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Bigbank AS Results for February 2025

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Bigbank’s loan portfolio continued its strong growth in February. Despite lower interest income due to the shortest month of the year, profit remained at a satisfactory level.

The total loan portfolio grew by 46 million euros over the month, marking the best result in recent months. Growth continues to be driven by core products: the home loan portfolio increased by 15 million euros, and the business loan portfolio grew by 27 million euros. The consumer loan portfolio expanded by 5 million euros.

The deposit portfolio remained close to its January-end level, increasing by 6 million euros over the month. The strong growth in deposits in January allowed the bank to focus on optimising deposit pricing across all Bigbank markets and products in February, taking into account the declining deposit interest rates.

As the shortest month of the year, February led to a decrease in interest and net interest income compared to January. In a declining interest rate environment, the growing loan portfolio was able to partially compensate the impact of lower rates. However, compared to the first two months of 2024, net interest income decreased by 0.9 million euros or 5%.

A positive development was that, despite the significantly increased loan portfolio, the net allowance for expected credit losses and provision expenses decreased by 0.9 million euros or 23% compared to the first two months of the previous year. The credit quality of the loan portfolio remained stable in February, with no negative trends observed.

Net profit for February amounted to 2.2 million euros. Considering the ongoing decline in interest rates and the shorter month’s impact on net interest income, this remained a satisfactory result. A further positive aspect is that the pressure on net interest income is being balanced by lower expected credit losses due to a stable loan portfolio and rising net fee income. On the downside, income tax expenses increased by 0.2 million euros over the two-month period, mainly due to higher tax rates introduced in Estonia and Lithuania in early 2025.

Bigbank’s financial results for February 2025:

Customer deposits and loans received increased by 465 million euros over the year, reaching 2.56 billion euros (+22%).
Loans to customers grew by 542 million euros year-on-year, reaching 2.26 billion euros (+31%).
Net interest income amounted to 7.9 million euros in February, with a total of 16.3 million euros for the first two months of the year. Compared to the same period last year, net interest income decreased by 0.9 million euros (-5%).
Net allowance for expected credit losses and provision expenses totalled 3.2 million euros for the first two months of the year. Compared to the same period last year, these expenses decreased by 0.9 million euros (-23%).
Net profit for February was 2.2 million euros. The cumulative profit for the first two months amounted to 5.3 million euros, decreasing by 0.6 million euros (-10%) compared to the same period in 2024.
Return on equity in February was 9.8%.

Income statement, in thousands of                                  Difference
 euros                                Feb 2025     YTD25     YTD24     YoY
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 Total net operating income, incl.       8,461    17,795    19,089  -1,294  -7%

 Net interest income                     7,854    16,333    17,256    -923  -5%

 Net fee and commission income             844     1,678     1,436     242 +17%

 Total expenses, incl.                  -4,212    -8,137    -8,088     -49  +1%

 Salaries and associated charges        -2,521    -4,926    -4,336    -590 +14%

 Administrative expenses                  -960    -1,786    -2,389     603 -25%

 Profit before loss allowances           4,249     9,658    11,001  -1,342 -12%

 Net allowance for expected credit
 losses and provision expenses          -1,409    -3,181    -4,126     945 -23%

 Income tax expense                       -610    -1,225    -1,064    -161 +15%

 Profit for the period from
 continuing operations                   2,230     5,252     5,811    -559 -10%

 Profit or loss before tax from
 discounted operations                       2         2         0       2
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 Profit for the period                   2,232     5,254     5,811    -557 -10%
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 Business volumes, in thousands of                                  Difference
 euros                                Feb 2025     YTD25     YTD24     YoY
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 Customer deposits and loans
 received                            2,558,437 2,558,437 2,093,326 465,112 +22%

 Loans to customers                  2,261,901 2,261,901 1,720,258 541,642 +31%



 Key figures                                                        Difference
                                      Feb 2025     YTD25     YTD24     YoY
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 ROE                                      9.8%     11.6%     13.9%  -2.3pp

 Cost / income ratio (C/I)               49.8%     45.7%     42.4%  +4.7pp

 Net promoter score (NPS)                   58        58        58      +0

Compared to the financial results published for February 2024, the net interest income and the net allowance for expected credit losses for the prior period have been adjusted, both reduced by 0.5 million euros. The adjustment is related to an identified error, where interest income from impaired financial assets had been accrued on the gross exposure of the financial assets, rather than on net basis. This correction does not impact the net profit for February 2024.

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 28 February 2025, the bank's total assets amounted to 2.9 billion euros, with equity of 275 million euros. Operating in nine countries, the bank serves more than 169,000 active customers and employs over 500 people. The credit rating agency Moody's has assigned Bigbank a long-term bank deposit rating of Ba1, along with a baseline credit assessment (BCA) and an adjusted BCA of Ba2.

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