(Bloomberg) -- BFF Bank SpA climbed after the Italian lender reclassified its loan portfolio to address Bank of Italy requests amid a probe.
The shares soared as much as 14% in Milan trading after the bank increased its past-due exposures by €1.36 billion ($1.5 billion) and its risk-weighted assets by €1.78 billion as of the end of March.
The shares had plummeted in May after regulators ordered a temporary halt on profit distribution following a review of how the bank classifies its credits. “While there aren’t significant new elements communicated by the bank, ‘no news, good news,’” Deutsche Bank analyst Giovanni Razzoli said in a note.
BFF said it reclassified its loan portfolio “for prudential purposes” and continues to focus on RWA optimization and strengthening the collection process. The bank also undertook measures to address compliance findings on corporate compensation practices, it said in a statement.
The lender’s senior preferred bonds due in 2029 edged higher by almost a point to 97 cents on the euro, while its perpetual notes stayed unchanged at 92, according to Bloomberg pricing.
BFF, founded by pharmaceutical companies in 1985 and now present in nine European countries, specializes in purchasing and managing credits owed to public administrations.
--With assistance from Giulia Morpurgo.
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