BAWAG Group AG

Sinisa

Sinisa

— 2 min read
BAWAG Group AG

BAWAG Group AG is a publicly listed holding company headquartered in Vienna, Austria that provides banking and financial services. Here are some key details about the company:

Business Overview

  • Serves 2.1 million retail, small business, corporate, real estate and public sector customers across Austria, Germany, Switzerland, Netherlands, Western Europe, and the United States
  • Operates under various brands offering simple, transparent, and affordable financial products and services across multiple channels
  • Main business segments include retail banking, business banking, corporate lending, real estate financing, and treasury services

Financial Performance

  • Reported net profit of €186 million and earnings per share of €2.25 for Q3 2023
  • Return on tangible common equity (RoTCE) of 27.6% and cost-income ratio of 31.3% in Q3 2023
  • For the first 9 months of 2023, reported net profit of €506 million and earnings per share of €6.13

Recent Developments

  • Shareholders approved a dividend of €5.00 per share for the 2023 financial year at the Annual General Meeting in May 2024
  • Acquired Knab, a Dutch digital bank, in February 2024
  • Entered agreement to acquire German banking business from Barclays in July 2024

Leadership

  • CEO: Anas Abuzaakouk (since 2017)
  • CFO: Enver Sirucic (since 2017)
  • Chairman: Egbert Fleischer

BAWAG Group has demonstrated strong financial performance in recent years and continues to pursue growth through strategic acquisitions and partnerships across Europe. The company aims to maintain its position as a leading retail and corporate banking provider in the DACH region and selected markets.

Based on the latest financial results and information available, here are some key points about BAWAG Group AG's current valuation:

Financial Performance

  • BAWAG Group reported strong Q2 2024 results, with net profit of €175 million and earnings per share of €2.22.
  • For the full year 2023, the company reported net profit of €683 million and earnings per share of €8.31.
  • The company has demonstrated consistent profitability, with a return on tangible common equity (RoTCE) of 24.3% in Q2 2024.

Valuation Metrics

  • As of July 2024, BAWAG Group has a market capitalization of approximately €5.21 billion.
  • The stock is trading at a price-to-earnings (P/E) ratio of 7.75x based on 2024 estimated earnings.
  • The forward P/E ratio for 2025 is 7.17x.
  • BAWAG Group offers a dividend yield of 7.63% based on 2024 estimates.

Growth Outlook

  • Revenue is forecast to grow 1.2% per year on average over the next 3 years, which is below the 3.2% growth forecast for the European banking industry.
  • The company continues to pursue growth through strategic acquisitions, including recent deals to acquire Knab in the Netherlands and Barclays' German consumer banking business.

Analyst Perspectives

  • While BAWAG Group has shown strong profitability, its revenue growth outlook is somewhat modest compared to industry peers.
  • The low P/E ratio suggests the stock may be undervalued relative to earnings, but this could reflect market concerns about future growth potential.
  • The high dividend yield is attractive for income-focused investors.

Overall, BAWAG Group appears to be trading at relatively modest valuation multiples despite its strong profitability. However, investors should consider the company's growth prospects and potential risks when assessing its valuation. As always, it's advisable to conduct thorough research and consider multiple factors before making investment decisions.

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