BAWAG Group AG (BG.VI) on Tuesday reported higher first-quarter profit, supported by solid revenue growth and ongoing synergy gains.
Profit before tax rose 17% to €313.3 million from €268 million a year earlier.
Operating income increased to €579 million from €533.8 million last year.
Net profit climbed 16% to €232.3 million from €201.0 million, while earnings per share stood at €3.
Core revenues rose 8% to €578.9 million, supported by higher net interest income and commission income. Net interest income increased to €480.2 million from €445.8 million, while net commission income grew to €98.7 million from €89.0 million.
Operating expenses declined 5% to €187.9 million, contributing to a 16% rise in pre-provision profit to €391.1 million.
Additionally, the group said it had agreed to a recommended all-cash offer for Permanent TSB Group Holdings plc on April 14, 2026. The deal is expected to generate over €250 million in net profit by 2028 and deliver more than 20% EPS accretion, exceeding its return target of over 20% return on tangible common equity and offering greater value than share buybacks.
It plans to fully self-fund the acquisition through capital management measures. For 2026, this includes a temporary dividend adjustment, with no first-half distribution and payouts limited to second-half earnings of about €500 million.
The group also aims to boost capital through risk-weighted asset optimization, adding around 50 basis points in the first half of 2026, with further dividend adjustments or a potential capital raise as additional options.
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