Bigbank AS Results for January 2025
Bigbank started 2025 with continued growth and strong profitability.
The loan portfolio growth was driven by focus products: the home loan portfolio increased by 18 million euros and the business loan portfolio by 11 million euros in a month. The consumer loan portfolio remained close to the level at the end of 2024, growing by 1 million euros over the month. In total, the loan portfolio grew by nearly 30 million euros in the first month of the year.
The deposit portfolio grew even more in January. In a declining interest rate environment, Bigbank offered attractive deposit rates on both term and savings deposits across all its home markets. As a result, the portfolios of both deposit products increased by more than 75 million euros, bringing the bank’s total deposit portfolio growth to 151 million euros. This is a strong result that confirms Bigbank’s ability to significantly expand its depositor customer base and grow its deposit portfolio even in a short period.
Interest income increased compared to January of the previous year – the positive impact of the larger loan portfolio outweighed the negative impact of the declining interest rate environment on interest income. At the same time, interest expenses also increased significantly due to the growth of the deposit portfolio. As a combined effect of these factors, net interest income in January amounted to 8.5 million euros, which was 0.6 million euros lower than in January of the previous year.
A positive development was that, despite the significantly increased loan portfolio, the net cost of expected credit losses and provisions decreased by 0.4 million euros compared to January of the previous year, totaling 1.8 million euros. The credit quality of the loan portfolio remained at a similar level to the end of 2024.
Net profit for January was 3.0 million euros – considering the continuing decline in the interest rate environment and the resulting pressure on net interest income, this is a solid result. Several positive developments stood out: compared to January 2024, operating expenses remained at the same level, and net fee and commission income increased by 0.1 million euros. A negative development was the increase in income tax expenses by 0.3 million euros, primarily due to the higher income tax rates that came into effect in Estonia and Lithuania at the beginning of 2025.
Bigbank’s financial results for January 2025:
- Deposits from customers and loans received increased by 550 million euros year-on-year, reaching 2.55 billion euros (+27%).
- Loans to customers grew by 535 million euros year-on-year, reaching 2.22 billion euros (+32%).
- Net interest income in January was 8.5 million euros, decreasing by 0.6 million euros compared to January of the previous year (-7%).
- Net allowance for expected credit losses and provision expenses amounted to 1.8 million euros in January, which is 0.4 million euros less than a year ago (-18%).
- Net profit for January was 3.0 million euros, decreasing by 0.2 million euros compared to the same period in 2024 (-7%).
- Return on equity in January was 13.4%.
| Income statement, in thousands of euros | Jan 2025 | YTD25 | YTD24 | Difference YoY | |
| Total net operating income, incl. | 9,334 | 9,334 | 9,675 | -341 | -4% |
| Net interest income | 8,479 | 8,479 | 9,087 | -608 | -7% |
| Net fee and commission income | 833 | 833 | 722 | 112 | +15% |
| Total expenses, incl. | -3,924 | -3,924 | -3,918 | -7 | +0% |
| Salaries and associated charges | -2,406 | -2,406 | -2,214 | -191 | +9% |
| Administrative expenses | -826 | -826 | -1,025 | 199 | -19% |
| Profit before loss allowances | 5,409 | 5,409 | 5,757 | -348 | -6% |
| Net allowance for expected credit losses and provision expenses | -1,773 | -1,773 | -2,150 | 378 | -18% |
| Income tax expense | -615 | -615 | -358 | -257 | +72% |
| Profit for the period from continuing operations | 3,022 | 3,022 | 3,248 | -226 | -7% |
| Profit or loss before tax from discounted operations | 0 | 0 | 0 | 0 | |
| Profit for the period | 3,022 | 3,022 | 3,248 | -226 | -7% |
| Business volumes, in thousands of euros | Jan 2025 | YTD25 | YTD24 | Difference YoY | |
| Customer deposits and loans received | 2,552,433 | 2,552,433 | 2,002,513 | 549,920 | +27% |
| Loans to customers | 2,222,375 | 2,222,375 | 1,687,528 | 534,847 | +32% |
| Key figures | Jan 2025 | YTD25 | YTD24 | Difference YoY | |
| ROE | 13.4% | 13.4% | 15.5% | -2.1pp | |
| Cost / income ratio (C/I) | 42.0% | 42.0% | 40.5% | +1.6pp | |
| Net promoter score (NPS) | 58 | 58 | 57 | +1 |
Compared to the financial results published for January 2024, the net interest income and the net allowance for expected credit losses for the prior period have been adjusted, both reduced by 0.3 million euros. The adjustment is related to an identified error, where interest income from impaired financial assets had been accrued on the gross exposure of the financial assets, rather than on net basis. This correction does not impact the net profit for January 2024.
Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 January 2025, the bank 's total assets amounted to 2.9 billion euros, with equity of 273 million euros. Operating in nine countries, the bank serves more than 168,000 active customers and employs over 500 people. The credit rating agency Moody 's has assigned Bigbank a long-term bank deposit rating of Ba1, along with a baseline credit assessment (BCA) and an adjusted BCA of Ba2.
Argo Kiltsmann
Member of the Management Board
Tel: +372 53 930 833
Email: Argo.Kiltsmann@bigbank.ee
www.bigbank.ee
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