Business
BFF Bank S p A : Banking Group announces consolidated financial results for the full year 2025
BFF Bank S p A : Banking Group announces consolidated financial results for the full year
About this update from Bff Bank Spa
PRESS RELEASE BFF Banking Group announces consolidated financial results for the full year 2025 FY 2025 Adj. Net Profit at €151.7m (+6% YoY). Adj. ROE 1 at c. 23%. Reported Net Profit at €70.2m 2 . Loan book at €5.8bn (stable YoY) and Volumes at €8.9bn (+5% YoY). Loan/Deposit ratio at 75%, with Deposits from Transaction Services up €0.8bn (+15%) YoY. HTC floaters Government bond portfolio mark-to-market at +€95m. Net NPLs/Loans ratio at 0.2% excluding Italian municipalities in conservatorship. Past due at €1.6bn, down 7% vs. December 2024. Contaging invoices at €269m, down €75m YoY. CET1 ratio at 14.1% above internal target, also including de-risking actions, and TCR at 17.3%. Milan, 10 th February 2026 - Today the Board of Directors of BFF Bank S.p.A. (" BFF ", the " Bank ", the " Company " or the " Group ") approved BFF's 2025 consolidated financial accounts and restatement of 2024 accounts 3 . Giuseppe Sica, General Manager of BFF, commented : "In 2025, BFF achieved a 20%+ Adjusted ROE, and demonstrated its ability to generate capital while taking significant actions to support future growth. Our business benefits from complementary activities and from geographical diversification. In 2025, we saw a positive performance in growing markets such as France and Poland and a strong contribution of our Transaction Services business. 1 Adj. Net Income / CET1. 2 Please see paragraph "Consolidated Profit and Loss" . 3 Please see the press release published on 2 nd February 2026. As we prepare for BFF's next Strategic Cycle, we launched decisive actions to de-risk our factoring portfolio and improve the predictability of future profitability. I would like to thank all colleagues for their contributions and commitment, and I am delighted to take the lead as General Manager as we focus on delivering our financial targets for 2026 and developing our new Strategic Plan which we will present in the second half of this year." *** 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 4 . FY 2025 Cost of Funding is equal to €273.3m ( -30% YoY), benefitting from the decrease in interest rates. 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. The impact of 2025 variable remuneration was accounted for in 4Q 2025. Adjusted LLPs and Provisions for Risks and Charges at €5.8m vs. €9.3m in FY 2024. Overall Adjusted Profit Before Taxes ("PBT") of €204.7m ( +2% YoY), with F&L up 1% YoY, Payments down 5% YoY, Securities Services up 90% YoY and Corporate Center up 28% YoY. FY 2025 Adjusted Net Profit stands at €151.7m , +6% YoY and FY 2025 Reported Net Profit 5 at €70.2m down 67% YoY, due to 2024 benefitting from a positive one-off related to Late Payment Interests ("LPIs") accrual rate step up, while 2025 was affected by negative one-offs of €67m related to de-risking actions (please see also note 3). 4 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. 5 Reported Net Profit includes: the negative impact of adjustments accounted on the following items: -€51.3m post tax, -€75.4pre tax, related to provisions on negative court rulings; -€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. With regard to the business units' KPIs and adjusted Profit & Loss data, please refer to the "FY 2025 Results " presentation published in the Investor > Results > Financial Results section of BFF Group's website. Please note that the Corporate Center comprises all the revenues and costs not directly allocated to the three core business units ( Factoring, Lending & Credit Management , Payments and Securities Services ). 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). The Loan Book was €5,844m 6 , flat 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" was 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, allowed by 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.). Strong liquidity position, with FY 2025 Liquidity Coverage Ratio (LCR) at 195.2% and Net Stable Funding Ratio (NSFR) at 132.8%. Leverage ratio as of 31 st December 2025 at 6.4% , vs. 6.3% at the end of December 2024. *** 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 LPIs and "Recovery Fees" at €789m. 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 €10.7m , or 0.2% of net loans, with a 69% Coverage ratio , vs. 70% at YE 2024. 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 LPIs at the end of the conservatorship process. In addition, rulings published by the European Court of Human Rights ("ECHR") in January 20257, require the Italian State to ensure the enforcement of rulings against these municipalities even before the end of the conservatorship process. In May 2025, the Bank received positive outcomes from ECHR rulings on three municipalities in conservatorship - in addition to one received in January 2025. FY 2025 Cost of Risk - excluding one offs (please see note 3) - stands at 11.0 basis points . FY 2025 Net Impaired Assets (non-performing, unlikely to pay and past due) stand at €1,765m as of 31 st December 2025, vs. €1,904m at YE 2024 following the credit reclassification for prudential purposes requested by Bank of Italy 8 . As of the end of December 2025, 97 % of NPE exposure is towards Public Administration. Additionally, the Bank has €188m exposures in cure period as of 31 st December 2025. Past Due At the end of December 2025, net Past Due amounted to €1,606m , vs. €1,734m at YE 2024 post-credit reclassification (please refer to footnote 8), notwithstanding €636m new net volumes bought from debtors in past due. 54% of the loans classified past due as of December 2024 has either been collected or exited from past due. Contaging invoices from reclassification as of 30 th June 2024 at €269m , down by €75m ( -22% ) in FY 2025 - by €155m ( -37% ) since June 2024 credit reclassification. *** 7 For further details on the recent ruling published in Jan-25 by the European Court of Human Rights, please see the dedicated paragraph in the section " Significant events after the end FY24 reporting period " in FY24 Press release on consolidated financial results . 8 Please see paragraph " Loan portfolio reclassification for prudential purposes " in 1H24 Press release on consolidated financial results . Negative court rulings With respect to the actions announced on 2 nd February 2026 (please see also note 3), the provisions on negative court rulings are related to c. €400m9 of Italian public sector receivables - c. 5% of the entire loan book on a book value basis - and followed a review of the entire Italian portfolio of negative court rulings. These latter are mostly related to legal claims under ordinary legal action procedure. In particular, provisions reflect possible lower profitability on the negative court rulings portfolio mainly due to a) the differential between LPI rate and retrocession rate to clients; b) longer average length for completion of claims following Italian ordinary legal actions compared to injunctions. The approach to provisions is based on a ruling-by-ruling analysis, without considering effects of out-of-court transactions and positive rulings (as below). BFF returned to use of injunctions in 2024, with reasonably faster resolution times expected. Conversely, the Bank has c. €53m of off-balance revenues - Late Payment Interests ("LPIs"), Recovery Fees and anatocism - accounted when collected related to final positive court rulings on credit exposures towards the Italian public sector. Restatement of 2024 accounts As announced on 2 nd February 2026 (please see also note 3), BFF identified incorrect allocations of collections in the factoring business relating to the period up to June 2023, amounting to approximately €54m (equal to about 0.2% of the collections recorded in the period). The identification of this error resulted from an internal review undertaken at the initiative of the Factoring & Lending department and led to a restatement of the 2024 financial statements, with an overall cumulative reduction in shareholders' equity as of 31 st December 2024 of approximately €15.1m. Capital ratios The Bank Common Equity Tier 1 ("CET1") ratio stood at 14.1% vs. a SREP 10 of 9.7% . The Total Capital ratio ("TCR") stood at 17.3% vs. a SREP 11 of 13.2%. CET1 ratio and TCR include FY 2025 Net Profit. 9 Nominal value including 100% of LPIs and Recovery Fees. 10 The SREP requirement includes Capital Conservation Buffer, Countercyclical Capital Buffer and Systemic Risk Buffer. 11 Please refer to footnote 10.