BAWAG Group (BG) Q1 2025 earnings summary

Executive summary

• Net profit reached €201 million in Q1 2025, up 20% year-over-year, with EPS of €2.54 and ROTCE at 25.8%.

• Results include a full quarter of Knab and two months of Barclays Consumer Bank Europe, with integration progressing ahead of expectations.

• Operating income rose 39% year-over-year to €534 million; pre-provision profit was €336 million.

• Cost-income ratio improved to 37%, reflecting operational efficiency as a larger group.

• Fortress balance sheet with €15.3 billion cash, LCR at 213%, and CET1 ratio at 13.8% after acquisitions and dividend accrual.

Financial highlights

• Net interest income up 41% year-over-year to €445.8 million; net commission income up 10% to €89 million.

• Core revenues increased 36% year-over-year; operating expenses rose 57% to €197.6 million, mainly due to acquisitions.

• Pre-provision profit grew 31% to €336.2 million; cost-income ratio at 37%.

• Customer loans up 9% in Q1 and 46% year-over-year, mainly from acquisitions.

• Tangible book value per share at €40.24, up 3% sequentially.

Outlook and guidance

• 2025 financial targets reconfirmed: net profit > €800 million, EPS > €10, core revenues > €2,150 million, and operating expenses ~€800 million.

• Risk cost ratio expected at ~40 basis points for 2025, including securitization costs.

• CET1 ratio target of 12.5%, 213 basis points above MDA trigger.

• Midterm and 2027 net profit targets reconfirmed despite lower forward rates.