BTV Vier Länder Bank (BTS) Q2 2024 earnings summary

Executive summary

• Net profit before tax rose by €29.8m to €203.5m and after tax by €22.3m to €164.9m year-over-year as of June 30, 2024.

• Total assets remained stable at €14.8bn, with customer loans up €83m to €8.7bn and equity up €150m to €2.4bn since year-end 2023.

• Regulatory capital ratios improved, with CET1 and total capital ratios at 15.9% and 18.5%, respectively.

Financial highlights

• Net interest income increased by 12.7% year-over-year to €134.7m; risk provisions in lending improved, with €3.1m released versus €-5.2m last year.

• Net fee and commission income rose 5.8% to €29.6m, mainly from securities and payments.

• Equity-accounted income fell 20.7% to €39.7m; other operating income surged 39% to €121.5m, driven by consolidated cable car operations.

• Operating expenses rose 14% to €126.5m, with personnel and administrative costs both up significantly.

• Cost-income ratio held steady at 38.6%; return on equity before tax improved to 17.3%.

Outlook and guidance

• Full-year 2024 pre-tax group profit is forecast in the range of €210m to €230m, but macroeconomic and geopolitical uncertainties, especially regarding credit risk, remain high.