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BIGBANK - Q4 2008 Report

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As of the end of the 4th quarter the balance sheet total of BIGBANK AS was 2
908.824 million kroons. Since the beginning of the year it has increased by
296.448 million kroons. 
In the 4th quarter a branch of BIGBANK AS was registered in Latvia, which is
operating on the market of consumption loans in parallel with the subsidiary. 
BIGBANK continued conservative liquidity management policy and increased the
volume of liquid assets. The share of cash and equivalents in balance sheet
total has been increased, accounting for 16.5% (compared to 16.1% as of the end
of the 2nd quarter) of the total assets as of 31 December. Receivables from
customers formed 78.7% of the balance sheet total as of the end of the quarter.
As of 31 December 2008 receivables from customers totalled to 2 289.355 million
kroons (compared to 2 369.001 as of the end of the 2nd quarter), whereby the
share of Estonia was 50.4%, share of Latvia formed 40.2% and the share of
Lithuania was 9.4%. Loan portfolio is influenced by changes in macroeconomic
environment and the resulting uncertainty of loan debtors regarding the future,
also the Group's conservative liquidity and credit policy. 
Loan portfolio has increased the most in Lithuania, where the branch of BIGBANK
has been operating since the 3rd quarter of 2007 and the growth potential of the
market share is the highest.  In Lithuania receivables from customers increased
by 14.6% during the 4th quarter and by the end of the quarter amounted to
216.388 million kroons. At the end of the quarter the number of Group's loan
contracts totalled to 137.9 thousand (including 50.3 thousand in Estonia, 75.2
thousand in Latvia and 12.4 thousand in Lithuania). At the end of 2008 the
average loan receivable was 16.980 thousand kroons. The proportion of loans
granted to private persons in the portfolio formed 98.2%. 
Regarding liabilities, the volume of term deposits has increased the most
amounting to 630.612 million kroons by the end of the quarter - increase of
11.1% during the quarter. As of 31 December 2008 issued bonds formed 63.9%
(66.9% in the 3rd quarter), term deposits 27.1% (23.8% in the 3rd quarter),
subordinated liabilities 7.4% (7.3% in the 3rd quarter), other liabilities 1.0%
(1.3%in the 3rd quarter) and liabilities to credit institutions 0.6% (0.7% in
the 3rd quarter) of total liabilities. 
As of 31 December 2008 equity totalled to 579.425 million kroons, which
accounted for 19.9% of the balance sheet total. As of the end of the quarter
the capital adequacy was 19.32%. 
In the 4th quarter the interest income amounted to 169.349 million kroons
(686.255 million kroons from the beginning of the year). In the 4th quarter the
interest expenses accounted for 67.584 million kroons, altogether 248.342
million kroons from the beginning of the year. 
The share of customers' overdue loans of more than 90 days in the total loan
portfolio has indeed increased; the growth indicates the regular proportional
share of the high loan sales volume in 2007. The share is also influenced by
the considerably lower loan sales volume in 2008. The share of short-term
payment delays has decreased. 
Amounts transferred to the reserve of losses from loan have increased
significantly - by the end of the 4th quarter 2008 the volume of the reserve
totalled to 210.781 million kroons, increasing 12.854 million kroons in the 4th
quarter. Increase in the reserve of losses from loan is continually connected
to the conservative principles for impairment allowances. 
As a positive influence from increase in overdue portfolio other operating
income (mostly consisting of enforcement income) has significantly increased,
amounting to 38.840 million kroons in the 4th quarter (130.018 million kroons
from the beginning of the year), increasing by 2.4 times compared to the
previous year. 
In the 4th quarter the Group earned a profit of 26.826 million kroons.
Profitability of the 4th quarter was influenced by forming conservative and
additional allowances. Profit from the beginning of the year totals to 144.770
million kroons. 
As of 31 December the Group had 45 offices all over the Baltics, of which 22
offices are located in Estonia, 15 in Latvia and 8 in Lithuania.  As of 31
December 2008 there were 512 employees working in the Group, including 237 in
Estonia, 207 in Latvia and 68 in Lithuania. In December 2008 there were changes
in the membership of the Management Board, Ingo Põder became the fourth member
of the Management Board. 
In 2008 the fees paid to the Management Board of the parent company (taxes
included) totalled to 3.483 million kroons and the fees paid to the members of
the Supervisory Council (taxes included) amounted to 0.883 million kroons. 
More detailed information about the financial data of BIGBANK AS is available
in the annual accounts of the Consolidation Group.