BAWAG Group publishes Q2 2024 results: Net profit € 175 million and
RoTCE 24.3%
- Q2 ’24 net profit of € 175 million, EPS of € 2.22 and
RoTCE of 24.3%
- Average customer deposits +1% and average customer
loans -1% vs. prior quarter
- Pre-provision profit of € 263 million (+2% vPQ) and CIR
at 32.6%
- Risk-cost ratio of 27 basis points … NPL ratio at
1.1%
- H1 ‘24 Net profit of € 342 million (+7% vs. H1 ‘23) and
RoTCE of 24.0%
- CET1 ratio of 16.5% post deduction of dividend accrual
of € 188 million for H1 ‘24
- Acquisition of Barclays Consumer Bank Europe signed in
July … second acquisition signed in 2024
- Targets for 2024 reconfirmed: Profit before tax > €
920 million, RoTCE >20%, and CIR < 34%
VIENNA, Austria – Today, BAWAG Group
released its results for the second quarter 2024, reporting a net
profit of € 175 million, earnings per share of € 2.22, and a RoTCE
of 24.3%. The operating performance of our business was strong with
pre-provision profits of € 263 million and a cost-income ratio of
32.6%. This resulted in a net profit of € 342 million, € 4.33
earnings per share and a RoTCE of 24.0% for the first half
2024.
Anas Abuzaakouk, CEO, commented: “In the
second quarter we delivered a strong set of results with net profit
of € 175 million and an RoTCE of 24.3%. We generated a significant
amount of capital during the quarter, increasing our CET1 ratio by
90 basis points to 16.5%. We closed the second quarter with excess
capital of € 770 million, which we are investing in
two strategic acquisitions. In February we signed the acquisition
of knab bank based in the Netherlands, which we forecast to add
over € 150 million pre-tax profit by 2026. In early July, we signed
the acquisition of Barclays consumer lending business in Germany,
which we forecast to add over € 100 million pre-tax profit by 2027.
We have purposely maintained dry powder to pursue these two
strategic acquisitions that will be highly accretive to the
franchise and will further position us for continued profitable
growth in our core markets of the DACH/NL region focused on Retail
& SME. Today, I am more excited about our future growth
opportunities than I have ever been and look forward to the many
opportunities ahead of us.”
Delivering strong HY 2024 results
in € million |
Q2 '24 |
Change versus prior year (in %) |
H1 2024 |
Change versus prior year (in %) |
Core revenues |
391.4 |
1% |
784.2 |
4% |
Net interest income |
309.7 |
̶ |
621.5 |
4% |
Net commission
income |
81.7 |
7% |
162.7 |
6% |
Operating income |
390.1 |
2% |
773.9 |
3% |
Operating expenses |
(127.1) |
5% |
(253.3) |
5% |
Pre-provision profit |
263.0 |
- |
520.6 |
2% |
Regulatory charges |
(2.7) |
nm |
(8.0) |
(79%) |
Risk costs |
(27.9) |
36% |
(57.8) |
41% |
Profit before tax |
233.5 |
(5%) |
456.3 |
6% |
Net profit |
175.2 |
(3%) |
342.1 |
7% |
|
|
|
|
|
RoTCE |
24.3% |
(3.3pts) |
24.0% |
- |
CIR |
32.6% |
1.1pts |
32.7% |
0.7pts |
Earnings per share (€) |
2.22 |
1% |
4.33 |
12% |
Liquidity Coverage Ratio (LCR) |
220% |
13pts |
220% |
13pts |
Core revenues increased by 1% to € 391.4
million in Q2 2024 versus the prior year. Net interest
income is flat at € 309.7 million. Net fee and
commission income increased by 7% to € 81.7 million.
Operating expenses increased by 5% to € 127.1
million in Q2 2024 versus the prior year. The significant
inflationary pressure was partially offset by several operational
measures launched over the last years.
The cost-income ratio increased by 1.1 points
to 32.6% as a reflection of inflationary pressure. This resulted in
a pre-provision profit of € 263 million for the second quarter
2024, flat versus prior year.
Risk costs were € 27.9 million in Q2 2024, an
increase of € 7.4 million, compared to the previous year. The
management overlay remained at € 80 million. The NPL ratio was 1.1%
at the end of June 2024.
Average customer loans decreased by 1% and
average interest-bearing assets were down 2%
versus the prior quarter. Average customer deposits and
average customer funding were up 1% versus the prior
quarter, respectively.
At the end of June 2024, the CET1 ratio was at
16.5%, a net increase of 90 basis points compared to the first
quarter 2024. The CET1 ratio considers the deduction of € 188
million dividend accrual for the first half 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.
Acquisition of Barclays Consumer Bank Europe
signed
On July 4, 2024, BAWAG Group signed the acquisition of Barclays
Consumer Bank Europe. The acquisition will expand BAWAG Group’s
footprint in the DACH/NL region and position it for future growth
in one of the bank’s core markets. As of March 31, 2024, Barclays
Consumer Bank Europe had gross assets of € 4.7 billion primarily
comprising of card and loan receivables, of which approximately € 2
billion are credit card receivables. BAWAG Group will work with the
current leadership team to continue growing its Retail business in
Germany and Austria.
The acquisition creates long-term value to BAWAG’s franchise,
with an expected profit before tax contribution of greater than €
100 million in 2027 once the deal is fully integrated. The CET1
impact of the transaction is expected at ~140 basis points.
The transaction, subject to customary closing conditions,
including regulatory approvals, is expected to occur in Q4 2024 /
Q1 2025.
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 18 July
2024. The webcast details are available on our website under
Financial Results | BAWAG Group. The half-year report will be
published on 26 July 2024.
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.
BAWAG Group’s Investor Relations website
https://www.bawaggroup.com/ir contains further information,
including financial and other information for investors.
Forward looking statement
This release contains “forward-looking statements” regarding the
financial condition, results of operations, business plans and
future performance of BAWAG Group. Words such as “anticipates,”
“believes,” “estimates,” “expects,” “forecasts,” “intends,”
“plans,” “projects,” “may,” “will,” “should,” “would,” “could” and
other similar expressions are intended to identify these
forward-looking statements. These forward-looking statements
reflect management’s expectations as of the date hereof and are
subject to risks and uncertainties that may cause actual results to
differ materially from those projected. These risks and
uncertainties include, but are not limited to, economic conditions,
the regulatory environment, loan concentrations, vendors,
employees, technology, competition, and interest rates. Readers are
cautioned not to place undue reliance on the forward-looking
statements as actual results may differ materially from the results
predicted. Neither BAWAG Group nor any of its affiliates, advisors
or representatives shall have any liability whatso-ever (in
negligence or otherwise) for any loss howsoever arising from any
use of this report or its content or otherwise arising in
connection with this document. This report does not constitute an
offer or invitation to purchase or subscribe for any securities and
neither it nor any part of it shall form the basis of or be relied
upon in connection with any contract or commitment whatsoever. This
statement is included for the express purpose of invoking “safe
harbor provisions”.
Contact:
Financial Community:
Jutta Wimmer (Head of Investor Relations)
Tel: +43 (0) 5 99 05-22474
IR Hotline: +43 (0) 5 99 05-34444
E-mail: investor.relations@bawaggroup.com
Media:
Manfred Rapolter (Head of Corporate Affairs)
Tel: +43 (0) 5 99 05-31210
E-mail: communications@bawaggroup.com
This text can also be downloaded from our website:
https://www.bawaggroup.com
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