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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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.