Bigbank Q3 2025: continued growth in loan portfolio, deposits and net profit
Bigbank, which published its third-quarter financial results, reported continued growth in both the loan portfolio and deposit volumes. The bank’s net profit for the first nine months of the year amounted to 30.2 million euros, exceeding the result for the same period last year by 9.5%.
According to Martin Länts, Chairman of the Management Board of Bigbank, the third-quarter financial results confirmed the strength of Bigbank’s strategy – the loan portfolio grew to a record 2.58 billion euros, with business loans and home loans contributing the most. The deposit base continued to grow as the bank offered attractive terms to customers.
“Although the profit for the third quarter alone remained at last year’s level, the nine-month consolidated results are clearly positive. In the third quarter, we expanded daily banking services to the Lithuanian market, and by the end of September, Bigbank had over 9,900 customers with a bank account in Estonia and Lithuania combined. In the next quarter, we plan to start offering bank account services to customers in Latvia. Overall, we remain focused on profitable growth and the development of customer-centric daily banking solutions,” commented Länts on the results and near-term plans.
From a macroeconomic perspective, Länts noted that the long-standing general decline in interest rates ended in the third quarter, with the 6-month Euribor rising from 2.05% to around 2.1%. “This means that the pressure on the bank’s interest income in year-on-year comparison continues to ease, and the growing loan portfolio is becoming an increasingly important factor on the income side. It also means that the decline in deposit interest rates has come to a halt,” he explained.
According to the quarterly report, Bigbank continued to grow against a positive external backdrop – the total gross loan portfolio reached a record 2.58 billion euros by the end of the quarter, increasing by 142 million euros (+6%) quarter on quarter and by 521 million euros (+25%) year on year. As usual, the main growth drivers were the strategic product lines of business loans and home loans, while growth in the consumer loan portfolio was more modest. The business loan portfolio grew by 74 million euros (+9%) to 937 million euros, the home loan portfolio by 55 million euros (+8%) to 772 million euros, and the consumer loan portfolio by 18 million euros (+2%) to 878 million euros.
The quality of the loan portfolio remained stable in the third quarter. Expenses on the net allowance for expected credit losses and provisions decreased by 0.8 million euros year on year, amounting to 2.5 million euros. The credit quality of consumer loans continues to improve, that of home loans is very good, and that of business loans is stable. In absolute terms, the volume of stage 3 (non-performing) loans remained at the level of the end of the second quarter, but their share of the total loan portfolio fell to 4.4% (-0.3 pp from the end of the previous quarter). The relatively high proportion of stage 3 loans is mainly due to a small number of larger loans that are well secured and, therefore, do not increase expected credit loss expenses.
The growth of the deposit portfolio in the third quarter was mainly supported by the savings deposit portfolio, which increased by 85 million euros to 1.4 billion euros (+7%). The term deposit portfolio decreased by 11 million euros, remaining at 1.3 billion euros. In August, Bigbank started offering current accounts to retail customers in Lithuania. Like Estonian customers, they can now use Bigbank for everyday payments on the best market terms: available funds earn interest at the rate of 2% per year and there are no transaction fees. Customers’ current account balances grew by 6 million euros over the quarter, reaching 9 million euros. The Group’s total deposit portfolio grew by 80 million euros (+3%) quarter on quarter and by 462 million euros (+20%) year on year, rising to 2.7 billion euros.
Bigbank’s interest income for the third quarter amounted to 46.5 million euros, an increase of 0.5 million euros (+1%) year on year. Interest expense remained at the same level as in the third quarter of last year, because the decline in deposit rates offset the growth in the deposit portfolio. As a result, Bigbank’s net interest income grew by 0.6 million euros (+2%) year on year, reaching 27.4 million euros.
The value of the Group’s investment property portfolio stood at 82.3 million euros at the end of the third quarter, an increase of 10 million euros on the previous quarter. Growth was driven by additional investments of 6.6 million euros in agricultural land, an increase of 2.0 million euros in the value of agricultural land in Estonia and the reclassification of 1.4 million euros of office space as investment property. The increase in portfolio value resulting from the revaluation of agricultural land was roughly equivalent to the decrease caused by the write-down of agricultural land in the second quarter.
Overall, Bigbank’s net profit for the first nine months of 2025 amounted to 30.2 million euros, compared to 27.6 million euros for the same period in 2024. In the third quarter, Bigbank earned a net profit of 11.5 million euros, which is 0.3 million euros less than in the third quarter of 2024 (-2%).
Among significant events, one bond issue was carried out in the third quarter – in September, Bigbank issued Additional Tier 1 (AT1) bonds totalling 2.54 million euros, thereby increasing its Additional Tier 1 capital by the same amount.