OREANDA-NEWS  On 03 December was announced, that the loan portfolio of Balti Investeeringute Grupi Pank AS (BIGBANK) increased by 7.6% in Q3 2008 amounting to 2.4 billion kroons by the end of September according to the bank’s Q3 Interim Report.

The total assets of BIGBANK increased by 246.3 million kroons in 3rd quarter of 2008 amounting to 2.9 billion kroons by the end of the quarter. The bank increased the share of cash and equivalents in the balance sheet amounting to 16.1% of the total balance sheet or 473.1 million kroons by the end of the quarter. Loan portfolio formed 81.1% of the total balance sheet increasing by 7.6% during the quarter.

In third quarter the net profit of BIGBANK Group amounted to 28.7 million kroons. Net profit since the beginning of the year amounts to 117.9 million kroons. The profitability of third quarter was most influenced by forming additional and conservative provisions related to changes in Latvian macroeconomic environment.

The amount term deposits increased by 37.1% in third quarter amounting to 567.4 million kroons as of end of the quarter.

The growth of Group loan portfolio was held back by changes in macroeconomic environment and related negative change in consumer sentiment as well as BIGBANK’s conservative liquidity and credit policy. Loan portfolio has increased the most in Lithuania, where the branch of BIGBANK has been operating since third quarter of 2007 and the potential for market share increase is the highest. In Lithuania the loan portfolio increased by 46.5% during the quarter amounting to 189.7 million kroons.

There have not been significant changes in the customers’ payment behaviour during the quarter. The share of customers’ overdue loans of more than 90 days in the total loan portfolio has increased; the growth indicates the regular proportional share of the high loan sales volume in 2007. The share is also influenced by the considerably lower loan sales volume in 2008. As a positive trend, the share of short-term payment delays has considerably decreased.

Impairment losses formed 40.7 million kroons in third quarter, as a positive influence of increase in overdue loan portfolio, other operating income (mostly consisting of enforcement income) have considerably increased. Other operating income amounted to 35.9 million kroons in the quarter and 91.2 million since the beginning of the year, increasing 2.6 times compared to the same period of previous year.

Balti Investeeringute Grupi Pank AS, operating in Estonia under the trade name BIGBANK, is a specialised credit institution based on Estonian capital. BIGBANK has branches in Latvia and Lithuania and is offering on cross-border bases services also in Finland. BIGBANK employs more than 500 people, the bank has 45 offices in the Batic countries. In Estonia and Latvia, the bank’s services are also available in post network.

BIG BANKS’s bonds are listed in Tallinn and Stockholm stock exchanges.