Bigbank's gross loan portfolio reached a record 2.2 billion euros at the end of the year, increasing by 137 million euros (+7%) quarter on quarter and by 535 million euros (+32%) year on year. The focus product lines showed solid quarter-on-quarter growth. The business loan portfolio grew by 61 million euros (+9%) to 764 million euros and the home loan portfolio by 79 million euros (+15%) to 613 million euros. The consumer loan portfolio decreased by 9 million euros (-1%) quarter on quarter to 828 million euros.
Bigbank's deposit portfolio grew in the fourth quarter mainly through term deposits. During the quarter, the term deposit portfolio grew by 118 million euros to 1.36 billion euros (+10%) and the savings deposit portfolio by 8 million euros to 1.03 billion euros (+1%). The Group's total deposit portfolio grew by 127 million euros (+6%) quarter on quarter and by 456 million euros (+24%) year on year to 2.39 billion euros.
In December, Bigbank also started offering current accounts to existing retail customers in Estonia, which will further diversify the deposit portfolio, but the balance of current accounts was still marginal at the end of 2024.
In the fourth quarter of 2024, Bigbank earned a net profit of 4.6 million euros. Net profit for the 12 months of 2024 was 32.3 million euros. Compared to the restated results for 2023, fourth-quarter net profit decreased by 6.6 million euros and 12-month net profit by 8.3 million euros.
In the fourth quarter, interest income grew by 5.7 million euros year on year to 43.4 million euros (+15%). Interest expense grew by 5.3 million euros to 20.1 million euros (+36%). Bigbank's net interest income for the fourth quarter was 23.3 million euros, up 0.4 million euros year on year, and net interest income for the year was 102.4 million euros, up 6.7 million euros (+7%) year on year.
In the fourth quarter, the credit quality of the loan portfolio remained stable. However, changes were observed in the credit quality of the loan portfolio over the course of 2024. The decline in the quality of the consumer loan portfolio, which started in the last quarter of 2023, continued in the first quarter, but the situation stabilised in the following quarters. During the year, there was also some deterioration in the business loan portfolio, where the share of past due loans increased, but due to strong collateral positions this did not have a significant impact on loss allowances. The credit quality of home loans remained very good throughout the year.
In the fourth quarter, loss allowances for loans decreased by 0.3 million euros year on year to 4.6 million euros, but during the year loss allowances grew by 5.0 million euros to 23.9 million euros. Compared to the end of 2023, the share of stage 3 (non-performing) loans grew by 59.5 million euros and accounted for 4.9% of the total loan portfolio at the end of 2024 (+1.9 pp from the end of 2023). Compared to the end of the third quarter, the share of stage 3 loans in the total loan portfolio remained stable.
The Group's investment property portfolio increased to 66.4 million euros by the end of the fourth quarter (+35% from end-2023). Changes in the fair value of investment properties resulted in a loss of 1.6 million euros for both the fourth quarter and the full year. For comparison, the 12-month result for 2023 was a profit of 3.4 million euros, which included a profit of 4.4 million euros in the fourth quarter. This is also the main reason why the Group's net profit for the fourth quarter of 2024 was 6.6 million euros lower than in the same period of 2023.
| Income statement, in thousands of euros | Q4 2024 | Q4 2023 | 12M 2024 | 12M 2023 |
| Net interest income | 23,266 | 22,949 | 102,356 | 95,667 |
| Net fee and commission income | 2,499 | 2,168 | 9,224 | 8,284 |
| Net income (loss) on financial assets | 1,145 | 4,246 | 5,246 | 9,222 |
| Net other operating income | -1,350 | -1,940 | -4,150 | -3,626 |
| Total net operating income | 25,560 | 27,423 | 112,676 | 109,547 |
| Salaries and associated charges | -8,204 | -6,345 | -27,780 | -24,032 |
| Administrative expenses | -2,766 | -4,025 | -11,547 | -15,183 |
| Depreciation, amortisation and impairment | -2,052 | -2,039 | -8,349 | -6,400 |
| Total expenses | -13,022 | -12,409 | -47,676 | -45,615 |
| Provision expenses (income) | -1,730 | 4,662 | -1,836 | 3,780 |
| Profit before loss allowances | 10,808 | 19,676 | 63,164 | 67,712 |
| Net loss allowances on loans and financial investments | -4,606 | -4,896 | -23,899 | -18,881 |
| Profit before income tax | 6,202 | 14,780 | 39,265 | 48,831 |
| Income tax expense | -1,514 | -3,432 | -7,017 | -7,601 |
| Profit for the period from continuing operations | 4,688 | 11,348 | 32,248 | 41,230 |
| Income (loss) from discontinued operations | 0 | -18 | 29 | -575 |
| Profit for the period | 4,688 | 11,330 | 32,277 | 40,655 |
| Statement of financial position, in thousands of euros | 31 Dec 2024 | 30 Sept 2024 | 31 Dec 2023 restated* |
| Cash and cash equivalents | 448,661 | 475,284 | 518,672 |
| Debt securities at FVOCI | 22,334 | 14,992 | 15,400 |
| Loans to customers | 2,196,482 | 2,059,625 | 1,662,002 |
| Other assets | 110,939 | 87,126 | 91,324 |
| Total assets | 2,778,416 | 2,637,027 | 2,287,398 |
| Customer deposits and loans received | 2,401,689 | 2,274,269 | 1,946,314 |
| Subordinated notes | 91,668 | 83,437 | 76,109 |
| Other liabilities | 15,277 | 14,585 | 20,182 |
| Total liabilities | 2,508,634 | 2,372,291 | 2,042,605 |
| Equity | 269,782 | 264,736 | 244,793 |
| Total liabilities and equity | 2,778,416 | 2,637,027 | 2,287,398 |
Commentary by Martin Länts, chairman of the management board of Bigbank AS:
"In 2024, Bigbank continued its strategic growth, focusing on expanding its loan and deposit portfolios and developing everyday banking services. Our loan portfolio grew to 2.2 billion euros (+32%), while our deposit portfolio reached 2.4 billion euros (+24%). The number of active customers increased by 16,600 over the year to more than 167,300. Customer satisfaction remained high, with our Net Promoter Score (NPS) at 57 points.
One of the key achievements of the year was integration with the SEPA instant payment system and the launch of a current account in Estonia, enabling customers to send and receive payments within seconds, 24/7. This is an important step towards everyday banking services, which we plan to expand to our other markets soon.
The main drivers of our continued growth were home and business loans - our home loan portfolio grew by 75%, while business loans increased by 32% year-on-year. The trust our customers place in us, thanks to our personalised approach, fast processes and competitive terms, confirms that we are on the right track. At the same time, we maintained attractive deposit rates and expanded our deposit offering - for example, we introduced a term deposit for retail customers in Lithuania and a savings deposit in Latvia and Bulgaria. We also launched a savings deposit for corporate customers in Latvia and Lithuania.
Despite the declining Euribor environment and continued high deposit rates, Bigbank maintained strong profitability, generating a net profit of 32.3 million euros in 2024. This demonstrates our ability to offer competitive products and services in both the lending and deposit markets, while ensuring sustainable growth.
In November 2024, Bigbank reached a significant milestone when the central bank of Estonia designated us as a systemically important credit institution. This decision underscores our growing role in Estonia's financial sector and validates our strategic direction. We also carried out successful bond issues, raising 20.4 million euros in additional capital to support further expansion and strengthen our capital structure.
I sincerely thank the entire Bigbank team for their dedication and determination. My gratitude also goes to our customers, investors and partners - your trust and support inspire us to deliver even better financial services and to grow together."
Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 December 2024, the bank's total assets amounted to nearly 2.8 billion euros, with equity close to 270 million euros. Operating in nine countries, the bank serves more than 167,000 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
