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Pealkiri

Bigbank's Unaudited Financial Results for Q2 2025

Teade

Bigbank's total gross loan portfolio reached a record high of 2.44 billion euros
by the end of the quarter, up 141 million euros (+6%) quarter on quarter and
537 million euros (+28%) year on year, driven by the strategic product lines of
business loans and home loans. Growth in the consumer loan portfolio was more
modest. During the quarter, the business loan portfolio increased by 54 million
euros (+7%) to 862 million euros, the home loan portfolio by 53 million euros
(+8%) to 717 million euros and the consumer loan portfolio by 19 million euros
(+2%) to 860 million euros. For the first time in Bigbank's history, business
loans also became the largest credit product line in terms of portfolio size.

On the deposit side, the savings deposit portfolio recorded strong growth in the
second quarter, increasing by 154 million euros to 1.3 billion euros (+13%).
However, the term deposit portfolio decreased by 59 million euros to 1.34
billion euros during the quarter. The stabilising interest rate environment has
made the interest rates on more flexible savings deposits competitive with those
on term deposits. Therefore, many depositors have opted for savings deposits
when their term deposits have matured. At the end of the second quarter, the
current accounts opened for retail customers in Estonia totalled 3.4 million
euros. All current account holders earn interest at the rate of 2%, the best
available on the market. The Group's total deposit portfolio grew by 96 million
euros (+4%) quarter on quarter and by 393 million euros (+17%) year on year,
reaching 2.65 billion euros.

Bigbank's net profit for the first six months of 2025 was 18.7 million euros.
Net profit for the same period in 2024 was 15.8 million euros. In the second
quarter, Bigbank's net profit amounted to 8.9 million euros, down 0.5 million
euros from the second quarter of 2024 (-5%). In the second quarter, Bigbank's
profit before income tax amounted to 11.5 million euros, up 0,3 million euros
from the second quarter of 2024 (+3%).

Interest income grew quarter on quarter, because the growth in the loan
portfolio had a stronger impact than the decrease in interest rates during the
year. Interest income for the second quarter amounted to 45.2 million euros, an
increase of 1.8 million euros (+4%) year on year. Due to the growth of the
deposit portfolio and an increase in the volume of bonds issued, interest
expense grew by 0.6 million euros (+3%) to 19.5 million euros. As a result,
Bigbank's net interest income grew by 1.2 million euros (+5%) year on year to
25.7 million euros.

The quality of the loan portfolio continued to improve in the second quarter:
the net allowance for expected credit losses and provisions totalled 1.4 million
euros, down 4.4 million euros year on year. This positive trend is mostly
attributable to an improvement in the quality of the consumer loan portfolio in
all three Baltic countries. The credit quality of home loans remained very good,
while that of the business loan portfolio was stable. The share of stage 3 (non-
performing) loans decreased by 3.8 million euros in the second quarter,
accounting for 4.7% of the total loan portfolio at the end of the quarter (-0.4
pp from the end of the first quarter). The relatively high share of stage 3
loans is mainly due to a small number of larger loans which are well secured and
therefore do not increase expected credit loss expenses.

Bigbank's strong team, which is the driving force behind growing business
volumes, continued to expand. At the end of the second quarter of 2025, Bigbank
had 613 employees: 378 in Estonia, 102 in Lithuania, 91 in Latvia, 22 in
Finland, 15 in Bulgaria and 5 in Sweden. Salary expenses for the second quarter
totalled 8.2 million euros, up 1.8 million euros year on year (+28%).

The second quarter saw significant progress in the development of everyday
banking products. At the beginning of the quarter, Bigbank became a direct
member of the SEPA Credit Transfer scheme. This enabled the Group to become
fully independent of other financial intermediaries in the euro area. Bigbank
has been a direct member of the SEPA Instant Credit Transfer scheme, enabling it
to make instant payments independently, since 2024. Another significant
milestone was reached at the end of June with the launch of the Bigbank mobile
app. Initially made available to retail customers of the Estonian business unit,
the modern and convenient app is expected to be launched in Lithuania and Latvia
in the coming quarters.

The value of the Group's investment property portfolio was 72.3 million euros at
the end of the second quarter. A significant change to the property portfolio
was the decrease in the value of the agricultural land in Estonia, which fell by
1.7 million euros (around 5%) due to an overall decline in transaction prices in
the market during the quarter.

Two bond issues also took place in the second quarter. In May, Bigbank issued
Additional Tier 1 (AT1) bonds totalling 2.44 million euros, thereby increasing
its Additional Tier 1 capital by the same amount. In June, Bigbank carried out
the first in a series of public unsecured subordinated bond offerings (T2) under
a new programme. Due to strong investor interest, Bigbank increased the volume
of the T2 bond offering from 3 million euros to 6 million euros, thereby raising
its Tier 2 capital by the same amount.

In the second quarter, Moody's Ratings affirmed all of the ratings and
assessments that it had assigned to Bigbank AS last year.

  * Long-term and short-term deposit ratings: Ba1/NP
  * Baseline Credit Assessment (BCA) and Adjusted BCA: ba2
  * Long-term and short-term Counterparty Risk Ratings: Baa2/P-2
  * Long-term and short-term Counterparty Risk Assessments: Baa2(cr)/P-2(cr)

The outlook on the bank's long-term deposit rating was revised from stable to
negative.

After the reporting date and before this report was authorised for issue,
Bigbank received the decision of the Financial Supervision and Resolution
Authority of 7 July 2025, which waived the previously applied minimum
requirement for own funds and eligible liabilities. According to the
requirement, the Group had to maintain a minimum ratio of own funds and eligible
liabilities to total risk exposure amount (TREA) of 12.49%. Bigbank complied
with this requirement throughout its effective term and would be able to
continue to do so in the future. There is no new minimum ratio requirement set
by Financial Supervision and Resolution Authority.

 Income statement, in thousands of euros        Q2 2025 Q2 2024 6M 2025 6M 2024
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 Net interest income                             25,773  24,464  51,336  50,021

 Net fee and commission income                    2,550   2,245   5,073   4,409

 Net income (loss) on financial assets              694   2,007   2,645   3,078

 Net other operating income                      -1,120    -977  -2,015  -1,826
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 Total net operating income                      27,897  27,739  57,039  55,682
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 Salaries and associated charges                 -8,258  -6,351 -15,735 -12,763

 Administrative expenses                         -2,875  -2,285  -5,626  -5,954

 Depreciation, amortisation and impairment       -2,176  -2,100  -4,313  -4,152

 Other gains (losses)                            -1,796   1,090  -1,782  -1,329
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 Total expenses                                 -15,105  -9,646 -27,456 -24,198
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 Profit before loss allowances                   12,792  18,093  29,583  31,484
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 Net expected credit loss allowances             -1,289  -6,811  -5,924 -12,531

 Profit before income tax                        11,503  11,282  23,659  18,953

 Income tax expense                              -2,616  -1,857  -4,917  -3,132
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 Profit for the period from continuing
 operations                                       8,887   9,425  18,742  15,821
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 Profit from discontinued operations                  0       8       0      29
-------------------------------------------------------------------------------
 Profit for the period                            8,887   9,433  18,742  15,850
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 Statement of financial
 position, in thousands of
 euros                      30 June 2025 31 March 2025 31 Dec 2024 30 June 2024
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 Cash and cash equivalents       468,770       487,160     448,661      626,081

 Debt securities at FVOCI         42,508        49,431      22,334        9,907

 Loans to customers            2,438,608     2,297,987   2,196,482    1,902,001

 Other assets                    109,143       109,603     110,939       89,255
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 Total assets                  3,059,029     2,944,181   2,778,416    2,627,244
-------------------------------------------------------------------------------
 Customer deposits and
 loans received                2,656,328     2,560,513   2,401,689    2,264,137

 Subordinated notes              104,147        95,943      91,668       88,148

 Other liabilities                17,871        16,885      15,290       22,113
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 Total liabilities             2,778,346     2,673,341   2,508,647    2,374,398
-------------------------------------------------------------------------------
 Equity                          280,683       270,840     269,769      252,846
-------------------------------------------------------------------------------
 Total liabilities and
 equity                        3,059,029     2,944,181   2,778,416    2,627,244
-------------------------------------------------------------------------------


Compared to the unaudited financial results published for Q2 2024, the net
interest income and the net allowance for expected credit losses for the first
six months of 2024 have been adjusted, both reduced by 1.3 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 the first six months of 2024.

Commentary by Martin Länts, chairman of the management board of Bigbank AS:

In the second quarter of 2025, Bigbank continued its strong growth across all
core business areas, bringing the consolidated total assets above the 3-billion-
euro mark for the first time. The growth of the loan portfolio lifted its volume
beyond 2.4 billion euros, representing an increase of nearly one-third year on
year. Strategic segments such as business loans and home loans continued to
drive growth.

Alongside loan portfolio growth, its quality also improved. The net allowance
for expected credit losses and provisions decreased by more than fourfold
compared to the same period last year, totalling 1.4 million euros in the second
quarter. This positive change is mainly attributable to improvements in the
credit quality of the Baltic consumer loan portfolios, which also supported
growth in the bank's net profit. Net profit for the first half of 2025 was 18.7
million euros, of which 8.9 million euros were earned in the second quarter.

The deposit portfolio also continued to grow both year on year and quarter on
quarter. The primary growth driver was the savings deposit segment, the volume
of which has reached a similar level as term deposits, totalling nearly 1.3
billion euros at the end of the second quarter. People have become increasingly
active in searching for interest-bearing options for their funds, finding an
attractive opportunity in Bigbank's savings deposit product, but increasingly
also in our current accounts.

As the first bank in Estonia, we offer all current account holders the
opportunity to earn 2% interest on their account balances while maintaining
daily access to their funds. Although our current accounts have only recently
been launched in Estonia, we already see that more than 25% of our retail
banking customers of the business unit have opened an account. We will continue
expanding our daily banking functionalities, an important milestone of which was
the launch of the Bigbank mobile app at the end of June. We also plan to roll
out current account services to the Latvian and Lithuanian markets in the coming
quarters.

In May and June, we successfully completed two bond issues. Both transactions
support the continued rapid growth of the bank, ensure compliance with
regulatory capital requirements, and facilitate further expansion of our home
loan and business loan portfolios.

We thank all investors, partners, and customers of Bigbank for your trust, which
enables us to grow our business volumes and create long-term value.

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a
commercial bank owned by Estonian capital. As of 30 June 2025, the bank's total
assets amounted to 3.1 billion euros, with equity of 281 million euros.
Operating in nine countries, the bank serves more than 174,000 active customers
and employs over 600 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