Market announcement

Title

Bigbank AS results for August 2024

Message

August was a successful month for Bigbank. The loan portfolio surpassed 2
billion euros for the first time, and the home loan portfolio exceeded the 500
million euro mark. The consumer loan portfolio also demonstrated solid growth,
while the business loan portfolio decreased by approximately 3 million euros
compared to the end of July.

In August, the rapid decline of Euribor continued, with the 6-month Euribor
falling below 3.4% by the end of the month, marking the lowest interest rate
since April 2023. This reflects ongoing trends that have persisted for several
quarters. The declining Euribor brings relief to loan clients with floating
interest rates but results in lower interest income for banks. At the same time,
deposit interest rates are also decreasing, although not at the same pace as
Euribor. On the deposit side, the trend of customers seeking short-term fixed
deposits continues, with many looking to lock in favourable rates for at least
three to six months. Long-term term deposits and savings deposits, which offer
less attractive interest rates, have become less popular. Overall, this resulted
in growth in Bigbank's term deposit portfolio and a decrease in the savings
deposit portfolio. The total deposit portfolio shrank by 7 million euros in
August.

Encouraging developments have occurred in the credit quality of the loan
portfolio. The cost of impairments and provisions for loans and financial
investments amounted to 1.4 million euros, the lowest monthly figure for 2024.
The proportion of non-performing loans in the total loan portfolio remains low.

August's net profit of 4.2 million euros was the strongest result this year.
Compared to the cumulative results for the first eight months of last year,
Bigbank's net profit has decreased by 0.6 million euros. The primary factors
contributing to this decline have been the increase in net loss allowances for
loans and financial investments and provision expenses. Additionally, the rise
in salary and income tax expenses has played a significant role, driven mainly
by the income tax obligation imposed on credit institutions in Latvia, which has
impacted financial results since December 2023.

Bigbank's financial results for August 2024:

  * Deposits from customers and loans received increased by 488 million euros
    year-on-year, reaching 2.2 billion euros (+28%).
  * Loans to customers increased by 431 million euros year-on-year, reaching
    2.0 billion euros (+27%).
  * Net interest income was 9.4 million euros in August, totalling 69.9 million
    euros for the first eight months of the year. Compared to the same period
    last year, the growth for the first eight months was 5.7 million euros
    (+9%).
  * Net loss allowances for loans and financial investments and provision
    expenses amounted to 18.3 million euros for the first eight months of the
    year. Compared to the same period last year, this was an increase of 6.5
    million euros or 55%.
  * August's net profit was 4.2 million euros. The cumulative profit for the
    first eight months was 23.4 million euros, decreasing by 0.6 million euros
    or 2% compared to the same period in 2023.

 Income statement, in thousands of                                  Difference
 euros                                Aug 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Total net operating income, incl.      10,359    77,177    70,011   7,166 +10%

 Net interest income                     9,375    69,931    64,266   5,665  +9%

 Net fee and commission income             746     5,929     5,407     522 +10%

 Total expenses, incl.                  -3,904   -30,726   -30,226    -500  +2%

 Salaries and associated charges        -2,214   -17,287   -15,632  -1,655 +11%

 Administrative expenses                  -975    -7,862    -9,886   2,023 -20%

 Profit before loss allowances           6,455    46,451    39,784   6,667 +17%

 Net loss allowances on loans and
 financial investments and other
 provisions                             -1,414   -18,346   -11,854  -6,492 +55%

 Income tax expense                       -875    -4,734    -3,328  -1,406 +42%

 Profit for the period from
 continuing operations                   4,166    23,371    24,603  -1,231  -5%

 Profit or loss before tax from
 discounted operations                       0        29      -617     646
-------------------------------------------------------------------------------
 Profit for the period                   4,166    23,400    23,985    -585  -2%
-------------------------------------------------------------------------------




 Business volumes, in thousands of                                  Difference
 euros                                Aug 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Customer deposits and loans
 received                            2,238,741 2,238,741 1,750,965 487,776 +28%

 Loans to customers                  2,005,507 2,005,507 1,574,730 430,777 +27%



 Key figures                                                        Difference
                                      Aug 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 ROE                                     19.3%     15.9%     17.1%  -1.2pp

 Cost / income ratio (C/I)               37.7%     39.8%     43.2%  -3.4pp

 Net promoter score (NPS)                   50        56        58      -2


Bigbank AS (www.bigbank.eu
(https://www.globenewswire.com/Tracker?data=kdH_eybdu_iLUpvR0ii9JKtZ4JK3Kd00gBUU
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tQJV8kqkQMXzlngEhc=)) 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 2.5 billion euros.

Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
E-mail: argo.kiltsmann@bigbank.ee
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