In This Article:
-
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.