Bigbank’s Loan Portfolio Hits Record 2.3 Billion Euros in Q1 2025
In the first quarter of 2025, Bigbank reported a net profit of 9.8 million euros. The bank’s gross loan portfolio grew to a record 2.3 billion euros, while the growth in deposits was driven by a 12% increase in the savings deposit portfolio, reaching 1.14 billion euros.
According to Martin Länts, Chairman of the Management Board of Bigbank, the bank maintained strong growth across all key areas in the first quarter of 2025. “Bigbank’s loan portfolio reached a record 2.3 billion euros, with continued growth across the business, home, and consumer loan segments. Particularly encouraging is the significant increase in the home loan portfolio, which reflects not only a more active real estate market but also growing client trust in Bigbank,” said Länts.
The net profit of 9.8 million euros in the first quarter is 3.4 million euros more than in the same period last year. “The profit growth was supported, among other things, by a significant improvement in the repayment behaviour in the consumer loan portfolio, which also led to a decrease in net expected credit losses,” the bank’s CEO commented.
The growth of Bigbank’s deposit portfolio in the first quarter was driven by savings deposits, and according to Länts, he is pleased to note that more and more people are choosing Bigbank’s savings deposit – a product that combines market-leading interest rates with flexible access to savings. During the quarter, the savings deposit portfolio grew by 123 million euros (+12%), reaching a record 1.14 billion euros for the group.
Bigbank, which entered the daily banking services market, launched its current account service for Estonian clients last December. According to Länts, it has been warmly received: “By the end of the first quarter, more than 3,500 clients had opened a current account, and interest has been driven by the fact that, unlike competitors, Bigbank offers a 2% interest on all current account balances.” Product development in the daily banking area will continue at full speed in the coming quarters, with the goal of introducing new functionalities in Estonia and gradually expanding the service to Latvia and Lithuania.
Looking more closely at the results of key areas, Bigbank’s gross loan portfolio reached a record 2.3 billion euros by the end of the first quarter, increasing by 102 million euros (+5%) over the quarter and by 550 million euros (+32%) year-on-year. Compared to the previous quarter, the business loan portfolio grew by 44 million euros (+6%) to 808 million euros, the home loan portfolio by 51 million euros (+8%) to 664 million euros, and the consumer loan portfolio by 12 million euros (+1%) to 840 million euros.
The group’s total deposit portfolio grew by 159 million euros (+7%) during the quarter and by 400 million euros (+19%) year-on-year to 2.55 billion euros. The savings deposit portfolio grew by 124 million euros during the quarter to 1.14 billion euros (+12%), and the term deposit portfolio by 33 million euros to 1.4 billion euros (+2%).
Compared to the first quarter of 2024, Bigbank’s interest income increased by 3.3 million euros to 46.2 million euros (+8%). Interest expenses also grew by 3.3 million euros to 20.6 million euros (+19%) due to the increased deposit portfolio and volume of issued bonds. Bigbank’s net interest income remained the same as in the first quarter of the previous year at 25.6 million euros.
A positive development in the first quarter was the improvement in the payment performance of the Baltic consumer loan portfolios. As a result, the Group’s net allowance for expected credit losses decreased by 1.1 million euros year on year to 4.6 million euros. In addition, while provisions of 2.4 million euros had to be recognised in the first quarter of 2024, no such costs were incurred in the first quarter of 2025. The credit quality of home loans continued to be very good, and the business loan portfolio was fairly stable.
The group’s investment property portfolio increased to 72.6 million euros by the end of the first quarter (+9% compared to the end of 2024). The Group did not recognise any gains or losses from changes in the fair value of investment property during the period.
To expand its capital base, Bigbank issued AT1 bonds in the amount of 3 million euros in the first quarter, thereby increasing its additional Tier 1 capital by the same amount. A total of 300 bonds with a nominal value of 10,000 euros were issued to 38 investors. The initial volume of the issuance (3 million euros) was fully subscribed. In addition, in the first quarter, Bigbank increased the volume of the AT1 bonds issued in November 2024 by 1 million euros. Both transactions were aimed at meeting regulatory capital requirements and supporting the bank’s continued strategic growth, focusing on expanding the loan portfolio in the home and business loan segments.
Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 March 2025, the bank's total assets amounted to 2.9 billion euros, with equity of 271 million euros. Operating in nine countries, the bank serves more than 169,000 active customers and employs over 550 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.
Additional information:
Martin Länts, CEO
Email: [email protected]