Bigbank AS Sees Positive Growth in October
Bigbank has enjoyed a stable month, highlighting a positive trajectory in both loan and deposit portfolios, which underpins its robust profitability.
During October, the bank's loan portfolio expanded by an impressive 34 million euros, culminating in a total of 2.6 billion euros by month’s end. The surge was propelled by business loans, which rose by 16 million euros, alongside home loans that experienced an increase of 18 million euros. Notably, the consumer loan segment plateaued, maintaining its stature at the end of September.
The deposit portfolio likewise saw a significant uptick, climbing by 44 million euros in October. Amidst a stabilizing interest rate landscape, the 6-month Euribor has shown a marginal upward trend recently, resulting in higher rates for long-term deposits and stimulating customer interest. This growth was primarily fueled by the term deposit sector, which advanced by 24 million euros, while savings deposits increased by 16 million euros.
In an exciting development, Bigbank introduced current accounts for retail customers in Latvia during October. Latvian clientele can now take advantage of competitive conditions similar to those enjoyed by customers in Estonia and Lithuania. Here, clients are delighted to earn 2% annual interest on their idle funds, with all transaction fees waived. The aggregate balance of current accounts further swelled by 3 million euros, reaching a commendable 12 million euros by month’s conclusion.
Positive Financial Outcomes Amidst Competitive Landscape
The stabilizing interest rates have eased the pressure on net interest income, allowing for a more favorable comparison in year-on-year interest income figures. This shift is gradually being driven by the ongoing expansion of the loan portfolio. In the first ten months, net interest income climbed by 2.3 million euros compared to last year, evidencing a resilient financial strategy.
Bigbank’s loan portfolio maintains high credit quality, with a marked decrease in net allowances for expected credit losses and provision expenses, down 8.8 million euros or 47% compared to the corresponding timeframe last year. The significant enhancement in payment performance across consumer loans in all three Baltic nations has positively influenced these statistics. Fortunately, the share of non-performing loans remains stable at 4.5%.
Moreover, October's net profit amounted to a formidable 3.1 million euros. This gain is attributed not only to the growth in net interest income, but also a noteworthy increase in net fee income, which rose by 1.2 million euros over the prior ten-month period.
Opportunities and Challenges Ahead
As of month-end, Bigbank's workforce totaled 624 employees. The company has seen team expansion and salary increments contributing to an increase of 5.7 million euros in salary costs over the past ten months relative to the previous year. However, there was a rise in income tax obligations, climbing by 1.9 million euros, which resulted from increased tax rates recently instituted in Estonia and Lithuania.
Key Financial Indicators for October 2025
Some key performance metrics include:
- Customer deposits and loans received increased by 422 million euros year-on-year, reaching a total of 2.8 billion euros (+18%).
- Loans to customers grew by 511 million euros year-on-year, reaching 2.6 billion euros (+24%).
- Net interest income amounted to 9.4 million euros in October, with the cumulative ten-month total hitting 88.1 million euros, reflecting a year-on-year increase of 2.3 million euros (+3%).
- Net allowance for expected credit losses and provision expenses aggregated to 10.1 million euros in the first ten months of the year, which is down 8.8 million euros or 47% year-on-year.
- Net profit for October stood at 3.1 million euros, contributing to a cumulative profit of 33.3 million euros over the first ten months, a rise of 3.1 million euros or 10% compared to last year.
- Return on equity for October was recorded at 12.5%.
Insights and Adjustments
Comparative data from October 2024 showed that both net interest income and net allowance for expected credit losses have been adjusted downwards by 2.5 million euros. This adjustment rectified an error in the calculation of interest income where it was improperly based on gross instead of net figures for impaired financial assets. Notably, this adjustment has no impact on the net profit reported for October 2024.
Bigbank AS (Tallinn:BIGB080032A) has more than 30 years of operational history and stands as a commercial bank under Estonian ownership. At the end of October 2025, the bank reported total assets amounting to 3.2 billion euros and equity of 295 million euros. Operating across nine nations, Bigbank proudly serves over 178,000 active customers, employing a workforce of more than 600 individuals. Moody's has awarded Bigbank a long-term bank deposit rating of Ba1, complemented by a baseline credit assessment and an adjusted BCA of Ba2.
For further inquiries, please contact:
Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
For more information, please visit www.bigbank.eu.
Frequently Asked Questions
1. What were Bigbank's net profits for October 2025?
The net profit for October 2025 was reported at 3.1 million euros.
2. How much did the loan portfolio grow in October?
The loan portfolio grew by 34 million euros, totaling 2.6 billion euros.
3. How has Bigbank's deposit portfolio changed?
The deposit portfolio increased by 44 million euros during October.
4. What is Bigbank's return on equity for October?
Return on equity for October 2025 stood at 12.5%.
5. How many employees does Bigbank have?
As of the end of October 2025, Bigbank employed 624 individuals.
