August 2023 was again a month with solid growth and profit numbers for Bigbank. In the lending business, the corporate, home, and consumer loan portfolios continued to grow, with the home loan portfolio showing the greatest growth. Total receivables from customers exceeded the significant level of 1.5 billion euros for the first time.
In terms of offered deposit interest levels, Bigbank continues to be at the forefront of its home markets, which explains the customers' persistent high interest in deposit products. The largest growth was in the savings deposit product, whose portfolio exceeded the EUR 800 million mark at the end of the month, while the term deposit portfolio, still larger in absolute terms, exceeded the EUR 900 million level at the end of August.
The quality of the loan portfolio continues to be stably strong. The volume of loan discounts made during the 8 months of 2023 has increased in percentage exactly as much as the claims to customers (+27%).
In August, Bigbank's capital position strengthened again. There was a directed issue of notes qualifying as Additional Tier 1 (AT1) own funds of the bank, which turned out to be successful. The initial volume of 3 million euros was oversubscribed by 2.08 million euros, and the final issue volume was 5.08 million euros.
Bigbank's financial results for August 2023:
• Customer deposits and received loans grew by 487 million euros to 1.75 billion euros (+38%) in the year.
• Receivables from customers grew by 325 million euros to 1.52 billion euros (+27%).
• Net interest income was 8.9 million euros in August, a total of 64.3 million euros in the first eight months of the year. Compared to the same period last year, the increase in the first eight months was 10.1 million euros (+19%).
• In the first eight months of the year, the volume of net loan claims and discounts on financial investments was 11.9 million euros, compared to a year ago, the increase was 2.6 million euros or 27%.
• August's net profit was 3.3 million euros. The total profit of the first eight months was 24.0 million euros, the increase compared to 2022 was 5.0 million euros or 26%.
• Return on equity was 16.2% in the consolidated view of the first eight months.
| Income statement, in thousands of euros | Aug 2023 | YTD 2023 | YTD 2022 | Difference YoY | |
| Total net operating income, incl. | 9,443 | 70,011 | 58,685 | 11,326 | +19% |
| Net interest income | 8,905 | 64,266 | 54,211 | 10,055 | +19% |
| Net fee and commission income | 425 | 5,407 | 4,867 | 541 | +11% |
| Total expenses, incl. | -4,083 | -30,134 | -27,929 | -2,205 | +8% |
| Salaries and associated charges | -1,980 | -15,632 | -13,997 | -1,635 | +12% |
| Administrative expenses | -1,454 | -9,886 | -11,154 | 1,268 | -11% |
| Profit before loss allowances | 5,360 | 39,876 | 30,756 | 9,120 | +30% |
| Net loss allowances on loans and financial investments | -1,603 | -11,945 | -9,384 | -2,562 | +27% |
| Income tax expense | -482 | -3,328 | -2,385 | -943 | +40% |
| Profit for the period from continuing operations | 3,275 | 24,602 | 18,987 | 5,615 | +30% |
| Loss before tax from discounted operations | 0 | -617 | 0 | -617 | |
| Profit for the period | 3,275 | 23,985 | 18,987 | 4,998 | +26% |
| Business volumes, in thousands of euros | Aug 2023 | YTD 2023 | YTD 2022 | Difference YoY | |
| Customer deposits and loans received | 1,750,965 | 1,750,965 | 1,264,358 | 486,607 | +38% |
| Loans to customers | 1,522,992 | 1,522,992 | 1,197,629 | 325,362 | +27% |
| Key figures | Aug 2023 | YTD 2023 | YTD 2022 | Difference YoY | |
| ROE | 17.1% | 16.2% | 15.0% | +1.2pp | |
| Cost / income ratio (C/I) | 43.2% | 43.0% | 47.6% | -4.5pp | |
| Net promoter score (NPS) | 60 | 58 | 51 | +7 | |
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 1.9 billion euros.
Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee
