BAWAG Group (BG) Q2 2026 earnings summary

Executive summary

• Net profit for Q2 2026 reached €255 million, up 21% year-over-year, with EPS of €3.28 and return on tangible common equity (ROTCE) of 28.7%; first half 2026 net profit totaled €487.3 million.

• Core revenues for Q2 2026 were €590 million, up 8% year-over-year, and pre-provision profit was €413 million (+19% YoY).

• Cost-income ratio improved to 31%, reflecting ongoing efficiency measures.

• Strong capital position with CET1 ratio at 17.4%, supporting the planned acquisition of PTSB.

• The group is preparing for the acquisition of PTSB, with the shareholder vote scheduled for end of July and expected closing in Q4 2026 or Q1 2027.

Financial highlights

• Net interest income for Q2 2026 was €488.2 million (+7% YoY), and net commission income was €101.5 million (+12% YoY).

• Operating expenses decreased 11% year-over-year to €184.9 million, reflecting efficiency gains.

• Pre-provision profit grew 19% year-over-year to €412.5 million.

• Risk costs for the quarter were €75.4 million, up 45% year-over-year, mainly due to growth in unsecured lending and asset mix.

• Return on tangible common equity reached 28.7% for Q2 2026; cost-income ratio at 31%.

Outlook and guidance

• 2026 targets reconfirmed: net profit over €960 million, ROTCE over 20%, cost-income ratio under 33%, CET1 ratio at 12.5%.

• Net interest income and core revenues expected to grow over 6% in 2026, with operational expenses targeted to be over 5% below 2025 levels.

• Full-year risk cost ratio now expected around 50 basis points, reflecting asset mix shift.

• Mid-term targets to be updated with year-end results, assuming successful PTSB closing.

• Dividend policy temporarily adjusted; maximum 2026 dividend limited to H2 earnings pending PTSB acquisition.