BFF Bank (BFF) H2 2025 earnings summary

Executive summary

• Adjusted net profit for 2025 was €139.1m–€140m, with reported net profit at €37m, both significantly impacted by regulatory-driven non-recurring items and restatement of 2024 accounts.

• Adjusted net profit rose 6% year-over-year, supported by Factoring & Lending and Transaction Services growth.

• Four key regulatory 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 focused on profitability over volume growth, with a strong balance sheet and conservative risk profile.

• Decisive de-risking actions taken ahead of potential securitization and a new Strategic Plan to be presented in 2H26.

Financial highlights

• Adjusted net income for 2025 reached €139.1m–€152m, up 6% year-over-year; reported net profit at €37m, down 83% YoY due to one-offs.

• Total net revenues increased 1% to €405.3m; adjusted total revenues at €678.7m, down 14% YoY.

• Deposits in transaction services grew 15% YoY; Payments revenues up 4% to €69.6m; Securities Services revenues up 11% to €27.4m.

• Consolidated total assets as of December 2025 were €12.13bn–€12.3bn; Italian government bonds make up 37–40% of assets.

• Net past due exposure at end-2025 is approximately €3bn, mostly public administration-related; regulatory reclassification increased net past due by €1.36bn.

Outlook and guidance

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

• 2026 guidance revised downward from previous targets; EPS target now €0.6–0.7.

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

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

• New Strategic Plan to be unveiled in the second half of 2026.