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]

Core Viewpoint - Moody's has affirmed the ratings of BAWAG P.S.K. and changed the outlook on long-term deposit, senior unsecured, and long-term issuer ratings from stable to positive, reflecting the impact of recent acquisitions and improved business performance [1][2]. Group 1: Company Strategy and Performance - The positive outlook indicates the effectiveness of BAWAG Group's strategy focused on sustainable growth, efficiency, and maintaining a secure balance sheet, which has remained unchanged since 2012 [2]. - Recent acquisitions have enhanced the company's business profile, particularly in the DACH/NL region and Retail & SME sectors, contributing to increased profitability [2]. Group 2: Company Overview - BAWAG Group AG is a publicly listed holding company based in Vienna, Austria, serving over 4 million customers across various regions including Austria, Germany, Switzerland, Netherlands, Ireland, the United Kingdom, and the United States [3]. - The company operates under multiple brands and offers a wide range of financial products and services, including savings, payment, lending, leasing, investment, and insurance [3].

Core Insights - BAWAG Group reported a net profit of €201 million for Q1 2025, with earnings per share of €2.54 and a return on tangible common equity (RoTCE) of 25.8% [1][4] - The results reflect the integration of Barclays Consumer Bank Europe, contributing to a full quarter of Knab and two months of Barclays Consumer Bank Europe [1] - The CET1 ratio stood at 13.8%, factoring in a €111 million dividend accrual for Q1 2025 and the acquisition costs [2] Financial Performance - Core revenues increased to €534.8 million, a 36% rise compared to Q1 2024 and a 19% increase from Q4 2024 [5] - Net interest income reached €445.8 million, up 41% year-over-year and 21% quarter-over-quarter [5] - Operating expenses rose to €197.6 million, reflecting a 57% increase compared to Q1 2024 [5] - The net profit of €201 million represents a 20% increase from €166.9 million in Q1 2024 [5] Asset Quality and Ratios - The non-performing loan (NPL) ratio was reported at 0.7%, indicating strong asset quality [2] - The cost-income ratio (CIR) was 37%, up from 32.9% in the previous year [5] - The liquidity coverage ratio (LCR) was at 213%, a slight decrease from 217% year-over-year [5] Strategic Outlook - BAWAG Group reaffirmed its outlook for the financial year 2025 and mid-term targets as presented on March 4, 2025 [3] - CEO Anas Abuzaakouk emphasized the company's solid foundation and strong balance sheet amidst market volatility [4]