Market announcement

Title

Bigbank AS Results for October 2024

Message

Bigbank's loan portfolio continued to grow strongly in October, surpassing 2.1
billion euros by the end of the month. Notably, the home loan portfolio saw a
growth of 30 million euros, marking the highest monthly sales figure of 2024 to
date. In addition, both business and consumer loan portfolios increased.

The decline in the Euribor accelerated further in October. At the beginning of
the month, the 6-month Euribor rate was close to 3.1%, but by the end of the
month, it had fallen below 2.9%. The 6-month Euribor was last below 3% in
January 2023. This indicates that the trends of recent quarters continue and are
intensifying. The falling Euribor brings relief to loan customers with floating
interest rates but means declining interest income for banks. At the same time,
deposit interest rates are also decreasing, though not as rapidly as the
Euribor. On the deposit side, clients are increasingly looking for short-term
fixed deposits, but interest in savings deposits also grew in October compared
to previous months. Overall, the deposit portfolio increased by 83 million
euros, the second-best monthly result in 2024.

The credit quality of the loan portfolio remains at the level of previous
months. The short-term quality deterioration that ended in the first quarter is
behind us, and the ratio of non-performing loans in the overall loan portfolio
remains low. The costs for loan and financial investment impairments and
provisions amounted to 1.9 million euros in October, below the monthly average
for 2024.

The net profit of 2.6 million euros in October was a satisfactory result.
Compared to the cumulative results of the first ten months of last year,
Bigbank's net profit has decreased by 2.1 million euros. The primary factors
behind this decline have been the increase in net loan and financial investment
impairments and provisions, as well as higher payroll and income tax expenses.
The latter effect is mainly due to the corporate income tax obligation imposed
on credit institutions in Latvia, which has impacted financial results since
December 2023.

Bigbank's financial results for October 2024:

  * Deposits from customers and loans received increased by 504 million euros
    year-on-year, reaching 2.4 billion euros (+27%).
  * Loans to customers increased by 473 million euros year-on-year, reaching
    2.1 billion euros (+29%).
  * Net interest income was 9.2 million euros in October, totalling 88.3 million
    euros for the first ten months of the year. Compared to the same period last
    year, the growth for the first ten months was 5.9 million euros (+7%).
  * Net loss allowances for loans and financial investments and provision
    expenses amounted to 21.3 million euros for the first ten months of the
    year. Compared to the same period last year, this was an increase of 4.5
    million euros or 27%.
  * October's net profit was 2.6 million euros. The cumulative profit for the
    first ten months was 30.2 million euros, decreasing by 2.1 million euros or
    6% compared to the same period in 2023.
  * Return on equity was 11.6% in October.


 Income statement, in thousands of                                  Difference
 euros                                Oct 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Total net operating income, incl.       9,304    96,421    92,459   3,962  +4%

 Net interest income                     9,193    88,283    82,425   5,858  +7%

 Net fee and commission income             808     7,533     6,837     696 +10%

 Total expenses, incl.                  -4,201   -38,845   -38,236    -609  +2%

 Salaries and associated charges        -2,389   -21,965   -19,725  -2,240 +11%

 Administrative expenses                -1,088    -9,868   -12,448   2,580 -21%

 Profit before loss allowances           5,103    57,576    54,224   3,352  +6%

 Net loss allowances on loans and
 financial investments and other
 provisions                             -1,914   -21,323   -16,828  -4,495 +27%

 Income tax expense                       -616    -6,119    -4,606  -1,513 +33%

 Profit for the period from
 continuing operations                   2,573    30,133    32,789  -2,656  -8%

 Profit or loss before tax from
 discounted operations                       0        29      -557     586
-------------------------------------------------------------------------------
 Profit for the period                   2,573    30,162    32,232  -2,070  -6%
-------------------------------------------------------------------------------




 Business volumes, in thousands of                                  Difference
 euros                                Oct 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Customer deposits and loans
 received                            2,357,577 2,357,577 1,853,600 503,977 +27%

 Loans to customers                  2,103,649 2,103,649 1,630,400 473,249 +29%



 Key figures                                                        Difference
                                      Oct 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 ROE                                     11.6%     14.1%     17.0%  -2.9pp

 Cost / income ratio (C/I)               45.2%     40.3%     41.4%  -1.1pp

 Net promoter score (NPS)                   57        57        58      -1


Bigbank AS (www.bigbank.eu), with over 30 years of operating
history, is a commercial bank owned by Estonian capital. As of 31 October 2024,
the bank's total assets amounted to 2.7 billion euros, with equity of
267.6 million euros. Operating in nine countries, the bank serves more than
150,000 active customers and employs over 500 people. The credit rating agency
Moody's has assigned Bigbank a long-term deposit rating of Ba1, as well as a
baseline credit assessment (BCA) and adjusted BCA of Ba2.

Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
Email: [email protected]
www.bigbank.ee