Press releases

08 May 2020 11:17
BFF BANKING GROUP 1Q 2020 CONSOLIDATED FINANCIAL RESULTS
Today the Board of Directors of Banca Farmafactoring S.p.A. approved the 1Q 2020 consolidated financial accounts.

Highlights:

  • Confirmed the intention to distribute the €70.9m of 2019 Expected Cash Dividend (equivalent to €0.415 DPS) as soon as the regulators allow. One of the few banks that did not change its dividend policy. Additional €23m free capital generated in the quarter
  • €23.1m Reported Net Income (€20.8m of Adjusted Net Income), with 31% of Adjusted RoTE and -€3.6m of net LPIs over-recovery[1]
  • The stock of unrecognized off-balance sheet LPIs increased by €31m y/y to €408m
  • Net Customer Loans up by 8% y/y at €3.7bn, of which 37% outside Italy vs. 34% at the end of Mar-19
  • New business grew by 30% y/y at €1.2bn, with Italy and Spain up by 8% and 107% y/y
  • Available funding increased by 22% y/y at €4.0bn. Increased available undrawn credit lines to €0.7bn (+115% y/y), which provides higher flexibility to absorb a higher loan growth or longer collections times
  • Sound liquidity ratios, with LCR at 326.3% and NSFR at 110.3% at the end of Mar-20 (140.1% fully phased in)
  • Total Capital and CET1 ratios[2] at 15.3% and 11.2% - excluding both €70.9m of 2019 Expected Cash Dividend and €23.1m of Reported Net Income for 1Q20 - well above SREP requirements
  • Strong reduction in net NPLs (-45% y/y and -14% vs. YE19, excluding Italian municipalities in conservatorship), with the Net NPLs/Loans ratio down to 0.1%
  • Annualised Cost of Risk at 4bps, 2bps excluding the SME factoring business in run-off
  • COVID-19 emergency: fully operational since the beginning of the lockdown. No need to benefit from any emergency aids made available. Good client pipeline and collections volume. LPIs collection potentially effected by PA and courts lockdown

 

Milan, 8th May 2020 – Today the Board of Directors of Banca Farmafactoring S.p.A. (BFF) approved the first quarter 2020 consolidated financial accounts. All the 1Q 2020 figures (both adjusted and reported) include for the entire period IOS Finance, merged on 31/12/2019, while it is excluded from 1Q 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).