BFF Bank (BFF) Q2 2025 earnings summary

Executive summary

• Adjusted net profit for H1 2025 reached €75.3 million, up 6% year-over-year, with Q2 profit up 37% YoY and record-high loan book of €5.9 billion (+5% YoY), driven by strong growth in Italy and France.

• Factoring & Lending PBT rose 21% YoY to €82.3 million, with volumes up 10% YoY; Securities Services PBT increased 43% YoY.

• Transaction Services deposits grew by €1.7 billion (+31% YoY), supporting ample liquidity and a loan-to-deposit ratio of 67%.

• Past due portfolio reduced by 10% in six months, with significant legal actions and ECHR appeals underway on NPLs.

• Renewed ICT contract with Nexi until 2032, enhancing strategic flexibility and infrastructure control.

Financial highlights

• Total revenues for H1 2025 were €347.7 million; adjusted net income was €75.3 million (+6% YoY); cost/income ratio rose to 48%.

• Loan book at €5.9 billion (+5% YoY); off-balance sheet reserves at €561 million (+€93 million YoY); HTC bond portfolio mark-to-market at €47.7 million (+€124 million YoY).

• Cost of funding decreased 26% YoY to €149.2 million; operating expenses up 4% YoY, mainly due to IT investments.

• Reported net profit was €70.4 million, down from €161.8 million in H1 2024 due to non-recurring items.

• Total assets as of 30 June 2025 were €13.2 billion, up 9% YoY.

Outlook and guidance

• Management expects acceleration in past due collections in H2 2025, with a traditionally stronger Q4 anticipated.

• Full-year adjusted net profit is trending in line with business plan targets; consensus estimates of €175–180 million considered reasonable.

• Strategic plan targets delayed by about one year; profit for 2026 expected at €240 million, ROTE above 40%, and cumulative dividends above €560 million for 2023-2026, assuming removal of regulatory restrictions.

• Launch of online term deposits in Greece from July 2025, expanding deposit gathering to a new market.

• Eurozone statutory Late Payment Interest rate decreased from 11.15% to 10.15% from July 2025, following ECB rate cuts.