• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    How Strong Earnings Will Impact BAWAG Group Stock Investors

    Simply Wall St·10/24/2026 01:29:11
    Listen to the news
    • BAWAG Group reported third quarter 2026 net income of €247.5 million and nine month net income of €734.8 million, with basic earnings per share from continuing operations of €3.18 for the quarter and €9.45 for the nine month period.
    • Management also reconfirmed 2026 targets, including net profit over €960 million, return on tangible common equity over 20% and a cost income ratio under 33%, signaling confidence in the current earnings trajectory and cost discipline.
    • The focus now turns to how BAWAG Group's reaffirmed full year profit and efficiency goals could influence its broader investment narrative.
    Spot 192 high quality undervalued stocks that, like BAWAG Group reconfirming its 2026 targets, pair firm profit ambitions with disciplined cost control and solid earnings power.

    BAWAG Group Investment Narrative Recap

    To own BAWAG Group, you need to believe the bank can keep pairing tight cost control with solid profitability while it leans into higher-yielding lending and digests PTSB. The latest quarter, with €247.5 million of net income and €3.18 EPS, broadly supports that picture without radically changing the near-term story.

    The reaffirmed 2026 targets keep the main catalyst in focus: execution on earnings and efficiency while risk costs stay around guided levels. The biggest current pressure point stays the same. Rising risk costs from unsecured consumer lending and integration spending could push the cost-income ratio higher if revenue momentum slows.

    The most relevant update for readers is the reconfirmed full-year 2026 guidance. Management still aims for net profit above €960 million, return on tangible common equity above 20%, and a cost-income ratio under 33%. Those markers frame how you judge every quarter from here, including this one.

    Combined with nine-month net income of €734.8 million and €9.45 EPS from continuing operations, that guidance gives a clear scoreboard for BAWAG Group. The key question is execution: can the bank keep risk costs and integration effects contained while using its balance sheet strength to support growth and deliver on those targets?

    BAWAG Group's current analyst narrative points to revenues of €3.3 billion and earnings of €1.4 billion by 2029, based on assumed yearly revenue growth of 17.0% and an earnings increase of about €505 million from €895.3 million today.

    Uncover how BAWAG Group's fair value indicates a 26% potential upside to its current price before the gap between price and value narrows.

    WBAG:BG 1-Year Stock Price Chart
    WBAG:BG 1-Year Stock Price Chart

    Exploring Other Perspectives

    One alternate angle on BAWAG Group focuses less on earnings targets and more on risk costs creeping higher as unsecured lending grows. The lowest analysts were already assuming about €3.6b of revenue and €1.5b of earnings by 2029, yet still saw the stock as fairly valued. That is a more cautious story than consensus. The fresh guidance and quarterly results could shift both views, so compare these forecasts and decide which narrative you find more convincing.

    Explore 5 other BAWAG Group fair value estimates, including one that suggests it could be worth just €175.00.

    Reach Your Own Conclusion

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so trust your own analysis.

    Looking for more investment ideas beyond BAWAG Group?

    If the BAWAG Group story has sharpened your thinking on profitability, capital strength, and risk, it can help to compare it with other stocks that share some of those traits. The Simply Wall St Screener lets you quickly filter the market using fundamentals so you can build a watchlist that actually fits your approach.