Bigbank AS results for February 2023The year 2023 has started well for Bigbank. Despite a certain decrease in loan demand, Bigbank’s loan portfolio continues to grow and its quality remains high. Profit figures have increased year on year, driven by a rise in interest income. On the cost side, interest expense has grown the most. A rising Euribor has intensified competition for deposits and pushed up deposit rates. Bigbank offers competitive deposit rates in all its markets, with one-year term deposits paying interest at above the ECB rate. Therefore, customers increasingly prefer to deposit their savings with Bigbank. As a result, Bigbank’s deposit portfolio has been growing even faster than its loan portfolio.
Bigbank’s performance in February 2023: - Customer deposits and loans received grew by 458 million euros (+45%) year on year, rising to 1.49 billion euros.
- Loans to customers increased by 391 million euros (+41%) year on year to 1.35 billion euros.
- Net interest income was 6.9 million euros for February and 14.3 million euros for the first two months of 2023, an increase of 2.2 million euros (+18%) compared with the first two months of last year.
- Net loss allowances for loans and financial investments totalled 2.7 million euros for the first two months, an increase of 0.1 million euros (+5%) year on year.
- Net profit amounted to 2.9 million euros for February and 5.9 million euros for the first two months, up 2.2 million euros (+59%) on the same period last year.
- Return on equity for the two months was 16.5%.
| Income statement, in thousands of euros | Feb 23 | YTD23 | YTD22 | Difference YoY | | Total net operating income, incl. | 7,807 | 15,923 | 13,040 | 2,883 | +22% | | Net interest income | 6,914 | 14,263 | 12,065 | 2,198 | +18% | | Net fee and commission income | 620 | 1,314 | 1,186 | 128 | +11% | | Total expenses, incl. | -3,408 | -6,696 | -6,328 | -368 | +6% | | Salaries and associated charges | -1,827 | -3,725 | -3,200 | -524 | +16% | | Administrative expenses | -1,247 | -2,300 | -2,508 | 208 | -8% | | Profit before loss allowances | 4,398 | 9,227 | 6,712 | 2,515 | +37% | | Net loss allowances on loans and financial investments | -1,188 | -2,739 | -2,601 | -138 | +5% | | Income tax expense | -271 | -547 | -386 | -160 | +41% | | Profit for the period | 2,939 | 5,942 | 3,725 | 2,216 | +59% | | | | | | | | | | | | | | | | Business volumes, in thousands of euros | Feb 23 | YTD23 | YTD22 | Difference YoY | | Customer deposits and loans received | 1,487,717 | 1,487,717 | 1,029,370 | 458,346 | +45% | | Loans to customers | 1,349,996 | 1,349,996 | 959,196 | 390,800 | +41% | | | | | | | | | Key figures | Feb 23 | YTD23 | YTD22 | Difference YoY | | ROE | 16.2% | 16.5% | 12.0% | +4.5pp | | | Cost / income ratio (C/I) | 43.7% | 42.1% | 48.5% | -6.5pp | | | Net promoter score (NPS) | 56 | 53 | 48 | +5 | |
For Bigbank, the highlight in February was the public offering of the second series under its unsecured subordinated bond programme, which once again reflected investors’ strong confidence in Bigbank. Bigbank offered 5,000 unsecured subordinated bonds with a nominal value of 1,000 euros each at an annual coupon rate of 8%. The base issue size of 5 million euros was oversubscribed more than fivefold and Bigbank used the right to increase the total issue size to 15 million euros. All in all, the results of the bond offering exceeded expectations.
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 1.5 billion euros.
Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
E-mail: argo.kiltsmann@bigbank.ee
www.bigbank.ee 
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