BFF Bank S.p.A.

Good afternoon and welcome to the BUSF Banking Group's first quarter 2025 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 your touch-tone phone. To withdraw your question, press star and two. Please note this event is being recorded. I would like to turn the conference over to Mr. Massimiliano Bellingeri, Group CEO, and Giuseppe Sica, Group CFO. Please go ahead, gentlemen.

Hi, everybody.

Thanks for joining us today for the reporting of first quarter results. There are still more important events happening in Rome. I appreciate that you are here with us listening to our results. We are pleased to report a good start of the year. in any respect, with adjusted net profit of 35 billion, which reminded our target despite the high rescheduling of the taxing portfolio, which is revenue deferred and will be recovered in the following quarters. Taxing has a strong start of the year, with profit before tax up 9% year over year, and long book, which has grown at 5% year over year. is the index in growth, with double-digit growth of 10% plus, and we report the highest level of volumes At the same time, because we didn't collect as much in terms of IPIs what we used in the first quarter, we continued to accumulate our off-dash reserves. We had an increase of over 81 million compared to June when we changed the accrual account. The strength of the business continues also in terms of liquidity. We have 8.5 billion of deposits and a number-to-deposit ratio of 68%. On the important issue of PADU, we continue our work to reduce the stock of PADU, which is down 5% from December. Importantly, we have $190 million which is 15% of the stock of past due in flow period, which is expected then to come off the past due calculation over the next quarter. That's more than double the level that we had before. Containing invoices are now down an additional 25 million compared to the previous quarter and over 100 million reductions since the recesses. As capital, therefore, continues to increase. We have a CC1 ratio of 13.7%, which is above our target significantly. It's above the level we had before we reclassified the portfolio in June of last year. Another important thing to notice, our bond portfolio swung in a positive territory with an improvement of 70 million euro a year, and had to collect and give a sense of the future profitability of the portfolio, and expect to launch all the public gathering activities in Greece at the end of this quarter. If we move to page 4, on the details of the balance sheet, we are highlighting the The long book is 5.8 billion, which is a record high for the first quarter. The bond portfolio continues to shrink following our strategy, and as I mentioned, we have a positive market-market now of 12.5 million, compared to 967 million of last year, given the dynamics on interest rates and the credit spread of Italy. Deposits continue to accrue in transaction services, and therefore we have managed outflows in our online deposits that we manage to, for example, in terms of objectivity, we are fully compliant with the mail requirements and you see the difference in our bonds issued, issued as a leap, but also in the net interest income of the group. The capital generation has been strong, as I mentioned, with 143 bits of capital generated in the last quarter.