Capital distribution policy

Lion Finance Group PLC (formerly Bank of Georgia Group PLC) may by ordinary resolution declare full year dividends provided that no such dividend shall exceed the amount recommended by the Board of Directors and the Board may declare interim dividends. As Lion Finance Group PLC is a holding company, the Group relies primarily on dividends and other statutorily (if any) and contractually permissible payments from its subsidiaries to generate the funds necessary to meet its obligations and pay dividends to its shareholders.

Lion Finance Group PLC’s capital distribution policy incorporates a progressive ordinary cash dividend, supplemented by additional share repurchases as and when appropriate. It is the Board’s overall capital distribution policy to target a payout ratio in the range of 30-50% of annual profits. The Board expects to ensure healthy capital ratios, above minimum regulatory requirements, and take into consideration expected future capital requirements, including the full loading of Basel III requirements on minimum capital ratios, ongoing regulatory capital developments and the growth opportunities available. Under normal circumstances, we aim to pay dividends in cash on a quarterly basis.