Press releases

10 Nov 2020 11:11
BFF BANKING GROUP 9M 2020 CONSOLIDATED FINANCIAL RESULTS

Highlights:

  • COVID-19 impact: (i) as in first half, lower net LPI over-recoveries and (ii) liquidity injected by governments has driven acceleration in collection of newest invoices, impacting portfolio growth
  • Stable Adjusted Net Income, +10% y/y adjusted net income net of LPIs over-recoveries[1]
  • New business volume up by 25% y/y at €3.8bn
  • Customer Loans portfolio up +3% y/y at €3.7bn, with strong overperformance vs. the market. 39% outside Italy up from 37% at the end of Sep-19
  • Higher deferred earnings: increased stock of unrecognized off-balance sheet LPIs at €423m, €22m y/y (+6%)
  • Ample funding available: up +15% y/y at €4.1bn, with €0.9bn undrawn credit lines
  • Net NPLs excluding Italian municipalities down 25% y/y and 81% coverage, with 10bps Cost of Risk
  • Strong capital position and c. €127m of dividend capacity. Total Capital and CET1 ratios[2] at 16.5% and 12.0%, net of dividend capacity
  • 2019 Dividend ready to be paid out as soon as regulators allow, from 1st January 2021
  • DEPObank: waiting for Bank of Italy and ECB clearance. Closing and Merger expected in 1Q 2021

 

Milan, 10th November 2020. Today the Board of Directors of Banca Farmafactoring S.p.A. approved the 9M 2020 consolidated financial accounts.

 

[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.

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