In This Article:
-
Net Profit: EUR760 million for full-year 2024; EUR240 million in Q4 2024.
-
Earnings Per Share (EPS): EUR9.60 for full-year 2024.
-
Return on Tangible Common Equity (ROTCE): 26% for full-year 2024; 32% in Q4 2024.
-
Pre-Provision Profits: EUR1.083 billion, up 4% year-over-year.
-
Cost Income Ratio: 33% for full-year 2024.
-
Total Risk Costs: EUR82 million with an NPL ratio of 80 basis points.
-
Dividends Distributed: EUR393 million in 2024.
-
Liquidity Position: Approximately EUR18 billion in cash, 25% of the balance sheet.
-
Average Customer Loans: Up 28% quarter-over-quarter; up 23% year-over-year.
-
Average Customer Deposits: Up 24% quarter-over-quarter; up 26% year-over-year.
-
CET1 Ratio: 15.2% at year-end 2024; pro forma 13.8% considering acquisitions.
-
Retail & SME Net Profit: EUR525 million, flat year-over-year.
-
Corporate Real Estate & Public Sector Net Profit: EUR188 million, up 11% year-over-year.
-
Total Assets: Exceed EUR71 billion after Knab acquisition.
-
Net Interest Income (NII): Up 19% quarter-over-quarter with a net interest margin of 303 basis points.
-
Operating Expenses: EUR165 million in Q4 2024, up 30% quarter-over-quarter.
-
2025 Net Profit Target: Greater than EUR800 million.
-
2025 Earnings Per Share Target: Greater than EUR10.
Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Bawag Group AG (BWAGF) delivered a record net profit of EUR760 million for the full-year 2024, with earnings per share of EUR9.60 and a return on tangible common equity of 26%.
-
The company achieved a strong pre-provision profit of EUR1.083 billion, up 4% from the previous year, and maintained a low cost-income ratio of 33%.
-
Bawag Group AG (BWAGF) successfully closed acquisitions of Knab and Barclays Consumer Bank Europe, which are expected to add significant pre-tax profit in the coming years.
-
The company's liquidity position is robust, with approximately EUR18 billion in cash, representing 25% of the balance sheet, allowing for strategic deployment into customer lending and securities portfolios.
-
The Retail & SME business delivered a full-year net profit of EUR525 million, generating a strong return on tangible common equity of 32% and a cost-income ratio of 33%.
Negative Points
-
High interest rates and inflation negatively impacted retail mortgage lending opportunities and corporate lending throughout 2024.
-
The corporate lending market remains challenging due to high availability of capital and reduced risk-adjusted returns.
-
Operating expenses increased by 18% year-over-year, largely driven by the acquisition of Knab.
-
The company expects an increase in regulatory charges in 2025, with the Austrian government introducing a higher bank levy.
-
Commercial real estate exposure, particularly in the office sector, faces headwinds from higher interest rates, although the company has reduced its exposure.