Bawag Achieves Nearly a Fifth More Profit in First Half

Austrian bank Bawag announced a significant boost in its financial performance for the first half of 2026, with net profit soaring by 19% to 487.3 million euros compared to the same period in 2025. This growth was driven by a 7% increase in net interest income, reaching 968.4 million euros, and a 12% rise in commission surplus to 200.2 million euros.

The bank highlighted that this strong financial result bolsters its capital position for the proposed acquisition of Irish lender PTSB, a deal valued at 1.6 billion euros. Bawag has already secured 57.5% of PTSB shares held by the Irish Ministry of Finance. The acquisition requires a 75% shareholder approval at PTSB's general meeting on July 30, followed by regulatory green light.

Bawag CEO Anas Abuzaakouk expressed confidence in the strategic value of the PTSB acquisition, emphasizing it as a key step in the bank's long-term commitment to the Irish market. Preparations are reportedly advancing rapidly, with ongoing dialogue with authorities and stakeholders. The transaction is anticipated to conclude in the fourth quarter of 2026 or the first quarter of 2027.

The acquisition will be fully funded through Bawag's own capital. The bank cited its "capital generation in the first half" and a robust CET1 ratio of 17.4% at the end of the second quarter as indicators of its strong financial standing. To support this, Bawag has also restricted its dividend policy, opting not to distribute the first-half profits. The bank reaffirmed its full-year net profit forecast of over 960 million euros.

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We remain convinced of the strategic attractiveness of the planned acquisition of PTSB, which represents a significant step in our long-term commitment to the Irish market.