Banca Sistema (BST) H2 2025 earnings summary

Executive summary

• Achieved record net profit of €42.3 million in 2025, up 68% year-on-year, the highest in history, driven by a €40.9 million late-payment interest collection from an ECHR ruling.

• Total income rose 41% year-on-year, with adjusted net interest income up 51% and net fee and commission income up 3%.

• Operating costs increased 17% year-on-year, mainly due to non-recurring consultancy, credit, and IT expenses.

• Capital ratios improved significantly, with CET1 at 15.1% and total capital ratio at 17.8%, both up over 170 basis points from 2024.

• Gross NPEs declined by 27% from Q1 2025 after a regulatory-driven spike, aided by major collections from municipalities under ECHR rulings.

Financial highlights

• Net profit reached €42.3 million (+68% y/y); total income €170.8 million (+41% y/y); adjusted NII up 51% y/y.

• Factoring turnover fell 13% year-on-year to €4,574 million, mainly due to reduced Superbonus and private sector receivables.

• Pawnbroking grew 8% year-on-year, with turnover up 16% to €257 million and net profit doubling to €6.2 million.

• Cost of funding dropped to 2.95% from 3.79% in 2024, with retail funding stable at 70% of total.

• Administrative costs rose 30% year-on-year, driven by non-recurring consultancy and credit-related costs.

Outlook and guidance

• Factoring turnover expected to increase in 2026, supported by securitizations in the entertainment sector.

• Superbonus business is winding down, with only minor new acquisitions expected; future growth to focus on factoring with public administration and entertainment.

• Salary-backed loan origination will be maintained at attractive yields, with potential for further portfolio sales.

• Managerial actions to reduce NPEs and capital absorption will continue, including SRT, insurance, and disposals.

• SREP capital requirements will increase as of 31 March 2026: CET1 ratio to 10.10%, Tier 1 to 11.60%, Total capital ratio to 13.60%.