REG - BAWAG Group AG Permanent TSB Group - BAWAG Q1 2026 Results & Update

Permanent TSB groupAnnouncement

Tue 07:00

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RNS Number : 2342B  BAWAG Group AG  21 April 2026

Strong start into 2026: €232 million net profit, RoTCE 27.6%, and CIR 32.5%

 €232 million                     ·    Strong start to the year: Q1 '26 Net profit of €232 million,

                                supported by higher core revenues and ongoing synergy gains
 Net profit

 +16% versus prior year

                                  ·    Highly profitable business model: Q1 '26 RoTCE of 27.6% well above
                                  BAWAG's >20% through-the-cycle target

                                  ·    Excess capital: CET1 ratio of 15.0% … 15.4% including participation
                                  sale with excess capital of €650 million above 12.5% CET1 target

                                  ·    PTSB as strategic opportunity in Ireland: BAWAG agreed recommended
                                  all cash offer for PTSB shares on April 14, 2026
 27.6%

 RoTCE

 +1 point versus prior year
 32.5%

 CIR

 (4.5) points versus prior year

Vienna, April 21, 2026 - Today, BAWAG Group released its results for the first
quarter of 2026, with net profit of €232 million, a return on tangible
common equity (RoTCE) of 27.6%, and cost-income ratio of 32.5%.

FINANCIAL PERFORMANCE IN THE FIRST QUARTER 2026

BAWAG Group reported net profit of €232 million in the first quarter with
earnings per share of €3.00, and pre-provision profit increasing by 3%
quarter-over-quarter to €391 million.

RoTCE of 27.6% remained well above BAWAG's through‑the‑cycle target of
over 20%, underpinned by disciplined capital allocation and further synergy
gains, as the integration of Knab is largely complete and the integration of
easybank in Germany continues to progress.

Net interest income amounted to €480 million in the first quarter of 2026,
increasing by 8% compared to the first quarter of 2025, supported by
acquisitions and a changing asset mix. Net fee and commission income rose to
€99 million, up 11% year‑over‑year, reflecting continued organic
growth as well as contributions from acquisitions.

Operating expenses decreased by 5% year‑over‑year to €188 million,
driven by continued efficiency measures and synergy realization across the
expanded Group. Consequently, the cost‑income ratio improved to 32.5%,
versus 37.0% in the prior‑year quarter, in line with our
through‑the‑cycle target of below 33%.

Risk costs amounted to €65 million in the first quarter of 2026, compared
to €59 million in the prior‑year quarter. The prior‑year quarter
included only two months of the rebranded easybank business, following the
acquisition's closing on February 1, 2025. Asset quality remained strong,
with a non‑performing loan (NPL) ratio of 0.8%, unchanged
year‑over‑year.

 "

 We delivered a strong start to 2026. With net profit of €232 million,
 a RoTCE of 28%, and a cost-income ratio of 33%. The operating performance of
 our business was very strong with core revenues of €579 million, up 8%
 versus prior year, pre-provision profits of €391 million and a CIR of 33%,
 realizing the benefits from our prior our investments over the years as we
 build-out a pan-European and U.S. banking group.

 On the back of a record year in 2025 and having integrated both Knab and
 Barclays Consumer Bank Europe (which was rebranded to easybank earlier this
 year), we are thrilled to have been selected by PTSB to enter into this
 transaction. The trust and confidence placed in us by the PTSB Board and the
 Minister for Finance of Ireland, as the bank's majority shareholder, is
 something we take very seriously and are keen to demonstrate our capabilities
 and contributions.

 I'm incredibly proud of our team members and their commitment to our customers
 and the communities we serve. Your work ethic, passion, and commitment to
 excellence are what sets BAWAG Group apart and makes it so special!"

 - Anas Abuzaakouk · CEO, BAWAG Group

PTSB - STRATEGIC OPPORTUNITY IN IRELAND

Ireland represents an attractive market supported by strong macroeconomic
fundamentals. Building on the Group's presence since 2015 and the
establishment of its retail business with MoCo in 2023, BAWAG agreed to a
recommended all cash offer for PTSB shares on April 14, 2026. The proposed
acquisition would combine local expertise with BAWAG Group's balance sheet
strength and operational capabilities.

"The proposed acquisition of PTSB would be transformative as we continue to
build a pan-European and U.S. banking group. Upon completion, BAWAG Group
would exceed €100 billion in total assets, serve more than five million
customers across seven countries, and offer a comprehensive suite of retail,
SME, and corporate banking products. We are excited to welcome our new
colleagues from PTSB and to shape our shared future together, with our best
years ahead," Anas Abuzaakouk added.

The acquisition is subject to shareholder and regulatory approvals.

The transaction was underwritten to be in line with our through-the-cycle
Group return requirements of >20% RoTCE. The transaction is expected to
generate over €250 million net profit by 2028, generate over 20% EPS
accretion, and from a capital allocation perspective is more accretive than a
share buyback by over two times.

Given our strong capital position and capital generation, our aim is to fully
self-fund the deal through capital management measures: For 2026, BAWAG will
temporarily adjust its dividend policy, including a non‑distribution
commitment for first‑half profits, with the maximum potential dividend
limited to second‑half earnings of approximately €500 million. In
addition, the Group will implement RWA optimization measures, including credit
protection solutions, contributing around 50 basis points of capital in the
first half of 2026. Alternative options would be further dividend adjustments
and/or a potential capital raise.

OVERVIEW

 € million                Q1 '26   Q1 '25   Change vs prior year (in %)  Q4 '25   Change vs
                                                                                  prior quarter

(in %)
 Core revenues            578.9    534.8    8%                           570.4    1%
 Net interest income      480.2    445.8    8%                           473.1    2%
 Net commission income    98.7     89.0     11%                          97.3     1%
 Operating income         579.0    533.8    8%                           575.5    1%
 Operating expenses       (187.9)  (197.6)  (5%)                         (194.3)  (3%)
 Pre-provision profit     391.1    336.2    16%                          381.2    3%
 Regulatory charges       (13.7)   (9.6)    43%                          (9.2)    49%
 Risk costs               (65.2)   (59.2)   10%                          (63.9)   2%
 Profit before tax        313.3    268.0    17%                          311.7    1%
 Net profit               232.3    201.0    16%                          230.2    1%

KEY RATIOS

          Q1 '26  Q1 '25  Change vs    Q4 '25  Change vs. prior quarter

prior year
 RoTCE    27.6%   26.6%   +1.0 pts     28.3%   (0.7) pts
 CIR      32.5%   37.0%   (4.5) pts    33.8%   (1.3) pts

OUTLOOK & TARGETS

BAWAG Group continues to execute its established strategy and reconfirms
its target for 2026 net profit of > €960 million. The mid-term targets
will be updated at year-end, subject to shareholder and regulatory approvals,
of PTSB acquisition.

 

ABOUT BAWAG GROUP

BAWAG Group (BG) is a pan-European and U.S. banking group serving more than
four million customers. The Group is committed to delivering simple and
intuitive banking solutions, combining its digital-first approach with an
advisory-focused branch network. BAWAG is dedicated to creating long-term,
sustainable value for all stakeholders by driving operational excellence,
fostering customer-focused innovation, and upholding the principles of
responsible banking. Through the consistent and disciplined execution of its
strategy, BAWAG Group is one of Europe's financially most successful and
efficient banking groups today.

BAWAG Group's Investor Relations website bawaggroup.com/ir
(https://www.bawaggroup.com/en/investor-relations/financial-results) contains
further information, including financial and other information for investors.

CONTACTS - COMMUNICATION

 Jutta Wimmer                        Sascha Nottmeier

 Head of Communication               Media Germany / Western Europe

 +43 (0) 5 99 05-22474               communications@bawaggroup.com

 investor.relations@bawaggroup.com

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 whatsoever (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".

Responsibility statements required by the Irish Takeover Rules

The directors of the management boards of each of BAWAG and BAWAG PSK (the
"BAWAG Directors") accept responsibility for the information contained in this
Announcement. To the best of the knowledge and belief of the BAWAG Directors
(who have taken all reasonable care to ensure that this is the case), the
information contained in this Announcement for which they accept
responsibility is in accordance with the facts and does not omit anything
likely to affect the import of such information.

Dealing Disclosure Requirements under the Irish Takeover Rules

Under Rule 8.3(b) of the Irish Takeover Rules, any person who is, or becomes,
"interested" in 1% or more of any class of "relevant securities" of PTSB must
make a "dealing" disclosure if the person deals in such "relevant securities"
during the "offer period". A "dealing disclosure" by a person to whom Rule
8.3(b) applies must be made by no later than 3.30pm (Irish time) on the
"business day" following the date of the relevant "dealing". A dealing
disclosure must contain the details specified in Rule 8.6(b) of the Irish
Takeover Rules, including details of the dealing concerned and of the person's
interests and short positions in any "relevant securities" of PTSB.

In addition, BAWAG and any other bidder must disclose details of any
"dealings" by it or any person "acting in concert" with it in "relevant
securities" of PTSB by no later than 12pm (Irish time) on the "business day"
following the date of the transaction.

If two or more persons co-operate on the basis of any agreement, either
express or tacit, either oral or written, to acquire an "interest" in
"relevant securities" of PTSB, they will be deemed to be a single person for
the purpose of Rule 8.3(a) and (b) of the Irish Takeover Rules.

A disclosure table, giving details of the companies in whose "relevant
securities" "opening position disclosures" and "dealing" disclosures should be
made, can be found on the Irish Takeover Panel's website at
www.irishtakeoverpanel.ie.

"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option
in respect of, or derivative referenced to, securities.

Terms in quotation marks are defined in the Irish Takeover Rules, which can be
found on the Irish Takeover Panel's website.

If you are in any doubt as to whether or not you are required to disclose a
"dealing" under Rule 8, please consult the Irish Takeover Panel's website at
www.irishtakeoverpanel.ie or contact the Irish Takeover Panel on telephone
number +353 1 678 9020.

No profit forecast or estimate

No statement in this Announcement is intended as a profit forecast or estimate
for any period and no statement in this Announcement should be interpreted to
mean that earnings or earnings per share, for BAWAG or PTSB, respectively for
the current or future financial years would necessarily match or exceed any
historical published earnings or earnings per share for BAWAG or PTSB
respectively. No statement in this Announcement constitutes an estimate of the
anticipated financial effects of the acquisition.

Publication on website

Pursuant to Rule 26.1 of the Irish Takeover Rules, this Announcement will be
made available on BAWAG's website

(https://www.bawaggroup.com/en/investor-relations/ptsb-formal-sale-process) by
no later than 12:00 noon (Irish time) on the Business Day following the date
of this Announcement.

 

Neither the content of any such website, nor the content of any other website
accessible from hyperlinks on such website, is incorporated into, or forms
part of, this Announcement.

 

Rounding

Certain figures included in this Announcement have been subjected to rounding
adjustments. Accordingly, figures shown for the same category presented in
different tables or forms may vary slightly and figures shown as totals in
certain tables or forms may not be an arithmetic aggregation of the figures
that precede them.

 

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