Bigbank's Unaudited Financial Results for Q3 2024

Bigbank's total gross loan portfolio grew to a record 2.1 billion euros by the end of the quarter, increasing by 158 million euros (+8%) quarter on quarter and by 451 million euros (+28%) year on year. All three main product lines posted solid quarter-on-quarter growth. The corporate loan portfolio grew by 46 million euros (+7%) to 703 million euros, the housing loan portfolio by 78 million euros (+17%) to 534 million euros and the consumer loan portfolio by 36 million euros (+4%) to 837...

Tartu, 25/10/2024 (informazione.it - comunicati stampa - economia)

On the deposit side, the term deposit portfolio showed solid growth, increasing by 86 million euros to 1.25 billion euros (+7%) in the third quarter. The savings deposit portfolio decreased by 82 million euros to 1.01 billion euros during the quarter. This was mainly because our deposit customers continued to switch their short-term savings products to 3- to 9-month term deposits to lock in an attractive interest rate for the chosen period. The Group's total deposit portfolio grew by 11 million euros (+0.5%) over the quarter and by 484 million euros (+27%) over the year to 2.27 billion euros.

Bigbank ended the first nine months of 2024 with a net profit of 27.6 million euros, compared with 29.4 million euros for the same period in 2023. In the third quarter, Bigbank earned a net profit of 11.8 million euros. Compared to the third quarter of 2023, net profit decreased by 0.6 million euros (-5%).

Group's net interest income increased compared to the third quarter of 2023: net interest income for the third quarter of 2024 was 27.7 million euros (Q3 2023: 26.1 million euros), 1.6 million euros (+6%) higher than a year earlier. Net interest income for the first nine months of 2024 was 79.1 million euros, up 6.3 million euros (+9%) year on year.

In the third quarter, the credit quality of the loan portfolio remained stable compared to the previous quarter. However, compared with the 2023 figures, there was some deterioration in the consumer and corporate loan portfolios, but this is due to a decline in quality in the first quarter of 2024. The quality of the housing loan portfolio remains excellent.

Net loss allowances for loans and provision expenses totalled 4.2 million euros. This represents a significant decrease of 2.1 million euros compared to the previous quarter (6.3 million euros) and a decrease of 0.8 million euros compared to the third quarter of 2023 (5.0 million euros).

The Group's income tax expense increased by 0.6 million euros to 2.4 million euros compared to the third quarter of 2023. The increase was driven by the introduction of advance income tax in Latvia at the end of 2023, which was only reflected in the figures for the fourth quarter of 2023 but will affect all quarters in 2024.

The Group's investment property portfolio, which includes both agricultural land and commercial real estate, stood at 48.7 million euros at the end of the third quarter. During the quarter, the Group sold agricultural land of 0.3 million euros.

Income statement, in thousands of euros	Q3 2024	Q3 2023	9M 2024	9M 2023
Net interest income	27,717	26,090	79,090	72,790
Net fee and commission income	2,316	2,097	6,725	6,116
Net income (loss) on financial assets	1,023	3,965	4,101	4,976
Net other operating income	-974	-1,033	-2,800	-1,686
Total net operating income	30,082	31,119	87,116	82,196
Salaries and associated charges	-6,813	-6,072	-19,576	-17,687
Administrative expenses	-2,827	-3,845	-8,781	-11,158
Depreciation, amortisation and impairment	-2,145	-2,001	-6,297	-4,361
Total expenses	-11,785	-11,918	-34,654	-33,206
Provision income (expense)	1,223	79	-106	-882
Profit before loss allowances	19,520	19,280	52,356	48,108
Net loss allowances on loans and financial investments	-5,410	-5,023	-19,293	-13,985
Profit before income tax	14,110	14,257	33,063	34,123
Income tax expense	-2,371	-1,887	-5,503	-4,169
Profit for the period from continuing operations	11,739	12,370	27,560	29,954
Income (loss) from discontinued operations	0	61	29	-557
Profit for the period	11,739	12,431	27,589	29,397



Statement of financial position, in thousands of euros	30 Sept 2024	30 June 2024	31 Dec 2023 restated*	30 Sept 2023
Cash and cash equivalents	475,284	626,081	518,672	406,837
Debt securities at FVOCI	14,992	9,907	15,400	14,942
Loans to customers	2,059,625	1,902,001	1,662,002	1,608,720
Other assets	87,126	89,255	91,324	88,709
Total assets	2,637,027	2,627,244	2,287,398	2,119,208
Customer deposits and loans received	2,274,269	2,264,137	1,946,314	1,791,581
Subordinated notes	83,437	88,148	76,109	71,490
Other liabilities	14,585	22,113	20,182	18,909
Total liabilities	2,372,291	2,374,398	2,042,605	1,881,980
Equity	264,736	252,846	244,793	237,228
Total liabilities and equity	2,637,027	2,627,244	2,287,398	2,119,208

Commentary by Martin Länts, chairman of the management board of Bigbank AS: "The third quarter of 2024 marked the continuation of stable and strategic growth for Bigbank, highlighted by a significant milestone as our gross loan portfolio surpassed 2 billion euros for the first time, reaching 2.1 billion euros. Our bank's strategy focuses on stable growth in the home loan and business loan product lines, and this is reflected in the results. In the third quarter, our gross portfolio grew by 158 million euros (+8%), marking the largest quarterly growth in Bigbank's history. I would particularly highlight the home loan portfolio's quarterly growth of 78 million euros (+17%), bringing it to a total of 534 million. In a declining interest rate environment, we are also pleased with the 6% growth in net interest income compared to Q3 2023 and the 9% year-on-year increase for the first nine months."

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 30 September 2024, the bank's total assets amounted to 2.6 billion euros, with equity of 264,7 million euros. Operating in nine countries, the bank serves more than 150,000 active customers and employs over 500 people. The credit rating agency Moody's has assigned Bigbank a long-term deposit rating of Ba1, as well as a baseline credit assessment (BCA) and adjusted BCA of Ba2.

Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
Email: [email protected]
www.bigbank.ee

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