BFF Bank (BFF) Q3 2024 earnings summary

Executive summary

• Reported net profit for 9M24 reached €189.9m, up 65% year-over-year; adjusted net profit was €103.2m, down 4% YoY excluding a 1Q23 capital gain.

• Business repositioned post-Bank of Italy inspection to drive factoring volume growth and reduce Past Due exposure, with strengthened commercial, credit management, and legal teams across Italy, Spain, Portugal, and Poland.

• Major €700m factoring contract won in Italy and over 500 injunctions filed, covering about a third of Past Due exposure.

• Loan book at €5.4bn (+1% YoY), with strong growth in Spain, Greece, and Poland, offsetting challenges in Italy.

• Solid capital and liquidity position, with CET1 at 12.3% and TCR at 15.2%.

Financial highlights

• Adjusted total revenues up 12% YoY (excluding 1Q23 capital gain); adjusted net revenues up 4% YoY.

• Loan book at €5.4bn (+1% YoY); bond portfolio reduced by 5% YoY to €5.0bn.

• Deposits at €8.0bn (+7% YoY); loan/deposit ratio improved to 68%.

• Leverage ratio at 6.4%; off-balance sheet reserves at €504m (+€37m vs. Jun-24).

• Cost of funding at 3.72%, below market average.

Outlook and guidance

• Focus for Q4 is on maximizing over-recoveries, LPI collections, and preparing for 2025 growth, with 10%+ customer loan growth targeted.

• No P&L impact from Italian budget law; earlier cash tax payments in 2025-2026 to be recovered later.

• Dividend policy confirmed, subject to regulatory approval; Q4 expected to be strong in over-recoveries, but dependent on transaction timing.

• Eurozone Late Payment Interest statutory rate to decrease from 12.25% to 11.40% from 1-Jan-25.