BAWAG Group (BG) Q2 2025 earnings summary

Executive summary

• Net profit reached €210 million in Q2 2025, with EPS of €2.65 and ROTCE of 27.6%; H1 2025 net profit totaled €411 million, up 20% year-over-year, with EPS at €5.19.

• Operating performance was strong, supported by disciplined capital management and robust asset quality.

• Cost-income ratio stood at 37.5% in Q2, reflecting integration and expansion.

• Integrations of Knab and Barclays Consumer Bank Europe are progressing on schedule.

• Dividend of €432 million paid for FY 2024 and €175 million share buyback launched in July 2025.

Financial highlights

• Q2 2025 core revenues were €547.9 million, up 40% year-over-year; H1 2025 core revenues €1,082.7 million, up 38%.

• Net interest income grew 45% year-over-year in Q2 to €457.6 million; H1 up 43% to €903.4 million.

• Pre-provision profit in Q2 was €345.2 million, up 31% year-over-year; H1 at €681.4 million, up 31%.

• CET1 ratio stood at 13.5% after deducting €175 million share buyback and €226 million dividend accrual.

• LCR at 237%, with €15 billion in cash and NPL ratio at 0.7%.

Outlook and guidance

• 2025 net profit target reaffirmed at over €800 million, with EPS above €10.0; 2027 targets set at over €1 billion net profit and EPS above €13.0.

• Operating expenses projected at ~€800 million for FY 2025; risk cost ratio expected at ~40bps.

• Dividend payout ratio maintained at 55% of net profit; capital allocation focused on growth, M&A, and shareholder returns.

• Stable NII expected for the remainder of 2025, with deposit repricing as a positive tailwind.