BAWAG Group publishes Q1 2024 results

Net profit € 167 million and RoTCE 23.7%

• Q1 ’24 net profit of € 167 million, EPS of € 2.11 and RoTCE of 23.7%
• Average customer deposits +1% and average customer loans flat versus prior quarter
• Pre-provision profit of € 258 million (+4% vPY) and CIR at 32.9%
• Risk-cost ratio of 28 basis points … NPL ratio at 1.0%
• CET1 ratio of 15.6% post-deduction of dividend accrual of € 92 million for Q1 ‘24
• Targets for 2024 reconfirmed: Profit before tax > € 920 million, RoTCE >20%, and CIR < 34%

Today, BAWAG Group released its results for the first quarter 2024, reporting a net profit of € 167 million, earnings per share of € 2.11, and a RoTCE of 23.7%. The operating performance of our business was strong with pre-provision profits of € 257.6 million and a cost-income ratio of 32.9%.

Anas Abuzaakouk, CEO, commented: “In the first quarter we delivered a strong set of results with net profit of € 167 million and an RoTCE of 24%. We generated a significant amount of capital during the quarter, increasing our CET1 ratio by 90 basis points to 15.6% and continuing to build up our excess capital of € 623 million, after deducting the first quarter dividend accrual of € 92 million. We have earmarked our excess capital for the acquisition of Knab bank, which we signed earlier this year, in addition to other M&A at an advanced stage. These strategic opportunities will be highly accretive to the Group in both earnings as well as allowing us to grow our Retail & SME franchise and overall footprint in the DACH/NL region. Today, I am more excited about our future growth opportunities than I have ever been.”

Delivering strong Q1 2024 results

in € million	Q1 2024	Q1 2023	Change versus prior year (in %)
Core revenues	392.8	366.3	7%
Net interest income	311.8	290.0	8%
Net commission income	81.0	76.2	6%
Operating income	383.8	366.9	5%
Operating expenses	(126.2)	(119.4)	6%
Pre-provision profit	257.6	247.5	4%
Regulatory charges	(5.2)	(41.0)	(87%)
Risk costs	(29.9)	(20.6)	45%
Profit before tax	222.8	186.4	20%
Net profit	166.9	139.6	20%
RoTCE	23.7%	21.2%	2.5pts
CIR	32.9%	32.5%	0.4pts
Earnings per share (€)	2.11	1.69	24.9%
Liquidity Coverage Ratio (LCR)	217%	215%	2pts

Core revenues increased by 7% to € 392.8 million in Q1 2024 versus the prior year. Net interest income increased by € 21.8 million, or 8%, to € 311.8 million. Net fee and commission income increased by