Bawag stock falls after revenue miss despite cost beat

Published 23/07/2025, 10:02
Bawag stock falls after revenue miss despite cost beat

Investing.com -- Bawag (VIE:BAWG) stock fell 2.5% after the Austrian bank reported a 1% revenue miss in its latest quarterly results, offset by a 1% cost beat.

The Vienna-based lender reported profit before tax of €283 million, in line with company consensus. Total (EPA:TTEF) revenues came in 1% below expectations, with both net interest income and net fee and commission income missing by 1%. However, this was balanced by 1% lower operating expenses. Risk costs were also in line with consensus at 37 basis points.

The bank’s loan portfolio remained flat quarter-over-quarter while rising 3% in terms of average balances. Retail loans increased 1% quarter-over-quarter, with consumer and SME loans growing 3% while housing loans remained flat. Meanwhile, corporate, real estate, and public sector assets declined 4% quarter-over-quarter, with notable decreases in corporate loans (-2%) and real estate (-11%), while public sector loans grew 2%.

Bawag’s US office portfolio saw a significant reduction, declining 54% quarter-over-quarter to €143 million. The company’s CET1 ratio came in at 13.5%, slightly above consensus by 10 basis points.

The bank announced a €175 million share buyback at the end of last week, which launched today. Bawag has also reiterated all its 2025 and long-term targets despite the revenue shortfall in the quarter.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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