Bawag Group Ag · VIE:BG
Bawag — Bawag Group Ag Ord — Q2 2025 Earnings Presentation
25 slides from Bawag's earnings presentation, Jul 23, 2025
Slide 1: BAWAG Group Q2 2025 Results
BAWAG Group Q2 2025 Results July 23, 2025
Slide 2: Agenda
AGENDA 1 Q2 2025 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION July 23, 2025 2
Slide 3: Highlights Q2 2025
HIGHLIGHTS Q2 2025 EARNINGS BALANCE SHEET & CAPITAL INTEGRATIONS & OUTLOOK Q2 '25: Average customer loans up 3% vPQ and average interest- Knab integration progressing well: Net profit €210m, RoTCE of 27.6% and EPS of €2.65 bearing assets up 2% vPQ Integration on plan with 100% TSAs to be exited by t
Slide 4: Capital Development
CAPITAL DEVELOPMENT ~100 basis points capital generation in Q2 '25 CAPITAL DEVELOPMENT HIGH CAPITAL-GENERATING BUSINESS Gross capital generation net RWA/other effects of ~100bps in Q2 ’25 … 91bps through earnings SHARE BUYBACK €175m share buyback above 13% distribution target (80bps) Buyback launche
Slide 5: Retail & SME
RETAIL & SME FINANCIAL PERFORMANCE CUSTOMER DEVELOPMENT DEVELOPMENTS in Q2 '25 RATIOS Developments vPQ primarily related to one additional month of contribution from Barclays Consumer Bank Europe, closed in February 2025 Q2 '25 net profit of €173m, up 10% vPQ … average assets up 4% and average depos
Slide 6: Corporates, Real Estate & Public Sector
CORPORATES, REAL ESTATE & PUBLIC SECTOR FINANCIAL PERFORMANCE CUSTOMER DEVELOPMENT : RATIOS DEVELOPMENTS in Q2 '25 Q2 '25 net profit of €38m, up 6% vPQ … average assets flat and average deposits down (13%) vPQ Pre-provision profit of €52m, down (12%) vPQ ... Operating income down (9%) vPQ Real estat
Slide 7: Agenda
AGENDA 1 Q2 2025 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION July 23, 2025 7
Slide 8: P&L & Key Ratios
P&L & KEY RATIOS DEVELOPMENTS in Q2 '25 Developments vPQ primarily related to one additional month of contribution from Barclays Consumer Bank Europe, closed in February 2025 … representing new run-rate Core revenues at €548m up 2% vPQ with NII up 3% and NCI up 1% … Net interest margin (NIM) at 3.28
Slide 9: Balance Sheet
BALANCE SHEET DEVELOPMENTS in Q2 '25 Total assets and customer loans flat vPQ Average customer deposits up 1% vPQ and average customer funding up 1% vPQ Cash at €15.0b or 21% of balance sheet … LCR at 237% CET1 ratio at 13.5% post deduction €175m share buyback and €226m H1 '25 dividend accrual Note:
Slide 10: Core Revenues
CORE REVENUES € millions Net interest margin Net commission income Net interest income (NII) up 3% vPQ … net interest margin (NIM) at 3.28% in Q2 '25 Net interest income • Includes full quarter of Barclays Consumer Bank Europe • Average 3-month Euribor down 50bps • Deposit beta at ~48% across the Gr
Slide 11: Operating Expenses
OPERATING EXPENSES € millions Operating expenses (excluding regulatory charges) CIR CIR at 37.5% in Q2 '25 up 0.5pts vPQ • Full quarter of most recent acquisition • Increase in wages from collective bargaining agreement in Austria effective as of April 1st • Post-integration synergies expected from
Slide 12: Risk Costs
RISK COSTS € millions Risk costs Risk costs/average interest-bearing assets Q2 '25 risk costs €(52)m or 37bps • Ongoing strong credit performance … NPL ratio of 0.7% Maintain safe & secure balance sheet • Focused on developed and mature markets … ~85% DACH/NL region & ~15% Western Europe / United St
Slide 13: 2025 Outlook and Targets Reconfirmed
2025 OUTLOOK AND TARGETS RECONFIRMED P&L OUTLOOK Net interest income >€1,800m 2025 FINANCIAL TARGETS FY ’24: €1,312m Net profit >€800m Core revenues >€2,150m FY ’24: €760m FY ’24: €1,622m Earnings per share >€10.0 Operating expenses FY ’24: €9.60 ~€(800)m FY ’24: €(545)m 13.0% Capital Distribution T
Slide 14: Agenda
AGENDA 1 Q2 2025 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION July 23, 2025 14
Slide 15: Integrations of Knab and Barclays Consumer Bank Europe Are Progressing Well
INTEGRATIONS OF KNAB AND BARCLAYS CONSUMER BANK EUROPE ARE PROGRESSING WELL FOCUS AREAS: WHERE WE ARE AT KNAB… WHERE WE ARE AT BARCLAYS … ✓ 75% of TSAs exited … 100% to be exited by 3rd quarter ✓ Continuing to exit TSAs in line with plan … expected TRANSITIONAL SERVICE AGREEMENT ✓ Treasury positions
Slide 16: Balance Sheet & Asset Quality
BALANCE SHEET & ASSET QUALITY Fortress balance sheet, disciplined underwriting, and long-term focus on risk-adjusted returns € billion Customer-related exposure ~85% in DACH/NL region as well as 80% secured 73 15 and public sector assets NPL ratio of 0.7% reflecting strong asset quality 27 Customer
Slide 17: Financial Performance
FINANCIAL PERFORMANCE Note: All equity, capital, ratios and per share data reflect deduction of €226m dividend accrual for H1 '25. Share buyback of €175m deducted from common equity, capital and ratios from 1 Jan 2025. July 23, 2025 17
Slide 18: Retail & SME
RETAIL & SME RETAIL & SME OVERVIEW RETAIL & SME PRODUCTS Retail & SME assets, in € billion DEVELOPMENTS SME NPL ratio 1.7% 1.2% 1.0% 1.1% • Credit box tightened since 2022 to account for cost inflation Leasing & Factoring and rates impact on customer ability to pay Overdrafts & Cards • Ensure stress
Slide 19: Commercial Real Estate Lending
COMMERCIAL REAL ESTATE LENDING Total portfolio PORTFOLIO DEVELOPMENT UNDERWRITING PRINCIPLES € billion • Residential and Industrial / Logistics make up 77% of • Focus on risk-adjusted returns across all cycles, patient the total portfolio and 90% of US portfolio … key lending within risk appetite …
Slide 20: Details on Reserves
DETAILS ON RESERVES IFRS 9 MIGRATION – CUSTOMER SEGMENT ASSETS NON-PERFORMING (STAGE 3) LOANS | in € millions Stage 3 Stage 2 Stage 1 Customer NPLs NPL Ratio 1.0% 0.8% 0.7% 0.7% NPL Cash Coverage Ratio 45% 47% 48% 54% ECLs (STAGE 1&2), SPECIFIC RESERVES (STAGE 3 incl. prudential filter) | in € milli
Slide 21: Corporates, Real Estate & Public Sector
Corporates, Real Estate & Public Sector CORPORATES1) REAL ESTATE PUBLIC SECTOR1) By industry By underlying By funding & type €2.7b €4.9b €5.8b By geography By geography By geography €5.8b €2.7b €4.9b • Portfolio average net leverage <4.0x • Weighted average portfolio LTV ~50% • 100% senior lending •
Slide 22: Funding Overview
FUNDING OVERVIEW Customer funding (eop) … ~94% total funding € billion DEPOSITS • Retail & SME deposits €43.7b, thereof ~80% insured by deposit guarantee scheme …. average deposit size of ~€17k • Corporates & Public Sector average deposits €5.0b … largest share in public sector, which are predominan
Slide 23: Regulatory Capital
REGULATORY CAPITAL € billion Dividend CET1 capital (post dividend) CET1 ratio (post dividend) Capital distribution plans: • €432m dividend for 2024 paid out on April 11, 2025 • €226m dividend accrual for H1 '25 based on dividend policy Capital ratios: • Approved share buyback of €175m fully deducted
Slide 24: Definitions
DEFINITIONS Book value per share Net interest margin (NIM) Common equity (excluding AT1 capital, dividends and buyback)/number of shares outstanding Net interest income (NII)/average interest-bearing assets Common equity NPL cash coverage Equity attributable to the owners of the parent; excluding mi
Slide 25: Important Disclaimer
IMPORTANT DISCLAIMER: This presentation is prepared solely for the purpose of providing general information about BAWAG Group, Wiedner Gürtel 11, 1100 Wien. The information does not constitute investment or other advice or any solicitation to participate in investment business. This presentation doe