BAWAG Group AG: Navigating Growth with Strategic Acquisitions and Insider Investments

BAWAG Group AG (BG:AV) provides an extensive range of banking products and services across Austria, Western Europe, North America, and internationally. Headquartered in Vienna, Austria, the company operations are divided into three main segments: Retail & SME, Corporates, Real Estate & Public Sector, and Treasury. With a market capitalization of 5.28 billion EUR, BAWAG Group AG is a significant player in the banking industry, serving a diverse clientele that includes retail, small business, corporate, real estate, and public sector customers.

Insider Trades

Recent insider trading activities at BAWAG have drawn considerable attention, highlighting potential confidence in the company’s future prospects. Notably, Guido Jestaedt, Member of the Management Board and Chief Administrative Officer, and Anas Abuzaakouk, Chief Executive Officer, have both made substantial investments in the company’s ordinary shares marking the first case of insider buying this year.

• On July 22, 2024, Guido Jestaedt purchased 500 ordinary shares at 67 EUR per share, amounting to a total investment of 33,500 EUR.

• On July 19, 2024, Jestaedt acquired 1,500 shares at 66.03 EUR each, totaling 99,045 EUR.

• Anas Abuzaakouk made a significant investment on July 19, 2024, buying 10,000 shares at 66.41 EUR per share, with a total value of 664,100 EUR.

• Abuzaakouk further reinforced his confidence in the company by purchasing 20,000 shares at 67.23 EUR each on July 18, 2024, totaling 1.345 million EUR.

Insiders Insight

Guido Jestaedt has over 15 years of experience in banking and finance, including leading BAWAG’s German operations and contributing to its expansion and IPO in 2017. Before joining BAWAG in 2012, he was a lawyer advising on debt financing.

Anas Abuzaakouk, with 24 years in Corporate Finance, Banking, and Private Equity, has been BAWAG’s CEO for six years. His background includes roles at General Electric, Cerberus, and BAWAG, where he has managed restructuring, strategy, M&A, financial planning, and capital management.

Their substantial investments in BAWAG reflect deep insight and strong confidence in the company’s future prospects.

Financial Performance and Acquisition Initiative

BAWAG Group AG reported a Q2 2024 net profit of €175 million, with EPS of €2.22 and RoTCE of 24.3%. Average customer deposits increased by 1%, while loans decreased by 1% compared to the prior quarter. Pre-provision profit was €263 million, a 2% rise from the previous quarter. For H1 2024, net profit reached €342 million, up 7% from H1 2023.

In the beginning of July 2024, BAWAG Group AG signed an agreement to acquire Barclays Consumer Bank Europe, marking its second acquisition of the year. This acquisition aligns with the company’s growth strategy and strengthens its presence in the European market.

Barclays Bank Ireland has agreed to sell its German consumer finance business to BAWAG, which will acquire Consumer Bank Europe for a small premium to net assets, payable in cash upon completion. This transaction is expected to release approximately €4 billion of risk-weighted assets for Barclays and does not impact its previously announced capital return plans.

In conclusion, the recent insider trades by Guido Jestaedt and Anas Abuzaakouk, coupled with their extensive experience and leadership roles within BAWAG Group AG, highlight a strong vote of confidence in the company’s future. With solid financial performance in Q2 2024 and strategic acquisitions like Barclays Consumer Bank Europe, BAWAG Group AG is well-positioned for continued growth and success in the competitive banking industry.