BAWAG Group publishes Q2 2025 results: Net profit € 210 million and RoTCE 27.6%, full year outlook reconfirmed

Core Insights - BAWAG Group reported a strong financial performance for Q2 2025, with a net profit of €210 million and earnings per share (EPS) of €2.65, reflecting a return on tangible common equity (RoTCE) of 27.6% [1][4] - The first half of 2025 showed a net profit of €411 million and EPS of €5.19, maintaining a RoTCE of 26.7% [1][6] - The CET1 ratio stood at 13.5% after accounting for a share buyback of €175 million and a dividend accrual of €226 million [2][4] Financial Performance - Core revenues for Q2 2025 reached €547.9 million, a 40% increase year-over-year, while H1 2025 core revenues totaled €1,082.7 million, up 38% [6] - Net interest income for Q2 2025 was €457.6 million, a 45% increase, and for H1 2025 it was €903.4 million, up 43% [6] - Operating income for Q2 2025 was €551.9 million, a 41% increase, and for H1 2025 it was €1,085.7 million, up 40% [6] Cost and Efficiency Metrics - Operating expenses for Q2 2025 were €206.7 million, a 62% increase, while H1 2025 operating expenses totaled €404.3 million, up 59% [6] - The cost-income ratio (CIR) improved to 37.5% in Q2 2025, a 4.9 percentage point increase, and was 37.2% for H1 2025, up 4.4 percentage points [6] Risk and Asset Quality - The non-performing loan (NPL) ratio remained low at 0.7% at the end of Q2 2025, indicating strong asset quality [2] - Risk costs for Q2 2025 were €52.0 million, an 86% increase, and for H1 2025 they were €111.2 million, up 92% [6] Market Environment and Outlook - The average 3-month Euribor decreased by 50 basis points in Q2 2025 compared to the previous quarter, reflecting a favorable interest rate environment [3] - The company reaffirmed its outlook across profit and loss lines as well as its full-year and mid-term targets [3]