July 2023 was characterized by continued strong growth and solid profit numbers for Bigbank.
In terms of loans, the portfolios of business loans, home loans and consumer loans grew in equal volumes. On the side of deposits, the growth was higher in the savings deposit, where the volume of deposits grew the most among Dutch customers, but the savings deposit in Finland, which entered the market at the end of May, has also picked up nicely.
While the Euribor level remained stable in July, the increase in interest rates on deposits continued in the markets of Bigbank's operations. As Bigbank continues to keep its deposit rates at the top of the market, it allows Bigbank's deposit customers to increasingly benefit from the rising interest rate environment.
The fact that the credit quality of Bigbank’s loan portfolio remains at a strong level and the loan customers have not encountered significant difficulties in servicing their obligations is also pleasing.
July's net interest income of 8.7 million as well as net profit of 3.7 million were record figures for Bigbank in 2023 by month.
Bigbank's financial results for July 2023:
- Deposits from customers and loans raised grew by 423 million euros on year, rising to 1.66 billion euros (+35%) in the year.
- Receivables from customers increased by 339 million euros to 1.49 billion euros (+29%).
- Net interest income was 8.7 million euros in July, a total of 55.4 million euros in the first seven months of the year. In the comparison of the first seven months with the same period last year, the increase was 8.4 million euros (+18%).
- In the first seven months of the year, the volume of net loan claims and discounts on financial investments was 10.3 million euros, compared to a year ago, the increase was 2.5 million euros or 33%.
- July's net profit was 3.7 million euros. The total profit of the first seven months was 20.7 million euros, an increase of 3.9 million euros or 23% compared to 2022.
- Return on equity was 16.1% in the consolidated view of the first seven months.
| Income statement, in thousands of euros | July 2023 | YTD 2023 | YTD 2022 | Difference YoY | |
| Total net operating income, incl. | 9,490 | 60,568 | 50,885 | 9,683 | +19% |
| Net interest income | 8,662 | 55,362 | 46,915 | 8,446 | +18% |
| Net fee and commission income | 455 | 4,709 | 4,239 | 470 | +11% |
| Total expenses, incl. | -3,803 | -26,052 | -24,207 | -1,845 | +8% |
| Salaries and associated charges | -2,037 | -13,652 | -12,307 | -1,345 | +11% |
| Administrative expenses | -1,118 | -8,431 | -9,466 | 1,035 | -11% |
| Profit before loss allowances | 5,688 | 34,516 | 26,678 | 7,838 | +29% |
| Net loss allowances on loans and financial investments | -1,380 | -10,342 | -7,794 | -2,548 | +33% |
| Income tax expense | -564 | -2,846 | -2,103 | -744 | +35% |
| Profit for the period from continuing operations | 3,744 | 21,328 | 16,782 | 4,546 | +27% |
| Loss before tax from discounted operations | 0 | -617 | 0 | -617 | |
| Profit for the period | 3,744 | 20,710 | 16,782 | 3,929 | +23% |
| Business volumes, in thousands of euros | July 2023 | YTD 2023 | YTD 2022 | Difference YoY | |
| Customer deposits and loans received | 1,660,907 | 1,660,907 | 1,238,087 | 422,819 | +34% |
| Loans to customers | 1,492,858 | 1,492,858 | 1,153,724 | 339,134 | +29% |
| Key figures | July 2023 | YTD 2023 | YTD 2022 | Difference YoY | |
| ROE | 19.8% | 16.1% | 15.2% | +0.9pp | |
| Cost / income ratio (C/I) | 40.1% | 43.0% | 47.6% | -4.6pp | |
| Net promoter score (NPS) | 56 | 57 | 50 | +7 | |
Bigbank AS (www.bigbank.eu) is an Estonian capital-based bank specialising in loans and deposits for private and business customers. In addition to operations in Estonia, the bank has branches in Finland, Sweden, Latvia, Lithuania, and Bulgaria and offers its products on a cross-border basis in Austria, Germany, and the Netherlands. Bigbank’s total assets exceed 1.9 billion euros.
Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee
