Coop Pank AS results for August 2023

Coop Pank’s financial results in August 2023:

• In August, number of the bank's customers increased by 2,600 and number of active customers decreased by 2,500. By the end of the month number of customers reached 172,400 and number of active customers reached 74,900. Over the year, customer base has grown by 27%.
• Volume of the bank's customer deposits decreased by 54 million euros, reaching 1.72 billion euros by the end of month. Deposits of corporate customers decreased by 56 million euros and deposits of private customers increased by 1 million euros. The volume of deposits attracted from international platforms increased by 0,4 million euros. Over the year, volume of bank deposits has grown by 34%.
• The bank's loan portfolio increased by 9 million euros over the month and reached 1.49 billion euros by the end of August. Business loans portfolio increased by 6 million euros, home loans portfolio increased by 4 million euros, leasing portfolio decreased by 1 million euros, consumer financing loan portfolio remained at the same level in August compared to July. Over the year, loan portfolio has grown by 26%.
• In August, the loan impairment cost was 0.1 million euros.  
• Compared to the first eight month of last year, the bank's net income has increased by 72% and expenses by 28% during the same period this year.
• In August, the bank earned net profit of 4.1 million euros. In the eight months of the year, the bank has earned a net profit of 27.2 million euros, that is 127% more than in the same period last year.
• In August, Coop Pank's return on equity was 27.9% and the cost-income ratio was 39%.
  
  
  
  

Comment by Paavo Truu, Member of the Management Board and CFO of Coop Pank:

"In August Coop Pank's loan portfolio was increasing at a moderate pace. The quality of the loan portfolio remains good, which confirms that Estonian households and companies have adapted well to the changed interest rate environment.

This year we have made good deposit offers and this has not gone unnoticed by customers. Therefore, in the last three months, our deposit portfolio has increased by 146 million euros, and the bank's liquidity indicators are very strong. As a result, we did not extend some term deposits in August and the total volume of deposits decreased.



We have made the best deposit offers on the market and that has brought us many new customers during the summer, some of whom deliberately came only to make deposits and not using everyday banking services. Therefore, the number of active customers slightly decreased in August. We are working to ensure that all our customers start using actively Coop Pank's everyday banking services. 

The continued growth of business volumes and the consistently good quality of the loan portfolio resulted in a record monthly profit of 4.1 million euros for Coop Pank in August. Coop Pank's return on equity was 27.9% and the cost-income ratio was 39%.”

More detailed financial reports of Coop Pank are available at:  

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 172,400. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores.

Additional information:

Paavo Truu

CFO

Phone:

E-mail:

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