of Georgia |
8,639 |
8,325 |
3.8% |
8,708 |
-0.8% |
|
Ameriabank |
2,452 |
2,205 |
11.2% |
2,442 |
0.4% |
|
Other |
2,252 |
2,173 |
3.6% |
2,359 |
-4.5% |
|
Group |
13,343 |
12,703 |
5.0% |
13,509 |
-1.2% |
|
Branch-network |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
|
|
|
|
|
|
|
Bank of Georgia |
206 |
187 |
10.2% |
205 |
0.5% |
|
Of which: |
|
|
|
|
|
|
Full-scale branches |
115 |
99 |
16.2% |
109 |
5.5% |
|
Transactional branches |
91 |
88 |
3.4% |
96 |
-5.2% |
|
Ameriabank |
30 |
26 |
15.4% |
29 |
3.4% |
|
FX rates |
Jun-26 |
Jun-25 |
|
Mar-26 |
|
|
|
|
|
|
|
GEL/USD exchange rate (period-end) |
2.65 |
2.72 |
|
2.70 |
|
GEL/GBP exchange rate (period-end) |
3.50 |
3.74 |
|
3.57 |
|
GEL/1000AMD exchange rate (period-end) |
7.18 |
7.07 |
|
7.12 |
|
Shares outstanding |
Jun-26 |
Jun-25 |
Change y-o-y |
Mar-26 |
Change q-o-q |
|
|
|
|
|
|
|
|
Ordinary shares outstanding (period-end) |
42,547,127 |
43,083,953 |
-1.2% |
42,669,622 |
-0.3% |
|
Treasury shares outstanding (period-end) |
568,307 |
827,573 |
-31.3% |
554,307 |
2.5% |
|
Total shares outstanding (period-end) |
43,115,434 |
43,911,526 |
-1.8% |
43,223,929 |
-0.3% |
Principal risks and uncertainties
Macro and geopolitical risks
Macro and geopolitical risks are the risks of adverse changes in macroeconomic parameters and/or the geopolitical environment that may result in the deteriorated performance and position of the Group.
Key drivers and developments
The Group's asset base is geographically concentrated in Georgia and Armenia, where its principal banking subsidiaries operate. Key macro risks for Georgia and Armenia include changes in GDP growth, inflation, interest rates, exchange rates and political developments. Despite robust economic performance recently, both countries continue to face downside risks stemming from regional geopolitical instability, global trade tensions and country-specific challenges.
The unresolved war in Ukraine and tensions in the Middle East remain primary sources of geopolitical risk in the wider region. The Georgian and Armenian economies are particularly exposed to these risks due to their reliance on imports, foreign direct investment, and external inflows from exports, international tourism and remittances.
As both economies have benefited from inflows of migrants and capital following the onset of the Russia-Ukraine war, there is a risk that these inflows could partially reverse once the conflict ends. However, the persistence of these inflows, coupled with elevated uncertainty surrounding the timing and nature of any potential resolution, makes an abrupt reversal less likely. Based on recent inflow dynamics, a gradual normalisation with limited adverse impact on the domestic economies appears more plausible.
Escalations involving Iran in mid-2025 and early 2026 contributed to increased volatility in global energy markets and disruptions to regional transport routes. In June 2026, the United States and Iran signed an interim memorandum of understanding aimed at ending the conflict. However, implementation quickly broke down, with both sides accusing each other of violating the agreement and resuming military operations. As a result, uncertainty surrounding the duration and scale of the conflict remains elevated.
The Georgian and Armenian economies have limited direct exposure to Iran. In 2025, inflows from merchandise exports, tourism, remittances, and foreign direct investment from Iran accounted for a small fraction of their respective GDPs. Nevertheless, both economies could be adversely affected if instability spreads to other Middle Eastern countries. In such a scenario, economic disruptions in affected countries, along with broader transportation disturbances, could weaken external inflows to Georgia and Armenia. This would adversely affect economic activity and put pressure on exchange rates. Furthermore, sustained high oil prices, combined with local currency depreciation, could generate domestic inflationary pressures and prompt central banks to tighten monetary policy. A prolonged and widespread conflict could also have adverse indirect effects through weaker external demand. However, diversified sources of foreign currency inflows, including from energy-exporting countries, could help to limit the negative impact. Moreover, amidst protracted tensions in the Middle East, the redirection of tourism and relocation of capital cannot be ruled out, which could provide additional support to the domestic economies.
In early 2025, U.S. import tariffs and retaliatory measures by major trading partners increased global trade-policy uncertainty, amplifying concerns about slower global growth and tighter financial conditions. While Georgia and Armenia have limited direct trade exposure to the United States, weaker economic performance among key partner economies - particularly, the EU and China - may reduce external demand for both countries. Furthermore, a potential deterioration in investor sentiment could trigger capital outflows from developing economies such as Georgia and Armenia, placing depreciation pressure on local currencies and potentially increasing inflation and foreign-currency debt service costs.
In addition to these shared risks, both countries face several country-specific challenges. In Georgia, continued political uncertainty following the October 2024 Parliamentary elections may weigh on consumer and business confidence, as well as investor sentiment. This, in turn, could translate into prolonged weakness in FDI inflows, with adverse effects on the local currency and productivity.
The June 2026 parliamentary election in Armenia was held amid elevated tensions with Russia. Ahead of the election, Russian authorities imposed temporary import restrictions on several Armenian agricultural products. In addition, Russian officials stated that Armenia's aspirations for closer integration with the European Union were incompatible with its membership in the Russian-led Eurasian Economic Union. Moscow also warned that it could reconsider the supply of oil and natural gas to Armenia on concessional terms if Armenia continued pursuing closer ties with the EU. Following his ruling party's convincing election victory, Armenia's Prime Minister expressed his intention to normalise relations with Russia while maintaining Armenia's current foreign policy course. The heightened tensions with Russia could adversely affect external inflows, investor sentiment, and overall economic activity in Armenia.
The proximity of Georgia and Armenia to Russia presents heightened sanctions evasion risks. Group Companies have strengthened compliance and due diligence measures to mitigate these risks. Further details on actions taken to mitigate financial crime risk can be found on page 23.
Mitigation
Governance: The Board receives quarterly updates on global, regional and country-specific macroeconomic conditions from economic specialists and regularly discusses major political and geopolitical developments affecting the Group's operating subsidiaries.
Monitoring and reporting: Group Companies continuously monitor macroeconomic developments and incorporate adverse economic and geopolitical conditions in stress and scenario analyses, including portfolio-level sensitivity analysis - enabling local Executive Management to take proactive actions, including adjustment of operational risk limits during underwriting when necessary.
Other mitigants: Georgian legislation (effective 1 July 2026) requires loans up to one million GEL be issued only in GEL if borrower income is also in GEL. The NBG has established a currency-induced credit risk (CICR) capital buffer to reduce dollarisation risks. Armenian legislation requires that mortgages and consumer loans to residents of Armenia be granted only in local currency.
For individual loans, NBG's payment-to-income (PTI) and loan-to-value (LTV) requirements are more conservative for foreign currency loans to mitigate borrower-level credit risk: PTI requirements for foreign currency loans are 5 ppts higher for monthly income below GEL 1,500 and 20 ppts higher for income above GEL 1,500; and the LTV requirement for foreign currency mortgage loans is 20 ppts tighter (effective 26 February 2025).
Ameriabank assesses borrower creditworthiness in line with its internal standards by incorporating stressed exchange rates into key metrics, including the obligations-to-income ratio for individuals, the debt service coverage ratio for business loans, and the LTV ratio.
Furthermore, both Group Companies manage their currency exposure through internal limits on open currency positions, which are set by their respective Supervisory Boards and are currently tighter than the regulatory requirements.
Credit risk
Credit risk is the risk that the Group will incur a financial loss due to customers or counterparties failing to meet their contractual obligations, arising primarily from lending activities.
Key drivers and developments
The Group's Expected Credit Loss (ECL) is affected by both idiosyncratic and sectoral/systemic risk factors. Increased ECL charges may result from portfolio growth, higher default rates, adverse portfolio quality shifts due to rating downgrades and/or changes in portfolio structure. The Group's cost of credit risk ratio was 0.5% for the six months ended 30 June 2026 (1H25: 0.4%)
Mitigation
Governance: The Board receives quarterly updates on the Group's credit risk profile during regular Board and Risk Committee meetings as well as quarterly results discussions.
Dedicated credit risk management functions are established within Group Companies to directly oversee and challenge the credit risk activities of frontline business units. In addition, each subsidiary has a centralised, enterprise-level risk management function responsible for overall credit risk management from a bank-wide perspective. Key responsibilities of these functions include overseeing aggregate credit risk assessment processes, developing and managing portfolio-wide policies, monitoring overall credit quality and conducting comprehensive stress testing and scenario analysis to assess the impact of adverse scenarios on the credit portfolio and capital adequacy.
Risk appetite: Group Companies have established credit risk appetites, including quantitative limits, to mitigate excessive credit risk and concentration at various levels. Credit risk profiles are monitored quarterly against this appetite and reported to the respective Supervisory Boards.
Credit assessment and approval: Across the Group, credit assessment processes are tailored to specific client segments and product types to ensure the level of review is appropriate for the associated risk.
Larger and more complex exposures, particularly within the Corporate Banking segment, are subject to a detailed individual underwriting process. For the SME and Retail Banking segments, a hybrid approach is used, combining individual assessments with automated, model-driven decisioning. The specific method used is determined by factors such as product type, exposure size and the subsidiary's operating model.
Automated, model-driven decisioning is a key component of the Group's credit assessment framework, particularly within retail lending, and is used to drive efficiency and consistency. The performance of all credit assessment models is regularly monitored in line with established model risk management frameworks to ensure their ongoing accuracy and effectiveness.
To ensure a robust credit-granting process, Group Companies have implemented several measures and frameworks:
· Well-defined lending standards: Group Companies maintain clear standards for granting credit, which outline borrower requirements. These standards serve as the benchmark for evaluating creditworthiness of customers and enable the identification and assessment of potential risks.
· Segregation of duties: A clear segregation of duties exists between credit analysis and approval functions. While credit analysts and business bankers prepare client presentations, these are independently reviewed by a risk manager. This review ensures that all risks and mitigating factors are identified and addressed, and that the loan is structured appropriately.
· Multi-tiered loan approval committees: Exposures are reviewed and approved by multi-tiered Credit Committees. Each committee has a specific approval limit, ensuring that the level of review is appropriate for the size and risk profile of the proposed loan.
Beyond these frameworks, climate and Environmental, Social, and Governance (ESG) risks are formally considered in the lending process. Across the Group, credit risk managers integrate the assessment of these risks into their analysis and conclusions, which are subsequently discussed with the relevant credit committees.
Loan portfolio quality monitoring and reporting: Timely identification of macro and micro-level developments is ensured through established processes and controls. This monitoring includes a comprehensive assessment against risk appetite limits, supported by key risk and early warning indicators to identify areas of the portfolio with potentially increasing credit risk. The Chief Risk Officers and Credit Risk Management departments review the portfolio's credit quality monthly. The Supervisory Board Risk Committees periodically review these analyses within the context of the broader macroeconomic environment.
Group Companies adhere to the customer exposure limits for corporate loans set by their respective regulators, as well as to internally established limits. They actively monitor concentration levels within the loan portfolio and the financial performance of the largest borrowers to maintain a well-diversified loan book. Bank of Georgia's top 10 borrowers accounted for 6.3% of its gross loans to customers, factoring and finance lease receivables as at 30 June 2026 (6.4% as at 30 June 2025). Ameriabank's top 10 borrowers accounted for 15.2% of its gross loans, factoring and finance lease receivables as at 30 June 2026 (12.1% as at 30 June 2025).
Collateral valuation: Property and other types of security are used to mitigate credit risk. In Corporate and SME Banking, collateral primarily includes liens over real estate, property, plant and equipment, as well as inventory, transportation equipment, corporate guarantees, deposits and securities. In Retail Banking, loans to individuals are primarily secured by residential property. As at 30 June 2026, 79.6% of Bank of Georgia's and 80.2% of Ameriabank's gross loans, finance and factoring lease receivables were collateralised.
Group Companies monitor the market value of collateral during reviews of the adequacy of the allowance for ECL. For provisioning purposes, a discount to the current market value of assets is applied to reflect the liquidation value of collateral. Collateral is appraised either by reputable third-party firms or, in the case of Bank of Georgia, by a dedicated internal Asset Evaluation department. The appraisal report is submitted to the relevant Credit Committee as part of the loan application package, which also includes a report from the Credit Risk Officer.
Restructuring and collections: Group Companies assist borrowers facing financial difficulty by offering tailored solutions, such as loan restructuring, to help them meet their obligations and return to a performing status. As part of their overall collection activities, Group Companies also utilise certain measures for managing delinquencies at an early stage. For instance, Bank of Georgia has developed a process where automated restructuring offers are proactively delivered to clients for certain products that reach a defined delinquency threshold through digital channels. If no agreement is reached, banks initiate collateral repossession through court, arbitration or notary procedures.
ECL measurement:
Expected credit loss is measured as the probability-weighted present value of credit losses expected to result from all possible default events over the relevant time horizon - either the next twelve months or the remaining lifetime of the instrument, depending on the stage classification of the exposure. The measurement process is designed to be unbiased and to incorporate all reasonable and supportable information that is available at the reporting date without undue cost or effort including data on historical default and recovery rates, the current credit quality of the portfolio, and management's assessment of future macroeconomic conditions and their expected impact on borrower creditworthiness.
The time horizon applied to each exposure is determined by its stage classification. Financial instruments that are credit-impaired on initial recognition are classified as Purchased or Originated Credit-Impaired (POCI). These assets retain their POCI classification until derecognition, and a lifetime ECL is recognised for them throughout this period, regardless of subsequent improvements in credit quality. For all other financial instruments, the Group applies the following three-stage approach to measure ECL:
· Stage 1: If, at the reporting date, the exposure is not credit-impaired and there has been no significant increase in credit risk since initial recognition, the Group recognises a credit loss allowance equal to the 12-month ECL.
· Stage 2: If, at the reporting date, the exposure is not credit-impaired but there has been a significant increase in credit risk since initial recognition, the Group recognises a credit loss allowance equal to the lifetime ECL.
· Stage 3: If, at the reporting date, the exposure is credit-impaired, the Group recognises a loss allowance equal to the lifetime ECL.
The Group calculates Expected Credit Losses (ECL) based on the Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD), following standard practice. LGD is estimated either collectively or individually, based on the client's exposure size. For collective assessments, the portfolio is segmented into homogeneous groups to improve accuracy. ECL is the probability-weighted sum of outcomes under baseline, upside, and downside economic scenarios. Staging and ECL incorporate both internal and external information, including credit ratings, financial statements, days past due, and economic forecasts.
Counterparty risk: The Group is exposed to counterparty credit risk - the risk of loss from a counterparty failing to meet its contractual obligations - through activities including inter-bank lending, foreign exchange settlements, trade finance, and investments in securities. To manage this risk, Group Companies establish individual counterparty limits based on credit ratings and risk profiles, alongside country limits to control concentration. Exposures are monitored daily, and breaches are escalated to Executive Management. Reflecting this prudent management, as at 30 June 2026, 93.5% of Bank of Georgia's and 92.2% of Ameriabank's inter-bank exposure was to investment-grade counterparties.
Liquidity and funding risks
Liquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due under normal or stressed circumstances.
Funding risk is the risk that the Group will not be able to access stable and diversified funding sources at an acceptable cost.
Key drivers and developments
Funding availability in emerging markets is subject to shifts in investor confidence, which can affect both pricing and access for the Group. Unfavourable market conditions may exert pressure on liquidity, particularly if liquid assets become illiquid or lose value. In such cases, alternative funding options can be limited in the Georgian and Armenian inter-bank markets and may involve additional pricing risks. The Group also faces risks from the potential for rapid, large-scale deposit outflows or the utilisation of off-balance-sheet commitments during periods of significant political or economic instability.
The Group maintains a diverse funding base comprising short-term sources (including retail and corporate deposits, as well as inter-bank and central bank borrowings) and longer-term sources (including retail and corporate term deposits, borrowings from International Financial Institutions (IFIs) and issued debt securities). Client deposits and notes remain the key sources of funding for Group Companies. In May 2026, Bank of Georgia successfully issued USD 300 million of 6.50% senior unsecured Notes due June 2031, which further contributed to funding diversification. As at 30 June 2026, the Group's long-term funding comprised 40.9% deposits, 32.1% amounts owed to credit institutions, and 27.0% debt securities. Group Companies maintain strong relationships with and benefit from the support of IFIs and private asset managers, ensuring a solid funding pipeline for the next 12 months.
Liquidity and funding positions of Group Companies remained strong throughout the period, with the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for Bank of Georgia and Ameriabank exceeding the 100% regulatory minimum. As at 30 June, Bank of Georgia's LCR stood at 152.0% and its NSFR at 132.9%, while Ameriabank's LCR stood at 180.0% and its NSFR at 126.0%.
Mitigation
Governance: The Board receives regular updates on the Group's liquidity and funding position during its scheduled meetings and as part of the quarterly results approval process.
At a committee level, funding and liquidity risk management is governed by the Asset-Liability Committees (ALCOs) of the respective Group Companies. The ALCOs approve the liquidity risk management frameworks and oversee their implementation. The risk appetite limits defined within these frameworks require ultimate approval from the respective Supervisory Boards.
This governance is supported by a clear segregation of duties within Group Companies. The Finance function acts as the first line of defence, responsible for the day-to-day management of liquidity and funding positions, and managing the liquidity buffer. The Risk function serves as the second line of defence, providing independent oversight by developing policies, standards and guidelines, defining risk appetite, and reporting on the risk profile to the ALCOs.
Monitoring and reporting: Group Companies perform daily monitoring of market and internal early-warning indicators to detect signs of liquidity stress. The liquidity position is reported monthly to Executive Management and the respective Asset-Liability Committees (ALCOs). Furthermore, the Board's Risk Committee reviews the liquidity risk profile on a quarterly basis as part of its comprehensive risk dashboard review.
Risk appetite: The risk appetite framework defines tolerance for liquidity risk, in line with established liquidity adequacy principles. This tolerance is quantified through specific metrics that are approved by the respective Supervisory Boards and subject to annual review. This process enables the timely identification of potential deviations from the desired risk profile, thereby triggering proactive risk management actions.
Funding and liquidity management: Liquidity risk is managed through comprehensive frameworks, approved by the respective ALCOs, which model the ability to meet payment obligations under both normal and stressed conditions. Bank of Georgia has also developed a detailed liquidity contingency plan, which defines specific risk indicators and mitigation actions to enable the early detection of, and response to, liquidity pressures.
Liquidity stress testing: Both Bank of Georgia and Ameriabank have developed Internal Liquidity Adequacy Assessment Processes (ILAAP), incorporating stress testing to evaluate the adequacy of liquidity buffers under idiosyncratic, systemic, and combined stress scenarios. These scenarios cover all key liquidity drivers and are regularly reviewed to ensure their continued relevance.
Capital risk
Capital risk is the risk of failure to deliver business objectives, meet regulatory requirements, and/or meet market expectations due to insufficient capital.
Key drivers and developments
Bank of Georgia adheres to the NBG's capital adequacy regulation based on Basel III guidelines with regulatory discretion. Requirements include Pillar 1, a combined buffer (systemic, countercyclical, conservation), and Pillar 2 buffers (concentration, General Risk Assessment Programme (GRAPE), Currency-Induced Credit Risk (CICR), Credit Risk Adjustment (CRA), stress-test). Ameriabank is subject to Pillar 1 requirements, with the CBA planning to introduce Pillar 2 in the future.
Since March 2023, Bank of Georgia has been accumulating/will accummulate a neutral countercyclical capital buffer as follows: 0.25% by 15 March 2024; 0.5% by 15 March 2025; 0.75% by 15 March 2026; and 1% by 15 March 2027.
Following a decision by the CBA on 23 September 2025 (published on 6 October and effective from 15 October 2025), the regulatory framework was expanded to recognise Additional Tier 1 (AT1) capital instruments as an eligible component of bank capital. Consequently, in February 2026, Ameriabank strengthened its capital position through the successful issuance of its inaugural USD 50 million 8.5% Additional Tier 1 (AT1) capital notes, followed by a second USD 50 million 8.0% AT1 issue in June 2026.
Group Companies maintained capital adequacy ratios above their minimum regulatory requirements as at 30 June 2026 (see pages 10 and 13).
Mitigation
Governance: The Board maintains oversight of the capital positions of Group Companies through regular quarterly updates. It also reviews the potential impact of various scenarios to inform capital return decisions.
Day-to-day capital risk management is handled by the Finance departments as the first line of defence, while Risk Management units serve as the second line, setting capital risk frameworks and ensuring their effective implementation within Group Companies.
Risk appetite: Group Companies manage capital risk through a framework of bank-level limits aligned with defined risk appetites, which are approved by the respective ALCOs and Supervisory Boards. Monitoring occurs at multiple levels: monthly reviews by the ALCOs are complemented by quarterly reviews at both the local Supervisory Board and the Board's Risk Committee levels. Demonstrating this prudent approach, each Group Company maintains a distinct capital management policy aligned with its strategic objectives. This governance includes the monitoring of key capital adequacy metrics by the respective ALCOs and Supervisory Boards, including the level of internal capital buffers held above regulatory minimums.
Capital management: Both Bank of Georgia and Ameriabank maintain an Internal Capital Adequacy Assessment Process (ICAAP), approved by their respective Supervisory Boards and overseen by their ALCOs. Through this process, which includes annual risk assessments, the banks ensure they hold sufficient capital to cover material risks from a normative (supervisory) perspective. Bank of Georgia's ICAAP also incorporates an economic (internal) capital perspective.
These capital adequacy assessments are complemented by regulatory recovery plans at each Group Company. These plans establish a framework of early-warning indicators to enable the proactive identification of capital concerns and ensure timely mitigation.
Capital stress testing: Group Companies conduct capital stress tests using a range of diverse but plausible adverse scenarios. The design and calibration of these scenarios are tailored to the objective of each test, whether for internal capital planning, strategic decision-making or regulatory compliance.
Planning and forecasting: Capital forecasts are updated fortnightly at Bank of Georgia and monthly at Ameriabank. Both updates incorporate key inputs such as business expectations, portfolio quality forecasts, market conditions, emerging trends, and anticipated strategic changes.
Market risk
Market risk is the risk of financial loss resulting from movements in market variables that affect the fair value or future cash flows of financial instruments. This risk primarily arises from mismatches in the maturity, currency or interest rate characteristics of assets and liabilities, all of which are exposed to market fluctuations.
Key drivers and developments
Volatility in the GEL and AMD can expose the Group to foreign currency risk, which can adversely affect its financial position. This risk is managed by controlling the size of net open currency positions. For Bank of Georgia, this position is capped by the National Bank of Georgia (NBG) at 20% of its regulatory capital.
For Ameriabank, the corresponding limit set by the Central Bank of Armenia (CBA) is 10% of its regulatory capital. The Group is also exposed to interest rate risk which arises from mismatches in the repricing tenors of its fixed and floating-rate assets and liabilities. Consequently, changes in market interest rates can impact the Group's net interest income by widening or narrowing interest margins.
Mitigation
Governance: Within Group Companies, market risk governance is provided by the respective ALCOs and Supervisory Boards, which approve the risk appetite and oversee its implementation. This is supported by the Risk functions, acting as the second line of defence. Their responsibilities include developing the risk management frameworks and policies, defining the risk appetites, and conducting independent risk profile reviews, with their findings reported to the ALCOs.
Risk appetite: Group Companies manage currency and interest rate risk through an appetite framework defined by quantitative limits. These limits are approved by the respective ALCOs and Supervisory Boards, and compliance is monitored via risk profile reviews conducted at least quarterly.
Market risk management: The respective ALCOs set market risk exposure limits by currency and monitor compliance with the approved risk appetite frameworks. As part of this process, exposures and key metrics are regularly tested against a range of plausible adverse scenarios.
Currency risk is actively managed through the allocation of risk appetite limits for open currency positions. To measure and monitor these exposures, Group Companies employ Value at Risk (VaR) analysis based on historical simulation. This methodology assesses the potential impact of adverse market movements, providing a key input for managing foreign exchange risk within the established limits.
Interest rate risk is managed through policies approved by the respective Supervisory Boards, which aim to protect capital and earnings from adverse rate movements. This involves setting limits on the sensitivity of Net Interest Income (NII) and Economic Value of Equity (EVE) as well as on negative mark-to-market revaluations for trading book exposures. The ALCOs monitor these metrics to manage the Net Interest Margin (NIM), translating the approved risk appetite into operational limits and early-warning indicators for proactive management.
Compliance and conduct risks
Compliance risk is the risk of legal and/or regulatory sanctions and/or damage to the Group's reputation as a result of its failure to identify, assess, correctly interpret, comply with and/or manage regulatory and/ or legal requirements. Conduct risk is the risk that the conduct of the Group and its employees towards customers will lead to unethical and/or unfair customer outcomes and/or adversely affect market integrity, damaging the Group's reputation and competitive position.
Key drivers and developments
The Group operates across multiple jurisdictions, facing evolving and sometimes unpredictable legal and regulatory requirements. As a company listed on the Main Market of the London Stock Exchange, the Group is subject to the UK's regulatory framework for listed companies, which primarily governs areas such as corporate governance, disclosure and transparency, and market conduct. These obligations relate to the Group's status as a listed entity and do not extend to UK-specific regulations governing the provision of services to retail customers, such as the Treating Customers Fairly framework and the Consumer Duty, as the Group's banking subsidiaries operate outside the UK. In their respective countries of operation, the Group's principal operating subsidiaries are supervised by their local central banks: Bank of Georgia is regulated by the National Bank of Georgia (NBG), and Ameriabank is regulated by the Central Bank of Armenia (CBA).
Mitigation
Governance: The second line of defence within Group Companies comprises Bank of Georgia's Legal and Compliance function units under the CLO, and Ameriabank's Operational Control under CEO supervision. These units challenge first-line compliance risk management, establish compliance policies and coordinate risk identification, assessment, documentation, reporting and mitigation for processes and products.
Compliance risk management framework: Group Companies follow established policies and procedures that define principles, standards, roles and responsibilities for independent compliance functions. Internal Audit provides oversight through regular reviews of frameworks and policies.
Monitoring and reporting compliance risk: The Group prioritises compliance risk measurement and management through ongoing monitoring, assessment and reporting by Compliance and Legal Risk Management (Bank of Georgia) and Operational Control Service (Ameriabank). The Group Chief Legal Officer (CLO) reports significant regulatory and legal changes and material regulatory inspections to the Board quarterly.
Regulatory change management: As part of its integrated control framework, the Group systematically assesses the impact of legislative and regulatory changes during formal risk assessments. A dedicated change management system enables timely identification of legal amendments and facilitates appropriate departmental responses. The Group implements changes through formal action plans with structured follow-up.
Effective regulatory engagement is ensured through direct dialogue with regulators or via Banking Association channels - primarily the NBG for Bank of Georgia and the CBA for Ameriabank.
The Group CLO provides quarterly updates to the Board on regulatory developments and implementation progress across key jurisdictions.
Conduct risk management framework: The Group upholds a Code of Conduct and Ethics applicable to all subsidiaries. At Bank of Georgia, the Customer Protection Standard covers all stages of the product and services lifecycle, requiring transparent product offerings and clear, accurate communications to support informed customer decisions. Bank of Georgia's Customer Claims Management procedure handles customer complaints, and the Legal Consulting unit serves as the second line of defence - ensuring that complaint management is undertaken effectively and in compliance with applicable customer protection laws, regulations and internal policies and procedures. Claims related to the Code of Conduct and Ethics violations are reviewed by the bank-level Human Rights and Ethics Committee to ensure they are properly handled and remediation plans are established.
At Ameriabank, an independent Service Quality Assurance department manages customer claims, oversees the entire process, and initiates process improvements. As the second line of defence, it also reviews proposed changes to products, services and tariffs to prevent adverse client impacts.
Recurring claims potentially indicating a systemic issue, as well as whistleblower reports, are investigated and reported quarterly to the Audit Committee.
Group Companies ensure that related party transactions follow the "arm's length" principle as defined by their respective regulators. Transaction terms are predetermined under special internal acts, with deviations requiring Supervisory Board approval. At Bank of Georgia, certain cases - such as aggregate risk positions exceeding GEL 500,000 with respect to a single related party, or collateral replacement - also require Supervisory Board approval. The Supervisory Board receives quarterly reports to monitor these transactions.
Financial crime risk
Financial crime risk is the risk of knowingly or unknowingly facilitating illegal activity, including money laundering, fraud, bribery and corruption, tax evasion, sanctions evasion, the financing of terrorism and/ or proliferation, through the Group.
Key drivers and developments
Financial crime risks continue evolving globally, with the Group facing stringent regulatory and supervisory requirements. The Group is committed to protecting financial system integrity, safeguarding customers, and combating financial crime through ongoing investments in expertise, tools and systems.
Georgia and Armenia's geographical location and regional geopolitical context necessitate an elevated focus on sanctions compliance for financial institutions. This proximity increases the potential for sanctioned entities to attempt to exploit Georgian and Armenian financial systems to circumvent international restrictions. Consequently, Group Companies have strengthened compliance frameworks and enhanced due diligence measures to proactively identify, manage and mitigate these risks.
Mitigation
Governance: Within Group Companies, the second line of defence, comprising risk management units, develops policies, standards, guidelines and compliance systems; monitors sanctions evasion and money laundering/terrorist financing (ML/TF) risks; and oversees related risk management processes. Within each principal subsidiary, the Anti-money Laundering (AML) and Sanctions Compliance department includes a dedicated assurance unit responsible for regularly assessing the effectiveness of the bank-wide controls. The third line of defence - Internal Audit functions - independently assesses AML and sanctions compliance to ensure regulatory adherence and safeguard financial integrity.
Bank of Georgia has also established an AML/Sanctions Compliance Committee to provide ongoing oversight of ML, TF and sanctions risks.
Tax risk is managed by dedicated tax functions across Group Companies. Lion Finance Group PLC has adopted a Tax Strategy applicable to itself and its UK subsidiaries, with its principles consistently applied throughout the Group.
Risk appetite: The Group operates a comprehensive financial crime risk management programme designed to prevent its use for criminal and terrorist activities and to protect its reputation.
This programme is operationalised at the subsidiary level through defined risk appetites, which are approved by the respective Supervisory Boards. This ensures that all business units, support functions and subsidiaries assess the impact of their activities on the Group's risk profile and act in line with its established principles.
Monitoring and reporting: Active monitoring and timely reporting of financial crime risks are central to the effectiveness of the programme. Key risk exposures related to AML/CFT and sanctions are reported monthly to Executive Management. Formal reports are also presented quarterly to both the Audit Committee and the Risk Committee, ensuring robust Board-level oversight. These reports utilise both quantitative and qualitative dashboards to track the effectiveness of controls and inform timely risk mitigation actions.
Anti-money laundering: Group Companies maintain risk-based AML/CFT frameworks aligned with local and relevant foreign legislation, incorporating international standards and recommendations set by the Financial Action Task Force and other relevant global bodies.
The Group has deployed significant resources to enhance its ML/TF risk management capabilities, including the use of advanced analytics and transaction monitoring tools, as well as enhancements to offline reporting mechanisms. The reporting processes for Cash Transaction Reports and Suspicious Transaction Reports are fully automated.
Mandatory employee training programmes have been intensified to improve awareness and understanding of AML/CFT obligations. AML risk appetite metrics are closely monitored and regularly reviewed within Group Companies to ensure alignment with their defined risk tolerance.
Bribery and corruption: The Group is committed to preventing bribery and corruption through robust policies, processes and controls, maintaining a zero-tolerance approach to non-compliance with its ABCF policies. Beyond ABCF compliance, the Group also follows a Code of Conduct and Ethics, serving as an employee reference. To uphold these standards, Group Companies ensure that all employees complete mandatory training on Anti-Bribery and Corruption. As a minimum requirement across the Group, this training is completed during the employee onboarding process, establishing a baseline of understanding and accountability from the outset of employment. At Bank of Georgia, this framework is further strengthened by biennial refresher training, which includes a comprehension test and a signed acknowledgment to reinforce accountability.
Sanctions compliance: The Group maintains comprehensive policies, procedures and risk mitigation measures to comply with international sanctions frameworks enforced by key jurisdictions and bodies such as the US Office of Foreign Assets Control (OFAC), the EU, the UK (HM Treasury) and UN Security Council. These protocols undergo routine evaluations to ensure alignment with current sanctions regimes. The Group upholds a stringent zero-tolerance policy towards sanctioned individuals, transactions and funds associated with sanctioned entities, and any clients or transactions connected to the Russian military-industrial base.
The Group has enhanced due diligence processes to address rapidly evolving sanctions regimes, strengthening transaction screening, monitoring, onboarding and documentation review. The Group's technology-driven approach includes an online solution that fully automates the screening of all transactions against sanctions lists from OFAC, the EU, the UK, the UN and other global databases.
The Group continues to strengthen its AML/CFT control framework by enhancing its sanctions screening capabilities, supporting the effectiveness of its broader financial crime prevention efforts.
Due diligence: The Group continuously improves customer due diligence and transaction monitoring, encompassing risk-based scenario monitoring, alert handling and suspicious activity reporting. Group-wide AML/CFT and sanctions risk assessments evaluate inherent risk, control effectiveness and residual risk. Automated customer risk assessment ensures comprehensive risk management throughout the business relationship lifecycle. Group Companies conduct rigorous, periodic due diligence on their existing client base. During onboarding, detailed information on corporate clients' ownership structures, ultimate beneficial owners, and sources of funds and wealth is gathered.
High-risk clients, including politically exposed persons and virtual asset service providers, those subject to adverse media coverage or performing unusual or cryptocurrency-related transactions, or those living and working in countries or sectors with an inherently higher risk of financial crime, undergo enhanced due diligence. To mitigate risks associated with cryptocurrency, the Group has restricted international transactions involving virtual assets or virtual asset service providers.
Fraud risk: To mitigate fraud risk, the Group implements:
· Know Your Employee procedures, including screening requirements at recruitment, employment and departure stages, providing a clear understanding of an employee's background and actual or potential conflicts of interest.
· Mandatory training for all new employees to increase awareness.
· Communication channels informing customers about fraud risks.
Information security and data protection risks
Information security risk is the risk of loss of confidentiality, integrity, and/or availability of information, data, and/ or information systems. Data protection risk is the risk of failure to process personal data lawfully, fairly, transparently, and securely. This includes risks associated with unauthorised access, accidental or unlawful destruction, loss, alteration, or disclosure of personal data, as well as risks arising from the use of emerging technologies and third-party service providers. Both risks may lead to financial loss, regulatory sanctions, litigation, reputational damage, or other significant adverse economic or social impacts.
Key drivers and developments
Information security risks are a growing global threat, particularly for the financial services sector. Successful attacks could impact the Group's customers, employees, subsidiaries, and partners. Potential negative impacts include data breaches, financial losses, regulatory penalties and reputational damage.
Malicious actors focus on:
· Zero-day attacks exploiting previously unknown vulnerabilities.
· Sophisticated brand impersonation attacks.
· Targeting systems where the Group lacks direct cybersecurity control (customer and third-party systems).
· Employee non-compliance with policies, procedures and technical controls.
Due to Bank of Georgia's role as part of Georgia's critical infrastructure and Ameriabank's leading position in Armenia, attacks could have national-level impacts. The Group's relationships with international customers and partners mean these risks could extend beyond Georgia and Armenia, resulting in regulatory and contractual liabilities, reputational damage and financial losses. Positively, the Group's robust practices protect customers' rights and build trust, contributing to greater financial inclusion and digital security.
Group Companies successfully completed their ISO 27001 certification journey (an international standard for information security management) and acquired the certificate in 2025 and successfully passed surveillance audit in 2026, demonstrating their strong commitment to robust information security management practices.
Data protection continues to be driven by increasing digitalisation, growing customer expectations regarding privacy and transparency, and an evolving legal and regulatory environment. During the reporting period, Group Companies continued to enhance their privacy governance frameworks in response to:
· increasing regulatory expectations and supervisory scrutiny regarding accountability and governance of personal data processing;
· expanding use of digital channels and technologies, resulting in larger volumes of personal data processing;
· increasing reliance on third-party service providers and cross-border data processing arrangements;
· emerging risks associated with Artificial Intelligence (AI), including transparency, fairness, explainability, and the use of personal data in AI-enabled solutions; and
· evolving cyber threats that could result in personal data breaches and associated regulatory obligations.
The Group considers the effective protection of personal data fundamental to maintaining customer trust, protecting individuals' rights, and supporting sustainable digital transformation and responsible innovation.
Mitigation
Governance: Within Group Companies, Information Security functions serve as the first line of defence. They adhere to internal policies and procedures, conducting routine risk assessments, vulnerability scans and penetration tests to identify system and infrastructure vulnerabilities. This work prevents unauthorised access and enables real-time monitoring for prompt detection and response to security incidents. The Risk functions act as the second line of defence applying a common approach across the Group structured around the identification, analysis, evaluation, treatment, monitoring and reporting of information security risks. At Bank of Georgia, this includes assessing the design and operational effectiveness of security controls; at Ameriabank, this is delivered through the IT and Information Security Risk Management Program, with particular emphasis on monitoring, reassessment and reporting. Risk units provide oversight, guidance and support to business units, ensuring information security risks are effectively identified, assessed and managed, and monitoring compliance with internal policies and external regulations.
The Group's privacy management framework is designed to comply with applicable data protection laws and regulations in the jurisdictions in which Group entities operate, including the Georgian Law on Personal Data Protection, the Law of the Republic of Armenia on Personal Data Protection and, where applicable, the EU General Data Protection Regulation (GDPR). The framework is based on a risk-based approach to the management of personal data processing activities, enabling the Group to identify, assess and mitigate privacy risks while supporting the responsible processing of personal data.
Data protection governance is driven from the highest levels across the Group, with established processes for ensuring Board-level oversight. While the principle is consistent, the specific reporting structures are tailored to each subsidiary's governance model. At Bank of Georgia, this involves dedicated quarterly reporting to the Audit Committee and a comprehensive annual review of the privacy programme by the Supervisory Board. At Ameriabank, oversight is achieved through quarterly reports to the respective Supervisory Board as part of the broader IT and Information Security risk overview.
The day-to-day responsibility for implementing privacy policies is also clearly defined within each Group Company. Bank of Georgia employs a distinct three lines of defence model, where business units act as the first line, supported by a specialised Privacy Office, led by the Data Protection Officer (DPO), which functions as the second line. At Ameriabank, these responsibilities are collectively managed by the Information Security, Technical Security and Legal departments, which oversee the implementation and updating of privacy policies.
Risk appetite: Information security risk is measured against predefined risk appetite metrics and thresholds to minimise data and security breach exposure. Risk profiles are monitored monthly against appetite and reported to local Executive Management on at least a quarterly basis, and quarterly to Supervisory Boards.
Monitoring and reporting: Internal Audit functions provide risk-based independent assurance on risk management adequacy and effectiveness. Information security appears regularly on Risk Committee agendas, and Group Companies engage external parties for regular cybersecurity audits and penetration tests.
Zero-day attacks: Group Companies monitor zero-day vulnerability announcements affecting their systems, addressing them promptly when detected. They employ a "defence in depth" approach with multiple complementary security layers that activate when others fail. Bank of Georgia has a dedicated team for threat intelligence sharing and building external relationships. As a member of the Financial Services Information Sharing and Analysis Centre, it accesses a threat intelligence platform and a trusted network of experts to anticipate and respond to threats, strengthening its cybersecurity posture and reflecting a proactive approach to managing risks.
Customer-targeted phishing: Malicious actors may carry out successful customer-targeted phishing attacks through fake websites, social networks, emails and other channels. Group Companies enhance information security controls to detect unauthorised account access and run awareness campaigns helping customers and the public recognise and respond to phishing attempts.
Supply chain cyber attack: Group Companies perform third-party provider due diligence, ensuring security and data protection controls before engagement and conducting annual compliance monitoring. Exit procedures protect information confidentiality, integrity and availability.
Employee policy adherence: Annual mandatory information security training for all employees includes tailored remote work security courses. Group Companies conduct quarterly phishing campaigns testing employee detection and response capabilities.
Access management: Group Companies implement role-based access control, automating employee onboarding and rotation processes while restricting network access based on least privilege principles. Semi-annual privileged user evaluations and annual access rights reviews occur in each department. Third parties receive privileged access only with justified business needs, requiring multi-factor authentication and privileged access management monitoring.
Information security incident response: To mitigate key risks, Group Companies have aligned their incident response plans with industry standards - following the National Institute of Standards and Technology (NIST) Computer Security Incident Handling Guide. Group Companies have strengthened their defences with vandal-resistant backup storage to protect core database backups from internal and external threats.
Annually, Bank of Georgia and Ameriabank each undergo at least ten security assessments to evaluate actions and manage risks, including:
· Penetration testing
· Breach and attack simulation
· Distributed denial-of-service (DDoS) attack simulation
· Self-assessments
· Internal and external audits
These assessments give insight into how effectively the policies and processes have been implemented.
Personal data protection: Group Companies have responded to changes in respective jurisdictions by implementing enhanced data protection measures, including policy updates, process reviews, training programmes and customer communication. During the reporting period, Group Companies continued to strengthen their privacy governance frameworks and enhance organisational awareness of data protection obligations. Ongoing investment in privacy governance, employee awareness, and responsible technology practices contributes to reducing data protection risks and supporting the long-term trust of customers, employees, shareholders, and regulators.
Operational risk
Operational risk is the risk of financial and/or non-financial loss from inadequate and/or failed internal processes, people, systems, or from external events. This includes human capital risk: the potential for ineffective human capital policies or processes to cause operational disruption, financial loss and reputational damage, and hinder the delivery of strategic objectives.
Operational losses may result from:
· Internal fraud
· External fraud
· Business disruption and system failures
· Employment practices and workplace safety
· Clients, products and business practices
· Physical asset damage
· Execution, delivery and process management
· Third party risks
Key drivers and developments
Rapidly evolving customer expectations and technological advancement continue to reshape banking business models, introducing new and increasingly complex operational risks. The rapid pace of change and the need for innovation demand new technologies and careful management of technology deployment. Artificial intelligence in particular, and its accelerating adoption across the financial services sector, gives rise to heightened exposure to automated errors that may be difficult to detect and costly to remediate. The Group recognises the importance of establishing robust AI governance frameworks and appropriate human oversight mechanisms in line with the pace of deployment.
As the digitisation of core business processes accelerates, operational resilience has become increasingly critical. Significant disruptions to vital services can cause material financial loss, reputational damage and business continuity threats. The increasing use of AI across the financial services sector introduces new dimensions of risk, with AI-assisted cyberattacks - including advanced phishing and automated vulnerability exploitation - presenting evolving threats to operational stability. As business processes become increasingly automated and interconnected, the potential for disruptions to propagate rapidly across critical systems has increased. Dependencies on third-party technology providers and outsourced services represent an additional source of vulnerability within this environment. Operational resilience will continue to gain importance as technology increasingly shapes financial service provision.
Employees remain crucial to the Group's success, supporting innovation and growth. To bolster digital capabilities and AI-driven decision-making, the Group prioritises attracting and retaining skilled talent and developing leaders for succession planning.
Mitigation
Governance: For Group Companies, the first line of defence consists of structural units responsible for identifying and assessing operational risks and establishing appropriate controls to mitigate them. Operational risk management units form the second line of defence, providing oversight and risk guidance. Internal Audit functions serve as the third line, independently assessing operational risk and events in business processes.
Human Capital Management functions within Group Companies develop policies and frameworks for risk management and legal compliance, monitoring and reporting human capital risks to the respective Executive Management and Supervisory Boards as well as to the Group's Board of Directors.
Risk appetite: Group Companies have established operational risk appetites. Bank of Georgia also has a Supervisory Board-approved human capital risk appetite at the bank level. Risk profiles are monitored against these appetites and reported to local Executive Management on at least a quarterly basis, and quarterly to the respective Supervisory Boards.
Monitoring and reporting:
Group Companies monitor operational risks on an ongoing basis using a range of quantitative and qualitative indicators, including operational loss data, which is captured and analysed to identify trends and patterns in operational risk exposures; risk and control self-assessments (RCSAs), through which risks are proactively identified and associated controls are evaluated; key risk indicators (KRIs), which provide early warning signals of emerging or elevated risk exposures; new product and change assessments, which evaluate potential operational risks associated with new products, services, and significant business changes prior to implementation; and third-party risk assessments, which support the identification and oversight of risks arising from vendor and outsourced service provider relationships. Regular standalone reports are provided to senior management and relevant governance bodies to support oversight of the operational risk profile, facilitate the timely escalation of material incidents and emerging risks, and assess compliance with the risk appetite and tolerance framework.
Group Companies implement policies, procedures, and frameworks to anticipate, mitigate, control, and communicate operational risks and assess internal control effectiveness. Operational risk management units maintain these frameworks and policies, which are reviewed and approved by relevant governance bodies to ensure alignment with recognised industry standards.
The following programmes and processes form the core of the operational risk management framework:
· Risk and control self-assessment (RCSA) - identifies and assesses operational risks in business processes and products, providing a structured view of risk and control environment across the Group. RCSA programme supports proactive risk management by facilitating the early identification of emerging risks and control weaknesses before they materialise into operational losses, ensuring that the Group's risk profile remains within defined appetite and tolerance boundaries.
· New product and change assessment - identifies and assesses potential operational risks associated with new products, services, systems and significant business or operational changes prior to implementation. By embedding risk assessment into the design and approval process, the programme ensures that operational risks are considered and addressed before new products or changes are introduced, with recommendations for risk mitigation incorporated into the product design and change management phases. This proactive approach supports reduction of operational disruption arising from inadequately assessed or poorly implemented change.
· Third-party risk management - identifies and manages risks arising from third-party and outsourcing arrangements through risk-based vendor onboarding and due diligence, regular risk assessment and monitoring, and enhanced oversight of critical service providers, including business continuity and disaster recovery coverage.
· Incident management, monitoring and reporting - operational risk incidents and near misses are identified, assessed, and remediated through a structured incident management process. Upon identification, incidents are classified, escalated in accordance with defined severity thresholds, and subject to root-cause analysis to determine the underlying drivers of failure and prevent recurrence. The findings of root-cause analysis drive targeted remediation actions and, where relevant, broader enhancements to controls and processes. Regular reporting by the Risk function to senior management and relevant governance bodies supports oversight of the operational risk profile against the risk appetite and tolerance framework.
· Operational resilience - the Group maintains a dedicated operational resilience framework designed to ensure that critical business services can withstand, adapt to, and recover from severe but plausible disruption scenarios. The framework encompasses the identification of critical business services, the assessment of potential impacts arising from their disruption, and the establishment of recovery objectives to ensure timely restoration of services. Resilience arrangements are tested regularly against a range of disruption scenarios, with outcomes reviewed by senior management and used to drive the continuous enhancement of the Group's resilience capabilities.
· Risk awareness and training programmes, including awareness campaigns and mandatory training - to help employees identify existing and potential risks.
Within this broad category, a dedicated focus is placed on human capital risk. This is monitored through its own set of quantitative and qualitative indicators, including employee interviews, eNPS, engagement scores, internal mobility, and retention and employee turnover measures. The results of different surveys and measures are used to design action plans.
To manage human capital risk, the Group employs a multi-faceted strategy focused on talent acquisition, leadership development, competitive compensation, and transparent employee relations.
· Talent acquisition and early career development: The Group actively engages with universities and communities to attract new talent, holding recruitment events across Georgia and Armenia. This is complemented by flagship internship programmes designed to build a strong talent pipeline providing young talents with project experience, mentorship, and clear career paths, achieving high post-internship hire rates.
· Succession planning and internal growth: A strong emphasis is placed on developing leaders from within, which is reflected in high internal mobility rates that are filling open roles. The Group invests in a robust leadership pipeline through tailored development initiatives, including individual coaching, high-potential talent programmes, and an MBA Sponsorship Programme. Formal succession planning is in place for critical executive roles, ensuring leadership continuity. Employee development is further supported by a performance management framework that includes 360° evaluations and annual development plans.
· Compensation, benefits, and work-life balance: Compensation is designed to be competitive and fair, using market data and standardised grading systems to ensure position-based pay. The employee value proposition is enhanced by comprehensive benefits that support wellbeing and work-life balance. These include fully or partially funded health insurance for employees and their families, additional paid leave, extensive paid parental leave, and hybrid working arrangements for most back-office employees.
· Transparent communication and grievance mechanisms: The Group fosters a culture of open dialogue through "Employee Voice" meetings, which provide a direct channel for employees to share ideas and concerns with the Board. This is supported by formal and confidential grievance policies and independent reporting tools, all underpinned by a strict no-retaliation policy to ensure prompt and fair issue resolution.
· Technology capability and AI literacy: The Group runs dedicated learning initiatives, establishing foundational digital fluency and progressively developing employees' AI capabilities. These programmes support four objectives: maintaining productivity relative to AI-augmented peers and competitors; strengthening human oversight of AI-generated outputs; enabling employees to critically evaluate automated tools and their limitations; and supporting workforce adaptation as roles are redesigned around new technologies.
Model risk
Model risk arises from decisions based on incorrect model results due to inaccurate assumptions, inappropriate variables, low-quality data, or inadequacies in model design, implementation or usage.
Key drivers and developments
As banking operations become more complex and digital, the adoption of statistical models, machine learning and artificial intelligence enhances decision-making and provides competitive intelligence. To sustain these benefits, sound model risk assessment frameworks and validation practices are essential.
The NBG's regulation - Managing Risks for Data-based Statistical, Artificial Intelligence and Machine Learning Models - sets additional requirements for model development, validation, monitoring and application. The regulation requires that all relevant new and existing models be in line with regulatory requirements.
Given the increasing use of AI-driven models at Bank of Georgia, particular attention is paid to the oversight and mitigation of AI-related risks. To ensure effective oversight of AI, Bank of Georgia maintains internal policies and procedures governing AI usage, which outline clear guidelines for model development, validation, implementation, monitoring and compliance with regulatory standards.
Since 2025, Bank of Georgia has been expanding its use of artificial intelligence by beginning to implement generative AI and Large Language Models (LLMs). The introduction of these advanced models is conducted under the Bank's robust model risk management framework. This ensures that each model undergoes thorough validation and is subject to stringent controls, in full compliance with the established principles. While the current framework provides a solid foundation, the Bank is working on its further enhancement to specifically address the unique characteristics and risks of generative models.
The CBA's regulation regarding model risk management requires banks to have procedures and processes covering the full lifecycle of internal models, including evaluation, development, validation, approval, performance monitoring and adjustments, as needed.
Mitigation
Group Companies have their Model Risk Management Frameworks (MRM) continuously reviewed and refined to address key model risks effectively. The MRM Policies outline:
· Three lines of defence: A clear segregation of roles and responsibilities throughout the model lifecycle and model inventory governance among model owners (first line), an independent MRM function (second line) and Internal Audit (third line).
· Key controls: Standards covering model development, documentation, validation, monitoring, revalidation, backtesting, as well as comprehensive model risk assessment and reporting. They also encompass the critical areas of model inventory management and data integrity, with the specific implementation and level of centralisation tailored to each subsidiary's current operational model.
In 2023, Bank of Georgia enhanced its MRM framework in collaboration with McKinsey & Company, aligning it with industry best practices and evolving regulatory requirements.
Governance: Within Group Companies, model owners within the first line of defence are responsible for the development, implementation, operation and contribution to model monitoring.
The second line of defence - independent from the units that develop or use the models - is responsible for model validation, performance oversight, independent challenge of model adequacy and ensuring compliance with regulatory requirements.
Clearly defined roles and the existence of independent validation functions within Group Companies ensure effective risk mitigation.
Monitoring and reporting: Material model-related issues within Group Companies are subject to a robust oversight process, requiring approval from the respective Chief Risk Officers (CROs) before being reported to the Supervisory Boards.
Group Companies conduct continuous monitoring of model performance. At Bank of Georgia, this involves a systematic collection of performance metrics within a centralised monitoring system. The health of the models is ensured with model owners overseeing performance and model validators supervising the process, which includes regular reviews and escalation as needed.
Model risk mitigation: Group Companies employ similar strategies for model risk mitigation:
· Model redevelopment: Models are refined or redeveloped in response to changes in market conditions, business assumptions or processes, to maintain accuracy and relevance.
· Adjustments to model outputs: Adjustments, including expert-opinion-based revisions or the application of new restrictions, are made to improve model accuracy and address biases or limitations.
· Process enhancements: Additional controls or validation measures are introduced to further reduce model risk.
Strategic risk
Strategic risk is the risk that the Group will be unable to execute its business strategy and create stakeholder value due to poor decision making, ineffective resource allocation, and/or a delayed and/or ineffective response to changes in the external environment.
Key drivers and developments
The Group faces strategic risks from changes in legal, regulatory, macroeconomic and competitive environments. Economic uncertainty, the rise of global fintech, and increased competition in financial services have altered stakeholder expectations, necessitating forward-looking strategic risk management.
The Group's 2024 expansion into Armenia through its subsidiary Ameriabank added a new geographic dimension to its operational footprint. This diversification introduces additional risks that require proactive monitoring and mitigation. Managing the Group across two diversified markets is strategically more complex and requires active involvement from Executive Management to ensure effective coordination across the Group, the realisation of expected synergies, and operational alignment in pursuit of the Group's strategy. Group-level risk management and strategic alignment remain a key focus of the Group's Executive Management and a regular topic of discussion at the Board level.
Mitigation
Strategic planning: The Group's Executive Management runs an annual strategic planning process to review its performance against targets, discuss the internal and external environment affecting the Group's subsidiaries, and develop short- and medium-term strategic plans considering potential financial and non-financial risks. This process is supported by risk appetite framework, capital plans and a recovery plan. The Group's strategy is ultimately approved by the Group's Board of Directors.
Focus on customers and innovation: The Group mitigates strategic risks by incorporating customer feedback in decision-making and scanning global competitive landscape to ensure relevant, innovative products and offerings, addressing current needs while creating foundations for future client growth.
Monitoring: The Group's Executive Management holds regular meetings to discuss the performance of the Group's core subsidiaries, the competitive landscape, and their competitive positions, including any changes versus prior periods and any actions required. Key strategic areas and/or projects are periodically discussed in working groups comprising executive, senior and middle management.
Strategic objectives and/or decisions, including major organisational changes and initiatives, are regularly discussed with and challenged by the Board, including during the quarterly Board meetings and the Board's strategy sessions. The Board receives quarterly updates on market environment and competitive positioning of principal operating entities in Georgia and Armenia and challenges management's tactical or strategic actions.
The Group has a dedicated International Business function with executive responsibility over monitoring and coordination of activities with the operating entities outside of Georgia. The International Business function does not replace or interfere in day-to-day executive management of the Group's subsidiaries, other than as necessary for meeting either legal and regulatory, or internal policy requirements applicable to the Group as a whole or on a consolidated basis.
Reputational risk
Reputational risk is the risk of damage to stakeholder trust and/or brand image due to negative consequences arising from internal actions and/or external events.
Key drivers and developments
The Group's operations face inherent reputational risk, primarily driven by internal execution failures, cyber and phishing case mismanagement, and misalignment between Group values and public perceptions/opinions.
Mitigation
Risk appetite: Group Companies manage reputational risk within a defined risk appetite that is articulated through quantitative measures. The reputational risk profile is subject to quarterly review and oversight by the Supervisory Boards of the respective Group Companies.
Monitoring and reporting: Effective systems and controls ensure high customer service levels and compliance. Material risks at any business level are measured, mitigated and monitored according to Group policies and procedures.
To protect brand strength, marketing/PR teams within Group Companies monitor daily media coverage. Legal teams ensure marketing communications comply with internal policies and review product/ service compliance. Group Companies regularly measure customer satisfaction and perception through internal and external surveys and monitor risk appetite compliance with performance reported to Executive Management on at least a quarterly basis.
Group Companies also engage with customers on information security matters, disseminating content including articles, direct emails, interactive games, and questionnaires through various media. Bank of Georgia and Ameriabank contribute to the development of information security in Georgia and Armenia respectively by regularly participating in collaborative efforts with financial industry peers, law enforcement authorities, regulatory bodies and the governments, sharing knowledge and preventing negative impacts.
To prevent inaccurate or misleading reporting that could damage the Group's reputation, well-documented reporting processes with strong controls ensure fairness and transparency. Oversight from the Board as well as the External Auditor ensures the Group's financial and narrative reporting is trustworthy.
Climate-related risk
The Group has identified climate risk as an emerging risk and continues to assess climate-related risks, both transition and physical, for its client base, and determines potential impacts on the Group.
Climate-related risk is the risk of financial loss and/or damage to the Group's reputation as a result of the accelerating transition to a lower-carbon economy and/or the materialisation of actual physical damage as a result of acute and/or chronic weather events. Transition and physical risks may impact the performance and financial position of the Group's customers and, hence, their ability to repay loans.
Key drivers and developments
The Group's stakeholders, including investors and lenders, are increasingly demanding more climate-related disclosures - including climate risk assessments and GHG emissions reporting - as well as actions to address climate-related risks.
The Group is subject to climate reporting obligations under both the UK Financial Conduct Authority's Listing Rules and Sections 414CA and 414 CB of the UK Companies Act 2006.
In 2020, the Group identified climate change as an emerging risk and incorporated it into its risk inventory. Since then, significant progress has been made in developing the management framework for this risk. Notably, the Group has developed a climate scenario analysis toolkit to model the impact of climate risks on its credit portfolio and has continued to strengthen climate-related considerations within its credit risk management processes.
Both Georgia and Armenia have submitted their Nationally Determined Contributions (NDC) as part of the Paris Agreement. In April 2026, Georgia updated its NDC, committing to limit total net greenhouse gas emissions by 47% below 1990 levels by 2030, with an enhanced target of 50% below 1990 levels by 2035. Armenia targets a 40% reduction by 2030, using the same 1990 baseline. Georgia has also adopted a long-term low-emission development strategy, identifying carbon neutrality by 2050 as a key long-term objective. The updated NDC strengthens the country's mitigation ambition and establishes its medium-term climate commitments through 2035.
In March 2025, the National Bank of Georgia (NBG) launched the second phase of its Sustainable Finance Roadmap (2025-2028), introducing several updates to the country's sustainable finance framework. Bank of Georgia has already implemented a number of the roadmap's initiatives and continues to align its practices with the planned measures to support their full implementation by 2028.
Mitigation
Governance: The Group's Board of Directors has ultimate responsibility for overseeing climate-related risks and opportunities and ensuring their integration into the strategy and risk management of the Group Companies. Since 2022, the Board and its committees - including the Risk, Audit, Remuneration and Nomination Committees - have regularly reviewed climate-related issues, ensuring ongoing and effective oversight.
The Environmental and Social Impact (ESI) Committee at Bank of Georgia, comprising executive and senior management, is responsible for overseeing the Bank's climate, environmental and social impacts - focusing mainly on those arising from its lending activities. It holds overall responsibility for designing climate, environmental and social strategies and policies, and setting and monitoring targets. The final responsibility for decisions made by the ESI Committee rests with the Supervisory Board.
In 2025, Ameriabank initiated the development of a dedicated Sustainability and Climate Competence (SCC) function, which is expected to become fully operational by the end of 2026. The SCC function will support the identification, assessment, and monitoring of sustainability and climate-related risks and opportunities, while strengthening sustainability governance, strategic decision-making, and disclosure processes.
Centralised teams of Environmental, Social and Climate Risk specialists within Group Companies' Risk functions are responsible for:
· Conducting research on climate, environmental, and social-related matters (policies, risk mitigation and assessment methods, etc.)
· Implementing and updating environmental and social policies, procedures and methods.
· Identifying, assessing, managing and mitigating climate, environmental and social risks for the Group Companies' clients, based on a standardised due diligence process.
· Identifying climate-related opportunities and classifying green loans.
· Calculating financed emissions and supporting other departments to implement environmental and climate-related tasks.
· Preparing environmental and climate-related disclosures.
Climate-related risks mitigation: Group Companies have adopted the following mitigating activities for climate-related risk management framework:
· Identifying and addressing sector and location-specific climate risks for business clients, as part of loan appraisal and origination processes, as well as the environmental and social risk management process.
· Expanding our climate scenario analysis toolkit and deepening our knowledge of climate change and climate policy in Georgia and Armenia and the global implications.
· Assessing the materiality of climate risks on the banks' portfolios against selected climate change scenarios; developing a climate risk stress-testing framework and conducting high-level climate stress-testing to assess potential climate-related vulnerabilities across the portfolio and to support the bank's understanding of climate risks.
· Facilitating climate-related disclosure.
· Raising climate finance awareness among clients and implementing training for employees.
Moreover, Bank of Georgia has integrated climate-related risks into its risk management framework and business resilience assessments. Its mitigating activities also include:
· Collecting relevant data, including on output produced and energy consumed, and calculating Scope 3 financed emissions for some GHG-intensive corporate clients.
· Identifying and reporting on transactions aligned with the NBG's Green Taxonomy (from January 2023).
· Developing sectoral E&S policies to address specific high-risk industries which may have high adverse impact on people and/or the environment. Bank of Georgia is committed to working closely with clients, especially those in high-emission industries, to support their shift towards sustainable practices by tackling issues like data limitations, technical capacity and access to funding.
Ameriabank contributes to a sustainable economy through three core activities: implementing robust Environmental and Social (E&S) risk management processes for clients in line with IFI standards; ensuring transparency through public reporting; and financing a dedicated portfolio of green assets.
Historically, Ameriabank applied its Green Bond Framework to identify and assess green loans in accordance with international standards. Following the adoption of the Group Green Finance Framework (GFF), this now serves as the primary basis for identifying and reporting green financing activities.
In 2025, Armenia introduced a national green taxonomy, which is not yet mandatory for financial institutions. The GFF will be updated to reflect this taxonomy and related legislative developments, ensuring continued regulatory alignment, transparency and consistency across the Group.
Statement of directors' responsibilities
We, the Directors, confirm that to the best of our knowledge:
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The interim condensed consolidated financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the UK's Financial Conduct Authority and the International Accounting Standard 34 "Interim Financial Reporting", as issued by the International Accounting Standards Board ("IASB") and as adopted by the United Kingdom and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group; |
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This Results Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and a description of principal risks and uncertainties for the remaining six months of the year); and |
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This Results Report includes a fair review of the information required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein). |
Signed on behalf of the Board by:
Archil Gachechiladze
Chief Executive Officer
10 August 2026
The Board of Directors of Lion Finance Group PLC:
Non-Executive Chairman: Mel Carvill
Executive Director: Archil Gachechiladze
Non-Executive Directors:
Andrew McIntyre
Armen Orujyan
Cecil Quillen
Karine Hirn
Maria Gordon
Mariam Megvinetukhutsesi
Tamaz Georgadze
Véronique McCarroll
Interim Condensed Consolidated Financial Statements
30 June 2026
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
CONTENTS
INDEPENDENT REVIEW REPORT
Interim consolidated statement of financial position........................................................................................................................ 38
Interim consolidated income statement............................................................................................................................................... 39
Interim consolidated statement of comprehensive income.............................................................................................................. 40
Interim consolidated statement of changes in equity ....................................................................................................................... 41
Interim consolidated statement of cash flows .................................................................................................................................... 42
SELECTED EXPLANATORY NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3. Material accounting policy information
4. Significant accounting judgements and estimates
7. Amounts due from credit institutions
8. Investment securities and investment securities pledged under sale and repurchase agreements and securities lending
9. Loans to customers, factoring and finance lease receivables
11. Other assets, prepayments and other liabilities
13. Amounts owed to credit institutions
15. Accruals and contract liabilities
16. Commitments and contingencies
19. Net fee and commission income
24. Maturity analysis of financial assets and liabilities
Independent review report to Lion Finance Group Plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Lion Finance Group Plc's condensed consolidated interim financial statements (the "interim financial statements") in the 2Q26 and 1H26 results of Lion Finance Group Plc for the 6 month period ended 30 June 2026 (the "period").
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The interim condensed consolidated financial statements comprise:
● the Interim Consolidated Statement of Financial Position as at 30 June 2026;
● the Interim Consolidated Income Statement and Interim Consolidated Statement of Comprehensive Income for the period then ended;
● the Interim Consolidated Statement of Cash Flows for the period then ended;
● the Interim Consolidated Statement of Changes in Equity for the period then ended; and
● the explanatory notes to the interim financial statements.
The interim financial statements included in the 2Q26 and 1H26 of Lion Finance Group Plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the 2Q26 and 1H26 and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The 2Q26 and 1H26 results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the 2Q26 and 1H26 in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the 2Q26 and 1H26, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial statements in the 2Q26 and 1H26 based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.
Use of this report
This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
10 August 2026
|
|
|
|
As at |
||
|
|
Notes |
|
30 June 2026 (unaudited) |
|
31 December 2025 (reclassified) |
|
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
6 |
|
5,046,754 |
|
4,572,046 |
|
Amounts due from credit institutions |
7 |
|
3,777,016 |
|
3,552,257 |
|
Investment securities |
8 |
|
9,737,554 |
|
10,047,237 |
|
Investment securities measured at amortised cost |
|
|
3,220,336 |
|
3,254,349 |
|
Investment securities measured at fair value through other comprehensive income |
|
|
6,326,687 |
|
6,640,584 |
|
Investment securities measuered at fair value through profit or loss |
|
|
190,531 |
|
152,304 |
|
Investment securities pledged under sale and repurchase agreements and securities lending |
8 |
|
320,654 |
|
147,416 |
|
Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost |
|
|
320,654 |
|
147,416 |
|
Loans to customers, factoring and finance lease receivables |
9 |
|
44,429,043 |
|
40,065,664 |
|
Prepayments |
11 |
|
160,538 |
|
200,767 |
|
Foreclosed Assets |
|
|
405,131 |
|
374,659 |
|
Right-of-use assets |
|
|
327,471 |
|
332,630 |
|
Investment properties |
|
|
98,261 |
|
107,573 |
|
Property and equipment |
|
|
622,402 |
|
616,839 |
|
Assets held for sale |
|
|
9,752 |
|
15,644 |
|
Intangible assets |
|
|
402,750 |
|
376,402 |
|
Income tax assets |
10 |
|
55 |
|
41 |
|
Other assets* |
11 |
|
447,670 |
|
419,428 |
|
Goodwill |
|
|
35,488 |
|
41,253 |
|
Total assets |
|
|
65,820,539 |
|
60,869,856 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
Client deposits and notes |
12 |
|
43,664,753 |
|
38,629,974 |
|
Amounts owed to credit institutions |
13 |
|
7,372,045 |
|
9,499,106 |
|
Debt securities issued |
14 |
|
4,176,271 |
|
2,999,871 |
|
Lease liability |
|
|
359,831 |
|
348,114 |
|
Accruals and contract liabilties |
15 |
|
239,749 |
|
301,067 |
|
Income tax liabilities |
10 |
|
165,531 |
|
108,805 |
|
Other liabilities |
11 |
|
450,431 |
|
560,676 |
|
Total liabilities |
|
|
56,428,611 |
|
52,447,613 |
|
|
|
|
|
|
|
|
Equity |
17 |
|
|
|
|
|
Share capital |
|
|
1,419 |
|
1,431 |
|
Additional paid-in capital |
|
|
613,014 |
|
569,887 |
|
Treasury shares |
|
|
(18) |
|
(31) |
|
Capital redemption reserve |
|
|
199 |
|
187 |
|
Other reserves |
|
|
165,355 |
|
72,048 |
|
Retained earnings |
|
|
8,609,880 |
|
7,776,662 |
|
Total equity attributable to shareholders of the Parent |
|
|
9,389,849 |
|
8,420,184 |
|
Non-controlling interests |
|
|
2,079 |
|
2,059 |
|
Total equity |
|
|
9,391,928 |
|
8,422,243 |
|
Total liabilities and equity |
|
|
65,820,539 |
|
60,869,856 |
The financial statements on page 38 to 87 were approved for issue by the Board of Directors on 10 August 2026 and signed on its behalf by:
Archil Gachechiladze
Chief Executive Officer
Lion Finance Group PLC
Registered No. 10917019
*To improve the quality and understandability of its consolidated statement of financial position, the Group has revised the presentation of accounts receivable and other loans and other assets. Amounts previously reported as accounts receivable and other loans have been reclassified and are now presented within other assets. Further details are disclosed in Note 3.
|
|
|
|
For the six months ended |
||
|
|
Notes |
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited and reclassified) |
|
|
|
|
|
|
|
|
Interest income calculated using EIR method |
|
|
2,986,250 |
|
2,499,120 |
|
Other interest income |
|
|
40,335 |
|
37,428 |
|
Interest income |
|
|
3,026,585 |
|
2,536,548 |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,317,768) |
|
(1,114,707) |
|
Net interest income* |
18 |
|
1,708,817 |
|
1,421,841 |
|
|
|
|
|
|
|
|
Fee and commission income* |
|
|
647,305 |
|
513,647 |
|
Fee and commission expense* |
|
|
(264,792) |
|
(211,514) |
|
Net fee and commission income* |
19 |
|
382,513 |
|
302,133 |
|
|
|
|
|
|
|
|
Net foreign currency gain |
|
|
296,377 |
|
298,191 |
|
Net gains/(losses) on extinguishment of debt |
|
|
38 |
|
(225) |
|
Regulatory-related expenses* |
3 |
|
(37,590) |
|
(31,600) |
|
Other expenses* |
3 |
|
(4,408) |
|
(3,144) |
|
Net other gains/(losses) |
21 |
|
20,734 |
|
29,587 |
|
|
|
|
|
|
|
|
Net operating income* |
|
|
2,366,481 |
|
2,016,783 |
|
|
|
|
|
|
|
|
Salaries and other employee benefits |
|
|
(513,687) |
|
(453,104) |
|
Administrative expenses* |
|
|
(172,765) |
|
(155,328) |
|
Depreciation, amortisation and impairment |
|
|
(123,884) |
|
(105,260) |
|
Other operating expenses* |
|
|
(5,754) |
|
(6,994) |
|
Operating expenses* |
|
|
(816,090) |
|
(720,686) |
|
|
|
|
|
|
|
|
Profit/(loss) from associates |
|
|
990 |
|
736 |
|
|
|
|
|
|
|
|
Operating income before cost of risk |
|
|
1,551,381 |
|
1,296,833 |
|
|
|
|
|
|
|
|
Expected credit loss on loans to customers and factoring receivables |
20 |
|
(96,932) |
|
(64,669) |
|
Expected credit loss on finance lease receivables |
20 |
|
1,808 |
|
(627) |
|
Other expected credit loss |
20 |
|
(2,461) |
|
(7,100) |
|
Impairment charge on other assets and provisions |
20 |
|
(5,715) |
|
(5,313) |
|
Cost of risk |
|
|
(103,300) |
|
(77,709) |
|
|
|
|
|
|
|
|
Profit before income tax expense |
|
|
1,448,081 |
|
1,219,124 |
|
|
|
|
|
|
|
|
Income tax expense |
10 |
|
(244,288) |
|
(192,813) |
|
|
|
|
|
|
|
|
Profit for the period |
|
|
1,203,793 |
|
1,026,311 |
|
Total profit attributable to: |
|
|
|
|
|
|
- shareholders of the parent |
|
|
1,203,773 |
|
1,024,421 |
|
- non-controlling interests |
|
|
20 |
|
1,890 |
|
|
|
|
1,203,793 |
|
1,026,311 |
|
Basic earnings per share: |
17 |
|
28.24 |
|
23.70 |
|
Diluted earnings per share: |
17 |
|
27.98 |
|
23.44 |
|
|
|
|
|
|
|
*To improve the quality and understandability of its consolidated income statement, the Group has revised the presentation of deposit insurance fee, fee and commission income, fee and commission expense, administrative expenses and other operating expenses. Further details are disclosed in Note 3.
|
|
|
|
For the six months ended |
||
|
|
Notes |
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
|
|
|
|
|
|
|
Profit for the period |
|
|
1,203,793 |
|
1,026,311 |
|
Other comprehensive income/(loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income/(loss) to be reclassified to income statement in subsequent years: |
|
|
|
|
|
|
- Net change in fair value on investments in debt instruments measured at fair value through other comprehensive income (FVOCI) |
8 |
|
75,030 |
|
(59,156) |
|
- Realised gain on financial assets measured at FVOCI |
|
|
(2,918) |
|
(796) |
|
-Change in allowance for expected credit losses on investments in debt instruments measured at FVOCI reclassified to the consolidated income statement |
|
|
(1,193) |
|
(171) |
|
- Gain from foreign currency translation differences |
|
|
34,537 |
|
9,472 |
|
Income tax impact |
10 |
|
128 |
|
(198) |
|
Net other comprehensive income/(loss) to be reclassified to income statement in subsequent years |
|
|
105,584 |
|
(50,849) |
|
|
|
|
|
|
|
|
Other comprehensive gain/(loss) not to be reclassified to income statement in subsequent years: |
|
|
|
|
|
|
- Net gain (loss) on investments in equity instruments designated at FVOCI |
|
|
(569) |
|
6,762 |
|
Net other comprehensive (loss)/income not to be reclassified to income statement in subsequent years |
|
|
(569) |
|
6,762 |
|
|
|
|
|
|
|
|
Other comprehensive income/(loss) for the period |
|
|
105,015 |
|
(44,087) |
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
1,308,808 |
|
982,224 |
|
|
|
|
|
|
|
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
- shareholders of the Parent |
|
|
1,308,788 |
|
980,374 |
|
- non-controlling interests |
|
|
20 |
|
1,850 |
|
|
|
|
1,308,808 |
|
982,224 |
|
|
Attributable to shareholders of the Parent |
|
Non-controlling interests |
|
Total equity |
|||||||||||||||
|
|
Share capital |
|
Additional paid-in capital |
|
Treasury shares |
|
Other reserves |
|
Capital redemption reserve |
|
Retained earnings |
|
Total |
|
|
|
||||
|
31 December 2024 |
1,464 |
|
453,738 |
|
(51) |
|
110,786 |
|
154 |
|
6,422,320 |
|
6,988,411 |
|
26,816 |
|
7,015,227 |
|
||
|
Profit for the six months ended 30 June 2025 (unaudited) |
- |
|
- |
|
- |
|
- |
|
- |
|
1,024,421 |
|
1,024,421 |
|
1,890 |
|
1,026,311 |
|
||
|
Other comprehensive income for the six months ended 30 June 2025 (unaudited) |
- |
|
- |
|
- |
|
(58,208) |
|
- |
|
14,161 |
|
(44,047) |
|
(40) |
|
(44,087) |
|
||
|
Total comprehensive income for the six months ended 30 June 2025 (unaudited) |
- |
|
- |
|
- |
|
(58,208) |
|
- |
|
1,038,582 |
|
980,374 |
|
1,850 |
|
982,224 |
|
||
|
Increase in equity arising from share-based payments |
- |
|
55,451 |
|
28 |
|
- |
|
- |
|
- |
|
55,479 |
|
- |
|
55,479 |
|
||
|
Purchase of treasury shares under share-based payments |
- |
|
(44,773) |
|
(7) |
|
- |
|
- |
|
- |
|
(44,780) |
|
- |
|
(44,780) |
|
||
|
Dividends to shareholders of the Parent (Note 17) |
- |
|
- |
|
- |
|
- |
|
- |
|
(255,331) |
|
(255,331) |
|
- |
|
(255,331) |
|
||
|
Increase in share capital of subsidiaries |
- |
|
- |
|
- |
|
94 |
|
- |
|
- |
|
94 |
|
(94) |
|
- |
|
||
|
Net amount reclassified to retained earnings on sale of equity instruments at FVOCI |
- |
|
- |
|
- |
|
(3,419) |
|
- |
|
3,419 |
|
- |
|
- |
|
- |
|
||
|
Acquisition of non-controlling interests in existing subsidiaries |
- |
|
- |
|
- |
|
(1,811) |
|
- |
|
- |
|
(1,811) |
|
(26,637) |
|
(28,448) |
|
||
|
Purchase of treasury shares |
- |
|
(5,110) |
|
(99,660) |
|
- |
|
- |
|
- |
|
(104,770) |
|
- |
|
(104,770) |
|
||
|
Cancellation of treasury shares |
(19) |
|
18,388 |
|
99,662 |
|
- |
|
19 |
|
(118,050) |
|
- |
|
- |
|
- |
|
||
|
Dividends of subsidiaries to non-controlling shareholders |
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
- |
|
(469) |
|
(469) |
|
||
|
30 June 2025 (unaudited) |
1,445 |
|
477,694 |
|
(28) |
|
47,442 |
|
173 |
|
7,090,940 |
|
7,617,666 |
|
1,466 |
|
7,619,132 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
31 December 2025 |
1,431 |
|
569,887 |
|
(31) |
|
72,048 |
|
187 |
|
7,776,662 |
|
8,420,184 |
|
2,059 |
|
8,422,243 |
|
||
|
Profit for the six months ended 30 June 2026 (unaudited) |
- |
|
- |
|
- |
|
- |
|
- |
|
1,203,773 |
|
1,203,773 |
|
20 |
|
1,203,793 |
|
||
|
Other comprehensive income for the six months ended 30 June 2026 (unaudited) |
- |
|
- |
|
- |
|
93,346 |
|
- |
|
11,669 |
|
105,015 |
|
- |
|
105,015 |
|
||
|
Total comprehensive income for the six months ended 30 June 2026 (unaudited) |
- |
|
- |
|
- |
|
93,346 |
|
- |
|
1,215,442 |
|
1,308,788 |
|
20 |
|
1,308,808 |
|
||
|
Increase in equity arising from share-based payments |
- |
|
98,911 |
|
15 |
|
- |
|
- |
|
- |
|
98,926 |
|
- |
|
98,926 |
|
||
|
Purchase of treasury shares under share-based payments |
- |
|
(56,356) |
|
(3) |
|
- |
|
- |
|
- |
|
(56,359) |
|
- |
|
(56,359) |
|
||
|
Dividends to shareholders of the Parent (Note 17) |
- |
|
- |
|
- |
|
- |
|
- |
|
(248,620) |
|
(248,620) |
|
- |
|
(248,620) |
|
||
|
Purchase of treasury shares |
- |
|
(5,438) |
|
(127,593) |
|
- |
|
- |
|
- |
|
(133,031) |
|
- |
|
(133,031) |
|
||
|
Cancellation of treasury shares |
(12) |
|
6,010 |
|
127,594 |
|
- |
|
12 |
|
(133,604) |
|
- |
|
- |
|
- |
|
||
|
Other movement |
- |
|
- |
|
- |
|
(39) |
|
- |
|
- |
|
(39) |
|
- |
|
(39) |
|
||
|
30 June 2026 (unaudited) |
1,419 |
|
613,014 |
|
(18) |
|
165,355 |
|
199 |
|
8,609,880 |
|
9,389,849 |
|
2,079 |
|
9,391,928 |
|
||
|
|
|
|
For the six months ended |
||
|
|
Notes |
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited and reclassified) |
|
Cash flows from operating activities |
|
|
|
|
|
|
Interest received |
|
|
2,971,149 |
|
2,470,105 |
|
Interest paid* |
|
|
(1,258,479) |
|
(1,010,691) |
|
Fees and commissions received * |
|
|
645,930 |
|
504,173 |
|
Fees and commissions paid* |
|
|
(278,302) |
|
(214,141) |
|
Net cash inflow from real estate |
|
|
3,296 |
|
1,337 |
|
Net realised gain from foreign currencies |
|
|
292,396 |
|
310,711 |
|
Recoveries of loans to customers previously written off |
9 |
|
35,461 |
|
44,220 |
|
Cash received from/(paid for) derivatives |
|
|
- |
|
(129) |
|
Regulatory-related and other expenses paid |
|
|
(41,998) |
|
(34,744) |
|
Other income received |
|
|
11,524 |
|
6,582 |
|
Salaries and other employee benefits paid |
|
|
(488,759) |
|
(501,440) |
|
General and administrative and operating expenses paid* |
|
|
(169,654) |
|
(162,135) |
|
Cash flows from operating activities before changes in operating assets and liabilities |
|
|
1,722,564 |
|
1,413,848 |
|
Net (increase)/decrease in operating assets |
|
|
|
|
|
|
Amounts due from credit institutions |
|
|
(280,386) |
|
38,884 |
|
Investment securities measured at FVTPL |
|
|
(36,935) |
|
(42,050) |
|
Loans to customers, factoring and finance lease receivables |
|
|
(4,844,546) |
|
(3,104,106) |
|
Prepayments and other assets |
|
|
19,091 |
|
(49,386) |
|
Foreclosed assets |
|
|
38,422 |
|
88,171 |
|
|
|
|
|
|
|
|
Net increase/(decrease) in operating liabilities |
|
|
|
|
|
|
Amounts due to credit institutions |
|
|
(2,043,746) |
|
239,588 |
|
Debt securities issued |
|
|
65,825 |
|
160,372 |
|
Client deposits and notes |
|
|
5,259,379 |
|
1,630,962 |
|
Other liabilities |
|
|
(60,995) |
|
29,507 |
|
Net cash flows from operating activities before income tax |
|
|
(161,327) |
|
405,790 |
|
Income tax paid |
|
|
(187,448) |
|
(119,006) |
|
Net cash flows from operating activities |
|
|
(348,775) |
|
286,784 |
|
Cash flows from/(used in) investing activities |
|
|
|
|
|
|
Acquisition of investment securities measured at fair value through other comprehensive income |
|
|
(1,892,653) |
|
(2,771,989) |
|
Proceeds from sale and maturity of investment securities measured at fair value through other comprehensive income |
|
|
2,240,769 |
|
3,104,179 |
|
Acquisition of investment securities carried at amortised cost |
|
|
(1,568,926) |
|
(1,981,318) |
|
Proceeds from sale and maturity of investment securities carried at amortised cost. |
|
|
1,435,241 |
|
1,922,709 |
|
Purchase of investments in subsidiaries, net of cash acquired |
|
|
(15,240) |
|
- |
|
Proceeds from sale of investment properties and assets held for sale |
|
|
14,072 |
|
20,333 |
|
Proceeds from sale of property and equipment and intangible assets |
|
|
3,187 |
|
488 |
|
Purchase of property and equipment* |
3 |
|
(59,721) |
|
(74,639) |
|
Purchase of intangible assets* |
3 |
|
(66,537) |
|
(52,845) |
|
Dividends received |
|
|
1,093 |
|
1,078 |
|
Net cash flows from/(used in) investing activities |
|
|
91,285 |
|
167,996 |
|
Cash flows (used in)/from financing activities |
|
|
|
|
|
|
Eurobonds and notes issued |
14 |
|
799,800 |
|
- |
|
Repayment of the principal portion of the debt securities issued |
14 |
|
(189,141) |
|
(176,465) |
|
Proceeds from Tier 2 notes issued |
14 |
|
23,460 |
|
63,751 |
|
Proceeds from local Additional Tier 1 |
14 |
|
266,471 |
|
- |
|
Proceeds from local bonds issued |
14 |
|
246,016 |
|
195,571 |
|
Cash payments for the principal portion of the lease liability |
|
|
(36,347) |
|
(34,578) |
|
Dividends paid |
|
|
(241,437) |
|
(13,567) |
|
Purchase of treasury shares under share-based payments |
|
|
(56,359) |
|
(44,780) |
|
Purchase of interests in existing subsidiaries |
17 |
|
- |
|
(28,448) |
|
Purchase of treasury shares |
|
|
(133,031) |
|
(104,770) |
|
Net cash (used in)/from financing activities |
|
|
679,432 |
|
(143,286) |
|
Effect of exchange rates changes on cash and cash equivalents |
|
|
6,726 |
|
(42,107) |
|
Effect of expected credit losses on cash and cash equivalents |
|
|
134 |
|
(349) |
|
IFRS 9 amendment - transition effect |
|
|
45,906 |
|
- |
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
474,708 |
|
269,038 |
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of the period |
6 |
|
4,572,046 |
|
3,753,183 |
|
Cash and cash equivalents, end of the period |
6 |
|
5,046,754 |
|
4,022,221 |
*To improve the quality and understandability of its consolidated statement of cash flow, the Group has revised the presentation of interest paid, fees and commissions received, fees and commissions paid, General and administrative and operating expenses paid, purchase of property and equipment and intangible assets. Further details are disclosed in Note 3.
1. Principal activities
Lion Finance Group PLC is a public limited liability company incorporated in England and Wales with registered number 10917019. As at 30 June 2026 Lion Finance Group PLC held 100.00% of the share capital of JSC Bank of Georgia and 90% of Ameriabank CJSC (remaining 10% is consolidated through a put option), representing their ultimate parent company. Ameriabank CJSC was acquired as at 31 March 2024. Together with JSC Bank of Georgia, Ameriabank CJSC and other subsidiaries, the Group makes up a group of companies (the "Group") and provides banking, leasing, brokerage and investment management services to corporate and individual customers. Lion Finance Group PLC is listed on the London Stock Exchange's main market in the Equity Shares (Commercial Companies) category and is a constituent of the FTSE 100 index. Ticker: BGEO, effective 21 May 2018. JSC Bank of Georgia and Ameriabank CJSC are the Group's main operating units and account for most of the Group's activities.
JSC Bank of Georgia was established on 21 October 1994 as a joint stock company ("JSC") under the laws of Georgia. It operates under a general banking licence issued by the National Bank of Georgia ("NBG"; the Central Bank of Georgia) on 15 December 1994.
JSC Bank of Georgia accepts deposits from the public and extends credit, transfers payments in Georgia and internationally, and exchanges currencies. Its main office is in Tbilisi, Georgia. As at 30 June 2026, it has 206 operating outlets in all major cities of Georgia (31 December 2025: 200). JSC Bank of Georgia's registered legal address is 29a Gagarini Street, Tbilisi 0160, Georgia.
Ameriabank CJSC was established on 8 December 1992 under the laws of the Republic of Armenia. Its principal activities are deposit taking and customer account maintenance, lending, issuing guarantees, cash and settlement operations and operations with securities and foreign exchange. The activities of Ameriabank CJSC are regulated by the Central Bank of Armenia (the "CBA").
As at 30 June 2026, Ameriabank CJSC has 30 branches from which it conducts business throughout the Republic of Armenia (31 December 2025: 29). The registered address of the head office is 2 Vazgen Sargsyan Street, Yerevan 0010, Republic of Armenia.
Lion Finance Group's registered legal address is 29 Farm Street, London United Kingdom W1J 5RL.
As at 30 June 2026, 31 December 2025, the following shareholders owned more than 3% of the total outstanding shares of Lion Finance Group PLC. Other shareholders individually owned less than 3% of the outstanding shares.
|
Shareholder |
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
JSC Georgia Capital** |
|
14.86% |
|
16.88% |
|
Dimensional Fund Advisors (DFA) LP |
|
4.67% |
|
4.76% |
|
JP Morgan Asset Management |
|
3.90% |
|
3.92% |
|
BlackRock Investment Management (UK) |
|
3.39% |
|
3.31% |
|
Vanguard Group Inc |
|
2.52% |
|
3.51% |
|
Others |
|
70.66% |
|
67.62% |
|
Total* |
|
100.00% |
|
100.00% |
* For the purposes of calculating percentage of shareholding, the denominator includes total number of issued shares, which includes shares held in the trust for the share-based compensation purposes of the Group.
** JSC Georgia Capital will exercise its voting rights at the Group's general meetings in accordance with the votes cast by all other Group Shareholders, as long as JSC Georgia Capital's percentage holding in Lion Finance Group PLC is greater than 9.9%.
2. Basis of preparation
General
The financial information set out in these interim condensed consolidated financial statements does not constitute Lion Finance Group PLC's statutory financial statements within the meaning of section 434 of the Companies Act 2006. Statutory financial statements were prepared for the year ended 31 December 2025 in conformity with the requirements of the Companies Act 2006 and in accordance with UK-adopted international accounting standards. The auditor's report was unqualified and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
These interim Condensed Consolidated financial statements have been prepared in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority (FCA) and with UK-adopted International Accounting Standard 34 (IAS 34 Interim Financial Reporting).
The preparation of the interim condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported income and expense, assets and liabilities and disclosure of contingencies at the date of the interim condensed consolidated financial statements. Although these estimates and assumptions are based on management's best judgment at the date of the interim condensed consolidated financial statements, actual results may differ from these estimates.
Assumptions and significant estimates other than disclosed in these interim condensed consolidated financial statements are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2025. Income tax expense for the interim period is recognised based on the best estimate of the weighted average annual income tax rate expected for the full financial year.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at and for the year ended 31 December 2025, signed and authorized for release on 24 March 2026.
These interim condensed consolidated financial statements are presented in thousands of Georgian Lari ("GEL"), except per share amounts, which are presented in Georgian Lari, and unless otherwise noted.
The interim condensed consolidated financial statements are unaudited, reviewed by the auditors and their review conclusion is included in the review report.
Going concern
The Board of Directors has made an assessment of the Group's ability to continue as a going concern and is satisfied that it has the resources to continue in business for a period of at least 12 months from the date of approval of the interim condensed consolidated financial statements. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Group's ability to continue as a going concern for the foreseeable future. Therefore, the interim condensed consolidated financial statements continue to be prepared on the going concern basis.
3. Material accounting policy information
Amendments effective from 1 January 2026
The accounting policies and methods of computation applied in the preparation of these interim condensed consolidated financial statements are consistent with those disclosed in the annual consolidated financial statements of the Group as at and for the year ended 31 December 2025., except for the adoption of new amendments effective as of 1 January 2026.
Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments
The amendments apply for the first time in 2026 and
· Clarify that a financial liability is derecognized on the 'settlement date', i.e. when the related obligation is discharged or cancelled or expires or the liability otherwise qualifies for derecognition. They also introduce an accounting policy option to derecognize financial liabilities that are settled through an electronic payment system before settlement date if certain conditions are met;
· Clarify how to assess the contractual cash flow characteristics of financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features;
· Clarify the treatment of non-recourse assets and contractually linked instruments (CLI);
· Require additional disclosures in IFRS 7 for financial assets and liabilities with contractual terms that reference a contingent event (including those that are ESG-linked), and equity instruments classified at fair value through other comprehensive income (FVTOCI).
With respect to the amendments on the derecognition of financial liabilities that are settled through an electronic payment system, the group has performed an assessment of all electronic payment systems used. The group has been derecognizing the financial liability, and the associated cash, at the time of submitting the payment instructions in the systems regardless of whether the settlement was completed. In line with the amendments, the group changed its previous practice and now derecognises the financial liability and the associated cash when the payment has reached the beneficiary, which is when the obligation is discharged.
The effect of initial application of the amendments to the opening balance of financial assets and financial liabilities is presented below:
|
|
31-Dec-25 |
Transition effect |
1-Jan-26 |
|
Cash and cash equivalents |
4,572,046 |
45,906 |
4,617,952 |
|
Client deposits and notes |
38,629,974 |
16,772 |
38,646,746 |
|
Amounts owed to credit institutions |
9,499,106 |
29,134 |
9,528,240 |
In addition, the group has assessed the impact of the Amendments on its financial assets that include environmental, social and governance (ESG)-linked features and other similar contingent features, as well as on non-recourse financing and contractually linked instruments. The amendments in these areas did not have a material impact on the group's consolidated financial statements.
The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.
Reclassifications
To improve the quality and understandability of its interim condensed consolidated financial statements, the Group has reviewed and revised the presentation of certain line items in its condensed consolidated interim financial statements. Changes to the Consolidated Statement of Financial Position are designed to remove non-material balances as a separate financial statement line items that obscured material information presented in the Statement; changes to the Consolidated Income Statement have been made to better present the nature of certain charges and align more with the industry practice, while changes applied to consolidated statement of cash flows to disaggregate transactions by nature to provide more useful information. The changes related to presentation of accounts receivable and other loans (from previously presented separately to currently presented within other assets), deposit insurance fee (from previously presented within net interest income to currently presented within regulatory-related expenses), certain repair and maintenance costs (from previously presented within net fee and commission income to currently presented within administrative expenses), resolution fund contributions (from previously presented within other operating expenses to currently presented within regulatory-related expenses), core banking expenses (from previously presented within other administrative expenses to currently presented within other expenses), purchase of property and equipment and purchase of intangibles assets (from previously presented within purchase of property and equipment and intangible assets to currently presented separately). Comparative amounts have been reclassified in line with the revised presentation. Management believes that these reclassifications provide more reliable and relevant information.
3. Material accounting policy information (continued)
Reclassifications (continued)
The following reclassifications have been made to consolidated statement of financial position as at 31 December 2025 to conform presentation requirements as at 30 June 2026:
|
Consolidated Statement of Financial Position as at 31 December 2025 |
As previously reported |
Reclassification |
As reclassified |
|
Accounts receivable and other loans |
11,470 |
(11,470) |
- |
|
Other assets |
407,958 |
11,470 |
419,428 |
|
Total assets |
60,869,856 |
- |
60,869,856 |
The following reclassifications have been made to period ending 30 June 2025 interim consolidated income statement and statement of cash flows to conform to the period ended 30 June 2026 presentation requirements:
|
Consolidated Income Statement for the period ended 30 June 2025 |
As previously reported |
Reclassification |
As reclassified |
|
|
|
|
|
|
Deposit insurance fees |
(22,295) |
22,295 |
- |
|
Net interest income |
1,399,546 |
22,295 |
1,421,841 |
|
Fee and commission income |
510,468 |
3,179 |
513,647 |
|
Fee and commission expense |
(219,781) |
8,267 |
(211,514) |
|
Net fee and commission income |
290,687 |
11,446 |
302,133 |
|
Regulatory-related expenses |
- |
(31,600) |
(31,600) |
|
Other expenses |
- |
(3,144) |
(3,144) |
|
Net operating income |
2,017,786 |
(1,003) |
2,016,783 |
|
Administrative expenses |
(147,025) |
(8,303) |
(155,328) |
|
Other operating expenses |
(16,300) |
9,306 |
(6,994) |
|
Operating expenses |
(721,689) |
1,003 |
(720,686) |
|
Consolidated Statement of Cash Flows for the period ended 30 June 2025 |
As previously reported |
Reclassification |
As reclassified |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
Interest paid |
(1,032,986) |
22,295 |
(1,010,691) |
|
Fees and commissions received |
500,994 |
3,179 |
504,173 |
|
Fees and commissions paid |
(223,728) |
9,587 |
(214,141) |
|
General and administrative and operating expenses paid |
(161,818) |
(317) |
(162,135) |
|
Regulatory-related and other expenses paid |
- |
(34,744) |
(34,744) |
|
Cash flows from operating activities before changes in operating assets and liabilities |
1,413,848 |
- |
1,413,848 |
|
|
|
|
|
|
Cash flows from/(used in) investing activities |
|
|
|
|
Purchase of property and equipment and intangible assets |
(127,484) |
127,484 |
- |
|
Purchase of property and equipment |
- |
(74,639) |
(74,639) |
|
Purchase of intangible assets |
- |
(52,845) |
(52,845) |
|
Net cash flows from/(used in) investing activities |
167,996 |
- |
167,996 |
4. Significant accounting judgements and estimates
In the process of applying the Group's accounting policies, the Board of Directors and management use their judgement and make estimates in determining the amounts recognised in the interim condensed consolidated financial statements. Key judgments and estimates are summarized below.
Significant increase in credit risk (SICR)
SICR is not a defined term per IFRS 9, and is determined by management, based on their experience and judgement. In assessing whether the credit risk has significantly increased, the Group has identified a series of qualitative and quantitative criteria based on undertaking the holistic analysis of various factors including those which are specific to a particular financial instrument or to a borrower as well as those applicable to particular sub-portfolios.
For Bank of Georgia these criteria are:
- A significant increase in credit risk, expressed in the relative and/or absolute increase in the risk of default since initial recognition. SICR is determined based on comparison between credit risk ratings (internal or external) as of the origination date and credit risk ratings as of the reporting date for each financial asset individually. Thresholds are determined separately for corporate, retail, SME and other financial instrument portfolios, depending on initial grade assigned at origination. The threshold applied depends on the original credit quality of the borrowers. Higher threshold is set for those instruments with a low PD at origination.
4. Significant accounting judgements and estimates (continued)
Significant increase in credit risk (continued)
The table below summarises SICR thresholds (the actual thresholds are applied on a more granular level). The better the rating (e.g. rating of 2) the more notch increase (e.g. increase by 12 notch) is needed to be treated as SICR:
|
Loan Portfolio Type |
Rating type |
Initial rating |
SICR threshold (notches) |
|
Commercial loans |
Internal |
2-4+ |
5-12 |
|
Commercial loans |
Internal |
5-7+ |
1-5 |
|
Micro and SME loans |
External |
A-C |
5-10 |
|
Mortgage loans |
External |
A-C |
6-10 |
|
Consumer loans |
External |
A-C |
4-10 |
|
Gold - pawn loans |
External |
A-C |
6-10 |
|
Micro and SME loans, Mortgage, Consumer, Gold - pawn loans |
External |
D-E |
1-5 |
- Existence of forecast of adverse changes in commercial, financial or economic conditions that adversely affect the creditworthiness of the borrower.
- Modification of the contractual terms due to financial problems of the borrower other than default
- The days past due on counterparty level breached the threshold of 30 days.
- Other qualitative indicators, such as external market indicators of credit risk or general economic conditions, which indicate that the level of risk has increased significantly since origination.
For Ameriabank these criteria are:
- The days past due on counterparty level breached the threshold of 30 days;
- Overdue days of the borrower in other financial institutions in Armenia;
- Difficulties in the financial conditions of the borrower;
- Renegotiation of the loan terms resulting from deterioration of the borrower's financial position;
- Deterioration of macroeconomic indicators and their possible effect on the borrower's financial performance; Adverse change of rating by 3 or more grades serves as an early warning indicator for Ameriabank to perform additional review and analysis of the borrower's financial position for identifying indicators of significant increase in credit risk
The above noted SICR indicators are identified at financial instrument level in order to track changes in credit risk since initial recognition date.
Measurement of ECLs
ECL reflects an unbiased, probability-weighted estimate based on a combination of the following principal factors: PD, loss given default (LGD), and exposure at default (EAD), which are further explained below:
PD estimation:
Bank of Georgia
JSC Bank of Georgia estimates PD based on a combination of rating model calibration results and a migration matrices approach which is further adjusted for macroeconomic expectations for a minimum three years onwards for all portfolios, to represent the forward-looking estimators of the PD parameters. The migration matrix is built in a way to reflect the weighted average yearly migration over the historical data period. The risk groups are determined in a way to ensure intra-group homogeneity and differentiation of expected PD levels. The models incorporate both qualitative and quantitative information and, where practical, build on information from top rating agencies, Credit Bureau or internal credit rating systems.
4. Significant accounting judgements and estimates (continued)
Measurement of ECLs (continued)
Ameriabank
Ameriabank has developed and implemented its own internal credit rating (ICR) model for individually significant large-scale stage 1 loans, the latter consistent of approximately 60% of total corporate loan portfolio. The model of choice is logistic regression where it models the probabilities of a binary response variable, the so-called target (indicator for an occurrence of a default event within a 12 months-long period) against several independent variables.
Within the scope of corporate PD model development 3 scorecards have been constructed:
- Behavioural - that includes scoring parameters constructed based on the behavioural/transactional data from Ameriabank's sources;
- Financial - that includes scoring parameters constructed based on the information from individual consolidated financial statements provided to Ameriabank;
- Qualitative - that includes scoring parameters based on the qualitative and other quantitative information accumulated or produced within Ameriabank that reflect the credit risk of Ameriabank's creditors.
The above mentioned three models are linked together to obtain a final score for every creditor included in the development sample as well as all the new creditors that will be included into the corporate portfolio of Ameriabank in the upcoming periods.
In addition, corporate clients are segregated in following PD based ratings:
|
Internal Rating Grades |
External Rating |
|
|
Moody's |
|
1 |
Aaa1 |
|
2 |
Aa1-Aa3 |
|
3 |
A1-A3 |
|
4A |
Baa1 |
|
4B |
Baa2 |
|
4C |
Baa3 |
|
5A |
Ba1 |
|
5B |
Ba2 |
|
5C |
Ba3 |
|
6 |
B1-B3 |
|
7 |
CCC+-CCC- |
Besides this, Ameriabank also segregates the following loan portfolios:
- corporate loans, which PDs are not calculated based on ICR model;
- mortgages loans;
- consumer loans.
PDs for loans and advances to customers are based on historic information and are calculated through probability transition matrices, based on historical information on ageing of the loan portfolios. The probabilities are calculated as the share of loans transferring between overdue categories from the total number at the beginning of the period. Calculated PDs are further adjusted based on forward looking information.
Since Stage 3 financial instruments are defaulted, the PD in this case is equal to 100%.
EAD: The EAD represents an estimate of the exposure to credit risk at the time of a potential default occurring during the life of a financial asset. It represents the cash flows outstanding at the time of default, considering expected repayments, interest payments and accruals discounted at the EIR. To calculate EAD for a Stage 1 financial instrument, the Group assesses the possible default events within 12 months for the calculation of the 12 months ECL. For Stage 2 and POCI financial instruments, the EAD is considered for events over the lifetime of the instruments. The Group determines EAD differently for products with repayment schedules and those without repayment schedules. For financial instruments with repayment schedules, the Group estimates forward-looking EAD using the contractual cash flow approach with further corrections for expected prepayments and overdue days. For products without the repayment schedules such as credit cards and credit lines, the Group estimates the forward-looking EAD using the limit utilisation approach. Under the above approach EAD is calculated using the expected utilisation rate based on historical data of actual draw-down amounts.
4. Significant accounting judgements and estimates (continued)
Measurement of ECLs (continued)
LGD: LGD is defined as the likely loss in case of a counterparty default. It provides an estimation of the exposure that cannot be recovered in a default event and therefore captures the severity of a loss. The determination of the LGD takes into account expected future cash flows from collateral and other credit enhancements, or expected payouts from bankruptcy proceedings for unsecured claims, and where applicable, time to realisation of collateral and the seniority of claims. The Group segments its financial instruments into homogeneous portfolios, based on key characteristics that are relevant to the estimation of future cash flows. The applied data is based on historically collected loss data and involves a wider set of transaction characteristics (e.g. product type, wider range of collateral types). Based on this information, the Group estimates the recovery rate (other than through collateral), cure rate and probability of re-default. Recovery through collateral is further considered in LGD calculations individually for each financial instrument.
5. Segment information
For management purposes, the Group is organised into the following business divisions and respective operating segments:
Georgian Financial Services business division:
RB - Retail Banking - principally provides consumer loans, mortgage loans, overdrafts, credit cards and other credit facilities, funds transfers and settlement services, and handling of customers' deposits for both individuals and legal entities. The Retail Banking business targets the mass retail, mass affluent and high-net-worth client segments.
SME - SME Banking - principally provides SME loans, micro loans, consumer and mortgage loans, funds transfers and settlement services, and handling of customers' deposits for legal entities. The SME Banking business targets small and medium-sized enterprises and micro businesses.
CIB - Corporate Investment Banking - comprises Corporate Banking and Investment Management operations in Georgia. Corporate Banking principally provides loans and other credit facilities, funds transfers and settlement services, trade finance services, documentary operations support and handles saving and term deposits for corporate and institutional customers. The Investment Management business principally provides brokerage services through Galt & Taggart.
CC - Corporate Center - comprises mainly treasury and custody operations.
Armenian Financial Services business division:
Ameriabank - comprises operations in the Group's Armenian subsidiary.
Other businesses:
Other - Mainly comprising JSC Belarusky Narodny Bank, principally providing retail and SME banking services in Belarus, JSC Digital area - a digital ecosystem in Georgia including e-commerce, ticketing, and inventory management SaaS, Lion Finance Group PLC - the holding company., and other small entities and intragroup eliminations.
Management monitors the operating results of its segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance, as explained in the table below, is measured in the same manner as profit or loss in the consolidated income statement. The primary segment profit measure is the profit for the period.
Transactions between operating segments are on an arm's length basis in a similar manner to transactions with third parties.
No revenue from transactions with a single external customer or counterparty amounted to 10% or more of the Group's operating income during the first 6 months of 2026 and 2025.
5. Segment information (continued)
The following table presents the income statement and certain asset and liability information regarding the Group's operating segments as at and for the six months period ended 30 June 2026:
|
|
Retail Banking |
SME |
Corporate Investment Banking |
Corporate center |
Eliminations |
Georgian Financial services |
Armenian financial services |
Other businesses |
Group |
|
Interest Income |
1,068,771 |
328,820 |
623,677 |
116,971 |
(2,208) |
2,136,031 |
816,131 |
74,423 |
3,026,585 |
|
Interest expense |
(419,511) |
(80,371) |
(335,358) |
(107,439) |
2,208 |
(940,471) |
(336,417) |
(40,880) |
(1,317,768) |
|
Inter-segment interest income/(expense) |
(11,400) |
(71,811) |
88,597 |
(5,386) |
- |
- |
- |
- |
- |
|
Net interest income |
637,860 |
176,638 |
376,916 |
4,146 |
- |
1,195,560 |
479,714 |
33,543 |
1,708,817 |
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission income |
385,520 |
31,533 |
55,267 |
5,278 |
(1,074) |
476,524 |
137,017 |
33,764 |
647,305 |
|
Card operations |
205,635 |
7,597 |
1,656 |
- |
- |
214,888 |
79,292 |
16,944 |
311,124 |
|
Account services |
88,286 |
16,556 |
8,937 |
2,648 |
- |
116,427 |
3,577 |
6,282 |
126,286 |
|
Settlements operations |
56,119 |
60 |
63 |
- |
(10) |
56,232 |
16,097 |
7,278 |
79,607 |
|
Guarantees and letters of credit |
11 |
3,710 |
21,794 |
- |
- |
25,515 |
12,712 |
425 |
38,652 |
|
Currency conversion operations |
28,135 |
1,012 |
1,962 |
- |
- |
31,109 |
6,397 |
51 |
37,557 |
|
Brokerage service fees |
- |
- |
15,882 |
270 |
- |
16,152 |
4,933 |
1 |
21,086 |
|
Cash operations |
3,694 |
2,591 |
3,827 |
121 |
(1,064) |
9,169 |
3,677 |
2,426 |
15,272 |
|
Advisory |
- |
- |
1,106 |
- |
- |
1,106 |
8,701 |
(1) |
9,806 |
|
Other |
3,640 |
7 |
40 |
2,239 |
- |
5,926 |
1,631 |
358 |
7,915 |
|
Fee and commission expense |
(142,814) |
(6,758) |
(11,635) |
(3,494) |
1,016 |
(163,685) |
(73,952) |
(27,155) |
(264,792) |
|
Card operations |
(104,405) |
(2,320) |
(261) |
- |
1,001 |
(105,985) |
(34,199) |
(10,313) |
(150,497) |
|
Settlements operations |
(17,917) |
(3,551) |
(3,344) |
- |
- |
(24,812) |
(34,854) |
(12,140) |
(71,806) |
|
Currency conversion operations |
(6,077) |
(217) |
(421) |
- |
- |
(6,715) |
(1,816) |
(1,832) |
(10,363) |
|
Cash operations |
(3,746) |
(295) |
(602) |
(3,111) |
8 |
(7,746) |
(522) |
(2,839) |
(11,107) |
|
Brokerage service fees |
(950) |
(365) |
(6,793) |
(383) |
6 |
(8,485) |
(440) |
(34) |
(8,959) |
|
Advisory |
- |
- |
(52) |
- |
- |
(52) |
(914) |
- |
(966) |
|
Guarantees and letters of credit |
- |
(8) |
(141) |
- |
- |
(149) |
(196) |
(29) |
(374) |
|
Other |
(9,719) |
(2) |
(21) |
- |
1 |
(9,741) |
(1,011) |
32 |
(10,720) |
|
Net fee and commission income |
242,706 |
24,775 |
43,632 |
1,784 |
(58) |
312,839 |
63,065 |
6,609 |
382,513 |
|
Net foreign currency gain |
96,624 |
14,044 |
25,778 |
26,933 |
- |
163,379 |
78,593 |
54,405 |
296,377 |
|
Net gains/(losses) on extinguishment of debt |
- |
3 |
13 |
- |
- |
16 |
- |
22 |
38 |
|
Regulatory-related expenses |
(24,388) |
(2,111) |
(407) |
- |
- |
(26,906) |
(7,181) |
(3,503) |
(37,590) |
|
Other expenses |
- |
- |
- |
- |
- |
- |
(4,408) |
- |
(4,408) |
|
Net other gains/(losses) |
4,088 |
1,250 |
3,634 |
(1,850) |
(555) |
6,567 |
6,205 |
7,962 |
20,734 |
|
Net operating income |
956,890 |
214,599 |
449,566 |
31,013 |
(613) |
1,651,455 |
615,988 |
99,038 |
2,366,481 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
(342,135) |
(60,161) |
(77,235) |
(8,634) |
613 |
(487,552) |
(253,850) |
(74,688) |
(816,090) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit from associates |
- |
- |
- |
990 |
- |
990 |
- |
- |
990 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before cost of risk |
614,755 |
154,438 |
372,331 |
23,369 |
- |
1,164,893 |
362,138 |
24,350 |
1,551,381 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of risk |
(67,954) |
(10,944) |
4,659 |
172 |
- |
(74,067) |
(26,639) |
(2,594) |
(103,300) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax |
546,801 |
143,494 |
376,990 |
23,541 |
- |
1,090,826 |
335,499 |
21,756 |
1,448,081 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(85,993) |
(23,472) |
(59,992) |
3,702 |
- |
(165,755) |
(63,026) |
(15,507) |
(244,288) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
460,808 |
120,022 |
316,998 |
27,243 |
- |
925,071 |
272,473 |
6,249 |
1,203,793 |
|
|
|
|
|
|
|
|
|
|
|
|
Assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to customers, factoring and finance lease receivables |
13,241,289 |
5,661,126 |
10,261,604 |
- |
- |
29,164,019 |
14,041,531 |
1,223,493 |
44,429,043 |
|
Total assets |
20,412,713 |
6,631,804 |
13,257,685 |
4,547,228 |
(350,410) |
44,499,020 |
19,023,016 |
2,298,503 |
65,820,539 |
|
Client deposits and notes |
17,225,211 |
2,530,747 |
7,809,469 |
3,082,547 |
(94,868) |
30,553,106 |
11,444,050 |
1,667,597 |
43,664,753 |
|
Total liabilities |
17,791,868 |
5,688,427 |
10,836,758 |
4,078,871 |
(350,410) |
38,045,514 |
16,492,260 |
1,890,837 |
56,428,611 |
|
|
|
|
|
|
|
|
|
|
|
|
Other segment information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
38,537 |
2,874 |
1,903 |
51 |
- |
43,365 |
10,313 |
2,269 |
55,947 |
|
Intangible assets |
21,479 |
4,073 |
4,049 |
199 |
- |
29,800 |
27,376 |
9,534 |
66,710 |
|
Capital expenditure |
60,016 |
6,947 |
5,952 |
250 |
- |
73,165 |
37,689 |
11,803 |
122,657 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortisation and impairment |
(62,417) |
(7,929) |
(5,793) |
(220) |
- |
(76,359) |
(32,804) |
(14,721) |
(123,884) |
5. Segment information (continued)
The following table presents the income statement information regarding the Group's operating segments for the six months period ended 30 June 2025 and certain asset and liability information as at 31 December 2025:
|
|
Retail Banking |
SME |
Corporate Investment Banking |
Corporate center |
Eliminations |
Georgian Financial services |
Armenian financial services |
Other businesses |
Group |
|
Interest Income |
868,636 |
302,450 |
526,912 |
163,544 |
(1,917) |
1,859,625 |
624,307 |
52,616 |
2,536,548 |
|
Interest expense |
(339,477) |
(61,768) |
(278,656) |
(169,344) |
1,917 |
(847,328) |
(236,486) |
(30,893) |
(1,114,707) |
|
Inter-segment interest income/(expense) |
(1,885) |
(81,124) |
83,898 |
(889) |
- |
- |
- |
- |
- |
|
Net interest income |
527,274 |
159,558 |
332,154 |
(6,689) |
- |
1,012,297 |
387,821 |
21,723 |
1,421,841 |
|
|
|
|
|
|
|
|
|
|
|
|
Fee and commission income |
315,685 |
29,281 |
46,954 |
4,388 |
(483) |
395,825 |
87,941 |
29,881 |
513,647 |
|
Card operations |
170,867 |
6,984 |
1,276 |
- |
- |
179,127 |
52,863 |
14,567 |
246,557 |
|
Account services |
68,588 |
14,612 |
8,850 |
2,255 |
- |
94,305 |
- |
5,104 |
99,409 |
|
Settlements operations |
48,006 |
56 |
47 |
- |
(25) |
48,084 |
12,992 |
6,916 |
67,992 |
|
Guarantees and letters of credit |
23 |
4,134 |
23,138 |
- |
- |
27,295 |
8,432 |
261 |
35,988 |
|
Currency conversion operations |
22,210 |
1,003 |
1,778 |
- |
- |
24,991 |
- |
33 |
25,024 |
|
Cash operations |
3,423 |
2,471 |
1,837 |
137 |
(170) |
7,698 |
6,606 |
2,659 |
16,963 |
|
Brokerage service fees |
- |
15 |
9,126 |
- |
(43) |
9,098 |
5,300 |
- |
14,398 |
|
Advisory |
- |
- |
902 |
- |
- |
902 |
- |
- |
902 |
|
Other |
2,568 |
6 |
- |
1,996 |
(245) |
4,325 |
1,748 |
341 |
6,414 |
|
Fee and commission expense |
(124,977) |
(8,080) |
(9,552) |
(3,185) |
435 |
(145,359) |
(43,549) |
(22,606) |
(211,514) |
|
Card operations |
(87,291) |
(3,452) |
(427) |
- |
- |
(91,170) |
(19,781) |
(10,947) |
(121,898) |
|
Settlements operations |
(20,187) |
(3,381) |
(2,504) |
- |
384 |
(25,688) |
(21,408) |
(7,878) |
(54,974) |
|
Cash operations |
(4,847) |
(742) |
(1,786) |
(3,052) |
8 |
(10,419) |
(439) |
(2,184) |
(13,042) |
|
Currency conversion operations |
(4,794) |
(217) |
(384) |
- |
- |
(5,395) |
- |
(1,594) |
(6,989) |
|
Brokerage service fees |
(600) |
(277) |
(4,158) |
(133) |
- |
(5,168) |
(778) |
(1) |
(5,947) |
|
Guarantees and letters of credit |
- |
(11) |
(136) |
- |
- |
(147) |
(95) |
(2) |
(244) |
|
Advisory |
- |
- |
(157) |
- |
- |
(157) |
- |
- |
(157) |
|
Other |
(7,258) |
- |
- |
- |
43 |
(7,215) |
(1,048) |
- |
(8,263) |
|
Net fee and commission income |
190,708 |
21,201 |
37,402 |
1,203 |
(48) |
250,466 |
44,392 |
7,275 |
302,133 |
|
Net foreign currency gain |
85,043 |
15,885 |
37,221 |
35,902 |
- |
174,051 |
71,870 |
52,270 |
298,191 |
|
Net gains/(losses) on extinguishment of debt |
- |
2 |
8 |
- |
- |
10 |
- |
(235) |
(225) |
|
Regulatory-related expenses |
(22,509) |
(1,971) |
(355) |
- |
- |
(24,835) |
(5,400) |
(1,365) |
(31,600) |
|
Other expenses |
- |
- |
- |
- |
- |
- |
(3,144) |
- |
(3,144) |
|
Net other gains/(losses) |
(4,492) |
667 |
14,660 |
11,440 |
(320) |
21,955 |
3,530 |
4,102 |
29,587 |
|
Net operating income |
776,024 |
195,342 |
421,090 |
41,856 |
(368) |
1,433,944 |
499,069 |
83,770 |
2,016,783 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
(291,580) |
(52,013) |
(64,467) |
(15,548) |
368 |
(423,240) |
(244,028) |
(53,418) |
(720,686) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit from associates |
- |
- |
- |
736 |
- |
736 |
- |
- |
736 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before cost of risk |
484,444 |
143,329 |
356,623 |
27,044 |
- |
1,011,440 |
255,041 |
30,352 |
1,296,833 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of risk |
(31,294) |
(17,417) |
(14,511) |
(616) |
- |
(63,838) |
(13,940) |
69 |
(77,709) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit before income tax |
453,150 |
125,912 |
342,112 |
26,428 |
- |
947,602 |
241,101 |
30,421 |
1,219,124 |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
(76,169) |
(20,535) |
(58,006) |
22,027 |
- |
(132,683) |
(49,796) |
(10,334) |
(192,813) |
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period |
376,981 |
105,377 |
284,106 |
48,455 |
- |
814,919 |
191,305 |
20,087 |
1,026,311 |
|
|
|
|
|
|
|
|
|
|
|
|
Assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans to customers, factoring and finance lease receivables |
12,190,163 |
5,447,299 |
9,651,145 |
- |
- |
27,288,607 |
11,818,695 |
958,362 |
40,065,664 |
|
Total assets |
18,994,006 |
6,363,741 |
12,760,315 |
4,249,427 |
(237,349) |
42,130,140 |
16,552,268 |
2,187,448 |
60,869,856 |
|
Client deposits and notes |
16,385,011 |
2,526,790 |
8,081,092 |
421,957 |
(102,300) |
27,312,550 |
9,630,051 |
1,687,373 |
38,629,974 |
|
Total liabilities |
16,545,083 |
5,490,181 |
10,514,149 |
4,132,685 |
(237,349) |
36,444,749 |
14,222,863 |
1,780,001 |
52,447,613 |
|
|
|
|
|
|
|
|
|
|
|
|
Other segment information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment |
48,160 |
4,226 |
1,822 |
32 |
- |
54,240 |
15,589 |
3,001 |
72,830 |
|
Intangible assets |
19,841 |
3,496 |
1,885 |
120 |
- |
25,342 |
20,583 |
6,920 |
52,845 |
|
Capital expenditure |
68,001 |
7,722 |
3,707 |
152 |
- |
79,582 |
36,172 |
9,921 |
125,675 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortisation and impairment |
(57,920) |
(7,996) |
(3,354) |
(128) |
- |
(69,398) |
(29,958) |
(5,904) |
(105,260) |
6. Cash and cash equivalents
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Cash on hand |
1,334,450 |
|
1,412,335 |
|
Current accounts with central banks |
1,594,001 |
|
1,261,489 |
|
Current accounts with credit institutions |
1,293,361 |
|
1,403,185 |
|
Placements with and receivables from credit institutions with maturities of up to 90 days |
825,369 |
|
495,596 |
|
Cash and cash equivalents, gross |
5,047,181 |
|
4,572,605 |
|
Less - Allowance for expected credit loss |
(427) |
|
(559) |
|
Cash and cash equivalents, net |
5,046,754 |
|
4,572,046 |
Of the above cash and cash equivalents as at 30 June 2026, GEL 1,487,069 (31 December 2025: GEL 1,155,797) was placed on current and time deposit accounts with internationally recognised OECD banks and central banks that are the counterparties of the Group in performing international settlements. The Group earned up to 3.70% interest per annum on these deposits (31 December 2025: up to 8.10%). Management does not expect any losses from non-performance by the counterparties holding cash and cash equivalents, and there are no material differences between their book and fair values.
Current accounts with central banks include mandatory reserves relating to GEL and AMD denominated liabilities, which are maintained as an average balance on correspondent accounts with the NBG and CBA. These balances remain operationally available, provided that the required average reserve balance is maintained throughout the maintenance period.
7. Amounts due from credit institutions
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Obligatory reserves with central banks |
2,815,178 |
|
3,108,019 |
|
Receivables from reverse REPO operations |
904,471 |
|
394,325 |
|
Placements with and receivables from credit institutions with maturities of more than 90 days |
42,024 |
|
34,157 |
|
Restricted cash |
17,795 |
|
18,009 |
|
Amounts due from credit institutions, gross |
3,779,468 |
|
3,554,510 |
|
Less - Allowance for expected credit loss |
(2,452) |
|
(2,253) |
|
Amounts due from credit institutions, net |
3,777,016 |
|
3,552,257 |
Obligatory reserves with central banks represent amounts deposited with the NBG, the CBA and National Bank of the Republic of Belarus (the "NBRB"). Credit institutions are required to maintain cash deposits (obligatory reserve) with the NBG, CBA and with the NBRB, the amount of which depends on the level of funds attracted by the credit institution. The Group's ability to withdraw these deposits is restricted by regulation. The Group earned up to 3.25% and 4.00% interest on obligatory reserves with NBG and 0.00% interest on obligatory reserve with CBA and NBRB for the period ended 30 June 2026 and 31 December 2025.
Restricted cash includes amounts placed with payment systems which serve as guarantee funds for card transaction settlements and are subject to withdrawal restrictions.
8. Investment securities and investment securities pledged under sale and repurchase agreements and securities lending
Investment securities
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Investment securities measured at FVOCI - debt instruments [1] |
6,300,069 |
|
6,612,866 |
|
Investment securities measured at FVTPL - debt instruments [2] |
171,413 |
|
134,695 |
|
Investment securities designated as at FVOCI - equity investments |
26,618 |
|
27,718 |
|
Investment securities measured at FVTPL - equity instruments |
19,118 |
|
17,609 |
|
Investment securities measured at FV |
6,517,218 |
|
6,792,888 |
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Investment securities measured at amortised cost [3] |
3,222,973 |
|
3,257,320 |
|
Less: allowance for expected credit losses |
(2,637) |
|
(2,971) |
|
Investment securities measured at amortized cost, net |
3,220,336 |
|
3,254,349 |
8. Investment securities and investments securities pledged under sale and repurchase agreements and securities lending (continued)
Investment securities (Continued)
[1] Investment securities measured at FVOCI - debt instruments comprise:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Ministry of Finance of Georgia treasury bonds |
4,291,790 |
|
4,201,743 |
|
Ministry of Finance of Georgia treasury bills |
72,962 |
|
59,065 |
|
US treasury bills |
1,607,070 |
|
1,912,095 |
|
US treasury bonds |
52,581 |
|
134,558 |
|
Foreign treasury bills |
60,638 |
|
57,913 |
|
Government securities of the Republic of Armenia |
59,600 |
|
97,309 |
|
Government Eurobonds of the Republic of Armenia |
23,207 |
|
- |
|
Certificates of deposit of central banks |
19,715 |
|
9,893 |
|
Other debt instruments [1.1] |
112,506 |
|
140,290 |
|
Investment securities measured at FVOCI - debt instruments |
6,300,069 |
|
6,612,866 |
[1.1] Other debt instruments measured at FVOCI comprise:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
European Bank for Reconstruction and Development |
91,985 |
|
92,128 |
|
Other debt instruments |
20,521 |
|
48,162 |
|
Investment securities measured at FVOCI - Other debt instruments |
112,506 |
|
140,290 |
[2] Investment securities measured at FVTPL - debt instruments comprise:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Ministry of Finance of Georgia treasury bonds |
2,631 |
|
- |
|
Government securities of the Republic of Armenia |
54,496 |
|
38,431 |
|
Government Eurobonds of the Republic of Armenia |
- |
|
11,619 |
|
Other debt instruments |
114,286 |
|
84,645 |
|
Investment securities measured at FVTPL - debt instruments |
171,413 |
|
134,695 |
[3] Investment securities measured at amortised cost - debt instruments comprise:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Ministry of Finance of Georgia treasury bonds |
1,650 |
|
10,836 |
|
US treasury bonds |
845,913 |
|
499,263 |
|
Government securities of the Republic of Armenia |
1,018,538 |
|
990,671 |
|
Other debt instruments [3.1] |
1,356,872 |
|
1,756,550 |
|
Investment securities measured at amortised cost - debt instruments, gross |
3,222,973 |
|
3,257,320 |
|
Less: allowance for expected credit losses |
(2,637) |
|
(2,971) |
|
Investment securities measured at amortised cost - debt instruments, net |
3,220,336 |
|
3,254,349 |
[3.1] Other debt instruments measured at amortised cost comprise:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. |
460,073 |
|
460,167 |
|
European Bank for Reconstruction and Development |
389,142 |
|
446,713 |
|
International Finance Corporation |
119,736 |
|
263,199 |
|
Georgia Healthcare Group JSC |
142,627 |
|
142,623 |
|
Asian Development Bank |
68,484 |
|
257,128 |
|
Tegeta Motors LLC |
25,449 |
|
25,442 |
|
Other debt instruments |
151,361 |
|
161,278 |
|
Investment securities measured at amortised cost - Other debt instruments, gross |
1,356,872 |
|
1,756,550 |
8. Investment securities and investments securities pledged under sale and repurchase agreements and securities lending (continued)
Investment securities (Continued)
Investment securities pledged were as follows:
|
Investment securities pledged for short-term loans from central banks |
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Georgian Ministry of Finance treasury bonds |
55,056 |
|
1,175,413 |
|
Government securities of the Republic of Armenia |
21,260 |
|
12,887 |
|
Government securities and Eurobonds of the Republic of Armenia |
9,573 |
|
134,525 |
|
Total |
85,889 |
|
1,322,825 |
|
Out of which: |
|
|
|
|
Measured at FVOCI |
55,056 |
|
1,175,413 |
|
Measured at amortised cost |
30,833 |
|
147,412 |
|
|
|
|
|
|
Investment securities pledged for Ministry of Finance of Georgia |
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Georgian Ministry of Finance treasury bonds |
3,135,500 |
|
109,233 |
|
Other debt instruments |
- |
|
106,164 |
|
Total |
3,135,500 |
|
215,397 |
|
Out of which: |
|
|
|
|
Measured at FVOCI |
3,135,500 |
|
109,233 |
|
Measured at amortised cost |
- |
|
106,164 |
For the period ended 30 June 2026 net gains on derecognition of investment securities measured at FVOCI comprised GEL 2,918 (period ended 30 June 2025: GEL 2,226) which is included in net other income.
As at 30 June 2026, allowance for ECL on investment securities measured at FVOCI comprised GEL 8,947 (31 December 2025: GEL 9,681).
During 2026 the reporting period, the Group sold investment securities measured at amortised cost with a total carrying amount of GEL 12,944 (period ended 30 June 2025: GEL 39,604) and recognised a gain/(loss) of GEL 407 (period ended 30 June 2025: GEL 44).
The disposals occurred on an infrequent basis and were incidental to the Group's business model. They do not represent a recurring or systematic activity and remain below the internally established threshold for assessing consistency with its business objective.
The Group's consistent practice remains to hold such instruments to collect contractual cash flows, and the observed sales do not indicate any change in the underlying business objective. The Group will continue to monitor the frequency and volume of such transactions going forward to ensure ongoing alignment with its business model.
Investment securities pledged under sale and repurchase agreements and securities lending
|
Pledged investment securities |
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Investment securities measured at FVOCI - debt instruments |
3,190,556 |
|
1,284,646 |
|
Investment securities measured at amortised cost - debt instruments |
30,833 |
|
253,576 |
|
Total |
3,221,389 |
|
1,538,222 |
8. Investment securities and investments securities pledged under sale and repurchase agreements and securities lending (continued)
Investment securities pledged under sale and repurchase agreements and securities lending (Continued)
[6] Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost - debt instruments comprise:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Government securities of the Republic of Armenia |
21,295 |
|
12,911 |
|
Government Eurobonds of the Republic of Armenia |
9,588 |
|
134,720 |
|
Other debt instruments |
289,820 |
|
- |
|
Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost - debt instruments, gross |
320,703 |
|
147,631 |
|
Less: allowance for expected credit losses |
(49) |
|
(215) |
|
Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost - debt instruments, net |
320,654 |
|
147,416 |
Investment securities are pledged as collateral as part of sales and repurchases and securities borrowing under terms that are usual and customary for such activities.
9. Loans to customers, factoring and finance lease receivables
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Commercial loans |
16,404,390 |
|
14,462,893 |
|
Consumer loans |
10,752,462 |
|
9,635,635 |
|
Residential mortgage loans |
9,222,722 |
|
8,483,490 |
|
Micro and SME loans |
7,564,631 |
|
7,152,602 |
|
Gold - pawn loans |
344,806 |
|
240,532 |
|
Loans to customers at amortised cost, gross |
44,289,011 |
|
39,975,152 |
|
Less - Allowance for expected credit loss |
(580,046) |
|
(525,589) |
|
Loans to customers at amortised cost, net |
43,708,965 |
|
39,449,563 |
|
|
|
|
|
|
Finance lease receivables, gross |
502,773 |
|
444,793 |
|
Less - Allowance for expected credit loss |
(4,298) |
|
(6,026) |
|
Finance lease receivables, net |
498,475 |
|
438,767 |
|
|
|
|
|
|
Factoring receivables, gross |
221,958 |
|
177,756 |
|
Less - Allowance for expected credit loss |
(355) |
|
(422) |
|
Factoring receivables, net |
221,603 |
|
177,334 |
|
|
|
|
|
|
Total loans to customers, factoring and finance lease receivables |
44,429,043 |
|
40,065,664 |
As at 30 June 2026, loans to customers carried at GEL 0 (31 December 2025: GEL 1,965,789) were pledged for short-term loans from the NBG under terms that are usual and customary for such activities.
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss
Movements of the gross loans and respective allowance for expected credit loss / impairment of loans to customers by class are provided in the table below, within which the new financial asset originated or purchased and the assets repaid during the year include the effects from revolving loans and increase of exposure to clients, where existing loans have been repaid with new contracts issued during the year. All new financial assets are originated either in Stage 1 or POCI category. Utilisation of additional tranches on existing financial assets are reflected in Stage 2 or Stage 3 if the credit risk of the borrower has deteriorated since initiation. Currency translation differences relate to loans issued by the subsidiaries of the Group whose functional currency is different from the presentation currency of the Group, while foreign exchange movement relates to foreign currency denominated loans issued by the Group. Net other changes in gross loan balances includes the effects of changes in accrued interest. Net other measurement of ECL includes the effect of changes in ECL due to changes in PDs and other inputs, as well as the effect from ECL attributable to changes in accrued interest.
|
Loans to customer at amortised cost, gross: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
37,535,746 |
|
1,527,821 |
|
779,346 |
|
132,239 |
|
39,975,152 |
|
New financial asset originated or purchased |
15,650,398 |
|
37,616 |
|
- |
|
21,365 |
|
15,709,379 |
|
Transfer to Stage 1 |
388,825 |
|
(386,813) |
|
(2,012) |
|
- |
|
- |
|
Transfer to Stage 2 |
(1,150,134) |
|
1,190,766 |
|
(40,632) |
|
- |
|
- |
|
Transfer to Stage 3 |
(50,907) |
|
(232,112) |
|
283,019 |
|
- |
|
- |
|
Assets repaid |
(10,583,934) |
|
(384,526) |
|
(161,194) |
|
(39,987) |
|
(11,169,641) |
|
Impact of modifications |
2,290 |
|
572 |
|
(2,463) |
|
(132) |
|
267 |
|
Foreign exchange movement |
(486,012) |
|
(24,540) |
|
(12,479) |
|
(11,539) |
|
(534,570) |
|
Net other changes |
277,926 |
|
(172,365) |
|
59,305 |
|
21,449 |
|
186,315 |
|
Write-offs |
- |
|
(5) |
|
(74,895) |
|
(18,228) |
|
(93,128) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
22,441 |
|
12,624 |
|
35,065 |
|
Unwind of discount |
- |
|
- |
|
11,012 |
|
3,455 |
|
14,467 |
|
Currency translation differences |
162,341 |
|
80 |
|
2,339 |
|
945 |
|
165,705 |
|
Balance at 30 June 2026 |
41,746,539 |
|
1,556,494 |
|
863,787 |
|
122,191 |
|
44,289,011 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
6,600,942 |
|
22,557 |
|
407,692 |
|
55,584 |
|
7,086,775 |
|
Collectively assessed |
35,145,597 |
|
1,533,937 |
|
456,095 |
|
66,607 |
|
37,202,236 |
|
Balance at 30 June 2026 |
41,746,539 |
|
1,556,494 |
|
863,787 |
|
122,191 |
|
44,289,011 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans to customer at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
140,330 |
|
72,011 |
|
310,343 |
|
2,905 |
|
525,589 |
|
New financial asset originated or purchased |
83,740 |
|
828 |
|
- |
|
341 |
|
84,909 |
|
Transfer to Stage 1 |
21,839 |
|
(21,827) |
|
(12) |
|
- |
|
- |
|
Transfer to Stage 2 |
(45,711) |
|
59,787 |
|
(14,076) |
|
- |
|
- |
|
Transfer to Stage 3 |
(9,120) |
|
(18,409) |
|
27,529 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(12,507) |
|
25,478 |
|
48,062 |
|
- |
|
61,033 |
|
Assets repaid |
(54,197) |
|
(31,090) |
|
(50,632) |
|
(3,639) |
|
(139,558) |
|
Impact of modifications |
192 |
|
2 |
|
(670) |
|
35 |
|
(441) |
|
Foreign exchange movement |
(1,564) |
|
(777) |
|
(3,938) |
|
(576) |
|
(6,855) |
|
Day 2' expected credit loss on business combination |
- |
|
- |
|
- |
|
- |
|
- |
|
Net other measurement of ECL |
46,931 |
|
6,376 |
|
40,782 |
|
3,824 |
|
97,913 |
|
Income statement (releases)/charges |
29,603 |
|
20,368 |
|
47,045 |
|
(15) |
|
97,001 |
|
Write-offs |
- |
|
(5) |
|
(74,895) |
|
(18,228) |
|
(93,128) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
22,441 |
|
12,624 |
|
35,065 |
|
Unwind of discount |
- |
|
- |
|
11,010 |
|
3,457 |
|
14,467 |
|
Currency translation differences |
275 |
|
(2) |
|
666 |
|
113 |
|
1,052 |
|
Balance at 30 June 2026 |
170,208 |
|
92,372 |
|
316,610 |
|
856 |
|
580,046 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
42,626 |
|
2,180 |
|
134,981 |
|
5,464 |
|
185,251 |
|
Collectively assessed |
127,582 |
|
90,192 |
|
181,629 |
|
(4,608) |
|
394,795 |
|
Balance at 30 June 2026 |
170,208 |
|
92,372 |
|
316,610 |
|
856 |
|
580,046 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Commercial loans at amortised cost, gross: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
13,421,595 |
|
811,032 |
|
213,918 |
|
16,348 |
|
14,462,893 |
|
New financial asset originated or purchased |
6,159,195 |
|
36,895 |
|
- |
|
3,386 |
|
6,199,476 |
|
Transfer to Stage 1 |
8,401 |
|
(8,401) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(243,814) |
|
243,814 |
|
- |
|
- |
|
- |
|
Transfer to Stage 3 |
- |
|
(66,087) |
|
66,087 |
|
- |
|
- |
|
Assets repaid |
(3,886,069) |
|
(244,373) |
|
(45,212) |
|
(9,966) |
|
(4,185,620) |
|
Resegmentation |
23,926 |
|
(1,480) |
|
- |
|
- |
|
22,446 |
|
Impact of modifications |
(303) |
|
417 |
|
433 |
|
(1) |
|
546 |
|
Foreign exchange movement |
(305,492) |
|
(18,773) |
|
(5,144) |
|
(120) |
|
(329,529) |
|
Net other changes |
159,327 |
|
1,256 |
|
(4,085) |
|
1,838 |
|
158,336 |
|
Write-offs |
- |
|
- |
|
- |
|
(369) |
|
(369) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
1,771 |
|
2,644 |
|
4,415 |
|
Unwind of discount |
- |
|
- |
|
3,134 |
|
(24) |
|
3,110 |
|
Currency translation differences |
68,829 |
|
41 |
|
(184) |
|
- |
|
68,686 |
|
Balance at 30 June 2026 |
15,405,595 |
|
754,341 |
|
230,718 |
|
13,736 |
|
16,404,390 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
5,596,009 |
|
- |
|
222,698 |
|
12,721 |
|
5,831,428 |
|
Collectively assessed |
9,809,586 |
|
754,341 |
|
8,020 |
|
1,015 |
|
10,572,962 |
|
Balance at 30 June 2026 |
15,405,595 |
|
754,341 |
|
230,718 |
|
13,736 |
|
16,404,390 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
45,928 |
|
28,876 |
|
108,045 |
|
(1,179) |
|
181,670 |
|
New financial asset originated or purchased |
23,261 |
|
823 |
|
- |
|
181 |
|
24,265 |
|
Transfer to Stage 1 |
31 |
|
(31) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(2,477) |
|
2,477 |
|
- |
|
- |
|
- |
|
Transfer to Stage 3 |
- |
|
(1,367) |
|
1,367 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(6) |
|
2,904 |
|
3,626 |
|
- |
|
6,524 |
|
Assets repaid |
(8,990) |
|
(7,529) |
|
(8,066) |
|
(896) |
|
(25,481) |
|
Resegmentation |
11 |
|
(369) |
|
(15) |
|
- |
|
(373) |
|
Impact of modifications |
- |
|
3 |
|
263 |
|
1 |
|
267 |
|
Foreign exchange movement |
(1,097) |
|
(623) |
|
(2,339) |
|
18 |
|
(4,041) |
|
Net other measurement of ECL |
3,484 |
|
4,128 |
|
(10,948) |
|
(2,379) |
|
(5,715) |
|
Income statement (releases)/charges |
14,217 |
|
416 |
|
(16,112) |
|
(3,075) |
|
(4,554) |
|
Write-offs |
- |
|
- |
|
- |
|
(369) |
|
(369) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
1,771 |
|
2,644 |
|
4,415 |
|
Unwind of discount |
- |
|
- |
|
3,132 |
|
(22) |
|
3,110 |
|
Currency translation differences |
(255) |
|
(6) |
|
(152) |
|
2 |
|
(411) |
|
Balance at 30 June 2026 |
59,890 |
|
29,286 |
|
96,684 |
|
(1,999) |
|
183,861 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
35,084 |
|
- |
|
94,481 |
|
(2,094) |
|
127,471 |
|
Collectively assessed |
24,806 |
|
29,286 |
|
2,203 |
|
95 |
|
56,390 |
|
Balance at 30 June 2026 |
59,890 |
|
29,286 |
|
96,684 |
|
(1,999) |
|
183,861 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Residential mortgage loans at amortised cost, gross: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
8,201,505 |
|
140,895 |
|
109,672 |
|
31,418 |
|
8,483,490 |
|
New financial asset originated or purchased |
1,717,695 |
|
- |
|
- |
|
3,398 |
|
1,721,093 |
|
Transfer to Stage 1 |
92,691 |
|
(92,029) |
|
(662) |
|
- |
|
- |
|
Transfer to Stage 2 |
(163,664) |
|
173,913 |
|
(10,249) |
|
- |
|
- |
|
Transfer to Stage 3 |
(11,550) |
|
(17,586) |
|
29,136 |
|
- |
|
- |
|
Assets repaid |
(900,808) |
|
(18,630) |
|
(16,129) |
|
(6,417) |
|
(941,984) |
|
Resegmentation |
(110) |
|
- |
|
- |
|
- |
|
(110) |
|
Impact of modifications |
655 |
|
90 |
|
4 |
|
16 |
|
765 |
|
Foreign exchange movement |
(54,114) |
|
(1,338) |
|
(2,992) |
|
(427) |
|
(58,871) |
|
Net other changes |
3,781 |
|
(42,074) |
|
10,219 |
|
866 |
|
(27,208) |
|
Write-offs |
- |
|
- |
|
(3,296) |
|
(995) |
|
(4,291) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
189 |
|
1,632 |
|
1,821 |
|
Unwind of discount |
- |
|
- |
|
1,904 |
|
2,022 |
|
3,926 |
|
Currency translation differences |
42,813 |
|
73 |
|
1,098 |
|
107 |
|
44,091 |
|
Balance at 30 June 2026 |
8,928,894 |
|
143,314 |
|
118,894 |
|
31,620 |
|
9,222,722 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
- |
|
506 |
|
73,760 |
|
5,168 |
|
79,434 |
|
Collectively assessed |
8,928,894 |
|
142,808 |
|
45,134 |
|
26,452 |
|
9,143,288 |
|
Balance at 30 June 2026 |
8,928,894 |
|
143,314 |
|
118,894 |
|
31,620 |
|
9,222,722 |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
4,456 |
|
1,549 |
|
21,533 |
|
(2,877) |
|
24,661 |
|
New financial asset originated or purchased |
1,494 |
|
- |
|
- |
|
19 |
|
1,513 |
|
Transfer to Stage 1 |
683 |
|
(679) |
|
(4) |
|
- |
|
- |
|
Transfer to Stage 2 |
(4,984) |
|
5,782 |
|
(798) |
|
- |
|
- |
|
Transfer to Stage 3 |
(2,579) |
|
(562) |
|
3,141 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(384) |
|
7 |
|
1,686 |
|
- |
|
1,309 |
|
Assets repaid |
(436) |
|
(256) |
|
(1,795) |
|
(653) |
|
(3,140) |
|
Resegmentation |
(1) |
|
- |
|
- |
|
- |
|
(1) |
|
Impact of modifications |
7 |
|
1 |
|
23 |
|
1 |
|
32 |
|
Foreign exchange movement |
(20) |
|
(11) |
|
(510) |
|
24 |
|
(517) |
|
Net other measurement of ECL |
7,663 |
|
(4,100) |
|
(3,100) |
|
(328) |
|
135 |
|
Income statement (releases)/charges |
1,443 |
|
182 |
|
(1,357) |
|
(937) |
|
(669) |
|
Write-offs |
- |
|
- |
|
(3,296) |
|
(995) |
|
(4,291) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
189 |
|
1,632 |
|
1,821 |
|
Unwind of discount |
- |
|
- |
|
1,904 |
|
2,022 |
|
3,926 |
|
Currency translation differences |
46 |
|
4 |
|
250 |
|
1 |
|
301 |
|
Balance at 30 June 2026 |
5,945 |
|
1,735 |
|
19,223 |
|
(1,154) |
|
25,749 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
- |
|
79 |
|
11,994 |
|
1,939 |
|
14,012 |
|
Collectively assessed |
5,945 |
|
1,656 |
|
7,229 |
|
(3,093) |
|
11,737 |
|
Balance at 30 June 2026 |
5,945 |
|
1,735 |
|
19,223 |
|
(1,154) |
|
25,749 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Micro and SME loans at amortised cost, gross: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
6,652,227 |
|
201,771 |
|
243,994 |
|
54,610 |
|
7,152,602 |
|
New financial asset originated or purchased |
2,233,616 |
|
653 |
|
- |
|
12,507 |
|
2,246,776 |
|
Transfer to Stage 1 |
60,626 |
|
(59,964) |
|
(662) |
|
- |
|
- |
|
Transfer to Stage 2 |
(175,904) |
|
180,321 |
|
(4,417) |
|
- |
|
- |
|
Transfer to Stage 3 |
(19,039) |
|
(60,716) |
|
79,755 |
|
- |
|
- |
|
Assets repaid |
(1,660,211) |
|
(43,178) |
|
(52,640) |
|
(15,370) |
|
(1,771,399) |
|
Resegmentation |
(23,966) |
|
1,480 |
|
- |
|
- |
|
(22,486) |
|
Impact of modifications |
171 |
|
(128) |
|
(68) |
|
(76) |
|
(101) |
|
Foreign exchange movement |
(104,932) |
|
(3,897) |
|
(3,934) |
|
(10,885) |
|
(123,648) |
|
Net other changes |
48,092 |
|
(5,109) |
|
(2,823) |
|
16,841 |
|
57,001 |
|
Write-offs |
- |
|
- |
|
(7,515) |
|
(10,514) |
|
(18,029) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
4,800 |
|
4,918 |
|
9,718 |
|
Unwind of discount |
- |
|
- |
|
2,541 |
|
(1,103) |
|
1,438 |
|
Currency translation differences |
31,832 |
|
(70) |
|
307 |
|
690 |
|
32,759 |
|
Balance at 30 June 2026 |
7,042,512 |
|
211,163 |
|
259,338 |
|
51,618 |
|
7,564,631 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
1,004,933 |
|
18,087 |
|
55,845 |
|
34,664 |
|
1,113,529 |
|
Collectively assessed |
6,037,579 |
|
193,076 |
|
203,493 |
|
16,954 |
|
6,451,102 |
|
Balance at 30 June 2026 |
7,042,512 |
|
211,163 |
|
259,338 |
|
51,618 |
|
7,564,631 |
|
|
|
|
|
|
|
|
|
|
|
|
Micro and SME loans at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
29,629 |
|
6,236 |
|
72,656 |
|
5,884 |
|
114,405 |
|
New financial asset originated or purchased |
12,576 |
|
4 |
|
- |
|
105 |
|
12,685 |
|
Transfer to Stage 1 |
2,524 |
|
(2,520) |
|
(4) |
|
- |
|
- |
|
Transfer to Stage 2 |
(7,687) |
|
8,496 |
|
(809) |
|
- |
|
- |
|
Transfer to Stage 3 |
(3,067) |
|
(4,015) |
|
7,082 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(1,342) |
|
3,998 |
|
11,327 |
|
- |
|
13,983 |
|
Assets repaid |
(7,285) |
|
(1,127) |
|
(11,252) |
|
(792) |
|
(20,456) |
|
Resegmentation |
(10) |
|
369 |
|
15 |
|
- |
|
374 |
|
Impact of modifications |
2 |
|
(4) |
|
(51) |
|
21 |
|
(32) |
|
Foreign exchange movement |
(408) |
|
(133) |
|
(892) |
|
(620) |
|
(2,053) |
|
Net other measurement of ECL |
5,342 |
|
(1,313) |
|
(1,891) |
|
5,337 |
|
7,475 |
|
Income statement (releases)/charges |
645 |
|
3,755 |
|
3,525 |
|
4,051 |
|
11,976 |
|
Write-offs |
- |
|
- |
|
(7,515) |
|
(10,514) |
|
(18,029) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
4,800 |
|
4,918 |
|
9,718 |
|
Unwind of discount |
- |
|
- |
|
2,541 |
|
(1,103) |
|
1,438 |
|
Currency translation differences |
213 |
|
(11) |
|
(30) |
|
60 |
|
232 |
|
Balance at 30 June 2026 |
30,487 |
|
9,980 |
|
75,977 |
|
3,296 |
|
119,740 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
7,542 |
|
1,387 |
|
15,792 |
|
3,025 |
|
27,746 |
|
Collectively assessed |
22,945 |
|
8,593 |
|
60,185 |
|
271 |
|
91,994 |
|
Balance at 30 June 2026 |
30,487 |
|
9,980 |
|
75,977 |
|
3,296 |
|
119,740 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Consumer loans at amortised cost, gross: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
9,033,572 |
|
365,245 |
|
206,955 |
|
29,863 |
|
9,635,635 |
|
New financial asset originated or purchased |
5,097,751 |
|
68 |
|
- |
|
2,074 |
|
5,099,893 |
|
Transfer to Stage 1 |
220,490 |
|
(219,802) |
|
(688) |
|
- |
|
- |
|
Transfer to Stage 2 |
(545,515) |
|
570,272 |
|
(24,757) |
|
- |
|
- |
|
Transfer to Stage 3 |
(13,899) |
|
(84,664) |
|
98,563 |
|
- |
|
- |
|
Assets repaid |
(3,810,729) |
|
(69,483) |
|
(42,759) |
|
(8,234) |
|
(3,931,205) |
|
Resegmentation |
150 |
|
- |
|
- |
|
- |
|
150 |
|
Impact of modifications |
1,767 |
|
193 |
|
(2,832) |
|
(71) |
|
(943) |
|
Foreign exchange movement |
(21,473) |
|
(532) |
|
(409) |
|
(107) |
|
(22,521) |
|
Net other changes |
65,549 |
|
(126,680) |
|
55,840 |
|
1,904 |
|
(3,387) |
|
Write-offs |
- |
|
(5) |
|
(64,083) |
|
(6,350) |
|
(70,438) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
15,690 |
|
3,430 |
|
19,120 |
|
Unwind of discount |
- |
|
- |
|
3,429 |
|
2,560 |
|
5,989 |
|
Currency translation differences |
18,867 |
|
36 |
|
1,118 |
|
148 |
|
20,169 |
|
Balance at 30 June 2026 |
10,046,530 |
|
434,648 |
|
246,067 |
|
25,217 |
|
10,752,462 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
- |
|
3,964 |
|
55,389 |
|
3,031 |
|
62,384 |
|
Collectively assessed |
10,046,530 |
|
430,684 |
|
190,678 |
|
22,186 |
|
10,690,078 |
|
Balance at 30 June 2026 |
10,046,530 |
|
434,648 |
|
246,067 |
|
25,217 |
|
10,752,462 |
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
60,304 |
|
35,347 |
|
106,928 |
|
1,077 |
|
203,656 |
|
New financial asset originated or purchased |
46,163 |
|
1 |
|
- |
|
36 |
|
46,200 |
|
Transfer to Stage 1 |
18,598 |
|
(18,594) |
|
(4) |
|
- |
|
- |
|
Transfer to Stage 2 |
(30,555) |
|
42,982 |
|
(12,427) |
|
- |
|
- |
|
Transfer to Stage 3 |
(3,270) |
|
(12,461) |
|
15,731 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(10,774) |
|
18,601 |
|
30,871 |
|
- |
|
38,698 |
|
Assets repaid |
(37,467) |
|
(22,175) |
|
(29,364) |
|
(1,298) |
|
(90,304) |
|
Impact of modifications |
183 |
|
2 |
|
(905) |
|
12 |
|
(708) |
|
Foreign exchange movement |
(39) |
|
(10) |
|
(197) |
|
2 |
|
(244) |
|
Net other measurement of ECL |
30,408 |
|
7,657 |
|
56,581 |
|
1,194 |
|
95,840 |
|
Income statement (releases)/charges |
13,247 |
|
16,003 |
|
60,286 |
|
(54) |
|
89,482 |
|
Write-offs |
- |
|
(5) |
|
(64,083) |
|
(6,350) |
|
(70,438) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
15,690 |
|
3,430 |
|
19,120 |
|
Unwind of discount |
- |
|
- |
|
3,429 |
|
2,560 |
|
5,989 |
|
Currency translation differences |
272 |
|
11 |
|
598 |
|
50 |
|
931 |
|
Balance at 30 June 2026 |
73,823 |
|
51,356 |
|
122,848 |
|
713 |
|
248,740 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
- |
|
714 |
|
12,714 |
|
2,594 |
|
16,022 |
|
Collectively assessed |
73,823 |
|
50,642 |
|
110,134 |
|
(1,881) |
|
232,718 |
|
Balance at 30 June 2026 |
73,823 |
|
51,356 |
|
122,848 |
|
713 |
|
248,740 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Gold - pawn loans at amortised cost, gross: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
226,847 |
|
8,878 |
|
4,807 |
|
- |
|
240,532 |
|
New financial asset originated or purchased |
442,141 |
|
- |
|
- |
|
- |
|
442,141 |
|
Transfer to Stage 1 |
6,617 |
|
(6,617) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(21,237) |
|
22,446 |
|
(1,209) |
|
- |
|
- |
|
Transfer to Stage 3 |
(6,419) |
|
(3,059) |
|
9,478 |
|
- |
|
- |
|
Assets repaid |
(326,117) |
|
(8,862) |
|
(4,454) |
|
- |
|
(339,433) |
|
Foreign exchange movement |
(1) |
|
- |
|
- |
|
- |
|
(1) |
|
Net other changes |
1,177 |
|
242 |
|
154 |
|
- |
|
1,573 |
|
Write-offs |
- |
|
- |
|
(1) |
|
- |
|
(1) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
(9) |
|
- |
|
(9) |
|
Unwind of discount |
- |
|
- |
|
4 |
|
- |
|
4 |
|
Balance at 30 June 2026 |
323,008 |
|
13,028 |
|
8,770 |
|
- |
|
344,806 |
|
|
|
|
|
|
|
|
|
|
|
|
Collectively assessed |
323,008 |
|
13,028 |
|
8,770 |
|
- |
|
344,806 |
|
Balance at 30 June 2026 |
323,008 |
|
13,028 |
|
8,770 |
|
- |
|
344,806 |
|
|
|
|
|
|
|
|
|
|
|
|
Gold - pawn loans at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
13 |
|
3 |
|
1,181 |
|
- |
|
1,197 |
|
New financial asset originated or purchased |
246 |
|
- |
|
- |
|
- |
|
246 |
|
Transfer to Stage 1 |
3 |
|
(3) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(8) |
|
50 |
|
(42) |
|
- |
|
- |
|
Transfer to Stage 3 |
(204) |
|
(4) |
|
208 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(1) |
|
(32) |
|
552 |
|
- |
|
519 |
|
Assets repaid |
(19) |
|
(3) |
|
(155) |
|
- |
|
(177) |
|
Net other measurement of ECL |
34 |
|
4 |
|
140 |
|
- |
|
178 |
|
Income statement (releases)/charges |
51 |
|
12 |
|
703 |
|
- |
|
766 |
|
Write-offs |
- |
|
- |
|
(1) |
|
- |
|
(1) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
(9) |
|
- |
|
(9) |
|
Unwind of discount |
- |
|
- |
|
4 |
|
- |
|
4 |
|
Currency translation differences |
(1) |
|
- |
|
- |
|
- |
|
(1) |
|
Balance at 30 June 2026 |
63 |
|
15 |
|
1,878 |
|
- |
|
1,956 |
|
|
|
|
|
|
|
|
|
|
|
|
Collectively assessed |
63 |
|
15 |
|
1,878 |
|
- |
|
1,956 |
|
Balance at 30 June 2026 |
63 |
|
15 |
|
1,878 |
|
- |
|
1,956 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Loans to customer at amortised cost, gross: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
31,911,054 |
|
888,003 |
|
557,477 |
|
144,479 |
|
33,501,013 |
|
New financial asset originated or purchased |
11,395,983 |
|
39,563 |
|
25,423 |
|
22,680 |
|
11,483,649 |
|
Transfer to Stage 1 |
358,412 |
|
(357,203) |
|
(1,209) |
|
- |
|
- |
|
Transfer to Stage 2 |
(855,432) |
|
890,787 |
|
(35,355) |
|
- |
|
- |
|
Transfer to Stage 3 |
(20,702) |
|
(167,744) |
|
188,446 |
|
- |
|
- |
|
Assets repaid |
(8,265,360) |
|
(217,172) |
|
(132,481) |
|
(26,898) |
|
(8,641,911) |
|
Impact of modifications |
(55) |
|
367 |
|
(2,494) |
|
(26) |
|
(2,208) |
|
Foreign exchange movement |
103,808 |
|
5,659 |
|
(933) |
|
(1,096) |
|
107,438 |
|
Net other changes |
32,660 |
|
(68,792) |
|
37,746 |
|
5,889 |
|
7,503 |
|
Write-offs |
- |
|
- |
|
(71,483) |
|
(1,801) |
|
(73,284) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
30,557 |
|
13,578 |
|
44,135 |
|
Unwind of discount |
- |
|
- |
|
6,815 |
|
(424) |
|
6,391 |
|
Currency translation differences |
33,031 |
|
1,312 |
|
2,089 |
|
(84) |
|
36,348 |
|
Balance at 30 June 2025 |
34,693,399 |
|
1,014,780 |
|
604,598 |
|
156,297 |
|
36,469,074 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
4,421,212 |
|
- |
|
267,735 |
|
90,697 |
|
4,779,644 |
|
Collectively assessed |
30,272,187 |
|
1,014,780 |
|
336,863 |
|
65,600 |
|
31,689,430 |
|
Balance at 30 June 2025 |
34,693,399 |
|
1,014,780 |
|
604,598 |
|
156,297 |
|
36,469,074 |
|
|
|
|
|
|
|
|
|
|
|
|
Loans to customer at amortised cost, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
127,572 |
|
39,361 |
|
238,222 |
|
25,157 |
|
430,312 |
|
New financial asset originated or purchased |
72,998 |
|
1,874 |
|
3,522 |
|
3,004 |
|
81,398 |
|
Transfer to Stage 1 |
15,709 |
|
(15,145) |
|
(564) |
|
- |
|
- |
|
Transfer to Stage 2 |
(21,810) |
|
32,617 |
|
(10,807) |
|
- |
|
- |
|
Transfer to Stage 3 |
(930) |
|
(13,554) |
|
14,484 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(8,139) |
|
7,905 |
|
39,316 |
|
- |
|
39,082 |
|
Assets repaid |
(47,809) |
|
(15,321) |
|
(54,952) |
|
(16,258) |
|
(134,340) |
|
Impact of modifications |
(142) |
|
32 |
|
(832) |
|
(13) |
|
(955) |
|
Foreign exchange movement |
776 |
|
297 |
|
1,205 |
|
333 |
|
2,611 |
|
Net other measurement of ECL |
(3,293) |
|
2,451 |
|
75,981 |
|
1,104 |
|
76,243 |
|
Income statement (releases)/charges |
7,360 |
|
1,156 |
|
67,353 |
|
(11,830) |
|
64,039 |
|
Write-offs |
- |
|
- |
|
(71,483) |
|
(1,801) |
|
(73,284) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
30,557 |
|
13,578 |
|
44,135 |
|
Unwind of discount |
- |
|
- |
|
6,815 |
|
(424) |
|
6,391 |
|
Currency translation differences |
87 |
|
11 |
|
(564) |
|
1 |
|
(465) |
|
Balance at 30 June 2025 |
135,019 |
|
40,528 |
|
270,900 |
|
24,681 |
|
471,128 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
33,000 |
|
- |
|
129,333 |
|
15,596 |
|
177,929 |
|
Collectively assessed |
102,019 |
|
40,528 |
|
141,567 |
|
9,085 |
|
293,199 |
|
Balance at 30 June 2025 |
135,019 |
|
40,528 |
|
270,900 |
|
24,681 |
|
471,128 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Commercial loans at amortised cost, gross: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
11,630,625 |
|
278,071 |
|
188,704 |
|
15,271 |
|
12,112,671 |
|
New financial asset originated or purchased |
4,338,978 |
|
26,342 |
|
22,701 |
|
18,533 |
|
4,406,554 |
|
Transfer to Stage 1 |
25,106 |
|
(25,106) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(201,598) |
|
201,598 |
|
- |
|
- |
|
- |
|
Transfer to Stage 3 |
(68) |
|
(28,246) |
|
28,314 |
|
- |
|
- |
|
Assets repaid |
(3,161,453) |
|
(107,410) |
|
(49,300) |
|
(14,355) |
|
(3,332,518) |
|
Resegmentation |
58,703 |
|
- |
|
- |
|
- |
|
58,703 |
|
Impact of modifications |
(140) |
|
(222) |
|
264 |
|
- |
|
(98) |
|
Foreign exchange movement |
64,819 |
|
2,518 |
|
(521) |
|
(371) |
|
66,445 |
|
Net other changes |
(34,141) |
|
5,035 |
|
(288) |
|
(497) |
|
(29,891) |
|
Write-offs |
- |
|
- |
|
(508) |
|
(518) |
|
(1,026) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
1,207 |
|
11,999 |
|
13,206 |
|
Unwind of discount |
- |
|
- |
|
3,738 |
|
238 |
|
3,976 |
|
Currency translation differences |
14,268 |
|
749 |
|
958 |
|
1 |
|
15,976 |
|
Balance at 30 June 2025 |
12,735,099 |
|
353,329 |
|
195,269 |
|
30,301 |
|
13,313,998 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
3,671,437 |
|
- |
|
189,068 |
|
27,068 |
|
3,887,573 |
|
Collectively assessed |
9,063,662 |
|
353,329 |
|
6,201 |
|
3,233 |
|
9,426,425 |
|
Balance at 30 June 2025 |
12,735,099 |
|
353,329 |
|
195,269 |
|
30,301 |
|
13,313,998 |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans at amortised cost, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
39,982 |
|
6,469 |
|
105,529 |
|
5,754 |
|
157,734 |
|
New financial asset originated or purchased |
15,121 |
|
446 |
|
2,974 |
|
2,243 |
|
20,784 |
|
Transfer to Stage 1 |
723 |
|
(723) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(2,357) |
|
2,357 |
|
- |
|
- |
|
- |
|
Transfer to Stage 3 |
- |
|
(29) |
|
29 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(636) |
|
1,054 |
|
3,820 |
|
- |
|
4,238 |
|
Assets repaid |
(6,889) |
|
(1,894) |
|
(6,543) |
|
(13,324) |
|
(28,650) |
|
Resegmentation |
94 |
|
- |
|
- |
|
- |
|
94 |
|
Impact of modifications |
- |
|
2 |
|
123 |
|
- |
|
125 |
|
Foreign exchange movement |
726 |
|
273 |
|
933 |
|
(170) |
|
1,762 |
|
Net other measurement of ECL |
(2,147) |
|
(1,929) |
|
3,487 |
|
1,383 |
|
794 |
|
Income statement (releases)/charges |
4,635 |
|
(443) |
|
4,823 |
|
(9,868) |
|
(853) |
|
Write-offs |
- |
|
- |
|
(508) |
|
(518) |
|
(1,026) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
1,207 |
|
11,999 |
|
13,206 |
|
Unwind of discount |
- |
|
- |
|
3,738 |
|
238 |
|
3,976 |
|
Currency translation differences |
15 |
|
(2) |
|
(892) |
|
- |
|
(879) |
|
Balance at 30 June 2025 |
44,632 |
|
6,024 |
|
113,897 |
|
7,605 |
|
172,158 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
28,453 |
|
- |
|
109,783 |
|
6,474 |
|
144,710 |
|
Collectively assessed |
16,179 |
|
6,024 |
|
4,114 |
|
1,131 |
|
27,448 |
|
Balance at 30 June 2025 |
44,632 |
|
6,024 |
|
113,897 |
|
7,605 |
|
172,158 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Residential mortgage loans at amortised cost, gross: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
7,253,431 |
|
145,686 |
|
60,847 |
|
37,664 |
|
7,497,628 |
|
New financial asset originated or purchased |
1,096,210 |
|
- |
|
192 |
|
1,335 |
|
1,097,737 |
|
Transfer to Stage 1 |
102,268 |
|
(101,927) |
|
(341) |
|
- |
|
- |
|
Transfer to Stage 2 |
(139,304) |
|
147,978 |
|
(8,674) |
|
- |
|
- |
|
Transfer to Stage 3 |
(2,196) |
|
(18,493) |
|
20,689 |
|
- |
|
- |
|
Assets repaid |
(713,890) |
|
(15,061) |
|
(15,183) |
|
(4,957) |
|
(749,091) |
|
Resegmentation |
(20) |
|
- |
|
- |
|
- |
|
(20) |
|
Impact of modifications |
878 |
|
(18) |
|
151 |
|
(19) |
|
992 |
|
Foreign exchange movement |
19,200 |
|
403 |
|
(171) |
|
(140) |
|
19,292 |
|
Net other changes |
(2,885) |
|
(10,859) |
|
2,401 |
|
2,487 |
|
(8,856) |
|
Write-offs |
- |
|
- |
|
(4,516) |
|
(280) |
|
(4,796) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
2,392 |
|
559 |
|
2,951 |
|
Unwind of discount |
- |
|
- |
|
264 |
|
235 |
|
499 |
|
Currency translation differences |
(1,910) |
|
17 |
|
(28) |
|
(10) |
|
(1,931) |
|
Balance at 30 June 2025 |
7,611,782 |
|
147,726 |
|
58,023 |
|
36,874 |
|
7,854,405 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
624 |
|
- |
|
17,127 |
|
5,100 |
|
22,851 |
|
Collectively assessed |
7,611,158 |
|
147,726 |
|
40,896 |
|
31,774 |
|
7,831,554 |
|
Balance at 30 June 2025 |
7,611,782 |
|
147,726 |
|
58,023 |
|
36,874 |
|
7,854,405 |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans at amortised cost, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
2,745 |
|
1,157 |
|
7,865 |
|
2,858 |
|
14,625 |
|
New financial asset originated or purchased |
931 |
|
- |
|
150 |
|
362 |
|
1,443 |
|
Transfer to Stage 1 |
623 |
|
(576) |
|
(47) |
|
- |
|
- |
|
Transfer to Stage 2 |
(290) |
|
903 |
|
(613) |
|
- |
|
- |
|
Transfer to Stage 3 |
(14) |
|
(554) |
|
568 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(285) |
|
(148) |
|
991 |
|
- |
|
558 |
|
Assets repaid |
(318) |
|
(164) |
|
(2,638) |
|
(850) |
|
(3,970) |
|
Impact of modifications |
6 |
|
- |
|
73 |
|
(1) |
|
78 |
|
Foreign exchange movement |
2 |
|
(5) |
|
25 |
|
(7) |
|
15 |
|
Net other measurement of ECL |
941 |
|
939 |
|
4,324 |
|
(69) |
|
6,135 |
|
Income statement (releases)/charges |
1,596 |
|
395 |
|
2,833 |
|
(565) |
|
4,259 |
|
Write-offs |
- |
|
- |
|
(4,516) |
|
(280) |
|
(4,796) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
2,392 |
|
559 |
|
2,951 |
|
Unwind of discount |
- |
|
- |
|
264 |
|
235 |
|
499 |
|
Currency translation differences |
(6) |
|
- |
|
(2) |
|
(1) |
|
(9) |
|
Balance at 30 June 2025 |
4,335 |
|
1,552 |
|
8,836 |
|
2,806 |
|
17,529 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
- |
|
- |
|
2,236 |
|
112 |
|
2,348 |
|
Collectively assessed |
4,335 |
|
1,552 |
|
6,600 |
|
2,694 |
|
15,181 |
|
Balance at 30 June 2025 |
4,335 |
|
1,552 |
|
8,836 |
|
2,806 |
|
17,529 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Micro and SME loans at amortised cost, gross: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
5,897,357 |
|
196,718 |
|
190,321 |
|
63,586 |
|
6,347,982 |
|
New financial asset originated or purchased |
1,807,563 |
|
751 |
|
221 |
|
721 |
|
1,809,256 |
|
Transfer to Stage 1 |
64,772 |
|
(64,525) |
|
(247) |
|
- |
|
- |
|
Transfer to Stage 2 |
(140,314) |
|
148,640 |
|
(8,326) |
|
- |
|
- |
|
Transfer to Stage 3 |
(6,328) |
|
(49,595) |
|
55,923 |
|
- |
|
- |
|
Assets repaid |
(1,382,193) |
|
(31,391) |
|
(28,280) |
|
(2,142) |
|
(1,444,006) |
|
Resegmentation |
(58,607) |
|
- |
|
- |
|
- |
|
(58,607) |
|
Impact of modifications |
(34) |
|
384 |
|
(488) |
|
(2) |
|
(140) |
|
Foreign exchange movement |
13,665 |
|
2,168 |
|
(466) |
|
(634) |
|
14,733 |
|
Net other changes |
21,084 |
|
248 |
|
6,234 |
|
1,439 |
|
29,005 |
|
Write-offs |
- |
|
- |
|
(11,452) |
|
(735) |
|
(12,187) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
7,387 |
|
448 |
|
7,835 |
|
Unwind of discount |
- |
|
- |
|
1,774 |
|
(776) |
|
998 |
|
Currency translation differences |
5,230 |
|
471 |
|
764 |
|
(70) |
|
6,395 |
|
Balance at 30 June 2025 |
6,222,195 |
|
203,869 |
|
213,365 |
|
61,835 |
|
6,701,264 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
749,114 |
|
- |
|
48,695 |
|
57,375 |
|
855,184 |
|
Collectively assessed |
5,473,081 |
|
203,869 |
|
164,670 |
|
4,460 |
|
5,846,080 |
|
Balance at 30 June 2025 |
6,222,195 |
|
203,869 |
|
213,365 |
|
61,835 |
|
6,701,264 |
|
|
|
|
|
|
|
|
|
|
|
|
Micro and SME loans at amortised cost, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
19,287 |
|
5,374 |
|
62,062 |
|
12,281 |
|
99,004 |
|
New financial asset originated or purchased |
9,952 |
|
4 |
|
3 |
|
108 |
|
10,067 |
|
Transfer to Stage 1 |
1,467 |
|
(1,277) |
|
(190) |
|
- |
|
- |
|
Transfer to Stage 2 |
(1,546) |
|
2,858 |
|
(1,312) |
|
- |
|
- |
|
Transfer to Stage 3 |
(326) |
|
(2,490) |
|
2,816 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(667) |
|
801 |
|
8,246 |
|
- |
|
8,380 |
|
Assets repaid |
(4,469) |
|
(883) |
|
(12,480) |
|
(365) |
|
(18,197) |
|
Resegmentation |
(93) |
|
- |
|
- |
|
- |
|
(93) |
|
Impact of modifications |
3 |
|
29 |
|
(134) |
|
(1) |
|
(103) |
|
Foreign exchange movement |
21 |
|
12 |
|
81 |
|
520 |
|
634 |
|
Net other measurement of ECL |
2,020 |
|
1,747 |
|
16,431 |
|
(1,343) |
|
18,855 |
|
Income statement (releases)/charges |
6,362 |
|
801 |
|
13,461 |
|
(1,081) |
|
19,543 |
|
Write-offs |
- |
|
- |
|
(11,452) |
|
(735) |
|
(12,187) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
7,387 |
|
448 |
|
7,835 |
|
Unwind of discount |
- |
|
- |
|
1,774 |
|
(776) |
|
998 |
|
Currency translation differences |
(2) |
|
(10) |
|
117 |
|
4 |
|
109 |
|
Balance at 30 June 2025 |
25,647 |
|
6,165 |
|
73,349 |
|
10,141 |
|
115,302 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
4,547 |
|
- |
|
13,519 |
|
8,970 |
|
27,036 |
|
Collectively assessed |
21,100 |
|
6,165 |
|
59,830 |
|
1,171 |
|
88,266 |
|
Balance at 30 June 2025 |
25,647 |
|
6,165 |
|
73,349 |
|
10,141 |
|
115,302 |
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Consumer loans at amortised cost, gross: |
|
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
|
Balance at 31 December 2024 |
6,983,775 |
|
261,879 |
|
114,878 |
|
27,958 |
|
7,388,490 |
|
|
New financial asset originated or purchased |
3,972,137 |
|
12,470 |
|
933 |
|
2,091 |
|
3,987,631 |
|
|
Transfer to Stage 1 |
162,501 |
|
(161,880) |
|
(621) |
|
- |
|
- |
|
|
Transfer to Stage 2 |
(363,888) |
|
381,605 |
|
(17,717) |
|
- |
|
- |
|
|
Transfer to Stage 3 |
(11,749) |
|
(70,580) |
|
82,329 |
|
- |
|
- |
|
|
Assets repaid |
(2,867,247) |
|
(57,940) |
|
(38,193) |
|
(5,444) |
|
(2,968,824) |
|
|
Resegmentation |
(76) |
|
- |
|
- |
|
- |
|
(76) |
|
|
Impact of modifications |
(759) |
|
223 |
|
(2,421) |
|
(5) |
|
(2,962) |
|
|
Foreign exchange movement |
6,126 |
|
570 |
|
225 |
|
49 |
|
6,970 |
|
|
Net other changes |
48,335 |
|
(63,246) |
|
29,331 |
|
2,460 |
|
16,880 |
|
|
Write-offs |
- |
|
- |
|
(55,004) |
|
(268) |
|
(55,272) |
|
|
Recoveries of amounts previously written off |
- |
|
- |
|
19,572 |
|
572 |
|
20,144 |
|
|
Unwind of discount |
- |
|
- |
|
1,039 |
|
(121) |
|
918 |
|
|
Currency translation differences |
15,443 |
|
75 |
|
395 |
|
(5) |
|
15,908 |
|
|
Balance at 30 June 2025 |
7,944,598 |
|
303,176 |
|
134,746 |
|
27,287 |
|
8,409,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
37 |
|
- |
|
12,845 |
|
1,154 |
|
14,036 |
|
|
Collectively assessed |
7,944,561 |
|
303,176 |
|
121,901 |
|
26,133 |
|
8,395,771 |
|
|
Balance at 30 June 2025 |
7,944,598 |
|
303,176 |
|
134,746 |
|
27,287 |
|
8,409,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer loans at amortised cost, ECL: |
|
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
|
Balance at 31 December 2024 |
65,545 |
|
26,356 |
|
61,770 |
|
4,264 |
|
157,935 |
|
|
New financial asset originated or purchased |
46,993 |
|
1,424 |
|
337 |
|
291 |
|
49,045 |
|
|
Transfer to Stage 1 |
12,895 |
|
(12,568) |
|
(327) |
|
- |
|
- |
|
|
Transfer to Stage 2 |
(17,616) |
|
26,482 |
|
(8,866) |
|
- |
|
- |
|
|
Transfer to Stage 3 |
(590) |
|
(10,481) |
|
11,071 |
|
- |
|
- |
|
|
Impact on ECL of exposures transferred between stages during the year |
(6,550) |
|
6,213 |
|
26,242 |
|
- |
|
25,905 |
|
|
Assets repaid |
(36,130) |
|
(12,379) |
|
(33,246) |
|
(1,719) |
|
(83,474) |
|
|
Resegmentation |
(1) |
|
- |
|
- |
|
- |
|
(1) |
|
|
Impact of modifications |
(151) |
|
1 |
|
(894) |
|
(11) |
|
(1,055) |
|
|
Foreign exchange movement |
27 |
|
17 |
|
166 |
|
(10) |
|
200 |
|
|
Net other measurement of ECL |
(4,100) |
|
1,697 |
|
51,741 |
|
1,133 |
|
50,471 |
|
|
Income statement (releases)/charges |
(5,223) |
|
406 |
|
46,224 |
|
(316) |
|
41,091 |
|
|
Write-offs |
- |
|
- |
|
(55,004) |
|
(268) |
|
(55,272) |
|
|
Recoveries of amounts previously written off |
- |
|
- |
|
19,572 |
|
572 |
|
20,144 |
|
|
Unwind of discount |
- |
|
- |
|
1,039 |
|
(121) |
|
918 |
|
|
Currency translation differences |
80 |
|
23 |
|
213 |
|
(2) |
|
314 |
|
|
Balance at 30 June 2025 |
60,402 |
|
26,785 |
|
73,814 |
|
4,129 |
|
165,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
- |
|
- |
|
3,795 |
|
40 |
|
3,835 |
|
|
Collectively assessed |
60,402 |
|
26,785 |
|
70,019 |
|
4,089 |
|
161,295 |
|
|
Balance at 30 June 2025 |
60,402 |
|
26,785 |
|
73,814 |
|
4,129 |
|
165,130 |
|
9. Loans to customers, factoring and finance lease receivables (continued)
Expected credit loss (continued)
|
Gold - pawn loans at amortised cost, gross: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
145,866 |
|
5,649 |
|
2,727 |
|
- |
|
154,242 |
|
New financial asset originated or purchased |
181,095 |
|
- |
|
1,376 |
|
- |
|
182,471 |
|
Transfer to Stage 1 |
3,765 |
|
(3,765) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(10,328) |
|
10,966 |
|
(638) |
|
- |
|
- |
|
Transfer to Stage 3 |
(361) |
|
(830) |
|
1,191 |
|
- |
|
- |
|
Assets repaid |
(140,577) |
|
(5,370) |
|
(1,525) |
|
- |
|
(147,472) |
|
Foreign exchange movement |
(2) |
|
- |
|
- |
|
- |
|
(2) |
|
Net other changes |
267 |
|
30 |
|
68 |
|
- |
|
365 |
|
Write-offs |
- |
|
- |
|
(3) |
|
- |
|
(3) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
(1) |
|
- |
|
(1) |
|
Balance at 30 June 2025 |
179,725 |
|
6,680 |
|
3,195 |
|
- |
|
189,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Collectively assessed |
179,725 |
|
6,680 |
|
3,195 |
|
- |
|
189,600 |
|
Balance at 30 June 2025 |
179,725 |
|
6,680 |
|
3,195 |
|
- |
|
189,600 |
|
|
|
|
|
|
|
|
|
|
|
|
Gold - pawn loans at amortised cost, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
13 |
|
5 |
|
996 |
|
- |
|
1,014 |
|
New financial asset originated or purchased |
1 |
|
- |
|
58 |
|
- |
|
59 |
|
Transfer to Stage 1 |
1 |
|
(1) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(1) |
|
17 |
|
(16) |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(1) |
|
(15) |
|
17 |
|
- |
|
1 |
|
Assets repaid |
(3) |
|
(1) |
|
(45) |
|
- |
|
(49) |
|
Net other measurement of ECL |
(7) |
|
(3) |
|
(2) |
|
- |
|
(12) |
|
Income statement (releases)/charges |
(10) |
|
(3) |
|
12 |
|
- |
|
(1) |
|
Write-offs |
- |
|
- |
|
(3) |
|
- |
|
(3) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
(1) |
|
- |
|
(1) |
|
Balance at 30 June 2025 |
3 |
|
2 |
|
1,004 |
|
- |
|
1,009 |
|
|
|
|
|
|
|
|
|
|
|
|
Collectively assessed |
3 |
|
2 |
|
1,004 |
|
- |
|
1,009 |
|
Balance at 30 June 2025 |
3 |
|
2 |
|
1,004 |
|
- |
|
1,009 |
Concentration of loans to customers
As at 30 June 2026, the concentration of loans granted by the Group to the ten largest third-party borrowers comprised GEL 2,772,740 accounting for 6% of the gross loan portfolio of the Group (31 December 2025: GEL 2,216,210 and 6% respectively). An allowance of GEL 8,237 (31 December 2025: GEL 7,595) has been established against these loans.
As at 30 June 2026, the concentration of loans granted by the Group to the ten largest third-party group of borrowers (borrower and its related parties) comprised GEL 4,002,718 accounting for 9% of the gross loan portfolio of the Group (31 December 2025: GEL 3,424,167 and 9% respectively). An allowance of GEL 13,268 (31 December 2025: GEL 8,416) has been established against these loans.
9. Loans to customers, factoring and finance lease receivables (continued)
Concentration of loans to customers (continued)
As at 30 June 2026 and 31 December 2025 loans were principally issued within Georgia and Armenia, and their distribution by industry sector was as follows:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Individuals |
22,796,810 |
|
20,695,873 |
|
Real estate |
3,886,161 |
|
3,308,936 |
|
Trade |
3,512,406 |
|
3,231,415 |
|
Construction |
2,461,675 |
|
2,114,102 |
|
Agriculture |
2,435,119 |
|
2,338,460 |
|
Electricity, gas and water supply |
1,577,479 |
|
1,530,711 |
|
Manufacturing |
1,198,417 |
|
1,195,557 |
|
Hospitality |
1,055,754 |
|
1,055,365 |
|
Financial intermediation |
848,431 |
|
812,231 |
|
Mining and quarrying |
795,579 |
|
664,843 |
|
Transport and communication |
724,254 |
|
632,136 |
|
Service |
698,227 |
|
684,933 |
|
Other |
2,298,699 |
|
1,710,590 |
|
Loans to customers, gross |
44,289,011 |
|
39,975,152 |
|
Less - Allowance for expected credit loss |
(580,046) |
|
(525,589) |
|
Loans to customers, net |
43,708,965 |
|
39,449,563 |
As at 30 June 2026 the amount of loans to customers for which the calculated ECL is nil due to the existence of high-quality collateral was GEL 412,552 (31 December 2025: GEL 511,044).
Finance lease receivables
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Factoring receivables, gross |
221,958 |
|
177,756 |
|
Less - Allowance for expected credit loss |
(355) |
|
(422) |
|
Factoring receivables, net |
221,603 |
|
177,334 |
.
The difference between the minimum lease payments to be received in the future and gross value of the finance lease receivables represents unearned finance income.
Future minimum lease payments to be received after 30 June 2026 and 31 December 2025 are as follows:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Within 1 year |
203,014 |
|
222,344 |
|
From 1 to 2 years |
139,342 |
|
124,629 |
|
From 2 to 3 years |
99,072 |
|
92,860 |
|
From 3 to 4 years |
59,942 |
|
48,857 |
|
From 4 to 5 years |
41,281 |
|
33,506 |
|
More than 5 years |
106,506 |
|
70,154 |
|
Minimum lease payment receivables |
649,157 |
|
592,350 |
9. Loans to customers, factoring and finance lease receivables (continued)
Finance lease receivables (continued)
Movements of the gross finance lease receivables and respective allowance for expected credit loss/impairment of finance lease receivables are as follows:
|
Finance lease receivables, gross |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
423,158 |
|
2,835 |
|
5,009 |
|
13,791 |
|
444,793 |
|
New financial asset originated or purchased |
173,351 |
|
- |
|
- |
|
4,681 |
|
178,032 |
|
Transfer to Stage 1 |
100 |
|
(17) |
|
(83) |
|
- |
|
- |
|
Transfer to Stage 2 |
(263) |
|
332 |
|
(69) |
|
- |
|
- |
|
Transfer to Stage 3 |
(692) |
|
(66) |
|
758 |
|
- |
|
- |
|
Assets repaid |
(113,662) |
|
(572) |
|
(649) |
|
(4,623) |
|
(119,506) |
|
Impact of modifications |
(22) |
|
- |
|
- |
|
- |
|
(22) |
|
Foreign exchange movement |
(10,364) |
|
5 |
|
(4) |
|
(659) |
|
(11,022) |
|
Net other changes |
5,183 |
|
63 |
|
(766) |
|
1,357 |
|
5,837 |
|
Write-offs |
- |
|
- |
|
(180) |
|
(743) |
|
(923) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
87 |
|
309 |
|
396 |
|
Unwind of discount |
- |
|
- |
|
609 |
|
(17) |
|
592 |
|
Currency translation differences |
4,635 |
|
(44) |
|
(4) |
|
9 |
|
4,596 |
|
Balance at 30 June 2026 |
481,424 |
|
2,536 |
|
4,708 |
|
14,105 |
|
502,773 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
212,461 |
|
- |
|
1,415 |
|
315 |
|
214,191 |
|
Collectively assessed |
268,963 |
|
2,536 |
|
3,293 |
|
13,790 |
|
288,582 |
|
Balance at 30 June 2026 |
481,424 |
|
2,536 |
|
4,708 |
|
14,105 |
|
502,773 |
|
|
|
|
|
|
|
|
|
|
|
|
Finance lease receivables, ECL: |
|
||||||||
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
2,955 |
|
190 |
|
3,593 |
|
(712) |
|
6,026 |
|
New financial asset originated or purchased |
873 |
|
- |
|
- |
|
- |
|
873 |
|
Transfer to Stage 1 |
1 |
|
- |
|
(1) |
|
- |
|
- |
|
Transfer to Stage 2 |
(2) |
|
38 |
|
(36) |
|
- |
|
- |
|
Transfer to Stage 3 |
(51) |
|
(10) |
|
61 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
- |
|
(11) |
|
42 |
|
- |
|
31 |
|
Assets repaid |
(987) |
|
4 |
|
15 |
|
(881) |
|
(1,849) |
|
Foreign exchange movement |
(50) |
|
- |
|
- |
|
(5) |
|
(55) |
|
Net other measurement of ECL |
(475) |
|
(88) |
|
(712) |
|
467 |
|
(808) |
|
Income statement (releases)/charges |
(691) |
|
(67) |
|
(631) |
|
(419) |
|
(1,808) |
|
Write-offs |
- |
|
- |
|
(180) |
|
(743) |
|
(923) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
87 |
|
309 |
|
396 |
|
Unwind of discount |
- |
|
- |
|
609 |
|
(17) |
|
592 |
|
Currency translation differences |
22 |
|
(2) |
|
(7) |
|
2 |
|
15 |
|
Balance at 30 June 2026 |
2,286 |
|
121 |
|
3,471 |
|
(1,580) |
|
4,298 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
1,013 |
|
- |
|
232 |
|
(16) |
|
1,229 |
|
Collectively assessed |
1,273 |
|
121 |
|
3,239 |
|
(1,564) |
|
3,069 |
|
Balance at 30 June 2026 |
2,286 |
|
121 |
|
3,471 |
|
(1,580) |
|
4,298 |
9. Loans to customers, factoring and finance lease receivables (continued)
Finance lease receivables (continued)
|
Finance lease receivables, gross |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
400,515 |
|
956 |
|
9,300 |
|
17,451 |
|
428,222 |
|
New financial asset originated or purchased |
148,632 |
|
- |
|
- |
|
2,281 |
|
150,913 |
|
Transfer to Stage 1 |
267 |
|
(267) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(1,723) |
|
1,752 |
|
(29) |
|
- |
|
- |
|
Transfer to Stage 3 |
(315) |
|
(1,107) |
|
1,422 |
|
- |
|
- |
|
Assets repaid |
(95,606) |
|
(332) |
|
(700) |
|
(4,389) |
|
(101,027) |
|
Impact of modifications |
69 |
|
- |
|
- |
|
- |
|
69 |
|
Foreign exchange movement |
(2,907) |
|
(107) |
|
(411) |
|
(174) |
|
(3,599) |
|
Net other changes |
(17,417) |
|
17 |
|
599 |
|
566 |
|
(16,235) |
|
Write-offs |
- |
|
- |
|
(3,022) |
|
(100) |
|
(3,122) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
85 |
|
- |
|
85 |
|
Unwind of discount |
- |
|
- |
|
139 |
|
(113) |
|
26 |
|
Currency translation differences |
2,766 |
|
52 |
|
61 |
|
- |
|
2,879 |
|
Balance at 30 June 2025 |
434,281 |
|
964 |
|
7,444 |
|
15,522 |
|
458,211 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
138,299 |
|
- |
|
2,738 |
|
270 |
|
141,307 |
|
Collectively assessed |
295,982 |
|
964 |
|
4,706 |
|
15,252 |
|
316,904 |
|
Balance at 30 June 2025 |
434,281 |
|
964 |
|
7,444 |
|
15,522 |
|
458,211 |
|
|
|
|
|
|
|
|
|
|
|
|
Finance lease receivables, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
1,064 |
|
177 |
|
7,512 |
|
1,732 |
|
10,485 |
|
New financial asset originated or purchased |
700 |
|
- |
|
- |
|
- |
|
700 |
|
Transfer to Stage 1 |
29 |
|
(29) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(12) |
|
27 |
|
(15) |
|
- |
|
- |
|
Transfer to Stage 3 |
(104) |
|
(513) |
|
617 |
|
- |
|
- |
|
Impact on ECL of exposures transferred between stages during the year |
(28) |
|
102 |
|
126 |
|
- |
|
200 |
|
Assets repaid |
(510) |
|
(17) |
|
(411) |
|
(755) |
|
(1,693) |
|
Foreign exchange movement |
(6) |
|
1 |
|
(11) |
|
- |
|
(16) |
|
Net other measurement of ECL |
673 |
|
257 |
|
(90) |
|
596 |
|
1,436 |
|
Income statement (releases)/charges |
742 |
|
(172) |
|
216 |
|
(159) |
|
627 |
|
Write-offs |
- |
|
- |
|
(595) |
|
(100) |
|
(695) |
|
Recoveries of amounts previously written off |
- |
|
- |
|
(2,367) |
|
- |
|
(2,367) |
|
Unwind of discount |
- |
|
- |
|
139 |
|
(113) |
|
26 |
|
Currency translation differences |
(3) |
|
(1) |
|
5 |
|
- |
|
1 |
|
Balance at 30 June 2025 |
1,803 |
|
4 |
|
4,910 |
|
1,360 |
|
8,077 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
824 |
|
- |
|
226 |
|
11 |
|
1,061 |
|
Collectively assessed |
979 |
|
4 |
|
4,684 |
|
1,349 |
|
7,016 |
|
Balance at 30 June 2025 |
1,803 |
|
4 |
|
4,910 |
|
1,360 |
|
8,077 |
Factoring receivables
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Factoring receivables, gross |
221,958 |
|
177,756 |
|
Less - Allowance for expected credit loss |
(355) |
|
(422) |
|
Factoring receivables, net |
221,603 |
|
177,334 |
9. Loans to customers, factoring and finance lease receivables (continued)
Factoring receivables (continued)
|
Factoring receivables, gross |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
177,525 |
|
231 |
|
- |
|
- |
|
177,756 |
|
New financial asset originated or purchased |
142,470 |
|
- |
|
- |
|
- |
|
142,470 |
|
Transfer to Stage 1 |
185 |
|
(185) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(399) |
|
399 |
|
- |
|
- |
|
- |
|
Assets repaid |
(96,489) |
|
(48) |
|
- |
|
- |
|
(96,537) |
|
Foreign exchange movement |
(170) |
|
- |
|
- |
|
- |
|
(170) |
|
Net other changes |
(2,583) |
|
- |
|
- |
|
- |
|
(2,583) |
|
Currency translation differences |
1,019 |
|
3 |
|
- |
|
- |
|
1,022 |
|
Balance at 30 June 2026 |
221,558 |
|
400 |
|
- |
|
- |
|
221,958 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
75,214 |
|
- |
|
- |
|
- |
|
75,214 |
|
Collectively assessed |
146,344 |
|
400 |
|
- |
|
- |
|
146,744 |
|
Balance at 30 June 2026 |
221,558 |
|
400 |
|
- |
|
- |
|
221,958 |
|
|
|
|
|
|
|
|
|
|
|
|
Factoring receivables, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2025 |
361 |
|
61 |
|
- |
|
- |
|
422 |
|
New financial asset originated or purchased |
355 |
|
- |
|
- |
|
- |
|
355 |
|
Transfer to Stage 1 |
62 |
|
(62) |
|
- |
|
- |
|
- |
|
Transfer to Stage 2 |
(4) |
|
4 |
|
- |
|
- |
|
- |
|
Assets repaid |
(263) |
|
(13) |
|
- |
|
- |
|
(276) |
|
Foreign exchange movement |
(1) |
|
1 |
|
- |
|
- |
|
- |
|
Net other measurement of ECL |
(189) |
|
41 |
|
- |
|
- |
|
(148) |
|
Income statement (releases)/charges |
(40) |
|
(29) |
|
- |
|
- |
|
(69) |
|
Currency translation differences |
1 |
|
1 |
|
- |
|
- |
|
2 |
|
Balance at 30 June 2026 |
322 |
|
33 |
|
- |
|
- |
|
355 |
|
|
|
|
|
|
|
|
|
|
|
|
Individually assessed |
187 |
|
- |
|
- |
|
- |
|
187 |
|
Collectively assessed |
135 |
|
33 |
|
- |
|
- |
|
168 |
|
Balance at 30 June 2026 |
322 |
|
33 |
|
- |
|
- |
|
355 |
|
Factoring receivables, gross |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
70,344 |
|
82 |
|
32 |
|
- |
|
70,458 |
|
New financial asset originated or purchased |
93,228 |
|
- |
|
- |
|
- |
|
93,228 |
|
Transfer to Stage 2 |
(279) |
|
279 |
|
- |
|
- |
|
- |
|
Assets repaid |
(81,752) |
|
(84) |
|
(33) |
|
- |
|
(81,869) |
|
Net other changes |
1,150 |
|
- |
|
- |
|
- |
|
1,150 |
|
Currency translation differences |
47 |
|
1 |
|
1 |
|
- |
|
49 |
|
Balance at 30 June 2025 |
82,738 |
|
278 |
|
- |
|
- |
|
83,016 |
|
|
|
|
|
|
|
|
|
|
|
|
Collectively assessed |
82,738 |
|
278 |
|
- |
|
- |
|
83,016 |
|
Balance at 30 June 2025 |
82,738 |
|
278 |
|
- |
|
- |
|
83,016 |
|
|
|
|
|
|
|
|
|
|
|
|
Factoring receivables, ECL: |
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
Total |
|
|
Balance at 31 December 2024 |
22 |
|
- |
|
- |
|
- |
|
22 |
|
New financial asset originated or purchased |
852 |
|
- |
|
- |
|
- |
|
852 |
|
Assets repaid |
(730) |
|
- |
|
- |
|
- |
|
(730) |
|
Foreign exchange movement |
- |
|
1 |
|
- |
|
- |
|
1 |
|
Net other measurement of ECL |
444 |
|
63 |
|
- |
|
- |
|
507 |
|
Income statement (releases)/charges |
566 |
|
64 |
|
- |
|
- |
|
630 |
|
Currency translation differences |
(3) |
|
- |
|
- |
|
- |
|
(3) |
|
Balance at 30 June 2025 |
585 |
|
64 |
|
- |
|
- |
|
649 |
|
|
|
|
|
|
|
|
|
|
|
|
Collectively assessed |
585 |
|
64 |
|
- |
|
- |
|
649 |
|
Balance at 30 June 2025 |
585 |
|
64 |
|
- |
|
- |
|
649 |
10. Taxation
The corporate income tax expense in income statement comprises:
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Current income expense |
(215,971) |
|
(162,380) |
|
Deferred income tax expense |
(28,317) |
|
(30,433) |
|
Income tax expense |
(244,288) |
|
(192,813) |
|
|
|
|
|
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Income tax on net gain/(losses) on investment securities |
128 |
|
(198) |
|
Income tax benefit/(expense) in other comprehensive income |
128 |
|
(198) |
The income tax rate applicable to most of the Group's income is the income tax rate applicable to subsidiaries' income, which ranges from 15% to 25% (30 June 2025: from 15% to 25%).
As at 30 June 2026 and 31 December 2025 income tax assets and liabilities consist of the following:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Deferred income tax assets |
55 |
|
41 |
|
Income tax assets |
55 |
|
41 |
|
|
|
|
|
|
Current income tax liabilities |
105,841 |
|
76,468 |
|
Deferred income tax liabilities |
59,690 |
|
32,337 |
|
Income tax liabilities |
165,531 |
|
108,805 |
11. Other assets, prepayments and other liabilities
Other assets comprise:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 (reclassified) |
|
Other receivables |
178,048 |
|
165,737 |
|
Receivables from remittance operations |
120,208 |
|
173,908 |
|
Derivatives margin |
44,315 |
|
19,788 |
|
Derivative financial assets |
26,959 |
|
8,438 |
|
Accounts receivable and other loans |
21,694 |
|
16,766 |
|
Total other financial assets |
391,224 |
|
384,637 |
|
|
|
|
|
|
Inventories |
28,208 |
|
22,946 |
|
Investments in associates |
11,380 |
|
11,483 |
|
Operating tax assets |
10,172 |
|
8,914 |
|
Assets purchased for finance lease purposes |
1,344 |
|
1,757 |
|
Other |
32,829 |
|
15,277 |
|
Total other non-financial assets |
83,933 |
|
60,377 |
|
|
|
|
|
|
Total other assets, gross |
475,157 |
|
445,014 |
|
Less - Allowance for impairment of other financial assets |
(27,487) |
|
(25,586) |
|
Other assets, net |
447,670 |
|
419,428 |
Other receivables mainly include receivables from settlement operations, operating lease receivables and receivables from guarantees and letters of credit.
11. Other assets, prepayments and other liabilities (continued)
Other liabilities comprise:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Dividends payable |
126,280 |
|
119,097 |
|
Redemption liability for put option |
84,147 |
|
100,765 |
|
Creditors |
70,350 |
|
69,839 |
|
Transfers in transit |
30,830 |
|
82,797 |
|
Payables for remittance operations |
29,944 |
|
98,133 |
|
Other taxes payable |
26,363 |
|
18,808 |
|
Derivative financial liabilities |
22,655 |
|
10,692 |
|
Accounts payable |
6,604 |
|
5,805 |
|
Derivatives margin |
1,772 |
|
36 |
|
Amounts payable for share acquisitions |
- |
|
15,240 |
|
Total other financial liabilities |
398,945 |
|
521,212 |
|
|
|
|
|
|
Provisions |
9,707 |
|
9,706 |
|
Advances received |
6,281 |
|
3,548 |
|
Other |
35,498 |
|
26,210 |
|
Total other non-financial liabilities |
51,486 |
|
39,464 |
|
|
|
|
|
|
Other liabilities |
450,431 |
|
560,676 |
The table below shows the fair values of derivative financial instruments, recorded as assets or liabilities, together with their notional amounts. The notional amount, recorded gross, is the amount of a derivative's underlying asset or liability, reference rate or index and is the basis upon which changes in the value of derivatives are measured. The notional amounts indicate the volume of transactions outstanding at the reporting date and are not indicative of the credit risk.
|
|
As at 30 June 2026 (unaudited) |
|
As at 31 December 2025 |
||||
|
|
Notional amount |
Fair value |
|
Notional amount |
Fair value |
||
|
Asset |
Liability |
|
Asset |
Liability |
|||
|
Foreign exchange contracts |
|
|
|
|
|
|
|
|
Forwards and swaps - domestic |
1,155,513 |
8,727 |
5,269 |
|
1,353,888 |
2,431 |
2,486 |
|
Forwards and swaps - foreign |
3,244,429 |
18,159 |
17,386 |
|
3,215,985 |
6,007 |
7,765 |
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
|
|
|
|
|
|
|
Forwards and swaps - foreign (IR) |
13,500 |
73 |
- |
|
13,500 |
- |
441 |
|
|
|
|
|
|
|
|
|
|
Total derivative assets / liabilities |
4,413,442 |
26,959 |
22,655 |
|
4,583,373 |
8,438 |
10,692 |
|
|
|
|
|
|
|
|
|
For the period ended 30 June 2026 GEL 41,686 was recognised as net foreign currency gain from derivative financial instruments (period ended 30 June 2025: GEL 54,491 loss).
Prepayments comprise:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Prepayments to finance lease suppliers |
80,107 |
|
144,399 |
|
Prepayments for non-current assets |
34,513 |
|
16,630 |
|
Other prepayments |
45,918 |
|
39,738 |
|
Prepayments |
160,538 |
|
200,767 |
12. Client deposits and notes
The amounts due to customers include the following:
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Current accounts |
23,031,191 |
|
21,936,533 |
|
Time deposits |
20,633,562 |
|
16,693,441 |
|
Client deposits and notes |
43,664,753 |
|
38,629,974 |
|
|
|
|
|
|
|
|
|
|
|
Held as security against letters of credit and guarantees (Note 16) |
309,504 |
|
286,687 |
At 30 June 2026, amounts due to customers of GEL 6,982,321 (16%) were due to the ten largest customers (31 December 2025: GEL 4,159,325 (11%)).
Amounts due to customers include accounts with the following types of customers:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Individuals |
24,090,403 |
|
22,173,536 |
|
Private enterprises |
16,006,762 |
|
15,556,236 |
|
State and state-owned entities |
3,567,588 |
|
900,202 |
|
Client deposits and notes |
43,664,753 |
|
38,629,974 |
The breakdown of customer accounts by industry sector is as follows:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Individuals |
24,090,403 |
|
22,173,536 |
|
Financial intermediation |
3,451,947 |
|
3,052,585 |
|
Government services |
3,330,148 |
|
675,956 |
|
Trade |
2,535,344 |
|
2,894,910 |
|
Construction |
2,244,707 |
|
2,177,952 |
|
Transport and communication |
1,171,996 |
|
1,461,423 |
|
Service |
912,895 |
|
950,356 |
|
Manufacturing |
844,605 |
|
841,430 |
|
Real estate |
709,689 |
|
584,124 |
|
Mining and quarrying |
616,531 |
|
580,307 |
|
Electricity, gas and water supply |
521,984 |
|
511,874 |
|
Agriculture |
438,012 |
|
399,043 |
|
Hospitality |
218,524 |
|
225,985 |
|
Other |
2,577,968 |
|
2,100,493 |
|
Client deposits and notes |
43,664,753 |
|
38,629,974 |
13. Amounts owed to credit institutions
Amounts due to credit institutions comprise:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Borrowings from international credit institutions |
4,698,658 |
|
4,566,961 |
|
Time deposits and inter-bank loans |
897,664 |
|
812,537 |
|
Payables under REPO Operations |
369,391 |
|
165,172 |
|
Correspondent accounts |
349,350 |
|
455,791 |
|
Short-term loans from central banks |
168,854 |
|
2,804,383 |
|
Other borrowings |
55,884 |
|
12,392 |
|
|
6,539,801 |
|
8,817,236 |
|
|
|
|
|
|
Non-convertible subordinated debt |
699,065 |
|
546,126 |
|
Additional Tier 1 |
133,179 |
|
135,744 |
|
|
|
|
|
|
Amounts due to credit institutions |
7,372,045 |
|
9,499,106 |
|
|
|
|
|
During the period ended 30 June 2026, the Group paid up to 7.76% and 7.02% on borrowings from international credit institutions denominated in USD and EUR, respectively, (31 December 2025: up to 8.29% and 10.99%). During the period ended 30 June 2026, the Group paid up to 10.43% and 8.44% on subordinated debt in USD and EUR, respectively, (31 December 2025: up to 10.78% and 8.52%).
Some long-term borrowings from international credit institutions are received upon certain conditions (the "Lender Covenants") that the Group maintains different limits for capital adequacy, liquidity, currency positions, credit exposures, leverage and others. At 30 June 2026 and 31 December 2025, the Group complied with all the Lender Covenants of the significant borrowings from international credit institutions.
14. Debt securities issued
Debt securities issued comprise:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Local bonds |
1,257,457 |
|
1,207,673 |
|
Eurobonds and notes issued |
1,238,484 |
|
449,496 |
|
Additional Tier 1 capital notes issued |
803,028 |
|
817,800 |
|
Certificates of deposit |
363,279 |
|
300,219 |
|
Local additional Tier 1 capital notes issued |
271,312 |
|
- |
|
Tier 2 notes issued |
242,711 |
|
224,683 |
|
Debt securities issued |
4,176,271 |
|
2,999,871 |
Changes in liabilities arising from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eurobonds and notes issued |
|
Additional Tier 1 capital notes issued |
|
Tier 2 notes issued |
|
Local bonds |
|
Local additional Tier 1 capital notes issued |
|
Bonds issued to international financial institutions to finance green projects |
|
Carrying amount at 31 December 2024 |
- |
|
850,397 |
|
140,620 |
|
1,048,876 |
|
- |
|
123,309 |
|
Repayment of the principal portion of the debt securities issued |
- |
|
- |
|
- |
|
(176,465) |
|
- |
|
- |
|
Proceeds from Tier 2 notes issued |
- |
|
- |
|
63,751 |
|
- |
|
- |
|
- |
|
Proceeds from local bonds issued |
- |
|
- |
|
- |
|
195,571 |
|
- |
|
- |
|
Foreign exchange movements |
- |
|
(25,526) |
|
(3,371) |
|
(18,598) |
|
- |
|
10,832 |
|
Other movements |
- |
|
607 |
|
7,548 |
|
611 |
|
- |
|
(28) |
|
Carrying amount at 30 June 2025 (unaudited) |
- |
|
825,478 |
|
208,548 |
|
1,049,995 |
|
- |
|
134,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying amount at 31 December 2025 |
449,496 |
|
817,800 |
|
224,683 |
|
1,207,673 |
|
- |
|
- |
|
Eurobonds and notes issued |
799,800 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
Repayment of the principal portion of the debt securities issued |
- |
|
- |
|
- |
|
(189,141) |
|
- |
|
- |
|
Proceeds from Local Additional Tier 1 notes issued |
- |
|
- |
|
- |
|
- |
|
266,471 |
|
- |
|
Proceeds from Tier 2 notes issued |
- |
|
- |
|
23,460 |
|
- |
|
- |
|
- |
|
Proceeds from local bonds issued |
- |
|
- |
|
- |
|
246,016 |
|
- |
|
- |
|
Foreign exchange movements |
(6,184) |
|
(15,001) |
|
(5,663) |
|
(30,879) |
|
1,343 |
|
- |
|
Other movements |
(4,628) |
|
229 |
|
231 |
|
23,788 |
|
3,498 |
|
- |
|
Carrying amount at 30 June 2026 (unaudited) |
1,238,484 |
|
803,028 |
|
242,711 |
|
1,257,457 |
|
271,312 |
|
- |
On 27 May 2026, the Group's subsidiary - JSC Bank of Georgia issued USD 300 million Eurobonds with interest rate 6.5% due on 3 June 2031.
On 18 June 2026, the Group's subsidiary - CJSC Ameriabank issued USD 50 million (GEL 132,715) 8.0% perpetual subordinated callable local additional tier 1 notes.
On 12 February 2026, the Group's subsidiary - CJSC Ameriabank issued USD 50 million (GEL 133,756) 8.5% perpetual subordinated callable local additional tier 1 notes.
15. Accruals and contract liabilities
Accruals and deferred income comprise:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Accruals for employee compensation |
145,732 |
|
219,730 |
|
Contract liabilities |
90,342 |
|
77,123 |
|
Other accruals |
3,675 |
|
4,214 |
|
Total accruals and deffered income |
239,749 |
|
301,067 |
|
|
|
|
|
16. Commitments and contingencies
Legal
Sai-invest
As at 30 June 2026, JSC Bank of Georgia was engaged in litigation with Sai-Invest LLC ("Sai-Invest") in relation to a deposit pledge in the amount of EUR 7,000 for the benefit of LTD Sport Invest's loans owing to JSC Bank of Georgia. Sai-Invest LLC has challenged the validity of the deposit pledge in the Georgian courts, and its challenge has been substantially sustained in the Court of Appeal, a determination which JSC Bank of Georgia believes to be erroneous and without merit, and which it has appealed to the Supreme Court. The matter is currently under review by the Supreme Court, and the timeline as to when the judgment is to be expected is not available. JSC Bank of Georgia's management is of the opinion that the probability of incurring material losses on this claim is low, and, accordingly, no provision has been made in these consolidated financial statements.
Financial commitments and contingencies
As at 30 June 2026 and 31 December 2025, the Group's financial commitments and contingencies comprised the following:
|
|
As at |
||
|
|
30 June 2026 (unaudited) |
|
31 December 2025 |
|
Credit-related commitments |
|
|
|
|
Financial and performance guarantees issued* |
3,034,487 |
|
2,945,640 |
|
Undrawn loan facilities |
1,939,786 |
|
1,894,567 |
|
Letters of credit |
123,200 |
|
65,505 |
|
|
5,097,473 |
|
4,905,712 |
|
|
|
|
|
|
Less - Cash held as security against letters of credit and guarantees (Note 12) |
(309,504) |
|
(286,687) |
|
Less - Provisions |
(9,707) |
|
(9,706) |
|
|
|
|
|
|
Capital expenditure commitments |
9,412 |
|
4,717 |
|
|
|
|
|
* Out of total guarantees issued as at 30 June 2026 financial and performance guarantees of the Group comprised GEL 1,469,241 (31 December 2025: GEL 1,411,647) and GEL 1,565,246 (31 December 2025: GEL 1,533,993), respectively.
The Group discloses its undrawn loan facility balances based on the contractual terms and existing practice in regards to disbursement of these amounts. The balances are disclosed as commitments if the Group has an established practice of disbursing undrawn amounts without any subsequent approval.
17. Equity
Share capital
As at 30 June 2026 issued share capital comprised 43,115,434 (31 December 2025: 43,474,333) common shares of Lion Finance Group PLC, all of which were fully paid. Each share has a nominal value of one (1) British penny. Shares issued and outstanding as at 30 June 2026 and 30 June 2025 are described below:
|
|
Number of ordinary shares |
|
Amount of share capital |
|
31 December 2024 |
44,498,147 |
|
1,464 |
|
Buyback and cancellation of own shares |
(586,621) |
|
(19) |
|
30 June 2025 |
43,911,526 |
|
1,445 |
|
|
|
|
|
|
31 December 2025 |
43,474,333 |
|
1,431 |
|
Buyback and cancellation of own shares |
(358,899) |
|
(12) |
|
30 June 2026 |
43,115,434 |
|
1,419 |
On 7 May 2026, the Group's Board of Directors approved a GEL 55,000 extension to its buyback and cancellation programme which was completed in July 2026.
On 25 February 2026, the Group's Board of Directors approved a GEL 53,500 extension to its buyback and cancellation programme which was completed in March 2026.
On 20 November 2025, the Group's Board of Directors approved a GEL 51,500 extension to its buyback and cancellation programme which was completed in February 2026.
On 20 August 2025, the Group's Board of Directors approved a GEL 98,700 extension to its buyback and cancellation programme which was completed in November 2025.
On 25 February 2025, the Group's Board of Directors approved a GEL 107,700 extension to its buyback and cancellation programme which was completed in July 2025.
Treasury shares
Treasury shares are held for the purpose of the either Group's share buyback and cancellation programme or future employee share-based compensation.
The number of treasury shares held by the Group as at 30 June 2026, comprised 568,307 (31 December 2025: 916,570), with nominal amount of GEL 18 (31 December 2025: GEL 31).
Dividends
Shareholders are entitled to dividends in Pounds Sterling.
On 7 May 2026, the Board of Directors of Lion Finance Group PLC declared an interim dividend for 2026 of Georgian Lari 2.85 per share. The currency conversion period was set to be for the period 22 June to 26 June 2026, with the official GEL:GBP exchange rate of 3.4967, resulting in a GBP-denominated final dividend of 0.82 per share. Payment of the total GEL 117,345 interim dividends was received by shareholders on 10 July 2026.
On 25 February 2026, the Board of Directors of Lion Finance Group PLC declared an interim dividend for 2025 of Georgian Lari 2.75 per share. The currency conversion period was set to be for the period 23 March to 27 March 2026, with the official GEL:GBP exchange rate of 3.6271, resulting in a GBP-denominated final dividend of 0.76 per share. Payment of the total GEL 117,345 interim dividends was received by shareholders on 14 April 2026.
On 16 June 2025, the shareholders of Lion Finance Group PLC approved a final dividend for 2024 of Georgian Lari 5.62 per share. The currency conversion period was set to be for the period 30 June to 4 July 2025, with the official GEL:GBP exchange rate of 3.7322, resulting in a GBP-denominated final dividend of 1.51 per share. Payment of the total GEL 255,331 final dividends was received by shareholders on 18 July 2025.
The Group also distributed dividends on shares awarded under the terms of share-based payments program vested and exercised in the period ended 30 June 2026 amounting to GEL 9,976 (period ended 30 June 2025: GEL 13,199).
Nature and purpose of other reserves
Unrealised gains (losses) on investment securities
This reserve records fair value changes on investment securities.
Unrealised gains (losses) from dilution or sale / acquisition of shares in existing subsidiaries
This reserve records unrealised gains (losses) from dilution or sale / acquisition of shares in existing subsidiaries.
17. Equity (continued)
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of subsidiaries with functional currency other than GEL.
Movements on this account during the periods ended 30 June 2026 and 30 June 2025, are presented in the statements of other comprehensive income.
The movements in other reserves were as follows:
|
|
Unrealised gains (losses) on investment securities |
|
Unrealised gains (losses) from dilution or sale / acquisition of shares in existing subsidiaries |
|
Currency Translation Reserves |
Other |
|
Total other reserve |
||||||||
|
|
|
|
AmeriaBank |
|
Other |
|
||||||||||
|
31 December 2024 |
59,637 |
|
63,678 |
|
54,729 |
|
(68,796) |
1,538 |
|
110,786 |
||||||
|
Net change in FV on investments in debt securities measured at FVOCI |
(59,156) |
|
- |
|
- |
|
- |
- |
|
(59,156) |
||||||
|
Net gain (loss) on investments in equity instruments designated at FVOCI |
6,762 |
|
- |
|
- |
|
- |
- |
|
6,762 |
||||||
|
Change in allowance for ECL investments in debt instruments measured at FVOCI reclassified to the consolidated income statement |
(171) |
|
- |
|
- |
|
- |
- |
|
(171) |
||||||
|
Realised loss on financial assets measured at FVOCI |
(796) |
|
- |
|
- |
|
- |
- |
|
(796) |
||||||
|
Gain from currency translation differences |
(403) |
|
- |
|
(3,224) |
|
(1,022) |
- |
|
(4,649) |
||||||
|
Increase in share capital of subsidiaries |
- |
|
94 |
|
- |
|
- |
- |
|
94 |
||||||
|
Acquisition of non-controlling interests in existing subsidiaries |
- |
|
(1,811) |
|
- |
|
- |
- |
|
(1,811) |
||||||
|
Net amount reclassified to retained earnings on sale of equity instruments at FVOCI |
(3,419) |
|
- |
|
- |
|
- |
- |
|
(3,419) |
||||||
|
Other movements |
(198) |
|
- |
|
- |
|
- |
- |
|
(198) |
||||||
|
30 June 2025 |
2,256 |
|
61,961 |
|
51,505 |
|
(69,818) |
1,538 |
|
47,442 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
31 December 2025 |
27,269 |
|
61,961 |
|
50,621 |
|
(68,425) |
622 |
|
72,048 |
||||||
|
Net change in FV on investments in debt securities measured at FVOCI |
75,030 |
|
- |
|
- |
|
- |
- |
|
75,030 |
||||||
|
Net gain (loss) on investments in equity instruments designated at FVOCI |
(569) |
|
- |
|
- |
|
- |
- |
|
(569) |
||||||
|
Change in allowance for ECL investments in debt instruments measured at FVOCI reclassified to the consolidated income statement |
(1,193) |
|
- |
|
- |
|
- |
- |
|
(1,193) |
||||||
|
Realised loss on financial assets measured at FVOCI |
(2,918) |
|
- |
|
- |
|
- |
- |
|
(2,918) |
||||||
|
Gain from currency translation differences |
250 |
|
- |
|
26,722 |
|
(4,104) |
- |
|
22,868 |
||||||
|
Increase in share capital of subsidiaries |
- |
|
- |
|
- |
|
- |
- |
|
- |
||||||
|
Acquisition of non-controlling interests in existing subsidiaries |
- |
|
- |
|
- |
|
- |
- |
|
- |
||||||
|
Net amount reclassified to retained earnings on sale of equity instruments at FVOCI |
- |
|
- |
|
- |
|
- |
- |
|
- |
||||||
|
Other movements |
128 |
|
- |
|
- |
|
- |
(39) |
|
89 |
||||||
|
30 June 2026 |
97,997 |
|
61,961 |
|
77,343 |
|
(72,529) |
583 |
|
165,355 |
||||||
Earnings per share
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Basic earnings per share |
|
|
|
|
Profit for the period attributable to ordinary shareholders of the Parent |
1,203,773 |
|
1,024,421 |
|
Weighted average number of ordinary shares outstanding during the period |
42,627,488 |
|
43,223,846 |
|
Basic earnings per share |
28.24 |
|
23.70 |
|
|
|
|
|
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Diluted earnings per share |
|
|
|
|
Effect of dilution on weighted average number of ordinary shares: |
|
|
|
|
Dilutive unvested share options |
389,415 |
|
487,754 |
|
Weighted average number of ordinary shares adjusted for the effect of dilution |
43,016,903 |
|
43,711,600 |
|
Diluted earnings per share |
27.98 |
|
23.44 |
Acquisition of NCI
In March 2025, the Group acquired an additional 0.44% interest in JSC Bank of Georgia, increasing its ownership from 99.56% to 100%.
The Following table summarizes the effect of changes in the Group's ownership interest in JSC Bank of Georgia:
|
Carrying amount of NCI acquired |
26,637 |
|
Considerations paid to NCI in cash |
28,448 |
|
A decrease in equity attributable to the shareholders of the Parent |
(1,811) |
18. Net interest income
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited and reclassified) |
|
|
|
|
|
|
Interest income calculated using EIR method |
2,986,250 |
|
2,499,120 |
|
From loans to customers |
2,542,957 |
|
2,100,309 |
|
From investment securities |
352,045 |
|
334,833 |
|
From amounts due from credit institutions |
78,986 |
|
61,660 |
|
Net gain (loss) on modification of financial assets |
245 |
|
(2,139) |
|
From factoring receivables |
12,017 |
|
4,457 |
|
|
|
|
|
|
Other interest income |
40,335 |
|
37,428 |
|
From finance lease receivable |
32,880 |
|
27,299 |
|
From investments securities measured at FVTPL |
7,443 |
|
10,129 |
|
From other assets |
12 |
|
- |
|
Interest income |
3,026,585 |
|
2,536,548 |
|
|
|
|
|
|
On client deposits and notes |
(890,637) |
|
(686,460) |
|
On amounts owed to credit institutions |
(275,700) |
|
(334,612) |
|
On debt securities issued |
(137,300) |
|
(86,760) |
|
Interest element of cross-currency swaps |
(373) |
|
6,293 |
|
Other interest expenses |
(3,121) |
|
(4,565) |
|
On lease liability |
(10,637) |
|
(8,603) |
|
Interest expense |
(1,317,768) |
|
(1,114,707) |
|
|
|
|
|
|
Net interest income |
1,708,817 |
|
1,421,841 |
For the period ended 30 June 2026 the Group recognised GEL 218,490 (period ended 30 June 2025: GEL 218,329) interest income from investment securities measured at FVOCI.
19. Net fee and commission income
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited and reclassified) |
|
Card operations |
311,124 |
|
246,557 |
|
Account services |
126,286 |
|
99,409 |
|
Settlements operations |
79,607 |
|
67,992 |
|
Guarantees and letters of credit |
38,652 |
|
35,988 |
|
Currency conversion operations |
37,557 |
|
25,024 |
|
Brokerage service fees |
21,086 |
|
14,398 |
|
Cash operations |
15,272 |
|
16,963 |
|
Advisory |
9,806 |
|
902 |
|
Other |
7,915 |
|
6,414 |
|
Fee and commission income |
647,305 |
|
513,647 |
|
|
|
|
|
|
|
|
|
|
|
Card operations |
(150,497) |
|
(121,898) |
|
Settlements operations |
(71,806) |
|
(54,974) |
|
Cash operations |
(11,107) |
|
(13,042) |
|
Currency conversion operations |
(10,363) |
|
(6,989) |
|
Brokerage service fees |
(8,959) |
|
(5,947) |
|
Advisory |
(966) |
|
(157) |
|
Guarantees and letters of credit |
(374) |
|
(244) |
|
Other |
(10,720) |
|
(8,263) |
|
Fee and commission expense |
(264,792) |
|
(211,514) |
|
Net fee and commission income |
382,513 |
|
302,133 |
20. Cost of risk
The table below shows ECL charges on financial instruments for the period recorded in the income statement:
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
|
||||
|
Individual |
Collective |
|
Individual |
Collective |
|
Individual |
Collective |
|
Individual |
Collective |
|
Total |
|
|
Cash and cash equivalents |
- |
134 |
|
- |
- |
|
- |
- |
|
- |
- |
|
134 |
|
Amounts due from credit institutions |
- |
(191) |
|
- |
- |
|
- |
- |
|
- |
- |
|
(191) |
|
Investment securities measured at amortised cost - debt instruments |
- |
513 |
|
- |
- |
|
- |
- |
|
- |
- |
|
513 |
|
Investment securities measured at FVOCI - debt instruments |
- |
737 |
|
- |
- |
|
- |
- |
|
- |
- |
|
737 |
|
Investment securities pledged under sale and repurchase agreements and securities lending at amortised cost - debt instruments |
- |
9 |
|
- |
- |
|
- |
- |
|
- |
- |
|
9 |
|
Loans to customers at amortised cost |
(5,678) |
(23,925) |
|
(3,363) |
(17,005) |
|
4,477 |
(51,522) |
|
3,227 |
(3,212) |
|
(97,001) |
|
Factoring receivables |
(3) |
43 |
|
- |
29 |
|
- |
- |
|
- |
- |
|
69 |
|
Finance lease receivables |
347 |
344 |
|
- |
67 |
|
508 |
123 |
|
25 |
394 |
|
1,808 |
|
Accounts receivable and other loans |
- |
138 |
|
- |
(5) |
|
- |
(34) |
|
- |
- |
|
99 |
|
Other financial assets |
- |
- |
|
- |
- |
|
(3,762) |
- |
|
- |
- |
|
(3,762) |
|
Financial and performance guarantees |
- |
313 |
|
- |
(267) |
|
1 |
(13) |
|
- |
- |
|
34 |
|
Letter of credit to customers |
- |
(14) |
|
- |
(173) |
|
- |
- |
|
- |
- |
|
(187) |
|
Other financial commitments |
- |
215 |
|
- |
(81) |
|
- |
19 |
|
- |
- |
|
153 |
|
For the period ended 30 June 2026 |
(5,334) |
(21,684) |
|
(3,363) |
(17,435) |
|
1,224 |
(51,427) |
|
3,252 |
(2,818) |
|
(97,585) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stage 1 |
|
Stage 2 |
|
Stage 3 |
|
POCI |
|
|
||||
|
Individual |
Collective |
|
Individual |
Collective |
|
Individual |
Collective |
|
Individual |
Collective |
|
Total |
|
|
Cash and cash equivalents |
- |
(349) |
|
- |
- |
|
- |
- |
|
- |
- |
|
(349) |
|
Amounts due from credit institutions |
- |
(140) |
|
- |
- |
|
- |
- |
|
- |
- |
|
(140) |
|
Investment securities measured at amortised cost - debt instruments |
- |
(95) |
|
- |
- |
|
- |
- |
|
- |
- |
|
(95) |
|
Investment securities measured at FVOCI - debt instruments |
- |
254 |
|
- |
- |
|
- |
- |
|
- |
- |
|
254 |
|
Investment securities pledged under sale and repurchase agreements and securities lending at amortised cost - debt instruments |
- |
(101) |
|
- |
- |
|
- |
- |
|
- |
- |
|
(101) |
|
Investment securities pledged under sale and repurchase agreements and securities lending at FVOCI - debt instruments |
- |
34 |
|
- |
- |
|
- |
- |
|
- |
- |
|
34 |
|
Loans to customers at amortised cost |
(4,297) |
(3,063) |
|
- |
(1,156) |
|
(15,194) |
(52,159) |
|
12,533 |
(703) |
|
(64,039) |
|
Factoring receivables |
- |
(566) |
|
- |
(64) |
|
- |
- |
|
- |
- |
|
(630) |
|
Finance lease receivables |
(362) |
(380) |
|
- |
172 |
|
(28) |
(188) |
|
(17) |
176 |
|
(627) |
|
Accounts receivable and other loans |
(81) |
198 |
|
- |
3 |
|
- |
(83) |
|
- |
- |
|
37 |
|
Other financial assets |
- |
- |
|
- |
- |
|
(4,745) |
- |
|
- |
- |
|
(4,745) |
|
Financial and performance guarantees |
- |
(1,062) |
|
- |
314 |
|
(17) |
- |
|
- |
- |
|
(765) |
|
Letter of credit to customers |
- |
62 |
|
- |
(1) |
|
- |
- |
|
- |
- |
|
61 |
|
Other financial commitments |
- |
(1,185) |
|
- |
(106) |
|
- |
- |
|
- |
- |
|
(1,291) |
|
For the period ended 30 June 2025 |
(4,740) |
(6,393) |
|
- |
(838) |
|
(19,984) |
(52,430) |
|
12,516 |
(527) |
|
(72,396) |
The table below shows impairment charge on other assets and provisions in the income statement:
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Litigation provision charge |
(1,165) |
|
(237) |
|
Impairment charge on assets held for sale |
(50) |
|
(140) |
|
Other impairment charge |
(4,500) |
|
(4,936) |
|
|
(5,715) |
|
(5,313) |
21. Net other gains/(losses)
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Net real estate gains |
6,156 |
|
19,146 |
|
Net losses/gains on financial assets at fair value through profit or loss |
(10) |
|
3,027 |
|
Net gains on derecognition of financial assets measured at fair value through other comprehensive income |
2,918 |
|
2,226 |
|
Net other gains |
11,670 |
|
5,188 |
|
Net other gains / (losses) |
20,734 |
|
29,587 |
22. Risk management
Liquidity risk and funding management
Liquidity risk is the risk that the Group will be unable to meet its payment obligations when they fall due under normal and stress circumstances. To limit this risk, management has arranged diversified funding sources in addition to its core deposit base, manages assets with liquidity in mind, and monitors future cash flows and liquidity on a regular basis. This incorporates an assessment of expected cash flows and the availability of high-grade collateral which could be used to secure additional funding if required.
The Group maintains a portfolio of marketable and diverse assets that can be liquidated in the event of an unforeseen interruption of cash flow. The Group also has committed lines of credit that it can access to meet liquidity needs. In addition, the Group maintains a cash deposit (obligatory reserve) with the NBG and CBA, the amount of which depends on the level of customer funds attracted.
The liquidity position is assessed and managed by the Group primarily on a standalone JSC Bank of Georgia and Ameriabank CJSC basis, based on certain liquidity ratios established by the NBG and CBA, respectively. The banks in Georgia and Armenia, absent a stress-period, are required to maintain a liquidity coverage ratio no lower than 100%. Both JSC Bank of Georgia and Ameriabank CJSC were in compliance with this requirement as at 30 June 2026 and 31 December 2025.
JSC Bank of Georgia and Ameriabank CJSC are required to maintain a Net Stable Funding Ratio (NSFR) no lower than 100%. Both JSC Bank of Georgia and Ameriabank CJSC were in compliance with this requirement as at 30 June 2026 and 31 December 2025. A buffer over NSFR provides stable funding sources over a longer time span. This approach is designed to ensure that the funding framework is sufficiently flexible to secure liquidity under a wide range of market conditions.
The Group also matches the maturity of financial assets and financial liabilities and regularly monitors negative gaps compared with JSC Bank of Georgia's and Ameriabank CJSC's standalone total regulatory capital calculated per NBG and CBA regulations. For further details, please refer to Note 24.
27.
23. Fair value measurements
Fair value hierarchy
For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability. The following tables show analysis of assets and liabilities measured at fair value or for which fair values are disclosed by level of the fair value hierarchy:
|
At 30 June 2026 |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
|
|
|||||
|
Assets measured at fair value |
|
|
|
|
|
|
|
|
Total investment properties |
- |
|
- |
|
98,261 |
|
98,261 |
|
Land |
- |
|
- |
|
1,458 |
|
1,458 |
|
Residential properties |
- |
|
- |
|
69,612 |
|
69,612 |
|
Non-residential properties |
- |
|
- |
|
27,191 |
|
27,191 |
|
Investment securities measured at FVOCI |
1,746,959 |
|
4,557,075 |
|
22,653 |
|
6,326,687 |
|
Investment securities measured at FVTPL |
488 |
|
171,413 |
|
18,630 |
|
190,531 |
|
Other assets - derivative financial assets |
- |
|
26,959 |
|
- |
|
26,959 |
|
|
|
|
|
|
|
|
|
|
Assets for which fair values are disclosed |
|
|
|
|
|
|
|
|
Investment securities measured at amortised cost - debt instruments |
1,128,962 |
|
2,170,091 |
|
- |
|
3,299,053 |
|
Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost - debt instruments |
- |
|
323,098 |
|
- |
|
323,098 |
|
Loans to customers and factoring receivables at amortised cost |
- |
|
88,593 |
|
43,333,641 |
|
43,422,234 |
|
Finance lease receivables at amortised cost |
- |
|
- |
|
518,391 |
|
518,391 |
|
|
|
|
|
|
|
|
|
|
Liabilities measured at fair value |
|
|
|
|
|
|
|
|
Other liabilities - derivative financial liabilities |
- |
|
22,655 |
|
- |
|
22,655 |
|
|
|
|
|
|
|
|
|
|
Liabilities for which fair values are disclosed |
|
|
|
|
|
|
|
|
Client deposits and notes |
- |
|
32,315,936 |
|
11,466,864 |
|
43,782,800 |
|
Amounts owed to credit institutions |
- |
|
3,049,471 |
|
4,320,926 |
|
7,370,397 |
|
Debt securities issued |
- |
|
3,571,321 |
|
702,287 |
|
4,273,608 |
|
|
|
|
|
|
|
|
|
|
At 31 December 2025 |
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
|
|
|
|||||
|
Assets measured at fair value |
|
|
|
|
|
|
|
|
Total investment properties |
- |
|
- |
|
107,573 |
|
107,573 |
|
Land |
- |
|
- |
|
2,901 |
|
2,901 |
|
Residential properties |
- |
|
- |
|
77,412 |
|
77,412 |
|
Non-residential properties |
- |
|
- |
|
27,260 |
|
27,260 |
|
Investment securities measured at FVOCI |
2,086,103 |
|
4,530,973 |
|
23,508 |
|
6,640,584 |
|
Investment securities measured at FVTPL |
- |
|
135,219 |
|
17,085 |
|
152,304 |
|
Other assets - derivative financial assets |
- |
|
8,438 |
|
- |
|
8,438 |
|
|
|
|
|
|
|
|
|
|
Assets for which fair values are disclosed |
|
|
|
|
|
|
|
|
Investment securities measured at amortised cost - debt instruments |
654,601 |
|
2,682,281 |
|
- |
|
3,336,882 |
|
Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost - debt instruments |
139,661 |
|
13,379 |
|
- |
|
153,040 |
|
Loans to customers and factoring receivables at amortised cost |
- |
|
61,585 |
|
38,926,327 |
|
38,987,912 |
|
Finance lease receivables at amortised cost |
- |
|
- |
|
453,141 |
|
453,141 |
|
|
|
|
|
|
|
|
|
|
Liabilities measured at fair value |
|
|
|
|
|
|
|
|
Other liabilities - derivative financial liabilities |
- |
|
10,692 |
|
- |
|
10,692 |
|
|
|
|
|
|
|
|
|
|
Liabilities for which fair values are disclosed |
|
|
|
|
|
|
|
|
Client deposits and notes |
- |
|
28,951,638 |
|
9,753,900 |
|
38,705,538 |
|
Amounts owed to credit institutions |
- |
|
5,385,695 |
|
4,142,420 |
|
9,528,115 |
|
Debt securities issued |
- |
|
2,494,176 |
|
547,662 |
|
3,041,838 |
|
|
|
|
|
|
|
|
|
There were no transfers between levels 1, 2 and 3 during the period ended 30 June 2026 (2025: none).
23. Fair value measurements (continued)
Fair value hierarchy (continued)
The description of the valuation technique and the description of inputs used in the fair value measurement for level 2 measurements:
|
Assets carried at fair value |
At 30 June 2026 |
|
At 31 December 2025 |
|
Valuation technique |
|
Inputs used |
|
Investment securities - debt instruments |
4,557,075 |
|
4,666,192 |
|
Discounted cash flows ("DCF") |
|
Government bonds yield curve, Tbilisi interbank interest rate ("TIBR Index") |
|
Derivative financial assets |
26,959 |
|
8,438 |
|
Forward pricing and swap models, using present value calculations and standard option pricing models |
|
Credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and implied volatilities |
|
Total assets recurring fair value measurements at level 2 |
4,584,034 |
|
4,674,630 |
|
|
|
|
|
Liabilities carried at fair value |
|
|
|
|
|
|
|
|
Derivative financial liabilities |
22,655 |
|
10,692 |
|
Forward pricing and swap models, using present value calculations and standard option pricing models |
|
Credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and implied volatilities |
|
Total liabilities recurring fair value measurements at level 2 |
22,655 |
|
10,692 |
|
|
|
|
The description of the valuation technique and the description of inputs used in the fair value measurement for level 3
measurements:
|
Assets carried at fair value |
At 30 June 2026 |
|
At 31 December 2025 |
|
Valuation technique |
|
Inputs used |
|
Unobservable inputs |
|
Investment securities - equity instruments |
41,283 |
|
40,593 |
|
Discounted cash flows ("DCF") |
|
Cash flow; Discount rate |
|
Cash flow; Discount rate |
|
Total assets recurring fair value measurements at level 3 |
41,283 |
|
40,593 |
|
|
|
|
|
|
The following is a description of the determination of fair value for financial instruments which are recorded at fair value using valuation techniques. These incorporate the Group's estimate of assumptions that a market participant would make when valuing the instruments.
Derivative financial instruments
Derivative financial instruments valued using a valuation technique with market observable inputs are mainly interest rate swaps, currency swaps, forward foreign exchange contracts and option contracts. The most frequently applied valuation techniques include forward pricing and swap models, using present value calculations, as well as standard option pricing models. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and implied volatilities.
Investment securities
Investment securities consist of equity and debt securities and are valued using a valuation technique or pricing models. These securities are valued using models which sometimes only incorporate data observable in the market and at other times use both observable and non-observable data. For quoted investments, respective quoted prices from Bloomberg or other relevant sources are used, when for unquoted investments FV is calculated based on future cash flow expected discounted at current rate for new instruments with similar credit risk, remaining maturity and other characteristics.
Movements in Level 3 financial instruments measured at fair value
The following tables show a reconciliation of the opening and closing amounts of Level 3 financial assets which are recorded at fair value:
|
|
At 31 December |
Business combination |
Revaluation recognized in other comprehensive income |
Revaluation recognized in the income statement |
Purchase of securities |
At 31 December |
Revaluation recognized in other comprehensive income |
Revaluation recognized in the income statement |
Purchase of securities |
At 30 June |
|
2024 |
2025 |
2026 |
||||||||
|
Level 3 financial assets |
|
|
|
|
|
|
|
|
|
|
|
Equity investment securities measured at FVOCI |
17,025 |
- |
6,094 |
- |
389 |
23,508 |
(855) |
- |
- |
22,653 |
|
Equity investment securities measured at FVTPL |
16,229 |
- |
- |
856 |
- |
17,085 |
- |
489 |
1,056 |
18,630 |
|
|
|
|
|
|
|
|
|
|
|
|
23. Fair value measurements (continued)
Fair value of financial instruments that are carried in the financial statements not at fair value
Set out below is a comparison by class of the carrying amounts and fair values of the Group's financial instruments that are carried in the financial statements. The table does not include the fair values of non-financial assets and non-financial liabilities, fair values of other smaller financial assets and financial liabilities, fair values of which are materially close to their carrying values.
|
Fair value of financial assets and liabilities not carried at fair value |
At 30 June 2026 |
|
At 31 December 2025 |
||||
|
|
Carrying value 2026 |
Fair value |
Unrecognised gain (loss) 2026 |
|
Carrying value 2025 |
Fair value |
Unrecognised gain (loss) 2025 |
|
Financial assets |
|
|
|
|
|
|
|
|
Investment securities measured at amortised cost - debt instruments |
3,220,336 |
3,299,053 |
78,717 |
|
3,254,349 |
3,336,882 |
82,533 |
|
Investment securities pledged under sale and repurchase agreements and securities lending measured at amortised cost-debt instruments |
320,654 |
323,098 |
2,444 |
|
147,416 |
153,040 |
5,624 |
|
Loans to customers and factoring receivables |
43,930,568 |
43,422,234 |
(508,334) |
|
39,626,897 |
38,987,912 |
(638,985) |
|
Finance lease receivables |
498,475 |
518,391 |
19,916 |
|
438,767 |
453,141 |
14,374 |
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
Client deposits and notes |
43,664,753 |
43,782,800 |
(118,047) |
|
38,629,974 |
38,705,538 |
(75,564) |
|
Amounts owed to credit institutions |
7,372,045 |
7,370,397 |
1,648 |
|
9,499,106 |
9,528,115 |
(29,009) |
|
Debt securities issued |
4,176,271 |
4,273,608 |
(97,337) |
|
2,999,871 |
3,041,838 |
(41,967) |
|
Total unrecognised change in unrealised fair value |
|
|
(620,993) |
|
|
|
(682,994) |
The following describes the methodologies and assumptions used to determine fair values for those financial instruments which are not already recorded at fair value in the consolidated financial statements.
Assets for which fair value approximates carrying value
For financial assets and financial liabilities that are liquid or have a short-term maturity (less than three months), it is assumed that the carrying amounts approximate to their fair value. This assumption is also applied to demand deposits, savings accounts without a specific maturity, and variable rate financial instruments.
Fixed rate financial instruments
The fair value of fixed rate financial assets and liabilities carried at amortised cost are estimated by comparing market interest rates when they were first recognised with current market rates offered for similar financial instruments. The estimated fair value of fixed interest-bearing deposits is based on discounted cash flows using prevailing money-market interest rates for debts with similar credit risk and maturity. For financial assets and liabilities that are unquoted, non-derivative, and maturing within one year, it is assumed that their carrying amounts approximate fair value, due to their short-term nature and low sensitivity to changes in market conditions, and insignificant exposure to credit risk.
24. Maturity analysis of financial assets and liabilities
The table below shows an analysis of financial assets and liabilities according to their contractual maturities, except for current accounts, credit card loans, pledged investment securities and investments securities which can be pledged but are not pledged as described below.
|
|
At 30 June 2026 |
||||||||||
|
|
On |
Up to |
Up to |
Up to |
Up to |
Up to |
Over |
No maturity |
Total |
||
|
|
|||||||||||
|
Financial assets |
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents |
3,509,749 |
1,537,005 |
- |
- |
- |
- |
- |
- |
5,046,754 |
||
|
Amounts due from credit institutions |
- |
960,286 |
405 |
- |
- |
- |
- |
2,816,325 |
3,777,016 |
||
|
Investment securities |
3,648,623 |
3,469,560 |
876,063 |
666,266 |
385,347 |
609,143 |
35,127 |
47,425 |
9,737,554 |
||
|
Investment securities pledged under sale and repurchase agreements and securities lending |
- |
177,191 |
143,463 |
- |
- |
- |
- |
- |
320,654 |
||
|
Loans to customers, factoring and finance lease receivables |
- |
6,085,629 |
3,162,822 |
5,966,168 |
13,669,524 |
6,913,051 |
8,631,849 |
- |
44,429,043 |
||
|
Other financial assets |
- |
232,481 |
4,434 |
118,230 |
9,241 |
24 |
- |
- |
364,410 |
||
|
Total |
7,158,372 |
12,462,152 |
4,187,187 |
6,750,664 |
14,064,112 |
7,522,218 |
8,666,976 |
2,863,750 |
63,675,431 |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
||
|
Client deposits and notes |
9,013,642 |
9,262,152 |
3,369,927 |
17,226,573 |
3,641,573 |
881,829 |
269,057 |
- |
43,664,753 |
||
|
Amounts owed to credit institutions |
379,232 |
1,267,178 |
1,005,579 |
960,073 |
1,949,548 |
1,011,680 |
798,755 |
- |
7,372,045 |
||
|
Debt securities issued |
- |
282,045 |
267,208 |
474,029 |
1,382,339 |
1,346,838 |
423,812 |
- |
4,176,271 |
||
|
Lease liability |
- |
17,209 |
17,702 |
34,910 |
110,569 |
69,740 |
109,701 |
- |
359,831 |
||
|
Other financial liabilities |
28,651 |
205,298 |
46,821 |
18,025 |
100,095 |
55 |
- |
- |
398,945 |
||
|
Total |
9,421,525 |
11,033,882 |
4,707,237 |
18,713,610 |
7,184,124 |
3,310,142 |
1,601,325 |
- |
55,971,845 |
||
|
Net |
(2,263,153) |
1,428,270 |
(520,050) |
(11,962,946) |
6,879,988 |
4,212,076 |
7,065,651 |
2,863,750 |
7,703,586 |
||
|
Accumulated gap |
(2,263,153) |
(834,883) |
(1,354,933) |
(13,317,879) |
(6,437,891) |
(2,225,815) |
4,839,836 |
7,703,586 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
At 31 December 2025 |
||||||||||
|
|
On |
Up to |
Up to |
Up to |
Up to |
Up to |
Over |
No maturity |
Total |
||
|
|
|||||||||||
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
4,110,611 |
461,435 |
- |
- |
- |
- |
- |
- |
4,572,046 |
|
|
|
Amounts due from credit institutions |
915 |
429,368 |
12,816 |
- |
- |
68 |
- |
3,109,090 |
3,552,257 |
|
|
|
Investment securities |
5,854,649 |
2,152,125 |
733,889 |
621,778 |
216,385 |
380,145 |
43,223 |
45,043 |
10,047,237 |
|
|
|
Investment securities pledged under sale and repurchase agreements and securities lending |
- |
147,416 |
- |
- |
- |
- |
- |
- |
147,416 |
|
|
|
Loans to customers, factoring and finance lease receivables |
- |
5,825,705 |
2,853,643 |
5,312,103 |
11,877,572 |
6,354,308 |
7,842,333 |
- |
40,065,664 |
|
|
|
Other financial assets |
1,019 |
244,905 |
831 |
112,031 |
894 |
41 |
3 |
- |
359,724 |
|
|
|
Total |
9,967,194 |
9,260,954 |
3,601,179 |
6,045,912 |
12,094,851 |
6,734,562 |
7,885,559 |
3,154,133 |
58,744,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Client deposits and notes |
8,197,345 |
6,395,230 |
3,218,663 |
16,028,719 |
3,191,948 |
1,176,686 |
421,383 |
- |
38,629,974 |
|
|
|
Amounts owed to credit institutions |
488,059 |
3,650,655 |
654,890 |
844,701 |
1,998,336 |
1,042,303 |
820,162 |
- |
9,499,106 |
|
|
|
Debt securities issued |
- |
30,521 |
384,275 |
385,011 |
1,183,432 |
761,572 |
255,060 |
- |
2,999,871 |
|
|
|
Lease liability |
- |
17,852 |
16,702 |
33,950 |
108,418 |
66,860 |
104,332 |
- |
348,114 |
|
|
|
Other financial liabilities |
58,590 |
288,458 |
45,917 |
19,567 |
108,651 |
29 |
- |
- |
521,212 |
|
|
|
Total |
8,743,994 |
10,382,716 |
4,320,447 |
17,311,948 |
6,590,785 |
3,047,450 |
1,600,937 |
- |
51,998,277 |
|
|
|
Net |
1,223,200 |
(1,121,762) |
(719,268) |
(11,266,036) |
5,504,066 |
3,687,112 |
6,284,622 |
3,154,133 |
6,746,067 |
|
|
|
Accumulated gap |
1,223,200 |
101,438 |
(617,830) |
(11,883,866) |
(6,379,800) |
(2,692,688) |
3,591,934 |
6,746,067 |
|
|
|
The Group's capability to discharge its liabilities relies on its ability to realise equivalent assets within the same period of time. In the Georgian and Armenian marketplace, where most of the Group's business is concentrated, many short-term credits are granted with the expectation of renewing the loans at maturity. As such, the ultimate maturity of assets may be different from the analysis presented above. To reflect the historical stability of current accounts, the Group calculates the minimal daily balance of current accounts over the past two years and includes the amount in the 'Up to 1 year' category in the table above. The remaining current accounts are included in the 'On demand' category. Pledged Investment Securities are distributed into maturity buckets based on the contractual maturity of the agreement they are pledged for. Securities which can be pledged but are not pledged fall into 'On demand' category. Considering credit cards have no contractual maturities, the above allocation per category is done based on the statistical coverage rates observed.
24. Maturity analysis of financial assets and liabilities (continued)
The Group's principal sources of liquidity are as follows:
· deposits;
· borrowings from international credit institutions;
· inter-bank deposit agreements;
· debt issues;
· proceeds from sale of securities;
· principal repayments on loans;
· interest income; and
· fees and commissions income.
In the Board's opinion, liquidity is sufficient to meet the Group's present requirements.
The table below shows an analysis of assets and liabilities according to when they are expected to be recovered or settled, except for current accounts which are included in 'Up to 1 year' category in the table above, noting that respective contractual maturity may expand over significantly longer periods:
|
|
At 30 June 2026 |
|
At 31 December 2025 |
||||||
|
|
Less than |
More than |
No maturity |
Total |
|
Less than |
More than |
No maturity |
Total |
|
|
|||||||||
|
Cash and cash equivalents |
5,046,754 |
- |
- |
5,046,754 |
|
4,572,046 |
- |
- |
4,572,046 |
|
Amounts due from credit institutions |
960,691 |
- |
2,816,325 |
3,777,016 |
|
443,099 |
68 |
3,109,090 |
3,552,257 |
|
Investment securities |
8,660,512 |
1,029,617 |
47,425 |
9,737,554 |
|
9,362,441 |
639,753 |
45,043 |
10,047,237 |
|
Investment securities pledged under sale and repurchase agreements and securities lending |
320,654 |
- |
- |
320,654 |
|
147,416 |
- |
- |
147,416 |
|
Loans to customers, factoring and finance lease receivables |
15,214,619 |
29,214,424 |
- |
44,429,043 |
|
13,991,451 |
26,074,213 |
- |
40,065,664 |
|
Prepayments |
30,901 |
129,637 |
- |
160,538 |
|
23,724 |
177,043 |
- |
200,767 |
|
Foreclosed Assets |
- |
- |
405,131 |
405,131 |
|
- |
- |
374,659 |
374,659 |
|
Right-of-use assets |
- |
- |
327,471 |
327,471 |
|
- |
- |
332,630 |
332,630 |
|
Investment properties |
- |
- |
98,261 |
98,261 |
|
- |
- |
107,573 |
107,573 |
|
Property and equipment |
- |
- |
622,402 |
622,402 |
|
- |
- |
616,839 |
616,839 |
|
Goodwill |
- |
- |
35,488 |
35,488 |
|
- |
- |
41,253 |
41,253 |
|
Intangible assets |
- |
- |
402,750 |
402,750 |
|
- |
- |
376,402 |
376,402 |
|
Income tax assets |
- |
55 |
- |
55 |
|
- |
41 |
- |
41 |
|
Other assets |
426,741 |
10,222 |
10,707 |
447,670 |
|
406,513 |
2,105 |
10,810 |
419,428 |
|
Assets held for sale |
9,752 |
- |
- |
9,752 |
|
15,644 |
- |
- |
15,644 |
|
Total assets |
30,670,624 |
30,383,955 |
4,765,960 |
65,820,539 |
|
28,962,334 |
26,893,223 |
5,014,299 |
60,869,856 |
|
|
|
|
|
|
|
|
|
|
|
|
Client deposits and notes |
38,872,294 |
4,792,459 |
- |
43,664,753 |
|
33,839,957 |
4,790,017 |
- |
38,629,974 |
|
Amounts owed to credit institutions |
3,612,062 |
3,759,983 |
- |
7,372,045 |
|
5,638,305 |
3,860,801 |
- |
9,499,106 |
|
Debt securities issued |
1,023,282 |
3,152,989 |
- |
4,176,271 |
|
799,807 |
2,200,064 |
- |
2,999,871 |
|
Lease liability |
69,821 |
290,010 |
- |
359,831 |
|
68,504 |
279,610 |
- |
348,114 |
|
Accruals and contract liabilities |
239,749 |
- |
- |
239,749 |
|
301,067 |
- |
- |
301,067 |
|
Income tax liabilities |
105,841 |
59,690 |
- |
165,531 |
|
76,468 |
32,337 |
- |
108,805 |
|
Other liabilities |
348,982 |
101,449 |
- |
450,431 |
|
452,150 |
108,526 |
- |
560,676 |
|
Total liabilities |
44,272,031 |
12,156,580 |
- |
56,428,611 |
|
41,176,258 |
11,271,355 |
- |
52,447,613 |
|
|
|
|
|
|
|
|
|
|
|
|
Net |
(13,601,407) |
18,227,375 |
4,765,960 |
9,391,928 |
|
(12,213,924) |
15,621,868 |
5,014,299 |
8,422,243 |
25. Related party disclosures
In accordance with IAS 24 "Related Party Disclosures", parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions. In considering each possible related party relationship, attention is directed to the substance of the relationship, not merely the legal form.
Related parties may enter into transactions which unrelated parties might not, and transactions between related parties may not be affected on the same terms, conditions and amounts as transactions between unrelated parties.
The volumes of related party transactions, outstanding balances at 30 June 2026 and 31 December 2025, and related expenses and income for the period ended 30 June 2026 and 30 June 2025 are as follows:
|
|
At 30 June 2026 (unaudited) |
|
At 31 December 2025 |
||||
|
|
Associates |
|
Key management personnel* |
|
Associates |
|
Key management personnel* |
|
Loans outstanding at |
- |
|
8,701 |
|
- |
|
10,254 |
|
Deposits at |
13 |
|
29,405 |
|
- |
|
30,333 |
|
Debt securities issued at |
- |
|
15,346 |
|
- |
|
13,572 |
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2026 (unaudited) |
|
At 30 June 2025 (unaudited) |
||||
|
|
Associates |
|
Key management personnel* |
|
Associates |
|
Key management personnel* |
|
Interest income on loans for the six months ended 30 June |
- |
|
540 |
|
- |
|
1,628 |
|
Expected credit loss for the six months ended 30 June |
- |
|
1 |
|
- |
|
(141) |
|
Interest expense on deposits for the six months ended 30 June |
- |
|
490 |
|
57 |
|
592 |
|
Interest expense on Debt securities issued for the six months ended 30 June |
- |
|
567 |
|
- |
|
391 |
** Key management personnel include members of Lion Finance Group PLC's Board of Directors, key executives of the Group and key subsidiaries.
Compensation of key management personnel comprised the following:
|
|
For the six months ended |
||
|
|
30 June 2026 (unaudited) |
|
30 June 2025 (unaudited) |
|
Share-based payments compensation |
41,724 |
|
32,301 |
|
Salaries and other benefits |
11,760 |
|
12,559 |
|
Cash compensation |
8,466 |
|
26,836 |
|
Termination acceleration costs |
6,701 |
|
7,418 |
|
Total key management compensation |
68,651 |
|
79,114 |
The number of key management personnel at 30 June 2026 was 31 (31 December 2025: 31).
As at 30 June 2026 interest rates on loans issued to key management personnel were within 5.5% and 17.0% (31 December 2025: 5.8% and 16.8%) for loans denominated in FC and Local currency, respectively. As at 30 June 2026 interest rates on deposits placed by key management personnel were within 0.0% and 12.3% (31 December 2025: 0.0% and 13.5%) for deposits denominated in FC and Local currency, respectively.
26. Capital adequacy
The Group maintains an actively managed capital base to cover risks inherent to the business. The adequacy of the Group's capital is monitored using, among other measures, the ratios established by the NBG and CBA in supervising JSC Bank of Georgia and Ameriabank CJSC, respectively.
During the period ended 30 June 2026, the Group complied in full with all its externally imposed capital requirements.
The primary objectives of the Group's capital management are to ensure that the banks comply with externally imposed capital requirements and that the Group maintains strong credit ratings and healthy capital ratios in order to support its business and to maximise shareholder value. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividend payment to shareholders, return capital to shareholders or issue capital securities. No changes were made in the objectives, policies and processes from the previous years.
Glossary
Operational terms
|
• |
MAC (Monthly active customer - retail or business) Number of customers who satisfied pre-defined activity criteria within the past month. |
|
• |
Digital monthly active user (Digital MAU) Number of retail customers who logged into our mobile or internet banking channels at least once within a given month; when referring to business customers, Digital MAU means number of business customers who logged into our business mobile or internet banking channels at least once within a given month. |
|
• |
Digital daily active user (Digital DAU) Average daily number of retail customers who logged into our mobile or internet banking channels within a given month. |
|
• |
Payment MAU Number of retail customers who made at least one payment with a BOG card within the past month. |
|
• |
Net Promoter Score (NPS) NPS asks: on a scale of 0-10, how likely is it that you would recommend an entity to a friend or a colleague? The responses: 9 and 10 - are promoters; 7 and 8 - are neutral; 1 to 6 - are detractors. The final score equals the percentage of the promoters minus the percentage of the detractors. |
Ratio definitions and abbreviations
|
• |
Alternative performance measures (APMs) In this announcement the management uses various APMs, which we believe provide additional useful information for understanding the financial performance of the Group. These APMs are not defined by International Financial Reporting Standards, and also may not be directly comparable with other companies who use similar measures. We believe that these APMs provide the best representation of our financial performance as these measures are used by the management to evaluate the Group's operating performance and make day-to-day operating decisions. |
|
• |
Basic earnings per share Profit for the period attributable to shareholders of the Group divided by the weighted average number of outstanding ordinary shares over the same period. |
|
• |
Book value per share Total equity attributable to shareholders of the Group divided by ordinary shares outstanding at period-end; Ordinary shares outstanding at period-end equals number of ordinary shares at period-end less number of treasury shares at period-end. |
|
• |
CBA Central Bank of Armenia. |
|
• |
CBA Common Equity Tier 1 (CET 1) capital adequacy ratio Common Equity Tier 1 capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBA. Calculations are made for Ameriabank standalone. |
|
• |
CBA Tier 1 capital adequacy ratio Tier 1 capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBA. Calculations are made for Ameriabank standalone. |
|
• |
CBA Total capital adequacy ratio Total regulatory capital divided by total risk weighted assets, both calculated in accordance with the requirements of the CBA. Calculations are made for Ameriabank standalone. |
|
• |
CBA Liquidity coverage ratio (LCR) High-quality liquid assets divided by net cash outflows over the next 30 days (as defined by the CBA). Calculations are made for Ameriabank standalone. |
|
• |
CBA Net stable funding ratio (NSFR) Available amount of stable funding divided by the required amount of stable funding (as defined by the CBA). Calculations are made for Ameriabank standalone. |
|
• |
Constant currency basis (CC) To eliminate the impact of foreign exchange fluctuations, constant currency growth for loans and deposits was calculated using the exchange rates as at 31 March 2026 for quarter-over-quarter growth and as at 30 June 2025 for year-over-year growth. These calculations were performed separately for the GFS and AFS segments. |
|
• |
Cost of credit risk ratio Expected loss on loans to customers, factoring and finance lease receivables for the period divided by monthly average gross loans to customers, finance lease and factoring over the same period (annualised where applicable). |
|
• |
Cost of deposits Interest expense on client deposits and notes for the period divided by monthly average client deposits and notes over the same period (annualised where applicable). |
|
• |
Cost of funds Interest expense for the period divided by monthly average interest-bearing liabilities over the same period (annualised where applicable). |
|
• |
Cost:income ratio Operating expenses divided by net operating income. |
|
• |
FC Foreign currency. |
|
• |
Full-scale branch A banking branch that provides all banking services. |
|
• |
Interest-bearing liabilities Amounts owed to credit institutions, client deposits and notes, and debt securities issued. |
|
• |
Interest-earning assets (excluding cash) Amounts due from credit institutions, investment securities (but excluding corporate shares) and loans to customers, factoring and finance lease receivables. |
|
• |
NBG Liquidity coverage ratio (LCR) High-quality liquid assets divided by net cash outflows over the next 30 days (as defined by the NBG). Calculations are made for Bank of Georgia standalone, based on IFRS. |
|
• |
NBG Net stable funding ratio (NSFR) Available amount of stable funding divided by the required amount of stable funding (as defined by the NBG). Calculations are made for Bank of Georgia standalone, based on IFRS. |
|
• |
LC Local currency. |
|
• |
Leverage (times) Total liabilities divided by total equity. |
|
• |
Liquid assets Cash and cash equivalents, amounts due from credit institutions and investment securities. |
|
• |
Loan yield Interest income from loans to customers, factoring and finance lease receivables for the period divided by monthly average gross loans to customers, factoring and finance lease receivables over the same period (annualised where applicable). |
|
• |
NBG National Bank of Georgia. |
|
• |
NBG (Basel III) Common Equity Tier 1 (CET 1) capital adequacy ratio Common Equity Tier 1 capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG. Calculations are made for Bank of Georgia standalone, based on IFRS. |
|
• |
NBG (Basel III) Tier 1 capital adequacy ratio Tier 1 capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG. Calculations are made for Bank of Georgia standalone, based on IFRS. |
|
• |
NBG (Basel III) Total capital adequacy ratio Total regulatory capital divided by total risk weighted assets, both calculated in accordance with the requirements of the NBG. Calculations are made for Bank of Georgia standalone, based on IFRS. |
|
• |
Net interest margin (NIM) Net interest income for the period divided by monthly average interest earning assets excluding cash and cash equivalents and corporate shares over the same period (annualised where applicable). |
|
• |
NMF Not meaningful; used when percentage changes are distorted by zero or missing comparatives, or when the resulting change is above 200 percent. |
|
• |
Non-performing loans (NPLs) The principal and/or interest payments on loans overdue for more than 90 days; or the exposures experiencing substantial deterioration of their creditworthiness and the debtors assessed as unlikely to pay their credit obligation(s) in full without realisation of collateral. |
|
• |
NPL coverage ratio Allowance for expected credit loss for loans to customers, finance lease and factoring receivables divided by NPLs. |
|
• |
NPL coverage ratio adjusted for discounted value of collateral Allowance for expected credit loss on loans to customers, finance lease and factoring receivables, plus the discounted value of collateral for the NPL portfolio (capped at the respective loan amount), divided by total NPLs. |
|
• |
One-off items Significant items that do not arise during the ordinary course of business. |
|
• |
Operating leverage Percentage change in net operating income less percentage change in operating expenses. |
|
• |
Return on average total assets (ROAA) Profit for the period divided by monthly average total assets for the same period (annualised where applicable). |
|
• |
Return on average total equity (ROAE) Profit for the period attributable to shareholders of the Group divided by monthly average equity attributable to shareholders of the Group for the same period (annualised where applicable). |
|
• |
Transactional branch Bank branch that is mostly used for transactional services by clients. Such branches do not provide complex banking services, such as issuing mortgages, services to legal clients, etc. |
Lion Finance Group PLC profile
Lion Finance Group PLC (formerly Bank of Georgia Group PLC; the "Company" or the "Group" when referring to the group companies as a whole) is an LSE-listed company whose main subsidiaries provide banking and financial services focused in the high-growth Georgian and Armenian markets through leading, customer-centric, universal banks - Bank of Georgia in Georgia and Ameriabank in Armenia. By building on our competitive strengths, we are committed to driving business growth, sustaining high profitability, and generating strong returns, while creating opportunities for our stakeholders and making a positive contribution in the communities where we operate.
Lion Finance Group PLC is listed on the London Stock Exchange's main market in the Equity Shares (Commercial Companies) category and is a constituent of the FTSE 100 index. Ticker: BGEO.
Legal entity identifier: 213800XKDG12NQG8VC53
Registered address: 29 Farm Street, London, W1J 5RL, United Kingdom; Registered under number 10917019 in England and Wales
Company secretary: Computershare Company Secretarial Services Limited (The Pavilions, Bridgwater Road, Bristol BS13 8FD, United Kingdom)
Registrar: Computershare Investor Services PLC (The Pavilions Bridgwater Road, Bristol BS99 6ZZ, United Kingdom)
Please note that Investor Centre is a free, secure online service run by our Registrar, Computershare, giving you convenient access to information on your shareholdings.
Investor Centre Web Address: www.uk.computershare.com/Investor/#Home
Investor Centre Shareholder Helpline: +44 (0)370 873 5866
Auditors: PricewaterhouseCoopers LLP (7 More London Riverside, London SE1 2RT, United Kingdom)
Contacts:
Email: ir@lfg.uk
Telephone: +44(0) 203 178 4052
Sam Goodacre (Advisor to the CEO): sgoodacre@lfg.uk; +44 745 398 8513
Nini Arshakuni (Head of Investor Relations): narshakuni@lfg.uk; +44 203 178 4034
Further information
For more on results publications, go to Results Centre on https://lionfinancegroup.uk/results-center/quarterly-earnings/
For more on investor information, go to https://lionfinancegroup.uk/investor-information/shareholder-meetings/
For news updates, go to https://lionfinancegroup.uk/news/news-announcements/
For share price information, go to https://lionfinancegroup.uk/investor-information/share-price/
Forward-looking statements
This announcement contains forward-looking statements, including, but not limited to, statements concerning expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, competitive strengths and weaknesses, plans or goals relating to financial position and future operations and development. Although Lion Finance Group PLC believes that the expectations and opinions reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations and opinions will prove to have been correct. By their nature, these forward-looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Important factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements, certain of which are beyond our control, include, among other things: macro risk, including domestic instability; geopolitical risk; credit risk; liquidity and funding risk; capital risk; market risk; regulatory and legal risk; conduct risk; financial crime risk; information security and data protection risks; operational risk; human capital risk; model risk; strategic risk; reputational risk; climate-related risk; and other key factors that could adversely affect our business and financial performance, as indicated elsewhere in this document and in past and future filings and reports of the Group, including the 'Principal risks and uncertainties' included in Lion Finance Group PLC's Annual Report and Accounts 2025 and in this Report. No part of this document constitutes, or shall be taken to constitute, an invitation or inducement to invest in Lion Finance Group PLC or any other entity within the Group, and must not be relied upon in any way in connection with any investment decision. Lion Finance Group PLC and other entities within the Group undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Nothing in this document should be construed as a profit forecast.
[1] Throughout this announcement, gross loans to customers and the related allowance for impairment are presented net of expected credit loss (ECL) on contractually accrued interest income. These do not have an effect on the net loans to customers' balance. Management believes that netted-off balances provide the best representation of the loan portfolio position.
[2] As per Ameriabank's internal classification, the Retail segment includes all individuals and those legal entities serviced by the bank's branches. The Corporate segment includes all legal entities not serviced by the branches.
[3] To provide a clearer view of our business performance, we have excluded instant Peer-to-Peer (P2P) transactions from our acquiring volume figures. Although previously classified as e-commerce activity due to the technical nature of card-to-card transfers, these transactions do not reflect our core merchant acquiring business. Accordingly, we have restated all prior period figures for consistency and comparability.
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