BFF Bank's stock suffered a severe drop exceeding 32% on Monday after the lender revealed an executive departure and significant accounting moves tied to a portfolio remediation ahead of a planned securitization.
The bank said Massimiliano Belingheri will step down from his executive role but will continue to serve on the board as a non-executive member. At the same time, chief financial officer Giuseppe Sica was named General Manager and granted the full authorities that had been held by Belingheri.
In accompanying financial disclosures, BFF guided adjusted net income for 2025 to €150 million and reported net income of €70 million. The reported net income figure reflects a €95 million pre-tax, one-off charge stemming from the portfolio clean-up.
Management also revised its 2026 outlook, reducing the adjusted net profit target to €160 million from a previous target of €240 million. The bank cited weaker-than-expected loan growth in 2025 and collection performance as the reason for the revision. The newly announced 2026 target sits below outside estimates referenced by the company - Jefferies had projected about €175 million and a Bloomberg consensus stood at approximately €188 million.
As part of the review of its Italian portfolio, BFF reserved €72.2 million to cover negative court rulings connected to receivables owed by Italian public sector entities. The bank said that roughly 98% of these provisions relate to rulings that are currently under appeal.
In addition to that provisioning, the company recorded a €22.4 million one-off charge resulting from a change in its assumption about the time to collect late payment interest: management extended the assumed collection period from 2,100 days to 2,400 days. BFF cited a slowdown in collections over the 2023-2025 period but said it expects full enforcement of injunctions to shorten collection timelines over time.
The bank also uncovered errors amounting to approximately €54 million in pre-June 2023 cash allocations within its factoring business. BFF said these errors represent less than 0.2% of total cash collections over that period. As a result, 2024 restated accounts are expected to show equity that is €14 million lower than previously reported.
On capital metrics, BFF indicated its common equity tier 1 ratio as of Dec. 31, 2025 would likely fall into a range between 13.2% and 13.7% after taking into account the one-off effects and the reduction in non-performing exposures, and before any dividend distributions.
The updated 2026 guidance includes earnings per share of roughly €0.80, a cost-to-income ratio now expected to be below 50% compared with a prior target below 40%, and a return on tangible equity projected at about 24%, down from a prior target above 40%.
Ownership details disclosed by outside analysts indicate Belingheri holds approximately 11.4 million shares, equivalent to about 6% of outstanding equity, according to Jefferies.
On the broker front, Jefferies maintained a "buy" rating with a €12 price target but said it anticipated a negative market reaction to the firm's announcements. Kepler Cheuvreux placed its rating under review following the developments.
Context and next steps
BFF is undertaking a portfolio clean-up and adjusting its earnings and capital metrics ahead of a planned securitization. The company has quantified several one-off charges and operational findings that have reduced near-term profitability targets and prompted changes in senior operational responsibilities.