No prizes for guessing the FTSE 100‘s standout growth stock of the last five years. Rolls-Royce’s shares have rocketed an astonishing 1,372%. To put that into perspective, S&P 500 chip giant Nvidia has grown ‘just’ 885%. Nothing else in the blue-chip index comes close. Well, almost nothing.
One lesser-known FTSE 100 stock has surged an incredible 675% over the same five-year period. Many investors probably haven’t even heard of it.
Here’s something else that might grab their attention. Rolls-Royce now trades on a price-to-earnings ratio of almost 50. That’s a huge vote of confidence from investors, but it also leaves little room for disappointment. If earnings or cash flow fall short of expectations, its shares could come under pressure.
The company I’m talking about trades on a far less demanding P/E ratio of just 7.8. It’s name? Lion Finance Group (LSE: BGEO).
Why is Lion Finance roaring today?
Formerly Bank of Georgia Group, it changed its name in 2024 to reflect its expansion beyond its home market. It now has a major presence in Armenia following its acquisition of Ameriabank in March 2024. That partly explains why it still flies under so many investors’ radars. Also, it only blasted into the FTSE 100 in March this year.
Naturally, there’s a good reason why the valuation is so much lower than Rolls-Royce’s. Georgia borders Russia, and capital Tbilisi has seen repeated political unrest and protests since the disputed 2024 parliamentary election. This isn’t a stock for nervous investors. But here are three reasons I like it.
Checking out the risks and rewards
It’s making bags of money. Lion Finance is generating a phenomenal return on equity of around 28%. That’s roughly double that achieved by more established FTSE 100 banks. 2025 profit before one-off items jumped 20.9% to £608m.
Management has been rewarding shareholders. Investors have enjoyed generous dividends, with a trailing yield of 2.5% despite all that share price growth. Share buybacks totalled £57.6m in 2025.
Lion is picking up the pace. It’s one of the fastest-growing banking groups in the Caucasus, with plenty of room to expand further.
You won’t be surprised to learn there are risks too.
Geopolitical uncertainty. Any deterioration in regional stability could quickly hit investor sentiment.
Profits can be volatile. Investors are exposed to currency swings between the Georgian lari and sterling.
News is on the way. The group’s first-half results are due on 11 August. The market’s reaction could send the shares sharply in either direction, a concern for anyone buying today.
That’s the nature of investing in higher-growth companies. The rewards can be exceptional, but so can the volatility.
The Lion Finance share price is up 52% in the last 12 months. Which means it beats Rolls-Royce, up a modest 37%. I think Lion is worth considering, but mostly for investors who already have a well-diversified portfolio and want exposure to a fast-growing overseas bank at what still looks like a very reasonable valuation. I’ve got plenty of exposure to UK banks. This is something different. I’ll be watching it very closely when those results arrive.
Should you invest £5,000 in Lion Finance Group Plc right now?
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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Lion Finance Group Plc made the list?
Harvey Jones owns shares in Rolls-Royce.
