Bigbank AS Results for August 2025

August was a strong month for Bigbank - loan portfolio growth continued at an above-average pace and profitability remained solid.

The loan portfolio grew by 50 million euros in August. The business loan portfolio increased by 28 million euros, the home loan portfolio by 15 million euros, and the consumer loan portfolio by 7 million euros. By the end of August, the total loan portfolio reached 2.5 billion euros.

The deposit portfolio grew by 19 million euros during the same period. Growth was driven by the savings deposit portfolio, which increased by 25 million euros, while the volume of term deposits decreased by 8 million euros. The trend continues, with owners of maturing term deposits reallocating funds into more flexible savings deposits.

In August, Bigbank launched current accounts for retail customers in Lithuania. From now on, Lithuanian customers, just like Estonian customers, can use Bigbank for everyday banking under market-leading conditions: clients earn 2% annual interest on idle funds, and all transactions are completely free of charge. The total balance of current accounts grew by 2 million euros in August, reaching 6.5 million euros by the end of the month.

The 6-month Euribor remained at 2.1% in August, similar to the level in July. The stabilising interest rate environment continues to reduce pressure on net interest income. As time goes on, loan portfolio growth increasingly drives year-on-year interest income comparisons, while the impact of falling interest rates diminishes. Deposit interest rates are also stabilising, although a slight decline continues. Net interest income increased by 1.7 million euros over the first eight months compared to the previous year.

The credit quality of the loan portfolio continued to improve. Compared to the first eight months of 2024, net allowances for expected credit losses and provision expenses decreased by a total of 9.3 million euros, or 57%. The main reason is improved payment behaviour in consumer loans across all three Baltic countries. The share of non-performing loans (Stage 3) decreased by 0.2 percentage points compared to the end of July, reaching 4.5%.

Net profit for August was 3.5 million euros. In addition to the growth in net interest income and the reduction in credit losses, net fee income increased by 0.9 million euros over the eight-month period, while administrative expenses decreased by 0.2 million euros.

At the end of August, Bigbank employed 609 people. Team expansion and salary growth resulted in a 4.2 million euro increase in salary expenses over the first eight months compared to the previous year. As a negative development, income tax expenses rose by 1.9 million euros due to higher tax rates introduced in Estonia and Lithuania at the beginning of 2025.

Bigbank's key financial indicators for August 2025:

• Customer deposits and loans received increased by 507 million euros year-on-year, reaching 2.7 billion euros (+23%).
• Loans to customers grew by 543 million euros year-on-year, reaching 2.5 billion euros (+27%).
• Net interest income totalled 9.1 million euros; the eight-month total reached 69.7 million euros. Compared to the same period last year, net interest income increased by 1.7 million euros (+2%).
• Net allowance for expected credit losses and provision expenses totalled 7.1 million euros in the first eight months of the year, down 9.3 million euros or 57% year-on-year.
• Net profit in August was 3.5 million euros. Cumulative profit for the first eight months amounted to 25.8 million euros, an increase of 2.4 million euros or 10% compared to the same period in 2024.
• Return on equity in August was 14.8%.

Income statement, in thousands of euros	Aug 2025	YTD25	YTD24	Difference YoY
Total net operating income, incl.	9,963	76,171	75,267	904	+1%
Net interest income	9,120	69,721	68,022	1,699	+2%
Net fee and commission income	899	6,855	5,929	926	+16%
Total expenses, incl.	-4,641	-36,645	-30,726	-5,919	+19%
Salaries and associated charges	-2,802	-21,527	-17,287	-4,240	+25%
Administrative expenses	-1,106	-7,685	-7,862	177	-2%
Profit before loss allowances	5,322	39,526	44,541	-5,016	-11%
Net allowance for expected credit losses and provision expenses	-992	-7,120	-16,436	9,316	-57%
Income tax expense	-804	-6,588	-4,734	-1,853	+39%
Profit for the period from continuing operations	3,527	25,818	23,371	2,447	+10%
Profit or loss before tax from discounted operations	0	0	29	-29
Profit for the period	3,527	25,818	23,400	2,418	+10%
Business volumes, in thousands of euros	Aug 2025	YTD25	YTD24	Difference YoY
Customer deposits and loans received	2,746,098	2,746,098	2,238,741	507,357	+23%
Loans to customers	2,548,848	2,548,848	2,005,507	543,341	+27%
Key figures	Aug 2025	YTD25	YTD24	Difference YoY
ROE	14.8%	13.9%	15.9%	-2.0pp
Cost / income ratio (C/I)	46.6%	48.1%	40.8%	+7.3pp
Net promoter score (NPS)	61	58	56	+2

Compared to the financial results published for August 2024, the net interest income and net allowance for expected credit losses for the same period last year have been adjusted, reducing both by 1.9 million euros. The adjustment is related to an identified error, where interest income from impaired financial assets had been calculated based on the gross position of the assets rather than on a net basis. This correction does not impact the net profit for August 2024.

Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 August 2025, the bank's total assets amounted to 3.2 billion euros, with equity of 288 million euros. Operating in nine countries, the bank serves over 176,000 active customers and employs more than 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: [phone]
Email: [e-mail]
www.bigbank.ee