OREANDA-NEWS. November 30, 2009. The operating volumes of BIGBANK AS did not change considerably in the 3rd quarter of 2009. The volume of total assets increased by 20.5 million kroons in the 3rd quarter of 2009 and receivables from customers reduced by 24.2 million kroons. The reduction in the loan portfolio is associated with the continuously low consumer confidence regarding the future, which reduces the customers' interest in taking loans and at the same time BIGBANK's criteria for granting loans are continually conservative.

As of 30 September 2009 the volume of cash and equivalents totalled 514.9 million kroons (18.4% of total assets), at the end of the 2nd quarter the respective figure was 475.7 million kroons (17.1% of total assets).

The structure of liabilities has not changed considerably in the 3rd quarter. Bonds (1 174.0 million kroons, reduction by 56.1 million kroons during the quarter) and term deposits (778.2 million kroons, increase by 46.0 million kroons during the quarter) continue to form the largest share of liabilities. As of the end of the 3rd quarter the total volume of liabilities amounted to 2 130.5 million kroons, reducing by 9.3 million kroons during the quarter. As of the end of the quarter the weighted average maturity of interest-bearing liabilities was 16.4 months and weighted average interest rate was 8.3% (9.6% as of the year-end). The weighted average interest rate has reduced above all in connection with the decrease in Euribor. In the 3rd quarter the interest expenses amounted to 44.8 million kroons, reducing by 2.9 million kroons compared to the previous quarter.

In the 3rd quarter of 2009 the interest income amounted to 150.2 million kroons, decreasing by 18.7 million kroons compared to the same period of the previous year and by 1.2 million kroons compared to the previous quarter. The reduction of the interest income is related to the reduction in loan portfolio. In the 3rd quarter the revenue related to debt collection proceedings amounted to 30.6 million kroons, compared to 26.5 million kroons in the previous quarter.

The payment behaviour of customers has improved in the 3rd quarter. The number of customers with long-term payment delays, who were performing payments, increased in the entire group, mostly caused by a seasonal improvement of the solvency and active debt management. Compared to the end of the 2nd quarter, the volume of loans with payment delays over 90 days and the share in the loan portfolio totalled 880.6 million kroons and 39.4% of the total loan portfolio as of 30 September 2009. In addition to some positive changes in macroeconomic situation and payment discipline of private individuals, the decrease in non-performing loan portfolio also relates to more effective debt management and collection methods used by the bank.

The impairment allowance costs totalled 59.5 million kroons in the 3rd quarter. As of 30 September 2009 the total volume of impairment allowances amounted to 395.0 million kroons.

In the 3rd quarter the operating expenses reduced - salary costs and other operating expenses amounted to 36.4 million kroons compared to 45.0 million kroons in the 2nd quarter. Reduction of operating expenses is related to optimising the activities of sales network and the supporting structures performed in the 1st half-year.

In the 3rd quarter the net profit of the reporting period amounted to 37.8 million kroons (28.7 million kroons in the 3rd quarter of 2008). Profit before impairment allowances and one-off revenues totalled 91.9 million kroons in the 3rd quarter (in the previous quarter the respective figure was 78.6 million kroons).

As of the end of the 3rd quarter of 2009 equity totalled 667.5 million kroons (579.4 million kroons as of the end of 2008). The share of equity amounted to 23.9% of total assets. Capital adequacy formed 21.9% as of 30 September 2009 (19.3% at the beginning of the year).

As of 30 September 2009 the Group had 27 offices all over the Baltics, of which 10 offices were located in Estonia, 7 in Latvia and 10 in Lithuania. As of 30 September 2009 there were 365 employees working in the Group, including 170 in Estonia, 129 in Latvia and 66 in Lithuania.