Bigbank's Unaudited Financial Results for Q3 2025

Bigbank’s total gross loan portfolio was at a record high of 2.58 billion euros, up 142 million euros (+6%) quarter on quarter and 521 million euros (+25%) year on year. As usual, the main growth drivers were the strategic product lines of business loans and home loans. Growth in the consumer loan portfolio was more modest. During the quarter, the business loan portfolio increased by 74 million euros (+9%) to 937 million euros, while the home loan portfolio grew by 55 million euros (+8%) to...

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Tartu, 23/10/2025 (informazione.news - comunicati stampa - economia)

The Group’s deposit portfolio also increased, mainly through the savings deposit portfolio, which grew by 85 million euros to 1.4 billion euros (+7%) in the third quarter. The term deposit portfolio decreased by 11 million euros to 1.3 billion euros during the quarter. In August, Bigbank started offering current accounts to retail customers in Lithuania. Like Estonian customers, they can now use Bigbank for everyday payments on the best market terms: available funds earn interest at the rate of 2% per year and there are no transaction fees. Customers’ current account balances grew by 6 million euros over the quarter, reaching 9 million euros. The Group’s total deposit portfolio grew by 80 million euros (+3%) quarter on quarter and by 462 million euros (+20%) year on year, rising to 2.7 billion euros.

Bigbank’s net profit for the first nine months of 2025 amounted to 30.2 million euros. Net profit for the same period in 2024 was 27.6 million euros. In the third quarter, Bigbank earned a net profit of 11.5 million euros, which is 0.3 million euros less than in the third quarter of 2024 (-2%).

Interest income for the third quarter amounted to 46.5 million euros, an increase of 0.5 million euros (+1%) year on year. Interest expense remained at the same level as in the third quarter of last year, because the decline in deposit rates offset the growth in the deposit portfolio. As a result, Bigbank’s net interest income grew by 0.6 million euros (+2%) year on year, reaching 27.4 million euros.

The quality of the loan portfolio remained stable in the third quarter. Expenses on the net allowance for expected credit losses and provisions decreased by 0.8 million euros year on year, reaching 2.5 million euros. The credit quality of consumer loans continues to improve, while that of home loans is very good and that of business loans is stable. In absolute terms, the volume of stage 3 (non-performing) loans remained stable quarter on quarter, but their share of the total loan portfolio fell to 4.4% (-0.3 pp from the end of the previous quarter). The relatively high proportion of stage 3 loans is mainly due to a small number of larger loans that are well secured and, therefore, do not increase expected credit loss expenses.

Bigbank’s strong team, which is the driving force behind growing business volumes, has expanded significantly year on year. Compared to the end of the second quarter, however, headcount has remained stable. Bigbank had 613 employees at the end of the third quarter: 378 in Estonia, 104 in Lithuania, 90 in Latvia, 22 in Finland, 15 in Bulgaria and 4 in Sweden. Salary expenses for the third quarter totalled 8.7 million euros, up 1.9 million euros year on year (+29%).

At the end of the third quarter, the value of the Group’s investment property portfolio stood at 82.3 million euros, an increase of 10 million euros on the previous quarter. Growth was driven by additional investments of 6.6 million euros in agricultural land, an increase of 2.0 million euros in the value of the agricultural land in Estonia and the reclassification of 1.4 million euros of office space as investment property. The level of transaction prices in the market rose during the third quarter, prompting a remeasurement of agricultural land. The increase in portfolio value resulting from the revaluation of agricultural land was roughly equivalent to the decrease caused by the write-down of agricultural land in the second quarter.

One bond issue was carried out in the third quarter. In September, Bigbank issued Additional Tier 1 (AT1) bonds totalling 2.54 million euros, thereby increasing its Additional Tier 1 capital by the same amount.

On 26 August 2025, an intragroup merger took effect between Balti Võlgade Sissenõudmise Keskus OÜ (a subsidiary of Bigbank AS and the acquiree) and OÜ Rüütli Property (a subsidiary of Bigbank AS’s subsidiary OÜ Rüütli Majad and the acquirer). As a result of the merger, Balti Võlgade Sissenõudmise Keskus OÜ was deleted from the commercial register as of 26 August 2025. As Balti Võlgade Sissenõudmise Keskus OÜ was inactive, the merger did not bring about any changes in the Group’s operations.

Income statement, in thousands of euros	Q3 2025	Q3 2024	9M 2025	9M 2024
Net interest income	27,351	26,861	78,687	76,882
Net fee and commission income	2,686	2,316	7,759	6,725
Net income (loss) on financial assets	-851	1,023	1,794	4,101
Net other operating income	-704	-974	-2,719	-2,800
Total net operating income	28,482	29,226	85,521	84,908
Salaries and associated charges	-8,763	-6,813	-24,498	-19,576
Administrative expenses	-3,255	-2,827	-8,881	-8,781
Depreciation, amortisation and impairment	-2,239	-2,145	-6,552	-6,297
Other gains (losses)	1,999	1,223	217	-106
Total expenses	-12,258	-10,562	-39,714	-34,760
Profit before loss allowances	16,224	18,664	45,807	50,148
Net expected credit loss allowances	-2,426	-4,554	-8,350	-17,085
Profit before income tax	13,798	14,110	37,457	33,063
Income tax expense	-2,328	-2,371	-7,245	-5,503
Profit for the period from continuing operations	11,470	11,739	30,212	27,560
Profit from discontinued operations	0	0	0	29
Profit for the period	11,470	11,739	30,212	27,589

Statement of financial position, in thousands of euros	30 Sep 2025	30 Jun 2025	31 Dec 2024	30 Sep 2024
Cash and cash equivalents	419,470	468,770	448,661	475,284
Debt securities at FVOCI	34,796	42,508	22,334	14,992
Loans to customers	2,580,940	2,438,608	2,196,482	2,059,625
Other assets	116,779	109,143	110,939	87,126
Total assets	3,151,985	3,059,029	2,778,416	2,637,027
Customer deposits and loans received	2,735,153	2,656,328	2,401,689	2,274,269
Subordinated notes	106,976	104,147	91,668	83,437
Other liabilities	17,511	17,871	15,290	14,585
Total liabilities	2,859,640	2,778,346	2,508,647	2,372,291
Equity	292,345	280,683	269,769	264,736
Total liabilities and equity	3,151,985	3,059,029	2,778,416	2,637,027

Compared to the unaudited financial results published for Q3 2024, the net interest income and the net allowance for expected credit losses for the first nine months of 2024 have been adjusted, both reduced by 2.2 million euros. The adjustment is related to an identified error, where interest income from impaired financial assets had been accrued on the gross exposure of the financial assets, rather than on net basis. This correction does not impact the net profit for the first nine months of 2024.

Commentary by Martin Länts, chairman of the management board of Bigbank AS:

The third-quarter financial results confirmed the strength of Bigbank’s strategy – the loan portfolio grew to a record 2.58 billion euros, with business and home loans contributing the most. Our deposit base continued to grow as we offered attractive terms to customers. While quarterly profit remained at last year’s level, the nine-month consolidated results are clearly positive. In the third quarter, we expanded daily banking services to the Lithuanian market, and by the end of September, Bigbank had over 9,900 customers with a bank account in Estonia and Lithuania combined. In the next quarter, we plan to start offering bank account services to customers in Latvia. Overall, we remain focused on profitable growth and the development of customer-centric solutions.

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 30 September 2025, the bank's total assets amounted to 3.2 billion euros, with equity of 292 million euros. Operating in nine countries, the bank serves more than 177,000 active customers and employs over 600 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
Telephone: +372 5393 0833
Email: [email protected]
www.bigbank.ee

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