BAWAG Group publishes Q1 2024 results

Net profit € 167 million and RoTCE 23.7% - Seite 2

€ 4.8 million, or 6%, to € 81.0 million.

Operating expenses increased by 6% to €126.2 million in Q1 2024 versus the prior year. The significant inflationary pressure was partially offset by several operational measures launched over the last two years.

The cost-income ratio slightly increased by 0.4 points to 32.9%. This resulted in a pre-provision profit of
€ 257.6 million, up 4% versus prior year.

Regulatory charges were € 5.2 million in Q1 2024, compared to € 41.0 million in the prior year.

Risk costs were € 29.9 million in Q1 2024, an increase of € 9.3 million, or 45%, compared to the previous year. The management overlay, which are provisions to address the uncertain macroeconomic outlook and any potential headwinds, stands at € 80 million. The NPL ratio was 1.0% at the end of March 2024.

Average customer loans were flat and average interest-bearing assets were up 1% versus the prior quarter. Average customer deposits and average customer funding were both up 1% versus the prior quarter.

At the end of March 2024, the CET1 ratio was at 15.6%. The CET1 ratio considers the deduction of € 92 million dividend accrual for Q1 2024. The dividend for the financial year 2023 of € 5.0 per share, or € 393 million in total, was paid out on April 15, 2024.

Our goal is, and will always be, maintaining a strong balance sheet, solid capitalization levels, low balance sheet leverage and conservative underwriting, a cornerstone of how we run the Bank.

Outlook and targets

Our outlook for 2024 is unchanged, and we confirm all our 2024 financial targets (which excludes M&A):

Profit before tax > € 920 million, RoTCE > 20%, and CIR < 34%.

Earnings presentation

BAWAG Group will host the earnings call with our CEO Anas Abuzaakouk and our CFO Enver Sirucic at 10 a.m. CEST on 29 April 2024. The webcast details are available on our website under Financial Results | BAWAG Group.

About BAWAG Group

BAWAG Group AG is a publicly listed holding company headquartered in Vienna, Austria, serving 2.1 million retail, small business, corporate, real estate and public sector customers across Austria, Germany, Switzerland, Netherlands, Western Europe and the United States. The Group operates under various brands and across multiple channels offering comprehensive savings, payment, lending, leasing, investment, building society, factoring and insurance products and services. Our goal is to deliver simple, transparent, and affordable financial products and services that our customers need.