(Alliance News) - "Ever more a bank like no other." This is the name chosen by BFF Spa for its new plan to 2028, which calls for growth in economic indicators and further development of its core business, "in which we are a market leader."

In Factoring and Lending, the bank aims to continue to develop in a leading position the purchase of public credits in Europe in a growing and underpenetrated market, through a strong growth of the customer portfolio in markets already manned and in new geographies, including through the opening of a branch in France; the consolidation of the operational competitive advantage also through the new Factoring IT system; and greater efficiency of the legal process related to collections.

On the Transaction Services front, BFF aims to further strengthen its role as a "Second Level Bank," while generating a steady revenue stream and ample operational deposit availability for the group: in Payments, it aims to become the leading independent payments intermediary in Italy for banks and Payment Service Providers - PSP2, capitalizing on the shift to electronic payments; in Securities Services, it is the only Italian bank that provides the full range of customized custodian and securities custody services to domestic banks and asset managers, in a secular growth market.

In addition, BFF aims to further invest in our operational infrastructure to support growth opportunities by managing operational risks and to benefit from further efficiencies; to continue to provide our team with growth and development opportunities while maintaining strong incentive alignment with our stakeholders; and to further optimize funding and capital.

The bank aims to deliver market-leading returns on capital and dividends to shareholders, with 12 percent excess CET 1 target capital distributed to shareholders; to maintain the group's low risk profile by efficiently managing past due and calendar provisioning; and to further increase our positive social, environmental and all-stakeholder impact, along with net zero targets and doubling investments in social impact initiatives.

"BFF's balance sheet is expected to remain stable from the end of FY2022, at around EUR13 billion, with strong growth in loans & receivables offset by the amortization of HTC13's government bond portfolio. At the end of 2026, about 80 percent of the HTC portfolio is expected to be floating-rate, with an estimated yield of 3.76 percent and a spread of plus 0.94 percent, while the fixed-rate portfolio has an estimated yield of 0.70 percent. BFF intends to maintain a diversified funding base and continue to access as many funding channels as possible," the bank explains in a note.

BFF's dividend policy aims to self-finance the group's growth and distribute excess capital to shareholders, "committing to distribute to shareholders all profits generated in the year in excess of a target capital ratio."

The target capital ratio has been moved from 15 percent total capital ratio to 12 percent CET 1 ratio, to bring it in line with the capital target most used by other banks. Dividend distribution remains unchanged, provided all other regulatory capital requirements are met.

"Dividend distribution is confirmed twice a year, in August and April, based on adjusted net income for the first half and full year."

As of 2026, the bank expects a best-in-class cost/income ratio of less than 40 percent; strong growth in adjusted net income in the range of EUR255-265 million; earnings per share of EUR1.37-1.43 or EUR1.34-1.39 fully diluted; cumulative dividends of more than EUR720 million, or about 40 percent of market capitalization; a CET 1 ratio of 12 percent or higher; and a market-leading return on tangile equity of more than 50 percent.

Massimiliano Belingheri, CEO of BFF, said, "Our strategic plan for 2028 builds on our strengths and an attractive market environment to continue to deliver high returns to our shareholders, with adjusted net income growing by more than 78 percent to 2026 and expected dividends of 40 percent of our current market capitalization. We aim to further strengthen our leadership in specialty finance niches in Europe, leveraging our position as the leading player in factoring to public administration and healthcare providers and our unique role as a service bank for other banks and financial institutions in Italy."

"We are committed to achieving this by investing in our business and our people, operating with honesty and transparency, maintaining leadership in innovation, customer service and execution in our target markets, with a low risk profile and high operational efficiency, and aligning ourselves with the best corporate governance practices of public companies. We are a highly sustainable company with a unique ability to reward our shareholders, our people, and our community."

BFF Bank's stock closed Tuesday up 1.1 percent at EUR9.64 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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