Shares in BFF Bank SpA dropped more than 6% on Tuesday after press reports said Milan prosecutors had launched a preliminary investigation into alleged false accounting at the lender. The market reaction adds to pressure on a stock that has already faced accounting and supervisory scrutiny since early February.
The bank said it had been aware of preliminary investigations since the end of 2023, that the matter remains at an investigative stage, and that it has cooperated from the outset. A brokerage note from Kepler Cheuvreux reiterated that the bank "has cooperated from the beginning" and added that no individuals were reportedly under investigation.
According to the same broker note, the probe appears to be connected to a 2024 inspection by the national supervisor, which questioned BFF's classification of public-sector exposures and its approach to days past due under the new definition of default. Press coverage also linked the inquiry to adjustments the bank made on Feb. 2, when management restated parts of its 2024 accounts.
In that Feb. 2 restatement, BFF adjusted an allocation error related to roughly c54 million of factoring collections received before June 2023. The correction translated into a c14 million reduction in equity. Management described the matter as an operational allocation problem and said it did not involve missing cash.
In a public statement, BFF said the cleanup actions "stem from internal management assessments and were not prompted by any regulatory requests push," reiterating that the processes were self-driven. The bank added it would update the market "if required under applicable regulations."
Trading in BFF shares had already been volatile earlier in the week. On Monday, trading in the stock was temporarily suspended because of excessive downside volatility after news of the investigation circulated. The share price reopened near the end of that session and finished the day down about 12%.
By Feb. 16 the shares were quoted at c3.84, implying a market capitalisation of c722.7 million. At those levels, Kepler Cheuvreux noted the stock traded at roughly 4.5 times estimated 2026 earnings and implied a potential dividend yield close to 20%, should the bank resume distributions. The broker maintained a "hold" recommendation and a target price of c5.
Financial results referenced by the bank show a restated net profit for full-year 2024 of c70.1 million, down from c215.7 million in 2023. Revenues for the period fell 25.2% year-on-year to c347 million. BFF's common equity tier 1 ratio was reported at 14.1% in 2025 and is forecast to be 14.2% for 2026. Loan loss provisions rose to c81.4 million in 2025, compared with c5.6 million in 2024.
The preliminary probe and the bank's prior accounting adjustments highlight several areas of focus for investors and regulators alike: the treatment of public-sector exposures, the interpretation of days past due under new default definitions, and the internal allocation processes that led to the restatement. BFF's emphasis on cooperation and on describing the issue as operational rather than involving missing cash will be central to how investors evaluate the durability of the lender's balance sheet and governance controls.
For market participants, the immediate impact has been heightened share-price volatility and renewed attention from analysts monitoring valuation, capital ratios, and the potential resumption of dividend payments. How the investigation evolves, including whether it remains at a preliminary stage or progresses further, will be an important determinant of near-term investor sentiment.
Clear summary
Milan prosecutors have opened a preliminary false-accounting probe into BFF Bank, press reports say. The bank states it has known of preliminary investigations since late 2023, has cooperated from the beginning, and treated recent adjustments as operational allocation corrections. The inquiry is thought to relate to a 2024 supervisory inspection and a Feb. 2 restatement that reduced equity by c14 million.