In November 2009 BIGBANK as the first Estonian bank opened a branch in Finland,
starting to provide the opportunity of term depositing on the local market. The
objective for 2010 would be to start selling loan services in addition to
depositing services and to expand the network of offices in this region.
The operating volumes of BIGBANK AS did not change considerably in the 4th
quarter of 2009. The volume of total assets reduced by 12.8 million kroons in
the 4th quarter of 2009 and receivables from customers reduced by 52.3 million
kroons. The reduction in the loan portfolio is associated with the continuously
low consumer confidence regarding the future, which reduces the customers'
interest in taking loans and at the same time BIGBANK's criteria for granting
loans are continually conservative.
As of 31 December 2009 the volume of cash and equivalents totalled 551.1
million kroons (19.8% of total assets), at the end of the 3rd quarter the
respective figure was 514.9 million kroons (18.4% of total assets).
The share of term deposits has increased and the share of bonds has reduced in
the structure of liabilities. As of the end of the 4th quarter term deposits (1
173.2 million kroons, increase of 395.0 million kroons during the quarter) and
bonds (780.2 million kroons, reduction of 393.8 million kroons during the
quarter) form the largest share of liabilities. As of the end of the 4th
quarter the total volume of liabilities amounted to 2 107.6 million kroons,
reducing by 22.9 million kroons during the quarter. As of the end of the
quarter the weighted average maturity of interest-bearing liabilities was 14.3
months and weighted average interest rate was 7.7% (9.6% as of the end of
2008). The weighted average interest rate has reduced above all in connection
with the decrease in Euribor and the increase in the share of deposits in the
structure of liabilities. In the 4th quarter the interest expenses amounted to
47.4 million kroons, increasing by 2.6 million kroons compared to the previous
quarter.
In the 4th quarter of 2009 the interest income amounted to 133.9 million
kroons, decreasing by 16.3 million kroons compared to the previous quarter. The
reduction of the interest income is related to the reduction in loan portfolio.
In the 4th quarter the revenue related to debt collection proceedings amounted
to 26.8 million kroons, compared to 30.6 million kroons in the previous
quarter.
The payment behaviour of customers deteriorated to some extent in the 4th
quarter, the main reason for which might be the decrease in incomes and the
growth of unemployment. At the same time as a result of active debt management
the number of customers performing payments increased in the portfolio in
payment delays. As of the end of the 4th quarter, the volume of loans with
payment delays over 90 days totalled 872.8 million kroons (38.9% of the total
loan portfolio), reducing by 8.6 million kroons during the quarter.
The impairment allowance costs totalled 60.2 million kroons in the 4th quarter.
As of 31 December 2009 the total volume of impairment allowances amounted to
438.0 million kroons.
In the 4th quarter the net profit of the reporting period amounted to 10.9
million kroons (26.8 million kroons in the 4th quarter of 2008). Profit before
impairment allowances totalled 71.1 million kroons in the 4th quarter (in the
previous quarter the respective figure was 97.4 million kroons).
As of the end of the 4th quarter of 2009 equity totalled 667.6 million kroons
(579.4 million kroons as of the end of 2008). The share of equity amounted to
24.3% of total assets. Capital adequacy formed 26.4% as of 31 December 2009
(19.3% at the beginning of the year).
As of the end of 2009 there were 394 employees working in BIGBANK, including
168 in Estonia, 155 in Latvia, 69 in Lithuania and 2 in Finland. As of the
year-end, the Group had 28 offices, of which 10 offices were located in
Estonia, 7 in Latvia, 10 in Lithuania and 1 in Finland.
In 2009 the fees paid to the Management Board of the parent company (taxes
included) amounted to 4.844 million kroons and the fees paid to the members of
Supervisory Council (taxes included) totalled 0.941 million kroons.
More detailed information on the financial data of BIGBANK is available in the
annual report of the consolidation group.
For further information please contact:
Targo Raus
Chairman of Management Board
targo.raus@bigbank.ee
Tel: +372 735 0923
