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Bigbank AS Results for July 2024

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Bigbank's loan portfolio also grew significantly in July, with a monthly
increase of 71 million, which is a record for this year. The largest monthly
growth was seen separately in the business loan and home loan portfolios. The
strong growth figures in both business lines indicate that despite the still
weak general economic situation in Estonia, Bigbank's loan offerings are very
attractive to both private home buyers and business clients. The consumer loan
portfolio also showed solid growth, falling just short of the strong May result
in the monthly comparison.

In July, the pace of Euribor's decline accelerated - by the end of the month,
the 6-month Euribor fell below 3.6%, which is the lowest interest rate since May
2023. For most business and home loan clients, this means continued relief in
interest payments, while for Bigbank, it results in reduced interest income. On
the deposit side, this means a reduction in deposit interest rates for clients,
especially noticeable in the decline of interest rates on 1-year and longer-term
deposits. In Bigbank's deposit portfolio, the trend that started in the second
quarter continues, where an increasing number of deposit clients prefer short-
term fixed deposits in a declining interest rate environment over long-term
fixed deposits and savings deposits. Overall, this resulted in growth in the
fixed deposit portfolio and a decrease in the savings deposit portfolio. The
total deposit portfolio decreased by 18 million euros in July.

The credit quality of the loan portfolio did not deteriorate in July. The volume
of impairments and provisions for loans and financial investments amounted to
1.7 million euros, which is a significant decrease compared to the average level
of the first half of the year. The proportion of non-performing loans in the
total loan portfolio remains low.

July's net profit of 3.4 million euros is a satisfactory result. Compared to the
cumulative results of the first seven months of last year, Bigbank's net profit
has decreased by 1.5 million euros. The main factors contributing to this
decline have been the increase in net loss allowances for loans and financial
investments and provision expenses, but the rise in salary and income tax
expenses has also had a significant impact. The latter is primarily due to the
income tax obligation imposed on credit institutions in Latvia, which has
affected financial results since December 2023.

Bigbank's financial results for July 2024:

  * Deposits from customers and loans received increased by 585 million euros
    year-on-year, reaching 2.2 billion euros (+35%).
  * Loans to customers increased by 429 million euros year-on-year, reaching
    2.0 billion euros (+28%).
  * Net interest income was 9.2 million euros in July, totalling 60.6 million
    euros for the first seven months of the year. Compared to the same period
    last year, the growth for the first seven months was 5.2 million euros
    (+9%).
  * Net loss allowances for loans and financial investments and provision
    expenses amounted to 16.9 million euros for the first 7 months of the year.
    Compared to the same period last year, this was an increase of 6.7 million
    euros or 65%.
  * July's net profit was 3.4 million euros. The cumulative profit for the first
    seven months was 19.2 million euros, decreasing by 1.5 million euros or 7%
    compared to the same period in 2023.
  * Return on equity was 15.9% in July.


 Income statement, in thousands of                                  Difference
 euros                               July 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Total net operating income, incl.       9,783    66,818    60,568   6,250 +10%

 Net interest income                     9,183    60,556    55,362   5,194  +9%

 Net fee and commission income             774     5,182     4,709     473 +10%

 Total expenses, incl.                  -3,952   -26,822   -26,124    -697  +3%

 Salaries and associated charges        -2,310   -15,073   -13,652  -1,421 +10%

 Administrative expenses                  -933    -6,887    -8,431   1,544 -18%

 Profit before loss allowances           5,831    39,996    34,444   5,553 +16%

 Net loss allowances on loans and
 financial investments and other
 provisions                             -1,720   -16,932   -10,270  -6,662 +65%

 Income tax expense                       -727    -3,859    -2,846  -1,013 +36%

 Profit for the period from
 continuing operations                   3,384    19,205    21,328  -2,123 -10%

 Profit or loss before tax from
 discounted operations                       0        29      -617     646
-------------------------------------------------------------------------------
 Profit for the period                   3,384    19,234    20,710  -1,476  -7%
-------------------------------------------------------------------------------




 Business volumes, in thousands of                                  Difference
 euros                               July 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 Customer deposits and loans
 received                            2,245,878 2,245,878 1,660,907 584,972 +35%

 Loans to customers                  1,973,363 1,973,363 1,544,178 429,185 +28%



 Key figures                                                        Difference
                                     July 2024     YTD24     YTD23     YoY
-------------------------------------------------------------------------------
 ROE                                     15.9%     13.2%     17.1%  -3.9pp

 Cost / income ratio (C/I)               40.4%     40.1%     43.1%  -3.0pp

 Net promoter score (NPS)                   48        58        57      +1


Bigbank AS (www.bigbank.eu) is an Estonian capital-based bank specialising in
loans and deposits for private and business customers. In addition to operations
in Estonia, the bank has branches in Finland, Sweden, Latvia, Lithuania, and
Bulgaria and offers its products on a cross-border basis in Austria, Germany,
and the Netherlands. Bigbank's total assets exceed 2,5 billion euros.

Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee