BFF Bank De-risks Portfolio, Revises Financial Targets

Key De-Risking Actions and Financial Revisions

BFF Bank SpA (BFF) has announced significant de-risking measures for its factoring portfolio, resulting in a revision of its financial targets for 2025 and 2026. The bank anticipates a pre-tax impact of approximately €95 million for 2025 from these actions.

Updated Financial Outlook

Following the de-risking, the bank has updated its financial projections. For 2025, BFF now targets an adjusted net income of around €150 million and an adjusted return on equity of 23%. The CET1 ratio is expected to be between 13.2% and 13.7%, with a reported net income of around €70 million including one-off items.

Long-Term Strategy and Market Impact

Looking further ahead, the bank forecasts an adjusted net income of approximately €160 million for 2026. These changes precede the unveiling of a new strategic plan, scheduled for the second half of 2026, which will outline the bank's future direction and likely influence investor sentiment.

Summary

The de-risking strategy signals a shift towards a more conservative portfolio management approach for BFF Bank. While this involves a short-term financial impact, the revised targets indicate a recalibrated path for sustained profitability and capital strength, a key factor for market evaluation.

FAQ

Q: What is the estimated financial impact of BFF Bank's de-risking?
A: The estimated pre-tax impact is €95 million for the year 2025.

Q: What is the new adjusted net income target for 2026?
A: BFF Bank forecasts an adjusted net income of approximately €160 million for 2026.

Source: Investing.com