Börsiteade

Pealkiri

Bigbank's Unaudited Financial Results for Q1 2025

Teade

Bigbank's total gross loan portfolio grew to a record 2.3 billion euros by the
end of the first quarter, up 102 million euros (+5%) quarter on quarter and 550
million euros (+32%) year on year. The business loan portfolio grew by 44
million euros (+6%) to 808 million euros, the home loan portfolio by 51 million
euros (+8%) to 664 million euros and the consumer loan portfolio by 12 million
euros (+1%) to 840 million euros compared to the previous quarter.

Bigbank's deposit portfolio grew in the first quarter mainly through savings
deposits. In countries with smaller deposit portfolios, Bigbank offered
attractive savings deposit rates in the first quarter - the highest rate was
3.25%, which was offered throughout the quarter in Estonia. While interest rates
were lower in the Netherlands and Germany, which have the largest savings
deposit portfolios, customers in those countries also showed strong interest in
Bigbank's savings deposits, despite fierce competition and decreasing interest
rates.

Compared to the previous quarter, the Group's savings deposit portfolio grew by
124 million euros (+12%) to 1.14 billion euros and term deposit portfolio
increased by 33 million euros (+2%) to 1.4 billion euros. Current accounts
launched for existing customers in Estonia in December last year amounted to 3
million euros at the end of the first quarter. The Group's total deposit
portfolio grew by 159 million euros (+7%) quarter on quarter and by 400 million
euros (+19%) year on year to 2.55 billion euros.

In the first quarter of 2025, Bigbank earned a net profit of 9.8 million euros.
Compared to the first quarter of 2024, net profit increased by 3.4 million
euros, driven by an improvement in the payment performance of the consumer loan
portfolio through a decrease of 1.1 million euros in the net allowance for
expected credit losses and a decrease of 2.4 million euros in provisions.

Compared to the first quarter of 2024, interest income grew by 3.3 million euros
(+8%) to 46.2 million euros. Due to the growth in the deposit portfolio and the
increase in the volume of bonds issued, interest expense grew also by 3.3
million euros (+19%) to 20.6 million euros. Compared to the same period last
year, Bigbank's net interest income remained stable at 25.6 million euros.

A positive development in the first quarter was the improvement in the payment
performance of the Baltic consumer loan portfolios. As a result, the Group's net
allowance for expected credit losses decreased by 1.1 million euros year on year
to 4.6 million euros. In addition, while provisions of 2.4 million euros had to
be recognised in the first quarter of 2024, no such costs were incurred in the
first quarter of 2025. The credit quality of home loans continued to be very
good, and the business loan portfolio was fairly stable.

Compared to the end of 2024, the portfolio of loans more than 90 days past due
grew by 4.7 million euros to 58.8 million euros and accounted for 2.5% of the
total loan portfolio (+0.1 pp from the end of 2024). The share of stage 3 (non-
performing) loans grew by 10.1 million euros in the first quarter and accounted
for 5.1% of the total loan portfolio at the end of the quarter (+0.2 pp from the
end of 2024). A relatively high level of the stage 3 portfolio is mainly related
to a few bigger loans which are well secured and therefore do not increase
expected credit losses. As the share of stage 3 loans surpassed the 5%
threshold, Bigbank activated an action plan to bring the level below 5%. This
movement was not unexpected as the Group has significantly reduced the sale of
non-performing loans in recent quarters. Slower growth in loans more than 90
days past due and their overall lower level reflect that, in addition to loans
with long-term payment delays, a significant share of stage 3 loans is made up
of loans without long-term payment delays.

The investment property portfolio increased to 72.6 million euros by the end of
the first quarter (+9% compared to the end of 2024). The Group did not recognise
any gains or losses from changes in the fair value of investment property during
the period.

Bigbank issued Additional Tier 1 (AT1) bonds in the amount of 3 million euros in
the first quarter, increasing its common equity Tier 1 capital by the same
amount. A total of 300 bonds with a nominal value of 10,000 euros each were
issued to 38 investors. The initial issue size of 3 million euros was fully
subscribed. In addition, Bigbank increased the volume of AT1 bonds issued in
November 2024 by 1 million euros in the first quarter.


 Income statement, in thousands of euros        Q1 2025 Q1 2024 3M 2025 3M 2024
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 Net interest income                             25,574  25,557  25,574  25,557

 Net fee and commission income                    2,523   2,164   2,523   2,164

 Net income (loss) on financial assets            1,950   1,071   1,950   1,071

 Net other operating income                        -895    -849    -895    -849
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 Total net operating income                      29,152  27,943  29,152  27,943
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 Salaries and associated charges                 -7,477  -6,412  -7,477  -6,412

 Administrative expenses                         -2,752  -3,669  -2,752  -3,669

 Depreciation, amortisation and impairment       -2,137  -2,052  -2,137  -2,052

 Other gains (losses)                                14  -2,419      14  -2,419
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 Total expenses                                 -12,352 -14,552 -12,352 -14,552
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 Profit before loss allowances                   16,800  13,391  16,800  13,391
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 Net allowance for expected credit losses        -4,635  -5,720  -4,635  -5,720

 Profit before income tax                        12,165   7,671  12,165   7,671

 Income tax expense                              -2,301  -1,275  -2,301  -1,275
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 Profit for the period from continuing
 operations                                       9,864   6,396   9,864   6,396
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 Profit from discontinued operations                  0      21       0      21
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 Profit for the period                            9,864   6,417   9,864   6,417
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 Statement of financial position, in
 thousands of euros                     31 March 2025 31 Dec 2024 31 March 2024
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 Cash and cash equivalents                    487,160     448,661       652,065

 Debt securities at FVOCI                      49,431      22,334        13,586

 Loans to customers                         2,297,987   2,196,482     1,747,606

 Other assets                                 109,603     110,939        89,823
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 Total assets                               2,944,181   2,778,416     2,503,080
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 Customer deposits and loans received       2,560,513   2,401,689     2,161,463

 Subordinated notes                            95,943      91,668        76,476

 Other liabilities                             16,885      15,290        21,688
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 Total liabilities                          2,673,341   2,508,647     2,259,627
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 Equity                                       270,840     269,769       243,453
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 Total liabilities and equity               2,944,181   2,778,416     2,503,080
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Compared to the unaudited financial results published for Q1 2024, the net
interest income and the net allowance for expected credit losses for the Q1
2024 have been adjusted, both reduced by 0.8 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 Q1 2024.

Comment from Martin Länts, Chairman of the Management Board of Bigbank AS:

In the first quarter of 2025, Bigbank continued its strong growth across all
core areas. Our loan portfolio reached a record 2.3 billion euros, with
increases in business, home, and consumer loan segments. Particularly
encouraging is the significant growth of the home loan portfolio, reflecting not
only a more active real estate market but also the trust customers place in
Bigbank.

Our deposit portfolio also continued to grow, driven primarily by our savings
deposit product. We are pleased to see that more and more people are choosing
our savings deposit - a product that combines some of the best interest rates on
the market with flexible access to savings. During the quarter, the volume of
the savings deposit portfolio increased by 123 million euros, reaching a group
record of 1.14 billion euros.

The current account service launched for Estonian customers in December last
year has been well received. By the end of the quarter, over 3,500 customers had
opened a current account. Bigbank offers a 2% interest rate on current account
balances. Product development in the field of daily banking will continue at
full speed in the coming quarters, with the aim of launching new functionalities
in Estonia and gradually expanding the service to Latvia and Lithuania.

Net profit for the first quarter of the year amounted to 9.8 million euros, an
increase of 3.4 million euros compared to the same period last year. This growth
was supported, among other factors, by a significant improvement in the payment
behaviour of the consumer loan portfolio, which led to a decrease in the net
cost of expected credit loss.

In March, we successfully completed a 3-million-euro AT1 bond issue, which was
fully subscribed. In addition, we increased the volume of bonds issued in
November 2024 by 1 million euros. Both transactions were aimed at meeting
regulatory capital requirements and support the continuation of the bank's
strategic growth, focusing on the expansion of the home and business loan
portfolios.

We thank all our investors and partners for their trust. Our goal remains to
provide strong, responsible, and long-term value-creating banking.

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a
commercial bank owned by Estonian capital. As of 31 March 2025, the bank's total
assets amounted to 2.9 billion euros, with equity of 271 million euros.
Operating in nine countries, the bank serves more than 169,000 active customers
and employs over 550 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
Telephone: +372 5393 0833
Email: [email protected]
www.bigbank.ee