Earnings call transcript: BFF Banking Group Q3 2026 profit falls as capital pressure grows

BFF Banking Group reported a 24% decline in adjusted net profit for the first nine months of 2026, with a figure of EUR 90 million compared to EUR 118.75 million in the same period last year. The return on equity dropped to 19%, which is lower than the 27% in the first half of 2026. The bank's CET1 capital ratio improved to 11.2% after management actions, including bond sales and portfolio transactions.

While the Securities Services and Payments divisions grew, the Factoring & Lending business continued to face challenges, contributing to the overall decline. BFF's transaction services businesses remained strong, with an 8% increase in commission income for Securities Services and a 4% increase for Payments. However, the bank anticipates further calendar provisioning increases in 2027 and 2028, and the front book in the Factoring & Lending sector is showing signs of improvement.

Despite the challenges, BFF shares are trading near their 52-week high, suggesting that while the stock has experienced a decline, it remains undervalued relative to its fair value estimates.