BAWAG Group (BG) Q1 2026 earnings summary

Executive summary

• Net profit reached €232 million in Q1 2026, up 16% year-over-year, with strong core revenue growth and return on tangible common equity of 27.6–28%.

• Cost-income ratio improved to 32.5–33%, driven by efficiency measures and lower operating expenses.

• Integration of Knab completed; easybank integration progressing; selected as preferred buyer for PTSB in Ireland, with closing expected in Q4 2026 or Q1 2027.

• Fortress balance sheet with €13.6–14 billion in cash (~19–20% of assets), LCR of 176%, and pro forma CET1 ratio of 15.4%.

Financial highlights

• Core revenues rose 8% year-over-year to €579 million; net interest income up 8% to €480 million; net commission income up 11% to €99 million.

• Pre-provision profit grew 16% year-over-year to €391 million.

• Operating expenses decreased 3–5% year-over-year to €188 million.

• Customer loans up 1% quarter-over-quarter; customer deposits down 3% due to seasonality.

• Earnings per share at €3.00 for Q1 2026; tangible book value per share increased 17% year-over-year to €44.38.

Outlook and guidance

• 2026 targets reconfirmed: net profit over €960 million, ROTCE over 20%, CIR under 33%, CET1 target of 12.5%.

• Operational expenses expected to be more than 5% below 2025 levels; risk cost ratio forecasted at ~45bps for 2026.

• PTSB acquisition expected to be P&L accretive from day one, with net profit contribution over €250 million by 2028 and EPS accretion over 20%.

• Updated midterm outlook to be provided with full-year earnings, post-PTSB closing.