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 28%, up 5% sequentially and 20% year-over-year.

• Operating income rose 41% year-over-year to €552 million; pre-provision profit was €345 million, up 31% year-over-year.

• Cost-income ratio stood at 37.5%, and risk costs were €52 million, reflecting solid credit performance.

• Average customer loans increased 3% quarter-over-quarter; balance sheet remains robust with €15 billion in cash and LCR at 237%.

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

Financial highlights

• CET1 ratio was 13.5% after deducting €175 million for share buyback and up to €226 million for dividend accrual.

• Net interest income rose 45% year-over-year in Q2 to €457.6 million; core revenues up 40% year-over-year to €547.9 million.

• Pre-provision profit increased 3% sequentially to €345.2 million; tangible book value per share rose 4% to €39.54.

• Excess capital of €117 million, 50 basis points above 2025 target.

• LCR at 237%, with NPL ratio at 0.7%.

Outlook and guidance

• Full-year net profit target of €800 million and EPS above €10 reaffirmed, with ROTCE > 20%.

• Operating expenses expected to be around €800 million for 2025; risk cost ratio projected at ~40 basis points.

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

• CET1 ratio target of 12.5% for 2025, well above regulatory requirements.

• Management remains patient and disciplined amid a "frothy" credit market.