BAWAG Group publishes Q1 2024 results: Net profit € 167 million and
RoTCE 23.7%
- Q1 ’24 net profit of € 167 million, EPS of € 2.11 and
RoTCE of 23.7%
- Average customer deposits +1% and average customer
loans flat versus prior quarter
- Pre-provision profit of € 258 million (+4% vPY) and CIR
at 32.9%
- Risk-cost ratio of 28 basis points … NPL ratio at
1.0%
- CET1 ratio of 15.6% post-deduction of dividend accrual
of € 92 million for Q1 ‘24
- Targets for 2024 reconfirmed: Profit before tax > €
920 million, RoTCE >20%, and CIR < 34%
Today, BAWAG Group released its results for the first quarter
2024, reporting a net profit of € 167 million, earnings per share
of € 2.11, and a RoTCE of 23.7%. The operating performance of our
business was strong with pre-provision profits of € 257.6 million
and a cost-income ratio of 32.9%.
Anas Abuzaakouk, CEO, commented: “In the first
quarter we delivered a strong set of results with net profit of €
167 million and an RoTCE of 24%. We generated a significant amount
of capital during the quarter, increasing our CET1 ratio by 90
basis points to 15.6% and continuing to build up our excess capital
of € 623 million, after deducting the first quarter dividend
accrual of € 92 million. We have earmarked our excess capital for
the acquisition of Knab bank, which we signed earlier this year, in
addition to other M&A at an advanced stage. These strategic
opportunities will be highly accretive to the Group in both
earnings as well as allowing us to grow our Retail & SME
franchise and overall footprint in the DACH/NL region. Today, I am
more excited about our future growth opportunities than I have ever
been.”
Delivering strong Q1 2024 results
in € million |
Q1 2024 |
Q1 2023 |
Change versus prior year (in
%) |
Core revenues |
392.8 |
366.3 |
7% |
Net interest income |
311.8 |
290.0 |
8% |
Net commission income |
81.0 |
76.2 |
6% |
Operating income |
383.8 |
366.9 |
5% |
Operating expenses |
(126.2) |
(119.4) |
6% |
Pre-provision profit |
257.6 |
247.5 |
4% |
Regulatory charges |
(5.2) |
(41.0) |
(87%) |
Risk costs |
(29.9) |
(20.6) |
45% |
Profit before tax |
222.8 |
186.4 |
20% |
Net profit |
166.9 |
139.6 |
20% |
|
|
|
|
RoTCE |
23.7% |
21.2% |
2.5pts |
CIR |
32.9% |
32.5% |
0.4pts |
Earnings per share (€) |
2.11 |
1.69 |
24.9% |
Liquidity Coverage Ratio (LCR) |
217% |
215% |
2pts |
Core revenues increased by 7% to € 392.8
million in Q1 2024 versus the prior year. Net interest
income increased by € 21.8 million, or 8%, to € 311.8
million. Net fee and commission income increased
by € 4.8 million, or 6%, to € 81.0 million.
Operating expenses increased by 6% to €126.2
million in Q1 2024 versus the prior year. The significant
inflationary pressure was partially offset by several operational
measures launched over the last two years.
The cost-income ratio slightly increased by 0.4
points to 32.9%. This resulted in a pre-provision profit of € 257.6
million, up 4% versus prior year.
Regulatory charges were € 5.2 million in Q1
2024, compared to € 41.0 million in the prior year.
Risk costs were € 29.9 million in Q1 2024, an
increase of € 9.3 million, or 45%, compared to the previous year.
The management overlay, which are provisions to address the
uncertain macroeconomic outlook and any potential headwinds, stands
at € 80 million. The NPL ratio was 1.0% at the end of March
2024.
Average customer loans were flat and
average interest-bearing assets were up 1% versus
the prior quarter. Average customer deposits and
average customer funding were both up 1% versus
the prior quarter.
At the end of March 2024, the CET1 ratio was at
15.6%. The CET1 ratio considers the deduction of € 92 million
dividend accrual for Q1 2024. The dividend for the financial year
2023 of € 5.0 per share, or € 393 million in total, was paid out on
April 15, 2024.
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.
Outlook and targets
Our outlook for 2024 is unchanged, and we confirm all our 2024
financial targets (which excludes M&A):
Profit before tax > € 920 million, RoTCE > 20%,
and CIR < 34%.
Earnings presentation
BAWAG Group will host the earnings call with our CEO Anas
Abuzaakouk and our CFO Enver Sirucic at 10 a.m. CEST on 29 April
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 whatso-ever (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”.
Contact:
Financial Community:Jutta Wimmer (Head of
Investor Relations)Tel: +43 (0) 5 99 05-22474IR 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 05-31210E-mail:
communications@bawaggroup.com
This text can also be downloaded from our website:
https://www.bawaggroup.com
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