BAWAG Group AG

Strong profit before tax of EUR 382 million for Q1-3 2017

Business news for the stock market

Vienna (pta007/16.11.2017/07:55) - -
- Profit before tax of EUR 382 million, +4% vs. prior year ... highest reported quarterly PBT ever in Q3
- Return on tangible equity (@12% CET1) of 17.1%
- Core revenues of EUR 744 million, +7%
- Operating expenses flat despite integration costs from acquisitions in Q4 2016
- Cost-income ratio improved to 41.4%, -140bps ... Q3 cost-income ratio at 40.8%
- Net interest margin increased by 6bps to 2.29% compared to Q2
- Fully loaded CET1 ratio of 16.2%, +260bps versus year-end 2016 and +70bps versus Q2

BAWAG Group today reports a strong profit before tax of EUR 382 million for the first three quarters 2017, up 4% versus the prior year primarily driven by higher core revenues. The return on tangible equity (@12% CET1) [ 1 ] came in at 17.1%. Operating expenses remained flat despite integration costs from acquisitions completed in the fourth quarter 2016. The cost-income ratio was down 140bps to 41.4% (Q3: 40.8%). The net interest margin in the third quarter 2017 increased by 6bps to 2.29% compared to the second quarter. The fully loaded CET1 ratio increased by 260bps to 16.2% versus year-end 2016.

"Our IPO at the end of October was a significant milestone in our company's 130-year history and a testimony to our strong performance in recent years. The IPO was the largest in Austria's history and represents a turning point for the Bank as we transition from private to public ownership. I want to thank all involved for their tremendous efforts in making this a reality, recognizing in particular our amazing team at the Bank. I also want to extend a special thanks to our shareholders, both old and new, for their trust, confidence and faith in our organization and future. We are now fully focused on continuing our successful journey as a public company, which means continuing to deliver value to our customers and shareholders. In the first three quarters 2017, profit before tax (PBT) came in at EUR 382 million, up 4% compared to the same period last year, with the highest reported quarterly PBT ever in the third quarter. We will continue to execute on a variety of operational and strategic initiatives during the fourth quarter 2017. Our focus remains on driving operational excellence and profitable growth in the coming years," commented Chief Executive Officer Anas Abuzaakouk.