The operating volumes of BIGBANK AS did not change considerably in the 2nd
quarter of 2009. The volume of total assets increased by 18.8 million kroons in
the 2nd quarter of 2009 and receivables from customers reduced by 18.2 million
kroons. The reduction in the loan portfolio is associated with the surrounding
economic environment. On one hand a considerably reduced consumer confidence
reduces the customers' interest in taking loans and at the same time BIGBANK's
criteria for granting loans are continually conservative.
Although the amount of issued loans increased to some extent in the 2nd
quarter, BIGBANK AS does not forecast the loan sales volumes to increase to the
previous level in 2009 and respectively the sales network has been optimised in
order to respond to today's loan sales volumes. The number of sales offices has
been reduced by 18 (including by 9 in Estonia, 8 in Latvia, and 1 in Lithuania)
and the number of employees has reduced by 107 employees (including by 50 in
Estonia, 51 in Latvia and 6 in Lithuania). The aim of restructuring is to keep
optimal and efficient sales and support structure and to retain the
profitability of the activities also in a complicated economic environment.
As of 30 June 2009 the volume of cash and equivalents totalled 475.7 million
kroons (17.1% of total assets), at the end of the 1st quarter the respective
figure was 463.9 million kroons (16.8% of total assets).
The structure of liabilities has not considerably changed in the 2nd quarter.
Bonds (1 230.1 million kroons, reduction by 7.3 million kroons during the
quarter) and term deposits (732.2 million kroons, decrease by 31.4 million
kroons during the quarter) continue to form the largest share of liabilities.
As of the end of the 2nd quarter the total volume of liabilities amounted to 2
139.8 million kroons, reducing by 36.5 million kroons during the quarter. As of
the end of the quarter the weighted average maturity of interest-bearing
liabilities was 17.9 months and weighted average interest rate was 8.7% (9.6%
as of the year-end). The weighted average interest rate has reduced above all
in connection with the decrease in Euribor.
In the 2nd quarter of 2009 the interest income amounted to 151.3 million
kroons, decreasing by 15.5 million kroons compared to the same period of the
previous year. The reduction of the interest income is related to the reduction
in loan portfolio. In the 2nd quarter the revenue related to debt collection
proceedings amounted to 26.5 million kroons.
The volume of loans with payment delays over 90 days in the consolidation group
has decreased in the 2nd quarter of 2009, the change by countries is different
in relation to development cycle of the economy. In Estonia, the amount of such
loans as of the end of the 2nd quarter has decreased compared to both 1Q of
2009 and 4Q of 2008. In Latvia, the volume of non-performing loans is at the
same level as it was at the end of Q1 2009 and the rapid increase of loans with
payment delays of the beginning of the year has been changed to a minimal
growth of 4-5% on annual basis. In Lithuania, the growth of loans with payment
delays over 90 days has deceased by half. In addition to some positive changes
in macroeconomic situation and payment discipline of private individuals, the
decrease in non-performing loan portfolio also relates to more effective debt
management and collection methods used by the bank.
The impairment allowance costs totalled 54.4 million kroons in the 2nd quarter.
As of 30 June 2009 the total volume of impairment allowances amounted to 343.3
million kroons.
In the 2nd quarter the net profit of the reporting period amounted to 44.8
million kroons (40.5 million kroons in the 2nd quarter of 2008). Profit before
impairment allowances and one-off revenues from the premature termination of
bonds and prepaid income tax assets totalled 80.2 million kroons in the 2nd
quarter (in the 1st quarter the respective figure was 59.8 million kroons).
As of the end of the 2nd quarter of 2009 equity totalled 637.7 million kroons
(579.4 million kroons as of the end of 2008). The share of equity amounted to
23.0% of total assets.
As of 30 June 2009 the Group had 28 offices all over the Baltics, of which 11
offices were located in Estonia, 7 in Latvia and 10 in Lithuania. As of 30 June
2009 there were 361 employees working in the Group, including 166 in Estonia,
125 in Latvia and 70 in Lithuania.
The Public Interim Report is available at the company's web-site
www.bigbank.ee.
Additional information:
Targo Raus
Chairman of the Management Board
Tel: +372 735 0923
