Estonian-owned bank BIGPANK that specializes in issuing small unsecured consumer credit reported mixed results for first quarter.In the 1st quarter the net profit of the reporting period amounted to 23.6 million kroons.
During the quarter the total assets of BIGPANK decreased by 154.7 million kroons and receivables from customers reduced by 145.5 million kroons.´
The company said that the reduction in the loan portfolio is associated with the surrounding economic environment. On one hand considerably reduced consumer confidence reduces the customers' interest in taking loans and at the same time BIGBANK has continued to make the criteria for grating loans more conservative.
During the 1st quarter a total of 4 sales offices were closed in the Group (including 2 in Estonia and 2 in Latvia) and the company made39 employees redundant.
In connection with the considerably worsened economic environment the customers' payment behavior has also deteriorated during the recent periods, due to which the volume of loans with payment delays over 90 days has increased both in the 4th quarter of 2008 as well as in the 1st quarter of 2009.
Bigbank has 46 offices all over the Baltics, of which 20 offices were located in Estonia, 15 in Latvia and 11 in Lithuania. It has 468 employees working in the Group, including 216 in Estonia, 176 in Latvia and 76 in Lithuania.