Bigbank Reports Outstanding Q2 2025 Financial Performance
Bigbank Achieves Record Growth in Loan Portfolios
Bigbank’s total gross loan portfolio has hit an impressive milestone, reaching a remarkable 2.44 billion euros by the end of the second quarter of 2025. This is a significant increase of 141 million euros, reflecting a 6% rise compared to the previous quarter and a strong annual growth of 28%, which translates into an increase of 537 million euros. The company’s growth trajectory is largely driven by its strategic focus on business loans and home loans, with consumer loans experiencing a more modest growth rate.
Details of Portfolio Growth
Breaking down the numbers, the business loan portfolio grew by 54 million euros, marking a 7% increase to reach 862 million euros. Meanwhile, the home loan portfolio expanded by 53 million euros, reflecting an 8% increase, and now stands at 717 million euros. Notably, the consumer loan portfolio grew by just 19 million euros, or 2%, bringing its total to 860 million euros. This quarter marks a significant achievement for Bigbank as business loans have become the largest credit product line in terms of portfolio size.
Deposits Show Strong Performance
On the deposits front, Bigbank has also made significant strides. The savings deposit portfolio saw robust growth in the second quarter, climbing by 154 million euros to a substantial 1.3 billion euros, marking a 13% increase. However, the term deposit portfolio declined slightly, showing a decrease of 59 million euros, resulting in a total of 1.34 billion euros. This shift appears to be influenced by the stabilizing interest rate environment, which has made flexible savings deposits more attractive compared to term deposits.
Competitive Interest Rates for Customers
At the end of the quarter, the current accounts opened for retail customers totaled an impressive 3.4 million euros. All current account holders benefit from a competitive interest rate of 2%, which is currently considered the best on the market.
Profitability Trends
Turning to profitability, Bigbank reported a net profit of 18.7 million euros for the first half of 2025, representing an increase from 15.8 million euros in the same timeframe of 2024. In the second quarter alone, net profit reached 8.9 million euros, though slightly down by 0.5 million euros year on year, indicating a 5% decrease. Nonetheless, the profit before income tax improved to 11.5 million euros, showcasing a growth of 0.3 million euros or 3% compared to the second quarter of 2024.
Rising Interest Income
This quarter also saw a growth in interest income, which amounted to 45.2 million euros—up 1.8 million euros or 4% compared to last year. In tandem with these developments, interest expenses increased by 0.6 million euros, attributed to the growth of the deposit portfolio and an increase in bond issuance. As a result, Bigbank’s net interest income rose to 25.7 million euros, an increase of 1.2 million euros or 5% year on year.
Quality of Loan Portfolio Improves
The quality of the loan portfolio exhibited an encouraging upward trend this quarter. The net allowance for expected credit losses and provisions fell to 1.4 million euros, a substantial decrease of 4.4 million euros when compared to the previous year. This positive trend is primarily attributed to enhancements in the quality of consumer loan portfolios across the Baltic countries, alongside stable credit quality for home loans.
Growth in Employee Base
During this quarter, Bigbank’s workforce grew significantly, with the total employees reaching 613 as of the end of June 2025. This figure includes 378 employees in Estonia, 102 in Lithuania, 91 in Latvia, 22 in Finland, 15 in Bulgaria, and 5 in Sweden. Salary expenses also increased, totaling 8.2 million euros, which is a rise of 1.8 million euros or 28% from the previous year.
Development of Digital Banking Products
The second quarter of 2025 was particularly notable for advancements in Bigbank’s digital banking initiatives. The bank became a direct member of the SEPA Credit Transfer scheme, enhancing its independence from other financial intermediaries. Additionally, Bigbank introduced a user-friendly mobile app, initially available to its Estonian retail customers, with plans for rollout in Lithuania and Latvia in the upcoming quarters.
Investment Property Performance
As for investments, the value of the Group’s property portfolio stood at 72.3 million euros by the end of the quarter, although there was a decline in the value of agricultural land in Estonia by 1.7 million euros due to market conditions.
Capital Initiatives
Bigbank also executed two bond issues this quarter to support ongoing growth. In May, the bank issued Additional Tier 1 (AT1) bonds worth 2.44 million euros, bolstering its capital. Following this, a successful public unsecured subordinated bond offering raised its Tier 2 capital to 6 million euros due to strong investor interest.
Moody’s Ratings Affirmation
In good news for stakeholders, Moody’s Ratings affirmed all previously assigned ratings to Bigbank AS, reflecting confidence in the bank's financial stability. The outlook on the bank’s long-term deposit rating was modified from stable to negative.
Management Commentary
Martin Länts, chairman of the management board of Bigbank AS, highlighted the effectiveness of the bank's strategy in driving growth. The continued escalation of the loan portfolio and the expansion of high-quality deposits indicate a solid trajectory for Bigbank’s future. The successful completion of bond issues aligns with Bigbank’s objectives of scaling its operations and maintaining strong regulatory capital buffers.
Bigbank AS, with over three decades of experience, prides itself on delivering value to its clients. As of mid-2025, the bank’s total assets stood at 3.1 billion euros, with equity of 281 million euros. With operations across nine countries and a workforce of over 600 personnel, Bigbank continues to serve more than 174,000 active customers.
Frequently Asked Questions
What is the total gross loan portfolio of Bigbank?
The total gross loan portfolio reached 2.44 billion euros by the end of Q2 2025.
How much did Bigbank's net profit increase in H1 2025?
Net profit for the first half of 2025 was reported at 18.7 million euros, up from 15.8 million euros in H1 2024.
What developments occurred in Bigbank’s digital banking services?
Bigbank launched a mobile app and became a direct member of the SEPA Credit Transfer scheme to enhance customer banking experiences.
What factors influenced the growth in Bigbank’s deposit portfolio?
The growth in the savings deposit segment, competitive interest rates, and the appeal of current accounts attracted more customers.
What is Bigbank's current equity and asset position?
As of June 30, 2025, Bigbank's total assets amounted to 3.1 billion euros, with equity reported at 281 million euros.
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