BAWAG Group (BG) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 reached €760 million, up 11% year-over-year, with EPS of €9.60 and ROTCE of 26%.

• Q4 2024 net profit was €240 million, ROTCE 32%, benefiting from a €35 million one-off management overlay release and Knab acquisition.

• All 2024 financial targets were achieved, and a dividend per share of €5.50 is proposed.

• Two strategic acquisitions (Knab and Barclays Consumer Bank Europe) completed, deploying €600 million of capital.

• Distributed €393 million in dividends (€5 per share) and maintained a robust liquidity position with €18 billion in cash.

Financial highlights

• Core revenues for 2024 rose 5% year-over-year to €1,621.7 million; net interest income up 5% to €1,311.8 million.

• Pre-provision profits reached €1.83 billion, up 4% year-over-year, and cost-to-income ratio was 33%.

• Operating expenses increased 12% year-over-year to €545.1 million, mainly due to Knab integration.

• NPL ratio at 0.8%, down from 1.0% prior year; NPL cash coverage increased to 47%.

• Net interest margin at 3.03% in Q4.

Outlook and guidance

• 2025 targets: net profit above €800 million, EPS above €10, core revenues above €2,150 million, and ROTCE above 20%.

• Operating expenses expected to rise to €800 million in 2025, with regulatory charges of €40 million.

• CET1 ratio target for 2025 set at 12.5%, 213bps above the MDA trigger.

• Risk cost ratio expected to increase to 40bps in 2025, reflecting new acquisitions and regulatory changes.

• 2025 will be a transition year focused on integration of recent acquisitions.