From Local Strength to Continental Success: BAWAG’s Steady Expansion in Europe

BAWAG Group has emerged as one of Europe’s most efficient and profitable banking institutions, founded on a clear ambition: to deliver transparent, accessible financial products and services. Since the launch of its transformation programme in 2012, BAWAG has remained committed to its core strategic pillars – growth, efficiency, and security. Today, the Group ranks among the continent’s leading performers in terms of profitability and operational efficiency.

“We are a multi-brand, multi-channel banking group focused on developed and mature markets, with operations in Austria, Germany, Switzerland, the Netherlands, Ireland, the United Kingdom, and the United States,” explains Anas Abuzaakouk, CEO of BAWAG Group. “Our focus is on retail and SME banking as well as secured lending, while using our digital capabilities to make banking easier for our customers.”

Being Good Stewards of Capital

Disciplined capital allocation – and M&A in particular – is a cornerstone of BAWAG’s management philosophy. “We aim to be good stewards of capital, making sure we maintain our fortress balance sheet, and always being ready to capitalise on unique opportunities,” says Abuzaakouk. “The bank’s strong profitability allows us to generate significant capital every year.”

Sustained Growth and Strategic Acquisitions

BAWAG’s success reflects the merits of patience, discipline, and a long-term mindset. Since 2012, the Group has increased earnings per share 23-fold, from €0.42 to €9.60. Customer loans have doubled from €25 billion to approximately €50 billion following its most recent acquisitions – Barclays Consumer Bank Europe in Germany and Knab Bank in the Netherlands.

The Group has extended €79 billion of credit to customers, invested €1.7 billion into transforming the franchise, self-funded 14 acquisitions, expanded into six new markets, and built a high-performing team. Since its IPO in October 2017, BAWAG has returned €3.2 billion to shareholders – €2.1 billion in dividends and €1.1 billion through share buybacks. This equates to a cumulative dividend per share of €25.20 and a 23% reduction in share capital.

Strategic Acquisitions in 2024: Knab and Barclays Consumer Bank Europe

BAWAG closed two strategic deals in quick succession – Knab in November 2024 and Barclays Consumer Bank Europe in February 2025 – while continuing to execute on a broad set of operational initiatives. These acquisitions are expected to accelerate the Group’s transformation, expand its digital capabilities, and add new talent to the team.

“With the most recent acquisitions, the share of our Retail & SME business in the DACH/NL region will be ~90%,” says Abuzaakouk. “These acquisitions allow us to scale across our core product lines in Germany and the Netherlands – including current accounts, credit cards, savings, and mortgages – and engage with a broad, diverse customer base.”

Founded in 2012, Knab is a digital bank with a strong brand and loyal customer base. A leading player in the underserved self-employed segment, it serves more than 400,000 Retail & SME customers, most of whom use the Knab current account as their primary banking relationship.

Barclays Consumer Bank Europe further strengthens BAWAG’s presence in the German retail market. With over 1.5 million customers and a 30-year track record, the bank is one of Germany’s leading credit card providers. Combined, the two strategic acquisitions are projected to generate over €350 million in pre-tax profit by 2027.

The BAWAG Culture

At the heart of BAWAG’s success is a distinctive corporate culture that combines heritage with entrepreneurial drive, accountability, meritocracy, and inclusivity. “Our senior leadership team has been instrumental in leading our decade-long transformation,” says Abuzaakouk.

BAWAG maintains a flat organisational structure that encourages open dialogue, streamlines decision-making, and promotes continuous improvement. Its workforce represents around 50 nationalities across seven core markets – a strength the Group actively cultivates through a commitment to diversity and inclusion.

“Our promotions are always based on merit, character, and work ethic – reflecting the values we live and the culture we’ve built,” Abuzaakouk affirms.

Stock Ownership: Promoting Long-Term Commitment

A defining feature of BAWAG’s corporate culture is its ownership mindset. The Management Board, Executive Council, and Senior Leadership Team – who collectively own 4.6% of the company – adopt an owner-operator perspective and are fully aligned with the Group’s long-term goals.

Attracting, developing, and retaining top-tier talent remains a strategic priority. In 2023, BAWAG introduced a comprehensive suite of employee benefits, including share grants (one share per month of service), a matching programme, and a cash profit participation scheme – all aimed at fostering long-term alignment and commitment.

The Road Ahead

As the European banking sector undergoes profound transformation, BAWAG remains focused on operational excellence, digital innovation, and disciplined growth. Years of investment in streamlining its technology stack, building internal tech capacity, and digitising the customer experience are now paying dividends.

Since 2012, the Group has invested over €700 million in technology and operations. Its digital-first approach reduces friction in transactional banking and allows for deeper, more meaningful customer engagement. “We’re now able to spend more time with customers – advising, understanding, and responding to their needs,” says Abuzaakouk. “The result is higher quality interactions and long-term loyalty.”

Looking ahead, BAWAG sees opportunities in new customer engagement models, AI-driven services, and continued revenue growth. “The resilience of our franchise lies in our ability to deliver results across all cycles – we are built for all seasons,” Abuzaakouk says. “Going forward, we expect to deliver positive operating leverage with significant top-line growth while maintaining cost discipline. Our approach remains consistent: focus on what we can control, lend prudently, maintain a conservative risk appetite, and pursue only long-term profitable growth.”

New Targets: “1+1 in 2027”

After delivering a record year in 2024 and completing two major acquisitions, BAWAG now stands as one of Europe’s top-performing banks – the result of over a decade of consistent execution. Last year, the Group delivered a return on tangible common equity of 26%, with a 13-year average of 18% despite operating for much of that time in a zero or negative interest rate environment.

Looking ahead, the Group’s new strategic objective is “1+1 in 2027”: targeting net profit of more than €1 billion in 2027 while also generating excess capital in excess of €1 billion through the same period.

“BAWAG’s transformation journey – from business realignment to international expansion – has laid the groundwork for continued success. And I’m confident that our best years still lie ahead,” concludes Abuzaakouk.