BAWAG Group AG
by BAWAG Group Investor Relations
Business news for the stock market Vienna (pta/19.10.2026/07:00) - - Strong Q3 '26 results: Net profit of €248 million, supported by continued revenue growth as well as ongoing delivery on synergy and efficiency gains - Highly profitable business model: Q3 '26 RoTCE of 26.9% well above BAWAG Group's >20% through-the-cycle target - Excess capital: CET1 ratio of 17.1% post Q3 '26 dividend accrual (€3.21 per share) of 100% net profit with excess capital of €1.0+ billion above 12.5% CET1 target - Planned PTSB acquisition: PTSB shareholders approved transaction with 91% support on July 30, 2026 … the transaction remains subject to court and regulatory approvals with potential closing expected in Q4 '26 / Q1'27 Today, BAWAG Group released its results for the third quarter of 2026, reporting net profit of €248 million, a return on tangible common equity (RoTCE) of 26.9%, and a cost-income ratio of 29.8%. For the first nine months of 2026, net profit amounted to €735 million, resulting in a RoTCE of 28.0%. FINANCIAL PERFORMANCE IN THE THIRD QUARTER OF 2026 BAWAG Group reported net profit of €248 million for the third quarter, with earnings per share of €3.18. Pre-provision profit increased by 3% quarter-on-quarter to €425 million. RoTCE of 26.9% remained well above BAWAG's through-the-cycle target of >20%, supported by disciplined capital allocation and the continued realization of synergies and efficiency gains across the Group. Net interest income amounted to €497 million in the third quarter of 2026, an increase of 2% compared with the second quarter of 2026. This reflected continued positive momentum in Consumer & SME, partially offset by subdued mortgage volumes. Net fee and commission income remained stable at €102 million, supported by solid momentum across the Retail & SME business lines. Operating expenses decreased by 10% year-over-year and by 2% quarter-on-quarter to €181 million, driven by the continued realization of synergies and efficiency gains across the Group. The cost-income ratio improved to 29.8%, in line with the through-the-cycle target of below 33%. Risk costs amounted to €79 million in the third quarter of 2026. This development reflected the continued shift in the asset mix toward higher-margin Consumer & SME lending. Asset quality remained strong, with a non-performing loan (NPL) ratio of 1.0%. "We delivered another strong quarter, with net profit of €248 million, earnings per share of €3.18, and a return on tangible common equity of 27%. Core revenues increased by 8% year-over-year to €599 million, pre-provision profit reached €425 million, and the cost-income ratio improved to below 30%, reflecting the continued benefits of our investments, disciplined execution, and ongoing synergy and efficiency gains. Alongside this strong operating performance, our team continues to execute on multiple strategic and operational initiatives as we prepare for the planned acquisition of PTSB and the next stage of our development as a pan-European and U.S. banking group. What makes BAWAG Group special is our people. Their unwavering focus on our customers, strong work ethic, and relentless pursuit of excellence defines our culture and drives our success." Anas Abuzaakouk · CEO, BAWAG Group PLANNED PTSB ACQUISITION On July 30, 2026, PTSB shareholders approved the planned acquisition with 91% support. Completion of the transaction remains subject to High Court sanction and the remaining regulatory approval. Supported by strong capital generation and a CET1 ratio of 17.1% at quarter-end, we are well positioned to fully self-fund the planned acquisition. The capital threshold required to fully self-fund the transaction is approximately 17.0%. In addition, we resumed dividend accruals in the third quarter of 2026 based on 100% of the quarter's net profit. The maximum potential dividend is limited to second-half earnings of approximately €500 million. We continue to generate capital at a strong pace and have multiple capital-management levers available should additional growth opportunities arise. OUTLOOK & TARGETS BAWAG Group continues to execute its established strategy and therefore reconfirms its 2026 net profit target of >€960 million. The Group's mid-term targets will be updated with the year-end results. EARNINGS CALL An earnings call will be held by our CEO Anas Abuzaakouk and CFO Enver Sirucic on October 19, 2026 at 10:00 am CEST. The details are available on our website www.bawaggroup.com. FINANCIAL OVERVIEW & KEY RATIOS P&L | € millions Q3 '26 Change vs prior year (in %) Change vs prior quarter (in %) YTD '26 Change vs prior year (in %) Core revenues 599.1 8 2 1,767.7 8 Net interest income 497.2 8 2 1,465.6 7 Net commission income 101.9 8 — 302.1 11 Other revenues 5.9 >100 (23) 13.7 >100 Operating income 605.0 9 1 1,781.4 9 Operating expenses (180.5) (10) (2) (553.3) (8) Pre-provision profit 424.5 20 3 1,228.1 19 Regulatory charges (11.0) 13 (2) (35.9) 21 Risk costs (78.8) 50 5 (219.4) 34 Net result of at-equity investments 0.5 (62) (92) 7.7 >100 Profit before tax 335.2 14 1 980.5 16 Income taxes (87.7) 17 14 (245.9) 14 Net profit 247.5 13 (3) 734.8 17 Q3 '26 Change vs prior year (in %) Change vs prior quarter (in %) YTD '26 Change vs prior year (in %) RoTCE 26.9% (0.9)pts (1.8)pts 28.0% 1.1pts CIR 29.8% (6.3)pts (1.2)pts 31.1% (5.8)pts BALANCE SHEET, CAPITAL & RWA Balance sheet | € millions Q3 '26 Q2 '26 Change vs prior quarter (in %) Change vs prior year (in %) Total assets 70,972 72,218 (2) (1) thereof Ø interest-bearing assets 56,330 56,303 — — Customer loans 51,274 51,074 — 3 Securities and bonds 4,460 4,345 3 (24) Credit institutions and cash 13,807 15,082 (8) (1) Other assets 1,431 1,717 (17) (22) Total liabilities & equity 70,972 72,218 (2) (1) thereof Ø customer funding 61,579 62,060 (1) (2) Ø customer deposits 46,117 46,761 (1) (3) Customer deposits 44,163 45,815 (4) (3) Own issues + AT1 19,766 19,566 1 5 Credit institutions and other liabilities 2,582 2,617 (1) (9) Common Equity including dividends 4,461 4,220 6 9 Capital & RWA | € millions Q3 '26 Q2 '26 Change vs prior quarter (in %) Change vs prior year (in %) Tangible common equity 3,677 3,686 — 15 CET1 capital 3,734 3,723 — 15 Risk-weighted assets 21,802 21,358 2 (5) CET1 ratio (post dividend) 17.1% 17.4% (0.3)pts 3.0pts Leverage ratio 5.8% 5.7% 0.1pts 0.8pts Liquidity coverage ratio 197% 217% (20)pts (4)pts RETAIL & SME P&L | € millions Q3 '26 Change vs prior year (in %) Change vs prior quarter (in %) YTD '26 Change vs prior year (in %) Core revenues 529.6 10 3 1,544.6 12 Net interest income 432.0 10 3 1,258.9 12 Net commission income 97.6 12 1 285.7 13 Operating expenses (151.0) (11) — (461.3) (11) Pre-provision profit 378.6 22 4 1,083.3 25 Regulatory charges (6.6) 29 2 (21.8) 42 Risk costs (75.4) 35 — (216.2) 38 Profit before tax 296.6 19 5 845.3 22 Net profit 218.1 16 2 630.5 21 Ratios RoTCE 35.8% (0.7)pts (0.7)pts 36.3% 1.3pts Net interest margin 4.35% 0.26pts 0.06pts 4.30% 0.30pts NPL ratio 1.6% 0.4pts 0.2pts 1.6% 0.4pts Risk cost ratio 0.77% 0.19pts — 0.74% 0.18pts Balance sheet | € millions Housing loans 26,296 (1) — 26,296 (1) Consumer and SME 13,254 11 3 13,254 11 Total assets 39,550 3 1 39,550 3 Total assets (Ø) 39,408 3 1 39,116 4 Customer deposits 41,942 (2) (3) 41,942 (2) Customer deposits (Ø) 42,385 (1) (2) 42,897 1 CORPORATES, REAL ESTATE & PUBLIC SECTOR P&L | € millions Q3 '26 Change vs prior year (in %) Change vs prior quarter (in %) YTD '26 Change vs prior year (in %) Core revenues 74.6 6 1 225.3 5 Net interest income 69.3 9 1 207.4 7 Net commission income 5.3 (24) (5) 17.9 (17) Operating expenses (21.7) 23 12 (58.8) 12 Pre-provision profit 52.9 — (3) 166.5 2 Regulatory charges (2.1) (9) (5) (6.7) (3) Risk costs (3.6) — — (3.4) (55) Profit before tax 47.2 (8) (10) 156.4 5 Net profit 34.6 (10) (14) 116.6 4 Ratios RoTCE 23.2% (7.8)pts (4.6)pts 27.5% (0.9)pts Net interest margin 2.01% 0.12pts 0.05pts 1.99% 0.10pts NPL ratio 0.3% 0.2pts (0.1)pts 0.3% 0.2pts Risk cost ratio 0.11% 0.13pts 0.12pts 0.03% (0.04)pts Balance sheet | € millions Corporates 2,303 (16) (10) 2,303 (16) Real Estate 5,452 8 (3) 5,452 8 Public Sector 5,389 (2) (3) 5,389 (2) Total assets 13,428 — (3) 13,428 — Total assets (Ø) 13,681 2 (2) 13,946 2 Customer deposits 2,626 (26) (8) 2,626 (26) Customer deposits (Ø) 3,180 (29) (2) 3,412 (33) ABOUT BAWAG GROUP BAWAG Group (BG) is a pan-European and U.S. banking group serving more than four million customers. The Group is committed to delivering simple and intuitive banking solutions, combining its digital-first approach with an advisory-focused branch network. BAWAG is dedicated to creating long-term, sustainable value for all stakeholders by driving operational excellence, fostering customer-focused innovation, and upholding the principles of responsible banking. Through the consistent and disciplined execution of its strategy, BAWAG Group is one of Europe's financially most successful and efficient banking group today. BAWAG Group's Investor Relations website bawaggroup.com/ir ( https://www.bawaggroup.com/en/investor-relations/financial-results) contains further information, including financial and other information for investors. CONTACT Jutta Wimmer Head of Communications +43 (0) 5 99 05-22474 investor.relations@bawaggroup.com FORWARD-LOOKING STATEMENT This release contains "forward-looking statements" regarding the financial condition, results of operations, business plans and future performance of BAWAG Group. Words such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "plans," "projects," "may," "will," "should," "would," "could" and other similar expressions are intended to identify these forward-looking statements. These forward-looking statements reflect management's expectations as of the date hereof and are subject to risks and uncertainties that may cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, economic conditions, the regulatory environment, loan concentrations, vendors, employees, technology, competition, and interest rates. Readers are cautioned not to place undue reliance on the forward-looking statements as actual results may differ materially from the results predicted. Neither BAWAG Group nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this report or its content or otherwise arising in connection with this document. This report does not constitute an offer or invitation to purchase or subscribe for any securities and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This statement is included for the express purpose of invoking "safe harbor provisions". Responsibility statements required by the Irish Takeover Rules The directors of the management boards of each of BAWAG and BAWAG PSK (the "BAWAG Directors") accept responsibility for the information contained in this Announcement. To the best of the knowledge and belief of the BAWAG Directors (who have taken all reasonable care to ensure that this is the case), the information contained in this Announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information. Dealing Disclosure Requirements under the Irish Takeover Rules Under Rule 8.3(b) of the Irish Takeover Rules, any person who is, or becomes, "interested" in 1% or more of any class of "relevant securities" of PTSB must make a "dealing" disclosure if the person deals in such "relevant securities" during the "offer period". A "dealing disclosure" by a person to whom Rule 8.3(b) applies must be made by no later than 3.30pm (Irish time) on the "business day" following the date of the relevant "dealing". A dealing disclosure must contain the details specified in Rule 8.6(b) of the Irish Takeover Rules, including details of the dealing concerned and of the person's interests and short positions in any "relevant securities" of PTSB. In addition, BAWAG and any other bidder must disclose details of any "dealings" by it or any person "acting in concert" with it in "relevant securities" of PTSB by no later than 12pm (Irish time) on the "business day" following the date of the transaction. If two or more persons co-operate on the basis of any agreement, either express or tacit, either oral or written, to acquire an "interest" in "relevant securities" of PTSB, they will be deemed to be a single person for the purpose of Rule 8.3(a) and (b) of the Irish Takeover Rules. A disclosure table, giving details of the companies in whose "relevant securities" "opening position disclosures" and "dealing" disclosures should be made, can be found on the Irish Takeover Panel's website at www.irishtakeoverpanel.ie. "Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an "interest" by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Irish Takeover Rules, which can be found on the Irish Takeover Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, please consult the Irish Takeover Panel's website at www.irishtakeoverpanel.ie or contact the Irish Takeover Panel on telephone number +353 1 678 9020. No profit forecast or estimate. No profit forecast or estimate No statement in this Announcement is intended as a profit forecast or estimate for any period and no statement in this Announcement should be interpreted to mean that earnings or earnings per share, for BAWAG or PTSB, respectively for the current or future financial years would necessarily match or exceed any historical published earnings or earnings per share for BAWAG or PTSB respectively. No statement in this Announcement constitutes an estimate of the anticipated financial effects of the acquisition. Publication on website Pursuant to Rule 26.1 of the Irish Takeover Rules, this Announcement will be made available on BAWAG's website ( https://www.bawaggroup.com/en/investor-relations/ptsb-formal-sale-process) by no later than 12:00 noon (Irish time) on the Business Day following the date of this Announcement. Neither the content of any such website, nor the content of any other website accessible from hyperlinks on such website, is incorporated into, or forms part of, this Announcement. Rounding Certain figures included in this Announcement have been subjected to rounding adjustments. Accordingly, figures shown for the same category presented in different tables or forms may vary slightly and figures shown as totals in certain tables or forms may not be an arithmetic aggregation of the figures that precede them. (end) emitter: BAWAG Group AG address: Wiedner Gürtel 11, 1100 Wien country: Austria contact person: BAWAG Group Investor Relations phone: +43 (0)59905-34444 e-mail: investor.relations@bawaggroup.com website: www.bawaggroup.com ISIN(s): AT0000BAWAG2 (share) stock exchanges: official trade in Vienna other stock exchanges: Lang & Schwarz Exchange pressetext Nachrichtenagentur GmbH Ad-hoc and financial news distributed by pressetext.adhoc. 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