In April 2024, Bigbank's growth continued. Both deposit and loan portfolios grew, and monthly profit was at a good level.

In April, the long-awaited period of interest rate declines began in the markets. While significant central banks did not decline their base rates in April, the expectation for their reduction this summer has deepened. This means that even the EURIBOR has started to decline, leading banks to lower deposit interest rates. The deposit interest rates offered by Bigbank are also influenced by this, but at the same time, Bigbank keeps deposit rates as attractive as possible for deposit clients in all domestic markets. Overall, this has led to a situation where the growth rate of Bigbank's deposit portfolio has decreased, but growth continued. By the end of April, the deposit portfolio reached a record level of 2.2 billion euros, with both term and savings deposit portfolios standing at 1.1 billion euros each.

Regarding the loan portfolio, April was the strongest month of growth so far this year. The monthly growth of the entire portfolio exceeded 50 million euros, with the business loan portfolio showing the highest growth. In view of this year, the largest monthly growth also occurred in home and consumer loan portfolios.

In terms of loan portfolio quality, the situation has somewhat improved compared to the first quarter of 2024. The main adverse factor in the first quarter was primarily the deterioration in consumer loan quality, and to a lesser extent, the worsening quality of business loans, which led to an increase in net loss allowances for loans and financial investments and provision expenses. In April, these costs totalled 1.6 million euros, a significant decrease compared to the first quarter. Additionally, the level of non-performing loan portfolio remains low.

A net profit of 2.9 million euros for April is a solid figure. Compared to the combined results of the previous year's first four months, Bigbank's net profit decreased by 2.6 million euros. The main factors are the increase in net loss allowances for loans and financial investments over four months, but there is also a significant impact from the increase in salary expenses and income tax expenses. The latter effect mainly arises from the income tax obligation imposed on credit institutions in Latvia, which has been affecting financial results since December 2023.

Bigbank's April 2024 financial results:

• Deposits from customers and loans received increased by 674 million euros over the year to 2.2 billion euros (+44%).
• Loans to customers increased by 335 million euros year on year to 1.8 billion euros (+23%).
• Net interest income was 8.8 million euros in April, totalling 35.2 million euros for the first four months of the year. Compared to the same period last year, there was an increase of 5.2 million euros (+17%) over the first four months.
• Net loss allowances for loans and financial investments and provision expenses amounted to 10.5 million euros for the first four months of the year, representing an increase of 4.6 million euros or 77% compared to the same period last year.
• April's net profit was 2.9 million euros. The total profit for the first four months amounted to 9.3 million euros, decreasing by 2.6 million euros or 22% compared to the same period in 2023.
• The return on equity in April was 14.4%.

Bigbank AS (www.bigbank.eu) is an Estonian capital-based bank specialising in loans and deposits for private and business customers. In addition to operations in Estonia, the bank has branches in Finland, Sweden, Latvia, Lithuania, and Bulgaria and offers its products on a cross-border basis in Austria, Germany, and the Netherlands. Bigbank’s total assets exceed 2.5 billion euros.

Argo Kiltsmann Member of the Management Board Telephone: +372 5393 0833 E-mail: argo.kiltsmann@bigbank.ee www.bigbank.ee