BFF Bank (BFF) investor relations material

Executive summary

• Adjusted net income for 1Q 2026 rose 24% year-on-year to EUR 43.2 million, with reported net income at EUR 49.5 million, up 40% year-on-year.

• Adjusted Profit Before Taxes (PBT) was EUR 62.3 million, a 29% increase year-on-year, driven by Payments, Securities Services, and improved profitability in Factoring and Lending.

• All divisions contributed to profitability, supported by a diversified business model and focus on profitability over volume growth.

• CET1 and total capital ratios now meet regulatory requirements, with ongoing strategic review and Bank of Italy inspection.

• New strategic plan to be unveiled in the second half of the year.

Financial highlights

• Net income for Q1 2026 was EUR 43.2 million, up 24% year-on-year; reported net income was EUR 49.5 million, up 40% year-on-year.

• Net banking income rose to EUR 103.4 million from EUR 86.6 million year-on-year.

• Payments and Securities Services generated EUR 14 million in PBT, up 25% year-on-year.

• Cost-income ratio improved to 42%, significantly down year-on-year despite higher costs and investments.

• Realized gains on the variable rate portfolio reached EUR 60 million, not included in capital projections.

Outlook and guidance

• 2026 financial targets revised, with adjusted net income for the year expected between EUR 115 million and EUR 140 million.

• Focus remains on profitability and quality of volumes, with further reduction in loans expected over the next quarters.

• Strategic options under review to optimize the business model and reduce RWA density.

• New strategy to be presented in the second half of the year.