BFF Bank (BFF) Q2 2025 earnings summary

Executive summary

• Adjusted net profit for H1 2025 reached €75.3 million, up 6% year-over-year, with Q2 profit up 37% YoY and 15% QoQ, reflecting strong business momentum.

• Factoring & Lending PBT rose 21% YoY, with record-high loan book at €5.9bn (+5% YoY) and volumes up 10% YoY, driven by strong growth in Italy and France.

• Off-balance sheet reserves grew by €93 million YoY to €561 million, outpacing loan book growth and supporting future profitability.

• Past due portfolio reduced by 10% in six months, with significant legal actions and ECHR appeals underway to accelerate further reductions.

• Renewed ICT contract with Nexi until 2032, enhancing strategic flexibility and infrastructure control.

Financial highlights

• Adjusted net income for H1 2025 was €75.3 million, up 6% YoY; total revenues €347.7 million; Q2 adjusted net profit up 37% YoY.

• CET1 ratio at 14.3%, up from 11.9% in H1 2024, with €114 million excess capital over the 12% target and €226 million over SREP requirements.

• Loan book stands at €5.9 billion, up 5% YoY, with transaction services deposits up 31% YoY and loan-to-deposit ratio improved to 67%.

• Group OpEx and D&A up 4% YoY, mainly due to IT investments; cost/income ratio rose to 48%.

• Cost of risk at 4.6 basis points in H1 2025, in line with historical averages.

Outlook and guidance

• Management expects acceleration in past due collections in H2 2025, with a traditionally stronger Q4 anticipated.

• Full-year adjusted net profit is trending in line with business plan targets, with consensus estimates of €175–180 million considered reasonable.

• Dividend policy confirmed at 12% CET1 target, pending regulatory approval and removal of Bank of Italy restrictions.

• Deposit gathering in Greece fully operational from July 2025, expanding funding base.

• Eurozone statutory Late Payment Interest rate decreased from 11.15% to 10.15% from July 2025, following ECB rate cuts.