BAWAG PSK
A major Austrian banking brand serving retail, small-business and corporate customers through the BAWAG Group.
Last updated October 14, 2026
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Overview
BAWAG PSK is an Austrian banking brand and operating bank within BAWAG Group. Its present form was created on 1 October 2005 through the merger of BAWAG, the Bank für Arbeit und Wirtschaft, and Österreichische Postsparkasse, commonly known as PSK. The combined institution brought together BAWAG’s worker-oriented banking heritage and PSK’s postal-savings distribution tradition, creating one of Austria’s largest domestic banking businesses. The two predecessor institutions have substantially older histories. PSK originated in 1883, when Georg Coch established the Austrian Postal Savings Bank to extend secure saving to broad sections of the population and to channel deposits into government financing. BAWAG was founded in 1922 by former Austrian Chancellor Karl Renner as the Austrian Workers’ Bank, with a mission of providing ordinary people with access to credit on favorable terms. The bank was forced to close in 1934 and resumed operations after the Second World War in 1947. It adopted the name Bank für Arbeit und Wirtschaft AG, abbreviated BAWAG, in 1963. For many years, the Austrian Trade Union Federation, ÖGB, was its majority shareholder. BAWAG acquired PSK in 2000, and the institutions were subsequently merged. In December 2006, Cerberus Capital Management acquired BAWAG PSK in a transaction reported at approximately €3.2 billion. The bank later became the principal operating platform of BAWAG Group AG, whose shares began trading on the Vienna Stock Exchange in October 2017. BAWAG PSK serves Austrian retail customers, small businesses and corporate clients. Its product range includes current accounts, savings, payment services, consumer and residential lending, business lending, leasing, investment products, building-society products and insurance. The brand’s domestic footprint and broad product range position it as a general-purpose financial-services provider rather than a narrowly specialized lender. In 2016, the bank reported more than 2.5 million customers across Austria. Approximately two-thirds of customer loans were derived from Austria, while international activity focused on retail, corporate, commercial-real-estate and portfolio lending in developed Western markets. From 2012, BAWAG PSK implemented a broad transformation program centered on simplifying the organization, reducing costs, concentrating on core geographies and products, deleveraging the balance sheet, strengthening capital and improving liquidity. The program also reduced exposure to Central and Eastern Europe, ended proprietary trading, lowered non-performing loans and introduced more disciplined performance management. According to the cited 2016 information, profit before tax increased from €23 million in 2012 to €470 million in 2016, primarily through stronger core revenue and lower operating expenses. The group expanded through acquisitions including the former VB Leasing business in 2015, start:bausparkasse and IMMO-Bank in 2016, and PayLife and Südwestbank in 2017. BAWAG PSK has been classified as a significant institution under European Banking Supervision since late 2014 and is therefore directly supervised by the European Central Bank. The bank’s history also includes serious reputational and legal consequences from its lending relationship with Refco, which contributed to a major restructuring of ownership and governance in the mid-2000s.
History
BAWAG PSK’s history is the result of the combination of two Austrian financial institutions with different social and distribution traditions. Österreichische Postsparkasse, or PSK, was established in 1883 by Georg Coch. Its original purpose was to make saving accessible to a broad population while maintaining depositor security and supporting government finance through investment in public bonds. BAWAG was founded much later, in 1922, by Karl Renner, a former Austrian chancellor. Known initially as the Austrian Workers’ Bank, it was intended to extend affordable credit and banking access to ordinary working people. Political and economic upheaval forced the institution to close in 1934. It restarted operations in 1947 after the Second World War and adopted the corporate name Bank für Arbeit und Wirtschaft AG in 1963, giving rise to the BAWAG abbreviation. Until 2006, the Austrian Trade Union Federation was its majority shareholder. BAWAG acquired PSK in 2000. The two banks continued as distinct institutions for a period before being merged on 1 October 2005 to form BAWAG PSK. The merger created a large domestic banking platform with a retail presence, postal-savings heritage and established relationships with business customers. The newly merged bank soon became associated with the collapse of Refco, a United States commodities brokerage. In October 2005, BAWAG approved a €425 million loan to Refco chief executive Phillip R. Bennett, secured against Bennett’s own holdings. Bennett had used borrowed money to conceal losses and problematic transactions within Refco. When the irregularities became public immediately afterward, Refco entered bankruptcy proceedings and the value of the collateral was severely impaired. Austrian regulators and the central bank investigated the bank’s conduct. Refco creditors later brought claims exceeding $1.3 billion, alleging that BAWAG had participated in concealing transactions and had understated aspects of its relationship with Refco. A comprehensive settlement was confirmed by a New York bankruptcy court in September 2006. In December 2006, Cerberus Capital Management acquired BAWAG PSK in a transaction reported at approximately €3.2 billion. Ownership and governance consequently moved away from the former trade-union-controlled structure. The bank then pursued a multi-year transformation beginning in 2012. Its priorities included reducing operating costs, simplifying processes and organizational structures, narrowing the geographic and product focus, reducing risk and improving capitalization and liquidity. The bank reduced exposure to Central and Eastern Europe, exited proprietary trading and worked down non-performing loans. The transformation was accompanied by renewed expansion. BAWAG acquired the former VB Leasing business in 2015, followed by start:bausparkasse and IMMO-Bank in 2016. PayLife and Südwestbank were added in 2017. In October 2017, BAWAG Group AG, the holding company, became publicly listed on the Vienna Stock Exchange. BAWAG PSK remained a core Austrian operating brand within that group. By 2016, the bank reported more than 2.5 million customers, assets of €39.7 billion, operating income of €991 million, profit before tax of €470 million and total equity of €3.1 billion. It employed 2,496 people at year-end. Since the introduction of European Banking Supervision in late 2014, BAWAG PSK has been designated a significant institution and is directly supervised by the European Central Bank. Its business remains centered on Austrian consumers, small businesses and companies, with selected international lending focused on developed Western markets.
- 2017
PayLife and Südwestbank acquisitions are completed
[1]The group broadens its payment-services and German banking operations.
- 2017
BAWAG Group AG lists in Vienna
[1]The holding company becomes publicly traded on the Vienna Stock Exchange.
- 2017
BAWAG Group becomes publicly listed
[3]The parent group completes an initial public offering on the Vienna Stock Exchange; BAWAG P.S.K. remains a subsidiary.
- 2016
start:bausparkasse and IMMO-Bank are acquired
[1]The group adds building-society and property-finance capabilities.
- 2015
VB Leasing business is acquired
[1]The group expands its leasing and financing activities through acquisition of the former VB Leasing business.
- 2014
The bank becomes a significant institution
[1]BAWAG PSK enters the scope of direct European Central Bank supervision under European Banking Supervision.
- 2012
Operational transformation begins
[1]BAWAG PSK starts a program focused on cost efficiency, balance-sheet de-risking, capital strengthening and concentration on core markets.
- 2006
Cerberus acquires BAWAG PSK
[1]Cerberus Capital Management acquires the bank in December in a transaction reported at approximately €3.2 billion.
- 2006
BAWAG is sold and restructured
[2]A consortium led by Cerberus acquires the bank from the Austrian Trade Union Federation, beginning a major restructuring period.
- 2006
BAWAG and P.S.K. operate under a combined identity
[2]The BAWAG and Österreichische Postsparkasse businesses are integrated under the BAWAG P.S.K. name.
Products and positioning
A broad-based Austrian banking brand combining mass-market retail banking with small-business and corporate financial services, supported by the wider BAWAG Group. A mainstream Austrian retail and commercial banking brand within BAWAG Group, combining the heritage of BAWAG and Österreichische Postsparkasse with contemporary branch, digital and payment services.
Retail banking
Retail banking
BAWAG PSK provides everyday banking for Austrian consumers, including accounts, deposits, payments, consumer credit and residential lending. Its retail proposition reflects the combined institution’s historical emphasis on broad access to financial services and its large domestic customer base.
Business banking
Small-business and corporate banking
The bank serves small businesses and corporate clients with lending, payment services, liquidity products and other financial services. Corporate and commercial activity is primarily focused on Austria, with selected international exposure in developed Western markets.
Asset finance · 2015
Leasing
Leasing is part of the group’s broader financing offer. The acquisition of the former VB Leasing business strengthened the group’s presence in asset-based financing alongside its traditional loan products.
Investment services
Investment and asset-management services
BAWAG PSK offers investment-related products and services to retail and business customers. These complement deposits and lending and form part of its broader full-service banking proposition.
Housing finance · 2016
Building-society products
The group provides building-society and housing-finance products, reinforced by its acquisition of start:bausparkasse. These products support structured saving and property-related borrowing.
Insurance distribution
Insurance
Insurance products are included in the bank’s financial-services range, allowing customers to address protection needs alongside banking, savings and investment requirements.
Retail banking
Personal banking
Personal banking services include payment accounts, salary and transaction accounts, savings products, cards and access to online or mobile banking. These services form the everyday banking relationship for Austrian consumers and support routine payments, money management and access to credit.
Deposits
Savings and deposits
Savings and deposit products reflect the historical P.S.K. savings-bank heritage and provide customers with ways to hold cash and accumulate savings. Product terms, interest structures and availability vary over time and are subject to the bank's current catalogue.
Lending
Consumer finance
Consumer finance includes personal borrowing for household needs and other eligible purposes. It complements the bank's deposit and payments relationship and is distributed through the group's customer-service and digital channels.
Lending
Housing and mortgage finance
Housing finance covers mortgage and related lending for residential customers. It is one of the core lending areas associated with the Austrian retail bank and supports home purchase, construction or refinancing subject to underwriting requirements.
Payments
Cards and payments
The bank provides payment cards and payment-account functionality for domestic and international transactions. These services are supported by electronic banking and are central to the bank's role as an everyday retail institution.
Commercial banking
Business banking
Business banking serves companies and smaller enterprises with accounts, payments, lending and related financial services. The business complements the consumer franchise and connects the Austrian brand with the broader BAWAG Group's commercial-banking capabilities.
Controversies
2006
Refco creditor litigation and settlement
Refco creditors sued BAWAG for more than $1.3 billion, alleging that the bank had helped conceal fraudulent transactions and had not fully disclosed its Refco exposure. A comprehensive settlement was confirmed by a New York bankruptcy court in September 2006.
2005
Refco lending scandal
BAWAG approved a €425 million loan to Refco chief executive Phillip R. Bennett shortly before Refco’s undisclosed financial problems became public. Bennett had used borrowed funds in an attempt to conceal bad debts. Refco subsequently entered bankruptcy, prompting investigations by Austrian authorities and litigation by creditors.
2005
BAWAG and the Refco affair
BAWAG's financial relationship with Refco became a major scandal after Refco collapsed in 2005. The resulting losses, investigations and legal proceedings contributed to the bank's ownership change and restructuring. The episode concerns the former BAWAG institution and is a central historical event behind the later BAWAG P.S.K. group's reorganisation.
Brand decisions
2017
Complete PayLife and Südwestbank acquisitionsM&ABackground
The group’s post-transformation strategy included selective expansion in payments and neighboring developed markets.
Action taken
BAWAG completed the acquisitions of PayLife and Südwestbank.
Aftermath
The transactions strengthened payment-services capabilities and added a German banking business.
2017
List BAWAG Group AGStrategyBackground
Following restructuring and ownership changes, the banking business was organized within a listed group.
Action taken
BAWAG Group AG became listed on the Vienna Stock Exchange in October 2017.
Aftermath
BAWAG PSK continued as a core operating brand within a publicly traded banking group.
2017
Public listing of the parent groupStrategyBackground
After restructuring and ownership changes, the group pursued a public-market structure and broader European banking strategy.
Action taken
BAWAG Group completed an initial public offering on the Vienna Stock Exchange.
Aftermath
BAWAG P.S.K. continued as a subsidiary and operating banking brand rather than becoming a separately listed company.
2016
Acquire start:bausparkasse and IMMO-BankM&ABackground
BAWAG continued to broaden its domestic financial-services platform through targeted acquisitions.
Action taken
The group acquired start:bausparkasse and IMMO-Bank.
Aftermath
The acquisitions added building-society and property-finance activities.
2015
Acquire the former VB Leasing businessM&ABackground
The group pursued selective expansion after beginning its operational transformation.
Action taken
BAWAG acquired the former VB Leasing business.
Aftermath
The transaction expanded the group’s leasing and asset-finance capabilities.
2012
Launch a transformation and de-risking programStrategyBackground
The bank sought to improve financial strength and efficiency after a difficult period, while reducing complexity and risk.
Action taken
BAWAG PSK refocused on core geographies and products, simplified processes, reduced costs, exited proprietary trading, lowered Central and Eastern European exposure and worked down non-performing loans.
Aftermath
The cited company history reports that profit before tax rose from €23 million in 2012 to €470 million in 2016, alongside stronger capital and liquidity.
Profit before tax. €23 million → €470 million (2012 to 2016)
2006
Integration of BAWAG and P.S.K.M&ABackground
The two banking businesses had complementary Austrian retail, savings and payments franchises, while the wider group was being reorganised after the BAWAG crisis.
Action taken
The businesses were combined and presented under the BAWAG P.S.K. identity within the restructured banking group.
Aftermath
The combined entity became a principal Austrian operating bank and later formed part of the BAWAG Group structure.
2005
Merge BAWAG and PSKM&ABackground
BAWAG had acquired PSK in 2000, and the two institutions were subsequently integrated into a single Austrian banking platform.
Action taken
The banks merged on 1 October 2005, creating BAWAG PSK.
Aftermath
The merger combined BAWAG’s worker-oriented banking heritage with PSK’s postal-savings tradition and domestic distribution reach.
Recent events
- 2017
BAWAG Group lists on the Vienna Stock Exchange[1]
M&A · Other
BAWAG Group completed an initial public offering on the Vienna Stock Exchange. The listing applied to the parent group, while BAWAG P.S.K. continued as an operating subsidiary and banking brand.
- 2017
BAWAG expands through PayLife and Südwestbank acquisitions[1]
M&A
The group completed acquisitions of payment-services business PayLife and German bank Südwestbank as part of its post-restructuring expansion.
- 2006
BAWAG P.S.K. becomes part of the restructured BAWAG Group[2]
M&A
Following the financial crisis surrounding the former BAWAG, the bank was sold to a consortium led by Cerberus Capital Management and subsequently operated within a restructured ownership and management framework.
Sources3 sources
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