BAWAG Group stock: Q3 profit keeps 2026 targets in focus

BAWAG Group reported strong third-quarter profitability on October 19, 2026, while keeping its full-year targets unchanged. In the official BAWAG Group Q3 2026 results transcript, Chief Executive Anas Abuzaakouk said the bank had delivered a robust quarter and remained on track for its 2026 objectives.

Net profit came to 248 million euros, while earnings per share reached 3.18 euros and return on tangible common equity stood at 27 percent. Core revenue rose 8 percent from a year earlier to 599 million euros. Pre-provision profit reached 425 million euros, and the cost-income ratio was about 30 percent.

Targets Remain The Main Scorecard

Management reaffirmed its 2026 ambition of net profit above 960 million euros, return on tangible common equity above 20 percent and a cost-income ratio below 33 percent. The targets exclude any contribution from the planned Permanent TSB transaction. BAWAG said it expects to provide updated mid-term targets with its full-year results in February.

The earnings profile also showed a trade-off between growth and credit costs. Risk costs reached 79 million euros, equivalent to 56 basis points, as the asset mix shifted toward higher-margin consumer and unsecured lending. Management nevertheless described underlying credit performance as solid, citing a non-performing loan ratio of 1 percent.

Net profit was 3 percent below the second quarter because the prior period benefited from a positive tax effect linked to a participation sale. Pre-tax profit still rose 1 percent quarter over quarter. Core revenue increased 2 percent from the second quarter, while operating expenses fell 2 percent.

Capital Supports PTSB Plans

BAWAG ended the quarter with a common equity tier 1 ratio of 17.1 percent, which management said represented more than 1 billion euros of excess capital above its 12.5 percent target. The bank also held 13 billion euros in cash and reported a liquidity coverage ratio of 197 percent.

That capital position is intended to support the planned acquisition of Permanent TSB without external funding. The transaction requires roughly 450 basis points of capital and remains subject to High Court and regulatory approvals. BAWAG said the deal would be its 15th acquisition since 2015 if completed.

Market Focus Shifts To Execution

For the fourth quarter, management expects gradual net interest income growth and stable net commission income. Mortgage volumes remain subdued because of intense pricing competition, while consumer and small-business lending has continued to perform well. The bank also expects full-year risk costs to remain close to 50 basis points.

BAWAG Group stock traded at 159.95 euros on Lang & Schwarz at 09:21 CET on Monday, November 2, 2026. Investors are likely to focus on delivery against the 2026 targets, the treatment of rising risk costs and progress toward the Permanent TSB closing.

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