Börsiteade

Pealkiri

Public Interim Report Q1 2009

Teade

In the 1st quarter of 2009 the total assets of BIGBANK AS decreased by 154.7
million kroons and receivables from customers reduced by 145.5 million kroons.
The reduction in the loan portfolio is associated with the surrounding economic
environment. On one hand considerably reduced consumer confidence reduces the
customers' interest in taking loans and at the same time BIGBANK has continued
to make the criteria for grating loans more conservative. 

BIGBANK AS does not forecast the loan sales volumes to increase to the previous
level in 2009 and in connection with that the sales network is currently being
optimized in order to respond to today's loan sales volumes, in the course of
which the number of sales offices as well as number of employees shall be
reduced. During the 1st quarter a total of 4 sales offices were closed in the
Group (including 2 in Estonia and 2 in Latvia) and the company made 39
employees redundant (including 8 in Estonia and 31 in Latvia). It is planned to
continue with optimizing the office network also in the 2nd quarter. The aim of
restructuring is to keep an optimal and efficient sales structure and to retain
the profitability of the activity also in a complicated economic environment. 

Loan repayments from customers outbalance the volume of sales of new loans,
thus generating positive cash flow. From available resources, in the 1st
quarter of 2009 BIGBANK AS has acquired bonds issued by the Group in the total
amount of 189.6 million kroons in nominal value. The initial redemption date
was in 2011. Transaction prices remained below the nominal value. In addition,
in 2009 a bonds restructuring aimed at the domestic market has been performed,
in the course of which BIGBANK AS acquired bonds and subordinated liabilities
with a total value of 156.5 million kroons (including 98.5 million kroons with
a maturity date in 2009 and subordinated liabilities in the amount of 58.0
million kroons with a maturity date in 2014) and at the same time issued bonds
with a maturity date in 2010 with a total value of 93.8 million kroons and
subordinated liabilities with a maturity date in 2015 with a total value of
62.6 million kroons. The aim of the transaction was to extend and diversify the
maturity of liabilities. 

As of 31 March 2009 the volume of cash and equivalents totalled 463.9 million
kroons (16.8% of total assets), at the end of 2008 the respective figure was
479.4 million kroons (16.5% of total assets). 

Bonds (1 237.4 million kroons, reduction by 250.2 million kroons during the
quarter) and term deposits (763.7 million kroons, increase by 133.1 million
kroons during the quarter) continue to form the largest share of liabilities.
As of the end of the 1st quarter the total volume of liabilities amounted to 2
176.2 million kroons, reducing by 157.6 million kroons during the quarter. The
liabilities' weighted average duration until maturity extends to 19.6 months
and the weighted average interest rate was 8.8% (9.6% as of the year-end). The
weighted average interest rate has reduced during the quarter above all in
connection with the decrease in Euribor. 

In the 1st quarter of 2009 the interest income amounted to 148.0 million kroons
and the revenue related to enforcement process amounted to 40.9 million kroons.
The respective figures in the 4th quarter of 2008 were 169.3 million kroons and
39.4 million kroons. The reduction of the interest income is connected to the
reduction of loan portfolio and also increase in the volume of loan portfolio
in payment delay. Profit from the acquisition of bonds below nominal value
totalled 46.4 million kroons in the 1st quarter. 

In connection with the considerably worsened economic environment the
customers' payment behaviour has also deteriorated during the recent periods,
due to which the volume of loans with payment delays over 90 days has increased
both in the 4th quarter of 2008 as well as in the 1st quarter of 2009. The main
reasons for the deterioration of the payment behaviour could be the increase in
unemployment, also the considerable reduction of incomes, which immediately
became evident particularly in case of customers with a lower income, who did
not have any monetary reserve, with the emergence of solvency problems. In the
1st quarter the growth of loan portfolio with payment delays over 90 days has
been stopped in Estonia and slowed down in Latvia and Lithuania with more
active credit management activity. In the loan portfolio with payment delays,
the short-term payment delays have been reduced through more active credit
management activity and resulting thereof it is possible to predict in the
future a smaller volume of loan portfolio in long-term payment delays. 

In connection with the changes in economic environment the volume of impairment
allowance has been increased considerably during the 1st quarter and the
impairment allowance costs totalled 82.6 million kroons in the 1st quarter. As
of 31 March 2009 the total volume of impairment allowances amounts to 279.9
million kroons, including additional impairment allowances and the reserves of
potential assessment error of 29.5 million kroons and impairment allowances for
other assets in the amount of 9.5 million kroons. 

In the 1st quarter the net profit of the reporting period amounted to 23.6
million kroons (26.8 million kroons in the 4th quarter of 2008). Profit before
impairment allowances and profit from premature termination of bonds amounted
to 59.8 million kroons in the 1st quarter of 2009 (61.2 million kroons
respectively in the previous quarter). 

As of the end of the 1st quarter of 2009 equity totalled 582.4 million kroons
(579.4 million kroons as of the end of 2008). In the 1st quarter dividends were
paid out as the allocation of profit of the financial year in the total amount
of 19.0 million kroons. Capital adequacy as of the end of the quarter was
19.2%. The share of the equity amounted to 21.1% of total assets. 

As of 31 March 2009 the Group had 46 offices all over the Baltics, of which 20
offices were located in Estonia, 15 in Latvia and 11 in Lithuania. As of 31
March 2009 there were 468 employees working in the Group, including 216 in
Estonia, 176 in Latvia and 76 in Lithuania. 

The Q1 Public Interim Report is available at the company's web-site
www.bigbank.ee. 

Additional information:
Targo Raus
Chairman of the Management Board
Tel: +372 735 0923