November was a stable and profitable growth month for Bigbank.
The greatest growth was once again shown by the home loans portfolio, increasing by over 25 million euros in a month. The business loans portfolio grew by more than 16 million euros, which is also a solid result. The consumer loans portfolio increased by nearly 2 million euros. Overall, the loan portfolio grew by almost 44 million euros compared to the end of October, which represents an average level result for 2024.
The declining interest rate environment continued to impact deposit collection. While the 6-month Euribor was still at 2.9% at the beginning of the month, by the end of the month, it had fallen below 2.7%. This indicates that the trends of the last quarter are continuing and deepening. The falling Euribor brings relief to loan customers with floating interest rates, but for banks, it means declining interest income. At the same time, deposit interest rates are also decreasing, but not at the same pace as the Euribor decline. As a result, the growth of the deposit portfolio slowed, increasing by 15 million euros in November.
The credit quality of the loan portfolio remains at the level of previous months. The short-term deterioration in quality, which ended at the close of the first quarter, is behind us, and the proportion of non-performing loans in the total loan portfolio remains low. The costs for loan and financial investment impairments and provisions amounted to 1.9 million euros in November, which is below the monthly average for 2024.
November's net profit of 3.3 million euros was a solid result. Compared to the cumulative results for the first 11 months of the previous year, Bigbank's net profit decreased by 2.0 million euros. The main reasons for this decline are the increase in net loan and financial investment impairments and provisions. Additional impact has also come from salary and income tax expenses, primarily due to the income tax obligation imposed on credit institutions in Latvia, which has been in effect since December 2023.
Bigbank's financial results for November 2024:
- Deposits from customers and loans received increased by 446 million euros year-on-year, reaching 2.4 billion euros (+23%).
- Loans to customers increased by 503 million euros year-on-year, reaching 2.1 billion euros (+31%).
- Net interest income was 8.9 million euros in November, totalling 97.2 million euros for the first 11 months of the year. Compared to the same period last year, the growth for the first ten months was 6.0 million euros (+7%).
- Net loss allowances for loans and financial investments and provision expenses amounted to 23.2 million euros for the first 11 months of the year. Compared to the same period last year, this was an increase of 4.3 million euros or 23%.
- November’s net profit was 3.3 million euros. The cumulative profit for the first 11 months was 33.4 million euros, decreasing by 2.0 million euros or 6% compared to the same period in 2023.
- Return on equity was 14.6% in November.
| Income statement, in thousands of euros | Nov 2024 | YTD24 | YTD23 | Difference YoY | |
| Total net operating income, incl. | 9,777 | 106,198 | 102,280 | 3,917 | +4% |
| Net interest income | 8,925 | 97,208 | 91,170 | 6,038 | +7% |
| Net fee and commission income | 802 | 8,335 | 7,565 | 770 | +10% |
| Total expenses, incl. | -3,858 | -42,703 | -42,239 | -464 | +1% |
| Salaries and associated charges | -2,412 | -24,377 | -21,711 | -2,666 | +12% |
| Administrative expenses | -795 | -10,663 | -13,780 | 3,117 | -23% |
| Profit before loss allowances | 5,919 | 63,495 | 60,042 | 3,453 | +6% |
| Net loss allowances on loans and financial investments and other provisions | -1,890 | -23,214 | -18,898 | -4,315 | +23% |
| Income tax expense | -753 | -6,872 | -5,101 | -1,771 | +35% |
| Profit for the period from continuing operations | 3,276 | 33,409 | 36,042 | -2,633 | -7% |
| Profit or loss before tax from discounted operations | 0 | 29 | -557 | 586 | |
| Profit for the period | 3,276 | 33,438 | 35,485 | -2,047 | -6% |
| Business volumes, in thousands of euros | Nov 2024 | YTD24 | YTD23 | Difference YoY | |
| Customer deposits and loans received | 2,372,949 | 2,372,949 | 1,927,322 | 445,627 | +23% |
| Loans to customers | 2,148,452 | 2,148,452 | 1,645,174 | 503,278 | +31% |
| Key figures | Nov 2024 | YTD24 | YTD23 | Difference YoY | |
| ROE | 14.6% | 14.1% | 17.0% | -2.9pp | |
| Cost / income ratio (C/I) | 39.5% | 40.2% | 41.3% | -1.1pp | |
| Net promoter score (NPS) | 55 | 57 | 58 | -1 | |
Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 30 November 2024, the bank's total assets amounted to 2.7 billion euros, with equity of 271 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
