Banca Sistema (BST) H1 2025 earnings summary

Executive summary

• Net profit for H1 2025 surged 145% year-over-year to €14.6 million, driven by strong income growth, improved profitability, and lower funding costs across core business lines.

• Total income rose 27% year-over-year to €69.8 million, with the Factoring Division as the main contributor, supported by Superbonus trading and treasury gains.

• Gross NPEs spiked in Q1 2025 due to regulatory reclassification but fell 11% quarter-on-quarter in Q2, with past due loans down 21% following accelerated collections and disposals.

• CET1 and total capital ratios improved to 13.8% and 16.6% respectively, up 140 and 170 basis points in Q2, with capital buffers 350–400 basis points above SREP.

• A voluntary public offer for 100% of shares was announced by Banca CF+, with the board's opinion pending and a potential €9.3 million non-recurring charge if control changes.

Financial highlights

• Net interest income (adjusted) increased 43% year-over-year to €46.4 million, including €16.9 million from Superbonus trading.

• Net profit reached €14.6 million (+145% y/y); pre-tax profit was €24.1 million (+128% y/y).

• Operating costs rose 2% year-over-year, mainly due to higher personnel and administrative expenses, but cost-to-income ratio improved.

• Cost of risk increased to 35bps (from 24bps in H1 2024), with loan loss provisions totaling €4.6 million.

• Total assets decreased 6.7% quarter-on-quarter to €4.39 billion, reflecting lower customer loans and financial portfolio.

Outlook and guidance

• Cost of funding is expected to remain stable in H2 2025, with further optimization and capital reserves supporting capital ratios.

• Securitization transactions and SRT effects will enable growth in factoring, especially in the entertainment segment, with low capital consumption.

• Further reduction in past due loans is targeted, primarily through collections and agreements with public administration.

• A non-recurring charge of €9.3 million is anticipated if a change of control occurs due to the public tender offer.