Bawag plans dividend limit to help fund €1.62bn PTSB deal

Vienna-based bank will not pay a dividend to investors from first-half earnings, saving about €500m

Sat Shah, deputy chief executive of Bawag Group, with Eamonn Crowley, chief executive of PTSB. Picture: Chris Bellew/Fennell

Bawag Group will pause investor payouts and rely on significant risk transfers to fund the €1.62bn acquisition of Permanent TSB.

The Vienna-based bank will not pay a dividend from first-half earnings, saving about €500m, it said in a statement. Surplus capital already at hand at the end of 2025, as well as SRTs and other balance-sheet steps will contribute the rest of the price tag.