July 28, 2020 / 5:21 AM / 14 days ago

BAWAG's Q2 pre-tax profit halves

VIENNA, July 28 (Reuters) - Austrian bank BAWAG Group's pre-tax profit halved in the second quarter as it took precautionary measures to prepare for the fallout of the coronavirus pandemic.

Profit before tax came in at 80.8 million euros ($94.8 million) in the April-June period after 160 million euros in the previous year.

To address the deteriorating macroeconomic environment and provision against customers increasingly deferring payments due to COVID-19, a general reserve of 65 million euros was posted in the first half, leading to total risk costs of 130 million euros, the group said.

The bank confirmed its medium-term targets of a return on tangible common equity of above 15% and cost-income ratio of less than 40% in a normalized environment. ($1 = 0.8525 euros) (Reporting by Kirsti Knolle Editing by Michelle Martin)

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