Bigbank's 2024 results: profit of 32.3 million euros, loan portfolio annual growth +32%
Bigbank's recently published unaudited financial results for the fourth quarter and full year of 2024 indicate that the past year was a period of growth and business expansion. The bank's loan portfolio grew to 2.2 billion euros (+32%), while its deposit portfolio reached 2.4 billion euros (+24%). At the same time, unaudited annual profit decreased by 20%, amounting to 32.3 million euros.
According to Bigbank’s CEO Martin Länts, the bank continued its strategic growth in 2024, focusing on expanding its loan and deposit portfolio and developing everyday banking services. “One of the most significant achievements of the year was integration with the SEPA instant payment system and the introduction of current accounts in Estonia, enabling customers to send and receive payments within seconds, 24/7. This is an important step towards everyday banking, which we plan to expand to other operating countries soon,” Länts noted.
Despite a declining Euribor environment and persistently high deposit interest rates, Bigbank managed to maintain strong profitability throughout the year, according to CEO Martin Länts. “This demonstrates our ability to offer competitive products and services in both the lending and deposit markets, invest in expanding our product portfolio into everyday banking, and sustain long-term growth,” Länts commented on Bigbank’s annual results. The bank’s net profit for the fourth quarter was 4.6 million euros, while its unaudited full-year profit for 2024 amounted to 32.3 million euros. Compared to the adjusted results for 2023, fourth-quarter net profit decreased by 6.6 million euros, and the total net profit for the 12-month period declined by 8.3 million euros.
Bigbank’s investment property portfolio increased to 66.4 million euros by the end of the fourth quarter (+35% from end-2023). Changes in the fair value of investment properties resulted in a loss of 1.6 million euros for both the fourth quarter and the full year. For comparison, the 12-month result for 2023 was a profit of 3.4 million euros, which included a profit of 4.4 million euros in the fourth quarter. This is also the main reason why the Bigbank's net profit for the fourth quarter of 2024 was 6.6 million euros lower than in the same period of 2023.
The main drivers of Bigbank’s continued business volume growth were home and business loans – the group’s home loan portfolio grew by 75% over the year, while the business loan portfolio increased by 32%. According to CEO Martin Länts, customers’ trust in Bigbank’s personalised approach, fast processes, and competitive terms confirms that the bank is moving in the right direction: “At the same time, we kept deposit interest rates at a customer-friendly level and expanded our deposit product offerings. For example, we introduced a term deposit for private customers in Lithuania and launched a savings deposit in Latvia and Bulgaria. We also opened a savings deposit option for business customers in Latvia and Lithuania.”
Reflecting on 2024, Martin Länts also highlighted a landmark decision made by the Bank of Estonia in November, which designated Bigbank as a systemically important credit institution. "This decision underscores our growing role in Estonia’s financial sector and confirms that we have chosen the right strategy. Additionally, we successfully carried out bond issuances during the year, raising 20.4 million euros in additional capital to support further expansion and strengthen our capital structure," he added.
In its key business areas, Bigbank’s gross loan portfolio reached a record 2.2 billion euros by the end of the year, increasing by 137 million euros (+7%) in the fourth quarter and by 535 million euros (+32%) over the year. The business loan portfolio grew by 61 million euros (+9%) in the fourth quarter, reaching 764 million euros, while the home loan portfolio increased by 79 million euros (+15%) to 613 million euros. Meanwhile, the consumer loan portfolio declined by 9 million euros (-1%) in the quarter, settling at 828 million euros.
The deposit portfolio grew in the fourth quarter, primarily driven by term deposits.
Bigbank’s term deposit portfolio increased by 118 million euros during the quarter, reaching 1.36 billion euros (+10%). The savings deposit portfolio grew by 8 million euros in the same period, totalling 1.03 billion euros (+1%). Overall, the group's deposit portfolio expanded by 127 million euros (+6%) in the quarter and by 456 million euros (+24%) over the year, reaching 2.39 billion euros.
In the fourth quarter, the Group’s interest income increased by 5.7 million euros compared to the same period in 2023, reaching 43.4 million euros (+15%).
Interest expenses rose by 5.3 million euros to 20.1 million euros (+36%). Bigbank’s net interest income grew by 0.4 million euros year-on-year in the fourth quarter, reaching 23.3 million euros, and increased by 6.7 million euros compared to 2023, totalling 102.4 million euros (+7%).