Austria's BAWAG Group Q3 net profit rises, reconfirms 2026 forecast

Overview

• Austria banking group's Q3 net profit rose to €248 mln

• Q3 core revenue grew 8% yr/yr to €599 mln

• Company resumed dividend accruals in Q3 after capital build for planned PTSB acquisition

Outlook

• BAWAG Group reconfirms 2026 net profit target of over €960 mln

• Company says mid-term targets to be updated with year-end results

• Planned PTSB acquisition expected to close in Q4 26 or Q1 27, pending approvals

Result Drivers

• CONSUMER & SME LENDING - Net interest income rose on continued growth in Consumer & SME lending, partially offset by subdued mortgage volumes

• EFFICIENCY GAINS - Operating expenses fell due to ongoing synergy and efficiency gains across the group

• ASSET MIX SHIFT - Risk costs increased as the asset mix shifted toward higher-margin Consumer & SME lending

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for BAWAG Group AG is €190.50, about 13.2% above its October 16 closing price of €168.30

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 16 - Italian banks should be predators not prey in M&A wave, economy minister says

• Oct 16 - Italy's UniCredit wins ECB approval to control Germany's Commerzbank

• Oct 16 - US regional banks join bigger peers in signaling resilient economy as lending holds firm

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)