490%, Lion Finance Group is a new name in FTSE 250 … but what is it?

León Finance Group (LSE: BGEO) is one of the Ftse 250The best artists. The action has increased from the pandemic and after a dip that took place after Russia invaded Ukraine.

So what is the lion's finance group? Well, the company was known as Bank of Georgia until February. He recently decided to change his name to reflect his geographical presence after his acquisition of the largest Bank in Armenia, Amerriabak, in 2024.

In more general terms, its growth history has been incredibly impressive. The action has benefited from the growth of Georgia's economy, the fastest in Europe after pandemic. And despite the concerns about government priorities, he has delivered a degree of stability in the middle of the war in Ukraine.

Still incredibly cheap

One of the most surprising things in this action is the fact that it still seems cheap despite the 490% increase for five years. But that is because the profits have also improved in around 500% compared to the 2019 levels. Currently, the action is quoted 4 times the term earnings for 2025 and 3.6 times the projected profits by 2026. This represents a phenomenal discount versus the banking actions FTSE 250 and versus the bank stock listed in the United Kingdom.

In addition, dividend yield remains elevated. The current yield is 5.4% and this is expected to increase at 6.3% in 2026.

And here there is an important lesson for investors based on my own experiences. I bought what was then the Bank of Georgia's actions for around 900p per action in 2022. However, I sold in 2024 amid the concerns about the elections held in the fall, it should always be heated. However, that sale of shares could have been a mistake since the price has continued to increase. However, more interesting, my initial investment would have produced around 25% -30% in dividends annually. That is because dividend payments have increased in relation to my entrance price.

Political concerns remain

Since October 2024, Georgia has been involved in generalized political protests after parliamentary elections in dispute and the ruling decision of the Georgian Dream Party to suspend the EU adhesion conversations until 2028. Protesters, demanding new elections and the release of illegally detained people, have faced the police repression, but protests of protests, now they persist, now persist, now they persist, now they persist, now they persist, now they persist, now they persist, now they persist, now, they now persist, now, protests. Political agitation has led to international isolation, tense relations with the EU and the United States, and the introduction of laws aimed at dissent and civil society.

This instability has significantly affected Georgia's financial markets. Fitch's qualifications reduced Georgia's perspective from stable to negative, reflecting the growing anxiety for investors. Given the ongoing disturbances, political uncertainty and the potential for additional sanctions, the investment climate remains very volatile. In addition, banks generally reflect the health of the economy. That is why I am not investing in Georgia at this time. The combination of political instability and market unpredictability makes it a risk proposal. However, I think it is an action that is worth seeing closely.