BNF Bank reports resilient first-half 2025 results

Banking is entering a new era. Digital transformation is reshaping the way we operate, enhancing customer experience, and positioning us for future growth. As banks modernise legacy systems, embrace cloud-based platforms, and adopt AI-driven tools, employees and stakeholders alike must adapt to new workflows, new roles, and new expectations.

At BNF Bank, the past six months have been defined by change and challenge. We undertook one of the most ambitious projects in our history: the complete overhaul of our customer-facing digital platforms, alongside the replacement of our core banking system – the very heart of our operations along with a new card provider.

Despite extensive preparation, the transition was more difficult than anticipated. Customers experienced disruption to services, and for that we offer our sincere regret. This was not the outcome we had hoped for, and we fully understand the frustration and inconvenience caused.

Almost five months after go-live, most major issues have been resolved, and system stability is improving steadily. Our teams remain fully committed to addressing the remaining challenges and to ensuring that our platforms consistently deliver the standards of service our customers expect and deserve.

On 28th August, we published our Condensed Interim Financial Statements for the first half of 2025. Despite the operational hurdles, the results reflect resilience. The bank retains a strong financial position, with healthy liquidity levels and continued growth in customer deposits. Deposit growth highlights sustained customer confidence, while lending activity demonstrates the strength of our long-term strategy.

As of 30th June 2025:

• Total customer deposits stood at €1,230.8M, representing 1.4 per cent growth in the first six months of 2025.
• Total assets amounted to €1,415.5M, of which loans and advances to customers stood at €1,049.2M representing a growth of 3.8 per cent in the first six months of 2025.
• Asset quality remained strong, with a non-performing loans ratio of 2.4 per cent.

Profitability was naturally impacted by lower interest rates and significant investment in stabilising systems and supporting customers through the transition. These are short-term costs, part of a broader strategy to strengthen our infrastructure, improve customer experience, and enable sustainable growth.

Operating expenses in the first half of 2025 totalled €14.6M, 16 per cent higher than the same period in 2024. The increase is largely attributable to investment in technology, system stabilisation, and enhanced customer support. Importantly, these costs are temporary and are expected to subside in the second half of the year.

Crucially, we are not only maintaining stability but also achieving growth. Our robust financial position enables us to advance with confidence on both our capital and strategic plans – maintaining resilience while financing profitable expansion.

Among recent initiatives, we relaunched our Student Package, a clear demonstration of our commitment to the next generation. Tailored for young adults, it provides flexible and secure banking solutions that align with their lifestyles. At the same time, we continue to welcome new customers through our digital onboarding Open an Account platform, part of our vision to deliver a consistent, convenient experience across every channel.

Going forward, the benefits of our new system will become evident. By taking the decision to remove legacy systems, the objective is to streamline operations, and reduce manual processes, all of which contribute to faster and more reliable banking services. The system’s scalability will allow us to adapt more easily to growth and handle increased transaction volumes and customer numbers without compromising performance. The new system will also lay the foundation for future product rollouts, enabling us to respond swiftly to market demands and deliver new services with greater speed and agility.

Ultimately, these improvements are designed to empower customers – giving them better tools to make informed financial decisions, alongside greater flexibility and convenience.

This transformation has tested our resilience but also reaffirmed our commitment to building a future-ready bank. The stabilisation of our systems, the expansion of our digital capabilities, and the continued trust of our customers point to a positive trajectory.

We recognise the lessons learned and will use them to guide us forward. We are deeply grateful to both our customers and employees for their patience, trust, and support throughout this journey.

This transformation is not an endpoint – it is a launchpad. Together, we are building a stronger, smarter, and future-ready BNF Bank.