BAWAG Group (BG) Investor Day 2025 summary

Strategic transformation and business model

• Transitioned from a branch-heavy, traditional bank to a digital, retail, and SME-focused bank, targeting 90% of business in DACH/NL and 90% digital originations by 2027, with a high-quality advisory network.

• Achieved a 26% return on tangible equity in the past year and averaged 18% over 13 years, with EPS increasing 23x since 2012.

• Completed 14 M&A deals since 2015, including Knab and Barclays Consumer Bank Europe, adding about 2.5 million digital customers.

• Invested €1.7 billion in transformation, self-funding all acquisitions, and distributed €3 billion to shareholders since IPO.

• Built a strong culture emphasizing discipline, long-term perspective, meritocracy, and a flat organization, with senior leadership averaging 14 years and significant ownership.

Financial performance and guidance

• Targeting net profit over €1 billion and excess capital over €1 billion by 2027, with a 55% dividend payout ratio and cost-income ratio below 33%.

• Plans to generate over €2.7 billion net profit from 2025–2027, distribute €1.5 billion in dividends, and maintain a CET1 target of 12.5%.

• Expects core revenues to grow from €1.6 billion in 2024 to €2.5 billion in 2027, with net interest margin above 300 bps and EPS above €13 by 2027.

• Net interest margin targeted above 300 bps, NPL ratio below 1%, and operating expenses below €800 million by 2027.

• Loan growth expected 1–2 percentage points above GDP, with net commission income growth above 3% per annum.

M&A and growth strategy

• Maintains a disciplined M&A approach, targeting both small and large deals, with all investments underwritten to RoTCE above 20%.

• Integration playbook centralizes risk, technology, and data, while keeping commercial functions close to customers.

• Recent acquisitions of Knab and Barclays Consumer Bank Europe are expected to contribute over €350 million PBT by 2027.

• Excess capital may be deployed for further M&A, organic growth, or additional distributions.

• In-house expertise for integration, with no reliance on third parties or outsourcing.