Bigbank AS Results for October 2024

Bigbank's loan portfolio continued to grow strongly in October, surpassing 2.1 billion euros by the end of the month. Notably, the home loan portfolio saw a growth of 30 million euros, marking the highest monthly sales figure of 2024 to date. In addition, both business and consumer loan portfolios increased.The decline in the Euribor accelerated further in October. At the beginning of the month, the 6-month Euribor rate was close to 3.1%, but by the end of the month, it had fallen below 2.9%...

Tartu, 08/11/2024 (informazione.it - comunicati stampa - economia)

Bigbank's loan portfolio continued to grow strongly in October, surpassing 2.1 billion euros by the end of the month. Notably, the home loan portfolio saw a growth of 30 million euros, marking the highest monthly sales figure of 2024 to date. In addition, both business and consumer loan portfolios increased.

The decline in the Euribor accelerated further in October. At the beginning of the month, the 6-month Euribor rate was close to 3.1%, but by the end of the month, it had fallen below 2.9%. The 6-month Euribor was last below 3% in January 2023. This indicates that the trends of recent quarters continue and are intensifying. The falling Euribor brings relief to loan customers with floating interest rates but means declining interest income for banks. At the same time, deposit interest rates are also decreasing, though not as rapidly as the Euribor. On the deposit side, clients are increasingly looking for short-term fixed deposits, but interest in savings deposits also grew in October compared to previous months. Overall, the deposit portfolio increased by 83 million euros, the second-best monthly result in 2024.

The credit quality of the loan portfolio remains at the level of previous months. The short-term quality deterioration that ended in the first quarter is behind us, and the ratio of non-performing loans in the overall loan portfolio remains low. The costs for loan and financial investment impairments and provisions amounted to 1.9 million euros in October, below the monthly average for 2024.

The net profit of 2.6 million euros in October was a satisfactory result. Compared to the cumulative results of the first ten months of last year, Bigbank's net profit has decreased by 2.1 million euros. The primary factors behind this decline have been the increase in net loan and financial investment impairments and provisions, as well as higher payroll and income tax expenses. The latter effect is mainly due to the corporate income tax obligation imposed on credit institutions in Latvia, which has impacted financial results since December 2023.

Bigbank's financial results for October 2024:

Bigbank AS ( www.bigbank.eu ), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 October 2024, the bank's total assets amounted to 2.7 billion euros, with equity of 267.6 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:  Argo.Kiltsmann@bigbank.ee  
www.bigbank.ee