Bigbank’s business volumes continued to grow in February.
The overall interest rate environment has stabilised at a high level, but interest rates are expected to decline in the second half of the year. As a result, deposit customers continue to look for opportunities to make longer-term deposits on reasonable terms. This has a significant impact on Bigbank, which offers attractive deposit rates: the bank’s deposit portfolio continued to grow, reaching a record 2.1 billion euros. The term deposit and savings deposit portfolios grew relatively equally.
Market demand for both housing and corporate loans was quite low, while price competition increased. However, as Bigbank offers competitive loan products and high service quality, the loan portfolio also grew significantly. Growth was recorded for all product groups, with the largest increase in the housing loan portfolio, but the consumer and corporate loan portfolios also grew quite rapidly.
The quality of the loan portfolio continued to decline slightly. This was reflected in growth in net loss allowances for loans and financial investments compared to the same period last year. On the positive side, the figure for February was lower than in January, the level of the non-performing loan portfolio remains low, and the overall quality of the portfolio is good.
Net profit of 2.6 million euros for February is satisfactory. Compared to the same period last year, Bigbank’s net profit for the first two months decreased by 0.1 million euros. The main reason is higher income tax expense due to the income tax levied on credit institutions in Latvia, which has been affecting Bigbank’s financial results since December 2023. Profit before tax for the first two months grew by 0.4 million euros compared to the same period last year.
Bigbank’s financial performance in February 2024:
- Deposits from customers and loans received grew by 605 million euros year on year to 2.1 billion euros (+41%).
- Loans to customers increased by 331 million euros year on year to 1.7 billion euros (+24%).
- Net interest income was 8.4 million euros for February and 17.8 million euros for the first two months of the year, an increase of 3.5 million (+25%) on the same period last year.
- Net loss allowances for loans and financial investments for the first two months of the year totalled 4.8 million euros, an increase of 2.0 million euros (+75%) compared to the same period last year.
- Net profit amounted to 2.6 million euros for February and 5.8 million euros for the first two months of the year, a decrease of 0.1 million euros (-2%) compared to the same period in 2023.
- Return on equity was 12.2%.
| Income statement, in thousands of euros | Feb 2024 | YTD24 | YTD23 | Difference YoY | |
| Total net operating income, incl. | 9,665 | 19,601 | 15,923 | 3,678 | +23% |
| Net interest income | 8,421 | 17,768 | 14,263 | 3,505 | +25% |
| Net fee and commission income | 715 | 1,436 | 1,314 | 123 | +9% |
| Total expenses, incl. | -4,118 | -7,939 | -6,696 | -1,243 | +19% |
| Salaries and associated charges | -2,122 | -4,336 | -3,725 | -612 | +16% |
| Administrative expenses | -1,364 | -2,389 | -2,300 | -89 | +4% |
| Profit before loss allowances | 5,547 | 11,661 | 9,227 | 2,435 | +26% |
| Net loss allowances on loans and financial investments | -2,279 | -4,787 | -2,739 | -2,048 | +75% |
| Income tax expense | -706 | -1,064 | -547 | -517 | +95% |
| Profit for the period from continuing operations | 2,563 | 5,811 | 5,942 | -130 | -2% |
| Loss before tax from discounted operations | 0 | 0 | 0 | 0 | |
| Profit for the period | 2,563 | 5,811 | 5,942 | -130 | -2% |
| Business volumes, in thousands of euros | Feb 2024 | YTD24 | YTD23 | Difference YoY | |
| Customer deposits and loans received | 2,093,121 | 2,093,121 | 1,487,717 | 605,405 | +41% |
| Loans to customers | 1,720,258 | 1,720,258 | 1,389,328 | 330,930 | +24% |
| Key figures | Feb 2024 | YTD24 | YTD23 | Difference YoY | |
| ROE | 12.2% | 13.9% | 16.5% | -2.6pp | |
| Cost / income ratio (C/I) | 42.6% | 40.5% | 42.1% | -1.5pp | |
| Net promoter score (NPS) | 59 | 58 | 56 | +2 | |
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 2 billion euros.
Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
E-mail: argo.kiltsmann@bigbank.ee
www.bigbank.ee
