Bigbank’s balance sheet surpasses 3 billion euros, half-year profit up 18%

Bigbank, which published its half-year financial results, reported a net profit of 18.7 million euros for the first six months of the year. The bank’s balance sheet exceeded 3 billion euros for the first time, with the gross loan portfolio reaching a record 2.44 billion euros and the deposit portfolio 2.65 billion euros.

According to Martin Länts, Chairman of the Management Board of Bigbank, the bank continued strong growth across all core areas in the second quarter of 2025. “The loan portfolio grew to over 2.4 billion euros, which represents nearly a one-third increase year-on-year. The main drivers of growth remained the strategic segments of business loans and home loans,” Länts noted. Bigbank’s net profit for the first half of 2025 was 18.7 million euros, an increase of 18.4% compared to the same period in 2024 (15.8 million euros).

Alongside the growth in the loan portfolio, its quality also improved. The net cost of expected credit losses and provisions decreased more than fourfold year-on-year, totalling 1.4 million euros in the second quarter. According to Länts, this positive change is primarily due to improved credit quality in consumer loan portfolios across the Baltic countries, which also supports the bank’s net profit growth.

Bigbank’s deposit portfolio continued to grow both year-on-year and quarter-on-quarter. A key driver of this growth has been savings deposits, which reached a similar volume to term deposits, totalling nearly 1.3 billion euros by the end of the quarter. “People are increasingly seeking ways to earn interest on their money and have found a good opportunity in Bigbank’s savings deposits, and increasingly also in our current accounts,” Länts said.

“As the first Estonian bank, we offer all current account holders the opportunity to earn 2% interest on their account balance, while keeping the money freely accessible for daily use. Although we’ve only recently started offering current accounts in Estonia, we already see that more than 25% of our retail customers have opened an account with us,” he added. Länts also noted that Bigbank is expanding the functionality related to current accounts. A major milestone was the launch of the mobile app at the end of June, and in the coming months, the bank plans to start offering current account services in Latvia and Lithuania as well.

In summary, Bigbank’s gross loan portfolio reached a record 2.44 billion euros by the end of the quarter, increasing by 141 million euros (+6%) quarter-on-quarter and by 537 million euros (+28%) year-on-year. Growth was driven by strategic business and home loan product lines. The business loan portfolio grew by 54 million euros (+7%) to 862 million euros, the home loan portfolio by 53 million euros (+8%) to 717 million euros, and the consumer loan portfolio by 19 million euros (+2%) to 860 million euros. For the first time in Bigbank’s history, the business loan portfolio became the largest loan product line.

On the deposit side, the savings deposit portfolio saw significant growth in the second quarter, increasing by 154 million euros to 1.3 billion euros (+13%). The term deposit portfolio decreased by 59 million euros to 1.34 billion euros. A stabilising interest rate environment has led to a situation where the interest rates on more flexible savings deposits have become competitive with those of term deposits, prompting many deposit customers to move their funds to savings deposits upon maturity. The balance of current accounts opened for Estonian retail customers reached 3.4 million euros by the end of the second quarter. All current account holders earn a market-leading 2% interest. The group’s total deposit portfolio grew by 96 million euros (+4%) quarter-on-quarter and by 393 million euros (+17%) year-on-year to 2.65 billion euros.

Quarter-on-quarter, Bigbank’s interest income increased, as the growth of the loan portfolio had a greater impact than the decline in interest rates over the year. Interest income for the second quarter amounted to 45.3 million euros, up 1.8 million euros (+4%) compared to the same period last year. Interest expenses increased by 0.6 million euros to 19.5 million euros (+3%) due to the larger deposit portfolio and increased volume of issued bonds. Net interest income was 25.7 million euros, up 1.2 million euros (+5%) compared to the second quarter of the previous year.

The quality of Bigbank’s loan portfolio continued to improve in the second quarter. The net cost of expected credit losses and provisions totalled 1.4 million euros, down 4.4 million euros compared to the same period in 2024. This positive change is mainly due to improved credit quality in consumer loan portfolios across all three Baltic countries. The credit quality of home loans remained very high, and that of business loans stable.

Among other key events, Bigbank conducted two bond issues in May and June. Both transactions support the bank’s continued rapid growth, ensuring compliance with regulatory capital requirements and supporting the growth of home and business loan portfolios.