Wuestenrot & Wuerttembergische (WUW) Q2 2024 earnings summary

Executive summary

• Consolidated net income for H1 2024 dropped to -€14 million from €181 million year-over-year, mainly due to severe storm losses, especially from the "Orinoco" event and regional storms impacting the property/casualty segment.

• Total comprehensive income was -€51 million, down from €161 million in H1 2023, reflecting both operational losses and negative OCI from rising interest rates.

• The group continued digital transformation initiatives, expanded energy-efficient renovation services, and completed the acquisition of start:bausparkasse AG in July 2024.

Financial highlights

• Total assets increased to €69.2 billion (31 Dec 2023: €68.7 billion).

• Net financial result fell to €250 million (H1 2023: €348 million); technical result dropped to -€44 million (H1 2023: €136 million).

• Earnings per share declined to -€0.15 (H1 2023: €1.92).

• Equity decreased to €4.8 billion (31 Dec 2023: €5.0 billion), with equity per share at €51.37.

• Dividend of €0.65 per share paid in May 2024.

Outlook and guidance

• Consolidated net income for FY 2024 is expected to be significantly below the previous year (€141 million), mainly due to extraordinary storm losses and claims inflation.

• Property/casualty segment result forecasted to be well below 2023 (€8 million).

• New home loan and savings business expected to decline sharply from record levels, while new mortgage lending is projected to remain above 2023 and market average.

• Forecasts are subject to further natural disasters and macroeconomic uncertainties.