Bigbank AS Reports Impressive Growth in May 2025 Results

Positive Developments for Bigbank AS in May 2025

May marked a month of promising financial results for Bigbank AS, as both loan and deposit portfolios experienced notable growth, ensuring sustained profitability.

Growth in Loan Portfolio

The total loan portfolio saw an increase of 43 million euros in May. Business loans led this expansion with an impressive growth of 22 million euros, while home loans contributed 15 million euros. Concurrently, the consumer loan sector also rose by 6 million euros, showcasing a solid demand for financing across different customer segments.

Increase in Deposit Portfolio

In parallel, the deposit portfolio grew by 26 million euros in May, demonstrating customer trust and a preference for saving in a fluctuating interest rate environment. Notably, savings deposits surged by 18 million euros, while term deposits rebounded with an 8 million euro increase, reflecting a healthy appetite for savings options among customers.

Resilience in Net Interest Income

Despite the backdrop of decreasing interest rates, Bigbank's net interest income for the first five months of 2025 surpassed last year's figures by 1 million euros. This was primarily facilitated by the strategic growth of the loan portfolio, combined with optimal management of the deposit volume and pricing. These factors effectively counterbalanced the effects of dwindling interest income stemming from the falling Euribor rates and rising interest expenses linked to deposit growth.

Reduction in Credit Loss Provisions

Another encouraging aspect was the decline in net allowances for expected credit losses and provision expenses compared to 2024. In May, these expenses totaled 0.9 million euros, bringing the five-month total to 6.7 million euros—indicating a reduction of 40% compared to the previous year, driven largely by enhanced repayment behavior in the consumer loan segment across the Baltic countries.

Net Profit and Expenses Overview

Bigbank's net profit for May stood strong at 3.4 million euros. This performance was complemented by improved net interest income and decreased expected credit loss provisions. Additionally, net fee and commission income saw an increase of 0.5 million euros for the first five months, while administrative expenses dropped by 0.4 million euros, illustrating efficient cost management practices.

Team Growth and Associated Costs

By the end of May, Bigbank's workforce had expanded to 600 employees, reflecting the bank's growth trajectory and enhanced operational capacity. This growth, however, was accompanied by a rise in personnel expenses totaling 2.2 million euros over the five-month period, as the bank continued to invest in its human resources to support ongoing expansion.

Impact of Increased Tax Obligations

Interestingly, Bigbank experienced a 1.3 million euro increase in income tax expenses over the same period. This rise can largely be attributed to the introduction of higher income tax rates in both Estonia and Lithuania at the beginning of 2025.

Key Financial Indicators for May 2025

• Customer deposits and loans received increased by 357 million euros, reaching 2.57 billion euros (+16%).
• Loans to customers grew by 564 million euros year-on-year, amounting to 2.41 billion euros (+31%).
• Net interest income was 8.8 million euros in May; the total for the first five months reached 42.8 million euros, reflecting a 2% increase from the previous year.
• Net allowance for expected credit losses totaled 6.7 million euros in the first five months, down by 40% compared to the previous year.
• Net profit for May was 3.4 million euros, bringing cumulative profit for the first five months to 16.3 million euros (+22%).
• Return on equity in May was 14.7%.

Financial Adjustments and Impact

Recent adjustments to the financial results for May 2024 have recalibrated the reported net interest income and expected credit losses by 1.1 million euros each, correcting an error related to interest income from impaired financial assets.

Bigbank AS (Tallinn: BIGB080032A), with over three decades of operational experience, stands as a beacon of financial stability. By May 31, 2025, the bank's total assets reached 3.0 billion euros, with equity of 278 million euros. Servicing over 172,000 active customers across nine countries, Bigbank has grown its team to 600 dedicated individuals. Furthermore, the credit rating agency Moody's has acknowledged Bigbank with a long-term bank deposit rating of Ba1, along with a baseline credit assessment of Ba2.

Frequently Asked Questions

What were the key highlights of Bigbank AS's May 2025 results?

The key highlights included a 43 million euro growth in the loan portfolio, a 26 million euro increase in deposits, and a net profit of 3.4 million euros.

How did Bigbank AS manage to grow its net interest income?

Despite falling interest rates, Bigbank maintained profitability through optimal loan growth and effective management of deposit volumes, leading to a net interest income increase.

What factors contributed to the decline in credit loss provisions?

The reduction in expected credit loss provisions was largely attributed to improved repayment behavior observed within the consumer loan sector across the Baltic region.

How did personnel expenses change in May 2025?

Personnel expenses rose by 2.2 million euros, largely due to team expansion and salary increases as the bank continued to develop its workforce.

What tax changes impacted Bigbank AS in 2025?

Bigbank faced a 1.3 million euro increase in income tax expenses, primarily due to higher income tax rates introduced in Estonia and Lithuania.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

I like to travel, experience other cultures, and find inspiration in daily life when I'm not writing or examining market trends. My passion is utilizing sound financial practices to help people reach their financial objectives and lead the best lives possible.

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