Banca Sistema (BST) H1 2026 earnings summary

Executive summary

• Integration of CF+ and Banca Sistema is operational, with legal, organizational, and IT merger steps completed, and an 85.67% stake acquired; Kruso Kapital deconsolidated to 4.88%.

• Reverse merger approved by both boards, with legal effect expected by early November 2026 and a new business plan by year-end.

• Securitization of €115 million NPEs executed, with expected CET1 benefit and significant reduction in past due loans; first European public rating for NPEs to PA entities.

• Assurance process completed, addressing Bank of Italy inspection findings, leading to €11.9 million one-off provisions, €6.9 million additional impairments, and a €40 million increase in past due loans.

• Deconsolidation of Kruso Kapital released €40 million RWA, with a 40bps CET1 benefit and earlier-than-planned capital impact.

Financial highlights

• New volumes up 36% year-over-year to €3.8 billion; factoring up 29%, NHS and PA up 65%, tax credit up 70%.

• Loans to customers increased 3% to €4,299 million; core funding up 4% to €5,704 million.

• Aggregated adjusted profit before tax at €22.3 million, up 66% year-over-year; consolidated profit before tax at €91 million, heavily influenced by €75 million in extraordinary items.

• Extraordinary items include €96.6 million badwill, €11.9 million one-off provisions, and €10.9 million integration costs.

• Cost of risk (adjusted) down to 43bps from 123bps year-over-year; cost-income ratio improved to 63%.

Outlook and guidance

• CET1 ratio expected to reach 12–12.2% by year-end after merger and SRT transaction completion; capital ratios expected to improve post-merger and NPE securitization.

• Normalized cost of risk projected at 60–70 basis points for the second half of 2026.

• Cost of funding targeted at Euribor plus 20–25 basis points.

• Ongoing review of salary-backed loan business, with potential strategic actions under consideration.

• New business plan to be presented by year-end 2026.