Bawag Group Ag U/Ads

Good day and thank you for standing by. Welcome to the Bawag Group Q3 2026 Results webcast and conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 and 1 again. Please be advised that today's conference is being recorded and there will also be a transcript on the company's website. I would now like to hand the conference over to your first speaker today, Jutta Bimmer, Head of Investor Relations. Please go ahead.

Good morning, everyone. Before we start with Nicole, let me remind you of the following. In regards of the planned transaction of permanent TSB, be reminded that transaction is regulated by the Irish takeover rules. and therefore are restricted in information we can provide on this call. As a result, we will not take Q&A in relation to the PTSP transaction, and any updates will be communicated by regulatory announcements. With that, I hand over to our CEO, Anna Savosakouk.

Thanks, Jutta. I hope everyone is doing well this morning. I am joined by Enver, our CFO. Let us start with the summary of third quarter results on slide three. We delivered net profit of 248 million euros, EPS of three euros, 18 cents, and a return on tangible common equity of 27% during the third quarter. The operating performance of our business was very strong with core revenues of 599 million, up 8% versus prior year, pre-provision profits of 425 million, and a cost income ratio of 30%. We continue to realize the benefits of investments over the years as we build out a pan-European and U.S. banking group. Total risk costs were $79 million, translating into a risk-cost ratio of 56 basis points. We have a low NPL ratio of 1% and continue to see solid credit performance across our businesses. In terms of our balance sheet and capital, average customer loans were flat and average customer funding was down 1%, quarter over quarter. We have a Fortress balance sheet with 13 billion euros of cash equal to approximately 19% of our balance sheet, an LCR of 197%, and overall strong asset quality. During the first three quarters of the year, we worked diligently to ensure we positioned ourselves to fully self-fund the PTSB transaction. As of the third quarter, we landed on a CET1 ratio of 17.1%, translating into over 1 billion of excess capital required to self-fund the deal. We have invested considerable time and resources in the PTSB transaction, and we look forward to the upcoming High Court decision at the end of the month and receipt of the remaining regulatory approval. We started this process in November of 2025 when we made a strategic decision to enter the announced public auction. We spent six months of due diligence as part of a competitive auction process that required thorough analysis, planning, in coordination, and we were pleased to emerge from that process as a successful bidder. After the signing of the transaction and subsequent shareholder approval in July, we have spent a significant amount of time communicating with regulators, the PTSB board and leadership team, and many other stakeholders introducing ourselves and our business. Our goal has been to listen, learn, and prepare for a smooth and seamless integration. We are confident in having put our best foot forward being patient, staying disciplined, working constructively and transparently at every stage of the process, all while rising above the noise. If the PTSP transaction is approved, this will be our 15th acquisition since 2015. Acquisitions are a key plank of our strategy as we continue to build a pan-European and US banking group with the capabilities and scale to effectively compete and deliver sustainable results long into the future. PTSB would be our first public company acquisition with different dynamics, but always staying consistent to our principles. We focus on delivering results through our actions and avoiding empty slogans and self-promotion as our actions speak louder than our words. We have been consistent about our views of the Irish market and key focus. Ireland is one of the most attractive markets across Europe with all the ingredients for successful banking, pro-growth economic policies, rich in human capital and a bridge to the EU, the UK, and the US. We aim to drive competition through significant investment and innovation, supporting PTSB's customers and, more broadly, the Irish economy, while delivering long-term sustainable growth. We are excited to get to work and embrace the journey ahead. We will provide an updated mid-term outlook with full-year earnings, assuming a successful close of the PTSB transaction. excluding any potential PTSB impact, we reconfirm all of our 2026 targets with net profit over 960 million euros, return on tangible common equity over 20% and a cost income ratio under 33%. Moving to slide four, as far as capital development, our reported CET1 ratio landed at 17.1% equal to over €1 billion of excess capital above our CET1 target of 12.5%. This puts us in the position to fully self-fund the PTSB acquisition, which requires approximately 450 basis points of capital, subject to high court and regulatory approvals. We generated 116 basis points of gross capital from earnings during the third quarter. RWA growth accounted for approximately 30 basis points of capital, reflecting the changing asset mix and growth in our consumer and SME business, which has been on a positive trajectory the past few quarters. We also restarted our dividend accrual, accruing 100% of earnings in the third quarter, equal to €248 million of net profit, or €3.21 per share, and plan to do the same for the fourth quarter as well. With that, I'll hand it over to Anvir.