Blog | Great results: Bigbank loan portfolio grew by a third in Q1

Great results: Bigbank loan portfolio grew by a third in Q1

The loan portfolio of Bigbank AS, established on Estonian capital, grew 6.7% during the first three months of 2021, reaching a record 630.9 million euros by the end of the quarter. In comparison with the same period of last year, the volume of new loans granted by the bank to business and private clients grew by 32%.

According to Bigbank Chairman of the Management Board Martin Länts, the bank has been active in extending the scope of its services to business clients, resulting in a 28.4% increase of new sales to corporate clients compared to the year before. „The growth was particularly strong in the Baltic States, with the total corporate loan portfolio increasing by 60% during the year. In Q1 long-term investment loans and working capital loans for enterprises made up almost a quarter of our total sales,“ Länts said. „The highest demand was from companies operating in the real estate, agricultural, forestry and industrial sectors,“ he added.

The Bigbank Chairman of the Management Board explained that total year on year lending to private clients in the first quarter grew by 32.5% and the demand was high in all countries where Bigbank operates. „Estonia, Lithuania and Finland were leading the growth,“ Länts said.

Generally, companies and individuals have started to turn more to smaller banks, like Bigbank, for getting offers and this is a win-win situation – we have new business opportunities, and the clients are getting the most favourable and flexible solutions.
Martin Länts, CEO

„The high demand for home loans, launched by Bigbank last autumn, was behind the significant growth in Estonia. In addition to the regular home loans with an annuity schedule, we are offering home loans with a special schedule, which means that at the beginning of the repayment period, say, during the first ten years, only interest must be paid, and payment of the principal can be postponed for a later stage. This leaves the client with a lot of more free cash during the first half of the repayment schedule and further payments can be expected to be more affordable also due to inflation,“ Länts explained.

„Generally, companies and individuals have started to turn more to smaller banks, like Bigbank, for getting offers and this is a win-win situation – we have new business opportunities, and the clients are getting the most favourable and flexible solutions,“ Länts enthused.

Bigbank is also providing leasing services. In comparison with Q4 2020 the first quarter of this year saw a 134.9% increase in this sector. „The growth was achieved on account of entry into new sectors and equipment lease, which constituted 57% of the sales. Our leasing results were also positively influenced by car lease for individuals in Lithuania, which we launched at the beginning of this year,“ added Länts.

Compared to the end of 2020 the total volume of Bigbank assets grew by 8.7%, reaching 823.8 million euros. The net profit for the quarter was 5.8 million euros, which is 16.8% more than that of Q1 2020.