Bigbank earns 2.86 MEUR profit in Q2

Bigbank earned a net profit of 44.8 million kroons (EUR 2.86 mln) in the second quarter of this year, a 10.6% improvement on the corresponding period a year ago.
Profit before impairment allowances and one-off revenues from the premature termination of bonds and prepaid income tax assets totalled 80.2 million kroons, compared with 59.8 million kroons in the first quarter of the year, Bigbank told the stock exchange.
Interest income amounted to 151.3 million kroons in the second quarter, decreasing by 15.5 million kroons from the same period in 2008. The reduction in interest income was related to the decrease in the size of the loan portfolio.
Impairment allowance costs totalled 54.4 million kroons in the three-month period from April to June. As of June 30, the total volume of impairment allowances was 343.3 million kroons.
The volume of loans with payment delays of more than 90 days in the consolidation group decreased in the second quarter, the rate of change by country being different as a result of the countries being in different stages of the economic cycle, the release said.
In Estonia the amount of such loans as of the end of the second quarter decreased compared to both the first quarter of 2009 and the final quarter of 2008. In Latvia the volume of non-performing loans was at the same level as it was at the end of the first quarter but the rapid increase in such loans of the beginning of the year had slowed down to a minimal growth of 4-5% year on year. In Lithuania the rate of growth of loans with payment delays of more than 90 days had halved.
As of the end of the second quarter of 2009, owners’ equity of Bigbank totaled 637.7 million kroons, up from 579.4 million kroons at the end of 2008, equalling 23.0% of total assets.
As of June 30, 2009 the group had 28 offices in the Baltic countries, of them 11 in Estonia, seven in Latvia and 10 in Lithuania. There were 361 employees working in the group, including 166 in Estonia, 125 in Latvia and 70 in Lithuania.

Source: Estonian review

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