BFF Bank (BFF) Q1 2025 earnings summary

Executive summary

• Adjusted net profit for 1Q25 was €35.0m, down 16% year-over-year, but in line with expectations despite high rescheduling in the factoring portfolio.

• Factoring & Lending profit before tax rose 9% YoY, with the loan book at €5.8bn (+5% YoY); Italy saw double-digit growth above 10%.

• Group achieved record first-quarter volumes, with strong momentum in factoring, lending, and off-balance sheet reserves up €81m since June 2024.

• Deposits at €8.5bn, loan-to-deposit ratio at 68%, and CET1 ratio improved to 13.7%, exceeding the 12% target.

• Total past due reduced by €87m (-5%) vs. Dec-24; contagion invoices down €25m (-7%) in 1Q25.

Financial highlights

• Adjusted net profit: €35.0m in 1Q25 vs. €41.5m in 1Q24 (-16% YoY); total net revenues: €175.4m in 1Q25, down 13% YoY, impacted by €12m rescheduling.

• Factoring and lending profitability improved, with F&L PBT up 9% YoY; group PBT at €48.1m in 1Q25.

• Cost of funding reduced by over €20m YoY, despite €7m in MREL issuance costs; cost of funding at 3.04%.

• Gross yield on average loans: 6.6% in 1Q25 vs. 7.5% in 1Q24; adjusted operating expenses rose to €46.1m.

• LCR at 260.5%, NSFR at 140.0%, and leverage ratio at 6.4% (up from 4.8% in 1Q24).

Outlook and guidance

• Guidance for 2026 and current year confirmed, with management confident in meeting growth targets.

• Deposit gathering in Greece expected to be fully operational from June 2025.

• Dividend policy confirmed at 12%, pending Bank of Italy approval and lifting of regulatory restrictions.

• Expectation of continued reduction in past due and contagion invoices, with positive outlook for RWA density and capital efficiency.

• Ongoing appeals to the European Court of Human Rights regarding state support on exposures.