Börsiteade

Pealkiri

Bigbank AS results for May 2024

Teade

May 2024 was the most successful month of the year so far for Bigbank. The
growth of the loan portfolio was the largest of the year, and the deposit
portfolio also continued to grow. The net profit of 4.0 million euros and a
return on equity of 19.6% were the strongest indicators so far this year.

The loan portfolio grew by more than 55 million euros in a month, indicating
that the strong results of April were followed by an even more successful May.
The largest growth was seen in the home loan portfolio, with significant
increases in Estonia, Latvia, and Lithuania. Considering the current state of
the real estate market, it can be said that Bigbank's home loan offering is
becoming increasingly attractive to a wider range of home loan seekers. There
was also notable growth in business and consumer loan portfolios.

In May, the moderate decline in the Euribor that began in April continued. The
market's expectation for the European Central Bank to lower interest rates
deepened throughout May, which materialised at the beginning of June with a
0.25 percentage point reduction in base rates. This means that a moderate
reduction in deposit interest rates is also evident in all Bigbank's deposit
markets. From the perspective of Bigbank's deposit products, this meant that an
increasing number of deposit clients are once again preferring term deposits
over savings deposits in a declining interest rate environment, fixing a
suitable interest rate for a longer period. Overall, this resulted in a notable
growth in the term deposit portfolio and a slight decrease in the savings
deposit portfolio. The deposit portfolio grew by over 26 million euros in May.

The positive trend in loan portfolio quality that began in April continued in
May. In May, the amount of net loss allowances for loans and financial
investments and provision expenses was 1.7 million euros, a significant decrease
compared to the first quarter level. The proportion of non-performing loans in
the total loan portfolio remains low.

May's net profit of 4.0 million euros is a strong result. Compared to the
cumulative results of the first five months of last year, Bigbank's net profit
has decreased by 2.2 million euros. The main factor is the growth of net loss
allowances for loans and financial investments over the five months, but the
increase in salary and income tax expenses also has a significant impact. The
latter effect is mainly due to the income tax obligation imposed on credit
institutions in Latvia, which has affected financial results since December
2023.

Bigbank's May 2024 financial results:

  * Deposits from customers and loans received increased by 652 million euros
    year-on-year, reaching 2.2 billion euros (+42%).
  * Loans to customers increased by 360 million euros year-on-year, reaching
    1.8 billion euros (+24%).
  * Net interest income was 9.5 million euros in May, totalling 44.7 million
    euros for the first five months of the year. Compared to the same period
    last year, the growth for the first five months was 6.3 million euros
    (+16%).
  * Net loss allowances for loans and financial investments and provision
    expenses amounted to 12.2 million euros for the first five months of the
    year. Compared to the same period last year, this was an increase of 5.1
    million euros or 72%.
  * May's net profit was 4.0 million euros. The cumulative profit for the first
    five months was 13.4 million euros, decreasing by 2.2 million euros or 14%
    compared to the same period in 2023.
  * Return on equity was 19.6% in May.


 Income statement, in thousands of                                  Difference
 euros                                May 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Total net operating income, incl.      10,734    48,906    42,056   6,851 +16%

 Net interest income                     9,544    44,710    38,458   6,252 +16%

 Net fee and commission income             751     3,652     3,334     318 +10%

 Total expenses, incl.                  -4,300   -20,721   -17,335  -3,386 +20%

 Salaries and associated charges        -2,168   -10,902    -9,610  -1,292 +13%

 Administrative expenses                -1,434    -6,377    -6,026    -351  +6%

 Profit before loss allowances           6,435    28,186    24,721   3,465 +14%

 Net loss allowances on loans and
 financial investments and other
 provisions                             -1,663   -12,202    -7,077  -5,125 +72%

 Income tax expense                       -723    -2,615    -1,957    -658 +34%

 Profit for the period from
 continuing operations                   4,049    13,369    15,687  -2,318 -15%

 Profit or loss before tax from
 discounted operations                       0        29      -132     161
-------------------------------------------------------------------------------
 Profit for the period                   4,049    13,398    15,555  -2,157 -14%
-------------------------------------------------------------------------------




 Business volumes, in thousands of                                  Difference
 euros                                May 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Customer deposits and loans
 received                            2,216,907 2,216,907 1,564,651 652,256 +42%

 Loans to customers                  1,849,189 1,849,189 1,489,165 360,024 +24%



 Key figures                                                        Difference
                                      May 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 ROE                                     19.6%     13.0%     17.1%  -4.1pp

 Cost / income ratio (C/I)               40.1%     42.4%     41.2%  +1.1pp

 Net promoter score (NPS)                   57        58        57      +1


Bigbank AS (www.bigbank.eu
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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: [email protected]
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