Bawag Group Ag Ord (BWAGF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

and thank you for standing by. Welcome to the BABAG Group Second Quarter 2025 Results Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1, 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1, 1 again. Please be advised that today's conference is being recorded. There will also be a transcript published to the website. I would now like to hand the conference over to your speaker today, Anas Abazoukou, Chief Executive Officer. Please go ahead. Thank you, operator. I hope everyone is doing well this morning. I'm joined by Enver, our CFO. Let us start with a summary of the second quarter results on slide three. We delivered net profit of 210 million euros, earnings per share of 2.65 euros, and a return on tangible common equity of 28% during the quarter. The performance of our business was strong with operating income of 552 million euros, up 41% versus the prior year, pre-provision profits of 345 million, and a cost-income ratio of 37%. Total risk costs were $52 million, translating into a risk-cost ratio of 37 basis points as we continue to see solid credit performance across our businesses. In terms of our balance sheet and capital, average customer loans were up 3%, and average customer deposits were up 1% quarter over quarter. We have a Fortress balance sheet with $15 billion in cash, an LCR of 237%. an overall strong asset quality with a low NPL ratio of 68 basis points. We recently received regulatory approval for a share buyback of 175 million euros in line with our capital distribution target of over 13% through 2025, la...