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Bigbank’s Financial Results for October 2023

Written by Customer Service on . Posted in Public Companies.

October 2023 results were good for Bigbank. Both the deposit portfolio and the loan portfolio grew.

In deposits, growth came from the savings deposit portfolio, the volume of which exceeded the 900-million-euro mark in October. In addition to the historically strong Dutch, German and Austrian markets, Estonian and Finnish markets, where Bigbank started offering savings deposits in 2023, have made a significant contribution to this. The volume of term deposits remained essentially at the same level in October, also at EUR 900 million.

Bigbank continues to keep deposit rates at the top of the market, which allows Bigbank’s deposit customers to increasingly benefit from the rising interest rate environment.

In terms of loans, the portfolio of business loans remained at the same level compared to the end of September. Growth figures were shown by the portfolios of home loans and consumer loans; the home loan portfolio showed the greatest growth.

The quality of the loan portfolio is still satisfactory in terms of the 10 months of 2023. Regardless, the volume of loan discounts of 3.0 million euros in October brought the volume of loan discounts for 10 months altogether to 17.0 million euros, which indicates that some decline in the quality of the loan portfolio has still occurred during the year.

The October net profit of EUR 2.8 million is a solid monthly indicator, which certainly allows us to aim for the strongest annual consolidated result in the history of Bigbank in the 10-month view of 2023.

Bigbank’s financial results for October 2023:

  • Customer deposits and loans received grew by 537 million euros to 1.85 billion euros (+41%) in the year.
  • Receivables from customers increased by 349 million euros to 1.63 billion euros (+27%).
  • Net interest income was 9.6 million euros in October, a total of 82.4 million euros in the first ten months of the year. In the comparison of the first ten months with the same period last year, the increase was 13.8 million euros (+20%).
  • In the first ten months of the year, the volume of net loss allowances on loans and financial investments was 17.0 million euros; compared to a year ago, the increase was 4.6 million euros or 38%.
  • October’s net profit was 2.8 million euros. The total profit of the first ten months was 32.2 million euros; the increase compared to 2022 was 8.5 million euros, or 36%.
  • Return on equity was 17.0% in the first ten months.

Income statement, in thousands of euros Oct 2023 YTD23 YTD22 Difference YoY
Total net operating income, incl. 10,263 92,459 74,904 17,555 +23%
Net interest income 9,635 82,425 68,635 13,790 +20%
Net fee and commission income 366 6,837 6,155 682 +11%
Total expenses, incl. -3,992 -38,080 -34,798 -3,282 +9%
Salaries and associated charges -2,038 -19,725 -17,866 -1,859 +10%
Administrative expenses -1,291 -12,448 -14,164 1,716 -12%
Profit before loss allowances 6,271 54,379 40,106 14,273 +36%
Net loss allowances on loans and financial investments -2,998 -16,984 -12,337 -4,646 +38%
Income tax expense -436 -4,606 -4,048 -558 +14%
Profit for the period from continuing operations 2,836 32,789 23,721 9,068 +38%
Loss before tax from discounted operations 0 -557 0 -557  
Profit for the period 2,836 32,232 23,721 8,511 +36%

Business volumes, in thousands of euros Oct 2023 YTD23 YTD22 Difference YoY
Customer deposits and loans received 1,853,600 1,853,600 1,316,121 537,479 +41%
Loans to customers 1,630,400 1,630,400 1,281,396 349,004 +27%
           
Key figures Oct 2023 YTD23 YTD22 Difference YoY
ROE 14.3% 17.0% 14.8% +2.1pp  
Cost / income ratio (C/I) 38.9% 41.2% 42.5% -1.3pp  
Net promoter score (NPS) 57 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 2 billion euros.

Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
www.bigbank.ee


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