1 PRESS RELEASE
BFF announces consolidated financial results for 1H 202 6
• 1H 2026 Adj. Net Profit at € 81.3m (+8% YoY) .
• Reported Net Profit at € 51.4m1, up 3% YoY excl uding the €21m impact from Bank of Italy Inspection Report.
• Group Net Revenues2 up 9% YoY at € 216 .1m, supported by Transaction Services performance .
• Increasingly diversified Loan book at € 5.5bn ( -5% vs. YE 2025), with focus on profitability and strategic deleveraging .
• Loan/Deposit ratio stable at 75% with Deposits at € 7.3bn.
• 38% of total assets represented by Italian Government bonds .
• In 6 months, Net Impaired Loans down 6% and RWA down 9% .
• Pro-forma3 CET1 ratio at 11.1 % and TCR at 13.6 %, above regulatory requirements and up since YE 2025 .
• Strategic options under review to ensure ongoing respect of capital ratios.
Milan, 5th August 2026 – Today the Board of Directors of BFF Bank S.p.A. (“ BFF ”, the “ Bank ”, the “Company ” or the “ Group ”) approved BFF’s first half 202 6 Consolidated Financial Report .
The meeting was held in the presence of the Commissioners, Prof. Avv. Raffaele Lener and Mr.
Francesco Fioretto, appointed by the Bank of Italy, pursuant to Article 75bis of the TUB, in the context of the Regulatory Measure announced on 29th March 2026.
1 Please see paragraph “Consolidated Profit and Loss” .
2 Managerial data: includes releases of provisions partially offsetting associated lower revenues .
3 Pro-forma for the sale of HTC Bonds completed on 28 -Jul-26. It also includes the effect of EBA Q&A on Calendar provisioning ( link) published on 3 -Jul-26.
2 CONSOLIDATED PROFIT AND LOSS
As of 3 0th June 2026, net of Cost of Funding of €119.5m (-20% YoY), Adjusted Net Revenues4 at €216 .1m, +9% YoY, of whi ch €180 .0m from Factoring, Lending & Credit Management (“F&L”) , €18.3m from Securities Services, €34.3m from Payments , and €103.1m from Corporate Center5.
1H 2026 Total Adjusted Operating Expenses including D&A, at €99.6m vs. €94.7m in 1H 2025 .
Adjusted LLPs and Provisions for Risks and Charge s at €6.2m4 vs. €0.9m in 1H 2025 .
Overall Adjusted Profit Before Taxes (“PBT”) of €110.4m (+7% YoY), with F&L down 19% YoY , Payments down 2% YoY, Securities Services up 78% YoY and Corporate Center at €16.0m compared with a negative contribution of €3.2m in 1H 2025.
1H 2026 Adjusted Net Profit at €81.3m, +8% YoY , and 1H 2026 Reported Net Profit6 at €51.4m down 27% YoY but up 3% YoY excl uding €21m impact from Bank of Italy Inspection Report received in July.
CONSOLIDATED BALANCE SHEET
As of 30th June 202 6, consolidated Total Assets at €11.9bn, -10% YoY . Italian Government bonds represent 38% of BFF’s total assets.
Loan Book at €5,503m7, down 6% YoY , and Volumes8 at €3,501m, down 17% YoY .
At the end of June 202 6, Italian Government bond portfolio entirely classified as Held to Collect or “HTC” at €4.6bn stable vs. the end of June 202 5.
On the Liabilities side , the main changes vs. end of June 202 5 and end of December 2025 are the
following:
• Deposit s from Transaction Services at €5.9bn, down by €1.2bn YoY ( -17%) and by €0.6bn vs. the end of December 2025 ( -10%);
• Repos (refinancing operation s related to Italian Government Portfolio) at €2.4bn, up vs.
€1.9bn at the end of June 202 5 and vs. €2.3bn at the end of December 2025 . In addition, the
4 Managerial data: includes releases of provisions partially offsetting associated lower revenues .
5 Including € 6.9m and €7.6m of capital gains realised in 1Q 202 6 and 2Q 2026 from the roll -over of floaters Government bond portfolio , respectively .
6 Reported Net Profit includes the following non -recurring items:
• +€7.8m post tax, +€11.5m pre tax, related to Stock Options & Stock Grant plans;
• -€0.9m post tax, -€1.3m pre tax, related to Customer contract amortization;
• -€21.2m post tax, -€23.9m pre tax , related to the impact of Bank of Italy Inspection Report;
• -€3.6m post tax, -€5.4m pre tax, related to provisions on negative court rulings in foreign Countries (excl.
Italy) ;
• -€12.0m post tax, -€15.5m pre tax, of other non -recurring items.
7 Loan Book portfolio includes fiscal receivables “Ecobonus” for €308m, which are accounted in “Other Asset” in the 1H 2026 Consolidated Financial Accounts and the stock of on -balance sheet LPIs and “Recovery Fees ” at €739m.
8 Managerial data.
3 Group has €515m of reverse repos as of June 2026;
• On-line retail deposits at €1.4bn, down vs. € 1.6bn at the end of June 202 5 and up vs.
€1.3bn at the end of December 2025 ;
• Social unsecured senior preferred bond s at €606m, stable YoY and vs. end December
202 5;
• BFF holds no European Central Bank “ECB” funding to be refinanced (PELTRO, TLTRO, etc. ).
1H 2026 Liquidity Coverage Ratio (LCR) at 185.7% and Net Stable Funding Ratio (NSFR) at 120.4%, both up vs. end December 2025 .
Leverage ratio as at end June 202 6 at 6.1%, stable vs. at end June 202 5.
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Asset quality
The Group continues to benefit from low exposure to the private sector.
1H 2026 Net Im paired Assets (non -performing, unlikely to pay and past due) stand at €2,905 m, vs. €1,715m as at June 2025 and vs. €3,084 m as at December 2025. Net Impaired Assets are down 6% in the first six months of 2026 , while the year -on-year increase mainly reflects the impact of the reclassification following the Regulatory Measure received by the Bank of Italy on 28th March 20269 and the subsequent Inspection Report received on 14th July 202610.
Net Impaired Assets at c . 74%11 of the Loan Book while maintaining a negligible loss given default.
As of the end of June 2026, 94% of Net Impaired Assets exposure is towards Public Administration.
1H 2026 Cost of Risk stands at 11.9 basis points12.
1H 2026 Net Non -Performing Loans (“NPLs”), excluding Italian Municipalities in conservatorship (“in dissesto ”), stand at €6.0m, vs. €9.7m at 1H 2025 and vs. €6.8m at YE 2025 .
Italian Municipalities in conservatorship are classified as NPLs, despite BFF ’s entitle ment to receive 100% of the principal and LPIs at the end of the conservatorship process .
1H 2026 NPLs, including Italian Municipalities in conservatorship , stand at € 70.8m, vs. €93.8m at YE 2025 (-25%) .
9 Please refer to the Press Release of 29th March 2026 (link).
10 Please refer to the Press Release of 14th July 2026 (link).
11 Excluding Cassa di Compensazione Garanzia and Fiscal credits.
12 Managerial data: excludes releases of provisions partially offsetting associated lower revenues .
4 At the end of June 202 6, net Past Due amounts to €2,657m, vs. €1,542m at 1H 202 5 and vs.
€2,916m at YE 2025 . In 1H 2026, over € 2bn of past due exposure was collected13.
In line with the disclosure provided in previous years' financial statements, the classification of non -performing exposures is based on the definition of default for prudential purposes (i.e. non -
performing, unlikely to pay and past due), regardless of the representation of any related credit risk. With specific reference to public sector entities classified as impaired as a result of delayed payments, significant misalignments among accounting data, prudential metrics and the Bank’s actual recovery expectations may therefore emerge.
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Capital ratios
BFF Common Equity Tier 1 (“CET1”) ratio stands at 10.34% vs. a SREP of 9. 86% including Capital Reserves 14 and t he Total Capital ratio (“TCR”) at 12.93% vs. a SREP of 1 3.36%15. Both ratios include the Net Profit of the period.
CET1 and TCR pro -forma, adjusted for a €41m capital gain on the sale of Italian Government bond s in Jul-26, are respectively at 11.1 % and 13.6 %, both above SREP requirements.
TREA ratio stands at 23.37% in line with the regulatory requirement16 of 23.36% and the LRE ratio stands at 11.06%, well above the regulatory requirement of 5.40%.
As of the end of June 202 6, Risk Weighted Assets (“RWAs”) – based on Basel Standard model – stand at €5.8bn, vs. €4.9bn at 1H 2025 and vs. €6.4bn at YE 2025 . RWA s density17 stands at 81% vs. c. 62% at 1H 2025 and c. 84% at YE 2025 .
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For further details please refer also to the “ 1H 2026 Results ” presentation published in the Investor > Results > Financial Results section of BFF Group’s website.
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13 Managerial data , including collections on past due exposures purchased and collected during the period.
14 These Reserves include: the Capital Conservation Buffer, the Countercyclical Capital Buffer and the Systemic Risk Buffer.
15 Please refer to footnote 14. Please note that TCR breach of SREP is just related to the Capital Reserves amount.
16 Please refer to footnote 14.
17 Calculated as RWAs/Total assets excluding HTC bond portfolio and Cash and Cash Balances.
5 Going Concern and Capital Conservation Plan Below follows t he Bank's assessment of its ability to continue as a going concern, together with, also at Consob's request, an update on the status of the planned supporting actions .
The going concern assessment takes into account the breach of the Total Capital Ratio against the Overall Capital Requirements as of 30th June 2026 (which has been fully restored on a pro forma basis following the sale of Italian Government bond s – for further details see below ).
Compared with previous estimates, the capital shortfall on Total Capital derived from the application of the interpretation set out in the EBA Q&A on calendar provision ing published on 3rd July 202618, which remains within the limits of the Capital Conservation Buffer. Regulatory compliance of the Total Capital Ratio was re -established through the sale of the above -
mentioned HTC bond portfolio completed on 28th July 2026 .
It is further confirmed that, in the absence of external initiatives and based on current projections, prospective capital shortfalls would be expected to arise in 2028 , primarily as a consequence of the progressive application of so-called calendar provisioning to exposures classified as past due at 31st December 2025. With regard to liquidity indicators, the above -mentioned projections confirm compliance with regulatory requirements both as at 30th June 2026 and throughout the 2026 -2028 period.
In order to mitigate the 2028 capital shortfall , the Group has identified a set of recovery initiatives and additional potential mitigating actions. In particular, a baseline scenario has been prepared and updated on the basis of the information available as of the date of approval of the consolidated interim financial statements on 5th August 2026 and based on the continuity of the Bank's current business model. The scenario is based on the assumption of a controlled decrease in Factoring & Lending loans , including a significant reduction in volumes versus certain debtors operating within the Polish factoring product known as the "Factoring Like Product". Based on both the assumptions underpinning this scenario, as well as on the effects of the sale and concurrent reinvestment transaction involving Italian government bonds classified under the HTC business model, completed on 28th July 2026 for a total amount of €3.1bn and disclosed to the market on the same date ( link), the Group expects to maintain adequate profitability levels and compliance with capital requirements through the financial year 2027.
The Group has also identified further measures that may be activated if necessary and with some already under assessment and implementation, aimed at further strengthening its capital and regulatory position and supporting capital adequacy over the longer term.
These initiatives include a loan securitization currently under detailed assessment, for which a process to identify potential investors is underway with the support of two leading financial advisors as communicated previously . As of the approval date of these consolidated interim financial statements, the preliminary strategic analysis and the identification of the portfolio
18 For further details please refer to the following link : https://www.eba.europa.eu/single -rule -book -
qa/qna/view/publicId/2026_7753 .
6 potentially subject to the transaction have been conducted . The final perimeter and structure of the transaction remain subject to further definition through discussions with potential investors and other stakeholders . Other preparatory activities and discussions with potential investors are also continuing.
The Bank may also consider, subject to market and other relevant conditions, the issuance of Tier 2 eligible subordinated instruments as an additional lever to further strengthen the Bank's capital position , as well as the issuance of senior instruments aimed at enhancing the MREL eligible liabilities base of the Group . In this regard, on 5th August 2026, the Bank's Board of Directors approved its renew ed EMTN Program me, providing the framework that would enable the Bank to access the capital markets promptly should it decide to pursue such transactions . However, this measure is not included in the baseline capital conservation scenario.
The Board of Directors also initiated a process aimed at identifying one or more financial and strategic partners with the support of financial advisors . Following the launch of this process, the Bank has received preliminary and non -binding expressions of interest from both domestic and international parties and has commenced the related analyses and discussions, with a view to assess the feasibility, structure and potential benefits of possible strategic transactions, in the interests of the Bank and its stakeholders.
Other remedial measures, particularly those relating to the potential valorization of assets , are currently at a preliminary stage of assessment.
Accordingly, notwithstanding the significant uncertainty on the initiatives described above, the Board Directors believe, in light of the foregoing, that the Group will continue to operate as a going concern for the foreseeable future and have therefore prepared the consolidated interim financial statements on a going concern basis.
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Events after the 1H 2026 reporting period AT1 coupon payment On 9th July 2026, BFF informed that the Board of Directors approved the payment of the semi -
annual coupon on the bond classified as Additional Tier 1 capital (Additional Tier 1 - AT1). For further details please refer to the related press release ( link).
Bank of Italy Inspection Report On 14th July 2026, BFF announced that it received the Inspection Report issued by the Bank of Italy following the review conducted between 4th December 2025 and 29th May 2026. For further details please refer to the related press release ( link).
7 Revision of MREL Requirements On 22nd July 2026, BFF announced that the Bank of Italy had completed the review process of the consolidated minimum requirements for own funds and eligible liabilities (“ MREL ”) and notified the Bank of its new consolidated capital requirements , reduced from those previously in force .
For further details please refer to the related press release ( link).
Repositioning of HTC Government Bond Portfolio and EBA Q&A on calendar provisioning On 28th July 2026, BFF completed the sale and reinvestment of approximately €3.1 bn of Italian government bonds classified as Held to Collect (HTC), generating a pre -tax capital gain of approximately €62 m. In addition, following the EBA Q&A published on 3rd July 2026, the Bank announced that the calendar provisioning effects related to exposures reclassified as past due on 30th June 2024 have been recognized in 1H 2026. For further details please refer to the related press release ( link).
Interim Assignment of Responsibility for the Factoring & Lending Department to the Chief Executive
Officer
Today, the Board of Directors assigned interim responsibility for the Factoring & Lending Department to the Chief Executive Officer and General Manager, Mr. Giuseppe Sica.
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Statement of the Financial Reporting Officer The Financial Reporting Officer, Antonio Carnevale , declares, pursuant to paragraph 2 of article 154-bis of the Legislative Decree n° 58/1998 (“ Testo Unico della Finanza ”), that the accounting information contained in this press release corresponds to the document results, accounting books, and records of the Bank.
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8 Earnings call 1H 202 6 consolidated results will be presented today, 5th August , at 19:30 CEST (18:30 BST , 13:30 EST ) during a conference call, that can be followed after registering at this link. The invitation is published in the Investors > Results > Financial results section of BFF Group’s website.
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This press release is available on -line on BFF Group’s website www.bff.com within the Investors > PR & Presentations > Press Releases section.
BFF Banking Group BFF Banking Group is the largest independent specialty finance in Italy and a leading player in Europe, specialized in the management and non -recourse factoring of trade receivables due from the Public Administrations, securities services, banking and corp orate payments. The Group operates in Italy, Croatia, the Czech Republic, France, Greece, Poland, Portugal, Slovakia and Spain. BFF is listed on the Italian Stock Exchange.
www.bff.com
Contacts
Investor Relations
Caterina Della Mora Marie Thérèse Mazzocca +39 02 49905 631
investor.relations@bff.com
Media Relations International Press Italian Press Alessia Barrera FinElk Image Building Sofia Crosta Cornelia Schnepf Cristina Fossati +39 02 49905 623 +44 7387 108 998 +39 02 89011300 newsroom@bff.com bff@finelk.eu bff@imagebuilding.it
9 Consolidated Balance Sheet (Values in € thousands ) 19, 20 Assets items 30-Jun-25 31-Dec-25 30-Jun-26 Cash and cash equivalents 748,063 124,577 151,851 Financial assets measured at fair value through profit or loss: 178,776 181,243 188,192 a) financial assets held for trading 122 1,358 7,380 b) financial assets designated at fair value - - -
c) other financial assets mandatorily measured at fair value 178,655 179,885 180,812 Financial assets measured at fair value through Other Comprehensive Income143,738 151,718 159,546 Financial assets measured at amortized cost 11,176,544 10,779,917 10,557,360 a) due from banks 1,097,573 854,821 803,589 b) due from customers 10,078,972 9,925,096 9,753,771 Hedging instruments - - 406 Equity investments 13,846 15,323 16,270 Property, plant, and equipment 105,393 104,212 107,119 Intangible assets 74,270 67,240 61,727 of which: goodwill 30,957 30,957 30,957 Tax assets 113,270 134,329 103,034 a) current 52,635 72,827 55,458 b) deferred 60,635 61,502 47,576 Discontinued operations and non-current assets held for sale - - -
Other assets 662,060 675,939 532,259 Total Assets 13,215,961 12,234,498 11,877,764
19 Following FY24 Restatement, 1 H25 figures reflect the following adjustments: c. -€19.7m Financial assets measured at amortized cost (Loans and Receivables with customers), c. +€14.1m Tax assets , c. +€8.6m Tax liabilities, c. +€3.4m Provisions for Risk and Charges and c. -€17.6m Reserves.
20 Please note that the FY 2025 figures relating to asset item “Financial assets measured at amortised cost – due from customers” and liability item “Provisions for risks and charges – other provisions” have been reclassified for comparative purposes only .
10 Liabilities and Equity items 30-Jun-25 31-Dec-25 30-Jun-26 Financial liabilities measured at amortized cost 11,332,246 10,783,741 10,349,445 a) deposits from banks 1,321,116 1,307,147 1,314,638 b) deposits from customers 9,406,108 8,856,635 8,429,043 c) securities issued 605,022 619,959 605,764 Financial Liabilities Held for Trading 4,748 778 265 Hedging derivatives 788 186 -
Tax liabilities 183,558 163,633 154,946 a) current 4,746 1,585 2,791 b) deferred 178,811 162,049 152,155 Other liabilities 714,055 365,213 404,539 Employee severance indemnities 3,544 3,508 3,561 Provisions for risks and charges: 50,987 29,274 21,013 a) guarantees provided and commitments 75 64 65 b) pension funds and similar obligations 6,189 6,329 6,001 c) other provisions 44,723 22,881 14,947 Valuation reserves 23,974 30,022 39,217 Additional Tier1 150,000 150,000 150,000 Reserves 470,265 459,516 491,620 Share premium 66,277 66,277 66,277 Share capital 145,104 145,399 145,452 Treasury shares 0 - -
Profit (Loss) for the period 70,414 36,951 51,430 Total Liabilities and Equity 13,215,961 12,234,498 11,877,764
11 Consolidated Income Statement (Values in € thousands )
Items 30-Jun-25 30-Jun-26 Interest and similar income 270,260 221,624 Interest and similar expenses (145,726) (115,583) Net interest income 124,534 106,041 Fee and commission income 53,529 56,591 Fee and commission expenses (11,481) (11,142) Net fees and commissions 42,048 45,449 Dividend income and similar revenue 11,792 9,828 Gains/ (Losses) on trading 7,783 5,221 Fair value adjustments in hedge accounting - -
Gains/ (Losses) on disposals/repurchases of: - 14,508 a) financial assets measured at amortized cost - 14,508 b) financial assets measured at fair value through Other Comprehensive Income - -
c) financial liabilities - -
Net income from other financial assets & liabilities at FV through profit or loss: (3,977) (1,683) a) financial assets and liabilities designated at fair value - -
b) other financial assets compulsorily valued at fair value (3,977) (1,683) Net banking income 182,179 179,364 Impairment (losses)/ reversals on: (1,274) (20,696) a) financial assets measured at amortized cost (1,274) (20,696) b) financial assets measured at fair value through Other Comprehensive Income - -
Net profit from banking activities 180,905 158,668 Net profit from financial and insurance activities 180,905 158,668 Administrative expenses: (92,530) (85,367) a) personnel costs (39,541) (25,858) b) other administrative expenses (52,989) (59,509) Net provisions for risks and charges: 392 7,939 a) commitments and guarantees provided 183 6 b) other net provisions 209 7,933 Net (adjustments to)/writebacks on property, plant, and equipment (2,594) (3,557) Net (adjustments to)/writebacks on intangible assets (5,379) (6,939) Other operating (expenses)/income 15,560 2,024 Total operating expenses (84,551) (85,901) Gains (Losses) on equity investments 406 3,103 Gains (Losses) on disposal on investments - -
Profit (Loss) before tax from continuing operations 96,760 75,870 Income taxes on profit from continuing operations (26,346) (24,440) Profit (Loss) after taxes from continuing operations 70,414 51,430 Profit (Loss) after taxes from discontinued operations - -
Profit (Loss) for the period 70,414 51,430
12 Consolidated capital adequacy (Values in € million) 30-Jun-25 31-Dec-25 30-Jun-26 Credit and Counterparty Risk 332.9 454.2 410.1 Market Risk 0.2 0.1 0.0 Operational Risk 59.7 53.9 53.9 Total Capital Requirements 392.9 508.2 464.0 Risk Weighted Assets (RWAs) 4,910.7 6,352.2 5,799.8
CET1 702.9 631.7 599.9
Tier I 150.0 150.0 150.0 Tier II 0.0 0.0 0.0 Own Funds 852.9 781.7 749.9 CET1 Capital ratio 14.3% 9.9% 10.3% Tier I Capital ratio 17.4% 12.3% 12.9% Total Capital ratio 17.4% 12.3% 12.9%
13 Asset quality (Values in € thousands)2122 Gross Provision Net Non-performing loans (NPLs) 100,242 (29,484) 70,758 Unlikely to pay 206,014 (28,446) 177,568 Past due 2,785,589 (128,866) 2,656,722 Total impaired assets 3,091,845 (186,797) 2,905,048 Gross Provision Net Non-performing loans (NPLs) 128,868 (35,031) 93,837 Unlikely to pay 85,635 (11,342) 74,292 Past due 3,036,952 (121,401) 2,915,551 Total impaired assets 3,251,455 (167,774) 3,083,680 Gross Provision Net Non-performing loans (NPLs) 127,381 (21,490) 105,891 Unlikely to pay 76,224 (9,309) 66,915 Past due 1,545,781 (3,361) 1,542,420 Total impaired assets 1,749,386 (34,159) 1,715,22630-Jun-2531-Dec-2530-Jun-26
21 Please refer to footnote 19.
22 Please refer to footnote 20.