Bigbank Reports Solid Growth in Q1 2025 Financials
Overview of Bigbank's Financial Performance in Q1 2025
Bigbank has demonstrated remarkable growth in its financial metrics as it concluded the first quarter of 2025. The total gross loan portfolio surged to an impressive 2.3 billion euros, reflecting an increase of 102 million euros, or 5% from the previous quarter, and an astounding 550 million euros, equating to a 32% rise year on year. This growth is evident across various sectors, with the business loan portfolio expanding by 44 million euros to reach 808 million euros and the home loan portfolio increasing by 51 million euros to 664 million euros. The consumer loan portfolio saw a modest rise, adding 12 million euros to total 840 million euros.
Deposit Portfolio Growth
In addition to loan growth, Bigbank’s deposit portfolio also flourished, primarily driven by increased savings deposits. Competitive savings deposit interest rates were pivotal in attracting customers, particularly with a peak rate of 3.25% maintained throughout the quarter in select countries. Despite lower rates in markets like the Netherlands and Germany, customers remained engaged with Bigbank's offerings, showcasing strong interest amidst competitive pressures.
Savings Deposit Highlights
Overall, the Group's savings deposit portfolio grew by 124 million euros (12%), reaching a total of 1.14 billion euros, while the term deposit portfolio saw a 2% increase, adding 33 million euros for a total of 1.4 billion euros. Furthermore, the introduction of current accounts for existing customers resulted in 3 million euros by quarter's end, adding value to the Group's deposit offerings.
Profits and Earnings
In the first quarter of 2025, Bigbank achieved a net profit of 9.8 million euros, marking an increase of 3.4 million euros compared to the same period last year. This stellar performance is attributed to improved payment behaviors within the consumer loan segment, which minimized expected credit loss allowances by 1.1 million euros, alongside decreased provisions by 2.4 million euros.
Analysis of Interest Income
Interest income improved significantly, rising by 3.3 million euros (8%) to reach 46.2 million euros, while interest expenses also grew by 3.3 million euros (19%) to 20.6 million euros due to deposit portfolio expansion and increased bond issuance volume. Consequently, net interest income held steady at 25.6 million euros compared to the previous year.
Credit Performance
Positive developments continued in the credit performance, especially within the Baltic consumer loan portfolios. The Group's net allowance for expected credit losses improved, decreasing to 4.6 million euros from the previous year's figure. Notably, no provisions were required in Q1 2025, showcasing the high quality of the home loan and a stable business loan portfolio.
Investment Property and Capital Issuance
The investment property portfolio saw an increase, totaling 72.6 million euros, reflecting a 9% rise from the end of the previous year. Additionally, Bigbank successfully issued Additional Tier 1 (AT1) bonds worth 3 million euros, enhancing its common equity Tier 1 capital. This issuance, which was fully subscribed, reinforces Bigbank's commitment to continuing its growth strategy and meeting regulatory capital requirements.
Company Overview
Bigbank AS has over 30 years of experience as a commercial bank, operating across nine countries and boasting a customer base of over 169,000 active clients. Its robust financial performance is backed by a solid credit rating from Moody's, which has rated Bigbank with a long-term bank deposit rating of Ba1. The bank remains dedicated to cultivating long-lasting relationships with its investors and partners, focusing on delivering sustainable, value-creating banking solutions.
For further information, please reach out:
Contact: Argo Kiltsmann
Member of the Management Board
Telephone: +372 5393 0833
Email: argo.kiltsmann@bigbank.ee
Frequently Asked Questions
What were the key financial figures for Bigbank in Q1 2025?
Bigbank reported a net profit of 9.8 million euros for the first quarter, with a total loan portfolio reaching 2.3 billion euros.
How did the deposit portfolio perform?
The deposit portfolio increased by 159 million euros, reaching a total of 2.55 billion euros, driven primarily by savings deposits.
What factors contributed to the increase in net profit?
The increase was largely driven by improved payment behavior in the consumer loan portfolio and decreased allowances for expected credit losses.
What is the significance of the AT1 bond issue?
The AT1 bond issuance of 3 million euros enhances Bigbank’s capital base, supporting its growth strategy and regulatory capital requirements.
How many customers does Bigbank currently serve?
Bigbank serves more than 169,000 active customers across its operations in various countries.
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