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BFF Bank S p A : approves the Parent Company draft Annual Report and the consolidated Financial Statements as of 31st December 2025
BFF Bank S p A : approves the Parent Company draft Annual Report and the consolidated Financial Statements as of 31st December
About this update from Bff Bank Spa
PRESS RELEASE BFF approves the Parent Company draft Annual Report and the consolidated Financial Statements as of 31 st December 2025 Approved the consolidated Financial Statements as of 31 st December 2025, with Adjusted Net Profit of €139.1m and Reported Net Profit of €37.0m Included in the consolidated Financial Statements as of 31 st December 2025 changes compared to the financial accounts disclosed on 10 th February 2026, reflecting the effect of the initiatives adopted following the Bank of Italy Regulatory Measure announced on 29 th March 2026 Submitted to the Regulator a capital conservation plan. Updated 2026 financial targets, with Adjusted Net Profit of €115-140m First quarter 2026 financial results on 11 th May and Ordinary Shareholders' Meeting on 16 th June Milan, 30 th April 2026 - The Board of Directors of BFF Bank S.p.A. (" BFF ", the " Bank ", the " Company " or the " Group "), during today's meeting, approved the Parent Company's draft Annual Report and the consolidated Financial Statements as of 31 st December 2025, which includes an update on the restatement of 2024 accounts 1 . The meeting was held in the presence of the Commissioners, Prof. Avv. Raffaele Lener and Mr. Francesco Fioretto, appointed by the Bank of Italy (the "Regulator" or the "Supervisory Authority"), pursuant to Article 75bis of the TUB, in the context of the Regulatory Measure (the "Regulatory Measure") announced on 29 th March 2026. The Parent Company's draft Annual Report and the consolidated Financial Statements as of 31 st December 2025 include changes compared to the consolidated financial accounts approved on 10 th February 2026 2 and take into consideration the effects of the initiatives adopted following the Regulatory Measure. On a consolidated basis, BFF closed the 2025 financial year with a Reported Net Profit of €37.0m, compared with €70.2m previously. 1 2024 figures restated in accordance with IAS8 (Accounting Policies, Changes in Accounting Estimates and Errors) due to error correction. 2 For further details please refer to the related press release ( link ). In line with the above, this press release outlines the main changes between the consolidated financial accounts, disclosed on 10 th February 2026, and the consolidated Financial Statements approved today (please see paragraph " Main changes compared to the preliminary 2025 financial results disclosed on 10 th February 2026 "). The updated consolidated financial accounts are included at the end of this press release. Key figures from the consolidated Financial Statements and of the Parent Company's draft Annual Report as of 31 st December 2025 Below follows the main profit and loss and balance sheet items as of 31 st December 2025, including information on asset quality and capital position, as approved by the Bank's Board of Directors during today's meeting. Consolidated Profit and Loss FY 2025 Adjusted Total Revenues at €678.7m ( -14% YoY), of which €390.7m came from Factoring, Lending & Credit Management ("F&L") , €69.6m from Payments , €27.4m from Securities Services and €190.9m from the Corporate Center 3 . Conversely, FY 2025 Cost of Funding of €273.3m ( -30% YoY). Adjusted Net Revenues at €405.3m (+1% YoY). FY 2025 Total Adjusted Operating Expenses including D&A, at €194.8m vs. €190.7m in FY 2024. Adjusted LLPs and Provisions for Risks and Charges at €22.3m vs. €9.3m in FY 2024. Overall Adjusted Profit Before Taxes ("PBT") of €188.2m ( -6% YoY), with F&L down 10% YoY, Payments down 5% YoY, Securities Services up 90% YoY and Corporate Center up 28% YoY. FY 2025 Adjusted Net Profit stands at €139.1m , -3% YoY and FY 2025 Reported Net Profit 4 at €37.0m down 83% YoY. The year-on-year change is primarily attributable to the different impact of non-recurring items in the two periods. In particular, 2025 was affected by the negative one-offs announced by the Bank on 2 nd February 2026 5 and today, whereas 2024 had benefited from positive one-offs mainly resulting from the increase to 65% (from 50%) of Late Payment 3 Including €10.5m of capital gains realised in 3Q 2025 from the roll-over of floaters Government bond portfolio with stable yield vs. June 2025. 4 Reported Net Profit includes: the negative impact of the following items: -€71.9m post tax, -€104.1m pre tax, related to loan loss provisions and provisions for risk and charges; -€15.4m post tax, -€22.4m pre tax, related to LPIs longer estimated collection days; -€5.5m post tax, -€7.9m pre tax, related to Stock Options & Stock Grant plans; -€1.8m post tax, -€2.7m pre tax, related to Customer contract amortization; -€1.5m post tax, -€1.5m pre tax, related to the Bank of Italy administrative pecuniary sanction; -€6.0m post tax, -€7.5m pre tax, of other non-recurring items. 5 For further details please refer to the related press release ( link ). Interests and recovery fees accrual rate. Consolidated Balance Sheet As of 31 st December 2025, consolidated Total Assets at €12.3bn up by €0.1bn ( +1% vs. the end of December 2024). It should be noted that Italian Government bonds represent 37% of BFF's total assets. Loan Book at €5,821m 6 , -1% YoY, and Volumes at €8,900m , up 5% YoY. At the end of December 2025, Government bond portfolio entirely classified as Held to Collect or "HTC" at €4.5bn vs. €4.6bn at the end of December 2024. Positive mark-to-market at €70.9m , of which €95m related to floaters. On the Liabilities side, the main changes vs. end of December 2024 are the following: Deposits from Transaction Services at €6.6bn, up by €0.8bn or +15% YoY; Repos (refinancing operations related to Italian Government Portfolio) up by 50% YoY at €2.3bn at the end of December 2025 vs. €1.6bn at end of December 2024; On-line retail deposits reduced in line with plan at €1.3bn vs. €2.8bn in December 2024, benefiting from the good performance of Transaction Service Deposits; Social unsecured senior preferred bonds at €620m at the end of December 2025 vs. €610m at the end of December 2024; BFF does not have European Central Bank "ECB" funding to be refinanced (PELTRO, TLTRO, etc.). FY 2025 Liquidity Coverage Ratio (LCR) at 177.8% and Net Stable Funding Ratio (NSFR) at 113.6%. Leverage ratio as of 31 st December 2025 at 6.1% , vs. 6.3% at the end of December 2024. Asset Quality The Group continues to benefit from very low exposure to the private sector. FY 2025 Net Non-Performing Loans ("NPLs"), excluding Italian Municipalities in conservatorship (" in dissesto "), stand at €6.8m . Italian Municipalities in conservatorship are classified as NPLs in line with Bank of Italy provisions, despite BFF's entitlement to receive 100% of the principal and Late Payment Interests at the end of the conservatorship process. 6 Loan Book portfolio includes fiscal receivables "Ecobonus" for €428m, which are accounted in "Other Asset" in the FY 2025 Consolidated Financial Accounts and the stock of on-balance sheet Late Payment Interests and recovery fees at €789m. FY 2025 Cost of Risk - excluding one offs related to loan loss provisions - stands at 23.7 basis points . FY 2025 Net Impaired Assets (non-performing, unlikely to pay and past due) stand at €3,124m as of 31 st December 2025, vs. €1,888m at YE 2024. As of the end of December 2025, 96 % of NPE exposure is towards Public Administration. At the end of December 2025, following the reclassification, net Past Due amounts to €2,955m , vs. €1,720m at YE 2024. In line with the disclosure provided in previous years' financial statements, the classification of non-performing exposures is based on the definition of default for prudential purposes (i.e. non-performing, unlikely to pay and past due), regardless of the representation of any related credit risk. With specific reference to public sector entities classified as impaired as a result of delayed payments, significant misalignments among accounting data, prudential metrics and the Bank's actual recovery expectations may therefore emerge. Capital ratios The Bank Common Equity Tier 1 ("CET1") ratio stood at 9.94% vs. a SREP of 9.80% (including Capital Reserves) 7 . The Total Capital ratio ("TCR") stood at 12.31% vs. a SREP 8 of 13.30%. CET1 ratio and TCR include FY 2025 Net Profit. With reference to MREL requirements, the TREA ratio stands at 22.07% compared to the regulatory requirement of 20%; the ratio is 123bps lower also taking into account the additional Capital Reserves9 to be maintained (overall level of 23.30%). The LRE ratio stands at 10.92%, well above the regulatory requirement of 5.40%. As of the end of December 2025, Risk Weighted Assets ("RWAs") - based on Basel Standard model - stand at €6.4bn , vs. €5.2bn at YE 2024. RWAs density 10 stands at 84% vs. c. 70% at YE 2024. In light of the above, BFF's Board of Directors has submitted to the Regulator a capital conservation plan - for prudential supervision and MREL purposes - and activated its Recovery Plan to ensure stronger oversight and greater effectiveness of the Bank's remedial actions. For further information on the capital conservation plan, please refer to the section " Going concern and capital conservation plan ". 7 These Reserves include: the Capital Conservation Buffer, the Countercyclical Capital Buffer and the Systemic Risk Buffer. 8 Please refer to footnote 7. 9 Please refer to footnote 7 . 10 Calculated as RWAs/Total assets excluding HTC bond portfolio and Cash and Cash Balances. Allocation of the Parent Company's Net Profit The Parent Company closed the 2025 financial year with a Reported Net Profit of €27.6m, compared with €163.9m recorded in 202411. The approval of the Parent Company's draft Annual Report includes the proposal to submit for approval to the Ordinary Shareholders' Meeting (the " Shareholders' Meeting "), called on 16 th June 2026, in a single call: the Annual Report as of 31 st December 2025; the proposal to allocate to the "Legal Reserve" €78,693; the proposal to allocate to the "Retained Earnings Reserve" €27,536,210. Furthermore, the Management Report includes BFF's consolidated non-financial Report related to 2025 ESG data pursuant to the Legislative Decree n° 125 as of 10 th September 2024. *** The Financial Reporting Officer, Mr. Giuseppe Manno, declares, pursuant to paragraph 2 of article 154- bis of the Consolidated Law on Finance (Legislative Decree n° 58/1998 and subsequent amendments, " Testo Unico della Finanza "), that the accounting information of this press release corresponds to the document results, accounting books and records of the Bank. *** Going concern and capital conservation plan The assessment of the going concern assumption takes into account the breaches either of the Total Capital Ratio with respect to the Overall Capital Requirements and of the Capital Reserves to be held in addition to the MREL TREA requirement as of 31 st December 2025. Based on expected projections, no capital shortfalls below SREP requirements are expected in 2026 and 2027, even in the absence of external initiatives. For 2028, however, a potential capital shortfall is anticipated if no external actions are taken, mainly due to the phased application of calendar provisioning to exposures classified as past due as of 31 st December 2025. To mitigate the risks mentioned above for 2028, specific recovery measures and alternative scenarios have therefore been prepared also with the support of leading advisors. In particular, the Bank is assessing certain actions aimed at enhancing the value of specific portfolios (e.g. 11 2024 figures restated in accordance with IAS8 (Accounting Policies, Changes in Accounting Estimates and Errors) due to error correction.