BFF Bank (BFF) H2 2025 earnings summary

Executive summary

• Adjusted net profit for 2025 is EUR 140 million (EUR 139.1 million), while reported net profit is EUR 37 million, both significantly impacted by non-recurring items and regulatory measures, including restatement of 2024 accounts.

• Four key changes impacted results: factoring exposure declassification, stricter provisioning for negative court rulings, higher provisions for non-performing exposures, and restatement of 2024 financials.

• Underlying business trends remain unchanged, with a focus on profitability over volume growth.

• A capital conservation plan was submitted to the regulator, and 2026 financial targets were revised downward.

Financial highlights

• FY 2025 Adjusted Total Revenues were EUR 678.7 million, down 14% YoY; Adjusted Net Revenues at EUR 405.3 million, up 1% YoY.

• Adjusted Profit Before Taxes at EUR 188.2 million, down 6% YoY; Adjusted Net Profit at EUR 139.1 million, down 3% YoY.

• Deposits in transaction services grew 15% YoY; on-line retail deposits reduced to EUR 1.3 billion (from EUR 2.8 billion).

• Consolidated total assets as of December 2025 were EUR 12.3 billion; Italian government bonds make up 37-40% of assets.

• Liquidity Coverage Ratio at 177.8%, Net Stable Funding Ratio at 113.6%.

Outlook and guidance

• Adjusted net income for 2026 is forecast between EUR 115 million and EUR 140 million, with return on tangible equity between 15% and 20%.

• Cost/Income ratio expected at 47-52%; EPS target revised to EUR 0.6-0.7.

• No capital shortfall expected in 2026 or 2027, assuming a slight deceleration in volumes; potential shortfall in 2028 if no external actions are taken.

• Guidance does not include potential positive capital effects from securitization.