Q3 2024 BAWAG Group AG Earnings Call Transcript
Key Points
- Bawag Group AG (BWAGF) reported a strong net profit of EUR178 million for Q3 2024, with an EPS of EUR2.25 and a return on tangible common equity of 24%.
- The company received ECB approval for the acquisition of Knab in the Netherlands, which is expected to positively impact future earnings.
- Bawag Group AG (BWAGF) maintained a low non-performing loan (NPL) ratio of 1%, indicating solid credit performance across its businesses.
- The CET1 ratio increased to 17.2%, up 70 basis points from the previous quarter, reflecting strong capital generation.
- The company has a robust balance sheet with EUR15.6 billion in cash, representing 28% of the balance sheet, and a liquidity coverage ratio (LCR) of 260%.
- Average customer loans decreased by 2% quarter over quarter, indicating a decline in lending activity.
- The Retail and SME business saw a 4% decline in net profit compared to the previous year, with operating expenses up by 12%.
- The corporate real estate and public sector business experienced a 6% drop in net profit versus the prior year.
- The company utilized EUR10 million of its management overlay to address an NPL in its US office exposure, highlighting ongoing challenges in this asset class.
- Bawag Group AG (BWAGF) anticipates some net interest income (NII) compression due to expected rate cuts, which could impact future earnings.
Good day. And thank you for standing by. Welcome to the BAWAG Group Q3 2024 results call. (Opearator Instructions). I would now like to hand the conference over to our first speaker today Anas Abuzaakouk CEO. Please go ahead.
Thank you operator. I hope everyone is doing well this morning. I'm joined by Enver our CFO. Before we jump into Q3 results, I'm happy to announce that we received ECB approval for the acquisition of Knab in the Netherlands last Friday.
We're excited about welcoming the team rolling out the integration plans and pursuing the many opportunities ahead of us as for third quarter results, let's start on slide three.
We delivered net profit of EUR178 million EPS of EUR2.25 and a return on tangible common equity of 24% during the third quarter, tangible book value per share was EUR38.48 up by 16% versus prior year and up 3% versus prior quarter.
The operating performance of our business was very strong with pre provision profits
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