accounting recordsBank Financial results 2023-Q3 and 9M No review of financial statements-120 c

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Bigbank's loan portfolio grew and expanded by €97 million (+6%) in the third quarter and €259 million (+19%) in the nine months to a record €1.6 billion.

The mortgage portfolio grew by 38 million euros (+14%) to 307 million euros, the corporate loan portfolio increased by 29 million euros (+5%) to 579 million euros and the consumer loan portfolio grew by 27 million euros (+4%) to 720 million euros for the quarter.

Compared to the end of the third quarter of 2022, the gross loan portfolio grew by 360 million euros (+29%).

The quality of the loan portfolio remained strong in the third quarter, with only 1.6% of loans over 90 days past due as of the report date.

The deposit portfolio grew by €184 million (+12%) over the quarter and by €415 million (+30%) over the nine months, reaching €1.8 billion.TAThis means that compared to the third quarter a year ago, interest income on Euribor-related loans increased significantly, but on a quarterly basis growth slowed.

Corporate banking performed well in the third quarter, supported by strong loan portfolio quality and growth, as well as net gains from the revaluation of the underlying assets of investment loans with special terms (loans with hybrid instrument features).

The segment's pre-tax profit for the third quarter amounted to €9.0 million and the loan portfolio grew by €29 million (+5%) to €579 million for the quarter. This figure includes net gains from the revaluation of the underlying assets of loans with hybrid instrument features, which amounted to EUR 3.7 million.

The net gain from the revaluation of the underlying assets of loans with hybrid instrument features is calculated annually based on the increase in the market value of the customers' investment properties and the contractual share in the profit distribution. Depending on changes in the market value of investment properties, the value of underlying assets may also decline in subsequent periods, but the bank does not compensate customers for declines in the value of underlying assets to a greater extent than the gains recorded in previous periods.

Competition to attract deposits intensified and deposit rates continued to rise faster than Euribor in the third quarter. Bigbank has traditionally been a provider of the best interest rates for depositors in its markets of operation, which is also confirmed by the 30% growth of our deposit portfolio this year.

We have successfully expanded our product line by launching a savings deposit in the Estonian market in the fall, and now we offer both savings deposits and time deposits to both private and corporate customers.

Besides regular business, we continued to raise capital in the third quarter of 2023. In August, Bigbank again issued bonds qualifying as additional equity capital (AT1 capital) in a private placement, with which we raised €5.1 million of additional capital.

The equity included will help realize our mortgage and business loan growth plans and cover additional capital requirements arising from the macroeconomic environment.

I am grateful to all investors for their confidence. "

Bigbank AS (www.bigbank.eu) is an Estonian capital bank specializing in loans and deposits for private and corporate customers. In addition to its operations in Estonia, the bank has branches in Finland, Sweden, Latvia, Lithuania and Bulgaria and offers its products internationally in Austria, Germany and the Netherlands. Bigbank's total assets exceed EUR 2 billion.

Argo Kiltsman, Member of the Management Board

Phone: +372 5393 0833

E-mail: [email protected]

www.bigbank.ee