BAWAG Group publishes Q3 2024 results: Net profit € 178 million and
RoTCE 24.0%
BAWAG GROUP PUBLISHES Q3 2024 RESULTS: NET
PROFIT € 178 MILLION AND ROTCE 24.0%
- Q3 '24 net profit of € 178
million, EPS of € 2.25 and RoTCE of 24.0%
- Pre-provision profit of € 265
million (-1% vPQ) and CIR at 32.3%
- Risk-cost ratio of 0.25% … NPL
ratio at 1.0%
- September ‘24 YTD Net profit
of € 520 million (+3% vs. prior year) and RoTCE of
23.9%
- CET1 ratio of 17.2% post
deduction of dividend accrual of € 286 million for the first three
quarters 2024
- Approval for Knab acquisition
received on 25 October 2024
- Adjusting CET1 ratio target to
12.5% (up 25 basis points)
- Update FY ‘24 Targets: Profit
before tax > € 950 million, pro-forma CET1 >14.0%, RoTCE
>20%, and CIR <34%
VIENNA, Austria – October 28, 2024
– Today, BAWAG Group released its results for the third quarter
2024, reporting a net profit of € 178 million, earnings per share
of € 2.25, and a RoTCE of 24.0%. The operating performance of our
business was strong with pre-provision profits of € 265 million and
a cost-income ratio of 32.3%. This resulted in a net profit of €
520 million, € 6.58 earnings per share and a RoTCE of 23.9% for the
first nine months 2024.
Anas Abuzaakouk, CEO, commented:
“We delivered net profit of € 178 million, EPS of € 2.25, and a
return on tangible common equity of 24.0% during the third quarter
2024. The operating performance of our business was very strong
with pre-provision profits of € 265 million and a cost-income ratio
of 32.3%. In addition to our strong operating performance, the
first three quarters of the year have been defined by M&A and
Integration planning ensuring constant dialogue with the
businesses, our regulators, and laying out detailed integration
plans. There has been a great deal of work taking place behind the
scenes. I’m happy to announce that we received formal ECB approval
for the acquisition of Knab in the Netherlands last Friday. We are
excited about welcoming the team, rolling out the integration
plans, and pursuing the many opportunities ahead of us as one
team.We plan to provide more details on both acquisitions, our
integration plans, Group targets, and capital plans during our
investor day scheduled on March 4, 2025 .”
Delivering strong results in the first nine
months 2024
|
in € million |
Q3 '24 |
Change vs prior year (in %) |
YTD '24 |
Change vs prior year (in %) |
|
Core revenues |
387.9 |
(1%) |
1,172.1 |
3% |
|
Net interest income |
305.3 |
(3%) |
926.8 |
1% |
|
Net commission income |
82.6 |
8% |
245.3 |
7% |
|
Operating income |
392.2 |
1% |
1,166.1 |
2% |
|
Operating expenses |
(126.8) |
4% |
(380.1) |
5% |
|
Pre-provision profit |
265.4 |
(1%) |
786.0 |
1% |
|
Regulatory charges |
(3.0) |
(9%) |
(11.0) |
(74%) |
|
Risk costs |
(25.4) |
16% |
(83.2) |
32% |
|
Profit before tax |
237.7 |
(2%) |
694.0 |
3% |
|
Net profit |
178.0 |
(4%) |
520.1 |
3% |
|
|
|
|
|
|
|
RoTCE |
24.0% |
(3.6pts) |
23.9% |
(0.9pts) |
|
CIR |
32.3% |
1.0pts |
32.6% |
0.8pts |
|
Earnings per share (€) |
2.25 |
—% |
6.58 |
7% |
|
Liquidity Coverage Ratio (LCR) |
260% |
42pts |
260% |
42pts |
Core revenues decreased by (1%) to
€ 387.9 million in Q3 '24 versus the prior year. Net
interest income was at € 305.3 million, down by (3%)
versus 2023. Net fee and commission income
increased by 8% to € 82.6 million.
Operating expenses increased by 4%
to € (126.8) million in Q3 '24 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
1.0 point to 32.3% as a reflection of inflationary pressure. This
resulted in a pre-provision profit of € 265.4 million for the third
quarter 2024, down by (1%) versus prior year.
Risk costs were € (25.4) million
in Q3 '24, up by € 3.5 million compared to the previous year. We
used € 10 million of the management overlay, with € 70 million
remaining as of September '24. The NPL ratio was
1.0% at the end of September '24.
Average customer loans were down
by (2%) and average interest-bearing assets were
down by (3%) versus the prior quarter. Average customer
deposits were up by 1% and average customer funding was
flat versus the prior quarter, excluding the sold German
bausparkasse business.
At the end of Q3 ‘24, the CET1
ratio was at 17.2%, a net increase of 70 basis
points compared to the prior quarter. The CET1 ratio considers the
deduction of € 286 million dividend accrual for the first nine
months 2024. Given the significant growth of the business, our
expanding geographic footprint, and the integration work ahead of
us, we have decided to increase our CET1 target by 25 basis points
to 12.5%.
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.
Targets
We updated our 2024 profit before tax target and
confirm as follow:
Profit before tax > €950 million, pro-forma CET1 Ratio
>14.0%, RoTCE >20%, and CIR <34%.
We will hold an Investor Day on March 4, 2025.
Earnings presentation
BAWAG Group will host the earnings call with our
CEO Anas Abuzaakouk and our CFO Enver Sirucic at 10 a.m. CET on 28
October 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.
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 whatsoever (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”.
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
Grafico Azioni Bawag (TG:0B2)
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Da Nov 2024 a Dic 2024
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