Earnings call transcript: BFF Bank Q2 2025 shows strong profit growth

BFF Bank SpA reported significant profit growth in its second-quarter earnings for 2025, with net profit rising 6% year-on-year to €75 million. The bank’s stock, currently trading near its 52-week high at €12.15, saw a slight decline of 0.1% in market trading. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, despite showing impressive momentum with a 30.11% return over the past six months. The company maintained strong capital ratios and continued its strategic expansions, including a renewed ICT contract and launching a new platform in Greece.

Key Takeaways

• Net profit increased by 6% year-on-year to €75 million.
• Loan volumes grew significantly, especially in Poland, with a 41% increase.
• The CET1 ratio remained strong at 14.3%, indicating robust capital health.

Company Performance

BFF Bank SpA demonstrated strong financial health in Q2 2025, with a notable 37% year-on-year increase in second-quarter profits. The bank’s loan book reached €5.9 billion, marking the highest first-half performance ever. This expansion aligns with the company’s robust revenue growth of 16.08% and industry-leading gross profit margin of 93.95%, as reported by InvestingPro. The growth was driven by substantial increases in loan volumes across key markets, including a 17% rise in Italy and a 41% surge in Poland.

Financial Highlights

• Net profit: €75 million, up 6% year-on-year
• Loan book: €5.9 billion, highest first half ever
• CET1 ratio: 14.3%, with €114 million excess capital

Outlook & Guidance

BFF Bank anticipates continued growth, with a focus on reducing its past due portfolio and exploring potential mergers and acquisitions. Trading at a P/E ratio of 9.26 with a market capitalization of €2.27 billion, the bank shows strong fundamentals. InvestingPro subscribers have access to 8 additional key insights and a comprehensive analysis of BFF Bank’s valuation metrics, helping investors make more informed decisions. The bank is also awaiting the removal of dividend policy restrictions by the Bank of Italy, which could influence future shareholder returns.

Executive Commentary

"We continue to deliver on growth while keeping substantial liquidity," stated Massimiliano Bingeri, Group CEO. He emphasized the bank’s strong capital position and ongoing efforts to optimize collection processes.

Risks and Challenges

• Potential European Court of Human Rights rulings could impact operations.
• Interest rate changes, although not expected to significantly affect P&L, remain a potential risk.
• Maintaining cost discipline amid rising G&A and security services expenses.

Q&A

Analysts inquired about the acceleration of the contingent portfolio collection and potential securitization of past due invoices. The bank did not disclose a specific full-year profit target but highlighted ongoing strategic evaluations.

BFF Bank’s Q2 2025 performance underscores its robust financial health and strategic agility, although market reactions suggest investor caution amid broader economic uncertainties.

Full transcript - BFF Bank SpA (BFF) Q2 2025:

Conference Operator: Good afternoon, and welcome to BFF Banking Group’s first half twenty twenty five earnings call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touch tone call.

Please note, this event is being recorded. I would like to turn the conference over to Massimiliano Bingeri, Group CEO and Josep Besikka, Group CFO. Please go ahead.

Massimiliano Bingeri, Group CEO, BFF Banking Group: Thank you, everybody, for joining us today for the reporting of our first half results. Let me first of all say that we don’t have any direct updates on our discussion with Bank of Italy, and we’ll be giving an update as soon as we have disclosed the board information. So let’s focus first on our financial and commercial performance. In the first half of the year, we continue improving our financial commercial performance on the trajectory we set already in q one.

The net net profit stands at 75,000,000, up 6% year on year. Equally importantly, the second quarter profit is also up 6% sequentially and 37% year on year, a good trajectory for the business. Factor in lending has continued also with positive path. PBT, PBT of the division is up 21% year on year, and the loan book in the volumes are the highest first half ever for the group and are just marginally shy from the rate of balance sheet of of year end. Not only reported profitability is up, but importantly, also the future one continues to be up.

In fact, our off balance sheet reserve has grown 93,000,000 year on year faster than our loan book growth. We continue to deliver on growth while keeping a substantial liquidity. Our loan to deposit ratio stands at 77% and the highly stable transaction services deposits are also growing 31% year on year. And the rate the spread environment continues to support the mark to market of our head to collect portfolio. Now the positive mark to market is close to 50,000,000, an improvement of over 100,000,000 year on year, and this will this will also support our future profitability.

Moving to capital. Our CET one ratio stands today at 14.3%, which is well above the level that we registered pre credit recertification at the time the capital was 13.5. We’ve generated over 200 bits of capital in the first half of this year alone. We have 140,000,000 of excess capital versus the 12% CET one target, $7,575,000,000 of which are related to our first half adjusted net income. But furthermore, if you look at our level, we have 226,000,000 of excess capital, so substantial buffer also towards towards that.

As we have repeated in the past, our dividend policy remains unchanged, and we are waiting the removal of the banks of Bank of Italy as we mentioned before. Looking at past due, we’re pleased on our progress on the past due to date. Our past due is towards governments and public sectors down 10% in the last six months. If you consider only the portfolio we had at year end, there’s a senior reduction of 40%, and that gives a sense of how much we’re actually reducing the portfolio the growth of the portfolio of the of the past due has been driven instead by further purchases of debtors already in past due and marginal increase in the past due portfolio. Also, what we call the continuing losses, progress continues.

We have down close to 30% in a year. We continue to take action to reduce that portfolio. A few points outside of our numbers. First of all, we have renewed our ICT contract with Nexi, which, as you know, underpins part of our transaction service activities that has been renewed until 02/1932, and it has given us some strategic flexibility into the intellectual property ownership on the infrastructure. Second and importantly, we will obtain further European Court of Human Rights rulings on municipalities in conservatorship, which proves again that the state needs to pay those private exposures.

In the meantime, we have filed appeals to the European Court of Human Rights for additional 40 millions of capital on municipality conservatorship, that’s roughly 40% of our NPL portfolio, and another 25,000,000 on past due exposures. Third, from the receipt of our the regulatory authorization and the support of our partners. We have launched our deposit gathering platform in Greece. It’s another step in our funding diversification that will launch a marketing campaign in in the last part of the year to increase that at least. And finally, you might have seen the logo we have.

The presentation is celebrated on the twenty second of of July, our fortieth birthday. That’s an important step in our in our history. And the history we’ve just seen so many successes and we wish all of them and all our shareholders many successes to come. If you look at page four on the balance sheet, I would highlight a few things. First of all, the loan book that stands at 5,900,000.0.

As I said before, it’s up 5% year on year. The loan book size is actually main driver of our interest income together with over recoveries of API. Our head to collect portfolio is down 7% on a year on year. We are managing down, particularly on the fixed rate side. The mark to market, as I mentioned, is now positive and has increased by 134,000,000 year on year.

That means that actual future profitability is better as the cost of carry becomes a positive carry over time on the fixed bond portfolio. And importantly, we continue to have a positive spread on our variable rate portfolio. On the diabetes side, as mentioned before, transaction service deposits are up 31% year on year. Those are stable and driven mostly by decision of our our clients on their asset allocation, but importantly, by the volumes of our activity with them. We have a strong growth, for instance, in our depository bank activities at 20% year on year growth.

Given that liquidity, we’ve actually reduced our deposits, which are down 39% year on year. And we remain deposits and repos, which are down 13% year on year. Leverage remains strong at 6.1%. Our loan to deposit ratio is at 67%, which is improvement in over last year. This confirms ample liquidity in the group.

And we talked already about our CET1 ratio. Again, our very high capital ratios with 14.3% CET1 and plenty of buffer versus our 12% target in our reps. If you move on the p and l on slide five, adjusted net income is at 75,000,000, up 6% year on year and 7% versus the 2024. Let me speak in more detail later about the drivers of our performance. And it’s important to say that it’s probably before tax of our factoring and division is actually up double digit, plus 31% year on year, which underpins the future growth of the business.

Also, services is significantly up, 43% year on year. Payments on the slightly down by the head of budget, And we see a tangible opportunity to deliver further growth and profitability in that business. Having said that, I leave now the floor to Joseppe to walk you through the details of the map. Thank you. Thank you, Matt.

Let me give you some more details on our factoring and lending business on on Black six. The gross yield has been totally resilient, Spread versus ECB rate has in fact improved. And actually, remind you, ECB rate is the key driver of our cost of funding. So MRO rate is down 155 bps versus gross yield down 74 bps. Spread resilience explains together with volumes that we’ll talk about in a moment, the 21% increase in the p b two of the division.

Rescheduling are normalizing and improving quarter on quarter. 6,200,000.0 in the second quarter versus 12.7 in the first. Other income is mainly driven by continued collection of recovery fees. Looking at all at at the past, but also at the future profitability, our off balance sheet funds have increased 94,000,000 in twelve months. Moving to the commercial performance of the business on slide seven.

Loan book stands at 5,900,000,000.0, the best first half for loans and the key driver of net interest margin. Our loan book in Italy continues to grow and is up 5% compared to last year. Spain, on the other hand, is down, reflecting lower volumes after planned deposit at the end of last year. France loan book continues to grow. Reflecting on commercial performance, volumes are up 10% year on year at 4,200,000,000.0.

Volumes in Italy are up 17% year on year and up 41% in Poland, albeit with a different business mix. Portugal, which was down 6% in the first quarter, is up 9% year on year. And finally, France, even before the future opening of a branch in the country, And only twelve months after launch of of meaningful business is already at the same level of risk, which is it that’s growing. Let me move now to slide eight on payments. Both revenues and number of transactions are up 1% year on year, proving the resilience of the business.

The division provides circa 2,800,000,000.0 of deposits to BFS, which are also up 2% year on year. Continuing to invest in the business, we have extended ICT contract with Nexi to 2032. We have signed agreement with Nexi and different board lines for domestic intermediation with intellectual property ownership for critical IT applications remains with us. And we have become exclusive provider of domestic settlement card service for the claims port line. Next slide on security services.

As Max said, the division has recorded very strong performance during the year. Assets under deposits are up 20% compared to one year ago. And very meaningfully for the business, they are back to pre up collateral as we continue to be provider of choice of several alternative, specialized funds, and pension funds. Settings that are as a consequence, are up 13% versus one year ago. Liquidity provided by the division has now reached 4,400,000,000, which is up 62% year on year, It is allowing an efficient management of our liquidity profile for instance, as Max said, by reducing our online deposits.

Slide 10 on group cost. We maintain our cost discipline while investing in growth. In fact, all that’s a d and a are up 4% year on year with lower personal cost and higher g and a mainly due to meaningful IT expenses. At the divisional level, security services, OpEx and G and A are up 6% year on year in relation to our CT system upgrade, Fastering and lending at 24,300,000.0, up 3% year on year. And for payments, all that c g and a are only slightly up year on year.

As in the first quarter, any valuable remuneration for the year would only be assigned after the removal of Bank of Italy funds. Now let us move to our balance sheet and strong profile on slide 11. We are pleased with the composition of our balance sheet and continue to work on marginal improvement. The loan to deposit ratio remains very strong at 67%, showing ample liquidity and is further reduced compared to one year ago when it was 69%. The NSFR is 143% compared to one hundred and thirty four percent one year ago.

And FCR is also up from two hundred and nine percent one year ago to two 149%. In essence, we feel liquidity sources remain abundant and diversified, And we continue to diversify with the launch of our deposit platform in Greece. Moving to the asset side, our HTC portfolio continues to be managed down and is down almost 10% year on year. And importantly, mark to market is positive and increased by 124,000,000 year on year, which bodes well for future profitability. Slide 12 on asset quality showing our low risk profile is confirmed.

Our cost of risk in the first half stands at 4.6 basis points, broadly in line with historical averages. Our NPE stock affected by June 24 reclassification is down 10% year on year. And I will expand on the underlying dynamics in a moment. Let me start once again that NPE exposure is almost entirely towards public administration 96%, which is by definition low risk. Looking at the details of our of our NPS, also these are largely towards public administration and in particular towards municipalities.

We are pleased to have received the new ruling confirming the kind of state liability receivable due by three municipalities in conservatorship. And in the course that we have appealed to the European Court of Human Rights for $5,040,000,000 receivables towards municipality in conservatorship, which will present 40% of our NPS portfolio. 14,000,000, by the way, is already the capital with significant upside from collection of LTI. As mentioned, let me now give you some more detail on the evolution of our past due portfolio on the slide 13. First, excluding net new exposure, which we have both in the year past due has gone down by 40% in six months.

This is important that it shows the the high churn of our portfolio and our collection. Second, contingent invoices have done by another 41,000,000 in the first half, and we expect more as new injunctions take effect. Third, new past due is mostly due to contagion effect, 419,000,000. New past due generation is limited to 96,000,000 in the six months. From a few more details on our legal activity supporting transactions or judicial collection.

By the July ’25, we have filed in Italy around 840 injunctions towards public sectors. This represents around 82% of Italian plus U. Dollar and around 64% of the total plus year exposure. We have appealed for 25 more million involved in plus year receivables to the European Court of Human Rights in addition to the appeal on conservatorship. This should and will support further past due reduction.

Last but not least, on capital, slide 14. CET1 rate of spent 14.3% versus 11.9 in the 2024. And in the first half of the year alone, we have generated 207 basis points of common equity tier one. This is support both by past due and RWA density reduction and by the profitability of our business. We therefore have 114,000,000 of excess capital versus 12% common equity tier one target and 226,000,000 vessels set requirement.

Total capital ratio stands at 17.4%, while MREL requirements are covered in ample buffer, thanks to organic capital generation and the the two bonds that we have issued last year. As said by Max, the dividend policy remains unchanged, subject to the listing of the dividend done by Bank of Italy. Let me now hand over back to Max for the key takeaways on our business in the 2025. Thank you, Louisa, for the deeper presentation. Look, if you leave for a second the details, what we are seeing today is confirm positive momentum for the group.

The double digit growth year on year, both factor and value and security services, and good strategic positioning of our payment business. We’ve reached the highest first ever volumes and group loans for the factoring lending business. Secondly, the last of past due is underway with total past due portfolio down 10% versus year end 2024 despite us continue to buy new receivable towards the entities that are already in past due. We are accelerating the direction, so we should see an acceleration of the reduction of the overall stock in the competing portfolio in the quarters to to come. And and finally, we are in a pretty strong position in terms of capital because despite the still high level of deal, which is far away from where we should be in a normalized situation.

Our CET one ratio is at 14.3%. We have 114,000,000 rights of capital versus our CET one target for dividend. And so we think we are in a strong position to continue to grow the business, generate further capital in due course reward of shareholders. Thank you for listening to our presentation. I will leave the floor to any questions you might have.

Conference Operator: We will now begin the question and answer session. To ask a question, please press star and one on your touch tone phone. If you’re using a speakerphone, please pick up your handset before pressing the key. To withdraw your question, please press star and two. The first question came from Thomas Omido from Kepler Cheuvreux.

Please go ahead.

Thomas Omido, Analyst, Kepler Cheuvreux: Hello, and and thank you for taking my questions. I would have two for now. The first one is on on full year estimates. It seems that consensus is sitting between 175, €180,000,000 on adjusted net profit. So would be appreciated some colors on that.

And and do you feel comfortable with these numbers? And and the second one is on the contingent portfolio collection. Clearly, the the past due exposure is going down. But in the in the second quarter, your collection of of contingent portfolio has been only €16,000,000. So should we consider it the new run rate and and now that the book back book is is getting smaller, is it more difficult to collect or yeah.

That’s it. Thank you.

Massimiliano Bingeri, Group CEO, BFF Banking Group: Yeah. On the contingent portfolio, Luca, at the quarter, slower quarter, that depends really on where we are with the discussion with the counterparties, where we are with legal action. So one, we cannot pinpoint to a a specific number that we we target. We target to reduce that portfolio, which actually will will mean acceleration also going going forward. You should bear in mind that we are on a year well, not even a year away from the reclassification.

I think that’s the issue later last year. And we started to change our approach on legal actions at the 2024. And as we said, we were expecting an acceleration in the second half of this year of the collection of the the back of portfolio. In terms of full year estimate, as you know, we don’t give target for 02/2025. You should remember that we always have a stronger fourth fourth quarter, which accounts for more than a usual quarter, and we are trending towards level that we think are consistent with our business plan target.

Okay. Thank you.

Conference Operator: The next question is from Moneta Kiriowski of Mediobanca. Please go ahead.

Moneta Kiriowski, Analyst, Mediobanca: Hello. Hi. Good evening, everybody. My question is on volumes. The second quarter is really brilliant in terms of volume in most geographies.

So is it possible to have a bit more colors? I’ve seen that the PA segment improved a lot in the second quarter and also also Spain was was better than in Q1. So could you just elaborate a a bit on this? Thank you.

Massimiliano Bingeri, Group CEO, BFF Banking Group: On one look, the we are working hard to improve our commercial our commercial performance on on many fronts. As you know, we can also have a lumpiness in the decision of of customer to sell their their receivables. We are overall pleased with the performance of Poland. We think Italy, although, showing the decent growth in volumes, there’s still a lot of potential to to be expressed. Spain, which is down year on year, so it’s down year on year about 20%, Still impacted by the injection of cash that we’ve seen by the government in q in q one.

In q two, it’s been less relevant clearly because some effect is impacted mostly mostly q one. And those I would say are the main the main driver we think. Poor program has more to go as well. So they’ve grown year on year, but they they see more potential. And in the same day on the smaller market, you you can see clients, as you said, they pointed out, that they’re shown based on the last day from a small base, but now in terms of portfolio, it’s already at half the size of Slovakia.

And this space, we it will reach the size of the smaller market pretty pretty slow. So we see that as an opportunity just driven by the reconsideration people have on the financial conditions of the country as well as potential risk on the political political stability on the country itself. Azlovakia as well as the tiny market that we need to see what happens in the in the following quarters, but the pattern seems pretty good. And we know that there’s a market where the budget deficit is quite high, so they should have focusing focusing the customer’s attention on it.

Moneta Kiriowski, Analyst, Mediobanca: If I may complete the question, have in the first six months a 10% growth in volumes and a 5% growth in loans. Could should we can you give us an indication of how the DSO is evolving in in the largest market. Thank you.

Massimiliano Bingeri, Group CEO, BFF Banking Group: Yeah. We’re not seeing the long trend one where they are. Remember, we we buy what our customer give us. And depending also on when we buy in the quarter, we have a different outstanding at the quarter end. So for instance, in the second quarter, we did more purchases in proportionally than usual in April and May and less in June.

So that actually feels the the two two effects. And you have markets also where we buy portfolio, which are not necessarily representative of the overall market. If if they take transfer, will buy process that we paid later than normal DSO. So we can’t really we are not seeing an individual many individual performance counter taxes, significant improvement or worsening of payment payment times. I know that they were not making changes to our pricing mechanism to take into account as a shortening or lengthening of payment times.

Conference Operator: The next question is from David Giugiano of Equita. Please go ahead.

Thomas Omido, Analyst, Kepler Cheuvreux: Hi. Good evening, and thank you for taking my question. I three. The the first one on NII. Overall interest rate environment was, let’s say, good in first half as your LIBOR decreased while the rate was fixed at the January.

Now that the LTI rates are fixed in July and the ECB is expecting to cut to 25 bps by year end, which dynamics do you expect on NII in the second half? The second one on the custody dividends, when do we expect the tenders to start and what margin can we expect on this mandate for the security services division? And the third one on capital allocation, I know that dividend is the priority, there has been some movement in the Specialty Finance segment and also some things are going on. And my question, I was wondering if the excess capital you have accumulating during the dividend ban, if do you see opportunities for organic growth initiatives? Thank you.

Massimiliano Bingeri, Group CEO, BFF Banking Group: Organic or inorganic? Inorganic. Okay. Got Look, we we look at the many as a safety valid strategy all the time. And it depends on the opportunity, the right price, the right moment, the right target.

So it’s not really I think we have capital, so we we buy. Capital is there, but it’s actually our shareholders’ capital. So there’s an opportunity cost that we need to be mindful of. As we always stated, therefore, as in the next day, an avenue mostly for diversification, and we continue to monitor the market in Italy and also also abroad. In terms of the capital expenditure, the the team has been has been actually have been actually ready.

We know that the undersecretary of of the matter, speaking in June that we should expand the publication shortly. We’ve seen there’s still a bit of a delay. For us, actually, it’s a positive because it means that when it will be issued, hopefully, we will get in a position where we don’t have the restrictions involved on us by Bank of Italy, and that would take away some concern the client might have on us as a trustee of their assets. So at the moment, it relates actually for us positive. We expect something to to happen in the fall.

In relation to NII, look, I I think the the movement in interest rates of of that magnitude are not really unchanged on our our p and l. Frankly, what we drive the the NII in the second half is gonna be the growth of our loan book and also our ability to collect late payment interest and the the recovery fee. And I think one item which I guess overlooked a little bit in our presentation at times is actually how big and how much it grows our off balance sheet reserve. And if you look where we are today compared to last year, that’s off balance sheet reserve has increased by 93,000,000 to 761. Now 93,000,000 if you want to it’s not a portion of it.

What we can put 55% to our average collection rate, which is just shy in the long term of 80%. So let’s take a third of that that amount, actually more. Is actually if you want normalized earnings that we have to simply defer it. And so when you look at our results, you need to take into account that actually we’re still deferring a lot of income and continue to accumulate profit reserve that will show up in our accounts going going forward. And our ability when we collect the past due is also to negotiate a transaction with our debtors where we collect those LTIs and €40 and also when it’s allowed the interest on interest in ICDA.

Thank you.

Conference Operator: The next question is from Antonio Reale of Bank of America. Please go ahead.

Massimiliano Bingeri, Group CEO, BFF Banking Group: Hi. Good afternoon. It’s Antonio from Bank of America. Apologies if you’ve answered this question already, but I’ve been in between in between calls and so I missed the the first part of your of your presentation. My question is really around the past due and the contagion invoices which are down again, I think, by some 41,000,000 or so in the first half.

And the progression has been has been has been quite good on the organic side. And so my question, I know you’ve been open to both organic as well as inorganic initiatives for the bank. So what would be the pros and cons of you to explore a disposal of a securitization of what big chunk of your contagion invoices? Just because looking at it from the outside, and I’m conscious that we don’t have the full details, but it looks it looks extremely appealing as a way to really put to bed this issue. So any any thoughts you can share around just the the sort of the the the quality the pros and cons of of pursuing this option will be super helpful.

Thank you. Thanks, Antonio. Look, the when we look at our competing portfolio, we have, at the end of the day, a number of levels, right, where we can collect organically. And can you selling the portfolio even in a securitization where we would probably sell the junior north to achieve the consolidation of forever? It’s pretty strong capital impact as it went out.

Still needs some money on the table. And also, we want to be in a position where our collection processes are fine tuned so that a purchaser of that portfolio will clearly be even more comfortable about those invoices being collected in due course. We’re giving interest as well. And so the we are working on that. We’re working also on preparing for a potential exposure to disposal, which disposal, which also means thinking what portfolio we might want to dispose of because of that competing portfolio.

A portion is has a high multiplier if you want. So if we sell that, we actually get rid of proportionally larger share of the infected portfolio, so to speak. There are other portion of that portfolio where that effect is not as strong. So probably doesn’t make as much sense to to set. So in that consideration, the the business continues to generate a lot a lot of capital.

And we think at the moment, we don’t really need to pressure to put pressure on that. At the same time, we don’t want to be in a position where we need to take provision in that portfolio. So we want to be already ahead of that to potentially dispose of those of those assets. I think if you look at page 13, think about the comfort that it’s like that these are very dynamic portfolio. And the fact that we reduced in six months 40% of what we had at the arranged, by the way, a portion of it of which was was after the repurchase, after the reclassification.

So if we we have to look at actually the previous portfolio would be have gone down even further. Give the sense of how dynamic the portfolio is. Everything we have with the acceleration in legal activity that you like to mention before, put a lot of levers to deliver that in the overall portfolio. But we keep the optional also of filing of secretive secretive, which is probably most likely outcome that portfolio is one of our tools. And also the support from a regulatory point of view that makes the privatization of these easier, it’s also welcome because it it means actually we can execute on a shorter time frame than it was normally expected in the past.

Thank you very much.

Conference Operator: A reminder, if you have a question, please press star and 1. Again, if you have a question, please press star and 1. The next question is a follow-up of Simone Takirioti of Mediobanca. Please go ahead. Yeah.

Thank you. So a question on

Moneta Kiriowski, Analyst, Mediobanca: LTI over recovery and the impact of the scheduling. So the negative So it’s lower in the second in the second quarter, but it remains negative and relatively high. Do you expect an improvement on these on these metrics?

Massimiliano Bingeri, Group CEO, BFF Banking Group: We’ve seen already an improvement. Yeah. By definition now by definition, as you said, the second quarter is better than the first. And also remember that the rescheduling is also accounted at the moment of rescheduling, which means that actually that yield doesn’t translate into interest income in the following period. Now we certainly want to we we certainly aim to go substantially our API over the cover.

That’s not where we should be by any by any means. I think the team has a decent back line. And overall, our level of over recoveries is in terms of recovery rate, uh-huh, has been exactly in line with what we expected and what we’ve seen historically. So, yes, we expect to do more. Yes.

We expect to do more in the second half of the year, and we’re aiming to get a good result of of q four. Now that depends on not only analysis, but the same that we have we have moved from ordinary legal action to injunction to the accelerator. Those are the doubts because we’ve counted parties that are less will have less time to actually wait before they have to pay. Thank you.

Conference Operator: This concludes our

Massimiliano Bingeri, Group CEO, BFF Banking Group: Sorry. And I said to add to it, Simoneza, it’s a bit what I said before on the increase on the off balance sheet fund. So the fact that we actually had a low net of a recovery, but we increased our balance sheet fund by 93,000,000, of which a portion of 15 over 35 is is I think, 40% is what would be our standard over recovery. In fact, so we have created this value that we don’t see that account account yet, but will be actually recovered over time. And that’s something which is helpful to focus on.

But here we go now and compare to the year on year, you see the same level of health care recognition. So that’s an important data point, which I think gets overlooked as I mentioned before. Thank you. This

Conference Operator: concludes our question and answer session. I would like to turn the conference back over to Massimiliano Beringuei and to Zacchafica for any closing remarks.

Massimiliano Bingeri, Group CEO, BFF Banking Group: Thank you everybody for joining us today, later in the day, and I’m sure later also in your plans for holidays. We wish you a good day for the ones of you who are having one. And to have thank you for opportunity to speak with you and meet you in other investor meetings and calls over the next few months ahead of our two, three results. Thank you very much.

Conference Operator: The conference has concluded. Thank you for attending today’s presentation. You may now disconnect.

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