Market announcement

Title

Correction: Bigbank Unaudited Financial Results for Q3 and Nine Months of 2022

Message

Bigbank AS corrects Bigbank's interim report for the third quarter of 2022
published as an appendix to the previously published stock exchange announcement
"Correction: Bigbank's 2022 Q3 and 9 months unaudited financial results
(https://view.news.eu.nasdaq.com/view?id=ba596c2650ee5d6fdf0b117cfe0f8d2d3&lang=
en)". The corrections have been made in the tables "Ratios" and "Capital ratios"
in the Estonian interim report, and in the section "Significant economic
events", in the table "Ratios" and in the Notes 24 and 25 in the English interim
report.

Bigbank earned a net profit of 7.2 million euros in the third quarter and a net
profit of 21.3 million euros in the nine months of 2022. Performance met
expectations, although both the profits for nine months and the third quarter
were lower than a year earlier (-40.8% and -7.8%, respectively). Last year,
Bigbank earned a one-off bargain purchase gain on a business combination and the
increase in the fair value of investment property was 2.5 million euros larger.

Third quarter net interest income grew by 2.8 million euros (15.2%) year on
year, amounting to 21.3 million euros. Profit before loss allowances and income
tax was 13.3 million euros. Expenses on credit loss allowances amounted to 4.2
million euros.

Bigbank's loan portfolio grew, expanding in the nine months by 38.6% and in the
third quarter by 11.9%. At the end of the third quarter, the Group's performing
loan portfolio amounted to 1.2 billion euros, exceeding the 2021 year-end figure
by 350.8 million euros (39.5%). The share of loans over 90 days past due
accounted for 1.3% of the total portfolio, indicating a continued improvement of
the quality of the portfolio over the year, as the same indicator for the nine
months of 2021was 3.0%.

The third quarter profit of the corporate banking segment amounted to 2.6
million euros, an increase of 0.7 million euros on the previous quarter. The
quarterly profit figure includes net gain of 0.2 million euros on the
revaluation of the underlying assets of loans with an investment risk component,
which is recognised on a straight-line basis over the terms of the underlying
loan contracts. Revaluation gains on loans with an investment risk component are
calculated annually, based on movements in the market value of customers'
investment property and the agreed pattern of profit sharing. The corporate loan
portfolio grew by 68.7 million euros (20.0%) during the quarter.

The housing loan portfolio grew by 27.7% to 186.9 million euros in the third
quarter. Compared with the end of 2021, the portfolio has increased by more than
1.5 times.

Deposits from customers increased by 38.6% in nine months and by 6.5% in the
third quarter. The fastest growth was again shown by savings deposits, which
increased by 10.7% to 542.5 million euros in the third quarter, accounting for
43.6% of the deposit portfolio at the end of the quarter.

The Group's investment property portfolio, which includes both agricultural land
and commercial real estate, grew to 47.4 million euros by the end of the
quarter.

+------------------------+------------------+-------+------------------+-------+
|Income statement, in    |                  |       |                  |       |
|thousands of euros      |Q3 2022 (Restated)|Q3 2022|9M 2022 (Restated)|9M 2022|
+------------------------+------------------+-------+------------------+-------+
|Net interest income     |            21 308| 28 627|            61 045| 68 364|
+------------------------+------------------+-------+------------------+-------+
|Net fee and commission  |                  |       |                  |       |
|income                  |             1 891|  1 891|             5 511|  5 511|
+------------------------+------------------+-------+------------------+-------+
|Net income (loss) on    |                  |       |                  |       |
|financial assets        |                51|   -161|              -252|   -464|
+------------------------+------------------+-------+------------------+-------+
|Net other operating     |                  |       |                  |       |
|income                  |               171|    170|               244|    243|
+------------------------+------------------+-------+------------------+-------+
|Total net operating     |                  |       |                  |       |
|income                  |            23 421| 30 527|            66 548| 73 654|
+------------------------+------------------+-------+------------------+-------+
|Salaries and associated |                  |       |                  |       |
|charges                 |            -5 279| -5 279|           -15 787|-15 787|
+------------------------+------------------+-------+------------------+-------+
|Administrative expenses |            -4 586| -4 586|           -12 723|-12 723|
+------------------------+------------------+-------+------------------+-------+
|Depreciation,           |                  |       |                  |       |
|amortisation and        |                  |       |                  |       |
|impairment              |            -1 034| -1 034|            -3 003| -3 003|
+------------------------+------------------+-------+------------------+-------+
|Other gains (losses)    |               804|    804|               673|    673|
+------------------------+------------------+-------+------------------+-------+
|Total expenses          |           -10 095|-10 095|           -30 840|-30 840|
+------------------------+------------------+-------+------------------+-------+
|Profit before loss      |                  |       |                  |       |
|allowances              |            13 326| 20 432|            35 708| 42 814|
+------------------------+------------------+-------+------------------+-------+
|Net loss allowances on  |                  |       |                  |       |
|loans and financial     |                  |       |                  |       |
|investments             |            -4 186| -4 186|           -10 744|-10 744|
+------------------------+------------------+-------+------------------+-------+
|Profit before income tax|             9 140| 16 246|            24 964| 32 070|
+------------------------+------------------+-------+------------------+-------+
|Income tax expense      |            -1 946| -1 946|            -3 708| -3 708|
+------------------------+------------------+-------+------------------+-------+
|Profit for the period   |             7 194| 14 300|            21 256| 28 362|
+------------------------+------------------+-------+------------------+-------+


+-------------------+-----------------+-----------+----------------+-----------+
|Statement of       |                 |           |                |           |
|financial position,|                 |           |                |           |
|in thousands of    |     30 Sep 2022 |           |    31 Dec 2021 |           |
|euros              |       (Restated)|30 Sep 2022|      (Restated)|31 Dec 2021|
+-------------------+-----------------+-----------+----------------+-----------+
|Cash and cash      |                 |           |                |           |
|equivalents        |          141 163|    141 163|         115 948|    115 948|
+-------------------+-----------------+-----------+----------------+-----------+
|Debt securities    |           45 171|     45 171|          45 256|     45 256|
+-------------------+-----------------+-----------+----------------+-----------+
|Loans to customers |        1 248 194|  1 258 177|         893 463|    896 238|
+-------------------+-----------------+-----------+----------------+-----------+
|Other assets       |          103 357|    103 356|          93 686|     93 686|
+-------------------+-----------------+-----------+----------------+-----------+
|Total assets       |        1 537 885|  1 547 867|       1 148 353|  1 151 128|
+-------------------+-----------------+-----------+----------------+-----------+
|Customer deposits  |                 |           |                |           |
|and loans received |        1 281 161|  1 281 161|         934 840|    934 840|
+-------------------+-----------------+-----------+----------------+-----------+
|Subordinated notes |           40 049|     40 049|          14 976|     14 976|
+-------------------+-----------------+-----------+----------------+-----------+
|Other liabilities  |           17 521|     17 521|          15 191|     15 191|
+-------------------+-----------------+-----------+----------------+-----------+
|Total liabilities  |        1 338 731|  1 338 731|         965 007|    965 007|
+-------------------+-----------------+-----------+----------------+-----------+
|Equity             |          199 154|    209 136|         183 346|    186 121|
+-------------------+-----------------+-----------+----------------+-----------+
|Total liabilities  |                 |           |                |           |
|and equity         |        1 537 885|  1 547 867|       1 148 353|  1 151 128|
+-------------------+-----------------+-----------+----------------+-----------+

In addition to regular activities, several circumstances had an impact on the
third quarter results and the Group's future business.

The most important event of the period was the listing of Bigbank unsecured
subordinated bonds on the Nasdaq Tallinn Stock Exchange on 22 September. The
base amount of 10 million euros was more than two times oversubscribed. The
total size of the issue was 20 million euros. 20 thousand bonds were issued with
a nominal value of 1,000 euros each, a fixed annual coupon rate of 8%, and a
maturity of 10 years. The 20 million euros of additional capital helps the bank
sustain growth in the corporate banking and housing loan segments.

This year marks the beginning of Bigbank's new business strategy period of
2022-2026. In order to support the new business strategy and achieve the
expected return on capital, the management board of Bigbank AS has made
decisions concerning the future operation of its Swedish and Bulgarian branches.
In August it was decided to suspend the issue of new loans at the Swedish branch
from 1 September 2022 and in October it was decided to suspend the issue of new
loans at the Bulgarian branch from 1 November 2022. The Group will continue
raising deposits and servicing its existing loan portfolio in both Sweden and
Bulgaria.

Comments from Bigbank's Chairman of the Management Board Martin Länts:

"Despite the turbulent external environment, we have reason to be satisfied with
Bigbank's third quarter financial performance - the period was characterised by
strong growth of the loan portfolio, continued improvement of the credit
portfolio and high profitability.

In the third quarter the loan portfolio showed the strongest growth in the
corporate and housing loan segments, which is one of the key goals of the bank's
business strategy. An increase in the sale of Euribor-linked loan products helps
us diversify our portfolio and has a positive impact on the bank's profit in a
situation where interest rates are rising and taking deposits is becoming more
expensive.

This summer the rating agency Moody's Investors Service completed the assessment
of Bigbank and assigned the bank a long-term investment grade rating Baa3 and a
short-term deposit rating Prime-3 to its foreign and domestic currency bank
deposits. The investment grade rating that Moody's assigned to us, as disclosed
on 1 July 2022, provides assurance to our current depositors and partners about
Bigbank's operating model as well as the quality of our portfolio and supports
the financing of our further international expansion.

The base volume of the issue of unsecured subordinated bonds in September was
more than two times oversubscribed. This was a landmark achievement for Bigbank,
indicating that investors have faith in our business strategy and ability to
successfully implement it. I thank all the investors for placing their trust in
Bigbank".

The Bigbank financial statements can be found
at: https://investor.bigbank.eu/reporting/
(https://www.globenewswire.com/Tracker?data=DPYu1FOnKa5VspJ09O3ES5jLNKoEu0VsDAm7
HDoQklm7n7ldL6o1N8dN3PGPc16IOZSWpGpjq7oZRiFpGG5r3CzWjG8vCkb3xk_FLBlGkc51ltYekYeF
dyLKrPJYlDEVQ12nuyXCGORR3mGSrcuexA==)

Bigbank AS (www.bigbank.eu
(https://www.globenewswire.com/Tracker?data=_d42zbExYSH0IrCPKIJoGkuLT5Aiqy5Y8VjP
VZA0S7dMoGcROwQoax9S8TDKaKzTc1q5yb_IwmLeItAfIlE6Gg==)) is an Estonian capital-
based bank specialised 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 in the form of cross-
border services also in Austria, Germany, and the Netherlands. Bigbank's balance
sheet total is more than 1.5 billion euros.

Argo Kiltsmann
Member of the Management Board
Phone: +372 5393 0833
E-mail: [email protected]
www.bigbank.ee
(https://www.globenewswire.com/Tracker?data=_d42zbExYSH0IrCPKIJoGkB7KjJAa6cURkBJ
cD5P5vGSxUOXWMSO5fjtQFZjlDllstVsRvggeun1jadrWjjntwrJrty9TR9KqlyBnqPc0xMfhAMMf0aa
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U3j_79_A_OT1ulluBVn9NqDzMVIQTsbYtdjbaAI=)