BFF Bank SpA (LTS:0RON)

Q2 2026 BFF Bank SpA Earnings Call Transcript

Aug 5, 2026 / 04:30 PM GMT

Release Date Price: €3.07 (-0.13%)

Transcript

Key Points

Positve

Adjusted net profit grew 8% year-on-year in H1 2026, driven by resilient underlying business performance.
Payments and Security Services business performed well, with Security Services PBT up 15% year-on-year and 15 new funds onboarded.
Net exposure to negative court rulings decreased by 60% to EUR100 million from EUR243 million at year-end 2025.
Cost income ratio improved to 46% despite inflation and continued investment in transaction services.
Pro forma capital ratios remain above regulatory requirements, with organic capital generation of nearly 2 percentage points in six months.
New partnership with Revolut highlights ability to attract leading neobank and fintech players.
Cost of funding decreased significantly year-on-year, and spread improved by 21 basis points.
Collection performance strong: collected 95% of 2025 volumes and 70% of H1 2026 volumes, with over EUR2 billion collected in H1.
Diversified revenue mix: 64% of net revenues now from non-factoring activities, up from 58% a year ago.
Liquidity ratios improved, with NSFR strengthening and online deposits growing in Q2.

Negative

Calendar provisioning impact anticipated from Q3 to Q2, with a total impact of close to EUR150 million, a significant burden.
Factoring loans decreased 5% year-to-date, reflecting strategic deleveraging and reduced volumes.
Bank of Italy inspection report resulted in a nearly EUR30 million impact on performance.
Net impaired loans decreased only 6% in H1, with UTPs increasing due to reclassification of Polish public hospitals.
Cost of risk at 12 basis points is more than double compared to H1 2025, reflecting a more conservative provisioning approach.
Potential small capital breach in 2028 if no further actions are taken, as disclosed in the annual report.
Deposits in the depository bank declined due to the loss of one client, though this was anticipated.
Factoring and lending net interest income declined in Q2, impacted by lower loan book and negative court ruling exposure.
The bank is exploring strategic options, including securitization, which may create uncertainty for shareholders.
The repositioning of the HTC bond portfolio (sale of EUR30.1 billion) has a marginal impact on recurring profitability, though it was not in the baseline plan.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

BFF.MI - BFF Bank S.p.A.
Q2 2026 BFF Bank SpA Earnings Call
Aug 05, 2026 / 04:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon and welcome to BFF Banking Group first half 2026 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0.

After today's presentation, there will be the opportunity to ask questions.

To ask a question, you may press star then 1 on a touchtone phone.

To withdraw your question, please press then 2.

Please note this event is being recorded. I would like to turn the conference over to Caterina Della Mora, Head of Investor Relations, Giuseppe Sica Group CEO, and Luigi Luelli Group CFO. Please go ahead.

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