BFF Bank (BFF) Q2 2024 earnings summary

Executive summary

• Adjusted net profit for H1 2024 was €71.0 million, up 5% year-over-year excluding one-off items; reported net profit reached €161.8 million, reflecting non-recurring gains from late payment interest and portfolio reclassification.

• Loan book reached a record €5.6 billion, up 7% year-over-year, with international markets contributing significantly; total assets stood at €12.2 billion.

• Deposits increased 10% year-over-year to €8.1 billion, supporting a stable loan/deposit ratio of 69%.

• Board approved a prudential reclassification of the credit portfolio, increasing past due exposures by €1.43 billion and RWAs by €1.8 billion.

• CET1 ratio at 11.9% and total capital ratio at 14.8%, both above regulatory requirements, with leverage ratio at 6.2%.

Financial highlights

• Total revenues for H1 2024 were €398.4 million, up 13% year-over-year; net revenues up 9% year-over-year excluding one-off gains.

• Factoring & Lending revenues rose 17% to €218.0 million; Payments revenues increased 11% to €32.5 million; Securities Services revenues declined 5% to €11.8 million.

• Costs increased by 4% year-over-year, reflecting investments, inflation, and contract renewal.

• Cost/income ratio increased to 46% from 44% in H1 2023.

• Cost of funding in H1 2024 was 3.75%, below market reference rates.

Outlook and guidance

• 2026 business plan and strategic targets reaffirmed, including adjusted net profit, EPS, cumulative dividends, CET1 ratio, and cost/income.

• Focus for H2: manage redemption of back book, optimize RWA, strengthen collections, and prepare for Q4 LPI and recovery cost season.

• Dividend policy unchanged; distribution subject to capital thresholds and Bank of Italy lifting the temporary suspension.