BAWAG Q1 2026 Results & Update

27.6% RoTCE +1 point versus prior year

32.5% CIR (4.5) points versus prior year

Vienna, April 21, 2026 - Today, BAWAG Group released its results for the first quarter of 2026, with net profit of €232 million, a return on tangible common equity (RoTCE) of 27.6%, and cost-income ratio of 32.5%.

FINANCIAL PERFORMANCE IN THE FIRST QUARTER 2026

BAWAG Group reported net profit of €232 million in the first quarter with earnings per share of €3.00, and pre-provision profit increasing by 3% quarter-over-quarter to €391 million.

RoTCE of 27.6% remained well above BAWAG's through‑the‑cycle target of over 20%, underpinned by disciplined capital allocation and further synergy gains, as the integration of Knab is largely complete and the integration of easybank in Germany continues to progress.

Net interest income amounted to €480 million in the first quarter of 2026, increasing by 8% compared to the first quarter of 2025, supported by acquisitions and a changing asset mix. Net fee and commission income rose to €99 million, up 11% year‑over‑year, reflecting continued organic growth as well as contributions from acquisitions.

Operating expenses decreased by 5% year‑over‑year to €188 million, driven by continued efficiency measures and synergy realization across the expanded Group. Consequently, the cost‑income ratio improved to 32.5%, versus 37.0% in the prior‑year quarter, in line with our through‑the‑cycle target of below 33%.

Risk costs amounted to €65 million in the first quarter of 2026, compared to €59 million in the prior‑year quarter. The prior‑year quarter included only two months of the rebranded easybank business, following the acquisition's closing on February 1, 2025. Asset quality remained strong, with a non‑performing loan (NPL) ratio of 0.8%, unchanged year‑over‑year.

" We delivered a strong start to 2026. With net profit of €232 million, a RoTCE of 28%, and a cost-income ratio of 33%. The operating performance of our business was very strong with core revenues of €579 million, up 8% versus prior year, pre-provision profits of €391 million and a CIR of 33%, realizing the benefits from our prior our investments over the years as we build-out a pan-European and U.S. banking group. On the back of a record year in 2025 and having integrated both Knab and Barclays Consumer Bank Europe (which was rebranded to easybank earlier this year), we are thrilled to have been selected by PTSB to enter into this transaction. The trust and confidence placed in us by the PTSB Board and the Minister for Finance of Ireland, as the bank's majority shareholder, is something we take very seriously and are keen to demonstrate our capabilities and contributions. I'm incredibly proud of our team members and their commitment to our customers and the communities we serve. Your work ethic, passion, and commitment to excellence are what sets BAWAG Group apart and makes it so special!" - Anas Abuzaakouk · CEO, BAWAG Group

PTSB - STRATEGIC OPPORTUNITY IN IRELAND

Ireland represents an attractive market supported by strong macroeconomic fundamentals. Building on the Group's presence since 2015 and the establishment of its retail business with MoCo in 2023, BAWAG agreed to a recommended all cash offer for PTSB shares on April 14, 2026. The proposed acquisition would combine local expertise with BAWAG Group's balance sheet strength and operational capabilities.

"The proposed acquisition of PTSB would be transformative as we continue to build a pan-European and U.S. banking group. Upon completion, BAWAG Group would exceed €100 billion in total assets, serve more than five million customers across seven countries, and offer a comprehensive suite of retail, SME, and corporate banking products. We are excited to welcome our new colleagues from PTSB and to shape our shared future together, with our best years ahead," Anas Abuzaakouk added.

The acquisition is subject to shareholder and regulatory approvals.

The transaction was underwritten to be in line with our through-the-cycle Group return requirements of >20% RoTCE. The transaction is expected to generate over €250 million net profit by 2028, generate over 20% EPS accretion, and from a capital allocation perspective is more accretive than a share buyback by over two times.

Given our strong capital position and capital generation, our aim is to fully self-fund the deal through capital management measures: For 2026, BAWAG will temporarily adjust its dividend policy, including a non‑distribution commitment for first‑half profits, with the maximum potential dividend limited to second‑half earnings of approximately €500 million. In addition, the Group will implement RWA optimization measures, including credit protection solutions, contributing around 50 basis points of capital in the first half of 2026. Alternative options would be further dividend adjustments and/or a potential capital raise.

OVERVIEW

OUTLOOK & TARGETS

BAWAG Group continues to execute its established strategy and reconfirms its target for 2026 net profit of > €960 million. The mid-term targets will be updated at year-end, subject to shareholder and regulatory approvals, of PTSB acquisition.

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 groups today.

BAWAG Group's Investor Relations website bawaggroup.com/ir contains further information, including financial and other information for investors.

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.