Press releases

10 Feb 2021 11:03
BFF BANKING GROUP FY 2020 CONSOLIDATED FINANCIAL RESULTS
  • Solid financial results, in line with previous quarters’ trends
    • FY20 Adjusted net income at €97.6m, -1% y/y (+7% y/y excl. net LPIs over-recoveries[1])
    • New business volume at €5.8bn (+9% y/y)
    • Flat customer loans portfolio, due to faster collection. Outperformance vs. Italian factoring market. 43% outside Italy up from 41% at the end of 2019
    • Increased stock of unrecognized off-balance sheet LPIs at €406m
    • Available funding at €4.2bn, with €0.6bn undrawn credit lines
    • Low risk profile, with net NPLs -34% y/y, 8bps Cost of Risk, and increased Coverage ratio at 84%. Negligible amount of credit holidays: €3.0m, 0.07% of Customer Loans as of 31/12/2020
    • Strong capital position (CET1 ratio 15.5% and Total Capital ratio 21.6%), with €107m excess capital above 15% TC ratio target. CET1 ratio of 26.0% including accrued dividends
  • c. €169m of 2019 & 2020 accrued dividends, ready to be paid and not included in capital ratios. Waiting for Bank of Italy clarifications as of timing
  • Implemented the “New DoD” prescriptions: positive impact on CET1 and Total Capital ratios of 4.5% and 6.6%, after alignment with the risk-weightings already used by competitors
  • DEPObank: closing and merger expected in 1Q 2021. The new combined entity will be presented to financial community soon after closing
  • ESG: strong commitment towards responsible and sustainable growth, and alignment to public companies’ governance best practices. 2nd Non-Financial Disclosure to be published with Annual Reports.

 

 

Milan, 10th February 2021.

Today the Board of Directors of Banca Farmafactoring S.p.A. approved the FY 2020 consolidated financial accounts.

Mr. Massimiliano Belingheri, Group CEO, commented: “In a challenging year for our societies and economies, BFF team continued to execute well. We have been able to achieve good profitability, strong relationship with customers, and growth in volume, excellent credit quality, and good cost discipline. On the less positive side, the high public sector liquidity accelerated payments and reduced customers’ interest in selling receivables, and Public Administration working remotely impacted late payment interests’ collections, particularly from NHS. We expect that the integration with DEPObank, and the more efficient capital structure, will provide us more opportunities to grow the business.

 

[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.