Austrian bank Bawag linked with move for Permanent TSB

Bawag chief executive said Irish market robust and a core country for the bank

Austrian banking group Bawag has said it is assessing acquisition targets as it emerges as a potential buyer for Permanent TSB. Picture: Andres Poveda

Austrian banking group Bawag has said it is assessing acquisition targets as it emerges as a potential buyer for Permanent TSB.

Bawag chief executive Anas Abuzaakouk said the company expects to make a decision over how to use surplus capital in the next three months, amid links to Permanent TSB, Ireland's third-largest bank.

Bawag already has a presence in Ireland through mortgage lender MoCo.

Mr Abuzaakouk declined to name specific targets, but said Ireland was one of the most robust banking markets in Europe and a core country for the bank. “We have the bandwidth to be able to address larger acquisitions going forward,” he told analysts Wednesday.

Last month, Spanish lender Bankinter distanced itself from a move for the Irish bank.

PTSB is the last lender in Ireland to retain State ownership as the legacy of the government bailout during the global financial crisis. The Government holds a 57% stake in PTSB valued at about €998m ($1.19 billion) as of Wednesday’s stock price in Dublin. Bawag had year-end surplus capital of about €468m, including revenue anticipated from a minority stake sale closing in 2026.

Mr Abuzaakouk said the bank would be in a better position to decide how to use excess capital by the time it announces first-quarter results in April. Bawag seeks to fund all deals with capital at hand, but won’t shy away from selling new shares if needed, he said.

Bawag is the fourth largest bank in Austria and has more than 4m customers. Bawag plans to generate about €1.5bn of surplus capital for deals, additional shareholder distribution beyond regular dividends, and organic growth by 2028.

Bloomberg