Results of Bigbank AS for May 2024

On June 14, 2024, at 11:00 AM Eastern Time | Source: BIGBANK AS. May 2024 turned out to be the most successful month of the year for Bigbank. A significant increase in the loan portfolio was recorded, which became the largest this year, while the deposit portfolio continues to grow as well. Net profit was earned.4.0 million eurosand the return on equity was19.6%which are powerful indicators at the moment.

In a month, the loan portfolio increased by more than55 million eurosThis demonstrates that the favorable results of April were extended by an even more successful May. The most significant growth was observed in the area of housing loans, with a notable increase seen in Estonia, Latvia, and Lithuania. Considering the current trends in the real estate market, it can be confidently stated that Bigbank's offerings in housing loans are becoming increasingly attractive to a wide audience of potential borrowers.

It is also worth noting the significant growth in both business lending and consumer lending segments. In May, the moderate decline of Euribor, which began in April, continued. Market expectations regarding a reduction in interest rates by the European Central Bank intensified throughout May, which materialized in early June with a decrease in base rates.0.25 percentThis means that a moderate decrease in deposit rates has also become noticeable across all Bigbank deposit markets.

Against the backdrop of Bigbank's deposit products, this has led to a growing number of clients once again preferring term deposits over savings accounts in the context of falling interest rates, locking in a suitable rate for a longer period.

The positive trend in the quality of the credit portfolio, which began in April, continued in May. This month, the amount of reserves for potential losses on loans and financial investments, as well as provisioning expenses, amounted to1.7 million euros...which is a significant decrease compared to the figures from the first quarter. The share of non-performing loans in the total loan portfolio remains at a low level. Net profit in May amounted to...4.0 million euros- this is a strong result.

Compared to the accumulated data for the first five months of last year, Bigbank's net profit has decreased by2.2 million eurosThe main factor behind this decline was the increase in reserves for potential losses on loans and financial investments over the past five months, but expenses related to salaries and income taxes also had a significant impact.

The last effect is largely due to the corporate income tax obligation imposed on credit institutions in Latvia, which has impacted financial results since December 2023.

Financial results of Bigbank for May 2024:

• Client deposits and attracted funds increased by652 million euros, having composed2.2 billion euros(+42%).
• The loans to clients have increased by360 million euroshaving reached1.8 billion euros(+24%).
• The net interest income for May amounted to9.5 million euros, the total amount for the first five months of the year –44.7 million euros.
• The net profit in May amounted to4.0 million euros.
• The total profit for the first five months amounted to13.4 million eurosthat on2.2 million eurosor14%less than in the same period in 2023.

Key financial indicators (thousands of euros):

• The total operating income amounted to10,734In just the first five months –48,906.
• Net interest income –9.544 million eurosthat in total over five months amounted to44.710 million euros.
• Net income from commissions –751, in total –3.652 million euros.
• The total costs amounted to-4,300including salary costs-2,168administrative expenses-1,434.
• The profit before reserves amounted to6.435 million euros.
• The reserves for potential loan losses amounted to-1.663 million eurosand tax expenses-723.
• The net profit from continuing operations amounted to4.049 million euros.

The total amount of client deposits and attracted funds amounted to2,216,907 million euros, having increased by652.256 million eurosThe loans to clients amounted to1,849,189 million euros, having increased by360.024 million euros.

Key indicators for May 2024:

• Return on equity –19.6%.
• Cost/Income Ratio –40.1%.
• NPS Index –57.

Bigbank AS, founded on Estonian capital, is a bank that specializes in loans and deposits for both private and business clients. In addition to Estonia, the bank has branches in Finland, Sweden, Latvia, Lithuania, and Bulgaria, and offers its products internationally in Austria, Germany, and the Netherlands. The total assets of Bigbank exceed2.5 billion euros.

Argo Kiltzmann, board member. Phone:+372 5393 0833Email:[email protected].