a bank to bet on. Dividend is amazing

An excellent opportunity, PUBLISHED:

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Piazza Affari BFF Bank

Eyes on a security to put in the portfolio: the bank’s prospects are excellent. The dividend yield is mind-boggling.

One more sign for BFF Bank, which also today tries to push itself forward to Piazza Affari, climbing for the third day in a row.

Piazza Affari: BFF Bank up for the third session in a row

After closing yesterday’s session with a progress of more than one percentage point, the stock today is more cautious and in the last minutes it changes hands at € 7,055, just below the intraday tops, with an increase of 0.28% or more. 100 thousand shares transited on the market so far, I count the average of the last 30 days equal to about 500 thousand.

BFF Bank: ideas from a roadswho with management

BFF Bank was the subject of attention from Equita SIM, whose analysts reported in a note the feedback from a recent roadshow recently organized with management.

Among the main points, it should be noted that the trend in terms of volumes is showing extremely solid also in the third quarter, confirming that BFF Bank’s core business is favorably exposed to both a rise in rates and a deterioration in the macro scenario.

In the current situation, BFF Bank sees room to increase product penetration, especially abroad.
Signs of improvement are emerging with regard to default interest transactions.

BFF Bank Bank: focus on volumes and rate hikes

The trend in BFF Bank volumes is expected to benefit positively from the current highly inflationary environment, as invoices are bought at nominal value.

In addition, with the increase in rates, it is easier to repricing customers in terms of discounts at which invoices are acquired.

The roadshow also revealed that the increase in the ECB refinancing rate, on which the default interest is calculated, is expected to contribute positively to the interest margin starting from the next reset date of January 1, 2023, leading to an immediate repricing both on the new LPIs and on the stock due, but not yet cashed.

The increase in interest rates will also be a support element as regards the contribution to the interest margin of the securities portfolio, recalling that at the end of the first half of this year the bank had 2.8 billion euros of fixed-rate securities with yield 0.2%, against a current yield of the 5-year BTP greater than 3%.
BFF does not see liquidity issues related to the Custodian Bank’s business.

BFF Bank: Equita comments on the messages from the roadshow

According to Equita SIM analysts, the messages emerging from the roadshow are overall in line with those provided with the presentation of the second quarter results and confirm the excellent commercial momentum of BFF Bank in the current market context.

BFF Bank: for analysts it is buy. Dividend is fabulous

The Milanese SIM reiterates its positive view on the stock, with a “buy” recommendation and a target price of € 9.2 for several reasons.

The analysts cite first of all the factoring business towards the public administration which is favorably exposed to a scenario of greater uncertainty on the macro front, without issues relating to an increase in the cost of risk.

Secondly, the interest margin is expected to benefit significantly from the rise in rates, without forgetting the attractive valuations of the stock.

Finally, another key aspect of BF Bank should not be overlooked, represented by the rich remuneration for shareholders, just think that the expected dividend yield for the year 2022 is over 11%.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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