Bawag Group Ag · VIE:BG
Bawag — Bawag Group Ag Ord — Q1 2025 Earnings Presentation
25 slides from Bawag's earnings presentation, Apr 29, 2025
Slide 1: BAWAG Group Q1 2025 Results
BAWAG Group Q1 2025 Results April 29, 2025
Slide 2: Agenda
AGENDA 1 Q1 2025 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION April 29, 2025 BAWAG Group 2
Slide 3: Highlights Q1 2025
HIGHLIGHTS Q1 2025 EARNINGS BALANCE SHEET & CAPITAL OUTLOOK Q1 '25: Average customer loans up 15% vPQ and average interest- 2025 financial target reconfirmed: Net profit €201m, RoTCE of 25.8% and EPS of €2.54 … bearing assets up 13% vPQ Net profit of >€800m including full quarter of Knab and two mon
Slide 4: Capital Development
CAPITAL DEVELOPMENT 108 basis points gross capital generation through earnings in Q1 '25 CAPITAL DEVELOPMENT Excess capital €189m CAPITAL DEVELOPMENT a. Gross capital generation 108bps in Q1 '25 through earnings b. Basel IV impact, Retail & SME return to Standardized Approach, and completion of mort
Slide 5: Retail & SME
RETAIL & SME FINANCIAL PERFORMANCE CUSTOMER DEVELOPMENT € millions Q1 '25 Q1 '24 vPY Q4 '24 vPQ € millions Q1 '25 Q1 '24 vPY Q4 '24 vPQ Core revenues 432.5 296.6 46% 353.7 22% Housing loans 26,581 15,164 75% 26,733 (1%) Net interest income 350.9 228.4 54% 279.5 26% Consumer and SME 11,039 6,722 64%
Slide 6: Corporates, Real Estate & Public Sector
CORPORATES, REAL ESTATE & PUBLIC SECTOR FINANCIAL PERFORMANCE CUSTOMER DEVELOPMENT € millions Q1 '25 Q1 '24 vPY Q4 '24 vPQ € millions Q1 '25 Q1 '24 vPY Q4 '24 vPQ Core revenues 74.6 78.8 (5%) 80.8 (8%) Corporates 2,678 3,441 (22%) 2,806 (5%) Net interest income 67.2 70.7 (5%) 73.1 (8%) Real Estate 5
Slide 7: 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 … finalize mid-2025 ✓ Exited first set of services … expect full insourcing TRANSITIONAL SERVICE AGREEMENT ✓ Treasury positions integrated in
Slide 8: 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 81% secured and public sector assets 73 15 Customer assets 52 ~75% NPL ratio of 70 bps reflecting strong
Slide 9: Agenda
AGENDA 1 Q1 2025 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION April 29, 2025 BAWAG Group 9
Slide 10: P&L & Key Ratios
P&L & KEY RATIOS P&L | € millions Q1 '25 Q1 '24 vPY Q4 '24 vPQ Key ratios Q1 '25 Q1 '24 vPY Q4 '24 vPQ Net interest income 445.8 317.1 41% 368.4 21% RoCE 22.1% 20.0% 2.1pts 26.9% (4.8)pts Net commission income 89.0 75.7 18% 81.2 10% RoTCE 25.8% 23.7% 2.1pts 31.6% (5.8)pts Core revenues 534.8 392.8 3
Slide 11: Balance Sheet
BALANCE SHEET Balance sheet | € millions Q1 '25 Q4 '24 vPQ vPY Capital & RWA | € millions Q1 '25 Q4 '24 vPQ vPY Total assets 73,053 71,341 2% 35% Common equity 3,691 3,593 3% 9% thereof Ø interest-bearing assets 54,668 48,366 13% 31% Tangible common equity 3,160 3,061 3% 11% Customer loans 49,395 45
Slide 12: Funding Overview
FUNDING OVERVIEW Customer funding (eop) … ~94% total funding € billion DEPOSITS • Retail & SME deposits €43.5b, thereof ~80% insured by deposit guarantee scheme …. average deposit size of ~€17k • Corporates & Public Sector average deposits €5.8b … largest share in public sector, which are predominan
Slide 13: Core Revenues
CORE REVENUES € millions Net interest margin Net commission income Net interest income (NII) up 21% vPQ … net interest margin (NIM) at 3.31% in Q1 '25 Net interest income • Barclays Consumer Bank Europe with two months contribution and full quarter for Knab • Deposit beta at ~44% … +3pts vPQ Net com
Slide 14: Operating Expenses
OPERATING EXPENSES € millions Operating expenses (excluding regulatory charges) CIR CIR at 37.0% in Q1 '25 up 1.3pts vPQ • First time impact from integration of Barclays Consumer Bank Europe and full quarter of Knab • Continuously focused on absolute cost targets and proactive cost management • Targ
Slide 15: Risk Costs
RISK COSTS € millions Risk costs Risk costs/average interest-bearing assets Q1 '25 risk costs €(59)m • Ongoing strong credit performance … NPL ratio of 0.7% • Risk costs of €(59)m or 43bps risk cost ratio … includes two months of unsecured credit card portfolio risk costs Maintain safe & secure bala
Slide 16: 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 >€10.00 Operating expenses FY ’24: €9.60 ~€(800)m FY ’24: €(545)m 13.0% Capital Distribution
Slide 17: Agenda
AGENDA 1 Q1 2025 HIGHLIGHTS & CAPITAL DEVELOPMENT 2 DETAILED FINANCIALS & OUTLOOK 3 SUPPLEMENTAL INFORMATION April 29, 2025 BAWAG Group 17
Slide 18: Financial Performance
FINANCIAL PERFORMANCE P&L | € millions Q1 '25 Q1 '24 vPY Q4 '24 vPQ Balance Sheet & Capital | € millions Q1 '25 Q4 '24 vPQ vPY Core revenues 534.8 392.8 36% 449.6 19% Total assets 73,053 71,341 2% 35% Net interest income 445.8 317.1 41% 368.4 21% Cash 15,330 17,604 (13%) 36% Net commission income 89
Slide 19: Retail & SME
RETAIL & SME RETAIL & SME OVERVIEW RETAIL & SME PRODUCTS Retail & SME assets, in € billion DEVELOPMENTS SME NPL ratio 1.6% 1.7% 1.2% 1.0% • 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 20: Corporates, Real Estate & Public Sector
Corporates, Real Estate & Public Sector CORPORATES1) REAL ESTATE PUBLIC SECTOR1) By industry By underlying By funding & type €2.7b €5.5b €5.6b By geography By geography By geography €2.7b €5.6b €5.5b • Portfolio average net leverage <4.0x • Weighted average portfolio LTV ~50% • 100% senior lending •
Slide 21: Commercial Real Estate Lending
COMMERCIAL REAL ESTATE LENDING Total portfolio PORTFOLIO DEVELOPMENT UNDERWRITING PRINCIPLES € billion • Residential and Industrial / Logistics make up • Focus on risk-adjusted returns across all cycles, patient 72% of the total portfolio and 85% of US lending within risk appetite … no volume target
Slide 22: 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 0.9% 1.0% 0.8% 0.7% ECLs (STAGE 1&2), SPECIFIC RESERVES (STAGE 3 incl. prudential NPL Cash Coverage Ratio 52% 45% 47% 48% filter) | in € milli
Slide 23: Regulatory Capital
REGULATORY CAPITAL € billion Dividend CET1 capital (post dividend) CET1 ratio (post dividend) Capital distribution plans: • €432m dividend payment approved by AGM for FY'24 and paid out on April 11, 2025 • €111m dividend accrual for Q1 '25 based on dividend policy Capital ratios: • Tier1 capital rat
Slide 24: Definitions
DEFINITIONS B/S leverage Loan to Value (LTV) Total assets/common equity (excluding earmarked dividend) IFRS book value including prior liens excluding NPLs / Market value of real estate collaterals Book value per share allocated excluding NPLs Common equity (excluding AT1 capital, dividends)/number
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