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.

• 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.

• Integration of Barclays Consumer Bank Europe and Knab progressing ahead of expectations, with 75% of TSAs exited at Knab.

• 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.

• Customer loans increased 9% in Q1 and 46% year-over-year, mainly due to acquisitions.

• Operating expenses rose 20% sequentially to €197.6 million, mainly due to acquisitions; full-year cost guidance at €800 million.

• Risk costs at €59.2 million, up 98% year-over-year, reflecting inclusion of unsecured credit card portfolio risk costs.

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

Outlook and guidance

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

• Return on tangible common equity target >20% for 2025 and beyond; net profit >€1 billion and excess capital >€1 billion by 2027.

• Quarterly net interest income expected above €450 million; net commission income above €85 million.

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

• CET1 ratio target of 12.5%, 213bps above MDA trigger; midterm targets and capital distribution plans reaffirmed.