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Bigbank’s Unaudited Financial Results for Q1 2023

Bigbank’s gross loan portfolio increased by 73 million euros to a record-high 1.4 billion euros (+5%) in Q1. The home loan portfolio grew by 22 million euros (+10%) to 246 million euros. The corporate loan portfolio increased by 40 million euros (+9%) to 513 million euros and the consumer loan portfolio grew by 12 million euros (+2%) to 674 million euros during the quarter. Compared to Q1 2022, the gross loan portfolio increased by 413 million euros (+41%).

The quality of the loan portfolio remained high in Q1. The share of loans over 90 days past due was just 1.4% at the reporting date.

The deposit portfolio grew even faster than the loan portfolio, increasing by 130 million euros (+10%) to 1.5 billion euros during the quarter. Customers’ interest in term deposits increased visibly and the term deposit portfolio grew by 99 million euros (+13%) to 840 million euros in Q1. The savings deposit portfolio increased by 31 million euros (+5%) to 658 million euros. Compared to Q1 2022, the deposit portfolio grew by 482 million euros (+47%).

Bigbank earned a net profit of 9.6 million euros in Q1 2023, which is 51% more than the 6.4 million euros earned in Q1 2022. Bigbank’s return on equity for Q1 2023 was 18.0%.

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Profit before loss allowances and income tax for Q1 was 14.7 million euros. Expenses on credit loss allowances were 3.9 million euros. Although the loan portfolio grew significantly, expenses on credit loss allowances increased by 0.1 million euros (+4%) compared to Q1 2022.

Net interest income for Q1 grew by 3.4 million euros (+18%) year on year, rising to 22.5 million euros.

The Group’s investment property portfolio, which includes both agricultural land and commercial real estate, stood at 46.5 million euros at the end of the period. There were no changes in the investment property portfolio during the quarter.

Income statement, in thousands of euros

Q1 2023

Q1 2022

3M 2023

3M 2022

Net interest income

22,519

19,120

22,519

19,120

Net fee and commission income

1,973

1,779

1,973

1,779

Net income (loss) on financial assets

572

-110

572

-110

Net other operating income

-117

-92

-117

-92

Total net operating income

24,947

20,697

24,947

20,697

Salaries and associated charges

-5,652

-4,927

-5,652

-4,927

Administrative expenses

-3,523

-3,886

-3,523

-3,886

Depreciation, amortisation and impairment

-1,013

-881

-1,013

-881

Other gains (losses)

5

-10

5

-10

Total expenses

-10,183

-9,704

-10,183

-9,704

Profit before loss allowances

14,764

10,993

14,764

10,993

Net loss allowances on loans and financial investments

-3,909

-3,763

-3,909

-3,763

Profit before income tax

10,855

7,230

10,855

7,230

Income tax expense

-1,113

-769

-1,113

-769

Profit for the period from continuing operations

9,742

6,461

9,742

6,461

Loss from discontinued operations

-121

-77

-121

-77

Profit for the period

9,621

6,384

9,621

6,384


Statement of financial position, in thousands of euros

31 March 2023

31 Dec
2022

31 March 2022

Cash and cash equivalents

259,014

173,447

124,497

Debt securities at FVOCI

18,531

19,213

42,588

Loans to customers

1,422,702

1,349,811

1,005,047

Other assets

104,425

103,918

97,642

Total assets

1,804,672

1,646,389

1,269,774

Customer deposits and loans received

1,507,115

1,376,934

1,052,341

Subordinated notes

62,908

40,113

15,216

Other liabilities

17,450

15,912

16,261

Total liabilities

1,587,473

1,432,959

1,083,818

Equity

217,199

213,430

185,956

Total liabilities and equity

1,804,672

1,646,389

1,269,774

Commentary by Martin Länts, chairman of the management board of Bigbank AS:

“Based on the first quarter, all is well with Bigbank’s financial results and the growth in our loan and deposit portfolios. We are pleased that we have been able to be a good partner for many home buyers as well as corporate customers starting new projects. Despite the uncertain external environment and the continuing rise in interest rates, we do not see an increase in the number of debtors or a decrease in loan volumes. At the end of last year, we started issuing VISA credit cards, which have been well received by consumers, and as Bigbank has been a market leader in paying fair deposit rates, the volume of our term deposits has been growing steadily.

The bank’s successful performance has been supported by the 42.7 million euros of additional capital raised through our three bond issues over the last two quarters. We are deeply grateful to all investors for their trust and expect to sustain growth that exceeds the market average.”

Bigbank AS (www.bigbank.eu) is an Estonian capital-based bank specialising in loans and deposits for private and business customers. In addition to operations in Estonia, the bank has branches in Finland, Sweden, Latvia, Lithuania, and Bulgaria and offers its products on a cross-border basis in Austria, Germany, and the Netherlands. Bigbank’s total assets exceed 1.5 billion euros.

Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee

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