Bigbank’s quarterly results: total assets reached 2.5 billion euros and profit was 6.2 million euros
The first quarter results of Bigbank that operates on nine markets were marked by both growth of the loan portfolio and the deposit volume as well as growth of the balance sheet volume to a record 2.5 billion euros. The Group’s profit for the quarter was 6.4 million euros.
Martin Länts, chairman of the management board of Bigbank, said that Bigbank’s profit for the first quarter was by 3.2 million euros lower than compared to the previous year. “The largest impact was due to increased credit loss allowances on loans, personnel expenses, the cost of the deposit guarantee fund, as well as increased amortisation,” he said, commenting the result. According to Länts, Bigbank continues to implement the Group’s strategy as planned, which includes continued growth and expanding the product portfolio towards everyday banking.
The Group's net interest income for the first quarter of 2024 amounted to 26.4 million euros (Q1 2023: 22.5 million euros), representing an increase of 3.9 million euros or 17% compared to the same period last year.
The Group's interest expenses increased by 10.5 million euros to 17.3 million euros in the first quarter compared to the same period last year. The main reasons for this were the 44% annual growth in the deposit portfolio and the continuously high interest rate environment, which allowed Bigbank's deposit customers to earn substantial interest. The third factor is the volume of bonds issued that grew in 2023, which has allowed investors to earn a higher return on Bigbank bonds.
Bigbank's loan portfolio continued to grow strongly in all categories. “We are especially delighted about the housing loan portfolio, which grew by 43 million euros in the first quarter of the year, exceeding the growth of the same period last year by 23 million euros. There are signs of recovery in the real estate markets, and it is rewarding to see that more and more customers are choosing Bigbank as the financier of their home purchase,” Länts noted.
The sales volume of Bigbank's business loans and leases also experienced strong growth in the first quarter, reaching 114.4 million euros, which is 93% higher than in the same period last year. Länts pointed out that particularly rapid – three times higher compared to last year – was the growth in sales of loans and leases to businesses in Lithuania.
Bigbank's gross loan portfolio grew to a record 1.75 billion euros by the end of the first quarter, increasing by 86 million euros (+5%) in the quarter and by 325 million euros (+23%) in the year. The portfolio of business loans grew by 22 million euros (+4%) to 600 million euros during the quarter, the portfolio of housing loans grew by 43 million euros (+12%) to 394 million euros in the quarter and the portfolio of consumer loans increased by 25 million euros (+3%) to 762 million euros.
According to the Bigbank CEO, the bank's funding base remains strong - in the first quarter, the Group's deposit portfolio grew faster than the loan portfolio, increasing by 215 million euros with the quarter, which exceeds the growth of the first quarter of last year by 85 million euros. According to him, an important milestone at the beginning of the quarter was the launch of term deposits in Lithuania, which was the last of Bigbank's home markets where this product was not yet available. As of January 2024, Bigbank offers term deposits in all of its operating markets.
The Group's deposit portfolio increased by 215 million euros (+11%) in the quarter and by 655 million euros (+44%) in the year to 2.15 billion euros. The term deposit portfolio grew by 100 million euros (+11%) in the quarter and exceeded 1 billion euros (1.02 billion euros) for the first time. The savings deposit portfolio grew by 116 million euros (+11%) to 1.14 billion euros in the quarter.