Transcription
2015Annual report
Translation from Estonian originalContentsVision, mission and values 5Note 11. Prepayments 70Operating countries 9Note 13. Investment properties 72Review of operations 15Note 15. Deposits from customers 73Bigbank’s strategy 7Note 12. Property and equipment 71New face, new act, new breathing 13Note 14. Intangible assets 72Overview of the year 2015 15Note 16. Other liabilities 73Key performance indicators 16Note 17. Deferred income and tax liabilities 73Human resource management in Bigbank 17Note 18. Equity 74Bigbank in society 19Note 19. Interest income 75About Bigbank Group 20Note 20. Interest expense 75Shareholders 21Note 21. Net gain/loss on financial transactions 75Prospects for 2016 21Note 22. Other income 75Corporate governance report 23Note 23. Salaries and associated charges 75Consolidated statement of financial position 29Note 25. Other expenses 76Consolidated statement of comprehensive income 30Note 26. Operating leases 76Consolidated statement of cash flows 31Note 27. Assets pledged as collateral 76Consolidated statement of changes in equity 32Note 28. Contingent liabilities 76Notes to the consolidated financial statements 33Note 29. Income tax expense 77Note 1. General information and significantaccounting policies 33Note 30. Related parties 78Consolidated financial statements 29Note 2. Significant accounting judgements,estimates and assumptions 44Note 3. Risk management 45Note 4. Cash and bank balances and cashequivalents 64Note 5. Financial assets held for trading 65Note 6. Loans to customers 65Note 7. Impairment of loans, receivablesand financial investments 68Note 24. Other operating expenses 75Note 31. Fair values of financial assetsand financial liabilities 78Note 32. Earnings per share 80Note 33. Unconsolidated statements of parentcompany as a separate entity 81Signatures 85Independent auditor’s report 87Profit allocation proposal 88Note 8. Held-to-maturity financial assets 69Note 9. Derivative financial instruments 70Note 10. Other receivables 70Bigbank AS ANNUAL REPORT 20153
Translation from Estonian originalVision, missionand valuesBigbank’s mission is to make financing simple, enablingpeople to improve their lives.Bigbank’s vision is to be among the leading Europeanbanks specialised on consumer loans.CourageWe embrace challengesby taking initiative,making smart decisionsand being responsible.Result orientationWe are professionaland committed to highperformance.DevelopmentCaringWe are innovative, we lookfor continuous improvementto be better tomorrow thanwe are today.We listen, understandand support each other.SimplicityWe create convenient andtransparent solutionscontaining only relevant.Bigbank AS ANNUAL REPORT 20155
Translation from Estonian originalBigbank’s strategy We focus on consumer financing We provide simple services We focus on creditworthy loan customers We maintain profitable and organic growth We grow through geographical expansion We keep unified solutions, products and processes We are a company and an employer with a good reputation We hire talented people, developing them to become expertsand leaders We rely on technological development and automatization We will not become a universal bankBigbank AS ANNUAL REPORT 20157
anyAustriaSpain
Translation from Estonian originalOperating countriesESTONIALITHUANIALATVIAStart of operations1992Start of operationsStart of operations19962007Loan portfolio,EUR thousand55,657Loan portfolio,EUR thousand79,673Loan portfolio,EUR thousand62,022No. of loans inthousands38No. of loans inthousands68No. of loans inthousands27Deposit portfolio,EUR thousand184,002No. of deposits9,309No. of employees193FINLANDDeposit portfolio,EUR thousand12,115No. of depositsNo. of employees7682009Start of operations–No. of deposits–No. of employees8761SPAINSWEDENStart of operationsDeposit portfolio,EUR thousand2012Start of operations2011Loan portfolio,EUR thousand55,867Loan portfolio,EUR thousand40,302Loan portfolio,EUR thousand32,516No. of loans inthousands12No. of loans inthousands6No. of loans inthousands10Deposit portfolio,EUR thousandDeposit portfolio,EUR thousand16,391No. of deposits439No. of employeesNo. of deposits33No. of employees44,6731,16020Deposit portfolio,EUR thousand–No. of deposits–No. of employees29340EUR thousand25517085Loan portfolio02011201220132014Bigbank AS ANNUAL REPORT 20152015Deposits9
Translation from Estonian originalBigbank ASannual report 2015Business nameRegistryRegistration numberDate of entryAddressTelephoneFaxE-mailCorporate websiteReporting periodChairman of the management boardCore business lineAuditorThis annual report of Bigbank AS consists ofa chairman’s statement, review of operations,corporate governance report and consolidatedfinancial statements that have been appendedan independent auditors’ report and a profitallocation proposal. The document contains 89pages.Bigbank AS ANNUAL REPORT 2015Bigbank ASCommercial Register ofthe Republic of Estonia1018375730 January 1997Rüütli 23, 51006 Tartu, Estonia 372 737 7570 372 737 7582bigbank@bigbank.eewww.bigbank.ee1 January 2015 – 31 December 2015Kaido SaarProvision of consumer loansand acceptance of depositsErnst & Young Baltic ASThe reporting currency is the euro and numericalfinancial data is presented in thousands of euros.The annual report will be available on thewebsite of Bigbank AS at www.bigbank.ee. TheEnglish version of the annual report can be found atwww.bigbank.eu.11
Translation from Estonian originalNew face, new act,new breathingLast year was a good year. Bigbank achievedgood results in year 2015 – net profit of the Groupcomprised 11.2 million euros and the total assetsreached 352.9 million euros. Most important highlights for Bigbank were the launch of the newbusiness model, new brand, focus of the entireorganisation on a new mainstream customer segment and providing quality service to existingcustomers through more efficient core processes.More favorable interest rates are the secondchange by importance for the customers following the increase in service quality. Increase in thequality of the loan portfolio serves as a basis forsustainable future business growth.Best business results were reached last yearin Lithuania and Finland where the loan portfolio growth was the highest. More favourableloan product conditions were offered to Lithuanian consumers, resulting in a 43.7% growth inthe Lithuanian portfolio, comprising 62.0 millioneuros. By today, Lithuania has reached the second place amongst Bigbank’s countries of activities – with its 27 thousand loan agreements itaccounts for 19.0% of the loan portfolio of theGroup. Bigbank’s market share in Finland is moremodest, but we managed to take a good hold ofit last year – Bigbank became more visible to therather conservative consumers with an outstanding media campaign, followed by the growth inbusiness volumes.This year we will continue to aim on sustainable growth of the high-quality loan portfolio. Wewill introduce new innovative products to the market to support the growth, offering simultaneouslyexceptionally good customer experience with theobjective to become a product and service leaderBigbank AS ANNUAL REPORT 2015in all countries. To achieve that the implementation of the long-term leadership change orienteddevelopment programs – LEAN, Agile, 4 Disciplines of Execution – that were started already in2014, will continue together with implementationof the Bigbank customer experience strategy –WOW strategy – that was developed in autumn2015.We have started with enhancement of theinternal governance in the entire organisationtoo. Our Chief Technology Officer Agur Jõgi waselected as a new member of the managementboard from spring. His long-term experience insenior executive positions in technology sector(Elion, Skype’is, MyJar) creates a solid foundationfor developing the bank as a fintech company.We believe in product development as a maintool for becoming a digital product and serviceleader in all markets where Bigbank currentlyoperates – in Estonia, Latvia, Lithuania, Finland,Spain and Sweden and as a cross-border servicesprovider also in Germany, Austria and the Netherlands. We are aiming to become one of the mainfintech industry influencer through increased customer satisfaction and increased market share.Our strategic decisions and course of actionhas received positive feedback both from ouremployees, customers and also from the widerpublic. Bigbank earned the Estonian Quality Innovation award among large enterprises in November for high-quality concept of operations anddevelopment of customer service process.Bigbank participated in the Estonian Corporate Sustainability and Responsibility (CSR)Index for the first time in 2015 with the aim to gaincomprehensive feedback to our current business13
NE W FACE, NE W ACT, NE W BRE ATHINGTranslation from Estonian originalactivities and to get input for developing acitivity plans for creating more value for all our mainstakeholders – customers, employees, partnersand environment.Kaido SaarChairman of the Management Board,Bigbank Group14Bigbank AS ANNUAL REPORT 2015
Translation from Estonian originalReview of operationsOVERVIEW OF THE YEAR 2015In 2015, Bigbank AS (hereafter also “Bigbank”or the “Group”) succeeded in increasing the volume of loan portfolio as well as net profit beforetaxes and net interest income. At 31 December2015, the Group’s consolidated assets totalled352,947 thousand euros, increasing 28,189 thousand euros (8.7%) during the year. Growth in totalassets comes primarily from the 8.9% growth inloan portfolio reaching 299,531 thousand euros.The Group issues loans continuously in theBaltic countries, Finland, Sweden and Spain. In2015, the credit quality of loan portfolio has significantly improved. By the year-end the proportion of loans past due for more than 90 days haddropped 19.8% to 64,523 thousand euros.The Group introduced trading portfolio of debtsecurities from March 2015. Following the decision of the asset and liabilities committee, the sizeof the trading portfolio is limited to 15,000 thousand euros. The portfolio consists of investmentgrade euro denominated bonds carried at fairvalue.Term deposits are continuously accepted fromcustomers in Estonia, Finland, Sweden and Latviabut also in Germany, Austria and the NetherlandsBigbank AS ANNUAL REPORT 2015as cross-border services. The Group’s funding isbased on its deposit portfolio, which is diversifiedin terms of countries, maturities and customers.At the end of 2015, Bigbank’s liabilities totalled261,840 thousand euros. Most of the liabilities ofthe Group
(Elion, Skype’is, MyJar) creates a solid foundation for developing the bank as a fintech company. We believe in product development as a main tool for becoming a digital product and service leader in all markets where Bigbank currently operates – in Estonia, Latvia, Lithuania, Finland, Spain and Sweden and as a cross-border services
