Italian bank BFF has 'full' confidence in CEO after regulator concerns hit shares

BFF Bank SpA

10/05/2024 13:33

MILAN, May 10 (Reuters) - Italy's BFF Bank  BFF.MI  said
on Friday it has full confidence in CEO Massimiliano Belingheri
and has started talks with the Bank of Italy, as its shares
plunged over 30% on concerns about how it classifies state
credits.
    The shares had already fallen 10% on Thursday after BFF said
it had been ordered by the Bank of Italy, which is the banking
regulator, to suspend dividends and bonus payments. 
        The regulator had told BFF that the way BFF classified
state credits was not consistent with the European Banking
Authority's guidelines on how to apply the definition of
default. 
    The regulator's concerns centred in particular on how the
lender was calculating delayed payments.
    "The board of directors confirmed its full confidence in the
CEO, Massimiliano Belingheri, and initiated a frank and
constructive dialogue with the supervisory authority, in
order to arrive at a prompt resolution of the findings," BFF
said in a statement.
    BFF's shares were down 29.8% at 7.72 euros at 1220 GMT.
    Active in nine countries, BFF specialises in buying credits
that companies have with the public administration and the
national health service. It expanded into depositary services
following a 2021 merger with DEPObank.
        
  

 (Reporting by Elvira Pollina, editing by Susan Fenton)
 ((elvira.pollina@thomsonreuters.com;))