The total assets of BIGBANK increased by 246.3 million kroons in 3rd quarter of
2008 amounting to 2.9 billion kroons by the end of the quarter. The bank
increased the share of cash and equivalents in the balance sheet amounting to
16.1% of the total balance sheet or 473.1 million kroons by the end of the
quarter. Loan portfolio formed 81.1% of the total balance sheet increasing by
7.6% during the quarter.
In third quarter the net profit of BIGBANK Group amounted to 28.7 million
kroons. Net profit since the beginning of the year amounts to 117.9 million
kroons. The profitability of third quarter was most influenced by forming
additional and conservative provisions related to changes in Latvian
macroeconomic environment.
The amount term deposits increased by 37.1% in third quarter amounting to 567.4
million kroons as of end of the quarter.
The growth of Group loan portfolio was held back by changes in macroeconomic
environment and related negative change in consumer sentiment as well as
BIGBANK's conservative liquidity and credit policy. Loan portfolio has
increased the most in Lithuania, where the branch of BIGBANK has been operating
since third quarter of 2007 and the potential for market share increase is the
highest. In Lithuania the loan portfolio increased by 46.5% during the quarter
amounting to 189.7 million kroons.
There have not been significant changes in the customers' payment behaviour
during the quarter. The share of customers' overdue loans of more than 90 days
in the total loan portfolio has increased; the growth indicates the regular
proportional share of the high loan sales volume in 2007. The share is also
influenced by the considerably lower loan sales volume in 2008. As a positive
trend, the share of short-term payment delays has considerably decreased.
Impairment losses formed 40.7 million kroons in third quarter, as a positive
influence of increase in overdue loan portfolio, other operating income (mostly
consisting of enforcement income) have considerably increased. Other operating
income amounted to 35.9 million kroons in the quarter and 91.2 million since
the beginning of the year, increasing 2.6 times compared to the same period of
previous year.
Balti Investeeringute Grupi Pank AS, operating in Estonia under the trade name
BIGBANK, is a specialised credit institution based on Estonian capital. BIGBANK
has branches in Latvia and Lithuania and is offering on cross-border bases
services also in Finland. BIGBANK employs more than 500 people, the bank has 45
offices in the Baltic countries. In Estonia and Latvia, the bank's services are
also available in post network.
BIGBANKS's bonds are listed in Tallinn and Stockholm stock exchanges.
Additional information:
Piret Raudsepp
CFO
Phone: 372 735 0923
piret.raudsepp@big.ee
