BFF Bank (BFF) Investor update summary

Leadership and governance changes

• CEO steps down after 12 years, remains on the board as non-executive member; new General Manager appointed with full powers.

• Management team is working on a new strategic plan, with further strengthening expected, including a new CFO.

Factoring portfolio review and de-risking actions

• Comprehensive internal review of the factoring portfolio led to decisive de-risking actions, including a €95 million one-off pre-tax charge in 2025 and a reduction in non-performing exposures.

• €72.2 million provision for negative court rulings on Italian public sector receivables, mostly under appeal.

• Review identified operational errors in cash allocations totaling €54 million, resulting in a €14 million reduction in 2024 bank equity.

• Provisions cover about €400 million of receivables, with a conservative approach to future negative court rulings.

• €22.4 million provision for increased estimated collection time of late payment interests.

Financial guidance and targets

• 2025 Adjusted Net Income is expected at €150 million (up 5% YoY), with Adjusted ROE at 23% and CET1 ratio between 13.2% and 13.7%.

• 2025 Reported Net Income is projected at €70 million, reflecting the impact of one-off charges.

• 2026 Adjusted Net Income target revised to €160 million (from €240 million), EPS to €0.8 (from €1.3), cost/income ratio to below 50% (from below 40%), and ROTE to 24% (from over 40%).

• Guidance revision reflects more conservative assumptions, portfolio clean-up, and ongoing legal and operational adjustments.

• Business remains structurally solid, profitable, and positioned for continued earnings growth and capital generation.