Börsiteade

Pealkiri

Bigbank Unaudited Financial Results for 2022 Q3 and 9 Months

Teade

In  the third quarter of 2022, Bigbank  earned 14.3 million euros in net profit,
which  is 17.7% more than in the same period  last year. The profit for the nine
months  of 2022 was 28.4 million euros,  representing a year-over-year growth of
5.3 million  euros (23.0%). Profit before loss allowances and income tax for the
third  quarter  was  20.4 million  euros.  Expenses  on  credit  loss allowances
amounted  to 4.2 million euros. Interest  income amounted to 32.7 million euros,
an  increase of  12.2 million euros  (59.8%) compared  with the same period last
year.

The  Bigbank loan portfolio grew,  expanding in nine months  by 39.0% and in the
third  quarter by 12.2%. At the end of the third quarter, the Group's performing
loan portfolio amounted to 1.2 billion euros, exceeding the 2021 year-end figure
by  354.1 million  euros  (39.8%).  The  share  of  loans  over 90 days past due
accounted for 1.3% of the total portfolio, indicating a continued improvement of
the  quality of the portfolio  in the course of  the year, as the same indicator
was 3.0% for the nine months of 2021.

The  third  quarter  profit  of  the  corporate banking segment amounted to 8.1
million  euros, an  increase of  6.6 million euros  on the  previous quarter. In
addition  to the rapid  growth of the  loan portfolio and  its high quality, the
strong  quarterly  profit  of  corporate  banking segment was also significantly
influenced  by  the  gains  from  the  revaluation  of  the underlying assets of
investment  loans with  special conditions  in the  amount of 6.9 million euros.
Revaluation  gains on loans that carry  investment risk are calculated annually,
based on movements in the market value of customers' investment property and the
agreed  pattern of  profit sharing.  The corporate  loan portfolio grew by 68.7
million euros (20.0%) during the quarter.

The  housing loan  portfolio grew  by 27.7% to  186.9 million euros in the third
quarter. Compared with the end of 2021, the portfolio has increased by more than
1.5 times.

In  nine months,  the deposits  increased by  38.6% and in  the third quarter by
6.5%. The fastest growth was again shown by savings deposits, which increased by
10.7% to  542.5 million euros in the third  quarter, accounting for 43.6% of the
deposit  portfolio at  the end  of the  quarter. The Group's investment property
portfolio,  which includes  both agricultural  land and  commercial real estate,
grew to 47.4 million euros by the end of the quarter.

+----------------------------------------------+-------+-------+-------+-------+
|Income statement, in thousands of euros       |Q3 2022|Q3 2021|9M 2022|9M 2021|
+----------------------------------------------+-------+-------+-------+-------+
|Net interest income                           | 28,627| 18,493| 68,364| 51,161|
+----------------------------------------------+-------+-------+-------+-------+
|Net fee and commission income                 |  1,891|  1,676|  5,511|  4,652|
+----------------------------------------------+-------+-------+-------+-------+
|Net income (loss) on financial assets         |   -161|    -57|   -464|   -168|
+----------------------------------------------+-------+-------+-------+-------+
|Net other operating income                    |    170|   -426|    243| -1,302|
+----------------------------------------------+-------+-------+-------+-------+
|Total net operating income                    | 30,527| 19,686| 73,654| 54,343|
+----------------------------------------------+-------+-------+-------+-------+
|Salaries and associated charges               | -5,279| -4,308|-15,787|-12,616|
+----------------------------------------------+-------+-------+-------+-------+
|Administrative expenses                       | -4,586| -3,780|-12,723|-10,221|
+----------------------------------------------+-------+-------+-------+-------+
|Depreciation, amortisation and impairment     | -1,034|   -842| -3,003| -2,531|
+----------------------------------------------+-------+-------+-------+-------+
|Other gains (losses)                          |    804|  3,873|    673|  4,234|
+----------------------------------------------+-------+-------+-------+-------+
|Total expenses                                |-10,095| -5,057|-30,840|-21,134|
+----------------------------------------------+-------+-------+-------+-------+
|Profit before loss allowances                 | 20,432| 14,629| 42,814| 33,209|
+----------------------------------------------+-------+-------+-------+-------+
|Net loss allowances on loans and financial    |       |       |       |       |
|investments                                   | -4,186| -1,488|-10,744| -7,988|
+----------------------------------------------+-------+-------+-------+-------+
|Profit before income tax                      | 16,246| 13,141| 32,070| 25,221|
+----------------------------------------------+-------+-------+-------+-------+
|Income tax expense                            | -1,946|   -989| -3,708| -2,168|
+----------------------------------------------+-------+-------+-------+-------+
|Profit for the period                         | 14,300| 12,152| 28,362| 23,053|
+----------------------------------------------+-------+-------+-------+-------+


+-----------------------------------------+-----------+------------+-----------+
|Statement of financial position, in      |           |            |           |
|thousands of euros                       |30 Sep 2022|30 June 2022|30 Sep 2021|
+-----------------------------------------+-----------+------------+-----------+
|Cash and cash equivalents                |    141,163|     173,611|    109,535|
+-----------------------------------------+-----------+------------+-----------+
|Debt instruments at FVOCI                |     45,171|      46,065|     47,066|
+-----------------------------------------+-----------+------------+-----------+
|Loans to customers                       |  1,258,177|   1,114,146|    760,725|
+-----------------------------------------+-----------+------------+-----------+
|Other assets                             |    103,356|     101,584|    101,999|
+-----------------------------------------+-----------+------------+-----------+
|Total assets                             |  1,547,867|   1,435,406|  1,019,325|
+-----------------------------------------+-----------+------------+-----------+
|Customer deposits and loans received     |  1,281,161|   1,204,918|    826,064|
+-----------------------------------------+-----------+------------+-----------+
|Subordinated notes                       |     40,049|      20,023|      5,055|
+-----------------------------------------+-----------+------------+-----------+
|Other liabilities                        |     17,521|      17,449|     14,990|
+-----------------------------------------+-----------+------------+-----------+
|Total liabilities                        |  1,338,731|   1,242,390|    846,109|
+-----------------------------------------+-----------+------------+-----------+
|Equity                                   |    209,136|     193,016|    173,216|
+-----------------------------------------+-----------+------------+-----------+
|Total liabilities and equity             |  1,547,867|   1,435,406|  1,019,325|
+-----------------------------------------+-----------+------------+-----------+

In addition to regular activities, several circumstances had an impact on the
third quarter results and the Group's future business in general:

The  most important  event of  the period  was the  listing of Bigbank unsecured
subordinated  bonds on  the Nasdaq  Tallinn Stock  Exchange on 22 September. The
base  amount of 10 million euros was oversubscribed by more than twice. The size
of  the issue was 20 million euros. 20 thousand bonds were issued with a nominal
value  of 1,000 euros each, a fixed annual  coupon rate of 8%, and a maturity of
10 years.  20 million euros of additional capital  helps the bank sustain growth
in the corporate banking and housing loan segments.

This year the beginning of the new business strategy period of 2022-2026 started
for  Bigbank. In  order to  support the  new business  strategy and  achieve the
expected  return  on  capital,  the  management  board  of  Bigbank  AS has made
decisions concerning future operations of the Swedish and Bulgarian branches. In
August  it was decided to  suspend the issue of  new loans at the Swedish branch
from  1 September 2022, in October  it was decided  to suspend the  issue of new
loans  at the  Bulgarian branch  from 1 November  2022. The Group  will continue
raising  deposits and servicing  its existing loan  portfolio in both Sweden and
Bulgaria.

Comment by the Bigbank Chairman of the Management Board Martin Länts:

?Despite the turbulent external environment, we have reason to be satisfied with
the Bigbank third quarter financial performance - the period was characterised
by a strong growth of the loan portfolio, continued improvement of its quality
and good profits.

In the third quarter the loan portfolio grew most in both the corporate loan and
housing loan sectors, which is one of the most significant goals of the bank's
business strategy. An increase in selling Euribor-linked loan products helps us
diversify our portfolio and has a positive impact on the profits in a situation
where interest rates are increasing and taking deposits is becoming more
expensive.

This summer the rating agency Moody's Investors Service completed the assessment
of  Bigbank and assigned the  bank Baa3 long-term and Prime-3 short-term foreign
and  local  currency  bank  deposit  ratings.   The investment-grade rating that
Moody's assigned to us, as disclosed on 1 July 2022, is assurance to our current
depositors  and partners about Bigbank's operating  model and the quality of our
portfolio as well as supports our further international expansion.

The base volume of the issue of unsecured subordinated bonds in September was
oversubscribed by more than twice. This was a landmark achievement for Bigbank,
indicating that the investors have faith in our business strategy and ability to
successfully implement the strategy. I thank all the investors for placing their
trust with Bigbank".

The Bigbank financial statements can be found
here: https://investor.bigbank.eu/reporting/

Bigbank AS (www.bigbank.eu (http://www.bigbank.eu)) is an Estonian capital-based
bank  specialised on  loans and  deposits for  private and  business clients. In
addition  to operations  in Estonia,  the bank  has branches in Finland, Sweden,
Latvia,  Lithuania, and Bulgaria and  offers its products in  the form of cross-
border  services  also  in  Austria,  Germany,  and the Netherlands. The Bigbank
balance sheet total is more than 1.5 billion euros.


Argo Kiltsmann
Member of the Management Board
Phone: +372 5393 0833
E-mail: [email protected]
www.bigbank.ee (http://www.bigbank.ee)