Key Moments:
- BAWAG’s (BG:) pre-provision profits for Q1 amounted to €336 million, while the cost-income ratio in the first quarter hit 37%. Meanwhile, the company’s net profit reached €201 million.
- The bank reaffirmed its full-year 2025 guidance and mid-term goals outlined on March 4th, 2025.
- BAWAG’s stock enjoyed a surge to €96.15 on Tuesday.
Strong Start to 2025 With Solid Earnings
In the first quarter, BAWAG reported pre-provision operating profits of €336 million, demonstrating a resilient start to the year. The bank also delivered a cost-income ratio of 37%, reflecting continued cost efficiency and focus on operational execution.
Furthermore, the financial institution revealed a net profit of €201 million for the initial three months. This translated to earnings per share of €2.54 and an annualized return on tangible common equity (RoTCE) of a notable 25.8%.
Maintaining a strong financial foundation, BAWAG Group reported a Common Equity Tier 1 (CET1) ratio of 13.8% at the close of the first quarter. This key indicator of financial strength aligns with the pro-forma capital ratio reported at the end of the preceding year.
Shares Leap 3.44%
The excellent Q1 results bolstered investor enthusiasm, leading to a 3.44% appreciation of BAWAG’s stock price. This upward movement propelled the stock to a value of €96.15.
Financial Guidance Remains on Track
BAWAG Group confirmed its financial outlook for the full year 2025, along with its mid-term strategic targets, as originally shared during its investor day presentation in March 2025. CEO Anas Abuzaakouk expressed his satisfaction with the first quarter results. Acknowledging the recent market volatility stemming from evolving tariffs and the potential long-term impacts on global trade, Abuzaakouk emphasized the bank’s solid foundation, strong balance sheet, and experienced leadership team. He conveyed the company’s commitment to navigating these changing economic currents and serving as a reliable partner for its customers and the communities in which it operates.