BFF Bank up 10% on answers to Bank of Italy over credit classification dispute

BFF Bank SpA

12/07/2024 11:20

** Shares in Italy's BFF Bank  BFF.MI  rise around 10% after it
replied to Bank of Italy's inspection into how it was
classifying credits towards the state
    ** Bank of Italy had halted the bank from paying dividend
and bonus in May; its shares are down 17% since then
    ** Following the proposed reclassification, BFF Bank's pro
forma CET1 ratio would stand at 11.4%, above 9% set by banking
regulators, but below the bank's 12% target
    ** Bank's board generated a one-off pro forma additional
capital of 105 million euros ($114.2 million) by increasing the
accrual rate of late payment interest to 65% from 50%
    ** The bank confirmed the payment of upcoming additional
Tier 1 coupon on July 19
    ** It disclosed for the first time its historic weighted
average collection rate of 77.5%, which Banka Akros appreciates
as it is higher than expected, thus reducing the level of risk
    ** However, "it will need to build CET1 capital above 12% to
restore its former dividend policy," Banka Akros says, adding
Bank of Italy comments are expected for October
    

($1 = 0.9191 euros)

 (Reporting by Alberto Chiumento)
 ((Alberto.Chiumento@thomsonreuters.com;))