Bff in free fall after Bankitalia appoints commissioners
The board of directors and the board of auditors continue to maintain their full powers and decision-making authority unchanged. Meanwhile, in the context of the general inspection, which is still ongoing, the Bank of Italia has identified critical issues in the factoring and lending sector
(Il Sole 24 Ore Radiocor) - Bff Bank in free fall at Piazza Affari after the news that Bankitalia has appointed two commissioners at the institution. The shares, which failed to make a price at the start, fell more than 60%. Raffaele Lener and Francesco Fioretto are the two commissioners appointed by the Bank of Italy to temporarily work alongside the board, to "assist it in the rapid process of restoration of the operational-accounting framework and in the management of remedial actions in the credit sector relating to the factoring business and the system of internal controls, already initiated by the bank".
In any case, the board of directors and the board of auditors continue to maintain their full powers and decision-making authority unchanged. Meanwhile, in the context of the general inspection, which is still in progress, the Bank of Italy has identified critical issues relating to the factoring and lending sector and the classification of loans for prudential purposes, even though, it says, 'the bank continues to comply with the Cet1 capital requirements'. Bankitalia requested that the presentation of the 2025 project be postponed to 30 April and its approval by the shareholders' meeting on 30 to June. Also because the adjustments of EUR 70 million on the EUR 400 million portfolio could be subject to change.
"The news is negative as, despite the details on the Bank of Italia's measures give more indications on the critical issues that emerged during the inspection,uncertainties still remain on the extent of the impact on the bank's capital ratios," commented Intermonte analysts, who have therefore put the price target on the stock under revision, maintaining a recommendation of 'Neutral'. The experts do not rule out that the impact on Cet1 in 2025 could be 'significant' in the event of a more severe credit reclassification. In any case, the analysts pointed out, Cet1 'would still remain above the Srep minima'. Obviously, according to Intermonte, in case the reclassifications go through, scenarios involving the distribution of dividends are to be excluded.
