BAWAG Q2 net profit rises on higher interest income, expects PTSB acquisition to close by Q4

BAWAG AG

21/07/2026 06:30

    

    Overview
  
Austria banking group's Q2 net profit rose 21% yr/yr to €255 mln
Core revenues for Q2 increased 8% yr/yr; operating expenses fell 11% yr/yr
Company further strengthened capital ahead of planned PTSB acquisition in Ireland

    

    Outlook
  
BAWAG Group reconfirms 2026 net profit target of more than €960 mln
Company expects closing of PTSB acquisition in Q4 2026 or Q1 2027, subject to approvals
Mid-term targets will be updated with year-end results

    

    Result Drivers
  
REVENUE GROWTH - Core revenues rose 8% yr/yr, supported by higher net interest income and fee income, especially from unsecured consumer lending and retail/SME business lines
EFFICIENCY GAINS - Operating expenses fell 11% yr/yr due to ongoing synergy and efficiency measures across the group
RISK COSTS - Risk costs increased, reflecting growth in unsecured lending and updated macroeconomic assumptions

    
Company press release: ID:nPex0Wjzfa

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
H1 Core Revenue
 
EUR 1.17 bln
 
H1 Net Profit
 
EUR 487.30 mln
 
H1 Net Interest Income
 
EUR 968.40 mln
 
H1 Net Fee Income
 
EUR 200.20 mln
 
H1 Operating Income
 
EUR 1.18 bln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for BAWAG Group AG is €180.55, about 3.5% above its July 16 closing price of €174.40
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

    

    Reuters Recommended Reads
  
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July 20 - Wintrust Q2 net interest income rises on growth in average earning assets
July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)