BAWAG Group (BG) Q2 2026 earnings summary

Executive summary

• Net profit for Q2 2026 reached €255 million, up 21% year-over-year, with EPS of €3.28, ROTCE of 28.7%, and cost-income ratio of 31%.

• Core revenues were €590 million, up 8% year-over-year, and pre-provision profit was €413 million, up 19% year-over-year.

• Strong capital position with CET1 ratio at 17.4%, supporting the planned acquisition of PTSB.

• The group is preparing for the acquisition of PTSB, with the shareholder vote scheduled for July 30, 2026, and expected closing in Q4 2026 or Q1 2027, pending approvals.

• Customer loans and funding remained flat sequentially, with €14.5 billion in cash (20% of the balance sheet).

Financial highlights

• Net interest income for Q2 2026 was €488.2 million (+7% YoY), and net commission income was €101.5 million (+12% YoY).

• Operating expenses decreased 11% year-over-year to €184.9 million, with cost-income ratio at 31%.

• Profit before tax was €332.0 million (+17% YoY), and earnings per share reached €3.28 (+24% YoY).

• Risk costs for the quarter were €75.4 million, up 45% year-over-year, mainly due to growth in unsecured lending and asset mix.

• Tangible common equity increased by 8% quarter-over-quarter.

Outlook and guidance

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

• Net interest income and core revenues expected to grow over 6% in 2026, with operational expenses targeted to be over 5% below 2025 levels.

• Full-year risk cost ratio now expected around 50 basis points, reflecting asset mix shift.

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