The loan turnover of Balti Investeeringute Grupi Pank AS (BIG) outside of Estonia outstripped its turnover on the domestic market for the first time in 2007. The group's loan portfolio more than doubled in the same period.

Based on the bank's audited financial results for 2007, the group's loan portfolio grew by 115 percent during the year to more than 2.2 billion kroons by the end of December. Its 2007 loan turnover was 1.8 billion kroons, of which 53 percent came from outside of Estonia.

BIG had more than 98,000 clients at the end of the year, this figure having more than doubled since 2006. The group's balance sheet total grew during the same period by 220 percent to 2.6 billion kroons.

BIG's consolidated profit for 2007 was 177.3 million kroons, making the productivity rate of the group's equity capital 45.2 percent. This is the highest such rate of any bank in Estonia.

Having an effect on profit were the investments made and one-off costs incurred in the opening of BIG's Lithuanian subsidiary, the growth in interest expenses and the increase of loan provisions. The Lithuanian subsidiary's net costs in 2007 were 18.7 million kroons.

Launching operations in August under the name BIGBANK, the group's Lithuanian subsidiary has made a successful beginning, with four branches in Vilnius, Kaunas and Klaipeda. By the end of 2007 its loan portfolio has reached 60.9 million kroons and it was serving more than 2800 clients. The plan is for the subsidiary to go into profit in 2008.

Targo Raus, chairman of the management board of BIG, says that the bank consolidated its international position in 2007. "The fact that BIG has grown even more outside of Estonia than in the country is an indication of the group's strength, as our operations are divided between several markets. We see a lot of potential in the Lithuanian market, and in fact we've exceeded our initial forecasts there in our first few months of operations. We're planning for larger growth on foreign markets this year too."

2007 saw an increase in the number of BIG clients in arrears, which was expected and in accordance with the growth of the loan portfolio and with the changes in the structure of the portfolio. By the end of the year, loans that had failed to be repaid on time accounted for 16.8 percent of all assets. The same figure for 2006 was 10.6 percent. At the same time, provisions or write-downs on loan and interest claims grew to 101.6 million kroons (4.4 percent of the loan portfolio) compared to 21.6 million kroons (2.0 percent) a year earlier. BIG is maintaining a conservative line in its reserve formation policy: growth in reserves has been almost twice that of growth in arrears claims. The growth in provisions also reflects the growth in the number of clients in arrears.

At the end of 2007 Balti Investeeringute Grupi Pank AS remained one of the largest banks in the Baltic States specialising in lending to private clients and is the Estonian leader in the small loans market. BIG employs 494 people in 38 branches throughout the Baltic States - 14 more branches than at the same time last year.

Moody's Investor Service, the international rating agency, has awarded BIG a credit rating of B1. BIG's bonds are listed on the Tallinn and Stockholm Stock Exchanges.

For further information please contact:

Targo Raus
Chairman of the Board
targo.raus@big.ee
Telephone: +372 735 0923