Banca Sistema (BST) H1 2026 earnings summary

Executive summary

• Integration of CF+ and Banca Sistema is operational, with a successful public tender and exchange offer resulting in an 85.67% stake and the deconsolidation of Kruso Kapital, now at 4.88%.

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

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

• Significant governance changes included a new CEO, Board, and transition of audit responsibilities to EY S.p.A.

Financial highlights

• Net interest income rose 41.8% year-over-year to €30.1 million, net fees and commissions up 78.3% to €5.4 million, and total income declined 2.7% to €49.4 million.

• Net income for 1H26 was €4.5 million, down 69% year-over-year due to non-recurring items; adjusted net income was €10.7 million, nearly flat versus 1H25.

• Aggregated adjusted profit before tax (excluding Kruso Kapital) at €22.3 million, up from €13 million year-over-year.

• Loans to customers increased 3% year-over-year to €4.3 billion; core funding up 4% to €5.7 billion.

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

Outlook and guidance

• CET1 ratio expected to reach 12–12.2% by year-end after merger and SRT transaction completion.

• Ongoing actions to optimize capital absorption and mitigate the impact of stricter default definitions are expected to support future growth.

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