Bff exceeds capital ratios, plan submitted to Bankitalia
The bank activated a Recovery Plan and involved financial advisors to prevent future capital shortfalls and enhance assets, ensuring business continuity
At the end of 2025, Bff Bank was not in full compliance with supervisory capital requirements. In particular, according to a note, the bank's total capital ratio was 12.31% compared to a minimum of 13.3%, while as far as Mrel requirements are concerned, the Trea coefficient of 22.07% is higher than the regulatory value of 20% but 123 basis points lower when considering capital reserves to be held in addition. Bff's board of directors has therefore submitted to Bankitalia 'a capital conservation plan' and 'activated the Recovery Plan in order to ensure greater control and effectiveness of remedial actions'.
Bff submits plan to Bankitalia
Bff is of the opinion that there is a going concern requirement. "The going concern assessment takes into account the breach" of the total capital ratio and capital reserves to be held in addition to the Mrel Trea requirement as at 31 December 2025, Bff states. Based on the expected projections, even in the absence of external initiatives, no capital shortfalls below the Srep requirements are expected in the financial years 2026 and 2027, while in the financial year 2028, in the absence of external initiatives, prospective capital shortfalls are estimated mainly due to the progressive application of the so-called calendar provisioning, applied to past due loans.
In order to prevent such capital shortfalls for 2028, Bff 'has prepared individual recovery initiatives and alternative scenarios - also with the support of leading advisors'. In particular, it is considering 'certain actions aimed at enhancing the value of specific portfolios', such as securitisations, 'or assets, possibly accompanied by the use of new operating methods in the factoring sector'. Therefore, Bff's directors believe that 'despite the significant uncertainty that characterises the aforementioned initiatives', the bank 'will continue to operate as a going concern in the foreseeable future and have therefore prepared these financial statements on a going concern basis'.
Bff appointed Mediobanca and Morgan Stanley as financial advisors in the context of the process of evaluating strategic options and the future development of Bff's business model, aimed at maximising value creation for the benefit of all stakeholders. JP Morgan and PwC continue to act as advisors in the context of the potential securitisation.
