In Q2 2006, the loan portfolio of Balti Investeeringute Grupi Pank AS (BIG) continued to grow, which also gave rise to an increase in the most important economic indicators of the enterprise.
In Q2 2006, the volume of BIG Group assets increased by 29 %, and constituted 873.9 million kroons by the end of the quarter. In comparison with Q2 2005, the volume of assets increased by 152 %. The assets of BIG's Latvian subsidiary have increased by 345 % within a year, reaching 140 million kroons.
During the quarter, the portfolio of BIG's loan customers increased by 24 % and in comparison with the same period in 2005 it increased by 161%. As of the end of July, the loan portfolio of the customers of BIG totalled 758.7 million kroons, which constitutes 87 % of all the assets of the Group.
In Q2 2006, the liabilities of BIG increased by 33%, and in comparison with the same period last year by 175 %. The largest part, or 420.9 million kroons of the external funds raised, was constituted by issued debt securities, which constituted 63% of its liabilities. As of the end of the quarter, debts to credit institutions totalled 155.5 million kroons. i.e. 23 % of all liabilities. By the end of Q2 2006, a significant part of the funds raised were also constituted by customer deposits in the amount of 69.8 million kroons. BIG will continue its active participation on the debt securities and deposits market in order to ensure the financing of planned growth.
In Q2 2006, the equity capital of the BIG Group increased by 16 %, reaching 209.1 million kroons, which is 99% more than at the same time last year. At the end of the 1st quarter, the capital adequacy of the Group constituted 22.6 %, while that of its parent company was 23.2 %, exceeding the required standard by more than twice.
In Q2 2006, the net profit of Balti Investeeringute Grupi Pank AS was 36.4 million kroons. In Q2 2006, its interest income increased to 63.5 million kroons, or by 158 % within a year, and its interest expenses increased at the same time by 71 %. In Q2 2006, its interest expenses constituted 9.6 % of its interest income. The administrative costs of the Group increased by 83 % over the year and accounted for 18.7 million kroons in the 2nd quarter.
In Q2 2006, no there were significant changes in the structure or terms and conditions of the products offered to customers. Neither were there any changes in the membership of the Group or in the management of the enterprises in the Group. Based on the growth of the enterprise, the most important activity of the enterprise was the optimisation and building of internal processes.
Balti Investeeringute Grupi Pank (BIG) is the youngest bank based on Estonian capital, and is the biggest specialised debtee granting loans to private persons after universal banks and leasing companies. The goal of BIG is to offer both private and business clients fast, attentive and flexible financial services. BIG has nearly 22,000 clients.
BIG's debt securities are listed on the Tallinn Stock Exchange.
The Group's balance sheet and income statement are available here.
The full interim report for Q2 2006 is available on the website of the Tallinn Stock Exchange at www.omxgroup.com/tallinn and on the website of Balti Investeeringute Grupi Pank AS at http://www.big.ee/.
Eero Varkki
Balti Investeeringute Grupi Pank AS
Financial manager
Tel: 6309 938
