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I FTSE 100 will receive new bank stock later this month, we join HSBC, Lloyds, Barclays, NatWest, again Standard Chartered in the UK’s premier index. This is the lender’s reward with a dramatically rising share price 877% five years ago.
Shares are taking total returns north of 1,000% this time!
Let’s take a closer look at this Footsie darling to see if it might be worth considering for a purchase.
Rocket on the London Stock Exchange
The stock in question is Lion Finance Group (LSE:BGEO), formerly Bank of Georgia. It will enter the FTSE 100 in two weeks if the latest changes occur. Joining it will be an online trading platform IG Groupwhile the airline EasyJet again Hikma Pharmaceuticals he will come out.
What caused this amazing performance? Simply put, Lion Finance has benefited from Georgia’s incredibly strong economy.
Between 2021 and 2024, GDP growth averages more than 9% annually, driven by capital inflows, inflation, higher consumption, an influx of skilled migrants fleeing the war in Ukraine, growing tourism, and the nation’s position as a trade/commodity hub between East and West.
The bank has taken full advantage of these favorable conditions, with earnings growing at a compounded five-year rate of nearly 50%. Dividends and share buybacks have been plentiful, attracting more investors to the stock.
The acquisition of Ameriabank (the leading bank in neighboring Armenia) in 2024 provided a second engine for high growth.
I sold quickly
Alas, I previously owned this stock but sold it in late 2024 when things started to pick up in Georgia after a disputed election result there. This sparked massive protests across the country amid allegations of vote fraud. Things were looking very bad at the time.
With the nation’s accession to the European Union still on hold, and the government facing international scrutiny, I feared that the political turmoil might lead to a reduction in foreign direct investment and tourism. I postponed visiting Tbilisi at that time.
However, even though it made sense, my fears ended up being misplaced. Last year, Georgia’s economy grew by 7.5%. And while that marked an economic downturn over the years, Georgia remains one of the fastest growing economies in Europe and the Caucasus, as does Armenia.
Lion Finance’s net profit in 2025 jumped 21% to GEL 2.2bn (around £600m), with an exceptional return on average equity of 28.4%. Monthly active digital marketing users grew by 15% in Georgia, reaching over 1.8m, up from 355,000 in 2019.
During that period, Ameriabank’s digital active users increased by 45.3% to 336,000, the profit alone increased by 23.6%.
The value of the offer
Apparently, the bank has been firing on all cylinders in recent years. But is the stock worth considering as it enters the FTSE 100? I think so, despite the political risks mentioned above, which may arise at any time between the political parties aligned with Russia and the EU.
The forward price-to-earnings ratio is just six, well below the average of the FTSE 100 and other bank stocks. Couple this with an excellent covered interest of 3.5%, and I see great value on offer here.
Note, the International Monetary Fund projects Georgia’s GDP growth by 5% in the medium term. Also, Armenia offers long-term growth in digital banking. Today the digital penetration of Ameriabank is only about 11% of the total population.
