Lion Finance Q3 profit rises on customer growth, loan book expansion; ups dividend
Overview
UK-based financial services group's Q3 profit rose 21% and basic EPS up 22.1% y-o-y
Q3 operating income before cost of risk rose 25.4% y-o-y, driven by customer growth
Company raised quarterly dividend and extended GEL 62 mln share buyback program
Outlook
Lion Finance targets c.15% annual loan book growth over the medium term
Company aims for 20%+ return on average equity in the medium term
Lion Finance expects a 30-50% payout ratio of annual profits through dividends and buybacks
Result Drivers
CUSTOMER GROWTH - Co said growth in active customer base and larger balance sheet supported higher operating income and profit
NET INTEREST AND FEE INCOME - Net interest income and fee and commission income from both Georgian and Armenian operations were primary drivers of revenue growth
LOAN BOOK EXPANSION - Loan book growth in both Georgia and Armenia contributed to overall performance
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | GEL 15.42 | ||
Q3 Net Interest Income | GEL 941.74 mln | ||
Q3 Basic EPS | GEL 15.57 | ||
Q3 Net Fee & Commission Income | GEL 203.53 mln | ||
Q3 Operating Income | GEL 1.29 bln | ||
Q3 Pretax Profit | GEL 790.91 mln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Lion Finance Group PLC is GBp14,450.00, about 19.3% above its November 3 closing price of GBp12,110.00
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
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Nov 3 - Hamilton Lane raises full-year dividend target by 11%
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)