Press releases

06 Aug 2020 11:14
BFF BANKING GROUP 1H 2020 CONSOLIDATED FINANCIAL RESULTS
Today the Board of Directors of Banca Farmafactoring S.p.A. approved the 1H 2020 consolidated financial statements.

Highlights:

  • Confirmed the intention to distribute the €70.9m of 2019 Dividend as soon as the regulatory conditions are met, not earlier than 1st January 2021
  • COVID-19 pandemic: no significant negative impacts for BFF, besides lower LPIs over-recoveries
  • Flat Adjusted Net Income at €40.2m, with 30% of Adjusted RoTE, and -€3.3m y/y of net LPIs over-recovery[1]
  • Stock of unrecognized off-balance sheet LPIs increased by €23m y/y to €414m, +€6m in the quarter
  • Net Customer Loans up 10% y/y, despite Governments’ cash injections, at €3.8bn, of which 39% outside Italy up from 34% at the end of Jun-19
  • Volume grew by 29% y/y at €2.5bn, with Italy and Spain +3% and +132% y/y
  • Available funding increased by +16% y/y at €4.1bn, with €0.7bn undrawn credit lines, +66% y/y, providing higher flexibility to absorb higher loans’ growth
  • Sound liquidity ratios with LCR at 520% and NSFR at 108% (138% fully phased-in)
  • Total Capital and CET1 ratios[2] at 15.7% and 11.5% - excluding both €70.9m of 2019 Dividend and €37.5m of 1H20 Reported Net Income - well above SREP requirements: €108m of dividend capacity
  • Strong reduction in net NPLs (-37% y/y and -25% vs. YE19, excluding Italian municipalities in conservatorship), with the Net NPLs/Loans ratio down to 0.1%
  • Annualised Cost of Risk at 12bps, 9bps excluding the SME factoring business in run-off: due to impact on IFRS 9 of COVID-19 on the macroeconomic scenario

 

Milan, 6th August 2020 – Today the Board of Directors of Banca Farmafactoring S.p.A. (BFF) approved the first half-year 2020 consolidated financial statements. All the 1H 2020 figures (both adjusted and reported) include for the entire period IOS Finance, merged on 31/12/2019, while it is excluded from 1H 2019 figures.

 

[1] LPIs over-recovery vs. 45% minimum recovery rate assumed for accounting purpose, net of the re-scheduling impact. Re-scheduling impact: for receivables not collected within the expected maximum collection date, interest income is reduced by the amount of yield required to keep the IRR of the portfolio constant until the new expected collection date. In particular, the value of the credit on the balance sheet is re-calculated using the new expected cash-flow schedule and the negative delta in value is booked in the P&L to maintain the original IRR.

[2] Calculated on the Banking Group perimeter (pursuant to TUB – Testo Unico Bancario).