BAWAG Group Expands Financial Horizons with New 2027 Goals

BAWAG Group Sets Ambitious Financial Targets for Future Growth

Today, BAWAG Group is thrilled to share insights from its second Investor Day since the initial public offering (IPO) in 2017. After more than seven years operating as a publicly traded entity, the bank reflects on its impressive journey while also looking ahead to an exciting future. Recognized as one of the most esteemed banks in Europe, BAWAG Group showcases its resilience and commitment to serving customers and local communities effectively.

Having successfully met the medium-term financial targets laid out in 2021, the team at BAWAG Group takes immense pride in their achievements. However, the journey does not stop here, as the company acknowledges the vast potential ahead.

Strategic Goals for 2027

During the Investor Day, BAWAG Group unveiled an exciting set of medium-term financial goals aimed for 2027. The company aims to achieve a remarkable net profit exceeding €2.7 billion from 2025 to 2027, with an impressive goal of net profit exceeding €1 billion in 2027. Alongside these profit ambitions, BAWAG Group projects to generate over €1 billion in excess capital. This strategy includes considering a sustainable 55% dividend payout ratio, paving the way for various growth opportunities.

Future Plans for Capital Deployment

The approach towards capital deployment remains strategic and considered. As with previous years, BAWAG Group will evaluate its capital position at year-end, communicating distributions in alignment with its established capital distribution framework. The goal is to deliver a return on tangible common equity (RoTCE) exceeding 20% throughout various market cycles, alongside a cost-income ratio (CIR) targeting below 33% by 2027.

Reflection on Past Performance

Reflecting on the past year, CEO Anas Abuzaakouk highlighted the impressive return on tangible common equity of 26% achieved last year. Over the past 13 years, the bank averaged a commendable 18% in RoTCE, demonstrating resilience even during periods of economic uncertainty marked by zero or negative interest rates. These figures underscore BAWAG Group's evolution into a leading performer among European banks, representing a collective endeavor that has been in the making for years.

Looking Forward: A Promising Future

“However, our best years lie ahead,” comments CEO Anas Abuzaakouk during the Investor Day presentation. With a clear vision for 2027, the company acknowledges the goal of ‘1+1’: aiming for a net profit greater than €1 billion while also generating excess capital exceeding €1 billion. The ability to navigate and thrive in various market conditions is key to BAWAG Group's strategy, as they strive for continued revenue growth while maintaining strict control over costs.

Commitment to Long-Term Success

BAWAG Group's strategy emphasizes the importance of a steadfast and disciplined approach: controlling what can be managed, practicing patience, maintaining a conservative risk appetite, and fostering a constructive culture. The commitment from the team at BAWAG Group to fulfill their promises and work towards sustained success is strong.

The complete presentation from the Investor Day is available on the company’s website, providing detailed insights into their strategic initiatives and future aspirations.

About BAWAG Group

BAWAG Group AG stands as a publicly listed holding company with its headquarters in Vienna, Austria. Proudly serving over 4 million clients including retail customers, small businesses, corporations, and public sector entities, BAWAG Group has established a robust presence in various markets. The group operates under different brands and across multiple channels, providing a diverse array of banking services tailored to meet the needs of its customers.

With a mission to deliver simple, transparent, and affordable financial offerings, BAWAG Group continues to prioritize the needs of its clients while maintaining a strong commitment to effective governance and responsible banking practices.

Frequently Asked Questions

What are BAWAG Group's financial targets for 2027?

BAWAG Group aims to achieve a net profit exceeding €2.7 billion from 2025 to 2027, with a targeted net profit over €1 billion in 2027.

How much excess capital is BAWAG Group planning to generate?

The bank projects to generate over €1 billion in excess capital, which will support growth initiatives and capital distributions.

What is the target RoTCE for BAWAG Group by 2027?

BAWAG Group is targeting a return on tangible common equity (RoTCE) exceeding 20% across various cycles by 2027.

How does BAWAG Group plan to manage its capital?

The company will evaluate its capital position at the end of each year and communicate any distributions in line with its capital distribution framework.

What is the mission of BAWAG Group?

BAWAG Group aims to deliver simple, transparent, and affordable financial products to its customers across different sectors.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

Writing for a number of financial blogs has allowed me to interact with readers from novice investors looking for fresh ideas to seasoned investors starting their financial journeys. My mission is to enable everyone to understand and access finance, so enabling you to confidently and clearly reach your financial goals. I appreciate you traveling with me toward success and financial literacy.

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