Bigbank’s Financial Results for May 2023
May 2023 was another successful month for Bigbank. Both the loan portfolio and the deposit portfolio continued to grow. The trend, according to which the deposit portfolio grew faster than the loan portfolio, also continued. This is justified by the fact that Bigbank is continuing to pass on the impact of the growing Euribor by consistently offering its deposit customers one of the highest deposit rates in the markets of its operation.
At the end of May, Bigbank entered the Finnish market with a savings deposit product, which has so far gained great popularity among customers in Germany, the Netherlands and Austria. It is expected that the Finnish savings deposit will make a significant contribution to the group’s deposit portfolio in the coming months.
The relatively low volume of net loss allowances on loans and financial investments is also positive. With a loan portfolio that is more than a third larger than a year ago, thanks to the continued high quality of the loan portfolio, the volume of discounts has increased by only 3% compared to the same period last year in a five-month consolidated view.
Bigbank’s capital position also strengthened in May. Bigbank carried out a private placement of Additional Tier 1 Temporary Write-Down Notes (AT1 bonds), which turned out to be a complete success. The initial volume of 3 million euros was oversubscribed and the volume of the issue finally increased to 3.39 million euros.
Bigbank financial results for May 2023:
- Deposits from customers and loans raised grew by 403 million euros on year, rising to 1.56 billion euros (+35%) in the year.
- Receivables from customers increased by 366 million euros to 1.45 billion euros (+34%).
- Net interest income was 8.5 million euros in May, a total of 38.5 million euros in the first five months of the year. In the comparison of the first five months with the same period last year, the increase was 5.7 million euros (+17%).
- In the first five months of the year, the volume of net loan claims and discounts on financial investments is 7.1 million euros, compared to a year ago, the increase is 0.2 million euros, or 3%.
- May’s net profit was 3.6 million euros. The total profit of the first five months was 15.6 million euros, an increase of 5.0 million euros, or 48% compared to 2022.
- The return on equity is 17.1% in the consolidated view of the first five months.
| Income statement, in thousands of euros | May 2023 | YTD23 | YTD22 | Difference YoY | |
| Total net operating income, incl. | 8,932 | 42,056 | 35,607 | 6,449 | +18% |
| Net interest income | 8,465 | 38,458 | 32,794 | 5,664 | +17% |
| Net fee and commission income | 497 | 3,334 | 3,002 | 332 | +11% |
| Total expenses, incl. | -3,611 | -17,323 | -16,920 | -402 | +2% |
| Salaries and associated charges | -1,946 | -9,610 | -8,611 | -999 | +12% |
| Administrative expenses | -1,303 | -6,026 | -6,705 | 680 | -10% |
| Profit before loss allowances | 5,322 | 24,733 | 18,687 | 6,046 | +32% |
| Net loss allowances on loans and financial investments | -1,089 | -7,089 | -6,872 | -217 | +3% |
| Income tax expense | -559 | -1,957 | -1,274 | -683 | +54% |
| Profit for the period from continuing operations | 3,674 | 15,687 | 10,541 | 5,146 | +49% |
| Profit or loss before tax from discounted operations | -60 | -132 | 0 | -132 | |
| Profit for the period | 3,613 | 15,555 | 10,541 | 5,015 | +48% |
| Business volumes, in thousands of euros | May 2023 | YTD23 | YTD22 | Difference YoY | |
| Customer deposits and loans received | 1,564,651 | 1,564,651 | 1,161,320 | 403,331 | +35% |
| Loans to customers | 1,448,792 | 1,448,792 | 1,082,897 | 365,895 | +34% |
| Key figures | May 2023 | YTD23 | YTD22 | Difference YoY | |
| ROE | 19.6% | 17.1% | 13.6% | +3.5pp | |
| Cost / income ratio (C/I) | 40.4% | 41.2% | 47.5% | -6.3pp | |
| Net promoter score (NPS) | 58 | 57 | 48 | +9 | |
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
Email: [email protected]
www.bigbank.ee
