Credit Portfolio yr 5.5 billion euros, +9% year on year, new historical record for the 1st quarter. Balance Sheet solid at 12.2 billion euros, with an increase in the credit portfolio, a reduction in the government bond portfolio and in repo liabilities year on year.
Very solid capital position: CET1 ratio at 13.5% and TCR at 18.2%. 49 million euros excess capital compared to the target of 12% CET1 ratio. €41.5 million of excess capital generated based on Q1 2024 results.
BFF announced that it had received, on 29 April 2024, from Bank of Italy the report containing the results of the inspections follow up concluded on 12 January 2024, which contains the formalization of a compliance finding on the current classification of credits
public, regardless of the representation of a related credit risk, which are based on an interpretation of the EBA guidelines of the new Default Definition on such public credits – in particular concerning the application of the suspension to the calculation of the days of arrears for the purposes of prudential classification of credit exposure – different from that adopted by BFF. In addition, the Regulator also formulated findings on the Bank’s governance and corporate practices regarding remuneration, with particular reference to some contractual provisions relating to the CEO.
The Regulator, while waiting to examine the Bank’s decisions based on the inspection findings formulated, has in the meantime ordered that the Bank abstain temporarily from deliberating or implementing (i) the distribution of profits (produced starting from the current financial year 2024) or other assets elements; (ii) the payment of the variable part of the remuneration; (iii) the further expansion of operations abroad, through the opening of new branches or the expansion into new countries under the provision of services regime. The limitation on the distribution of profits or other elements of assets does not apply to the interest payable on its Additional Tier 1 securities. The Bank will have to meet the Bank of Italy in July 2024.
In light of these findings, the Board of Directors of BFF, on the basis of preliminary assessments and without prejudice to further in-depth analysis on the matter, believes that the possible increase in RWA and prudential calendar provisioning positions that could arise from the aforementioned interpretation does not lead to a substantial change in the economic and financial prospects of the bank, also taking into account the reserves not yet accounted for by the same and the management actions that may be initiated also in relation to the management of the assets.
(Teleborsa) 09-05-2024 14:29
