BFF Bank (BFF) Q1 2026 earnings summary

Executive summary

• Adjusted net profit for 1Q 2026 rose 24% year-over-year to €43.2m, with reported net profit up 40% to €50m, driven by Payments, Securities Services, and improved profitability in Factoring and Lending.

• All divisions contributed to profitability, with a diversified business model and strong focus on profitability over volume growth.

• Payments and Securities Services divisions delivered strong growth, contributing over half of net revenues.

• Strategic options are under review to optimize the business model, with a new strategic plan to be unveiled in the second half of the year.

• Bank of Italy inspection ongoing since December 2025, with temporary commissioners appointed to support the Board.

Financial highlights

• Net income for Q1 2026 was €43.2m, up 24% year-over-year; reported net income was €49.5m, up 40% year-over-year.

• Net revenues increased 19% year-over-year to €113m, with net banking income rising to €103.4m from €86.6m.

• Payments and Securities Services generated strong PBT, with Securities Services PBT up 148% to €5.7m and Payments PBT down 6% to €8.6m.

• Cost/income ratio improved to 42%, significantly down year-on-year despite higher costs and investments.

• Realized gains on the variable rate portfolio reached €60m, not included in capital projections.

Outlook and guidance

• Adjusted net income target for 2026 is €115m–€140m, with a focus on profitability and quality of volumes.

• CET1 (11.0%) and TCR (13.4%) capital ratios are above regulatory requirements.

• Over 100bps of organic capital generation in 1Q26.

• Strategic review ongoing to further optimize the business model, with new strategy to be presented in the second half of the year.