Bigbank’s results for Q1 2026: Core indicators show strong growth, but quarterly profit is nevertheless 2.3 million lower due to a property write-down
As Bigbank continues to expand its role as a universal bank in the Baltic region, the Group’s deposit portfolio grew to 3.0 billion euros and the loan portfolio to 2.8 billion euros by the end of the first quarter. Net profit for the quarter amounted to 7.5 million euros, which was 2.3 million euros lower year on year due to a write-down of investment property.
According to Martin Länts, Chairman of the Management Board of Bigbank, the first quarter of 2026 marked a successful start to the year for the Group. Both loan and deposit portfolios grew in line with expectations, while the quality of the loan portfolio remained stable. Compared to the same period last year, the Bank’s net interest income increased. “At the same time, the quarterly result was significantly affected by a 2.6 million euro write-down of agricultural land included in the Group’s investment property portfolio. Excluding this impact, our profit for the first quarter would have exceeded the result of the same period last year,” said Länts.
The Bank continues to invest in the development of everyday banking services and the expansion of its product offering. “In the Baltics, we continue to offer retail customers the best current account service in the market, including 2% interest on account balance, free payments and no associated fees. As a result, the Bigbank current account has gained strong traction – during the first quarter alone, the number of current account customers grew by 46%, reaching nearly 28,000 by quarter end,” Länts noted. The launch of current account services for Estonian corporate customers in December 2025 further supported Bigbank’s strategic expansion into everyday banking. Demand from business customers developed steadily during the first quarter, with the number of corporate current account users continuing to grow, supported by market-leading terms. Looking ahead to the second quarter, Bigbank will focus on continued growth of the loan portfolio, the introduction of debit cards for retail customers in the Baltics, and the expansion of current account services for business customers in Latvia and Lithuania.
Based on the financial results published today, Bigbank’s loan portfolio reached a record 2.8 billion euros by the end of the first quarter, increasing by 126 million euros (+5%) over the quarter and by 536 million euros (+23%) year on year. Compared to the end of the previous quarter, the business loan portfolio grew by 109 million euros (+11%) to 1.1 billion euros, the home loan portfolio by 25 million euros (+3%) to 844 million euros and the consumer loan portfolio by 2 million euros (+0.3%) to 856 million euros. The quality of the loan portfolio remained stable in the first quarter, with no signs of weakening payment behaviour. Net expected credit loss allowances decreased by 1.6 million euros year on year, amounting to 3.0 million euros. The credit quality of consumer loans continues to improve, that of home loans remains very high and that of business loans stable.
The Group’s total deposit portfolio grew by 127 million euros (+4%) quarter on quarter and by 454 million euros (+18%) year on year, reaching a record 3.0 billion euros as at 31 March. The term deposit portfolio increased by 61 million euros (+4%) to 1.48 billion euros, while the savings deposit portfolio grew by 46 million euros (+3%), also reaching 1.48 billion euros. The volume of current accounts more than doubled over the quarter, reaching 40 million euros.
Interest income for the first quarter totalled 49.4 million euros, increasing by 3.2 million euros (+7%) year on year. Interest expense amounted to 20.2 million euros, decreasing by 0.4 million euros (–2%) compared to the same period last year. As a result, Bigbank’s net interest income rose by 3.6 million euros (+14%) year on year to 29.2 million euros.
The value of the Group’s investment property portfolio decreased by 2.8 million euros over the quarter to 81.9 million euros. This was mainly attributable to a 2.6 million euro (5% of the portfolio value) write-down of agricultural land in Estonia, driven by declining transaction prices in the market. Cash inflows from leasing out agricultural land remained stable.
From a funding perspective, Bigbank issued Additional Tier 1 (AT1) bonds in the amount of 3 million euros during the first quarter, increasing its additional Tier 1 capital by the same amount. A total of 30 bonds with a nominal value of 100,000 euros each were issued to two investors. On 25 February 2026, Bigbank signed its first synthetic securitisation transaction with the EIB Group, comprising the European Investment Bank (EIB) and the European Investment Fund (EIF). The transaction aims to support new lending to small and medium-sized enterprises and mid-caps in Estonia, Latvia and Lithuania, with a particular focus on micro-enterprises, early-stage companies and environmental sustainability. The transaction will reduce Bigbank’s regulatory capital requirements, enabling the Bank to redeploy the released capital to originate approximately 254 million euros of additional financing to SMEs and mid-caps over the next three years. Strong business growth continues to be supported by a growing and highly capable team. During the first quarter, the number of employees increased by 33 (+5%) to 672, while year on year headcount grew by 98 (+17%). Key drivers behind the increase were the launch of everyday banking products and the continued commitment to providing high-quality customer service in the context of expanding loan and deposit portfolios.